What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-09-30 compared with 2023-09-28 · 98 added, 92 removed, 368 unchanged (34% of the section changed)

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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 ® , National Powersports Auctions, 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 ™ , Purple Wave Auction ™ , 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 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.

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

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

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Each vehicle that enters our business operations already exists, with whatever fuel technology and efficiency it was designed and built to have, and the substantial carbon emissions associated with the vehicle’s manufacture have already occurred.

However, upon our receipt of an existing vehicle, we help decrease its total environmental impact by extending its useful life and thereby avoiding the carbon emissions associated with the alternative of new vehicle and auto parts manufacturing.

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.

However, upon our receipt of an existing vehicle, we help facilitate the decrease of its total environmental impact by extending its useful life and thereby avoiding the carbon emissions associated with the alternative of new vehicle and auto parts manufacturing.

For example, many of the cars we process and remarket are subsequently restored to drivable 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.

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

Finally, some of our vehicles are returned to their raw

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

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

Beyond our environmental stewardship, we also support the world’s communities in two important ways.

First, we believe that we contribute to economic development and well-being by enabling more affordable access to mobility around the world.

For example, many of the automobiles sold through our auction platform are purchased for use in developing countries where affordable transportation is a critical enabler of education, health care, and well-being more generally.

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

Secondly, we believe we play an important role in the communities we serve through our response to and management of catastrophic weather events.

This includes our investments in equipment and infrastructure which support our overall disaster recovery efforts.

For example, we mobilized our people, 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.

Vehicle sellers consist primarily of insurance companies, but also include banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals.

Vehicle sellers consist primarily of insurance companies, but also include dealers, individuals, charities, rental, banks, finance companies, and fleet operators.

We obtained 81%, 83%, and 80% of the total number of vehicles processed during fiscal 2024, 2023, and 2022, respectively, from insurance company sellers.

We sell the vehicles principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and to the general public.

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In the U.K., Germany, and Spain we operate both as an agent and on a principal basis, in some cases purchasing salvage vehicles outright and reselling the vehicles for our own account.

we recognize revenue on a principal basis from selling dismantled parts through Green Parts Specialist (“GPS”).

In Germany and Spain, we also derive revenue from listing vehicles on behalf of insurance companies and insurance experts to determine the vehicle’s residual value and/or to facilitate a sale for the insured.

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If no bids are received during the countdown, the vehicle sells to the highest bidder.

We believe our virtual auction platform increases the pool of available buyers for each sale, which brings added competition and an increase in the amount buyers are willing to pay for vehicles.

We believe our virtual auction platform increases the pool of available buyers for each sale, which brings added competition and an increase in the amount that buyers are willing to pay for vehicles.

We also believe that it improves the efficiency of our operations by eliminating the expense and capital requirements which would be associated with holding live auctions.

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We believe that we offer the highest level of service in the auction and vehicle remarketing industry and have established our leading market position by:

• providing coverage that facilitates seller access to buyers around the world, reducing towing and third-party storage expenses, offering a local presence for vehicle inspection stations, and providing prompt response to catastrophes and natural disasters by specially trained teams;

• providing a virtual platform that facilitates seller access to buyers around the world, reducing towing and third-party storage expenses, offering a local presence for vehicle inspection stations, and providing prompt response to catastrophes and natural disasters by specially trained teams;

• providing a comprehensive range of services that includes merchandising, efficient title processing, timely pick-up and delivery of vehicles, and internet sales;

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For fiscal 2024, our revenues were $4.2 billion and our operating income was $1.6 billion.

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.

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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.

These auction and auction related services may include a combination of vehicle purchasing fees, vehicle listing fees, and vehicle selling fees that can be based on a predetermined percentage of the vehicle sales price, tiered vehicle sales price driven fees, or at a fixed fee based on the sale of each vehicle regardless of the selling price of the vehicle;

In fiscal 2024, we opened three new operational facilities in the U.K., one new operational facility in Spain, one new operational facility in Canada, and four new operational facility in the U.S.

Our service revenues consist of auction and auction-related sales transaction fees charged for vehicle remarketing services.

