Company Information

Primary Department Functions

The Credit & Collections department includes the following teams:

1. Returned Checks - processes CarMax and CarMax Auto Finance (CAF) returned checks
2. Repossessions - coordinates all CarMax repossessions for returned checks and unfunded loans
3. New Car Receivables - tracks and manages all new car manufacturer receivables
4. Auction Accounting - processes drafts payable to CarMax, creates and manages credit limits for wholesale dealers, and analyzes company wholesale financial information

Trainee Role: Supervisor

Responsibilities
Responsibilities for all teams within Credit & Collections include receivable reporting and management, account and bank reconciliations, and daily interaction with financial institutions, store Associates, store management teams, CarMax Auto Finance, Financial Sales and Support, Loss Prevention, and Legal. Some travel is required.

Specific examples of Credit & Collections responsibilities and projects include:

• Perform analysis reporting
• Research, test, communicate, and implement new procedures in the field and within the corporate department
• Review and/or modify current company and departmental procedures
• Establish new receivables and reports associated with new receivables
• Convert manually tracked receivables or outdated systems into PeopleSoft
• Implement new department at corporate level (Auction Accounting was created in 2000)

Primary Department Functions

The Division Accounting department includes the following teams:

1. Stores – reviews all accounts for store operation, including margin and expenses
2. Service – reviews all accounts related to service and reconditioning operation
3. Overheads – coordinates with all corporate overhead managers for month-end and budgeting
4. General Ledger – is responsible for month-end cutoff process, all reports, and GL maintenance

Trainee Role: Analyst

Responsibilities
Responsibilities for all teams within Division Accounting include account reconciliations, mid-year and full-year budgeting, month-end close, budgeting and analysis, and daily interaction with store Associates, store management teams, CarMax Auto Finance, senior management, IT, and other corporate departments.

Specific examples of Division Accounting responsibilities and projects include:

• Prepare monthly summarized financial results for upper management
• Participate in the development of accounting and operational systems and procedures
• Coordinate the budget process – from formulating assumptions with Associates in other operational areas to preparing schedules for budget presentations to company management
• Work on special projects and research financial questions as needed
• Act as financial accounting liaison for company management

Primary Department Functions

The Expense Payables department processes payments for the following:

1. Utilities
2. Travel and Expense reimbursements (T&Es)
3. Advances (for T&E expenses)
4. DMV
5. Customer refunds (CarMax and CarMax Auto Finance)
6. Corporate invoices (marketing, facilities, casual labor, office supplies, etc.)
7. Various interfaces (payroll, purchasing, etc.)
8. Rent
9. Delta (all air travel)
10. Adtrack (advertising invoices)
11. Other miscellaneous expenses

Trainee Role: Supervisor

Responsibilities
In addition to the payment areas listed above, Expense Payables responsibilities include:

• Perform account and bank reconciliations
• Approve vendor maintenance
• Complete stop payments and positive pay verification
• Verify auction statements
• Oversee microfilm and storage process
• Execute 1099 reporting and annual solicitation
• Communicate extensively with stores, vendors, customers and other corporate departments
• Maintain Corporate Invoice Authorization List
• Carry out stale check research and escheatment to the state
• Perform daily pay cycles
• Analyze, test, and assist with PeopleSoft upgrades that impact the team

Specific examples of Expense Payables responsibilities and projects include:

• Perform routine T&E Audits
• Initiate/oversee the 1099 reporting process and W-9 solicitation
• Assist with PeopleSoft Upgrade
• Develop process and procedure improvements
• Post/verify groups for payment

Primary Department Functions

The Financial Reporting department is responsible for preparing and correctly presenting financial statements. It also communicates information to management and external users to help them make investment, credit, or other related decisions.

Trainee Role: Analyst

Responsibilities
Specific examples of Financial Reporting responsibilities include:

• Complete independent projects
• Prepare financial statements in accordance with generally accepted accounting principles. Financial statements include balance sheet, statement of earnings, statement of cash flows, and statement of stockholders’ equity.
• Prepare Annual Report and Proxy Statement to shareholders. The Annual Report includes financial statements and footnotes integral to the preparation of the financial statements.
• Prepare and file 10-K, 10-Qs and other required SEC filings
• Verify all information disclosed in sales and earnings releases
• Research current/proposed SEC, FASB, or accounting industry changes and determine applicability to CarMax
• Prepare the Earnings per Share calculation
• Prepare monthly reporting for new car manufacturers
• Prepare quarterly financial covenants for certain corporate agreements
• Prepare and file financial reports with the Census Bureau

Primary Department Functions

The Financial Systems Integration department acts as a liaison between Accounting and IT in managing projects that impact the financial systems of the company.

Trainee Role: Analyst

Responsibilities
Responsibilities for Financial Systems Integration include support of upgrades to financial systems, PeopleSoft General Ledger, Accounts Receivable, and Asset Management and assistance in research and implementation of new PeopleSoft modules. The department also designs and administers PeopleSoft security and works within the Accounting Departments to identify ways to improve processing efficiencies using the data available in our systems.

