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Stock And Stock-Based Incentive Plans
 9 Months Ended
Nov. 30, 2016
Share-based Compensation [Abstract]  
Stock And Stock-Based Incentive Plans
Stock and Stock-Based Incentive Plans
 
(A) Share Repurchase Program
As of November 30, 2016, our board of directors has authorized the repurchase of up to $4.55 billion of our common stock. At that date, $1.69 billion was available for repurchase under the board's outstanding authorization, which includes an additional $750 million authorized during fiscal 2017. Also during fiscal 2017, the board removed the expiration date of the outstanding repurchase authorizations.  

Common Stock Repurchases
 
Three Months Ended
 
Nine Months Ended
 
November 30
 
November 30
 
2016
 
2015
 
2016
 
2015
Number of shares repurchased (in thousands)
3,780.5

 
7,680.8

 
8,715.2

 
13,336.1

Average cost per share
$
52.56

 
$
58.03

 
$
52.38

 
$
61.14

Available for repurchase, as of end of period (in millions)
$
1,691.5

 
$
1,553.8

 
$
1,691.5

 
$
1,553.8



(B) Share-Based Compensation

Composition of Share-Based Compensation Expense
 
Three Months Ended
 
Nine Months Ended
 
November 30
 
November 30
(In thousands)
2016
 
2015
 
2016
 
2015
Cost of sales
$
584

 
$
394

 
$
2,998

 
$
1,459

CarMax Auto Finance income
663

 
502

 
2,314

 
1,100

Selling, general and administrative expenses
10,522

 
11,178

 
67,784

 
43,728

Share-based compensation expense, before income taxes
$
11,769

 
$
12,074

 
$
73,096

 
$
46,287


 
Composition of Share-Based Compensation Expense – By Grant Type
 
Three Months Ended
 
Nine Months Ended
 
November 30
 
November 30
(In thousands)
2016
 
2015
 
2016
 
2015
Nonqualified stock options
$
4,756

 
$
5,794

 
$
32,977

 
$
20,064

Cash-settled restricted stock units (RSUs)
4,490

 
2,960

 
25,951

 
14,358

Stock-settled market stock units (MSUs)
2,463

 
2,586

 
9,811

 
8,123

Stock-settled performance stock units (PSUs)
(488
)
 
341

 
1,844

 
1,579

Employee stock purchase plan
305

 
296

 
1,070

 
1,003

Restricted stock awards (RSAs)
243

 
97

 
1,443

 
1,160

Share-based compensation expense, before income taxes
$
11,769

 
$
12,074

 
$
73,096

 
$
46,287



(C) Stock Incentive Plan Information

Share/Unit Activity
 
Nine Months Ended November 30, 2016
 
Equity Classified
 
Liability Classified
(Shares/units in thousands)
Options
MSUs
PSUs
RSAs
 
RSUs
Outstanding as of February 29, 2016
7,322

543

66

17

 
1,320

Granted
2,310

171

83

49

 
632

Exercised or vested and converted
(1,144
)
(210
)
—

(17
)
 
(436
)
Cancelled
(4
)
(1
)
—

—

 
(89
)
Outstanding as of November 30, 2016
8,484

503

149

49

 
1,427

 
 
 
 
 
 
 
Weighted average grant date fair value per share/unit:
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted
$
14.19

$
63.96

$
51.63

$
50.65

 
$
51.63

Ending outstanding
$
14.99

$
65.66

$
60.94

$
50.65

 
$
55.04

 
 
 
 
 
 
 
 
As of November 30, 2016
 
 
Unrecognized compensation (in millions)
$
37.4

$
13.6

$
2.5

$
1.2

 
 


In the second quarter of fiscal 2017, in connection with the retirement of our former CEO, Thomas J. Folliard, the board of directors modified certain equity awards previously granted to him. This modification effectively provided Mr. Folliard retirement treatment under the terms of the awards, notwithstanding that he was younger than 55 years old. The modification resulted in the recognition of additional share-based compensation expense of $10.9 million. In addition, the awards granted to Mr. Folliard in April 2016 effectively provided him retirement treatment, thus full expense recognition of $3.5 million occurred at the grant date.