2018 Q4 Form 10-Q Financial Statement

#000117001019000004 Filed on January 08, 2019

View on sec.gov

Income Statement

Concept 2018 Q4 2017 Q4
Revenue $4.296B $4.107B
YoY Change 4.6% 10.95%
Cost Of Revenue $3.727B $3.568B
YoY Change 4.45% 11.55%
Gross Profit $569.2M $539.2M
YoY Change 5.57% 7.17%
Gross Profit Margin 13.25% 13.13%
Selling, General & Admin $409.5M $399.7M
YoY Change 2.46% 12.04%
% of Gross Profit 71.94% 74.12%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $45.30M $45.10M
YoY Change 0.44% 5.62%
% of Gross Profit 7.96% 8.36%
Operating Expenses $409.5M $399.7M
YoY Change 2.46% 12.04%
Operating Profit $159.7M $139.5M
YoY Change 14.48% -4.7%
Interest Expense $18.81M $17.41M
YoY Change 8.1% 15.49%
% of Operating Profit 11.78% 12.48%
Other Income/Expense, Net -$2.820M $279.0K
YoY Change -1110.75% -127.17%
Pretax Income $247.8M $225.2M
YoY Change 10.04% 2.52%
Income Tax $57.50M $76.36M
% Of Pretax Income 23.2% 33.91%
Net Earnings $190.3M $148.8M
YoY Change 27.86% 8.92%
Net Earnings / Revenue 4.43% 3.62%
Basic Earnings Per Share $1.09 $0.82
Diluted Earnings Per Share $1.09 $0.81
COMMON SHARES
Basic Shares Outstanding 173.8M shares 181.9M shares
Diluted Shares Outstanding 175.3M shares 184.0M shares

Balance Sheet

Concept 2018 Q4 2017 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $35.00M $26.00M
YoY Change 34.62% 8.33%
Cash & Equivalents $35.05M $26.29M
Short-Term Investments
Other Short-Term Assets $59.90M $53.30M
YoY Change 12.39% 28.91%
Inventory $2.425B $2.441B
Prepaid Expenses
Receivables $111.2M $95.84M
Other Receivables $0.00 $0.00
Total Short-Term Assets $3.057B $3.005B
YoY Change 1.75% 11.95%
LONG-TERM ASSETS
Property, Plant & Equipment $2.800B $2.634B
YoY Change 6.29% 7.56%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $182.2M $154.1M
YoY Change 18.26% 12.34%
Total Long-Term Assets $15.34B $14.30B
YoY Change 7.28% 9.35%
TOTAL ASSETS
Total Short-Term Assets $3.057B $3.005B
Total Long-Term Assets $15.34B $14.30B
Total Assets $18.40B $17.30B
YoY Change 6.32% 9.79%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $558.3M $520.0M
YoY Change 7.37% 9.07%
Accrued Expenses $280.1M $233.4M
YoY Change 20.01% 3.92%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $1.000M
YoY Change -100.0% 0.0%
Long-Term Debt Due $384.0M $358.0M
YoY Change 7.26% 10.84%
Total Short-Term Liabilities $1.225B $1.112B
YoY Change 10.18% 8.17%
LONG-TERM LIABILITIES
Long-Term Debt $13.49B $12.65B
YoY Change 6.66% 10.15%
Other Long-Term Liabilities $242.6M $239.7M
YoY Change 1.24% 3.11%
Total Long-Term Liabilities $242.6M $239.7M
YoY Change 1.24% 3.11%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.225B $1.112B
Total Long-Term Liabilities $242.6M $239.7M
Total Liabilities $14.96B $14.00B
YoY Change 6.85% 9.87%
SHAREHOLDERS EQUITY
Retained Earnings $2.147B $2.028B
YoY Change 5.88% 11.36%
Common Stock $85.89M $90.75M
YoY Change -5.35% -3.13%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.435B $3.301B
YoY Change
Total Liabilities & Shareholders Equity $18.40B $17.30B
YoY Change 6.32% 9.79%

Cashflow Statement

Concept 2018 Q4 2017 Q4
OPERATING ACTIVITIES
Net Income $190.3M $148.8M
YoY Change 27.86% 8.92%
Depreciation, Depletion And Amortization $45.30M $45.10M
YoY Change 0.44% 5.62%
Cash From Operating Activities $3.700M -$274.2M
YoY Change -101.35% -9.5%
INVESTING ACTIVITIES
Capital Expenditures -$72.20M -$72.50M
YoY Change -0.41% -28.15%
Acquisitions
YoY Change
Other Investing Activities $100.0K -$5.200M
YoY Change -101.92% -120.88%
Cash From Investing Activities -$72.10M -$77.60M
YoY Change -7.09% 2.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 38.50M 337.2M
YoY Change -88.58% 288.48%
NET CHANGE
Cash From Operating Activities 3.700M -274.2M
Cash From Investing Activities -72.10M -77.60M
Cash From Financing Activities 38.50M 337.2M
Net Change In Cash -29.90M -14.60M
YoY Change 104.79% -95.0%
FREE CASH FLOW
Cash From Operating Activities $3.700M -$274.2M
Capital Expenditures -$72.20M -$72.50M
Free Cash Flow $75.90M -$201.7M
YoY Change -137.63% -0.2%

