Lease Commitments

12 Months Ended

Feb. 28, 2014

15.Lease Commitments

Our leases primarily consist of land or land and building leases related to CarMax superstore locations. Our lease obligations are based upon contractual minimum rates. Most leases provide that we pay taxes, maintenance, insurance and operating expenses applicable to the premises. The initial term of most real property leases will expire within the next 20 years; however, most of the leases have options providing for renewal periods of 5 to 20 years at terms similar to the initial terms. For finance and capital leases, a portion of the periodic lease payments is recognized as interest expense and the remainder reduces the obligations. For operating leases, rent is recognized on a straight-line basis over the lease term, including scheduled rent increases and rent holidays. Rent expense for all operating leases was $43.6 million in fiscal 2014, $42.8 million in fiscal 2013 and $42.3 million in fiscal 2012. See Note 11 for additional information on finance and capital lease obligations.

Future Minimum Lease Obligations


	As of February 28, 2014
	Capital		Finance		Operating Lease
(In thousands)	Lease (1)		Leases (1)		Commitments (1)
Fiscal 2015	$	304	$	47,369	$	42,341
Fiscal 2016		333		48,219		42,400
Fiscal 2017		354		42,589		39,708
Fiscal 2018		354		35,408		36,890
Fiscal 2019		354		32,577		35,639
Fiscal 2020 and thereafter		5,163		160,997		251,091
Total minimum lease payments		6,862		367,159		448,069
Less amounts representing interest		(4,081)
Present value of net minimum lease payments	$	2,781

⁽¹⁾

Excludes taxes, insurance and other costs payable directly by us. These costs vary from year to year and are incurred in

the ordinary course of business.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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