What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-09-28 compared with 2022-09-27 · 39 added, 50 removed, 421 unchanged (17% of the section changed)

15 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.

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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 New York metropolitan area in the wake of Hurricane Ida in the fall of 2021.

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 South Florida in the wake of Hurricane Ian in the fall of 2022.

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.

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For fiscal 2023, our revenues were $3.9 billion and our operating income was $1.5 billion.

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.

We also 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”).

In fiscal 2023, we opened one new operational facility in Brazil, one new operational facility in Germany, one new operational facility in Canada, and eight new operational facilities in the U.S.

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

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Transportation Services

and Canada, we perform transportation services through a combination of third-party vehicle transport companies and our fleet of over 350 vehicles.

segment, we perform transportation services through a combination of third-party vehicle transport companies and our fleet.

We maintain contracts with third-party vehicle transport companies, which enable us to pick up most of our sellers’ vehicles within 24 hours.

Our national network and transportation capabilities provide cost and time savings to our vehicle sellers and offer timely vehicle pick up and prompt response to catastrophes and natural disasters in the U.S.

In the U.K., we perform transportation services through a combination of our fleet of over 270 vehicles and third-party vehicle transport companies.

In Germany, we perform transportation services through our fleet of over 45 vehicles and third-party vehicle transport companies.

In the International segment, we perform transportation services through a combination of our fleet and third-party vehicle transport companies.

Our international network and transportation capabilities provide cost and time savings to our vehicle sellers throughout Europe, Brazil and Middle east market.

Vehicle Inspection Stations

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These national, regional, and local competitors may have established relationships with vehicle sellers and buyers and may have financial resources that are greater than ours.

The largest national or regional vehicle auctioneers in the U.S.

include Insurance Auto Auctions, Inc.

KAR Auction Services, Inc.

(“KAR”) (including its subsidiary ADESA, Inc.);

The largest national or regional vehicle auctioneers in the U.S., including Ritchie Bros.

(including its subsidiary Insurance Auto Auctions, Inc.

Manheim, Inc., and ACV Auctions Inc.

The largest national dismantler is LKQ Corporation (“LKQ”).

LKQ, in addition to trade groups of dismantlers such as the American Recycling Association and the United Recyclers Group, LLC, may purchase salvage vehicles directly from insurance companies, thereby bypassing vehicle remarketing companies entirely.

LKQ, in addition to trade groups of dismantlers such as the American Recycling Association, United Recyclers Group LLC, other regional, and local dismantlers may purchase salvage vehicles directly from insurance companies, thereby bypassing vehicle remarketing companies entirely.

In our International markets, our principal competitors are vehicle auction and sales companies, vehicle dismantlers, and privately held independent remarketers.

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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.

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The data centers’ electrical and mechanical systems are continually monitored.

The data centers are located in areas generally considered to be free of frequent weather-related disasters and earthquakes.

The data centers are

located in areas generally considered to be free of frequent weather-related disasters and earthquakes.

We operate fully redundant infrastructure to ensure ongoing operations, even in the event of physical damage to one of our data centers.

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We began using our internally developed proprietary system with our expansion into Spain in fiscal 2016 and Germany in fiscal 2017.

We intend to continue development of this system and implement it in certain additional locations in the future.

Employees and Human Capital

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and 32% located within our International segment.

Of the approximately 6,600 full and part-time employees based in the U.S, approximately 48% of them identify as female.

Of the approximately 6,900 full and part-time employees based in the U.S, approximately 46% of them identify as male, 42% as female, and 12% are undisclosed.

We also believe our workforce is ethnically diverse.

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Additionally, of the approximately 1,400 employees serving in the U.S.

in management roles and above, up to and including executives, 67% identify as male and 33% identify as female.

Of the approximately 2,800 employees based within the International segment, approximately 34% of them identify as female.

in management roles and above, up to and including executive s, 60% identify as male, 37% identify as female, and 3% choose not to disclose.

Of the approximately 3,300 employees based within the International segment, approximately 63% of them identify as male, 36% as female, and 1% are undisclosed.

We also believe our workforce is ethnically diverse.

As of July 31, 2022, our International workforce consisted of approximately 58% individuals identifying as White, 32% as Asian, 4% as Black or African, 2% as Hispanic or Latino, 1% as Other, and 3% as Not Disclosed.

