Stock And Stock-Based Incentive Plans (Tables)

12 Months Ended

Feb. 29, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Schedule Of Common Stock Repurchases

Common Stock Repurchases

	Years Ended February 29 or 28
	2020		2019		2018
Number of shares repurchased (in thousands)	6,971.1		13,634.7		8,897.2
Average cost per share	$	80.56	$	66.22	$	64.46
Available for repurchase, as of end of year (in millions)	$	1,552.3	$	2,113.9	$	1,016.8

Composition Of Share-Based Compensation Expense

Composition of Share-Based Compensation Expense

	Years Ended February 29 or 28
(In thousands)	2020		2019		2018
Cost of sales	$	6,382	$	2,952	$	2,552
CarMax Auto Finance income	4,940		3,804		3,167
Selling, general and administrative expenses	99,435		69,928		57,701
Share-based compensation expense, before income taxes	$	110,757	$	76,684	$	63,420

Composition Of Share-Based Compensation Expense - By Grant Type

Composition of Share-Based Compensation Expense – By Grant Type

	Years Ended February 29 or 28
(In thousands)	2020		2019		2018
Nonqualified stock options	$	30,166	$	29,992	$	26,461
Cash-settled restricted stock units (RSUs)	60,739		29,141		23,539
Stock-settled market stock units (MSUs)	12,874		12,683		10,032
Other share-based incentives:
Stock-settled performance stock units (PSUs)	2,559		1,733		648
Stock-settled deferred stock units (DSUs)	2,500		1,155		—
Restricted stock (RSAs)	23		307		1,199
Employee stock purchase plan	1,896		1,673		1,541
Total other share-based incentives	6,978		4,868		3,388
Share-based compensation expense, before income taxes	$	110,757	$	76,684	$	63,420

Unrecognized Share-­Based Compensation Expense – By Grant Type

	As of February 29, 2020
			Weighted Average
	Unrecognized		Remaining
	Compensation		Recognition Life
(Costs in millions)	Costs		(Years)
Nonqualified stock options	$	40.4	2.1
Stock-settled market stock units	12.7		1.1
Other share-based incentives:
Stock-settled performance stock units	5.0		1.2
Stock-settled deferred stock units	—		—
Restricted stock	0.4		2.8
Total other share-based incentives	5.4		0.9
Total	$	58.5	1.8

Stock Option Activity

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, 2019	7,869		$	57.96
Options granted	1,601		78.74
Options exercised	(2,413	)	51.55
Options forfeited or expired	(63	)	67.15
Outstanding as of February 29, 2020	6,994		$	64.85	4.3	$	157,088
Exercisable as of February 29, 2020	3,010		$	62.08	3.3	$	75,935

Outstanding Stock Options

Stock Option Information

	Years Ended February 29 or 28
	2020		2019		2018
Options granted	1,601,489		1,745,497		1,955,117
Weighted average grant date fair value per share	$	22.10	$	18.75	$	16.15
Cash received from options exercised (in millions)	$	124.4	$	58.1	$	73.5
Intrinsic value of options exercised (in millions)	$	78.6	$	37.1	$	57.1
Realized tax benefits (in millions)	$	21.8	$	10.2	$	21.8

Assumptions Used To Estimate Option Values

Assumptions Used to Estimate Option Values

	Years Ended February 29 or 28
	2020					2019					2018
Dividend yield				0.0	%				0.0	%				0.0	%
Expected volatility factor (1)	26.8	%	-	32.6	%	26.1	%	-	34.1	%	27.3	%	-	34.2	%
Weighted average expected volatility				29.2	%				29.1	%				29.7	%
Risk-free interest rate (2)	1.5	%	-	2.4	%	1.7	%	-	3.0	%	0.7	%	-	2.3	%
Expected term (in years) (3)				4.6					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.

Restricted Stock Awards And Restricted Stock Unit Activity

Stock-Settled Market Stock Unit Activity

			Weighted
			Average
	Number of		Grant Date
(Units in thousands)	Units		Fair Value
Outstanding as of February 28, 2019	509		$	74.36
Stock units granted	131		$	98.67
Stock units vested and converted	(154	)	$	64.36
Stock units cancelled	(9	)	$	86.34
Outstanding as of February 29, 2020	477		$	84.05

Stock-Settled Market Stock Unit Information

	Years Ended February 29 or 28
	2020		2019		2018
Stock units granted	131,311		205,868		163,618
Weighted average grant date fair value per share	$	98.67	$	82.09	$	74.09
Realized tax benefits (in millions)	$	4.0	$	1.4	$	7.0

Cash-Settled Restricted Stock Unit Activity

			Weighted
			Average
	Number of		Grant Date
(Units in thousands)	Units		Fair Value
Outstanding as of February 28, 2019	1,609		$	58.00
Stock units granted	562		$	78.62
Stock units vested and converted	(505	)	$	52.05
Stock units cancelled	(109	)	$	65.58
Outstanding as of February 29, 2020	1,557		$	66.85

 Cash-Settled Restricted Stock Unit Information

	Years Ended February 29 or 28
	2020		2019		2018
Stock units granted	562,321		629,942		628,095
Initial weighted average grant date fair value per share	$	78.62	$	63.07	$	58.39
Payments (before payroll tax withholdings) upon
vesting (in millions)	$	37.8	$	21.0	$	26.6
Realized tax benefits (in millions)	$	10.5	$	5.8	$	10.2

Expected Cash Settlement Range Upon Restricted Stock Unit Vesting

Expected Cash Settlement Range Upon Restricted Stock Unit Vesting

	As of February 29, 2020
(In thousands)	Minimum (1)		Maximum (1)
Fiscal 2021	$	21,342	$	56,912
Fiscal 2022	23,470		62,586
Fiscal 2023	26,662		71,099
Total expected cash settlements	$	71,474	$	190,597

⁽¹⁾ 

Net of estimated forfeitures.