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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 11-K

(Mark One)

[X]                       ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
  For the fiscal year ended December 31, 2003

OR

[ ]                       TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
                      For the transition period from                                        to                    

Commission file number 1-6089

H&R Block Retirement Savings Plan
(Full title of the Plan)

H&R BLOCK, INC.

4400 Main Street
Kansas City, Missouri 64111
(Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office)

 


 

The H&R Block Retirement Savings Plan
Index

         
    Page
    1 - 2  
Financial Statements:
       
    3  
    4  
    5 - 9  
Schedule: *
       
    10 - 16  
    17  
       
    18  
    19  

* Prepared in accordance with the filing requirements of ERISA. Other Schedules required by Section 2520.103-10 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable.

 


 

Report of Independent Registered Public Accounting Firm

To the Participants and Administrator of
the H&R Block Retirement Savings Plan.:

We have audited the accompanying statement of net assets available for benefits of the H&R Block Retirement Savings Plan (the “Plan”) as of December 31, 2003, and the related statement of changes in net assets available for benefits for the year then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the H&R Block Retirement Savings Plan as of December 31, 2003, and the changes in net assets available for benefits for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule H, line 4i- schedule of assets (held at end of year) as of December 31, 2003 is presented for purposes of additional analysis and is not a required part of the basic financial statements. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ KPMG LLP                     

Kansas City, Missouri
June 25, 2004

1


 

Report of Independent Registered Public Accounting Firm

To the Participants and Administrator of
the H&R Block Retirement Savings Plan:

In our opinion, the accompanying statement of net assets available for benefits presents fairly, in all material respects, the net assets available for benefits of the H&R Block Retirement Savings Plan (the “Plan”) at December 31, 2002 in conformity with accounting principles generally accepted in the United States of America. This financial statement is the responsibility of the Plan’s management; our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit of this statement in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri
June 27, 2003

2


 

The H&R Block Retirement Savings Plan

Statements of Net Assets Available for Benefits
December 31, 2003 and 2002
                 
    December 31,
    2003
  2002
Assets
               
Cash, non-interest bearing
  $     $ 36,169,840  
Investments, at fair value:
               
H&R Block, Inc. common stock fund
    13,627,982       10,067,064  
Mutual funds
    293,114,266       190,818,149  
Common collective trust
    37,459,911       23,456,013  
Self-directed brokerage accounts
    6,721,478       4,778,244  
Participant loans
    7,242,971       4,264,271  
 
   
 
     
 
 
Total investments
    358,166,608       233,383,741  
Receivables:
               
Employer contributions
    3,854,039       1,205,778  
Participant contributions
    1,817,045       879,193  
Dividends
    984,670       171,638  
Option One Mortgage Company Retirement Plus Plan transfer
          706,478  
 
   
 
     
 
 
Total receivables
    6,655,754       2,963,087  
Total assets
    364,822,362       272,516,668  
 
   
 
     
 
 
Liabilities
               
Due to broker for securities purchased
          22,669,976  
Accrued expenses
    65,179       70,066  
 
   
 
     
 
 
Net assets available for benefits
  $ 364,757,183     $ 249,776,626  
 
   
 
     
 
 

See accompanying notes to financial statements.

3


 

The H&R Block Retirement Savings Plan

Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2003
         
    For the Year Ended
    December 31, 2003
Additions:
       
Investment income:
       
Dividends and interest
  $ 7,605,942  
Net appreciation in fair value of investments
    57,510,940  
Other
    38,993  
 
   
 
 
 
    65,155,875  
Contributions:
       
Employer
    27,670,537  
Participant
    46,348,124  
 
   
 
 
 
    74,018,661  
Total additions
    139,174,536  
Deductions:
       
Distributions to participants
    23,768,450  
Administrative expenses
    425,529  
 
   
 
 
Total deductions
    24,193,979  
 
   
 
 
Net increase
    114,980,557  
Net assets available for benefits
       
Beginning of year
    249,776,626  
 
   
 
 
End of year
  $ 364,757,183  
 
   
 
 

See accompanying notes to financial statements.

4


 

The H&R Block Retirement Savings Plan

Notes to Financial Statements
December 31, 2003

1.   Description of the Plan
 
    General
 
    The H&R Block Retirement Savings Plan (the “Plan”) is a defined contribution plan sponsored by HRB Management, Inc. (the “Company”) for its employees and the employees of certain of its affiliates. The Plan became effective on January 1, 1985 and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).
 
