Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 121

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 121
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.9 1.7 1.5 Credits(2.4)(1.5)(2.0)Effective income tax rate25.2 %25.3 %23.9 %

68

Temporary Differences Resulting in Deferred Tax Assets and Liabilities As of February 28 or 29(In thousands)20252024Deferred tax assets:  Accrued expenses and other$98,861 $93,690 Allowance for loan losses111,385 117,618 Prepaid expenses— 2,902 Net operating loss carryforwards and other tax attributes24,462 29,670 Operating lease liabilities136,190 139,124 Share-based compensation51,284 43,689 Capital loss carry forward766 701 Total deferred tax assets422,948 427,394 Less:  valuation allowance(766)(701)Total deferred tax assets after valuation allowance422,182 426,693 Deferred tax liabilities:  Intangibles39,317 43,060 Prepaid expenses11,810 — Property and equipment82,285 101,796 Operating lease assets123,520 130,181 Inventory11,924 18,933 Derivatives12,994 33,933 Total deferred tax liabilities281,850 327,903 Net deferred tax asset$140,332 $98,790 As of the fiscal year ended February 28, 2025, CarMax’s net operating loss carryforwards and other tax attributes include a deferred tax asset of $9.7 million related to U.S. federal tax credit carryforwards, which expire between 2025 and 2041; a deferred tax asset of $1.8 million related to state net operating loss carryforwards, which expire between 2025 and 2038; and a deferred tax asset of $13.1 million related to state tax credit carryforwards that have no expiration.Except for amounts for which a valuation allowance has been provided, we believe it is more likely than not that the results of future operations and the reversals of existing deferred taxable temporary differences will generate sufficient taxable income to realize the deferred tax assets.  The valuation allowance as of February 28, 2025 relates to capital loss carryforwards that are not more likely than not to be utilized prior to their expiration.Reconciliation of Unrecognized Tax Benefits Years Ended February 28 or