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Income Taxes | 12 Months Ended
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Feb. 28, 2014
Income Taxes [Abstract] |
Income Taxes | 9.Income Taxes Income Tax Provision
| Years Ended February 28 or 29
(In thousands) | 2014 | 2013 | 2012
Current: |  |  |  |  |  |  |  |  |
Federal | $ | 283,174 |  | $ | 232,652 |  | $ | 223,548 |
State |  | 38,747 |  |  | 30,557 |  |  | 30,439 |
Total |  | 321,921 |  |  | 263,209 |  |  | 253,987 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | (15,129) |  |  | 4,705 |  |  | 54 |
State |  | (2,056) |  |  | (847) |  |  | (926) |
Total |  | (17,185) |  |  | 3,858 |  |  | (872) |
Income tax provision | $ | 304,736 |  | $ | 267,067 |  | $ | 253,115 |
Effective Income Tax Rate Reconciliation
| Years Ended February 28 or 29
| 2014 | 2013 | 2012
Federal statutory income tax rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State and local income taxes, net of federal benefit |  | 3.1 |  |  | 2.9 |  |  | 2.9 |
Nondeductible and other items |  | 0.2 |  |  | 0.2 |  |  | 0.2 |
Credits |  | (0.1) |  |  | ― |  |  | (0.2) |
Valuation allowance |  | ― |  |  | ― |  |  | 0.1 |
Effective income tax rate |  | 38.2 | % |  | 38.1 | % |  | 38.0 | %
Temporary Differences Resulting in Deferred Tax Assets and Liabilities
|  |  |  | As of February 28
(In thousands) |  |  |  | 2014 | 2013
Deferred tax assets: |  |  |  |  |  |  |  |  |
Accrued expenses |  |  |  | $ | 48,611 |  | $ | 35,270 |
Partnership basis |  |  |  |  | 71,503 |  |  | 70,737 |
Property and equipment |  |  |  |  | ― |  |  | 3,510 |
Stock compensation |  |  |  |  | 60,158 |  |  | 53,297 |
Derivatives |  |  |  |  | 4,896 |  |  | 3,904 |
Capital loss carry forward |  |  |  |  | 1,296 |  |  | 1,110 |
Total gross deferred tax assets |  |  |  |  | 186,464 |  |  | 167,828 |
Less: valuation allowance |  |  |  |  | (1,296) |  |  | (1,110) |
Net gross deferred tax assets |  |  |  |  | 185,168 |  |  | 166,718 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |
Prepaid expenses |  |  |  |  | 13,991 |  |  | 9,429 |
Property and equipment |  |  |  |  | 3,737 |  |  | ― |
Inventory |  |  |  |  | 7,375 |  |  | 6,221 |
Total gross deferred tax liabilities |  |  |  |  | 25,103 |  |  | 15,650 |
Net deferred tax asset |  |  |  | $ | 160,065 |  | $ | 151,068 |
Except for amounts for which a valuation allowance has been provided, we believe it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. The valuation allowance as of February 28, 201 4, relates to capital loss carryforwards that are not more likely than not to be utilized prior to their expiration. Reconciliation of Unrecognized Tax Benefits
| Years Ended February 28 or 29
(In thousands) | 2014 | 2013 | 2012
Balance at beginning of year | $ | 25,059 |  | $ | 20,930 |  | $ | 18,662 |
Increases for tax positions of prior years |  | 1,523 |  |  | 1,685 |  |  | 5,403 |
Decreases for tax positions of prior years |  | (4,658) |  |  | (596) |  |  | (6,918) |
Increases based on tax positions related to the current year |  | 5,960 |  |  | 7,491 |  |  | 4,754 |
Settlements |  | (809) |  |  | (4,136) |  |  | (334) |
Lapse of statute |  | (745) |  |  | (315) |  |  | (637) |
Balance at end of year | $ | 26,330 |  | $ | 25,059 |  | $ | 20,930 |
As of February 28, 201 4, we had $26.3 million of gross unrecognized tax benefits, $7.6 million of which, if recognized, would affect our effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of our uncertain tax positions will increase or decrease during the next 12 months; however, we do not expect the change to have a significant effect on our results of operations, financial condition or cash flows. As of February 2 8, 201 3, we had $25.1 million of gross unrecognized tax benefits, $5.4 million of which, if recognized, would affect our effective tax rate. As of February 2 9, 201 2, we had $20.9 million of gross unrecognized tax benefits, $3.9 million of which, if recognized, would affect our effective tax rate. Our continuing practice is to recognize interest and penalties related to income tax matters in SG&A expenses. Our accrual for interest and penalties increased $0.3 million to $1.6 million as of February 28, 201 4, from $1.3 million as of February 2 8, 201 3. Our accrual for interest and penalties increased $0.2 million to $1.3 million as of February 2 8, 201 3, from $1.1 million as of February 2 9, 201 2. CarMax is subject to U.S. federal income tax as well as income tax of multiple states and local jurisdictions. With a few insignificant exceptions, we are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to fiscal 2011.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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