Stock and Stock-Based Incentive Plans Stock And Stock-Based Incentive Plans

6 Months Ended

Aug. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock and Stock-Based Incentive Plans

Stock and Stock-Based Incentive Plans

(A) Share Repurchase Program

As of August 31, 2020, a total of $2.0 billion of board authorizations for repurchases of our common stock was outstanding, with no expiration date, of which $1.51 billion remained available for repurchase. In March 2020, our current stock repurchase program was suspended. The repurchase authorization remained effective and the program resumed in September 2020. 

Common Stock Repurchases

	Three Months Ended				Six Months Ended
	August 31				August 31
	2020		2019		2020		2019
Number of shares repurchased (in thousands)	—		1,525.5		515.5		4,478.6
Average cost per share	$	—	$	84.13	$	78.96	$	74.38
Available for repurchase, as of end of period (in millions)	$	1,511.6	$	1,780.8	$	1,511.6	$	1,780.8

(B)Share-Based Compensation

Composition of Share-Based Compensation Expense

	Three Months Ended				Six Months Ended
	August 31				August 31
(In thousands)	2020		2019		2020		2019
Cost of sales	$	2,512	$	1,340	$	3,191	$	4,165
CarMax Auto Finance income	1,542		1,044		2,812		2,849
Selling, general and administrative expenses	34,301		21,903		57,952		62,796
Share-based compensation expense, before income taxes	$	38,355	$	24,287	$	63,955	$	69,810

Composition of Share-Based Compensation Expense – By Grant Type

	Three Months Ended				Six Months Ended
	August 31				August 31
(In thousands)	2020		2019		2020		2019
Nonqualified stock options	$	6,988	$	6,321	$	18,607	$	18,163
Cash-settled restricted stock units (RSUs)	25,169		13,105		32,574		39,218
Stock-settled market stock units (MSUs)	3,509		3,052		9,355		7,461
Other share-based incentives:
Stock-settled performance stock units (PSUs)	113		(576)		266		1,633
Restricted stock (RSAs)	33		—		67		—
Stock-settled deferred stock units (DSUs)	1,925		1,960		1,925		2,412
Employee stock purchase plan	618		425		1,161		923
Total other share-based incentives	$	2,689	$	1,809	$	3,419	$	4,968
Share-based compensation expense, before income taxes	$	38,355	$	24,287	$	63,955	$	69,810

(C) Stock Incentive Plan Information

Share/Unit Activity

	Six Months Ended August 31, 2020
	Equity Classified						Liability Classified
(Shares/units in thousands)	Options		MSUs		Other		RSUs
Outstanding as of February 29, 2020	6,994		477		130		1,557
Granted	1,571		195		22		669
Exercised or vested and converted	(1,438)		(144)		(69)		(505)
Cancelled	(14)		(3)		—		(53)
Outstanding as of August 31, 2020	7,113		525		83		1,668
Weighted average grant date fair value per share/unit:
Granted	$	22.61	$	93.11	$	86.58	$	71.07
Ending outstanding	$	19.35	$	90.24	$	81.65	$	70.86
	As of August 31, 2020
Unrecognized compensation (in millions)	$	55.4	$	20.5	$	1.1