Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 104

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 104
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ASU 2024-03) related to expense disclosures.  The amendments in this update require public entities to provide disaggregated disclosure of expenses included within relevant income statement expense captions, as well as additional disclosures about selling expenses.  This update is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.  We plan to adopt this pronouncement beginning with our fiscal year ended February 29, 2028.  We are currently in the process of evaluating the effects of this pronouncement on our consolidated financial statements.In November 2024, the FASB issued an accounting pronouncement (ASU 2024-04) related to induced conversions of convertible debt instruments.  The amendments in this update clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions rather than as debt extinguishments.  This update is effective for annual periods beginning after December 15, 2025, including interim periods within those fiscal 

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years, though early adoption is permitted.  We plan to adopt this pronouncement for our fiscal year beginning March 1, 2026, and we do not expect it to have a material effect on our consolidated financial statements.

2.    REVENUE

We recognize revenue when control of the good or service has been transferred to the customer, generally either at the time of sale or upon delivery to a customer.  Our contracts have a fixed contract price and revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services.  We collect sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale.  These taxes are accounted for on a net basis and are not included in net sales and operating revenues or cost of sales.  We generally expense sales commissions when incurred because the amortization period would have been less than one year.  These costs are recorded within selling, general and administrative expenses.  We do not have any significant payment terms as payment is received at or shortly after the point of sale.Disaggregation of RevenueYears Ended February 28 or 29(In millions)202520242023Used vehicle sales$21,079.7 $20,922.3 $23,034.3 Wholesale vehicle sales4,587.5 4,975.8 5,989.8 Other sales and revenues:Extended protection plan revenues451.7 401.