Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 108

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 108
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$1,441.5 8.8 Interest expense(763.2)(4.3)(638.7)(3.7)(310.3)(1.9)Total interest margin1,090.7 6.2 1,038.7 6.0 1,131.2 6.9 Provision for loan losses(334.7)(1.9)(310.5)(1.8)(317.0)(1.9)Total interest margin after provision for loan losses756.0 4.3 728.2 4.2 814.2 5.0 Direct expenses:Payroll and fringe benefit expense(75.9)(0.4)(66.5)(0.4)(62.8)(0.4)Depreciation and amortization(17.1)(0.1)(16.5)(0.1)(15.5)(0.1)Other direct expenses(81.3)(0.5)(76.9)(0.4)(72.4)(0.4)Total direct expenses(174.3)(1.0)(159.9)(0.9)(150.8)(0.9)CarMax Auto Finance income$581.7 3.3 $568.3 3.3 $663.4 4.1 Total average managed receivables$17,683.9 $17,313.2 $16,304.3  (1)    Percent of total average managed receivables.

4.    AUTO LOANS RECEIVABLE

Auto loans receivable include amounts due from customers related to retail vehicle sales financed through CAF and are presented net of an allowance for estimated loan losses.  These auto loans represent a large group of smaller-balance homogeneous loans, which we consider to be part of one class of financing receivable and one portfolio segment for purposes of determining our allowance for loan losses.  We generally use warehouse facilities to fund auto loans receivable originated by CAF until we elect to fund them through an asset-backed term funding transaction, such as a term securitization or alternative funding arrangement.  We recognize transfers of auto loans receivable into the warehouse facilities and asset-backed term funding transactions (together, “non-recourse funding vehicles”) as secured borrowings, which result in recording the auto loans receivable and the related non-recourse notes payable on our consolidated balance