GPS 2012

Guide for Personal Success

GPS Compensation | Benefits | Work/Life Balance | Career Development

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GPS

Guide For Personal Success

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Guide for Personal Success

CarMax aspires to be more than just a workplace; we want you to enjoy coming to work each day. We offer high-quality programs designed to meet your needs now and in the future. This is just one of the reasons we’ve been on FORTUNE® magazine’s “100 Best Companies to Work For” list eight years in a row! Total compensation is more than just your paycheck. CarMax also contributes toward the cost of your benefits and provides programs to help at work and at home. For example, when you participate in our Medical Plan, you can save thousands of dollars in preventive and health care expenses. Our wellness programs encourage you to save money while you get on the path to a healthier life. And special benefits like adoption assistance or our customized training can make your personal or professional goals more affordable — or even free. To help you learn more about available programs and their value to you, we’ve mapped out our many offerings in this “Guide to Personal Success” (GPS). The information in this booklet is divided into four categories:

• Compensation • Benefits • Work/Life Balance • Career Development Your GPS statement outlines the programs you participated in during 2011 and what CarMax paid to offer them to you.

Please take the time to review this booklet and your personalized statement. We think you’ll be pleased by all the opportunities that lie ahead. If you have any questions, please contact your manager or Human Resources Representative.

n o i t a s n e p m o C At CarMax, compensation is a combination of pay-related elements and other components that help support our culture, achieve business goals, and recognize Associate efforts. You’ll find that as your career progresses, so do your opportunities to participate in these programs.

Monetary Compensation CarMax regularly reviews compensation to maintain market competitiveness. Every Associate receives an hourly wage, commission, or annual salary based on position, responsibility, geographical area, and market conditions. We reward business achievements through various incentive programs. Depending on your position, you may also be eligible for stock incentives and other achievement-related bonus and incentive programs.

Guide to Personal Success

Other Compensation Recognition Programs You have the opportunity to earn tangible rewards through recognition programs specific to your business area, department, or position. These programs recognize both business achievements and personal milestones. They include: CarMax Champions Store, Home Office, and CAF Associates who demonstrate a strong commitment to Building a Better CarMax and excel in the areas of customer service, innovation (savings to the Company in either efficiencies or dollars), quality of work, and/or teamwork enjoy reserved parking, a desk award, a gift card, and recognition in Company publications, on the Champion Wall, and at team meetings.

Above and Beyond Every month, Associates who care for customers in an outstanding way are publicly thanked with a $1,000 bonus check, a store pizza party, and a congratulatory letter from Tom. Winners are also highlighted in What’s New and On the Road. President’s Club and Director’s Club These performance-based programs celebrate the achievements of store Associates in all four business areas. There are multiple levels, and each comes with cash bonuses, special privileges, and other coveted rewards. Anniversary Awards CarMax values long-term commitment and dedication. When you reach 5, 10, 15, 20, and 25 years of service, you’ll get a desk award to highlight your tenure. Five-year Associates also receive a $75 gift certificate to the Company store; 10-, 15-, 20-, and 25-year Associates receive a bonus check for their commitment to the Company.

I like how I am compens ate d accord to my per for ing m a n c e. I f I p e r f o r m w e l l, my paychec k i s b i g g e r. — Jacob Walte rs, Sales Manag er, Lexington, Ke ntucky

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Benefits CarMax is committed to providing benefits that enable you and your family to be physically, emotionally, and financially healthy. A Culture of Health At CarMax, we believe your health is important no matter what your stage of life. Through online articles, financial education events, healthy activities, and other store events, we provide the tools and resources to help you make smart choices. Your Health Care Programs CarMax encourages all Associates to live healthfully. When you adopt a healthy lifestyle and use health care effectively, you help us continue to offer valuable, affordable benefits. Medical Plan Our Medical Plan provides comprehensive coverage for full-time Associates and their eligible dependents, including domestic partners. Preventive services are covered in full, so you can get important information about your health risks and learn how to get the care you need. In 2012, we transitioned our Medical Plan and health programs to Aetna as part of our desire to help all Associates lead healthy lives. In addition to medical and dental coverage, Aetna will now be responsible for Life Insurance, Long-Term Disability, the Employee Assistance Program, Tobacco Cessation, and other services. One of the features of the new plan is an enhanced level of customer service. When you call Aetna, a Health Concierge is there to answer all your questions or connect you with

