Stock and Stock-Based Incentive Plans (Tables)

3 Months Ended

May 31, 2020

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Common Stock Repurchases

Common Stock Repurchases

	Three Months Ended
	May 31
	2020		2019
Number of shares repurchased (in thousands)	515.5		2,953.1
Average cost per share	$	78.96	$	69.35
Available for repurchase, as of end of period (in millions)	$	1,511.6	$	1,909.1

Composition of Share-Based Compensation Expense

Composition of Share-Based Compensation Expense

	Three Months Ended
	May 31
(In thousands)	2020		2019
Cost of sales	$	679	$	2,825
CarMax Auto Finance income	1,270		1,805
Selling, general and administrative expenses	23,651		40,893
Share-based compensation expense, before income taxes	$	25,600	$	45,523

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)	2020		2019
Nonqualified stock options	$	11,619	$	11,842
Cash-settled restricted stock units (RSUs)	7,405		26,113
Stock-settled market stock units (MSUs)	5,846		4,409
Other share-based incentives:
Stock-settled performance stock units (PSUs)	153		2,209
Restricted stock (RSAs)	34		—
Stock-settled deferred stock units (DSUs)	—		452
Employee stock purchase plan	543		498
Total other share-based incentives	$	730	$	3,159
Share-based compensation expense, before income taxes	$	25,600	$	45,523

Unrecognized Share-­Based Compensation Expense – By Grant Type

	As of May 31, 2020
			Weighted Average
	Unrecognized		Remaining
	Compensation		Recognition Life
(Costs in millions)	Costs		(Years)
Nonqualified stock options	$	62.4	2.8
Stock-settled market stock units	23.9		1.9
Other share-based incentives:
Stock-settled performance stock units	0.9		1.9
Stock-settled deferred stock units	—		—
Restricted stock	0.3		2.6
Total other share-based incentives	1.2		0.8
Total	$	87.5	2.5

Share-based Payment Arrangement, Option, 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 29, 2020	6,994		$	64.85
Options granted	1,571		$	71.07
Options exercised	(35	)	$	48.15
Options forfeited or expired	(19	)	$	69.84
Outstanding as of May 31, 2020	8,511		$	66.06	4.6	$	187,179
Exercisable as of May 31, 2020	4,562		$	62.39	3.5	$	117,074

Stock Option Information

	Three Months Ended May 31
	2020		2019
Options granted	1,570,889		1,574,735
Weighted average grant date fair value per share	$	22.61	$	22.08
Cash received from options exercised (in millions)	$	1.7	$	33.3
Intrinsic value of options exercised (in millions)	$	0.9	$	19.4
Realized tax benefits (in millions)	$	0.2	$	5.3

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

Assumptions Used to Estimate Option Values

	Three Months Ended May 31
	2020					2019
Dividend yield				0.0	%				0.0	%
Expected volatility factor (1)	36.1	%	-	56.1	%	27.3	%	-	29.5	%
Weighted average expected volatility				38.3	%				29.3	%
Risk-free interest rate (2)	0.1	%	-	0.5	%	2.3	%	-	2.4	%
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.

Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, 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 29, 2020	1,557		$	66.85
Stock units granted	669		$	71.07
Stock units vested and converted	(491	)	$	58.46
Stock units cancelled	(17	)	$	68.94
Outstanding as of May 31, 2020	1,718		$	70.86

 Cash-Settled Restricted Stock Unit Information

	Three Months Ended May 31
	2020		2019
Stock units granted	669,053		562,586
Initial weighted average grant date fair value per share	$	71.07	$	78.61
Payments (before payroll tax withholdings) upon vesting (in millions)	$	34.8	$	36.5
Realized tax benefits (in millions)	$	9.4	$	10.0

Stock-Settled Market Stock Unit Activity

			Weighted
			Average
	Number of		Grant Date
(Units in thousands)	Units		Fair Value
Outstanding as of February 29, 2020	477		$	84.05
Stock units granted	195		$	93.11
Stock units vested and converted	(144	)	$	73.58
Stock units cancelled	(5	)	$	90.63
Outstanding as of May 31, 2020	523		$	90.24

Stock-Settled Market Stock Unit Information

	Three Months Ended May 31
	2020		2019
Stock units granted	194,766		128,376
Weighted average grant date fair value per share	$	93.11	$	98.43
Realized tax benefits (in millions)	$	3.0	$	3.8

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, 2020
(In thousands)	Minimum (1)		Maximum (1)
Fiscal 2022	$	33,150	$	88,399
Fiscal 2023	36,187		96,500
Fiscal 2024	9,638		25,700
Total expected cash settlements	$	78,975	$	210,599

⁽¹⁾  Net of estimated forfeitures.