Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 136

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 136
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, the binomial model considers characteristics of fair-value option pricing that are not available for consideration under a closed-form valuation model (for example, the Black-Scholes model), such as the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life and the probability of termination or retirement of the option holder.  For this reason, we believe that the binomial model provides a fair value that is more representative of actual experience and future expected experience than the value calculated using a closed-form model.  Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the recipients of share-based awards.Assumptions Used to Estimate Option Values Years Ended February 28 or 29 202520242023Dividend yield  0.0 %  0.0 %  0.0 %Expected volatility factor (1)  35.5 %-46.7 %39.2 %-45.9 %38.7 %-53.6 %Weighted average expected volatility  45.4 %  44.6 %  39.5 %Risk-free interest rate (2)3.5 %-5.4 %3.6 %-5.5 %0.4 %-4.7 %Expected term (in years) (3)    4.7  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.Cash-Settled Restricted Stock Unit Activity  Weighted  Average Number ofGrant Date(Units in thousands)UnitsFair ValueOutstanding as of February 29, 20241,297 $81.42 Stock units granted918 67.22 Stock units vested and converted(578)88.01 Stock units cancelled(113)72.01 Outstanding as of February 28, 20251,524 $71.07 

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Cash-Settled Restricted Stock Unit InformationYears Ended February 28 or 29202520242023Stock units granted918,098