Share-Based Compensation (Tables)

6 Months Ended

Aug. 31, 2012

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)	2012		2011		2012		2011
Cost of sales	$	682	$	414	$	1,097	$	689
CarMax Auto Finance income		651		506		1,129		862
Selling, general and administrative expenses		13,559		10,638		28,483		25,241
Share-based compensation expense, before income taxes	$	14,892	$	11,558	$	30,709	$	26,792

Composition Of Share-Based Compensation Expense-By Grant Type

	Three Months Ended				Six Months Ended
	August 31				August 31
(In thousands)	2012		2011		2012		2011
Nonqualified stock options	$	5,528	$	4,899	$	14,241	$	12,885
Cash-settled restricted stock units		5,692		3,520		8,392		6,867
Stock-settled restricted stock units		2,844		2,292		7,023		5,838
Employee stock purchase plan		278		265		503		489
Stock grants to non-employee directors		550		550		550		550
Restricted stock		―		32		―		163
Share-based compensation expense, before income taxes	$	14,892	$	11,558	$	30,709	$	26,792

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 29, 2012		12,578	$	19.84
Options granted		2,234		31.60
Options exercised		(792)		15.86
Options forfeited or expired		(33)		24.70
Outstanding as of August 31, 2012		13,987	$	21.93		3.8	$	127,631
Exercisable as of August 31, 2012		9,221	$	18.61		2.9	$	112,031

Outstanding Stock Options

					As of August 31, 2012
					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
$	7.14	-	$	10.75		482		0.6	$	7.15		482	$	7.15
$	11.43					2,196		3.6	$	11.43		1,618	$	11.43
$	13.19	-	$	14.81		2,044		2.3	$	13.83		2,044	$	13.83
$	14.86	-	$	19.82		2,033		2.4	$	19.22		2,033	$	19.22
$	19.98	-	$	25.12		1,304		1.9	$	24.78		1,233	$	24.84
$	25.39	-	$	30.24		1,851		4.5	$	25.56		1,019	$	25.41
$	31.76	-	$	32.05		2,189		6.6	$	31.76		140	$	31.77
$	32.69	-	$	33.11		1,888		5.6	$	32.70		652	$	32.70
Total						13,987		3.8	$	21.93		9,221	$	18.61

Assumptions Used To Estimate Option Values

	Six Months Ended August 31
	2012					2011
Dividend yield				0.0	%				0.0	%
Expected volatility factor (1)	32.4	%	-	51.4	%	34.8	%	-	51.0	%
Weighted average expected volatility				49.4	%				49.3	%
Risk-free interest rate (2)	0.02	%	-	2.0	%	0.01	%	-	3.5	%
Expected term (in years)(3)				4.7					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 in effect at the time of grant.

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

Expected Cash Settlement Range Upon Restricted Stock Unit Vesting

	As of August 31, 2012
(In thousands)	Minimum(1)		Maximum (1)
Fiscal 2014	$	10,583	$	28,220
Fiscal 2015		11,497		30,659
Fiscal 2016		12,645		33,721
Total expected cash settlements	$	34,725	$	92,600

⁽¹⁾Net of estimated forfeitures.

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 29, 2012	1,915	$	21.76
Stock units granted	644	$	31.76
Stock units vested and converted	(780)	$	11.53
Stock units cancelled	(58)	$	28.68
Outstanding as of August 31, 2012	1,721	$	29.90

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 29, 2012	950	$	31.12
Stock units granted	347	$	40.36
Stock units vested and converted	(387)	$	16.67
Stock units cancelled	(6)	$	40.77
Outstanding as of August 31, 2012	904	$	41.00