SEGMENT INFORMATION
We operate in two reportable segments: CarMax Sales Operations and 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.
We also have a non-reportable operating segment related to our Edmunds business, which is reflected as “Other” in the segment tables below. Revenue generated by Edmunds primarily represents advertising and subscription revenues as discussed in Note 2. Edmunds also generates intersegment revenue as a result of transactions between Edmunds and CarMax Sales Operations, which represent arm’s length transactions at prevailing market prices. Such amounts are eliminated in consolidation.
The performance of our CarMax Sales Operations segment is reviewed by our chief operating decision maker at the gross profit level, the components of which are presented in the tables below. 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.
Segment Information


Year Ended February 29, 2024
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$26,400,256 $135,784 $— $26,536,040 
Intersegment sales and operating revenues— 34,779 (34,779)— 
Total sales and operating revenues$26,400,256 $170,563 $(34,779)$26,536,040 
Depreciation and amortization (1)
$1,614 $19,678 $— $21,292 
Gross profit $2,615,286 $102,544 $(4,621)$2,713,209 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income568,271 
Selling, general and administrative expenses(2,286,378)
Depreciation and amortization (2)
(239,028)
Interest expense(124,750)
Other income (expense)10,271 
Earnings before income taxes$641,595 


Year Ended February 28, 2023
(In thousands)CarMax Sales OperationsOtherEliminationsTotal
Sales and operating revenues$29,551,617 $133,256 $— $29,684,873 
Intersegment sales and operating revenues— 28,038 (28,038)— 
Total sales and operating revenues$29,551,617 $161,294 $(28,038)$29,684,873 
Depreciation and amortization (1)
$1,499 $14,263 $— $15,762 
Gross profit$2,704,398 $101,138 $(5,333)$2,800,203 
Reconciliation to Consolidated Earnings Before Taxes:
CAF Income663,404 
Selling, general and administrative expenses(2,487,357)
Depreciation and amortization (2)
(228,449)
Interest expense(120,398)
Other income (expense)9,401 
Earnings before income taxes$636,804 

(1)    Represents only the portion of depreciation and amortization recorded within Cost of sales, and thus included in the calculation of Gross profit.
(2)    Exclusive of depreciation and amortization recorded within Cost of sales.
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Historical Timeline

Fiscal YearFiled
2024Apr 15, 2024Showing above
2023Apr 13, 2023

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.