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CarMax, Inc. Annual Report
FISCAL YEAR 2011
CarMax, Inc. Annual Report
FISCAL YEAR 2011

Table of contents

  • Page 1
    CarMax, Inc. Annual Report FISCAL YEAR 2011

  • Page 2
    ... CarMax, which includes focused programs to support three primary initiatives: develop our associates and provide them the tools for success, drive execution by improving the car-buying experience for customers and discover efficiencies by reducing waste. Associate training and development are...

  • Page 3
    ... we can continue to improve every aspect of our business. As we look to the future, we are excited about initiatives underway to make more of the car-buying process available to customers online. We recently implemented CarMax EasyShop in two test stores. This initiative gives customers a fast and...

  • Page 4
    2 CarMax 2011

  • Page 5
    ...new training and development content and reviews existing material to guarantee that the curriculum meets the needs of the business and our associates. KMX University offers many customized training applications hosted in our learning management system. One of CarMax's most popular training programs...

  • Page 6
    ... values and wholesale market information, and the cumulative experience of their store buying teams to expedite the appraisal process and reduce customer wait time. For our dealer-only, on-site auction customers, we released a complete upgrade of our website, CARMAXAUCTIONS.COM, during fiscal 2011...

  • Page 7
    CarMax 2011 5

  • Page 8
    6 CarMax 2011

  • Page 9
    ... given the fact that commissions and other variable costs rise as sales grow. We also increased our advertising along with sales growth and added back some previously delayed initiatives we believe will support the LONG-TERM HEALTH AND COMPETITIVENESS of CarMax. CARMAX USED CAR SUPERSTORES ALABAMA...

  • Page 10
    ... giving-either in cash or volunteer hours-by offering a MATCHING GIFTS PROGRAM for contributions made to qualifying charitable organizations. Companywide, CarMax matched nearly $231,000 in associate gifts during fiscal 2011. Our new "Easy Gift" program allows associates to make contributions to the...

  • Page 11
    ...ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 28, 2011 OR ï,¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Commission File Number: 1-31420 to CARMAX...

  • Page 12
    ... common stock on the New York Stock Exchange on that date, was $4.46 billion. On March 31, 2011, there were 225,897,547 outstanding shares of CarMax, Inc. common stock. DOCUMENTS INCORPORATED BY REFERENCE Portions of the CarMax, Inc. Notice of 2011 Annual Meeting of Shareholders and Proxy Statement...

  • Page 13
    ... with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information PART III Item 10. Item 11. Item 12. Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder...

  • Page 14
    ... vehicle auction operators, based on the 263,061 wholesale vehicles we sold through our on-site auctions in fiscal 2011. We were the first used vehicle retailer to offer a large selection of high quality used vehicles at competitively low, "no-haggle" prices using a customer-friendly sales process...

  • Page 15
    ... old or have more than 60,000 miles, if they meet similar quality standards. We also wholesale used vehicles. Vehicles purchased through our in-store appraisal process that do not meet our retail standards are sold to licensed dealers through our on-site wholesale auctions. As of February 28, 2011...

  • Page 16
    .... Our Certified Quality Inspection assures that every vehicle we offer for sale meets our stringent standards. We back every vehicle with a 5-day, money-back guarantee and at least a 30-day limited warranty. We maintain an ability to offer or arrange customer financing with competitive terms. All...

  • Page 17
    ..., mileage or condition, fewer than half of the vehicles acquired through this in-store appraisal process meet our high-quality retail standards. Those vehicles that do not meet our retail standards are sold to licensed dealers through our on-site wholesale auctions. The inventory purchasing function...

  • Page 18
    ... high-quality repairs. Our information systems provide the ability to track repair history and enable trend analysis, which serves as guidance for our continuous improvement efforts. Wholesale Auctions. Vehicles purchased through our in-store appraisal process that do not meet our retail standards...

  • Page 19
    ... proprietary information system. A majority of applicants receive a response within five minutes. The vehicle financings are retail installment contracts secured by the vehicles financed. Customers are permitted to refinance or pay off their contract within three business days of a purchase without...

  • Page 20
    ..., 2011, we had a total of 15,565 full- and part-time associates, including 11,659 hourly and salaried associates and 3,906 sales associates, who worked on a commission basis. We employ additional associates during peak selling seasons. As of February 28, 2011, our location general managers averaged...