These auction and auction-related services may include a combination of the following:

vehicle purchasing fees:

vehicle listing fees;

vehicle selling fees that can be based on a predetermined percentage of the vehicle sales price, tiered vehicle sales price fees, or at a fixed fee based on the sale of each vehicle regardless of the selling price of the vehicle;

transportation fees for the cost of transporting the vehicle to or from our facility;

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We also purchase vehicles in the open market, primarily from individuals, and resell them for our own account.

Operating costs consist primarily of operating personnel (which includes yard management, clerical, and yard employees);

vehicle transportation;

property related taxes;

equipment maintenance and repair;

marketing costs directly related to the auction process;

and costs of vehicles sold under the purchase contracts.

General and administrative expenses consist primarily of executive management;

data processing;

sales personnel;

professional services;

marketing expenses;

and system maintenance and enhancements.

Operating costs consist primarily of:

(i) labor (operating personnel at yards);

(ii) transportation (miles traveled and fuel rates);

(iii) facilities (maintenance, property-related taxes, rent, and insurance);

(iv) other (marketing and auction related costs);

and (v) costs of vehicles sold.

General and administrative expenses consist primarily of executive management, accounting, data processing, sales personnel, professional services, marketing expenses, and technology enhancements and maintenance.

Industry Overview

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Vehicle remarketers typically operate from multiple facilities where vehicles are processed, viewed, stored and released to the buyer.

While companies in this industry remarket vehicles through a physical auction or a hybrid internet and physical auction, we sell virtually all our vehicles on our internet selling platform VB3, thus eliminating the requirement for buyers to travel to an auction location to participate in the sales process.

Although there are other sellers of vehicles, such as banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals, our primary sellers of vehicles are insurance companies.

While companies in this industry remarket vehicles through a physical auction or a hybrid internet and physical auction, we sell virtually all our vehicles on our virtual marketplace platform VB3, thus eliminating the requirement for buyers to travel to an auction location to participate in the sales process.

Although there are other sellers of vehicles, such as dealers, individuals, charities, rental, banks, finance companies, and fleet operators, our primary sellers of vehicles are insurance companies.

The primary buyers of vehicles at our auctions are vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and the general public.

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The insurance company will thereafter assign the vehicle to a vehicle auction and remarketing services company, settle with the insured and receive title to the vehicle.

Automobile manufacturers continuously incorporate new standard features, including unibody construction utilizing exotic metals;

Automobile manufacturers continuously incorporate new standard features, including:

unibody construction utilizing exotic metals;

passenger safety cages with surrounding crumple zones to absorb impacts;

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• the price the company charges for its services;

• geographic coverage;

• the ability to respond to natural disasters;

• geographic coverage;

• the ability to provide analytical data to the seller;

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Advance charges paid on behalf of the vehicle seller are either recovered upon sale of the vehicle, invoiced separately to the seller, or deducted from the net proceeds due to the seller.

The salvage vehicle then remains in storage at one of our facilities until ownership documents are transferred from the insured vehicle owner and the title to the vehicle is cleared through the appropriate state’s motor vehicle regulatory agency, or DMV.

The salvage vehicle is stored at one of our facilities until ownership documents are transferred from the insured vehicle owner and the title to the vehicle is cleared through the appropriate state’s motor vehicle regulatory agency (“DMV”).

In the U.S., total loss vehicles may be sold in most states only after obtaining a salvage title from the DMV.

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The primary focus of these new service offerings is to maximize returns to our sellers and maximize product value to our members.

This includes, for our sellers, real-time access to sales data over the internet, the ability to respond on a national scale, and for our members, the implementation of VB3 real-time bidding at substantially all of our facilities, permitting members at any location worldwide to participate in the sales at our yards.

This includes, for our sellers, real-time access to sales data over the internet, the ability to respond on a national scale, and for our members, the implementation of VB3 real-time bidding at substantially all of our facilities, thereby permitting members at any location worldwide to participate in the sales at our yards.

We plan to continue to refine and expand our services, including offering software that can assist our sellers in expediting claims and salvage management tools that help sellers integrate their systems with ours.

