CarMax 2010 Annual Report Download - page 20

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retain highly qualified individuals. We have been recognized for the success of our efforts by a number of external
organizations.
Training. To further support our emphasis on attracting, developing and retaining qualified associates, we have
made a commitment to providing exceptional training programs. On average, each store associate completed at least
20 online or classroom courses, totaling more than 44 hours of training per associate in fiscal 2010. Store associates
receive structured, self-paced training that introduces them to company policies and their specific job responsibilities
through KMX University – our proprietary intranet-based testing and tracking system. KMX University is
comprised of customized applications hosted within a learning management system that allow us to author, deliver
and track training events and to measure associate competency after training. Most new store associates are also
assigned mentors who provide on-the-job guidance and support.
We also provide comprehensive, facilitator-led classroom training courses at the associate and manager levels. All
sales consultants go through a four-week on-boarding process in which they are partnered with a mentor, combining
self-paced online training with shadowing and role-playing. Our Professional Selling Skills training provides sales
associates the opportunity to learn and practice customer-oriented selling techniques. This online training program
contains modules on a variety of skill sets, including building confidence, connecting with the customer, and
listening and persuasion techniques. We have also implemented a call recording and review program to provide
constructive feedback to associates on how to improve their interactions with customers. Buyers-in-training
undergo a 6- to 18-month apprenticeship under the supervision of experienced buyers, and they generally will assist
with the appraisal of more than 1,000 cars before making their first independent purchase. Business office
associates undergo a 3- to 6-month on-the-job certification process in order to be fully cross-trained in all functional
areas of the business office. All business office associates and managers also receive continuous training through
facilitated competency-based training courses. We utilize a mix of internal and external technical training programs
in an effort to provide a stable future supply of qualified technicians. Reconditioning and mechanical technicians
attend in-house and vendor-sponsored training programs designed to develop their skills in performing repairs on the
diverse makes and models of vehicles we sell. Technicians at our new car franchises also attend manufacturer-
sponsored training programs to stay abreast of current diagnostic, repair and maintenance techniques for those
manufacturers’ vehicles. New managers attend an intensive week-long workshop at the home office where they
meet with senior leaders and learn fundamental CarMax management skills.
Laws and Regulations
Vehicle Dealer and Other Laws and Regulations. We operate in a highly regulated industry. In every state in
which we operate, we must obtain various licenses and permits in order to conduct business, including dealer,
service, sales and finance licenses issued by state and certain local regulatory authorities. A wide range of federal,
state and local laws and regulations govern the manner in which we conduct business, including advertising, sales,
financing and employment practices. These laws include consumer protection laws, privacy laws and state franchise
laws, as well as other laws and regulations applicable to new and used motor vehicle dealers. These laws also
include federal and state wage-hour, anti-discrimination and other employment practices laws. Our financing
activities with customers are subject to federal truth-in-lending, consumer leasing and equal credit opportunity laws
and regulations, as well as state and local motor vehicle finance and collection laws, installment finance laws and
usury laws.
Claims arising out of actual or alleged violations of law could be asserted against us by individuals or governmental
authorities and could expose us to significant damages or other penalties, including revocation or suspension of the
licenses necessary to conduct business and fines.
Environmental Laws and Regulations. We are subject to a variety of federal, state and local laws and regulations
that pertain to the environment. Our business involves the use, handling and disposal of hazardous materials and
wastes, including motor oil, gasoline, solvents, lubricants, paints and other substances. We are subject to
compliance with regulations concerning the operation of underground and aboveground gasoline storage tanks,
aboveground oil tanks and automotive paint booths.
AVAILABILITY OF REPORTS AND OTHER INFORMATION
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and proxy
statements on Schedule 14A, as well as any amendments to those reports, are available without charge through our
website, carmax.com, as soon as reasonably practicable after filing or furnishing the material to the Securities and
Exchange Commission (“SEC”). The contents of our website are not, however, part of this report.