  • Page 21
    ... free of charge through the "Corporate Governance" link on our investor information home page at investor.carmax.com, as soon as reasonably practicable after filing or furnishing the material to the Securities and Exchange Commission (the "SEC"): annual reports on Form 10 -K, quarterly reports...

  • Page 22
    ... a highly competitive business. Our competition includes publicly and privately owned new and used car dealers, as well as millions of private individuals. Competitors buy and sell the same or similar makes of vehicles that we offer in the same or similar markets at competitive prices. Further, new...

  • Page 23
    ... of these or other new accounting requirements or changes to U.S. generally accepted accounting principles could adversely affect our reported results of operations and financial condition. Confidential Customer Information. In the normal course of business, we collect, process and retain sensitive...

  • Page 24
    ... February 28, 2011, we leased 57 of our 103 used car superstores as well as our CAF office building in Atlanta, Georgia. We owned the remaining 46 stores currently in operation. We also owned our home office building in Richmond, Virginia, and land associated with planned future store openings. 14

  • Page 25
    ... we chose not to open until market conditions improved. We expect to open five superstores in fiscal 2012 and between eight and ten superstores in fiscal 2013. For additional details on our future expansion plans, see "Fiscal 2012 Planned Superstore Openings," included in Part II, Item 7, of this...

  • Page 26
    ... for use in operations and for geographic expansion, as well as to maintain maximum financial flexibility and liquidity for our business. Therefore, we do not anticipate paying any cash dividends in the foreseeable future. During the fourth quarter of fiscal 2011, we sold no CarMax equity securities...

  • Page 27
    COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN $230 $210 $190 $170 $150 $130 $110 $90 $70 $50 2006 2007 CarMax 2008 S&P 500 Index 2009 2010 S&P 500 Retailing Index 2011 CarMax S&P 500 Index S&P 500 Retailing Index 2006 $ 100.00 $ 100.00 $ 100.00 2007 $ 167.73 $ 111.97 $ 110.21 As of ...

  • Page 28
    ... notes payable, excluding current portion Total shareholders' equity Unit sales information Used vehicle units sold New vehicle units sold Wholesale vehicle units sold Percent changes in Comparable store used vehicle unit sales Total used vehicle unit sales Total net sales and operating revenues...

  • Page 29
    ... auto loan in the event of a total loss of the vehicle or unrecovered theft. We also generate revenues, income and cash flows from the sale of vehicles purchased through our appraisal process that do not meet our retail standards. These vehicles are sold through on-site wholesale auctions. Wholesale...

  • Page 30
    ... credit markets, we resumed store growth in fiscal 2011, opening three superstores. We plan to open five superstores in fiscal 2012 and between eight and ten superstores in fiscal 2013. We are in the process of the national rollout of our retail concept, and as of February 28, 2011, we had used car...

  • Page 31
    ..., generally either at the time of sale to a customer or upon delivery to a customer. We recognize used vehicle revenue when a sales contract has been executed and the vehicle has been delivered, net of a reserve for returns under our 5-day, money-back guarantee. A reserve for vehicle returns is...

  • Page 32
    ... NET SALES AND OPERATING REVENUES (In millions) Used vehicle sales New vehicle sales Wholesale vehicle sales Other sales and revenues: Extended service plan revenues Service department sales Third-party finance fees, net Total other sales and revenues Total net sales and operating revenues 2011...

  • Page 33
    ... rate benefited from increased customer access to credit. The increase in the average retail selling price primarily reflected increases in our vehicle acquisition costs resulting from appreciation in wholesale industry used vehicle values. Used vehicle valuations remained strong during fiscal 2011...

  • Page 34
    ... third quarters. Wholesale Vehicle Sales Our operating strategy is to build customer satisfaction by offering high-quality vehicles. Fewer than half of the vehicles acquired from consumers through the appraisal purchase process meet our standards for reconditioning and subsequent retail sale. Those...

  • Page 35
    ... in our customer traffic and by the reduction in new car industry sales and the related used vehicle trade-in activity in fiscal 2010. Other Sales and Revenues Other sales and revenues include commissions on the sale of ESPs and GAP (reported in ESP revenues), service department sales and net...

  • Page 36
    ... the strong wholesale pricing environment and a modest increase in the percentage of retail vehicles sourced directly from consumers through our appraisal process. Vehicles purchased directly from consumers typically generate more gross profit per unit compared with vehicles purchased at auction. As...