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• sophisticated vehicle processing at storage sites, including digital imaging of each vehicle and the scanning of each vehicle’s title and other significant documents such as body shop invoices, all of which are available from us over the internet;

• expedited process to assess total loss through our Total Loss Express 360 and Rapid Total Loss AI tools;

• title procurement and loan payoff services offered through Title Express;

• specialty sales, which allow buyers the opportunity to focus on such select types of vehicles as motorcycles, heavy equipment, boats, recreational vehicles, and rental cars;

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• introduce our comprehensive services and operational expertise.

We strive to integrate all new facilities, when appropriate, into our existing network without disruption of service to vehicle sellers.

We work with new sellers to implement our fee structures and new service programs.

We strive to integrate all new facilities and companies, when appropriate, into our existing network without disruption of service to vehicle sellers.

We typically retain existing employees at acquired facilities in order to retain knowledge about, and respond to, the local market.

We also assign a special integration team to help convert newly acquired facilities to our own management information and proprietary software systems, helping enable us to ensure a smooth and consistent transition to our business operating and sales systems.

Technology to Enhance and Expand Our Business

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The segments represent geographic areas and reflect how the chief operating decision maker allocates resources and measures results, including total revenues, operating income and income before income taxes.

Our revenues for the year ended July 31, 2023 were distributed as follows:

82.4% and International 17.6%.

For the year ended July 31, 2024, we generated 81.8% of our revenue in our U.S.

segment and 18.2% in our international segment.

Geographic information as well as comparative segment revenues and related financial information pertaining to the U.S.

and International segments for the years ended July 31, 2023, 2022 and 2021 are presented in the tables in Note 14 — Segments and Other Geographic Reporting , to the Notes to Consolidated Financial Statements, which are included in Part II, Item 8 of this Form 10-K.

and International segments for the years ended July 31, 2024, 2023 and 2022 are presented in the tables in Note 14 — Segments and Other Geographic Reporting , to the Notes to Consolidated Financial Statements, which are included elsewhere in this Form 10-K.

Our Service Offerings

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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.

Our international network and transportation capabilities provide cost and time savings to our vehicle sellers throughout the U.K.

Europe, Canada, Brazil and Middle east market.

Vehicle Inspection Stations

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In addition, we have developed a database containing over 300 fields of real-time and historical information accessible by our sellers allowing for their generation of custom ad hoc reports and customer specific analysis.

Title Processing and Procurement

Title Processing

We have extensive expertise in DMV document and title processing.

We have developed a computer system which provides a direct link to the DMV computer systems of multiple states, allowing us to expedite the processing of vehicle title paperwork.

Title Express

We also facilitate the title transfer from the original owner or financial institutions on behalf of some of our sellers to streamline the documentation and vehicle auction process.

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At the election of the seller, we sell vehicles pursuant to our Percentage Incentive Program (“PIP”), Consignment Program, or Purchase Program.

Under each program we may provide merchandising services such as covering or taping openings to protect vehicle interiors from weather, washing vehicle exteriors, vacuuming vehicle interiors, cleaning and polishing dashboards and tires, making keys for driveable vehicles, and identifying driveable vehicles.

We believe our merchandising efforts increase the sales prices of the vehicles, thereby increasing the return on vehicles to both vehicle sellers and us.

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If an offer is accepted, the member can purchase the vehicle before the live auction process.

Member Network

We maintain a database of thousands of registered members (“buyers”) in the vehicle dismantling and recycling, rebuilding, used vehicle dealer and export industries, as well as members that are a part of the general public, where applicable.

Our database includes each member’s vehicle preference and purchasing history.

This data enables us to notify prospective buyers throughout the world via email of vehicles available for bidding that match their vehicle preferences.

Listings of vehicles to be sold on a day and location are also made available on the internet.

Sales Process

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The VB3 technology and model employs a two-step bidding process.

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

The first step is an open preliminary bidding feature that allows a member to enter bids either over the internet during the preview days.

To improve the effectiveness of bidding, the VB3 system lets a member see the current high bid on the vehicle they want to purchase.

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If no bids are received during the countdown or any extensions, the vehicle sells to the highest bidder.

We provide financial institutions, fleet and rental car companies with an efficient method to sell their vehicles.

We have a dedicated team of employees that support the processing and remarketing of BluCar vehicles.

