CarMax 2012 Annual Report Download - page 17

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11
Most 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 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, equal credit opportunity and fair credit reporting
laws and regulations, as well as state and local motor vehicle finance, collection, repossession and installment
finance 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 above-ground gasoline storage tanks,
gasoline dispensing equipment, above-ground oil tanks and automotive paint booths.
AVAILABILITY OF REPORTS AND OTHER INFORMATION
The following items are available 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
on Form 10-Q, current reports on Form 8-K, proxy statements on Schedule 14A, and any amendments to those
reports. In addition, the following documents are also available free of charge on our website: Corporate
Governance Guidelines, Code of Business Conduct, and the charters of the Audit Committee, Nominating and
Governance Committee, and Compensation and Personnel Committee. We publish any changes to these documents
on our website. We also promptly disclose reportable waivers of the Code of Business Conduct on our website. The
contents of our website are not, however, part of this report.
Printed copies of these documents are also available to any shareholder, without charge, upon written request to our
corporate secretary at the address set forth on the cover page of this report.
Item 1A. Risk Factors.
We are subject to a variety of risks, the most significant of which are described below. Our business, sales, results
of operations and financial condition could be materially adversely affected by any of these risks or additional risks.
Economic Conditions. We are subject to changes in general or regional U.S. economic conditions, including, but
not limited to, consumer credit availability, consumer credit delinquency and loss rates, interest rates, gasoline
prices, inflation, personal discretionary spending levels, unemployment levels, the state of the housing market, and
consumer sentiment about the economy in general. The difficult U.S. economic environment over the past several
years has adversely affected the automotive retail industry in general, including CarMax. Any significant change or
further deterioration in economic conditions could adversely affect consumer demand or increase costs and have a
material adverse effect on our business, sales, results of operations and financial condition.
Capital. Changes in the availability or cost of capital and working capital financing, including the long-term
financing to support the origination of auto loan receivables through CAF and our geographic expansion, could
adversely affect sales, operating strategies and store growth. Further, our current credit facility and certain
securitization and sale-leaseback agreements contain covenants and/or performance triggers. Any failure to comply
with these covenants or performance triggers could have a material adverse effect on our business, results of
operations and financial condition.