CarMax

Largest retailer of used vehicles.

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Headquarters:
4900 Cox Road
Glen Allen, VA 23060
Employees: 15,249
CEO: Tom Folliard
Stock Symbol: KMX

Website: http://www.carmax.com

Career Site

CarMax is one of the nation's largest retailers of used and new automobiles. The company has 103 used car superstores in 49 markets. It also owns six new car franchises.

The company says more than 60% of used vehicle sales are made initially through the Carmax.com website.

All used cars sold at CarMax undergo a certified quality inspection. All cars are backed with a five-day Money-Back Guarantee and limited 30-day warranty.

During the twelve months ended February 29, 2008, Carmax retailed 377,244 used cars and sold 222,406 wholesale vehicles at our in-store auctions.

CarMax has now sold more than 2 million new and used vehicles since 1993.

For fiscal 2008, CarMax reported $8.2 billion in revenues and net income of $182 million.

The company announced in October it would lay off 610 employees, or 4% of its workforce, due to slower sales. The reductions are being made in a majority of the company's production superstores, where vehicles are reconditioned.

History

The first CarMax superstore opened in 1993 in Richmond, VA and was a spinoff of Circuit City. CarMax was officially separated from Circuit City with its own stock in 2002.

Benefits

Health Care Plan
Our Health Care Plan provides comprehensive coverage for full-time Associates and their eligible dependents. The cost of the coverage is shared between CarMax and the Associate, and contributions are made on a pre-tax basis.

Associates may enroll in the Empire BlueCross BlueShield Preferred Provider Plan (PPO), a custom-designed plan that uses the BlueCross and BlueShield networks nationwide. The plan features office visit copayments, preventive care, and in-and out-of-network coverage. Our plan also includes automatic enrollment in a prescription drug program that offers prescription copayments and a mail order pharmacy.

Dental Care Plan
Our Dental Care Plan covers preventive, basic, and major services for Associates and their eligible dependents. The cost of the coverage is shared between CarMax and the Associate, and contributions are made on a pre-tax basis.

The Dental Care Plan allows participants to see any dentist they wish. However, there is a network of dentists who offer a reduced fee schedule for services. Out-of-network benefits are paid based on reasonable and customary limits. Preventive care is 100% covered up to the reasonable and customary limit as determined by the provider. There is an annual deductible applicable to basic and major services and an annual benefit maximum.

401(K) Plan
The 401(k) Plan provides an individual account through which an Associate can save money for the future. Associates can contribute up to 40% of pre-tax pay. CarMax makes a matching contribution of $0.25 to the account at the end of the Plan Year for every dollar Associates contribute, up to 5% of pay. The 401(k) Plan is administered by American Express Retirement Services. Participants also benefit from tax-deferred savings and a reduction in income taxes. Twelve funds are available for investment of contributions.

Life Insurance
CarMax offers Company-paid Basic Life Insurance. CarMax also offers options for Supplemental Life, Spousal Life, Child Life and Accidental Death & Dismemberment Insurance that Associates may elect to participate in through payroll deductions.

Stock Purchase Plan
CarMax offers an Employee Stock Purchase Plan through which Associates may purchase CarMax Common Stock through payroll deductions. Associates can contribute up to 10% of pay. The Company provides a matching contribution equal to 15% of the Associate's contribution. Stock is purchased each month at the current market price. Associates may join the Plan on the first of any month once they meet the eligibility requirements.

Short & Long Term Disability
Our Short Term Disability (STD) Plan provides salary continuation during absences due to illness, injury, or pregnancy. Benefits are based on length of service, job classification, and earnings. CarMax pays the entire cost and all Associates are automatically covered by the plan when eligible.

Our Long Term Disability (LTD) Plan provides salary continuation for disabilities extending beyond 180 continuous days of absence. Participating Associates pay the cost of the plan through contributions after taxes are calculated. Tax-free LTD benefits are approximately 60% of earnings less Social Security, Workers' Compensation, and any other work-related benefits. Benefits are generally payable to age 65 if the Associate continues to meet the definition of disabled.

Associate Discount Program
Associates may purchase vehicles, MaxCare coverage, accessories, and parts and service at discounts for personal use or use by any person who lives in the same household as the Associate, whether or not they are related to the Associate. Associates are eligible to participate in the Associate Discount Program after 30 days of employment.

Retirement (Pension) Plan
CarMax sponsors a Retirement Plan that provides benefits at retirement based on earnings and length of service. The Company pays the full cost of the Plan. Associates receive one year of vesting service for each Plan Year in which they receive pay for 1,000 or more hours. Associates become 100% vested once they have earned five years of vesting service. Retirement benefits start at age 65. Early Retirement benefits are available to Associates who retire at age 55 with 10 years of vesting service, or age 62 with 7 years of vesting service.

Dependent Care Spending Account
The Dependent Care Spending Account (DCSA) allows eligible Associates to set aside a portion of their paychecks for expenses relating to daycare on a pre-tax basis.

Paid Vacation and Sick Leave
CarMax encourages Associates to have time away from work for rest, relaxation, and illness. CarMax offers paid vacation and sick leave for eligible Associates.

Direct Deposit
CarMax offers Associates direct deposit of their paycheck into the bank and account of their choice.

Educational Assistance
The Educational Assistance Program reimburses tuition, books, and course-related fees up to $800 per pre-approved course, with a maximum of $2,500 per year for full-time Associates and $1,500 per year for part-time Associates.

Business Travel Accident Insurance
CarMax provides Travel Accident Insurance to all Associates. The Company pays 100% of the cost. Benefits are payable in the event of death while traveling on company business. Benefits are the greater of $250,000 or 3x base salary up to $750,000.

Employee Assistance Program
Associates can access professional resources for information, confidential consultation and short-term counseling on everyday issues.

Adoption Assistance
CarMax offers assistance to help Associates build families through legal adoption. Qualified Associates with one year of continuous full-time service are eligible to receive up to $4,000 in reimbursements for adoption-related expenses.

Holidays
CarMax Offices are closed:
New Year's Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Day

CarMax Stores are closed:
Easter Sunday (for stores open Sunday)
Thanksgiving Day
Christmas Day

Updated October 2, 2008