CarMax 2011 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2011 CarMax annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

58
As of February 28, 2011, we had the following outstanding derivatives that were not designated as accounting
hedges:
Interest rate swaps 6 19 to 30 months 147,363$
Interest rate caps (1) 10 30 to 48 months ―$
Product
Number of
Instruments
Remaining Term
As of February 28, 2011
Current Notional
Amount
(in thousands)
(1) Includes five asset derivatives and five liability derivatives with offsetting notional amounts of $1.0 billion.
Fair Values of Derivative Instruments on the Consolidated Balance Sheets. The tables below present the fair
value of our derivative instruments as well as their classification on the consolidated balance sheets. See Note 7 for
additional information on fair value measurements.
DERIVATIVES DESIGNATED AS ACCOUNTING HEDGES
(In thousands) Location
Asset derivatives:
Interest rate swaps Other current assets 2,105$ ―$
Liability derivatives:
Interest rate swaps Accounts payable (1,093) ―
1,012$ ―$
As of February 28
Total
2011
2010
DERIVATIVES NOT DESIGNATED AS ACCOUNTING HEDGES
(In thousands) Location 2011 2010
Asset derivatives:
Interest rate swaps Other current assets 1,136$ 1,279$
Interest rate caps Other current assets 778 1,999
Liability derivatives:
Interest rate swaps Accounts payable (2,742) (7,171)
Interest rate caps Other current assets (779) (1,982)
(1,607)$ (5,875)$
As of February 28
Total
Effect of Derivative Instruments on the Consolidated Statements of Earnings. The tables below present the effect
of the company’s derivative instruments on the consolidated statements of earnings for the years ended
February 28, 2011, 2010 and 2009.
DERIVATIVES DESIGNATED AS ACCOUNTING HEDGES
(In thousands)
Interest rate swaps:
10,376$ ―$ ―$
2,450$ ―$ ―$
4$ ―$ ―$
Loss recognized in AOCL (1)
Loss reclassified from AOCL into CAF Income (1)
Loss recognized in CAF Income (2)
Years Ended February 28
2011
2010
2009
(1) Represents the effective portion.
(2) Represents the ineffective portion and amount excluded from effectiveness testing.