Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 95

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 95
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 and BackgroundCarMax, Inc. (“we,” “our,” “us,” “CarMax” and “the company”), including its wholly owned subsidiaries, is the nation’s largest retailer of used vehicles.  We operate in two reportable segments:  CarMax Sales Operations and CarMax Auto Finance (“CAF”).  Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF.  Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax.  On June 1, 2021, we completed the acquisition of Edmunds Holding Company (“Edmunds”).  At that time, Edmunds was identified as a non-reportable operating segment and has been presented as “Other” in the Segment Information footnote in our prior period financial statements.  Since the acquisition, Edmunds’ business strategy has become increasingly integrated with that of CarMax Sales Operations.  Beginning in the first quarter of fiscal 2025, the chief operating decision maker (“CODM”) assessed the financial performance related to Edmunds’ operations together with the rest of the CarMax Sales Operations segment.  As a result, as of May 31, 2024, the company realigned its operating segments to be consistent with the manner in which the CODM assesses performance and makes resource allocations.  The company now operates in two operating segments, CarMax Sales Operations and CAF, both of which continue to be reportable segments.The operating segment change did not impact the company’s consolidated financial statements but did impact our previous segment footnote disclosure.  The Segment Information footnote is no longer presented, as the previous disclosures were for the purpose of presenting the Edmunds operating segment separate from CarMax Sales Operations.  The current and prior period required disclosures related to our reportable segments are included elsewhere within the consolidated financial statements and related footnotes.  The chief executive officer, who serves as the company’s CODM, reviews the performance of our CarMax Sales Operations segment at the gross profit level, the components of which are presented within the consolidated statements of earnings.  The CODM uses gross profit to assess financial performance, monitor forecasted versus actual results and adjust pricing strategy.  The required segment information related to our CAF segment is presented in Note 3.  Additionally, asset information by segment is not utilized for purposes of assessing performance or allocating resources and, as a result, such information has not been presented.We deliver an unriv