v2.4.0.8
Stock And Stock-Based Incentive Plans (Tables)
6 Months Ended
Aug. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Composition Of Share-Based Compensation Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

 

August 31

August 31

(In thousands)

 

2013

2012

2013

2012

Cost of sales

 

$

586 

 

$

682 

 

$

1,859 

 

$

1,097 

 

CarMax Auto Finance income

 

 

730 

 

 

651 

 

 

1,512 

 

 

1,129 

 

Selling, general and administrative expenses

 

 

14,063 

 

 

13,559 

 

 

35,237 

 

 

28,483 

 

Share-based compensation expense, before income taxes

 

$

15,379 

 

$

14,892 

 

$

38,608 

 

$

30,709 

 

 

Composition Of Share-Based Compensation Expense - By Grant Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

 

August 31

August 31

(In thousands)

 

2013

2012

2013

2012

Nonqualified stock options

 

$

5,786 

 

$

5,528 

 

$

12,819 

 

$

14,241 

 

Cash-settled restricted stock units

 

 

5,884 

 

 

5,692 

 

 

17,972 

 

 

8,392 

 

Stock-settled restricted stock units

 

 

2,891 

 

 

2,844 

 

 

6,711 

 

 

7,023 

 

Employee stock purchase plan

 

 

318 

 

 

278 

 

 

606 

 

 

503 

 

Stock grants to non-employee directors

 

 

500 

 

 

550 

 

 

500 

 

 

550 

 

Share-based compensation expense, before income taxes

 

$

15,379 

 

$

14,892 

 

$

38,608 

 

$

30,709 

 

 

Stock Option Activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Weighted

 

Remaining

 

Aggregate

 

Number of

Average

 

Contractual

 

Intrinsic

(Shares and intrinsic value in thousands)

Shares

Exercise Price

 

Life (Years)

 

Value

Outstanding as of February 28, 2013

 

10,771 

 

$

23.00 

 

 

 

 

 

 

 

 

 

Options granted

 

1,602 

 

 

42.76 

 

 

 

 

 

 

 

 

 

Options exercised

 

(1,116)

 

 

18.65 

 

 

 

 

 

 

 

 

 

Options forfeited or expired

 

(18)

 

 

26.85 

 

 

 

 

 

 

 

 

 

Outstanding as of August 31, 2013

 

11,239 

 

$

26.25 

 

 

 

3.9 

 

 

$

239,558 

 

Exercisable as of August 31, 2013

 

6,997 

 

$

20.66 

 

 

 

2.9 

 

 

$

188,227 

 

 

Outstanding Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of August 31, 2013

 

 

 

 

 

 

Options Outstanding

 

Options Exercisable

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

Weighted

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Remaining

Average

 

 

 

 

Average

(Shares in thousands)

Number of

Contractual

Exercise

 

Number of

Exercise

Range of Exercise Prices

Shares

Life (Years)

Price

 

Shares

Price

$

11.43 

 

 

 

 

 

1,658 

 

 

2.6 

 

$

11.43 

 

 

 

1,658 

 

$

11.43 

 

$

13.19 

-

$

19.82

 

 

2,318 

 

 

1.5 

 

$

16.35 

 

 

 

2,318 

 

$

16.35 

 

$

19.98 

-

$

25.39

 

 

1,730 

 

 

3.4 

 

$

25.18 

 

 

 

1,364 

 

$

25.13 

 

$

25.67 

-

$

32.05

 

 

2,190 

 

 

5.5 

 

$

31.59 

 

 

 

672 

 

$

31.37 

 

$

32.69 

-

$

46.65

 

 

3,343 

 

 

5.6 

 

$

37.50 

 

 

 

985 

 

$

32.82 

 

Total

 

 

 

 

 

 

11,239 

 

 

3.9 

 

$

26.25 

 

 

 

6,997 

 

$

20.66 

 

 

Assumptions Used To Estimate Option Values

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended August 31

 

 

2013

 

2012

Dividend yield

 

 

 

 

0.0 

%

 

 

 

 

0.0 

%

Expected volatility factor (1)  

 

28.1 

%

-

46.8 

%

 

32.4 

%

-

51.4 

%

Weighted average expected volatility

 

 

 

 

44.7 

%

 

 

 

 

49.4 

%

Risk-free interest rate (2)     

 

0.02 

%

-

2.6 

%

 

0.02 

%

-

2.0 

%

Expected term (in years) (3)  

 

 

 

 

4.7 

 

 

 

 

 

4.7 

 

 

(1)Measured using historical daily price changes of our stock for a period corresponding to the term of the options and the implied volatility derived from the market prices of traded options on our stock.

(2)Based on the U.S. Treasury yield curve in effect at the time of grant.

(3)Represents the estimated number of years that options will be outstanding prior to exercise.

Cash-Settled For Restricted Stock Unit [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Restricted Stock And Restricted Stock Unit Activity

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

Average

 

 

Number of

Grant Date

(Units in thousands)

 

Units

Fair Value

Outstanding as of February 28, 2013

 

1,651 

 

$

29.90 

 

Stock units granted

 

542 

 

$

42.68 

 

Stock units vested and converted

 

(559)

 

$

25.53 

 

Stock units cancelled

 

(51)

 

$

34.30 

 

Outstanding as of August 31, 2013

 

1,583 

 

$

35.68 

 

 

Expected Cash Settlement Range Upon Restricted Stock Unit Vesting

 

 

 

 

 

 

 

 

 

 

As of August 31, 2013

(In thousands)

 

Minimum (1)

Maximum (1)

Fiscal 2015

 

$

11,323 

 

$

30,194 

 

Fiscal 2016

 

 

12,467 

 

 

33,247 

 

Fiscal 2017

 

 

14,207 

 

 

37,886 

 

Total expected cash settlements

 

$

37,997 

 

$

101,327 

 

 

(1)Net of estimated forfeitures.

 

Stock-Settled Restricted Stock Units [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Restricted Stock And Restricted Stock Unit Activity

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

Average

 

 

Number of

Grant Date

(Units in thousands)

 

Units

Fair Value

Outstanding as of February 28, 2013

 

904 

 

$

40.78 

 

Stock units granted

 

237 

 

$

51.98 

 

Stock units vested and converted

 

(282)

 

$

36.56 

 

Stock units cancelled

 

(4)

 

$

46.14 

 

Outstanding as of August 31, 2013

 

855 

 

$

45.24