CarMax 2014 Annual Report Download - page 69

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(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 $0.6 million in fiscal 2014, $0.4 million in fiscal 2013 and was not material in fiscal 2012.
11. DEBT
As of February 28
(In thousands) 2014 2013
Short-term revolving credit facility $582 $ 355
Current portion of finance and capital lease obligations 18,459 16,139
Current portion of non-recourse notes payable 223,938 182,915
Total current debt 242,979 199,409
Finance and capital lease obligations, excluding current portion 315,925 337,452
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on-recourse notes payable, excluding current portion 7,024,506 5,672,175
Total debt, excluding current portion 7,340,431 6,009,627
Total debt $ 7,583,410 $ 6,209,036
Revolving Credit Facility. Our $700 million unsecured revolving credit facility (the “credit facility”) expires in
August 2016. Borrowings under the 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, 2014, 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 1.5% in fiscal 2014 and 1.8%
in fiscal 2013 and 1.6% in fiscal 2012.
We capitalize interest in connection with the construction of certain facilities. There was no capitalized interest in
fiscal 2014, fiscal 2013 or fiscal 2012.
Finance and Capital Lease Obligations. Finance and capital lease obligations relate primarily to superstores
subject to sale-leaseback transactions that did not qualify for sale accounting, and therefore, are accounted for as
financings. 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. We have not entered into any sale-leaseback transactions since fiscal 2009. See Note
15 for information on future minimum lease obligations.
Non-Recourse Notes Payable. The non-recourse notes payable relate to auto loan receivables funded through term
securitizations and our warehouse facilities. The timing of principal payments on the non-recourse notes payable is
based on principal collections, net of losses, on the securitized auto loan receivables. The current portion of non-
recourse notes payable represents principal payments that are due to be distributed in the following period.
As of February 28, 2014, $6.37 billion of non-recourse notes payable was outstanding related to term securitizations.
These notes payable accrue interest at fixed rates and have scheduled maturities through August 2020, but may
mature earlier or later, depending upon the repayment rate of the underlying auto loan receivables.