Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 111

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 111
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As of February 29, 2024Fiscal Year of Origination (1)(In millions)20242023202220212020Prior to 2020Total%  (2)Tier 1 managed receivables:A$3,922.7 $2,660.6 $1,635.1 $614.0 $268.7 $40.0 $9,141.1 52.6 B2,370.8 1,738.8 1,225.9 493.3 233.4 61.3 6,123.5 35.2 C and other344.1 498.6 400.3 192.2 86.6 26.9 1,548.7 8.9 Total Tier 1 managed receivables6,637.6 4,898.0 3,261.3 1,299.5 588.7 128.2 16,813.3 96.7 Tier 2 and Tier 3 managed receivables:C and other299.0 176.3 72.6 9.3 12.1 9.2 578.5 3.3 Total ending managed receivables$6,936.6 $5,074.3 $3,333.9 $1,308.8 $600.8 $137.4 $17,391.8 100.0 Gross charge-offs$111.0 $248.6 $129.8 $41.0 $19.7 $11.4 $561.5 (1)Classified based on credit grade assigned when customers were initially approved for financing.(2)Percent of total ending managed receivables. Allowance for Loan Losses.  The allowance for loan losses at February 28, 2025 represents the net credit losses expected over the remaining contractual life of our managed receivables.  The allowance for loan losses is determined using a net loss timing curve method (“method”), primarily based on the composition of the portfolio of managed receivables and historical gross loss and recovery trends.  Due to the fact that losses for receivables with less than 18 months of performance history can be volatile, our net loss estimate weights both historical losses by credit grade at origination and actual