Facts In Submission

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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
311519000 USD
CY2018Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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22236000 USD
us-gaap Increase Decrease In Finance Receivables
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879731000 USD
us-gaap Increase Decrease In Finance Receivables
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875269000 USD
us-gaap Increase Decrease In Inventories
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179988000 USD
us-gaap Increase Decrease In Inventories
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34006000 USD
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5422000 USD
us-gaap Increase Decrease In Other Current Assets
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348000 USD
us-gaap Increase Decrease In Other Operating Assets
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6734000 USD
us-gaap Increase Decrease In Other Operating Liabilities
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us-gaap Increase Decrease In Other Operating Liabilities
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217100000 USD
us-gaap Interest And Fee Income Loans And Leases
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637400000 USD
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247800000 USD
us-gaap Interest And Fee Income Loans And Leases
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722300000 USD
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17405000 USD
us-gaap Interest Expense
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51079000 USD
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18814000 USD
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54816000 USD
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us-gaap Interest Income Expense After Provision For Loan Loss
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381800000 USD
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131700000 USD
us-gaap Interest Income Expense After Provision For Loan Loss
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402400000 USD
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480800000 USD
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172500000 USD
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514100000 USD
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5800000 USD
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4800000 USD
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43200000 USD
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52200000 USD
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2424700000 USD
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8900000 USD
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26200000 USD
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9400000 USD
us-gaap Labor And Related Expense
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28600000 USD
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1224873000 USD
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99000 USD
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1917000 USD
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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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8046000 USD
us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
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4425000 USD
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us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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4425000 USD
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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175000 USD
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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5251000 USD
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298000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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175000 USD
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Before Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
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CY2017Q4 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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CY2018Q4 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
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4865000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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1740000 USD
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523000 USD
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0 USD
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us-gaap Payments To Acquire Investments
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us-gaap Payments To Acquire Investments
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5470000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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227559000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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243311000 USD
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1104000 USD
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96000 USD
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680000 USD
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us-gaap Provision For Loan Lease And Other Losses
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CY2017Q4 us-gaap Revenues
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us-gaap Revenues
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us-gaap Revenues
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us-gaap Selling General And Administrative Expense
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us-gaap Selling General And Administrative Expense
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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CY2018Q1 us-gaap Short Term Bank Loans And Notes Payable
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436000 USD
CY2018Q1 us-gaap Standard Product Warranty Accrual
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6100000 USD
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6400000 USD
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3435113000 USD
CY2018Q1 us-gaap Trading Securities
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19116000 USD
CY2018Q1 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
24239000 USD
CY2018Q4 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
24100000 USD
CY2018Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
28700000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
31900000 USD
CY2017Q1 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
108200000 USD
CY2017Q3 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
109800000 USD
CY2017Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
109200000 USD
CY2018Q1 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
105200000 USD
CY2018Q3 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
110600000 USD
CY2018Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
109700000 USD
CY2017Q4 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
16300000 USD
us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
50800000 USD
CY2018Q4 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
16300000 USD
us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
55000000 USD
CY2017Q4 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
16900000 USD
us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
49800000 USD
CY2018Q4 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
17200000 USD
us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
50500000 USD
CY2017Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
184033000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
185201000 shares
CY2018Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
175321000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
177656000 shares
CY2017Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
181888000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
183324000 shares
CY2018Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
173816000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
176088000 shares
us-gaap Basis Of Accounting
BasisOfAccounting
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Basis of Presentation and Use of Estimates. </font><font style="font-family:inherit;font-size:10pt;">The accompanying interim unaudited consolidated financial statements include the accounts of CarMax and our wholly owned subsidiaries.&#160;&#160;All significant intercompany balances and transactions have been eliminated in consolidation.&#160;&#160;These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (&#8220;GAAP&#8221;) for interim financial information.&#160;&#160;Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.&#160;&#160;In the opinion of management, such interim consolidated financial statements reflect all normal recurring adjustments considered necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented.&#160;&#160;The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.&#160;&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accounting policies followed in the presentation of our interim financial results are consistent with those included in the company's Annual Report on Form 10-K for the fiscal year ended </font><font style="font-family:inherit;font-size:10pt;">February&#160;28, 2018</font><font style="font-family:inherit;font-size:10pt;"> (the &#8220;2018 Annual Report&#8221;), with the exception of those related to recent accounting pronouncements adopted in the current fiscal year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in our 2018 Annual Report.</font></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Business. </font><font style="font-family:inherit;font-size:10pt;">CarMax, Inc. (&#8220;we,&#8221; &#8220;our,&#8221; &#8220;us,&#8221; &#8220;CarMax&#8221; and &#8220;the company&#8221;), including its wholly owned subsidiaries, is the largest retailer of used vehicles in the United States.&#160;We operate in </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> reportable segments:&#160;&#160;CarMax Sales Operations and CarMax Auto Finance (&#8220;CAF&#8221;).&#160;&#160;Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF.&#160;&#160;Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We deliver an unrivaled customer experience by offering a broad selection of high quality used vehicles and related products and services at low, no-haggle prices using a customer-friendly sales process in an attractive, modern sales facility, as well as through carmax.com and our mobile apps.&#160;&#160;We provide customers with a range of related products and services, including the appraisal and purchase of vehicles directly from consumers; the financing of retail vehicle purchases through CAF and third-party finance providers; the sale of extended protection plan (&#8220;EPP&#8221;) products, which include extended service plans (&#8220;ESPs&#8221;) and guaranteed asset protection (&#8220;GAP&#8221;); and vehicle repair service.&#160;&#160;Vehicles purchased through the appraisal process that do not meet our retail standards are sold to licensed dealers through on-site wholesale auctions.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities.&#160;&#160;Actual results could differ from those estimates.&#160; Certain prior year amounts have been reclassified to conform to the current year&#8217;s presentation.&#160; Amounts and percentages may not total due to rounding.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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