What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-09-27 compared with 2021-09-27 · 24 added, 24 removed, 447 unchanged (10% of the section changed)

5 unchanged sentences

We provide free of charge, through a link on our website, access to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as amendments to those reports, as soon as reasonably practical after the reports are electronically filed with, or furnished to, the SEC.

Copart ® , BID4U ® , CI & Design ® , DRIVE Auto Auctions ™ , 1-800 CAR BUYER ® , CA$HFORCARS.COM ® , COPART & DESIGN ® , VB3 & DESIGN ® , VB3 ® , NPA, and CrashedToys.com ® are trademarks of Copart, Inc.

Copart ® , BID4U ® , CI & Design ® , DRIVE Auto Auctions ™ , 1-800 CAR BUYER ® , CA$HFORCARS.COM ® , COPART & DESIGN ® , VB3 & DESIGN ® , VB3 ® , National Powersports Auctions, NPA, and CrashedToys.com ® are trademarks of Copart, Inc.

or one of its direct or indirect wholly-owned subsidiaries.

This Form 10-K also includes other trademarks of Copart and of other companies.

We are a leading provider of online auctions and vehicle remarketing services with operations in the United States (“U.S.”), Canada, the United Kingdom (“U.K.”), Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates (“U.A.E.”), Oman, Bahrain, and Spain.

We are a leading global provider of online auctions and vehicle remarketing services with operations in the United States (“U.S.”), Canada, the United Kingdom (“U.K.”), Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates (“U.A.E.”), Oman, Bahrain, and Spain.

Our goals are to generate sustainable profits for our stockholders, while also providing environmental and social benefits for the world around us.

4 unchanged sentences

For example, many of the cars we process and remarket are subsequently restored to driveable condition, reducing the new vehicle manufacturing burden the world would otherwise face.

Many of our cars are purchased by dismantlers, who recycle and refurbish parts for vehicle repairs, again reducing new and aftermarket parts manufacturing.

And finally, some of our vehicles are returned to their raw material

inputs through scrapping, reducing the need for further new resource extraction.

Many of our cars are purchased by dismantlers, who recycle and refurbish parts for vehicle repairs,

again reducing new and aftermarket parts manufacturing.

And finally, some of our vehicles are returned to their raw material inputs through scrapping, reducing the need for further new resource extraction.

In each of these cases, our business reduces the carbon and other environmental footprint of the global transportation industry.

3 unchanged sentences

Secondly, because of the special role we play in responding to catastrophic weather events, we believe we contribute to disaster recovery and resilience in the communities we serve.

For example, we mobilized our people, entered into emergency leases, and engaged with a multitude of service providers to timely retrieve, store, and remarket tens of thousands of flood-damaged vehicles in the Houston, Texas metropolitan area in the wake of Hurricane Harvey in the summer of 2017.

For example, we mobilized our people, entered into emergency leases, and engaged with a multitude of service providers to timely retrieve, store, and remarket tens of thousands of flood-damaged vehicles in the New York metropolitan area in the wake of Hurricane Ida in the fall of 2021.

We provide vehicle sellers with a full range of services to process and sell vehicles primarily over the internet through our Virtual Bidding Third Generation internet auction-style sales technology, which we refer to as VB3.

10 unchanged sentences

This technology and model employ a two-step bidding process.

The first step is an open preliminary bidding feature that allows members to enter bids either at a bidding station at the storage facility or over the internet during the preview period.

The first step is an open preliminary bidding feature that allows members to enter bids over the internet during the preview period.

To improve the effectiveness of bidding, the VB3 system lets members see the current high bids on the vehicles they want to purchase.

18 unchanged sentences

• applying technology to enhance operating efficiency through internet bidding, web-based order processing, salvage value quotes, electronic communication with members and sellers, and vehicle imaging.

• providing a venue for insurance customers through our Virtual Insured Exchange (“VIX”) product to contingently sell a vehicle through our auction process to assess true market value, equipping our insurance customers with market data in its negotiations with owners who wish to retain their damaged vehicles.

Historically, we believe our business has grown as a result of (i) acquisitions, (ii) increases in overall volume in the salvage car market, (iii) growth in market share, (iv) increases in the amount of revenue generated per sales transaction resulting from increases in the gross selling price and the addition of value-added services for both members and sellers, and (v) growth in non-insurance company sellers.

For fiscal 2022, our revenues were $3.5 billion and our operating income was $1.4 billion.

In fiscal 2019, we opened one new operational facility in Brazil, seven new operational facilities in Germany, eleven new operational facilities in the U.S., and acquired an operational facility in Greenville, Kentucky.

In fiscal 2020, we opened two new operational facilities in Germany, one new operational facility in Brazil, and three new operational facilities in the U.S.

