Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 128

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 128
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87% in fiscal 2023.Term Loans.  The $300 million term loan was paid in May 2024.  Borrowings under the $700 million term loan are available for working capital and general corporate purposes.  The interest rate on our term loans was 5.33%, 6.31% and 5.47% as of February 28, 2025, February 29, 2024 and February 28, 2023, respectively.  The $700 million term loan was classified as long-term debt as no repayments are scheduled to be made within the next 12 months.Senior Notes.  Borrowings under our unsecured senior notes totaling $400 million are available for working capital and general corporate purposes.  As of February 28, 2025, all notes were classified as long-term debt as no repayments are scheduled to be made within the next 12 months. Financing Obligations.  Financing obligations relate to stores subject to sale-leaseback transactions that do not qualify for sale accounting.  The financing obligations were structured at varying interest rates and generally have initial lease terms ranging from 15 to 20 years with payments made monthly.  We have not entered into any new sale-leaseback transactions since fiscal 2009.  In the event the agreements are modified or extended beyond their original term, the related obligation is adjusted based on the present value of the revised future payments, with a corresponding change to the assets subject to these transactions.  Upon modification, the amortization of the obligation is reset, resulting in more of the payments being applied to interest expense in the initial years following the modification. Future maturities of financing obligations were as follows:(In thousands)As of February 28, 2025Fiscal 2026$56,148 Fiscal 202755,887 Fiscal 202855,497 Fiscal 202957,326 Fiscal 203050,660 Thereafter681,352 Total payments956,870 Less: interest(469,194)Present value of financing obligations$487,676 Non-Recourse Notes Payable.  The non-recourse notes payable relate to auto loans receivable funded through non-recourse funding vehicles.  The timing of principal payments on the non-recourse notes payable is based on the timing of principal collections and defaults on the related auto loans receivable.  The current portion