Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 124

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 124
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 pension expense.  In fiscal 2026, we anticipate that $0.4 million in estimated actuarial losses of the pension plan will be amortized from accumulated other comprehensive income.  Estimated actuarial losses to be amortized from accumulated other comprehensive income for the restoration plan are not expected to be significant. Benefit Obligations.  The accumulated benefit obligation (“ABO”) and PBO represent the obligations of the benefit plans for past service as of the measurement date.  ABO is the present value of benefits earned to date with benefits computed based on current service and compensation levels.  PBO is ABO increased to reflect expected future service and increased compensation levels.  As a result of the freeze of plan benefits under our pension and restoration plans, the ABO and PBO balances are equal to one another at all subsequent dates.

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Funding Policy.  For the pension plan, we contribute amounts sufficient to meet minimum funding requirements as set forth in the employee benefit and tax laws, plus any additional amounts as we may determine to be appropriate.  We expect to make no contributions to the pension plan in fiscal 2026.  We expect the pension plan to make benefit payments of approximately $8.1 million for each of the next three fiscal years, and $9.6 million for each of the subsequent two fiscal years.  For the non-funded restoration plan, we contribute an amount equal to the benefit payments, which we expect to be approximately $0.7 million for each of the next five fiscal years.Assumptions Used to Determine Benefit Obligations As of February 28 or 29 Pension PlanRestoration Plan 2025202420252024Discount rate5.45 %5.35 %5.45 %5.35 % Assumptions Used to Determine Net Pension Expense As of February 28 or 29 Pension PlanRestoration Plan 202520242023202520242023Discount rate5.35 %5.20 %3.45 %5.35 %5.20 %3.45 %Expected rate of return on plan assets7.00 %7.25 %7.50 %— %— %— %Assumptions.  Underlying both the calculation of the PBO and the net pension expense are actuarial calculations of each plan’s liability.  These calculations use participant-specific information such as