    The Plan provides for selection of an administrative committee, a plan administrator and a trustee by the Board of Directors of the Company. The administrative committee is responsible for the general administration of the plan and the interpretation of its provisions. The plan administrator is responsible for the reporting and disclosure requirements under ERISA. BNY Western Trust Company is the Plan’s trustee.
 
    In December 2001, the Plan was amended and restated to, among other things, allow participants to make pre-tax contributions up to fifty percent of their compensation (subject to Internal Revenue Code limitations), with a discretionary employer matching contribution of up to one hundred percent of a participant’s contributions not to exceed five percent of the participant’s compensation. In addition, the amendment made vesting in any prospective employer matching contributions immediate. These amendments were effective as of January 1, 2002 for participants employed by a participating employer in the “Investment Services Line of Business,” as such term is defined by the Plan, and July 1, 2002 for all other participants. Additionally, individual brokerage accounts were added as an investment option during February 2002 for participants employed by a participating employer in the Investment Services Line of Business and as of April 1, 2002 for all other participants.
 
    During December 2002, the Company approved a plan to merge the Option One Mortgage Corporation Retirement Plus Plan (the “Option One Plan”) into the Plan. The Option One Plan was sponsored by Option One Mortgage Corporation, an affiliate of the Company. Substantially all of the net assets of the Option One Plan were transferred to the Plan by December 31, 2002. Remaining assets totaling $706,478 were transferred in 2003 and are presented as a receivable in the statement of net assets available for benefits at December 31, 2002.
 
    The following description provides only general information. Participants should refer to the Plan document for a more complete description of the Plan.
 
    Investment Option Change
 
    Effective July 1, 2003, the Strong Funds, Strong Blue Chip 100 Fund was replaced with the American Funds, Growth Fund of America as an investment option of the Plan. Participant balances remaining in the Strong Blue Chip 100 Fund existing on July 1, 2003 were transferred into the Growth Fund of America.

5


 

The H&R Block Retirement Savings Plan
Notes to Financial Statements
December 31, 2003

    Eligibility
 
    The timing of an employee’s eligibility for participation in the Plan depends on whether the employee is classified as a nonseasonal employee or seasonal employee. With respect to participant contributions and employer matching contributions: (a) nonseasonal employees are automatically enrolled in the Plan beginning the first day of the month following or coinciding with the date they complete 90 “Days of Service,” as such term is defined in the Plan, and (b) seasonal employees are automatically enrolled in the Plan beginning with the first participation date (January 1 or July 1) following or coinciding with the date they complete a “Year of Service,” as such term is defined in the Plan. With respect to employer profit sharing contributions, both nonseasonal and seasonal employees are eligible to participate beginning the first day of the Plan year that immediately precedes or is coincident with the date the employee completes a “Year of Service.”
 
    Contributions
 
    Participants may make pre-tax contributions from two to fifty percent of their compensation, subject to Internal Revenue Code limitations. The Company may make discretionary matching contributions of up to one hundred percent of a participant’s contributions, not to exceed five percent of the participant’s compensation. The Company may also elect to make discretionary profit sharing contributions, which would be allocated among participant accounts based on the participant’s eligible compensation. For the year ended December 31, 2003, the Company contributed $27,670,537 for the matching contribution. No discretionary profit sharing contributions were made during the year ended December 31, 2003.
 
    Vesting
 
    Participant contributions, and earnings thereon, are fully vested and nonforfeitable at all times. Beginning January 1, 2002 for participants in the Investment Services line of business, and beginning July 1, 2002 for all other participants, employer matching contributions made after such applicable effective date, and earnings thereon, are fully vested and nonforfeitable at all times.
 
    Forfeitures
 
    Forfeitures for the plan year are used to reduce the administrative expenses of the Plan or to reduce employer matching contributions. For the year ended December 31, 2003 the amount forfeited was $503,933. Forfeitures of $592,547 were used to pay Plan administrative expenses and reduce employer matching contributions during the year ended December 31, 2003. The forfeiture balance of $289,747 as of December 31, 2003, will be used to reduce future matching contributions.
 
    Earnings
 
    Earnings are allocated each day to participant accounts based upon the participant’s balance in each investment option as a percentage of the Plan’s balance in the respective investment option.

