CarMax 2012 Annual Report Download - page 75

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69
The unrecognized compensation costs related to nonvested MSUs totaled $12.2 million as of February 29, 2012. These
costs are expected to be recognized on a straight-line basis over a weighted average period of 1.0 years.
RESTRICTED STOCK ACTIVITY
(Shares in thousands)
Outs tanding as of M arch 1, 2011 863 19.81$
Restricted stock ves ted (856) 19.81$
Restricted stock cancelled (7) 19.82$
Outs tanding as of February 29, 2012 ʊ ʊ$
Number of
Shares
Weighted
Average
Grant Date
Fair Value
We did not grant any shares of restricted stock to our employees in fiscal 2012, fiscal 2011 or fiscal 2010. The fair value
of a restricted stock award is determined and fixed based on the fair market value of our stock on the grant date.
We realized related tax benefits of $10.9 million in fiscal 2012, $7.7 million in fiscal 2011 and $4.1 million in fiscal
2010 from the vesting of restricted stock in fiscal 2012, fiscal 2011 and fiscal 2010, respectively.
(D) Employee Stock Purchase Plan
We sponsor an employee stock purchase plan for all associates meeting certain eligibility criteria. Associate
contributions are limited to 10% of eligible compensation, up to a maximum of $7,500 per year. For each $1.00
contributed to the plan by associates, we match $0.15. We have authorized up to 8,000,000 shares of common stock
for the employee stock purchase plan. Shares are acquired through open-market purchases.
As of February 29, 2012, a total of 4,165,137 shares remained available under the plan. Shares purchased on the
open market on behalf of associates totaled 260,927 during fiscal 2012, 301,195 during fiscal 2011 and 452,936
during fiscal 2010. The average price per share for purchases under the plan was $30.02 in fiscal 2012, $25.80 in
fiscal 2011 and $16.71 in fiscal 2010. The total costs for matching contributions are included in share-based
compensation expense.
13. NET EARNINGS PER SHARE
Nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents
(whether paid or unpaid) are participating securities and should be included in the computation of net earnings per
share pursuant to the two-class method. Our restricted stock awards are considered participating securities because
they contain nonforfeitable rights to dividends and are included in the computation of earnings per share pursuant to
the two-class method. Nonvested MSUs do not receive nonforfeitable dividend equivalent rights, and therefore, are
not considered participating securities. RSUs are nonparticipating, non-equity instruments, and therefore, are
excluded from net earnings per share calculations.