CarMax 2013 Annual Report Download - page 66

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(B) Retirement Savings 401(k) Plan
We sponsor a 401(k) plan for all associates meeting certain eligibility criteria. In conjunction with the pension plan
curtailments, enhancements were made to the 401(k) plan effective January 1, 2009. The enhancements increased
the maximum salary contribution for eligible associates and increased our matching contribution. Additionally, an
annual company-funded contribution regardless of associate participation was implemented, as well as an additional
company-funded contribution to those associates meeting certain age and service requirements. The total cost for
company contributions was $23.1 million in fiscal 2013, $20.9 million in fiscal 2012 and $20.5 million in fiscal
2011.
(C) Retirement Restoration Plan
Effective January 1, 2009, we replaced the frozen restoration plan with a new non-qualified retirement plan for
certain senior executives who are affected by Internal Revenue Code limitations on benefits provided under the
Retirement Savings 401(k) Plan. Under this plan, these associates may continue to defer portions of their
compensation for retirement savings. We match the associates’ contributions at the same rate provided under the
401(k) plan, and also provide the annual company-funded contribution made regardless of associate participation, as
well 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 $0.4 million in fiscal 2013, $0.5 million in fiscal 2012 and $1.0 million in fiscal 2011.
(D) Executive Deferred Compensation Plan
Effective January 1, 2011, we established an unfunded nonqualified deferred compensation plan to permit certain
eligible key associates to defer receipt of a portion of their compensation to a future date. This plan also includes a
restorative company contribution designed to compensate the plan participants for any loss of company
contributions under the Retirement Savings 401(k) Plan and the Retirement Restoration Plan due to a reduction in
their eligible compensation resulting from deferrals into the Executive Deferred Compensation Plan. The total cost
for this plan was $0.4 million in fiscal 2013 and was not material in fiscal 2012 or fiscal 2011.
10. DEBT
As of February 28 or 29
(In thousands) 2013 2012
Short-term revolving credit facility $ 355 $ 943
Current portion of finance and capital lease obligations 16,139 14,108
Current portion of non-recourse notes payable 182,915 174,337
Total current debt 199,409 189,388
Finance and capital lease obligations, excluding current portion 337,452
353,566
N
on-recourse notes payable, excluding current portion 5,672,175 4,509,752
Total debt, excluding current portion 6,009,627 4,863,318
Total debt $ 6,209,036 $ 5,052,706
Revolving Credit Facility. Our $700 million unsecured revolving credit facility (the “credit facility”) expires in
August 2016. Borrowings under this credit facility are available for working capital and general corporate purposes.
Borrowings accrue interest at variable rates based on LIBOR, the federal funds rate, or the prime rate, depending on
the type of borrowing, and we pay a commitment fee on the unused portions of the available funds. As of
February 28, 2013, the remaining capacity of the credit facility was fully available to us.
The weighted average interest rate on outstanding short-term and long-term debt was 1.8% in fiscal 2013 and 1.6%
in fiscal 2012 and fiscal 2011.
We capitalize interest in connection with the construction of certain facilities. There was no capitalized interest in
fiscal 2013 or fiscal 2012. Capitalized interest totaled $0.1 million in fiscal 2011.
Finance and Capital Lease Obligations. Finance and capital lease obligations relate primarily to superstores
subject to sale-leaseback transactions. The leases were structured at varying interest rates and generally have initial
lease terms ranging from 15 to 20 years with payments made monthly. Payments on the leases are recognized as
interest expense and a reduction of the obligations.
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