Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 117

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 117
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 exposures are with highly rated bank counterparties.We measure derivative fair values assuming that the unit of account is an individual derivative instrument and that derivatives are sold or transferred on a stand-alone basis.  We estimate the fair value of our derivatives using quotes determined by the derivative counterparties and third-party valuation services.  Quotes from third-party valuation services and quotes received from bank counterparties project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates and the contractual terms of the derivative instruments.  The models do not require significant judgment and model inputs can typically be observed in a liquid market; however, because the models include inputs other than quoted prices in active markets, all derivatives are classified as Level 2.Our derivative fair value measurements consider assumptions about counterparty and our own nonperformance risk.  We monitor counterparty and our own nonperformance risk and, in the event that we determine that a party is unlikely to perform under terms of the contract, we would adjust the derivative fair value to reflect the nonperformance risk.Items Measured at Fair Value on a Recurring Basis As of February 28, 2025(In thousands)Level 1Level 2TotalAssets:   Money market securities$842,691 $— $842,691 Mutual fund investments27,495 — 27,495 Derivative instruments designated as hedges— 10,813 10,813 Derivative instruments not designated as hedges— 1,576 1,576 Total assets at fair value$870,186 $12,389 $882,575 Percent of total assets at fair value98.6 %1.4 %100.0 %Percent of total assets3.2 %— %3.2 %Liabilities:   Derivative instruments designated as hedges$— $(8,728)$(8,728)Total liabilities at fair value$— $(8,728)$(8,728)Percent of total liabilities— %— %— % As of February 29, 2024(In thousands)Level 1Level 2TotalAssets:   Money market securities$1,164,270 $— $1,164,270 Mutual fund investments24,312 — 24,312 Derivative instruments designated as hedges— 45,761 45,761 Derivative instruments not designated as hedges—