  • Page 37
    ... quarters of fiscal 2010. Wholesale Vehicle Gross Profit Our wholesale vehicle gross profit has steadily increased over the last several years reflecting, in part, the benefits realized from improvements and refinements in our car-buying strategies, appraisal delivery processes and in-store auction...

  • Page 38
    ... used and wholesale vehicle average selling price. CarMax Auto Finance Income CAF provides financing for a portion of our used and new car retail sales. Because the purchase of a vehicle is generally reliant on the consumer's ability to obtain on -the-spot financing, it is important to our business...

  • Page 39
    ... benefits or costs that could be attributed to CAF. Examples of indirect costs not included are retail store expenses and corporate expenses such as human resources, administrative services, marketing, information systems, accounting, legal, treasury and executive payroll. Fiscal 2011. CAF reported...

  • Page 40
    ...these costs are being capitalized and amortized over the term of the related securitizations. ï,· ï,· Additionally, as noted below, the fiscal 2011 provision for loan losses benefited from lower-than-anticipated net charge-offs and favorable adjustments to the allowance for loan losses. Servicing...

  • Page 41
    ... 10.3% 63.8 Vehicle units financed Weighted average contract rate Weighted average term (1) (2) (3) (4) All information relates to loans originated net of estimated 3-day payoffs and vehicle returns. In millions. Vehicle units financed as a percentage of total retail units sold. In months. Fiscal...

  • Page 42
    ...expenses primarily include payroll expenses, other than payroll related to reconditioning and vehicle repair service, which is included in cost of sales; fringe benefits; rent and occupancy costs; advertising; and other general expenses. Fiscal 2011 Versus Fiscal 2010. SG&A expenses increased 11% to...

  • Page 43
    ... the net cash generated by all other operating activities, resulting in the net use of cash. As discussed in Note 2(E), auto loan receivables and the related cash flows were not reported in the consolidated financial statements prior to fiscal 2011. The increase in auto loan receivables primarily...

  • Page 44
    ...of our 103 used car superstores and our home office in Richmond, Virginia. In addition, five existing superstores and one future superstore site were accounted for as capital leases. Financing Activities. During fiscal 2011, net cash provided by financing activities totaled $112.3 million, including...

  • Page 45
    ... requirements due to the unprecedented conditions in the credit markets during that time. Cash and cash equivalents as of February 28, 2009, reflected this decision. Cash received on equity issuances, which primarily related to employee stock option exercises, was $38.3 million in fiscal 2011...

  • Page 46
    ... funded status of our retirement plan, of which $35.7 million has no contractual payment schedule and we expect payments to occur beyond 12 months from February 28, 2011. See Note 10. Represents the net unrecognized tax benefits related to uncertain tax positions. The timing of payments associated...

  • Page 47
    ... credit risk by dealing with highly rated bank counterparties. The market and credit risks associated with derivative instruments are similar to those relating to other types of financial instruments. Notes 6 and 7 provide additional information on derivative instruments. COMPOSITION OF AUTO LOAN...

  • Page 48
    ...28, 2011. KPMG LLP, the company's independent registered public accounting firm, has issued a report on our internal control over financial reporting. Their report is included herein. THOMAS J. FOLLIARD PRESIDENT AND CHIEF EXECUTIVE OFFICER THOMAS W. REEDY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL...

  • Page 49
    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholders CarMax, Inc.: We have audited the accompanying consolidated balance sheets of CarMax, Inc. and subsidiaries (the Company) as of February 28, 2011 and 2010, and the related consolidated statements of ...

  • Page 50
    As discussed in note 2 to the consolidated financial statements, the Company has changed its method of accounting for transfers of auto loan receivables due to the adoption of Financial Accounting Standards Board Accounting Standards Codification Topic 860, Transfers and Servicing, and Topic 810 ...

  • Page 51
    ....9 0.2 12.7 0.1 ― 1.4 0.5 0.8 Used vehicle sales New vehicle sales Wholesale vehicle sales Other sales and revenues NET SALES AND O PERATING REVENUES $ 7,210,017 198...― 6.8 2.6 4.2 Cost of sales GRO SS PRO FIT C ARMAX AUTO FINANC E INC O ME Selling, general and administrative expenses Interest...

  • Page 52
    ... share data) ASSETS C URRENT ASSETS: As of February 28 2011 (1) 2010 Cash and cash equivalents Restricted cash from collections on auto loan receivables Accounts receivable, net Auto loan receivables held for sale Retained interest in securitized receivables Inventory Deferred income taxes Other...