6


 

The H&R Block Retirement Savings Plan
Notes to Financial Statements
December 31, 2003

    Loans
 
    Participant loans must be at least $1,000 and are limited to the lesser of $50,000 less the highest outstanding loan balance in the previous 12 months or fifty percent of the participant’s vested account balance. Interest is prime plus one percent. Loans are payable over one to five years except for loans for the purchase of a residence, which may be longer.
 
    Distributions
 
    Generally, distributions may not be made to a participant, or in the case of death, a participant’s beneficiary, until administratively feasible following the earliest of the participant’s death, disability, or severance from employment. Distributions are in the form of a lump sum cash payment.
 
    Termination
 
    Although the Company has not expressed any intent to do so, it has the right to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in the Plan and under ERISA.
 
2.   Significant Accounting Policies
 
    Basis of Accounting
 
    The financial statements of the Plan have been prepared on the accrual basis of accounting.
 
    Investment Valuation and Income Recognition
 
    H&R Block, Inc. Common Stock is stated at fair value as determined by the market closing price on the last business day of the plan year. Mutual funds, including those in self-directed brokerage accounts, are stated at fair value as determined by quoted market prices. Participant loans are valued at cost, which approximates fair value. The Plan presents in the statement of changes in net assets available for benefits the net appreciation (depreciation) in the fair value of its investments, which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. Purchases and sales of investments are recorded on a trade-date basis. Interest income is accrued when earned. Dividend income is recorded on the ex-dividend date.
 
    Expenses
 
    All administrative expenses incurred by the Plan are paid by the Plan, except to the extent paid by the Company. To the extent forfeitures are not used to pay administrative expenses of the Plan, such expenses are covered using participant account balances.
 
    Payment of Benefits
 
    Benefits are recorded when they have been approved for payment.

7


 

The H&R Block Retirement Savings Plan
Notes to Financial Statements
December 31, 2003

    Use of Estimates
 
    The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions to and deductions from net assets available for benefits during the reporting period. Actual results could differ from those estimates.
 
3.   Investments
 
    The Plan’s investments (including investments bought, sold, and held during the year) appreciated in fair value as follows:
         
    For the Year Ended
    December 31,
    2003
H&R Block, Inc. common stock fund
  $ 4,034,599  
Mutual funds, Common Collective Trust, and Self-directed brokerage accounts
    53,476,341  
 
   
 
 
 
  $ 57,510,940  

    The H&R Block, Inc. Common stock fund uses “unit” accounting. As a unitized stock fund, the Common stock Fund holds primarily H&R Block, Inc. common stock and a small percentage of cash and short-term investments, while participants hold units of the fund.
 
    Individual investments that represent five percent or more of the fair value of the Plan’s net assets are as follows:
                 
    December 31,
    2003
  2002
Legg Mason Value Trust Fund
    *     $ 28,250,123  
SEI Stable Asset Fund
    37,459,911       23,456,013  
Dodge & Cox Stock Fund
    48,943,789       *  
Vanguard Institutional Index 500
    45,260,287       31,165,946  
Vanguard Wellington Fund
    105,774,619       72,821,444  

*   Less than 5% of Plan’s assets in the applicable year.

4.   Benefits Payable
 
    The Plan records a liability relating to the obligations for benefit payments to active employees for hardship or in-service withdrawals and terminated employees. As of December 31, 2003 and 2002, net assets available for benefits included assets and corresponding liabilities of $41,492 and $27,076, respectively, due to participants who have terminated employment with the Company.

8


 

The H&R Block Retirement Savings Plan
Notes to Financial Statements
December 31, 2003

5.   Income Tax Status of the Plan
 
    The Plan received its latest determination letter dated November 11, 2003 in which the Internal Revenue Service stated the Plan is in compliance with the applicable requirements of the internal revenue code. The plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
 
6.   Related Party Transactions
 
    As of December 31, 2003 and 2002, the Plan’s investment portfolio includes an investment in the Common Stock of H&R Block, Inc., a party-in-interest to the Plan.
 
    The Plan’s recordkeeper, RSM McGladrey (“RSM”), is an affiliate of the Company and was paid $320,175 in administrative fees and reimbursements during the year ended December 31, 2003. As of December 31, 2003, administrative fees payable to RSM totaled $14,987 and are included in accrued expenses in the Statement of Net Assets Available for Benefits.
 
    The Plan’s custodian, H&R Block Financial Advisors, Inc., is an affiliate of the Company.