In fiscal 2021, we opened one new operational facility in Germany, one new operational facility in Spain, ten new operational facilities in the U.S., and acquired an operational facility in Des Moines, Iowa.

In fiscal 2022, we opened one new operational facility in Canada, one new operational facility in Spain, and five new operational facilities in the U.S.

As for strategic acquisitions of complementary businesses, we acquired a parts recycler in the U.K.

that has four operating facilities.

This acquisition is currently undergoing review by the U.K.

Competition and Markets Authority (the”CMA”).

Our service revenue consists of auction and auction related sales transaction fees charged for vehicle remarketing services.

33 unchanged sentences

Used vehicle dealers generally purchase recovered stolen or slightly damaged vehicles for resale.

Most of our vehicles are sold on behalf of insurance companies and are usually vehicles involved in an accident or to a lesser extent a natural disaster.

Most of our vehicles are sold on behalf of insurance companies and are usually vehicles involved in an accident or a natural disaster.

Typically, the damaged vehicle is towed to a storage facility or a vehicle repair facility for temporary storage pending insurance company examination.

13 unchanged sentences

automatic braking;

and blind spot detection systems.

blind spot detection systems;

and electrification of drivetrains.

We believe that one effect of these additional features is that newer vehicles involved in accidents are more costly to repair and, accordingly, more likely to be deemed a total loss for insurance purposes.

111 unchanged sentences

In the U.K., we are an authorized treatment facility for the disposal of end-of-life vehicles.

Virtual Insured Exchange (VIX)

We provide a venue for insurance customers through our Virtual Insured Exchange (“VIX”) product to contingently sell a vehicle through our auction process to assess true market value, equipping our insurance customers with market data in its negotiations with owners who wish to retain their damaged vehicles.

Transportation Services

77 unchanged sentences

and Orlando, Florida.

In the U.K., we have two facilities from which the public can purchase parts from salvaged and end-of-life vehicles.

Copart Recycling

In the U.K., we have six facilities from which the public can purchase parts from salvaged and end-of-life vehicles.

In general, the buyer is responsible for detaching the parts from the vehicle and any associated hauling or transportation of the parts after detachment.

26 unchanged sentences

Virtual Queue

We always strive to maintain the highest safety guidelines to protect the health and well-being of our members and employees.

As soon as COVID-19 began impacting businesses globally, we rolled out the Virtual Queue at all locations to reinforce safety measures.

The Virtual Queue, available in multiple languages, is a safe way to secure a place in line while visiting one of our locations.

Whether a visitor is at a location to make a payment or preview a vehicle, the Virtual Queue lets them conveniently maintain social distancing practices.

Rather than wait in line inside a location, our visitors can save their place and receive an estimated wait time, using our mobile application, in the comfort of their own vehicle.

The Virtual Queue, available in multiple languages, secures a place in line while visiting one of our locations.

Whether a visitor is at a location to make a payment or preview a vehicle, the Virtual Queue lets them conveniently save their place and receive an estimated wait time, using our mobile application, in the comfort of their own vehicle.

We notify them via text message when it is their turn to speak to a customer service agent.

35 unchanged sentences

This system is integrated with the internet to enable buyers to view salvage vehicles and bid on them.

It can also be integrated with the seller’s system and enables the sellers to monitor their vehicles and analyze the progression of vehicles through the auction process.

It can also be integrated with the seller’s system and enables the sellers to monitor their vehicles and analyze the progression of vehicles through the

auction process.

Our auction-style service product, VB3, is served by an array of identical high-density, high-performance servers.

21 unchanged sentences

As of July 31, 2022, our U.S.

workforce consisted of approximately 49% individuals identifying as White, 20% as Hispanic or Latino, 15% as Black or African American, 5% as Asian, 3% as two or more races, Native American or Alaska Native, Native Hawaiian or Pacific Islander, and 8% as Not Disclosed.

workforce consisted of approximately 50% individuals identifying as White, 21% as Hispanic or Latino, 15% as Black or African American, 6% as Asian, 3% as two or more races and 5% as not disclosed.

Additionally, of the approximately 711 employees serving in the U.S.

15 unchanged sentences

benefit platform is built from a whole person model, meaning we offer options that assist in keeping the whole person healthy.

Employees and their families can select from a wide range of benefits from traditional health and dental insurance to financial wellness and estate planning.

Employees and their families can select from a wide range of benefits from traditional health and dental

insurance to financial wellness and estate planning.

We have designed our plans around the following four pillars:

12 unchanged sentences

segment, albeit adjusted to reflect local market conditions.

In fiscal 2021, our ongoing focus on workplace safety and regulatory compliance has enabled us to maintain business continuity while promoting a safe work environment during the COVID-19 pandemic.

Specifically, we introduced work-from-home arrangements for a substantial portion of our workforce and social distancing for those that have returned to the office, in accordance with local health authority guidelines.

Environmental Matters

30 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business