  • Page 53
    ... (purchases) of money market securities, net Sales of investments available-for-sale NET C ASH USED IN INVESTING AC TIVITIES FINANC ING AC TIVITIES: Increase (decrease) in short-term debt, net Issuances of long-term debt Payments on long-term debt Issuances of non-recourse notes payable Payments on...

  • Page 54
    ... Impact of accounting change ( 1) Comprehensive income: Net earnings Retirement benefit plans, net of taxes of $1,215 Cash flow hedges, net of taxes of $398 Total comprehensive income Share-based compensation expense Exercise of common stock options Shares issued under stock incentive plans Shares...

  • Page 55
    ...the appraisal and purchase of vehicles directly from consumers; and vehicle repair service. Vehicles purchased through the appraisal process that do not meet our retail standards are sold to licensed dealers through on-site wholesale auctions. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (A) Basis...

  • Page 56
    ... funded in existing term securitizations. Consolidation of the auto loan receivables and the related non-recourse notes payable funded in the existing warehouse facility. Recognition of an allowance for loan losses on the consolidated auto loan receivables. Consolidation of customer loan payments...

  • Page 57
    ... new car inventory when we purchase the vehicles. (H) Auto Loan Receivables, Net Auto loan receivables include amounts due from customers primarily related to used retail vehicle sales financed through CAF and are presented net of an allowance for estimated loan losses. The allowance for loan losses...

  • Page 58
    .... The ESPs we offer on all used vehicles provide coverage up to 72 months (subject to mileage limitations), while GAP covers the customer for the term of their finance contract. Because we are not the primary obligor under these plans, we recognize commission revenue at the time of sale, net of...

  • Page 59
    ... balance sheets. Where applicable, such contracts covered by master netting agreements are reported net. Gross positive fair values are netted with gross negative fair values by counterparty. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative...

  • Page 60
    ... common stock. See Note 13 for additional information on net earnings per share. (W) Risks and Uncertainties We sell used and new vehicles. The diversity of our customers and suppliers and the highly fragmented nature of the U.S. automotive retail market reduce the risk that near-term changes in...

  • Page 61
    ... regarding the indirect benefits or costs that could be attributed to CAF. Examples of indirect costs not included are retail store expenses and corporate expenses such as human resources, administrative services, marketing, information systems, accounting, legal, treasury and executive payroll. 51

  • Page 62
    ...(1) 2011 $ 4,334.6 % (1) 100.0 $ 86.6 24.2 10.5 2.0 0.6 0.2 2.8 $ 121.3 Percent of total ending managed receivables. Credit Quality. When customers apply for financing, CAF uses proprietary scoring models that rely on the customers' prior credit history and certain application information to...

  • Page 63
    ... in reserve accounts and the restricted cash from collections on auto loan receivables. We have not provided financial or other support to the securitization vehicles or investors that was not previously contractually required. There are no additional arrangements, guarantees or other commitments...

  • Page 64
    ...agreement. As of February 28, 2011, $4.33 billion in ending managed receivables were reported in accordance with FASB ASC Topic 810. This amount serves as collateral for the related non-recourse notes payable of $4.01 billion as of the same date. See Notes 4 and 11 for additional information on auto...

  • Page 65
    ... benefit of the securitization investors. In the event that the cash generated by the securitized receivables in a given period was insufficient to pay the interest, principal and other required payments, the balances on deposit in the reserve accounts would be used to pay those amounts. In general...

  • Page 66
    ...funding costs to the use of the funding. However, disruptions in the credit markets could impact the effectiveness of our hedging strategies. Credit risk is the exposure to nonperformance of another party to an agreement. We mitigate credit risk by dealing with highly rated bank counterparties. Cash...

  • Page 67
    ... speculative and are used to better match funding costs to the interest on fixed-rate receivables being securitized, to minimize the funding costs related to certain term securitization trusts and to limit risk for investors in the warehouse facilities. Changes in the fair value of derivatives not...

  • Page 68
    ... classification on the consolidated balance sheets. See Note 7 for additional information on fair value measurements. DERIVATIVES DESIGNATED AS ACCOUNTING HEDGES (In thousands) Location Other current assets Accounts payable As of February 28 2011 2010 $ 2,105 (1,093) $ 1,012 Asset derivatives...