someone who can. At aetna.com, you’ll also find a wide range of online tools to help you manage your health and understand how to use the plan to meet your health goals. We want you to know your current health status so you can get on the path to a healthier you. Every year, during Open Enrollment, you will be asked to complete confidential biometric screenings and an online Health Assessment as part of your Commitment to Health. If you agree and you’re a Medical Plan member, you’ll earn a Medical Plan credit off the per-paycheck cost of medical coverage. Wellness Programs As part of our culture of health, we offer you and your eligible family members access to, and financial support for, programs that help with weight management (Weight Watchers), tobacco cessation, having a healthy pregnancy, and disease management. Weight Watchers members may also be eligible for a gym incentive. Additional wellness programs from Aetna are available for Medical Plan members. Dental and Vision Plans Like our Medical Plan, our Dental and Vision Plans provide comprehensive coverage for full-time Associates and their eligible dependents, including domestic partners. The Dental Plan provides coverage for preventive, basic, and restorative services. Vision coverage includes an annual routine eye exam and an allowance for eyewear. Income Protection Life Insurance All eligible Associates receive Company-paid Basic Life Insurance. You can also add Supplemental Life, Spouse/ Domestic Partner Life, Child Life, or Accidental Death and Dismemberment coverage. Associates traveling on CarMax business are covered by the Business Travel Accident Policy.

Our b enefits p ackage is p h e n o m e n a l. I have five k ids and to b e able to meet the nee ds of my fam i l y, t h i s p ackage is i d e a l. — Brian Berry, Purchasing Man ager, Austin, Te xas

Guide to Personal Success

Disability Income Protection We believe it’s important to care for our Associates in the event of disability. Our Short-Term Disability (STD) Policy provides income protection during absences due to illness, injury, or pregnancy. Benefits are based on tenure, pay type (salary, hourly wage, or commission), and your earnings at the time of your disability. CarMax pays the entire cost of the benefit; eligible Associates are automatically covered. Our Long-Term Disability (LTD) Plan is for absences extending beyond 180 consecutive days. Tax-free benefits are approximately 60 percent of pre-disability earnings. Participating Associates pay the cost of the Plan. Flexible Spending Accounts Our Health Care Flexible Spending Account (HCFSA) and Day Care Savings Account (DCSA) plans allow eligible Associates to set aside a portion of their paycheck on a pre-tax basis for out-of-pocket healthcare or dependent care expenses. Retirement and Financial Planning To help you have financial security now and in the future, we offer several tools for any stage of life: Retirement Savings Plan — You may set aside up to 50 percent of your pre-tax earnings with the 401(k) program, subject to IRS limits. After a year of employment, CarMax matches $.50 for every dollar contributed, up to 5 percent of pay. To become 100 percent vested in the Company match, you must have 3 years of vesting service. Other limits may apply. The Plan, administered by T. Rowe Price, offers a variety of investment options, including target date retirement funds.

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Retirement Contribution Account — Every year, CarMax may contribute an amount equal to 2 percent of pay into an individual T. Rowe Price investment account for each eligible Associate. If you have 5 or more years of vested service on December 31, 2008, or were age 40 or older, you may receive a 4 percent contribution. You must have 3 years of vesting service to become vested in this contribution account. Employee Stock Purchase Plan – Eligible Associates can buy CarMax stock through payroll deductions — from 2 to 10 percent of pay, up to $7,500 annually. CarMax matches $.15 for every dollar you contribute. At Your Fingertips At Work or At Home All benefit plan information is available on the CarMax World – Benefits Tab (intranet) and online at carmax.com/ benefits (internet). There you’ll find plan summaries, contact information, and guides to help you navigate your benefits. You can also use mykmxhr.com to view benefits and pay information or manage your enrollment and personal information.

e c n a l a B e f i Wo r k /L Our goal is to help you to find fulfillment and live healthy lives at work and at home. We strive to provide ways to balance work and family. A Comfortable Work Environment At CarMax, all Associates — whether at the store, Home Office, or CAF — enjoy a positive work environment. Casual attire like polos, khakis (including shorts), and fleece pullovers keep you comfortable and put customers at ease. And all work areas are climate-controlled, even our shops. We foster a team environment so you feel like you’re part of a family. And our senior leadership encourages an atmosphere where it’s the person who’s valued, not the position.

Wellness as a Way of Life CarMax believes that having a balance between home and work is one way every Associate can make health a priority. We want wellness to be engrained in the CarMax culture, and we are constantly promoting and introducing programs and resources that make it easy for you to focus on living your healthiest life. Read more under Benefits. A Focus on Diversity At CarMax, we work to make you feel welcomed, included, and valued. We: • Hire, develop, and promote diverse qualified Associates • Educate you on the importance of diversity and its impact on our business • Recognize the value and importance of your diverse talents • Provide benefits to support a diverse workforce and its needs The CarMax Compass Initiative Engaged Associates are Company advocates, actively committed to the CarMax mission, founding principles, and core values. We measure engagement through our annual Compass survey where you rate your employment experience. We also solicit your input through regular Compass plan meetings, a forum to share feedback and brainstorm ways to make work better.