Copart Dealer Services

We provide franchise and independent dealers with a convenient method to sell their trade-ins through any of our facilities.

We have a dedicated group of employees in the U.S.

We have a dedicated team of employees in the U.S.

that target these dealers and work with them throughout the sales process.

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National Powersport Auctions

In the U.S., we provide non-salvage powersport vehicle remarketing services through live and online auction platforms to dealers, financial institutions and OEMs through our subsidiary National Powersport Auctions, or NPA.

In the U.S., we provide wholesale powersport vehicle remarketing services through live and online auction platforms to dealers, financial institutions and Original Equipment Manufacturers through our subsidiary National Powersport Auctions (“NPA”).

Powersports include for example motorcycles, recreational vehicles, boats and RVs.

NPA also offers comprehensive data services including the NPA Value Guide TM , which we believe is the industry’s most accurate wholesale valuation tool.

NPA has facilities in San Diego, California;

Philadelphia, Pennsylvania;

Dallas, Texas;

Cincinnati, Ohio;

Atlanta, Georgia;

Littleton, Colorado;

Madison, Wisconsin;

Portland, Oregon;

Sacramento, California;

and Orlando, Florida.

NPA corporate offices are located in San Diego, California;

and they operate from locations throughout the United States.

Purple Wave Inc.

In the U.S., through our majority ownership of Purple Wave Inc.

(“Purple Wave”) we provide wholesale construction, agriculture, and fleet remarketing services through no-reserve online auctions at www.purplewave.com, selling such items directly from the sellers location.

Purple Wave Inc.

offers a range of services including appraisals, listings, marketing, and post auction shipping.

The Purple Wave corporate office is located in Manhattan, Kansas.

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 the U.K., we have two facilities for U-Pull It 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.

After the valuable parts have been removed by the buyer, the remaining parts and car body are sold for their scrap value.

We also operate GPS which dismantles vehicles and sells used parts.

We pioneered posting vehicle images online for buyers in 2001, and we have been improving the technology to provide top quality photos since then.

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Copart locations.

This capability was expanded out to the U.K.

This capability was expanded to the U.K.

in fiscal 2021.

Interested buyers can view everything from the backseat to the dashboard to the tires.

Interested buyers can view everything from the backseat to the dashboard to the tires by clicking the 360° icon under vehicle images on select lot details pages on Copart.com.

Buyers can also zoom in and out or expand to full screen on computers or mobile devices.

Buyers can access this feature by clicking the 360° icon under vehicle images on select lot details pages on Copart.com.

Membership Tiers

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• get a complimentary safety vest (one per membership year) and water bottle at our locations.

Virtual Queue

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.

We process vehicles from hundreds of different vehicle sellers.

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We obtained 81%, 83%, and 80% of the total number of vehicles processed during fiscal 2024, 2023, and 2022, respectively, from insurance company sellers.

We typically contract with the regional or branch office of an insurance company or other vehicle sellers.

We typically contract with the national, regional or branch office of an insurance company or other vehicle sellers.

The agreements are customized to each vehicle seller’s needs and often provide for the disposition of different types of salvage vehicles by differing methods.

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Please see Note 14 — Segments and Other Geographic Reporting in our Notes to Consolidated Financial Statements for information regarding the geographic location of our sales and our long-lived assets.

We maintain a database of approximately 1 million registered members (“buyers”) in the vehicle dismantling and recycling, rebuilding, used vehicle dealer and export industries, as well as members that are a part of the general public, where applicable.

We believe that we have established a broad international and domestic buyer base by providing members with a variety of programs and services.

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Additionally, business members must provide current business information, including copies of licenses, which may include vehicle dismantler, dealer, resale, repair or export licenses, and as needed, completed sales tax exemption certificates.

Registration entitles a member to transact business at any of our sales, subject to local licensing and permitting requirements.

Registration entitles a member to transact business at any of our auctions, subject to local licensing and permitting requirements.

We may sell to the general public either directly or members may purchase a vehicle offered at Copart through a registered broker who meets local licensing and permitting requirements.

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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., including Ritchie Bros.

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

include 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, United Recyclers Group LLC, other regional, and local dismantlers may purchase salvage vehicles directly from insurance companies, thereby bypassing vehicle remarketing companies entirely.