  • Page 69
    ... or accounts payable. As described in Note 6, as part of our risk management strategy, we utilize derivative instruments to manage differences in the amount of our known or expected cash receipts and our known or expected cash payments principally related to the funding of our auto loan receivables...

  • Page 70
    to limit risk for investors in the warehouse facilities. Our derivatives are not exchange-traded and are over-thecounter customized derivative instruments. All of our derivative exposures are with highly rated bank counterparties. We measure derivative fair values assuming that the unit of account ...

  • Page 71
    ...equipment, net Land held for development represents land owned for potential expansion. Leased property meeting capital lease criteria is capitalized and the present value of the related lease payments is recorded as long-term debt. Accumulated amortization on capital lease assets was $11.4 million...

  • Page 72
    ...) As of February 28 2011 2010 $ 38,287 47,798 ― 45,726 1,445 133,256 (1,445) 131,811 $ 33,795 15,286 1,960 44,526 2,514 98,081 (2,514) 95,567 Deferred tax assets: Accrued expenses Partnership basis Inventory Stock compensation Capital loss carry forward Total gross deferred tax assets Less...

  • Page 73
    ... 2010 Total 2011 2010 (In thousands) Change in projected benefit obligation: Obligation at beginning of year Service cost Interest cost Actuarial loss (gain) Curtailment gain Benefits paid Obligation at end of year Change in fair value of plan assets: Plan assets at beginning of year Actual return...

  • Page 74
    ... Plan 2011 2010 2011 2010 5.80% 6.10% 5.80% 6.10% Discount rate Plan Assets. The fair value of plan assets is measured using current market values. Our pension plan assets are held in trust and management sets the investment policies and strategies. Long-term strategic investment objectives...

  • Page 75
    ... OF NET PENSION EXPENSE (In thousands) Service cost Interest cost Expected return on plan assets Amortization of prior service cost Recognized actuarial loss (gain) Pension expense (benefit) Curtailment (gain) loss Net pension expense (benefit) Pension Plan 2011 2010 2009 10,548 6,541 5,710...

  • Page 76
    ... as the additional company-funded contribution to the associates meeting the same age and service requirements. This plan is unfunded with lump sum payments to be made upon the associate's retirement. The total cost for this plan was $1.0 million in fiscal 2011. The total cost for this plan was not...

  • Page 77
    ...800 million of the warehouse facility limit will expire in August 2011 and $800 million will expire in February 2012. The return requirements of investors in the bank conduits could fluctuate significantly depending on market conditions. At renewal, the cost, structure and capacity of the facilities...

  • Page 78
    ...costs. See Notes 4 and 5 for additional information on the related securitized auto loan receivables. 12. STOCK AND STOCK-BASED INCENTIVE PLANS (A) Shareholder Rights Plan and Undesignated Preferred Stock In conjunction with our shareholder rights plan, shareholders received preferred stock purchase...

  • Page 79
    ...last trading day of each reporting period. The total costs for matching contributions for our employee stock purchase plan are included in share-based compensation expense. There were no capitalized share-based compensation costs as of the end of fiscal 2011, fiscal 2010 or fiscal 2009. STOCK OPTION...

  • Page 80
    ... 2009. The unrecognized compensation costs related to nonvested options totaled $23.0 million as of February 28, 2011. These costs are expected to be recognized on a straight-line basis over a weighted average period of 2.0 years. ASSUMPTIONS USED TO ESTIMATE OPTION VALUES Years Ended February 28...

  • Page 81
    ... unrecognized compensation costs related to nonvested MSUs totaled $8.5 million as of February 28, 2011. These costs are expected to be recognized on a straight-line basis over a weighted average period of 1.5 years. CASH-SETTLED RESTRICTED STOCK UNIT ACTIVITY Weighted Average Grant Date Fair Value...

  • Page 82
    ... purchased on the open market on behalf of associates totaled 301,195 during fiscal 2011; 452,936 during fiscal 2010; and 677,944 during fiscal 2009. The average price per share for purchases under the plan was $25.80 in fiscal 2011, $16.71 in fiscal 2010 and $12.22 in fiscal 2009. The total costs...

  • Page 83
    ... Balance as of February 28, 2011 Changes in the funded status of our retirement plans and the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive loss. The cumulative balances are net...