Specific examples of Financial Systems Integration responsibilities include:

• Completion of independent projects related to systems development
• Support and enhance PeopleSoft applications
• Perform PeopleSoft training and security administration
• Develop Access databases and queries
• Process Improvement Initiatives

Primary Department Functions

The Fixed Assets department handles acquisitions accounting of land, buildings, leasehold improvements, machinery, furniture, and software.

Trainee Role: Analyst

Responsibilities
Fixed Assets is responsible for the maintenance of detailed records of assets in the Fixed Assets subsystem and the reconciliation of those balances to the General Ledger. In Fiscal Year 2003, the department began implementing a new PeopleSoft Asset Management System to replace the 15-year old Sysgen System.

Specific examples of Fixed Assets responsibilities include:

• Budget and post depreciation in the subsystem and explain variances between budget and actual
• Budget and calculate capitalized interest as a component cost of new locations under construction
• Review and approve invoices that affect fixed asset accounts to ensure payment of sales tax and its validity as a capital expenditure
• Process journal vouchers for land transactions, sales/leasebacks, capitalized interest, and construction roll-out in progress accounts to fixed assets
• Reconcile the fixed asset system to the General Ledger

Primary Department Functions

The Internal Audit department evaluates and improves various processes across the company. For selected processes, the department assesses functionality to ensure the reliability and integrity of financial and operational information, the efficiency and effectiveness of operations, the safeguarding of assets, and compliance with laws, regulations, and contracts.

Trainee Role: Analyst

Responsibilities
Internal Audit reports directly to the Audit Committee of the Board of Directors and administratively to the Vice President Controller.

Specific examples of Internal Audit responsibilities include:

• Complete Sarbanes-Oxley Section 404 compliance
• Review financial reporting
• Assist external auditors with compliance and year-end testing
• Review internal controls and procedures for new systems and processes
• Audit inventory and cash disbursements

Primary Department Functions

The Inventory Audit department ensures company assets are correctly stated and protected through audits and physical inventories. The department also develops audit programs to ensure the proper controls are in place for key company processes.

Trainee Role: Analyst

Responsibilities
Internal Audit reports directly to the Audit Committee of the Board of Directors and administratively to the Vice President Controller.

Specific examples of Inventory Audit responsibilities include:

• Perform inventory, cash disbursement, incentive, and warranty audits of the stores
• Coordinate and oversee parts inventory once a year
• Assist KPMG with compliance and year-end testing

Primary Department Functions

The Inventory Control department maintains the integrity of CarMax’s perpetual vehicle and parts inventories and reconciles them to the General Ledger.

Trainee Role: Supervisor

Responsibilities
Inventory Control maintains the integrity of vendor information in PeopleSoft and works closely with MIS, Service Payables, Merchandise Payables, and New Car Receivables.

Specific examples of Inventory Control responsibilities include:

• Provide support to stores relating to inventory issues and account reconciliations
• Partner with MIS, Operations, Loss Prevention, and other accounting departments to improve current processes
• Coordinate and oversee account reconciliations of all vehicle, parts, and shrink accounts for stores
• Maintain the vendor master for all payables departments and act as subject matter expert regarding vendor master requirements for PeopleSoft AP upgrades
• Assist with various special projects

Primary Department Functions

The Merchandise Payables department oversees payment of vehicle and accessory purchases. It includes the following teams:

1. Prepaids - oversees and audits payments disbursed for vehicles at the stores. The payments are drafts and positive equity applied to vehicles that are sold to customers. This team is also responsible for reviewing and approving inventory adjustment requests on vehicles (returns, price changes, etc.) to ensure minimized risk.
2. Payoffs - processes payments on loan payoffs for vehicles purchased from customers through appraisal
3. Accessories - processes invoices for payment related to accessories sold at the store and installed in customer vehicles by vendors
4. PeopleSoft – analyzes, tests, and assists with any upgrades and enhancements to the PeopleSoft Accounts Payable System that impact the department

Trainee Role: Supervisor

Responsibilities
All teams are responsible for ensuring timely, accurate payment of transactions, completing account reconciliations, researching bank reconciliations, and daily interaction with store personnel, vendors, lienholders, and other corporate departments.

Specific examples of Merchandise Payables responsibilities and projects include:

• Oversee daily draft authorization
• Perform daily pay cycles (payoffs and accessories)
• Approve vendor maintenance requests
• Resolve store questions and concerns related to vehicle purchases and payments
• Analyze and recommend appropriate pay types for lienholders to enable expedient title collection for the company
• Analyze and research title collection opportunities to reduce “no title” time (payoffs)
• Re-engineer the accessory payables and payoff processes
• Analyze inventory adjustment transactions to ensure minimal risk
• Review, modify, and communicate improvements to current company and departmental procedures
• Work with stores and corporate departments on internal system enhancements (Automation, Order Entry, etc.)