Carvana, Openlane, Manheim, Inc.

and ACV Auctions Inc.

The largest national dismantler in the U.S.

is LKQ Corporation (“LKQ”).

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

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

Each individual sale is configured to run on an available server in the array and can be rapidly provisioned to any other available server in the array as required.

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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.

We have developed a proprietary enterprise operating system to enable us to address our international expansion needs.

This proprietary system is designed to provide multi-language and multi-currency capabilities.

We have a proprietary enterprise operating system that provides multi-language and multi-currency capabilities, thereby facilitating future international expansion.

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

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As of July 31, 2024, we had approximately 11,700 full and part-time employees, of which approximately 65% were located in the U.S.

and 32% located within our International segment.

and 35% were located within our International segment.

Of the approximately 7,600 full and part-time employees based in the U.S, approximately 53% of them identify as male, 46% as female, and 1% are undisclosed.

We also believe our workforce is ethnically diverse.

We also believe our U.S.

workforce is ethnically diverse.

As of July 31, 2024, our U.S.

workforce consisted of approximately 40% individuals identifying as White, 17% as Hispanic or Latino, 12% as Black or African American, 4% as Asian, 2% as two or more races and 25% as not disclosed.

workforce consisted of approximately 45% individuals identifying as White, 22% as Hispanic or Latino, 15% as Black or African American, 6% as Asian, 3% as two or more races and 9% as other or as not disclosed.

Additionally, of the approximately 878 employees serving in the U.S.

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.

in management roles and above, up to and including executive s, 54% identify as male and 46% identify as female.

Of the approximately 4,100 employees based within the International segment, approximately 65% of them identify as male and 35% as female.

We also believe our International workforce is ethnically diverse.

As of July 31, 2024, our International workforce consisted of approximately 49% individuals identifying as White, 37% as Asian, 2% as Black or African, 3% as Hispanic or Latino, 3% as two or more races, 6% 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.

Additionally, of the approximately 508 employees serving Internationally in management roles and above, up to and including executives, 69% identify as male and 31% identify as female.

At Copart, our human resources 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.

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

Our Employee Development and Training Department plays a crucial role in driving organizational growth by equipping our employees with the skills and knowledge they need to succeed.

This department designs and delivers comprehensive

training from compliance to leadership development.

By aligning training initiatives with corporate goals, the team ensures that employees are not only well-prepared to meet current job demands but are also future-ready.

Through a blend of in-person sessions and virtual learning opportunities, the Training Department supports and promotes a culture of excellence, innovation, and career progression across the organization.

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

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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 facilitate regular performance discussions, feedback sessions, and goal setting to ensure alignment with our corporate objectives, driving a clear path to advancement.

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

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In addition to acquiring insurance in connection with certain acquisitions, we have also obtained indemnification for pre-existing environmental liabilities from many of the persons and entities from whom we have acquired facilities, but there can be no assurance that such indemnifications will be available or sufficient.

In addition, increased focus by the U.S.

and other governmental authorities on climate change and other environmental matters may lead to enhanced regulation in these areas, which could also result in increased compliance costs and subject us to additional potential liabilities.

The extent of these costs and risks is difficult to predict and will depend in large part on the extent of new regulations and the ways in which those regulations are enforced.

Any such expenditures or liabilities could have a material adverse effect on our consolidated results of operations, financial position, or cash flows.

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The acquisition and sale of vehicles is regulated by various state, provincial and foreign motor vehicle departments, and the steps required to process vehicle titles is a significant cost of our business.

At the same time, our know-how in the area of title processing is a competitive advantage.

Our know-how in the area of title processing is a competitive advantage.

In addition to the regulation of sales and acquisitions of vehicles, we are also subject to various local zoning requirements with regard to the location of our storage facilities, which generally make it more challenging and expensive to identify, acquire and develop new facilities.

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Intellectual Property and Proprietary Rights

In 2008, we obtained a patent issued by the United States Patent and Trademark Office that covers certain aspects of our virtual bidding auction platform.

In 2008, we obtained a patent issued by the United States Patent and Trademark Office that covers certain aspects of our virtual bidding auction platform, VB3.

Generally, patents issued in the U.S.

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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