Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 129

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 129
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 of non-recourse notes payable represents principal payments that are due to be distributed in the following period.Notes payable related to our asset-backed term funding transactions accrue interest predominantly at fixed rates and have scheduled maturities through June 2032, but may mature earlier, depending upon the repayment rate of the underlying auto loans receivable.

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Information on our funding vehicles of non-recourse notes payable as of February 28, 2025 are as follows:(In billions)CapacityWarehouse facilities:March 2025 expiration$3.10 April 2025 expiration0.70 August 2025 expiration2.30 Combined warehouse facility limit$6.10 Unused capacity$2.22 Non-recourse notes payable outstanding:Warehouse facilities$3.88 Asset-backed term funding transactions13.24 Non-recourse notes payable$17.12 We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually.  In March 2025, the $3.10 billion facility was extended with an expiration date of March 2026.  The return requirements of warehouse facility investors could fluctuate significantly depending on market conditions.  At renewal, the cost, structure and capacity of the facilities could change.  These changes could have a significant impact on our funding costs.In June 2024, we entered into a $625 million asset-backed term funding transaction related to our new non-prime securitization program.  During the remainder of fiscal 2025, we entered into a total of $4.3 billion in asset-backed term funding transactions comprised of higher prime auto loans receivable.  Going forward, we plan to continue utilizing separate asset-backed securitization programs to more broadly incorporate funding of CAF’s receivables across distinct higher prime and non-prime segments.  We believe this two-program strategy will enable us to fund incremental originations and support future CAF growth across the credit spectrum by creating additional funding capacity, driving additional finance income for the business over time.See Notes 1(F) and 4 for additional information on the related auto loans receivable.Capitalized Interest.  We capitalize interest in connection with the construction of certain facilities.  For fiscal 2025, fiscal 2024 and fiscal 2023, we capitalized interest of $8.2 million, $6.2 million, and $5.6 million, respectively.Financial Covenants.  The credit facility,