CarMax 2011 Annual Report Download - page 85

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75
for the sale of properties, we generally agree to indemnify the buyer from certain liabilities and costs arising
subsequent to the date of the sale, including environmental liabilities and liabilities resulting from the breach of
representations or warranties made in accordance with the agreements. We do not have any known material
environmental commitments, contingencies or other indemnification issues arising from 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. Accordingly, based on historical trends, we record a provision for
estimated future repairs during the guarantee period for each vehicle sold. The liability for this guarantee was $3.2
million as of February 28, 2011, and $2.6 million as of February 28, 2010, and is included in accrued expenses and
other current liabilities.
17. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)
Net sales and operating revenues 2,261,912$ 2,341,880$ 2,119,129$ 2,252,633$ 8,975,554$
Gross profit 333,548$ 349,118$ 297,910$ 320,652$ 1,301,228$
CarMax Auto Finance income 57,495$ 52,604$ 55,745$ 54,139$ 219,983$
Selling, general and administrative
expenses 226,692$ 225,236$ 219,707$ 233,456$ 905,091$
Net earnings 101,119$ 107,885$ 82,364$ 89,510$ 380,878$
Net earnings per share:
Basic 0.45$ 0.48$ 0.37$ 0.40$ 1.70$
Diluted 0.44$ 0.48$ 0.36$ 0.39$ 1.67$
(In thousands, except per share data)
Net sales and operating revenues 1,834,300$ 2,076,671$ 1,725,977$ 1,833,245$ 7,470,193$
Gross profit 276,237$ 314,549$ 242,863$ 265,221$ 1,098,870$
CarMax Auto Finance (loss) income (21,636)$ 72,130$ 65,806$ 58,917$ 175,217$
Selling, general and administrative
expenses 206,225$ 218,122$ 192,140$ 202,204$ 818,691$
Net earnings 28,748$ 102,971$ 74,589$ 75,360$ 281,668$
Net earnings per share:
Basic 0.13$ 0.47$ 0.34$ 0.34$ 1.27$
Diluted 0.13$ 0.46$ 0.33$ 0.33$ 1.26$
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