Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 113

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 113
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 2 & Tier 3Total%  (1)Balance as of beginning of year$401.5 $105.7 $507.2 3.02 Charge-offs(471.6)(89.9)(561.5)Recoveries (2)197.3 29.3 226.6 Provision for loan losses262.5 48.0 310.5 Balance as of end of year$389.7 $93.1 $482.8 2.78 (1)Percent of total ending managed receivables.(2)Net of costs incurred to recover vehicle.During fiscal 2025, the allowance for loan losses as a percent of total ending managed receivables decreased by 17 basis points.  The decrease was primarily driven by the previously implemented tightened underwriting standards, partially offset by unfavorable loss performance related to CAF’s Tier 1 receivables as well as CAF’s expanded investment in Tier 2.  The allowance for loan losses as of February 28, 2025 reflects our best estimate of expected future losses based on recent trends in delinquencies, loss performance, recovery rates and the economic environment.Past Due Receivables.  An account is considered delinquent when the related customer fails to make a substantial portion of a scheduled payment on or before the due date.  In general, accounts are charged-off on the last business day of the month during which the earliest of the following occurs:  the receivable is 120 days or more delinquent as of the last business day of the month, the related vehicle is repossessed and liquidated, or the receivable is otherwise deemed uncollectable.  For purposes of determining impairment, auto loans are evaluated collectively, as they represent a large group of smaller-balance homogeneous loans, and therefore, are not individually evaluated for impairment.Past Due ReceivablesAs of February 28, 2025Tier 1 ReceivablesTier 2 & Tier 3 ReceivablesTotal(In millions)ABC & OtherTotalC & Other$%  (1)Current$9,543.3 $5,491.5 $1,164.7 $16,199.5 $541.2 $16,740.7 95.15 Delinquent loans:31-60 days past due36.7 276.0 139.3 452.0 71