9


 

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002

Schedule H, Line 4i - - Schedule of Assets (Held at End of Year)
December 31, 2003
                         
                    (e)
    (b)   (c)           Current
(a)
  Identity of Issuer or Borrower
  Description of Investment
  Shares Held
  Value
*
  H&R Block, Inc. Common Stock Fund   H&R Block, Inc. Common Stock     233,696     $ 12,939,748  
 
      Cash and other assets, net     688,234       688,234  
 
                   
 
 
Mutual funds:                 13,627,982  
 
  AIM Family of Funds   AIM Constellation Fund Class A     144,674       3,111,936  
 
  AIM Family of Funds   AIM Premier Equity Fund Class A     129,740       1,216,961  
 
  AIM Family of Funds   AIM Weingarten Fund Class A     30,541       368,941  
 
  Columbia Funds   Columbia Small Cap Fund     291,670       6,860,079  
 
  Calamos Funds   Calamos Growth Fund     192,099       8,602,176  
 
  Dodge & Cox Funds   Dodge & Cox Stock Fund     430,162       48,943,789  
 
  American Funds Group   EuroPacific Growth Fund     489,726       14,794,636  
 
  Franklin Templeton Investments   Franklin DynaTech Fund A     28,231       639,143  
 
  Franklin Templeton Investments   Franklin Small-Mid Cap Fund     56,642       1,711,709  
 
  American Funds Group   Growth Fund of America Class A     61,218       1,502,288  
 
  American Funds Group   Growth Fund of America Class R5     707,627       17,379,321  
 
  INVESCO Family of Funds   INVESCO Technology Fund     43,082       1,069,737  
 
  American Funds Group   Investment Company of America Fund     32,965       950,721  
 
  Lord Abbett Family of Funds   Lord Abbett Mid-Cap Value A Fund     666,545       12,551,042  
 
  American Funds Group   New Perspective Fund     34,366       841,617  
 
  PIMCO Funds   PIMCO Total Return Fund     1,481,284       15,864,553  
 
  ICM Series Trust   ICM Small Company Fund     94,707       3,060,933  
 
  Vanguard Group   Vanguard Institutional Index 500     444,687       45,260,287  
 
  Vanguard Group   Vanguard Wellington Fund     3,671,455       105,774,619  
 
  American Funds Group   Washington Mutual Fund     80,613       2,320,031  
 
  The Reserve Funds   Reserve Primary Institutional Fund     289,747       289,747  
 
                   
 
 
 
                    293,114,266  

10


 

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003

                         
                    (e)
    (b)   (c)           Current
(a)
  Identity of Issuer or Borrower
  Description of Investment
  Shares Held
  Value
Common Collective Trust:
                   
 
  SEI Investments   SEI Stable Asset Fund     37,459,911       37,459,911  
Self-directed brokerage accounts:                
 
  AIM Family of Funds   AIM Basic Value Fund Class A Fund     834       24,391  
 
  AIM Family of Funds   AIM Mid Cap Core Equity Fund     12,887       346,915  
 
  AIM Family of Funds   AIM Global Health Care Class A Fund     2,992       78,294  
 
  AIM Family of Funds   AIM Developing Markets Fund     5,705       63,612  
 
  AIM Family of Funds   AIM Charter Class A Fund     10,376       123,370  
 
  AIM Family of Funds   AIM Income Class A Fund     1,232       8,228  
 
  AIM Family of Funds   AIM International Growth Fund Class A     8,912       145,348  
 
  AIM Family of Funds   AIM Global Growth Fund Class A     64       1,014  
 
  AIM Family of Funds   AIM European Growth Fund Class A     1,736       38,808  
 
  AIM Family of Funds   AIM Asia Pacific Growth Fund Class A     5,322       68,490  
 
  AIM Family of Funds   AIM Opportunities I Fund Class A     4,130       58,484  
 
  AllianceBernstein Funds   AllianceBernstein American Govt Fund     1,633       12,263  
 
  AllianceBernstein Funds   AllianceBernstein Small Cap Growth Fund     104       2,132  
 
  AllianceBernstein Funds   Alliance Bernstein Disciplined Value Fund     1,571       22,297  
 
  AllianceBernstein Funds   Alliance Bernstein Small Cap Value Fund     1,110       16,565  
 