  • Page 84
    ... related to meal and rest breaks and overtime; (3) failure to pay overtime; (4) failure to comply with itemized employee wage statement provisions; and (5) unfair competition. The putative class consisted of sales consultants, sales managers, and other hourly employees who worked for the company...

  • Page 85
    ... these arrangements. As part of our customer service strategy, we guarantee the used vehicles we retail with at least a 30-day limited warranty. A vehicle in need of repair within this period will be repaired free of charge. As a result, each vehicle sold has an implied liability associated with it...

  • Page 86
    ..., processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission's rules and forms. Disclosure controls are also designed to ensure that this information is accumulated and communicated to management, including the chief executive officer ("CEO...

  • Page 87
    ... 2006. Mr. Dolan had prior executive experience in information systems with H.E. Butt Grocery Company, a privately held grocery retailer, where he was vice president and chief information officer. Mr. Kunkel joined CarMax in 1998 as vice president, marketing and strategy. Mr. Kunkel was named senior...

  • Page 88
    ... "Non-Employee Director Compensation in Fiscal 2011" in our 2011 Proxy Statement. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information required by this Item is incorporated by reference to the section titled "CarMax Share Ownership...

  • Page 89
    ... are filed as part of this Form 10-K and should be read in conjunction with the Consolidated Financial Statements of CarMax, Inc. and Notes thereto, included in Item 8 of this Form 10-K. Schedules not listed above have been omitted because they are not applicable, are not required or the information...

  • Page 90
    ... authorized. CARMAX, INC. By: /s/ THOMAS J. FOLLIARD Thomas J. Folliard President and Chief Executive Officer April 28, 2011 By: /s/ THOMAS W. REEDY Thomas W. Reedy Senior Vice President and Chief Financial Officer April 28, 2011 Pursuant to the requirements of the Securities Exchange Act of...

  • Page 91
    ... financial statements. Balance at beginning of fiscal year reflects the impact of adopting ASU Nos. 2009-16 and 2009-17 effective March 1, 2010. See 2(E) for additional information. See Notes 2(E) and 2(H) for additional information on the auto loan receivables and the allowance for loan losses...

  • Page 92
    ....1 to CarMax's Quarterly Report on Form 10 -Q, filed January 7, 2011 (File No. 1-31420) is incorporated by this reference. * Severance Agreement between CarMax, Inc. and William C. Wood, Jr., filed herewith. * Form Amendment to CarMax, Inc. Employment/Severance Agreement for Executive Officer, dated...

  • Page 93
    .... * CarMax, Inc. 2002 Employee Stock Purchase Plan, as amended and restated June 23, 2009, filed as Exhibit 10.1 to CarMax's Quarterly Report on Form 10-Q, filed July 9, 2009 (File No. 1-31420), is incorporated by this reference. Credit Agreement, dated August 24, 2005, among CarMax Auto Superstores...

  • Page 94
    ... management contracts, compensatory plans or arrangements of the company required to be filed as an exhibit. (1) In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Annual Report on Form 10-K is deemed not filed or part of a registration statement...

  • Page 95
    ... President Chief Information Officer Cliff Wood Senior Vice President Sales Anu Agarwal Vice President Business Strategy Dave Banks Vice President Information Technology Dan Bickett Vice President Construction and Facilities Jon Daniels Vice President CarMax Auto Finance Laura Donahue Vice President...

  • Page 96
    ...Vice President CarMax Auto Finance Ron Costa Region Vice President Merchandising Los Angeles Region Kevin Cox Region Vice President General Manager Atlanta Region Craig Cronheim Assistant Vice President Loss Prevention John Davis Region Vice President Service Operations Mid-Atlantic Region Jason Day...

  • Page 97
    ... H. Grubb Retired Executive Vice President and Chief Financial Officer Transamerica Corporation (an insurance and financial services company) Mitchell D. Steenrod Senior Vice President, Chief Financial Officer and Chief Information Officer Pilot Travel Centers LLC (an operator of travel centers and...

  • Page 98
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  • Page 99
    ..., Virginia 23060 STOCK INFORMATION For quarterly sales and earnings information, financial reports, filings with the Securities and Exchange Commission (including Form 10-K), news releases and other investor information, please visit our investor website at investor.carmax.com Information may...

  • Page 100
    CARMAX, INC. ANNUAL REPORT FISCAL YEAR 2011 CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND, VIRGINIA 23238 804-747-0422 WWW.CARMAX.COM