Stock and Stock-Based Incentive Plans

9 Months Ended

Nov. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

(A)Share Repurchase Program

During the third quarter of fiscal 2024, we resumed our share repurchase program after having paused it during the third quarter of fiscal year 2023. As of November 30, 2023, a total of $4.0 billion of board authorizations for repurchases of our common stock was outstanding, with no expiration date, of which $2.41 billion remained available for repurchase.

Common Stock Repurchases


	Three Months Ended				Nine Months Ended
	November 30				November 30
	2023		2022		2023		2022
Number of shares repurchased (in thousands)	648.5		30.0		648.5		3,403.9
Average cost per share	$	64.60	$	87.70	$	64.60	$	94.95
Available for repurchase, as of end of period (in millions)	$	2,409.4	$	2,451.3	$	2,409.4	$	2,451.3

(B)Share-Based Compensation

Composition of Share-Based Compensation Expense


	Three Months Ended				Nine Months Ended
	November 30				November 30
(In thousands)	2023		2022		2023		2022
Cost of sales	$	692	$	333	$	3,277	$	1,474
CarMax Auto Finance income	1,016		981		2,663		1,394
Selling, general and administrative expenses	19,918		17,213		86,516		63,983
Share-based compensation expense, before income taxes	$	21,626	$	18,527	$	92,456	$	66,851

Composition of Share-Based Compensation Expense – By Grant Type


	Three Months Ended				Nine Months Ended
	November 30				November 30
(In thousands)	2023		2022		2023		2022
Nonqualified stock options	$	12,334	$	8,968	$	40,061	$	29,648
Cash-settled restricted stock units (RSUs)	5,306		5,167		33,221		15,521
Stock-settled market stock units (MSUs)	3,531		3,358		13,639		12,234
Other share-based incentives:
Stock-settled performance stock units (PSUs)	(137)		209		1,401		5,150
Restricted stock (RSAs)	—		262		307		571
Stock-settled deferred stock units (DSUs)	—		—		1,850		1,850
Employee stock purchase plan	592		563		1,977		1,877
Total other share-based incentives	$	455	$	1,034	$	5,535	$	9,448
Share-based compensation expense, before income taxes	$	21,626	$	18,527	$	92,456	$	66,851

(C)Stock Incentive Plan Information

Share/Unit Activity


	Nine Months Ended November 30, 2023
	Equity Classified						Liability Classified
(Shares/units in thousands)	Options		MSUs		Other		RSUs
Outstanding as of February 28, 2023	6,776		404		130		1,004
Granted	1,549		186		76		914
Exercised or vested and converted	(476)		(187)		(11)		(489)
Cancelled	(175)		(19)		—		(96)
Outstanding as of November 30, 2023	7,674		384		195		1,333

Weighted average grant date fair value per share/unit:

Granted	$	29.10	$	99.81	$	74.31	$	70.68
Ending outstanding	$	26.90	$	123.67	$	88.70	$	81.34


	As of November 30, 2023
Unrecognized compensation (in millions)	$	54.2	$	19.6	$	0.8