Additionally, of the approximately 273 employees serving Internationally in management roles and above, up to and including executives, 71% identify as male and 29% identify as female.

Our human capital objective is to attract, retain, develop, and motivate talented employees.

We use online search tools, specialized recruiting firms, employee referral programs, job postings in various media platforms, and university recruiting to cast a wide and varied net for talented candidates.

In order to promote the success of our company and increase stockholder value, among other elements in the total of mix of employee compensation, we offer a combination of competitive base salary, equity incentives, and bonus plans that are designed to motivate and reward personnel.

Our executive compensation structure aligns incentives with our strategic growth objectives, including long-term share price appreciation.

As of July 31, 2023, our International workforce consisted of approximately 53% individuals identifying as White, 34% as Asian, 4% as Black or African, 3% as Hispanic or Latino, 1% as two or more races, 5% as Other or as Not Disclosed.

Additionally, of the approximately 400 employees serving Internationally in management roles and above, up to and including executives, 65% identify as male, 33% identify as female and 2% identify as not disclosed.

At Copart, our Human Resources (HR) function known as People and Culture, plays a vital role in creating a supportive and productive work environment for all employees.

Our People and Culture department is dedicated to fostering a culture of growth, collaboration, and employee well-being with a “people first” mindset.

We understand that our people are our most valuable asset, and our People and Culture team is committed to providing comprehensive support across various aspects of the employee lifecycle.

We identify and attract top talent that aligns with our values and objectives.

We carefully manage the recruitment process, from drafting job descriptions and posting vacancies to conducting interviews and making hiring decisions.

We leverage online search tools, recruiting firms, employee referral programs and university recruiting.

We offer a combination of competitive salaries, equity incentives and bonus plans.

Our executive compensation structure aligns incentives with our company’s strategic growth objectives, including long-term share price appreciation.

In that regard, our executive compensation programs place greater weighting on equity compensation than other forms of compensation offered to all employees.

For more details regarding our executive compensation, refer to information incorporated by reference from the information set forth under the captions “Executive Compensation” and “Compensation Discussion and Analysis” in our 2023 Proxy Statement.

We value the health and well-being of our employees, and provide generous benefit options to best suit our employees and their families.

Within our U.S.

segment, we pay a significant portion of the benefit premiums related to our health benefits.

In many cases, employees are offered certain benefits at no charge to them or their families.

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.

We have designed our plans around the following four pillars:

Health, Financial Security, Life, and Education.

Our Health benefits include:

multiple medical plans, dental and vision coverage, and wellness programs combined with external support networks.

The Financial Security benefits program includes:

401K plan with employer match options;

an Employee Stock Purchase Program (“ESPP”) that offers employees the option to purchase Copart shares at a discounted price and become stockholders of the Company;

access to both health and dependent care flexible spending accounts;

and an overall financial wellness platform.

Our Life program provides a range of insurance products, employee assistance programs as well as identity protection and legal services.

Finally, our Education program includes tuition support for employees and scholarship opportunities for employees’ children.

This is combined with our global training and development program that focuses on leadership development, as well as training in various topics including diversity, anti-harassment, ethics, and regulatory compliance.

Within our International segment, we also offer a variety of benefit plans similar to the U.S.

segment, albeit adjusted to reflect local market conditions.

Once a new team member joins us, our People and Culture department works to provide for a seamless onboarding process, helping them integrate into our culture and hit the ground running.

The People and Culture team oversees performance management processes that help employees understand their goals and expectations.

We facilitate regular performance discussions, feedback sessions, and goal setting to ensure alignment with the company's objectives, driving a clear path to advancement.

We prioritize the well-being and satisfaction of our employees.

We organize various engagement initiatives, including team-building events, wellness programs, and recognition efforts to celebrate achievements and milestones.

We are dedicated to maintaining a positive and inclusive work environment where every employee feels valued and supported.

We provide comprehensive, generous benefits and compensation packages, ensuring that they remain competitive within the industry.

We address inquiries about benefits, such as healthcare, retirement plans, and other rewards, to guarantee that our employees have access to the resources they need for a fulfilling work-life balance.

Copart pays a sizable portion of the benefit premiums related to healthcare.

Copart’s benefit plans are designed around Health, Financial Security, Life and Education.

These include a variety of medical plans, dental and vision coverage, and wellness programs in addition to external support networks.

Environmental Matters

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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