  American Funds Group   AMCAP Fund Inc. Class A Fund     2,099       35,364  
 
  American Funds Group   American Balanced Fund Class A     7,482       129,358  
 
  American Funds Group   American High Income Fund Class A     258       3,179  
 
  American Funds Group   American Mutual Fund Inc. Class A     1,220       29,740  
 
  Artisan Funds   Artisan International Fund     585       11,066  
 
  Calamos Funds   Calamos Convertible Growth and Income Fund     2,196       60,992  
 
  Calamos Funds   Calamos Growth Fund     4,750       212,725  

11


 

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003

                         
                    (e)
    (b)   (c)           Current
(a)
  Identity of Issuer or Borrower
  Description of Investment
  Shares Held
  Value
 
  American Funds Group   Capital Income Builder Fund     114       5,470  
 
  American Funds Group   Capital World Growth     822       24,559  
 
  Columbia Funds   Columbia Acorn Fund Class A     570       12,653  
 
  Columbia Funds   Columbia Small Cap Fund Class A     138       2,346  
 
  Credit Suisse   Credit Suisse Small Cap Value Fund     360       7,399  
 
  Davis Funds   Davis New York Venture Fund     96       2,633  
 
  Delaware Investments   Delaware Real Estate Trust Fund     73       1,314  
 
  Delaware Investments   Delaware Technology & Innovation Fund     4,237       7,373  
 
  Dreyfus   Dreyfus Index Fund     428       13,889  
 
  Eaton Vance Group   Eaton Vance Worldwide Health Fund     1,088       10,854  
 
  American Funds Group   EuroPacific Growth Fund     163       4,935  
 
  Excelsior Funds   Excelsior Funds Value Fund     129       4,632  
 
  Federated Investors   Federated Capital Appreciation Fund     711       16,969  
 
  First Eagle   U.S. Value Fund Class A     822       10,635  
 
  Franklin Templeton Investments   Franklin Income Fund     18,036       43,468  
 
  Franklin Templeton Investments   Franklin Custodial Utilities Fund     1,163       10,944  
 
  Franklin Templeton Investments   Franklin Custodial Growth Fund     711       21,631  
 
  Franklin Templeton Investments   Franklin Custodial US Government Fund     1,139       7,688  
 
  Franklin Templeton Investments   Franklin Equity Capital Growth     4,414       45,772  
 
  Franklin Templeton Investments   Franklin Gold Fund     6,776       131,665  
 
  Franklin Templeton Investments   Franklin High Income Fund     34,854       72,845  
 
  Franklin Templeton Investments   Franklin Global Long-Short Fund Class A     374       4,161  
 
  Franklin Templeton Investments   Franklin Convertible Securities Fund Class     771       11,322  
 
  Franklin Templeton Investments   Franklin Equity Income Fund Class A     151       2,912  
 
  Franklin Templeton Investments   Franklin Rising Dividends Fund Class A     3,352       99,426  
 
  Franklin Templeton Investments   Franklin Real Estate Securities Fund     5,447       117,107  
 
  Franklin Templeton Investments   Franklin Small Mid Cap Fund     656       19,811  

12


 

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003

                         
                    (e)
    (b)   (c)           Current
(a)
  Identity of Issuer or Borrower
  Description of Investment
  Shares Held
  Value
 
  Franklin Templeton Investments   Franklin Global Health Care Fund Class A     1,635       31,247  
 
  Franklin Templeton Investments   Franklin Global Communication Fund     829       6,451  
 
  Franklin Templeton Investments   Biotech Discovery Fund     113       5,438  
 
  Franklin Templeton Investments   Franklin Templeton Moderate Target Fund     714       8,381  
 
  Franklin Templeton Investments   Franklin Balance Sheet Investment Fund     24       1,122  
 
  Franklin Templeton Investments   Franklin Small Cap Fund Class A     67       2,039  
 
  American Funds Group   Fundamental Investors Fund     1,690       48,744  
 
  GE Funds   GE Small Cap Value Fund Class A     1,804       26,122  
 
  Gabelli Funds   Gabelli Gold Fund     12,076       219,535  
 
  Gabelli Funds   Gabelli Asset Fund     456       16,527  
 
  American Funds Group   Growth Fund of America     3,458       84,869  
 
  John Hancock Funds   John Hancock Financial Industries Fund     8,822       154,023  
 
