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Stock and Stock-Based Incentive Plans (Tables)

3 Months Ended

May 31, 2018

Share-based Compensation [Abstract]

Schedule of Common Stock Repurchases

Common Stock Repurchases

	Three Months Ended
	May 31
	2018				2017
Number of shares repurchased (in thousands)	3,307.6				3,034.7
Average cost per share	$	62.69			$	60.00
Available for repurchase, as of end of period (in millions)	$	809.5			$	1,408.3

Composition of Share-Based Compensation Expense

Composition of Share-Based Compensation Expense

	Three Months Ended
	May 31
(In thousands)	2018				2017
Cost of sales	$	1,291			$	227
CarMax Auto Finance income	1,197				820
Selling, general and administrative expenses	26,977				18,093
Share-based compensation expense, before income taxes	$	29,465			$	19,140

Composition Of Share-Based Compensation Expense - By Grant Type

Composition of Share-Based Compensation Expense – By Grant Type

	Three Months Ended
	May 31
(In thousands)	2018				2017
Nonqualified stock options	$	11,115			$	10,370
Cash-settled restricted stock units (RSUs)	12,354				3,118
Stock-settled market stock units (MSUs)	4,636				3,621
Other share-based incentives:
Stock-settled performance stock units (PSUs)	406				1,353
Restricted stock (RSAs)	487				414
Employee stock purchase plan	467				264
Total other share-based incentives	$	1,360			$	2,031
Share-based compensation expense, before income taxes	$	29,465			$	19,140

Unrecognized Share-Based Compensation Expense - by Grant Type [Table Text Block]

Unrecognized Share-­Based Compensation Expense – By Grant Type

	As of May 31, 2018
					Weighted Average
	Unrecognized				Remaining
	Compensation				Recognition Life
(Costs in millions)	Costs				(Years)
Nonqualified stock options	$	55.9			2.7
Stock-settled market stock units	21.0				1.9
Other share-based incentives:
Stock-settled performance stock units	2.0				1.3
Restricted stock	0.1				0.1
Total other share-based incentives	$	2.1			1.2
Total	$	79.0			2.5

Share-based Compensation, Stock Options, Activity [Table Text Block]

Stock Option Activity

								Weighted
				Weighted				Average
				Average				Remaining		Aggregate
	Number of			Exercise				Contractual		Intrinsic
(Shares and intrinsic value in thousands)	Shares			Price				Life (Years)		Value
Outstanding as of February 28, 2018	7,762			$	54.59
Options granted	1,720			63.04
Options exercised	(212	)		42.62
Options forfeited or expired	(91	)		61.51
Outstanding as of May 31, 2018	9,179			$	56.38			4.7		$	121,427
Exercisable as of May 31, 2018	4,585			$	53.11			3.6		$	77,236

Stock Option Information

	Three Months Ended May 31
	2018				2017
Options granted	1,720,387				1,930,362
Weighted average grant date fair value per share	$	18.71			$	16.11
Cash received from options exercised (in millions)	$	9.1			$	6.6
Intrinsic value of options exercised (in millions)	$	4.2			$	3.2
Realized tax benefits (in millions)	$	1.2			$	1.3

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Assumptions Used to Estimate Option Values

	Three Months Ended May 31
	2018						2017
Dividend yield				0.0	%					0.0	%
Expected volatility factor (1)	29.0	%	-	31.4	%		29.4	%	-	32.7	%
Weighted average expected volatility				29.1	%					29.8	%
Risk-free interest rate (2)	1.7	%	-	2.9	%		0.7	%	-	2.1	%
Expected term (in years) (3)				4.6						4.6

⁽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 at the time of grant.

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

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

Cash-Settled Restricted Stock Unit Activity

				Weighted
				Average
	Number of			Grant Date
(Units in thousands)	Units			Fair Value
Outstanding as of February 28, 2018	1,460			$	59.36
Stock units granted	629			$	63.04
Stock units vested and converted	(329	)		$	73.57
Stock units cancelled	(32	)		$	58.42
Outstanding as of May 31, 2018	1,728			$	58.01

 Cash-Settled Restricted Stock Unit Information

	Three Months Ended May 31
	2018				2017
Stock units granted	628,547				627,127
Initial weighted average grant date fair value per share	$	63.04			$	58.38
Payments (before payroll tax withholdings) upon vesting (in millions)	$	20.0			$	25.9
Realized tax benefits (in millions)	$	5.6			$	10.4

Stock-Settled Market Stock Unit Activity

				Weighted
				Average
	Number of			Grant Date
(Units in thousands)	Units			Fair Value
Outstanding as of February 28, 2018	419			$	74.04
Stock units granted	202			$	81.86
Stock units vested and converted	(92	)		$	90.46
Stock units cancelled	(10	)		$	73.63
Outstanding as of May 31, 2018	519			$	74.19

Stock-Settled Market Stock Unit Information

	Three Months Ended May 31
	2018				2017
Stock units granted	202,043				158,637
Weighted average grant date fair value per share	$	81.86			$	73.58
Realized tax benefits (in millions)	$	1.4			$	7.0

Expected Cash Settlement Range Upon Cash Settled Restricted Stock Unit Vesting [Table Text Block]

Expected Cash Settlement Range Upon Restricted Stock Unit Vesting

	As of May 31, 2018
(In thousands)	Minimum (1)				Maximum (1)
Fiscal 2020	$	19,649			$	52,399
Fiscal 2021	22,359				59,623
Fiscal 2022	24,369				64,985
Total expected cash settlements	$	66,377			$	177,007

⁽¹⁾  Net of estimated forfeitures.

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