Intangible Assets, Goodwill and Other

12 Months Ended

Feb. 28, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

GOODWILL AND INTANGIBLE ASSETS

Goodwill

We test goodwill for impairment annually as of December 1, or whenever events or circumstances indicate that the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level, which are determined in accordance with the provisions of ASC 350, Intangibles – Goodwill and Other. The goodwill acquired as part of the Edmunds acquisition was allocated to two of our reporting units – CarMax Sales Operations and Edmunds – with carrying values of $98.9 million and $42.4 million, respectively. No impairment was recognized in fiscal 2023 or fiscal 2022.

Intangibles

	As of February 28, 2023
	Gross Carrying		Accumulated		Net
(In thousands)	Amount		Amortization		Amount
Intangible assets not subject to amortization:
Trade name	$	31,900	$	—	$	31,900
Intangible assets subject to amortization:
Internally developed software	52,900		(13,225)		39,675
Customer relationships	133,200		(13,712)		119,488
Total intangible assets	$	218,000	$	(26,937)	$	191,063

	As of February 28, 2022
	Gross Carrying		Accumulated		Net
	Amount		Amortization		Amount
Intangible assets not subject to amortization:
Trade name	$	31,900	$	—	$	31,900
Intangible assets subject to amortization:
Internally developed software	52,900		(5,668)		47,232
Customer relationships	133,200		(5,876)		127,324
Total intangible assets	$	218,000	$	(11,544)	$	206,456

The intangible assets above relate to the acquisition of Edmunds on June 1, 2021 (see Note 2 for more information).

Amortization expense of intangible assets was $15.4 million in fiscal 2023 and $11.5 million in fiscal 2022.

We estimate that amortization expense related to intangible assets will be $15.4 million in each of the next five fiscal years.