  John Hancock Funds   John Hancock High Yield Fund Class A     1,414       7,497  
 
  John Hancock Funds   John Hancock High Income Fund Class A     605       6,159  
 
  John Hancock Funds   John Hancock Health Sciences Fund     62       2,637  
 
  Oakmark Funds   Oakmark Investments Fund     1,020       38,282  
 
  Oakmark Funds   Oakmark International Investments Fund     533       9,596  
 
  Oakmark Funds   Oakmark Equity Income Fund     941       20,713  
 
  ING Funds   ING Mid Cap Value Fund Class A     753       8,361  
 
  ING Funds   ING Russia Fund     1,617       35,058  
 
  American Funds Group   Income Fund of America     1,380       23,712  
 
  American Funds Group   Investment Company of America Fund     1,675       48,319  
 
  Janus   Janus Mid Cap Value Fund     551       11,244  
 
  John Hancock Funds   John Hancock Technology Fund     2,633       10,215  
 
  Kelmoore Funds   Kelmoore Strategy Eagle Fund Class A     4,287       7,717  
 
  Lord Abbett Family of Funds   Lord Abbett Mid-Cap Value A Fund     1,131       21,297  

13


 

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003

                         
                    (e)
    (b)   (c)           Current
(a)
  Identity of Issuer or Borrower
  Description of Investment
  Shares Held
  Value
 
  Lord Abbett Family of Funds   Lord Abbett Affiliated Fund     182       2,471  
 
  MFS Family of Funds   MFS Mid Cap Growth Fund     894       6,986  
 
  Matthews Funds   Matthews Pacific Tiger Fund     873       11,475  
 
  Matthews Funds   Matthews Asian Growth & Income Fund     462       6,391  
 
  Matthews Funds   Matthews Japan Fund     998       13,187  
 
  Matthews Funds   Matthews Asian Technology Fund     650       3,138  
 
  The Munder Funds   Munder Healthcare Fund Class A     344       7,287  
 
  The Munder Funds   Munder Future Technology Fund Class A     6,564       25,402  
 
  The Munder Funds   Munder Micro Cap Equity Fund Class A     41       1,362  
 
  The Munder Funds   Munder Small Cap Value Fund Class A     159       3,437  
 
  The Munder Funds   Munder NetNet Fund Class A     1,004       16,822  
 
  The Munder Funds   Munder Power Plus Fund Class A     1,739       15,200  
 
  Navellier Performance Funds   Navellier Aggressive Growth Fund     467       5,500  
 
  Navellier Performance Funds   Navellier Mid Cap Growth Fund Class A     572       13,034  
 
  American Funds Group   New Perspective Fund     683       16,718  
 
  One Group   One Group Ultra Short Term Bond Fund     5,049       50,139  
 
  Oppenheimer Funds   Oppenheimer Enterprise Fund Class A     183       2,140  
 
  Oppenheimer Funds   Oppenheimer Main Street Fund Class A     2,051       67,269  
 
  Oppenheimer Funds   Oppenheimer Quest Balanced Value Fund     336       5,492  
 
  Oppenheimer Funds   Developing Markets Fund Class A     175       3,612  
 
  PBHG Funds   PBHG Clipper Focus Fund     1,016       16,762  
 
  PIMCO Funds   PIMCO PEA Renaissance Fund Class A     3,093       71,252  
 
  PIMCO Funds   PIMCO Total Return Fund Class A     143       1,535  
 
  PIMCO Funds   PIMCO Real Return Fund Class A     6,546       73,642  
 
  PIMCO Funds   PIMCO Short Term Fund Class A     455       4,567  
 
  Parnassus Funds   Parnassus Equity Income Fund     337       8,089  
 
  PIMCO Funds   PIMCO Commodity Real Return Fund     1,767       24,070  

14


 

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003

                         
                    (e)
    (b)   (c)           Current
(a)
  Identity of Issuer or Borrower
  Description of Investment
  Shares Held
  Value
 
  Putnam Funds   Putnam International Opportunity Fund     1,214       12,536  
 
  N/I Numeric Investors Funds   Numeric Investors Small Cap Value Fund     558       10,714  
 
  N/I Numeric Investors Funds   N/I Numeric Investors Growth Fund     795       10,548  
 
