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Stock And Stock-Based Incentive Plans (Tables) | 6 Months Ended
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Aug. 31, 2014
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) |  | 2014 | 2013 | 2014 | 2013
Cost of sales |  | $ | 1,247 |  | $ | 586 |  | $ | 1,574 |  | $ | 1,859 |
CarMax Auto Finance income |  |  | 961 |  |  | 730 |  |  | 1,637 |  |  | 1,512 |
Selling, general and administrative expenses |  |  | 20,493 |  |  | 14,063 |  |  | 35,209 |  |  | 35,237 |
Share-based compensation expense, before income taxes |  | $ | 22,701 |  | $ | 15,379 |  | $ | 38,420 |  | $ | 38,608 |
Composition Of Share-Based Compensation Expense - By Grant Type |
|  | Three Months Ended | Six Months Ended
|  | August 31 | August 31
(In thousands) |  | 2014 | 2013 | 2014 | 2013
Nonqualified stock options |  | $ | 6,887 |  | $ | 5,786 |  | $ | 15,007 |  | $ | 12,819 |
Cash-settled restricted stock units |  |  | 11,074 |  |  | 5,884 |  |  | 14,221 |  |  | 17,972 |
Stock-settled restricted stock units |  |  | 3,472 |  |  | 2,891 |  |  | 7,593 |  |  | 6,711 |
Employee stock purchase plan |  |  | 311 |  |  | 318 |  |  | 642 |  |  | 606 |
Restricted stock awards to non-employee directors |  |  | 957 |  |  | ― |  |  | 957 |  |  | ― |
Stock grants to non-employee directors |  |  | ― |  |  | 500 |  |  | ― |  |  | 500 |
Share-based compensation expense, before income taxes |  | $ | 22,701 |  | $ | 15,379 |  | $ | 38,420 |  | $ | 38,608 |
Assumptions Used To Estimate Option Values |
|  | Six Months Ended August 31
|  | 2014 |  | 2013
Dividend yield |  |  |  |  | 0.0 | % |  |  |  |  | 0.0 | %
Expected volatility factor (1) |  | 25.2 | % | - | 32.7 | % |  | 28.1 | % | - | 46.8 | %
Weighted average expected volatility |  |  |  |  | 31.9 | % |  |  |  |  | 44.7 | %
Risk-free interest rate (2) |  | 0.03 | % | - | 2.7 | % |  | 0.02 | % | - | 2.6 | %
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.
Stock Option [Member] |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
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, 2014 |  | 10,018 |  | $ | 27.02 |  |  |  |  |  |  |  |  |
Options granted |  | 2,003 |  |  | 44.96 |  |  |  |  |  |  |  |  |
Options exercised |  | (2,591) |  |  | 17.09 |  |  |  |  |  |  |  |  |
Options forfeited or expired |  | (16) |  |  | 32.69 |  |  |  |  |  |  |  |  |
Outstanding as of August 31, 2014 |  | 9,414 |  | $ | 33.56 |  |  |  | 4.4 |  |  | $ | 177,333 |
Exercisable as of August 31, 2014 |  | 4,979 |  | $ | 27.40 |  |  |  | 3.3 |  |  | $ | 124,494 |
Outstanding Stock Options |
|  |  |  |  |  | As of August 31, 2014
|  |  |  |  |  | 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 |  |  |  |  |  | 554 |  |  | 1.6 |  | $ | 11.43 |  |  |  | 554 |  | $ | 11.43 |
$ | 13.19 | - | $ | 19.82 |  |  | 488 |  |  | 0.9 |  | $ | 15.57 |  |  |  | 488 |  | $ | 15.57 |
$ | 19.98 | - | $ | 25.39 |  |  | 1,288 |  |  | 2.7 |  | $ | 25.19 |  |  |  | 1,288 |  | $ | 25.19 |
$ | 28.81 | - | $ | 32.69 |  |  | 3,511 |  |  | 4.2 |  | $ | 32.12 |  |  |  | 2,181 |  | $ | 32.22 |
$ | 33.11 | - | $ | 49.25 |  |  | 3,573 |  |  | 6.1 |  | $ | 43.89 |  |  |  | 468 |  | $ | 42.21 |
Total |  |  |  |  |  |  | 9,414 |  |  | 4.4 |  | $ | 33.56 |  |  |  | 4,979 |  | $ | 27.40 |
Assumptions Used To Estimate Option Values | Assumptions Used to Estimate Option Values
|  | Six Months Ended August 31
|  | 2014 |  | 2013
Dividend yield |  |  |  |  | 0.0 | % |  |  |  |  | 0.0 | %
Expected volatility factor (1) |  | 25.2 | % | - | 32.7 | % |  | 28.1 | % | - | 46.8 | %
Weighted average expected volatility |  |  |  |  | 31.9 | % |  |  |  |  | 44.7 | %
Risk-free interest rate (2) |  | 0.03 | % | - | 2.7 | % |  | 0.02 | % | - | 2.6 | %
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 Awards And Restricted Stock Unit Activity |
|  |  |  | Weighted
|  |  |  | Average
|  | Number of | Grant Date
(Units in thousands) |  | Units | Fair Value
Outstanding as of February 28, 2014 |  | 1,531 |  | $ | 35.68 |
Stock units granted |  | 588 |  | $ | 44.96 |
Stock units vested and converted |  | (463) |  | $ | 32.77 |
Stock units cancelled |  | (65) |  | $ | 38.86 |
Outstanding as of August 31, 2014 |  | 1,591 |  | $ | 39.82 |
Expected Cash Settlement Range Upon Restricted Stock Unit Vesting |
|  | As of August 31, 2014
(In thousands) |  | Minimum (1) | Maximum (1)
Fiscal 2016 |  | $ | 12,376 |  | $ | 33,003 |
Fiscal 2017 |  |  | 14,100 |  |  | 37,600 |
Fiscal 2018 |  |  | 16,285 |  |  | 43,428 |
Total expected cash settlements |  | $ | 42,761 |  | $ | 114,031 |
(1)Net of estimated forfeitures.
Stock-Settled Restricted Stock Units [Member] |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
Restricted Stock Awards And Restricted Stock Unit Activity |
|  |  |  | Weighted
|  |  |  | Average
|  | Number of | Grant Date
(Units in thousands) |  | Units | Fair Value
Outstanding as of February 28, 2014 |  | 852 |  | $ | 45.26 |
Stock units granted |  | 245 |  | $ | 55.37 |
Stock units vested and converted |  | (289) |  | $ | 45.65 |
Stock units cancelled |  | ― |  | $ | ― |
Outstanding as of August 31, 2014 |  | 808 |  | $ | 48.18 |

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