Paid Time Off Programs To strike a balance between personal and work life, we encourage you to take time for rest, relaxation, and personal needs. CarMax offers a variety of paid time off options, depending on pay status, tenure, and needs: • Vacation — Hourly, Full-Time Associates --Up to 10 days during your first 6 years of employment --Up to 15 days after 7 years of employment --Up to 20 days after 15 years of employment • Sick Time — Hourly, Full-Time Associates --Up to 6 days per year • Medical Leave / Short-Term Disability (for eligible Associates) --Up to 6 months of supplemental pay • Military Leave Pay Differential (for eligible Associates) --Up to 12 months of pay differential • Personal Time — Hourly, Full-Time Associates --One day per year • Bereavement --Up to 3 days per year • Holidays — Hourly, FullTime Associates --Up to 6 holidays per year Time Away allows salaried Associates to take time off for rest, relaxation, or personal reasons. This flexible program

T h e C a rM a x w a y is p re t t y much the o pp osi h o w im p o r t a n t it is t o h a ve a healthy work/

— R o n Fi n l a n , O p e ra t i o ns

M a n a g e r, Fr esno

Guide to Personal Success

enables you to arrange for Time Away based on business needs and management approval. Other Valuable Programs CarMax Rewards Enjoy discounts on childcare, appliances, electronics, cell phones, furniture, travel, and more through this online program that saves you thousands of dollars every year.

Helping Our Associates Disaster Relief The CarMax Disaster Relief Fund offers financial assistance if you’ve been directly impacted by natural disasters or catastrophic emergencies, like a hurricane or house fire. The program also awards disaster relief, recovery, and rebuilding grants to non-profit organizations assisting our communities.

Adoption Assistance If you wish to adopt a child, CarMax offers two valuable benefits. The Adoption Assistance Program reimburses up to $4,000 in eligible adoption expenses for each adopted child or attempted adoption. The Employee Assistance Program (see below) helps locate adoption resources, provides a legal or financial consultation, and has counselors to guide you through this special time.

To qualify, submit an application (found on the CarMax World) within 90 days of a qualified event. The Disaster Relief Committee reviews all applications to determine eligibility. Individual grants range from $250 to $1,500.

Employee Assistance Program (EAP) The EAP helps you and your families through many of life’s challenges. It offers consultations and resources for legal, financial, and work/life issues. This free and confidential service is available by phone or online 24 hours a day, seven days a week.

Giving Back to Our Communities The CarMax Foundation The CarMax Foundation supports your local communities through grants, volunteerism, and matching gifts to local nonprofits. Grant programs focus on youth leadership, educational opportunities for children and families, and wellness initiatives.

Flexible Schedules Because of our dedication to healthy work/life balances for every Associate, CarMax offers flexible scheduling options when appropriate. In fact, many of our store positions are structured with hours that allow you to better meet personal needs.

To help your fellow Associates and keep the fund supplemented, you can also contribute to the fund. All Associate donations are eligible for the Matching Gifts Program.

Volunteer Team-Builders The Volunteer Team-Builder Program allows teams of five or more Associates to volunteer with the nonprofit of their choice. After the event, The Foundation makes a donation to the organization in honor of our Associates’ efforts.

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Matching Gifts The Matching Gifts program increases the impact of your charitable gifts and volunteer hours. For every donation of $25 or more, The Foundation will make a matching contribution; for every hour volunteered (10-hour minimum), The Foundation will donate $10. The amount matched can be a combination of volunteer hours and funds donated to non-profit organizations, up to $10,000 a year. Your Matching Gifts can also include hours and money donated by qualifying family members. Easy Gift The Easy Gift program allows you to have $5 or more deducted from your paycheck and donated directly to the charity of your choice. These funds are automatically matched through the Matching Gifts program. Board Service Donations If you are serving on a nonprofit Advisory or Governing Board, you may request an annual donation in your honor. If the organization is a Foundation grantee, they receive $1,000; if they meet Foundation guidelines but aren’t a grantee, they receive $500. CarMax Cares Community Service Awards Every year, Associates are nominated by their peers for going above and beyond to help their local communities. Nine Associates — one from each region and Home Office/CAF — are honored with an award and the privilege of donating $5,000 to the organization of their choice. For more information about The CarMax Foundation, visit carmaxcares.com.