  RS Funds   RS Diversified Growth Fund     92       2,046  
 
  Royce Funds   Royce Opportunity Fund     919       11,151  
 
  Royce Funds   Royce Total Return Fund     1,079       11,535  
 
  Rydex Funds   Rydex Venture 100 Fund Class H     5,981       159,039  
 
  Rydex Funds   Rydex Velocity 100 Fund Class H     28,431       563,212  
 
  Rydex Funds   Rydex Tempest 500 Fund     3,658       192,635  
 
  Rydex Funds   Rydex Titan 500 Fund     1,178       38,204  
 
  Rydex Funds   Rydex Large Cap Japan Fund     386       11,524  
 
  Rydex Funds   Rydex Telecommunications Fund     3,688       52,291  
 
  Rydex Funds   Rydex Juno Fund     3,170       66,601  
 
  Scudder Funds   Scudder Japanese Equity Fund     1,503       14,955  
 
  Scudder Funds   Scudder Technology Fund     230       2,551  
 
  Selected Funds   Selected American Shares Fund     144       4,768  
 
  Seligman Group   Seligman Communications Fund     857       19,705  
 
  Tamarack Funds   Tamarack Micro Cap Value Fund Class S     804       13,895  
 
  American Funds Group   Small Cap World Fund     136       3,646  
 
  Sun America Funds   Sun America Focused 2000 Growth Fund     956       14,370  
 
  Sun America Funds   Sun America Focused Growth & Income Fund     85       1,333  
 
  Sun America Funds   Sun America Focused 2000 Value Fund     630       12,232  
 
  Sun America Funds   Sun America Focused Large Cap Growth Fund     913       15,884  
 
  Sun America Funds   Sun America Focused Multi Cap Value Fund     659       12,015  
 
  Turner Investment Partners   Turner Small Cap Value Fund     306       6,873  
 
  Franklin Templeton Investments   Templeton Developing Markets Fund     10,413       156,098  
 
  Franklin Templeton Investments   Templeton World Fund     11,392       192,186  

15


 

The H&R Block Retirement Savings Plan
EIN: 43-1910017, Plan Number: 002
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003

                         
                    (e)
    (b)   (c)           Current
(a)
  Identity of Issuer or Borrower
  Description of Investment
  Shares Held
  Value
 
  Franklin Templeton Investments   Templeton Foreign Fund     24,052       255,913  
 
  Franklin Templeton Investments   Templeton Growth Fund     1,495       30,905  
 
  Franklin Templeton Investments   Templeton Global Opportunity Fund     3,866       53,388  
 
  Franklin Templeton Investments   Templeton Global Bond Fund     4,803       49,034  
 
  Scudder Investments   Scudder Tax Advantage Dividend Fund     480       5,368  
 
  Van Eck Funds   Van Eck International Investors Gold Fund     492       5,723  
 
  Vanguard Group   Vanguard Health Care Fund     229       27,584  
 
  Vanguard Group   Vanguard Explorer Fund     160       10,480  
 
  Vanguard Group   Vanguard Institutional Index 500     19       1,919  
 
  Vanguard Group   Vanguard Index Small Cap Fund     90       2,033  
 
  The World Fund   Vontobel Eastern European Equity Fund     765       9,818  
 
  Delaware Investments   Delaware Select Growth Fund Class A     302       6,319  
 
  American Funds Group   Washington Mutual Investment Fund     2,438       70,171  
 
  The Reserve Funds   Reserve Funds Primary Fund     1,040,944       1,040,944  
 
                   
 
 
 
                    6,721,478  
*
  Plan participants   Participant Loans, Interest range: 3.7% to 10.5%             7,242,971  
 
                   
 
 
Total investments
              $ 358,166,608  
 
                   
 
 

Column (d) omitted as cost information is not required for participant directed assets.

*       Indicates party-in-interest to the Plan.

16


 

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

         
  H&R Block Retirement Savings Plan
 
 
Date June 28, 2004  By:   /s/ Melanie K. Coleman    
    Melanie K. Coleman   
    Corporate Controller H&R Block, Inc.   

17


 

         

Exhibit Index

         
Exhibit No.
  Description
  23.1    
Consent of Independent Registered Public Accounting Firm.
         
  23.2    
Consent of Independent Registered Public Accounting Firm.

 

exv23w1
 

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-56400) of H&R Block, Inc. of our report dated June 25, 2004 relating to the financial statements and supplemental schedule of the H&R Block Retirement Savings Plan, which report appears in this Form 11-K.

/s/ KPMG LLP

Kansas City, Missouri
June 28, 2004

18

exv23w2
 

EXHIBIT 23.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-56400) of H&R Block, Inc. of our report dated June 27, 2003 relating to the financial statements of the H&R Block Retirement Savings Plan, which appears in this Form 11-K.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri
June 28, 2004

19