Stock and Stock-Based Incentive Plans (Tables)

3 Months Ended

May 31, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Schedule of Common Stock Repurchases

Common Stock Repurchases

	Three Months Ended
	May 31
	2022		2021
Number of shares repurchased (in thousands)	1,644.4		997.6
Average cost per share	$	95.83	$	124.83
Available for repurchase, as of end of period (in millions)	$	2,616.9	$	1,211.5

Composition of Share-Based Compensation Expense

Composition of Share-Based Compensation Expense

	Three Months Ended
	May 31
(In thousands)	2022		2021
Cost of sales	$	240	$	1,729
CarMax Auto Finance income	708		1,708
Selling, general and administrative expenses	22,236		38,420
Share-based compensation expense, before income taxes	$	23,184	$	41,857

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)	2022		2021
Nonqualified stock options	$	11,212	$	11,821
Cash-settled restricted stock units (RSUs)	849		20,972
Stock-settled market stock units (MSUs)	5,347		4,845
Other share-based incentives:
Stock-settled performance stock units (PSUs)	4,691		3,394
Restricted stock (RSAs)	344		42
Employee stock purchase plan	741		783
Total other share-based incentives	$	5,776	$	4,219
Share-based compensation expense, before income taxes	$	23,184	$	41,857

Unrecognized Share-Based Compensation Expense – By Grant Type

	As of May 31, 2022
			Weighted Average
	Unrecognized		Remaining
	Compensation		Recognition Life
(Costs in millions)	Costs		(Years)
Nonqualified stock options	$	76.8	2.4
Stock-settled market stock units	24.5		1.8
Other share-based incentives:
Stock-settled performance stock units	4.4		2.3
Restricted stock	1.4		1.0
Total other share-based incentives	5.8		2.0
Total	$	107.1	2.2

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 28, 2022	5,796	$	79.66
Options granted	1,264	$	91.14
Options exercised	(49)	$	70.25
Options forfeited or expired	(39)	$	95.00
Outstanding as of May 31, 2022	6,972	$	81.72	4.5	$	155,771
Exercisable as of May 31, 2022	4,134	$	72.55	3.5	$	120,988

Stock Option Information

	Three Months Ended May 31
	2022		2021
Options granted	1,263,797		917,455
Weighted average grant date fair value per share	$	33.32	$	42.33
Cash received from options exercised (in millions)	$	3.4	$	21.6
Intrinsic value of options exercised (in millions)	$	1.2	$	28.0
Realized tax benefits (in millions)	$	0.3	$	6.9

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

Assumptions Used to Estimate Option Values

	Three Months Ended May 31
	2022					2021
Dividend yield				0.0	%				0.0	%
Expected volatility factor (1)	38.7	%	-	45.4	%	31.8	%	-	37.0	%
Weighted average expected volatility				39.4	%				36.2	%
Risk-free interest rate (2)	0.4	%	-	3.0	%	—	%	-	1.3	%
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 28, 2022	1,163	$	93.37
Stock units granted	660	$	91.14
Stock units vested and converted	(734)	$	85.33
Stock units cancelled	(23)	$	98.56
Outstanding as of May 31, 2022	1,066	$	97.42

Cash-Settled Restricted Stock Unit Information

	Three Months Ended May 31
	2022		2021
Stock units granted	660,085		361,115
Initial weighted average grant date fair value per share	$	91.14	$	136.94
Payments (before payroll tax withholdings) upon vesting (in millions)	$	65.2	$	89.8
Realized tax benefits (in millions)	$	15.9	$	24.6

Stock-Settled Market Stock Unit Activity

		Weighted
		Average
	Number of	Grant Date
(Units in thousands)	Units	Fair Value
Outstanding as of February 28, 2022	393	$	112.17
Stock units granted	132	$	126.59
Stock units vested and converted	(119)	$	98.43
Stock units cancelled	(5)	$	124.75
Outstanding as of May 31, 2022	401	$	120.80

Stock-Settled Market Stock Unit Information

	Three Months Ended May 31
	2022		2021
Stock units granted	131,701		80,910
Weighted average grant date fair value per share	$	126.59	$	178.31
Realized tax benefits (in millions)	$	3.0	$	10.9

Expected Cash Settlement Range Upon Cash Settled Restricted Stock Unit Vesting

Expected Cash Settlement Range Upon Restricted Stock Unit Vesting

	As of May 31, 2022
(In thousands)	Minimum (1)		Maximum (1)
Fiscal 2024	$	31,010	$	82,692
Fiscal 2025	23,209		61,890
Fiscal 2026	12,724		33,930
Total expected cash settlements	$	66,943	$	178,512

(1)Net of estimated forfeitures.