CarMax 2009 Annual Report Download - page 73

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67
December 15, 2008, and all prior-period earnings per share data presented shall be adjusted retrospectively. Early
application is not permitted. We are currently evaluating the impact of FSP EITF 03-6-1 on our consolidated
financial statements and will adopt FSP EITF 03-6-1 effective March 1, 2009.
In September 2008, the FASB issued exposure drafts that eliminate qualifying special purpose entities from the
guidance of SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities,” and FASB Interpretation 46 (revised December 2003), “Consolidation of Variable Interest Entities − an
interpretation of ARB No. 51,” as well as other modifications. While the proposed revised pronouncements have
not been finalized and the proposals are subject to further public comment, the changes could have a significant
impact on our consolidated financial statements as we could potentially be precluded from using sales accounting
treatment for our securitization transactions, which would change the timing of the recognition of CAF income. In
addition, the changes could result in the consolidation of the financial assets and liabilities transferred to our
qualified special purpose entities. The changes would be effective March 1, 2010, on a prospective basis.
In October 2008, the FASB issued FSP No. FAS 157-3, “Determining the Fair Value of a Financial Asset When the
Market for That Asset is Not Active,” (“FSP FAS 157-3”), which clarifies application of SFAS 157 in a market that
is not active. FSP FAS 157-3 was effective upon issuance, including prior periods for which financial statements
have not been issued. The adoption of FSP FAS 157-3 had no impact on our results of operations, financial
condition or cash flows.
In December 2008, the FASB issued FSP No. FAS 140-4 and FIN 46(R)-8, “Disclosures by Public Entities
(Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities.” This disclosure-only
FSP improves the transparency of transfers of financial assets and an enterprise’ s involvement with variable interest
entities, including qualifying special-purpose entities. This FSP is effective for the first reporting period (interim or
annual) ending after December 15, 2008, with earlier application encouraged. We adopted this FSP for fiscal 2009.
The adoption of the FSP had no impact on our results of operations, financial condition or cash flows.
In December 2008, the FASB issued FSP No. FAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit
Plan Assets” (“FSP FAS 132(R)-1”). FSP FAS 132(R)-1 requires additional fair value disclosures about employers’
pension and postretirement benefit plan assets consistent with guidance contained in SFAS 157 (see Note 6).
Specifically, employers will be required to disclose information about how investment allocation decisions are
made, the fair value of each major category of plan assets and information about the inputs and valuation techniques
used to develop the fair value measurements of plan assets. This FSP is effective for fiscal years ending after
December 15, 2009. We are currently evaluating the impact the new disclosure requirements will have on our
consolidated financial statements and notes and will adopt FSP FAS 132(R)-1 effective March 1, 2009.
In April 2009, the FASB issued FSP No. FAS 157-4, “Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly”
(“FSP FAS 157-4”). FSP FAS 157-4 provides guidance on estimating fair value when market activity has decreased
and on identifying transactions that are not orderly. Additionally, entities are required to disclose in interim and
annual periods the inputs and valuation techniques used to measure fair value. This FSP is effective for interim and
annual periods ending after June 15, 2009. We are currently evaluating the impact of FSP FAS 157-4 on our
consolidated financial statements and will adopt this FSP effective June 1, 2009.
18. SUBSEQUENT EVENTS
In April 2009, we completed a term securitization totaling $1.0 billion of auto loan receivables and retained
subordinated bonds with a total face value of $140.0 million. This transaction was eligible for investors to utilize
the Federal Reserve’ s Term Asset-Backed Securities Facility (“TALF”) program.