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t n e m p o l e v e D Career CarMax views our Associates as our most valuable asset. We want you to find personal fulfillment in your job and build success for both you and the Company. World Class Training and Development As one of Training magazine’s “Top 125 Training Companies in America,” CarMax continually provides training and development in every business area. KMX University KMX University (KMXU) helps us deliver nearly 400,000 individual training classes — over 1 million hours — a year. We use a blended approach that combines online, classroom, and individual instruction. Accessible through the CarMax World, the site allows you to view position

development plans, launch online courses, register for classroom training, print self-paced training workbooks, take exams, and review your personal training history. Advancement Opportunities You can also view and apply for jobs online. Visit the CarMax World — Careers Tab to complete an electronic Internal Transfer Request (eITR). If you’re eligible to transfer, you’ll progress through the interview process once you submit the form. Management Training Programs About 95 percent of our current managers were promoted from within. If you’re interested in advancing your career, CarMax offers classroom training, assessment tools, and coaching support targeted for career growth. And all new managers receive “best in class” management training through BASE Camp.

To m e, A s s o ciate d The amount of train most compa nie s. Fo has helped me beco

Guide to Personal Success

Associate Development Successful managers spend most of their time developing Associates, so we provide resources to maximize the time. Every year, your manager completes an Annual Performance Review (APR) and Individual Development Plan (IDP) for each of his or her Associates. The APR looks back at how you performed against objectives and expectations; the IDP focuses on your future goals and career growth. Both are based on position-specific competency models so you can better understand your role and the behaviors that lead to success. Training Reimbursement Tuition Assistance Program We encourage you to pursue education in your field. The courses you take must be credited, but they do not have to be job-related. CarMax reimburses eligible tuition expenses up to $800 per approved course, with a maximum of $2,500 per year for full-time Associates and $1,500 for part-time Associates.

Service Operations Scholarship You and any immediate family members who plan to pursue vocational school education in automotive or collision repair can apply for a $2,000 scholarship. Each year, up to nine awards are granted. Family members are under no obligation to CarMax after completing their education. Technician Training Reimbursement Program CarMax is committed to exceptional quality in every car we sell or service. As a result, we reimburse technician training costs at certified automotive trade schools — $2,000 for a one-year program and $4,000 for a two-year program.

evelopment i s C a r M a x ’s number one ing given to p r i o r i t y. e ach A s so ci ate is unhea o r m e, t h e o rd of in pp or tunit y C a rM ax has pr ome the per ovided son I am tod a y. — Alex Hernand ez, Recondition ing

Lead, Ontario, California

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Connections at a Glance

CarMax Benefits Service Center (888) mykmxhr (888) 695-6947

Aetna Dental Plan

Fax: (515) 875-1799 mykmxhr.com

EyeMed Vision Plan

Aetna Choice POS II Medical Plan claims and care starting Mar. 1, 2012

(866) 498-5004 aetna.com

Express Scripts

(866) 498-5004 aetna.com

(866) 723-0514 eyemedvisioncare.com

To locate a provider, indicate “Select” network

Aetna Employee Assistance Program (EAP) (866) 498-5004 aetnaeap.com Company ID: MYKMXEAP

prescriptions

(866) 851-2830 express-scripts.com

Retirement Savings Plan T. Rowe Price

Empire Blue Cross/Blue Shield

(800) 922-9945 rps.troweprice.com

claims and care through Feb. 29, 2012

(866) 228-0445 empireblue.com

Learn more ab out these prog rams and bene fits on the Car Policy informa Max World or tion and rewar d qualification information ma y be found on

Employee Stock Purchase Plan Computershare

CarMax Rewards carmaxrewards.corporateperks.com/login

(866) 322-7629 www-us.computershare.com/employee

Tuition Assistance

Pension Plan

(888) 695-6947, option 4 tuitionconnect.adpslc.com/CarMaxESS

(888) 695-6947, option 7 email: [email protected]

Stock Incentive Plan E*Trade options and awards

(800) 838-0908 etrade.com

Weight Watchers (800) 767-7178 mypowwr.com/downloads/carmax.pdf

Tobacco Cessation Program Aetna Healthy Lifestyle Coaching (866) 498-5004 aetna.com

online at c ar m a x.co m/b e n e fits. the CarMax W ay.

CarMax Benefits Service Center:

Adoption Assistance CarMax Benefits Service Center:

(888) 695-6947, option 5

ADP Flexible Spending Account Service Center For HCFSA and DCSA CarMax Benefits Service Center:

(888) 695-6947, option 6 flexdirect.adp.com

I t ’s t h e ove rall p a cka g e t h a t yo u g e t f ro m C arM a x … T h e y all a d d up t o h e lp m ake yo u r jo b an d yo u r life b e t t e r. — Nestor Lopez, Senior Buyer, Riverside, California

Guide to Personal Success

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