Primary Department Functions

The Sales Audit department includes the following teams:

1. Sales Receivables – monitors and analyzes the receivables for lender finance contracts, warranty work, and credit card transactions
2. Mail Refunds – monitors, approves, and processes the timely refunds to customers due to returns
3. Vehicle Sales Tax – reconciles the sales tax payable by the stores for vehicles, resolves open payables and any discrepancies, and monitors the receivables for sales tax on returned vehicles
4. Nightly Close Audit – tracks and manages each store’s nightly close process to ensure timely receipt of all cash and checks
5. Accounts Receivable Systems – tests upgrades and enhancements to PeopleSoft Accounts Receivable system that impact the group, and monitors the enhancement list, working with IT to ensure enhancements are completed as needed.

Trainee Role: Supervisor or Analyst

Responsibilities
All teams within Sales Audit are responsible for receivable reporting and management, account reconciliations, bank reconciliations, and daily interaction with financial institutions, store Associates, store management teams, CarMax Auto Finance, Financial Sales and Support, and IT. Some travel is required.

Specific examples of Sales Audit responsibilities and projects include:

• Complete analysis reporting
• Identify, research, test, communicate, and implement new procedures in the field or within the corporate department
• Review and/or modify current company and departmental procedures
• Establish new receivables and reports associated with new receivables
• Ensure protection of company assets and minimize exposure of controllable expenses

Primary Department Functions

The Service Payables department processes payments to the vendors who supply parts and perform sublet work on our vehicles.

Trainee Role: Supervisor

Responsibilities
Specific examples of Service Payables responsibilities and projects include:

• Oversee processing of parts and sublet repair invoices to ensure timely, accurate payments
• Oversee monthly vendor statement reviews
• Review monthly reconciliation of Manufacturer Parts Accounts for our new car franchises
• Interact with stores, vendors, and corporate management to maintain effective relationships
• Approve vendor maintenance
• Assist in the creation and implementation of vendor statement reporting
• Analyze, test, and assist with any PeopleSoft upgrades and enhancements that impact the team
• Analyze and report on department productivity
• Analyze, test, communicate, and implement new procedures within the department or in the stores

Primary Department Functions

The Tax department prepares and files all Federal, State, and Local tax returns. It also calculates and remits tax payments to all taxing jurisdictions, resolves all audits with the IRS and state and local tax authorities, and conducts tax planning to reduce the overall tax burden on the company.

The Tax department includes the following teams:

1. Sales Tax
2. Property Tax
3. Corporate Income Tax

Trainee Role: Analyst

Responsibilities
By team, specific examples of Tax responsibilities and projects include:

Sales Tax

• Research tax issues for new and existing facilities and topics
• Coordinate state/local sales tax audits and resolve issues
• Prepare and review of quarterly account reconciliations
• Prepare and remit sales tax returns
• Collaborate with corporate departments and field Associates on internal system enhancements (Automation, Order Entry, etc.)

Property Tax

• Work with external consultants to minimize the assessed value of real estate and personal property and protest the assessments when appropriate
• Report any reductions to senior management via quarterly reports
• Review and prepare annual real estate and personal property tax returns
• Assist in budgeting the projected real estate, personal property, and business license tax expense by location
• Coordinate annual year-end reconciliation for all property tax accounts (real estate, personal property, and business license)
• Maintain external software package utilized for coordinating payments
• Assist in any audits with state and local governments
• Manage unclaimed property reporting process
• Renew store licenses

Corporate Income Tax

• Prepare and file all Federal, state, and local corporate income and franchise tax returns
• Calculate and remit quarterly estimate tax payments
• Prepare quarterly and annual tax provision for external reporting purposes
• Prepare footnote disclosures for Corporate Annual Report to Shareholders
• Resolve all income/franchise tax audits with the IRS and State revenue and taxation departments
• Complete tax planning projects to reduce corporate effective tax rate

Primary Department Functions

The Treasury department includes the following teams:

1. Finance – structures and administers asset-backed securitizations, obtains lines of credit, structures sale/leaseback transactions, and arranges financial derivatives to hedge interest rate risk
2. Cash Management – determines daily cash position, invests or borrows funds, executes all electronic funds transfers, and manages all bank and armored carrier relationships
3. Risk Management – purchases corporate insurance coverage, manages insurance claims, and identifies risk exposure

Trainee Role: Supervisor or Analyst

Responsibilities
By team, specific examples of Treasury responsibilities and projects include:

Finance

• Analyze interest expense, securitization portfolio statistics and cost of funds
• Report monthly and quarterly compliance
• Forecast monthly receivables
• Work with underwriters, rating agencies, and attorneys to structure asset securitizations

Cash Management

• Determine the company’s daily cash position
• Execute electronic funds transfers
• Establish new banking services
• Work with other departments and external parties to resolve cash management and bank-related issues

Risk Management

• Manage claims involving damage to company or customer property
• Work with other departments and external parties to manage claims involving Associate injuries and customer injuries
• Analyze claim trends
• Review settlement requests