HR Block 2005 Annual Report Download - page 63

INTRODUCTION AND FORWARD LOOKING STATEMENTS
We have again chosen to combine our Annual Report on within our Annual Report and mailed to shareholders in August
Form 10-K, which we are required to file annually with the 2005 and will also be available on our website at
Securities and Exchange Commission (‘‘SEC’’), and our Annual www.hrblock.com.
Report to Shareholders. We hope that by including all of this In this report, and from time to time throughout the year, we
information in one document, you will find this Annual Report share our expectations for the Company’s future performance.
more useful and informative. These forward-looking statements are based upon current
On June 7, 2005, we determined it was appropriate to restate information, expectations, estimates and projections regarding
our previously issued consolidated financial statements, the Company, the industries and markets in which we operate,
including financial statements for the nine months ended and our assumptions and beliefs at that time. These statements
January 31, 2005 and financial statements for the fiscal years speak only as of the date on which they are made, are not
ended April 30, 2004 and 2003 and all related interim periods. The guarantees of future performance, and involve certain risks,
details of the restatement, including the issues and amounts, are uncertainties and assumptions, which are difficult to predict.
presented in Item 8, note 2 to our consolidated financial Therefore, actual outcomes and results could materially differ
statements. from what is expressed, implied or forecast in these forward-
Specified portions of our proxy statement, which will be filed looking statements. Words such as ‘‘believe,’’ ‘‘will,’’ ‘‘plan,’’
in August 2005, are listed as ‘‘incorporated by reference’’ in ‘‘expect,’’ ‘‘intend,’’ ‘‘estimate,’’ ‘‘approximate,’’ and similar
response to certain items. Our proxy statement will be printed expressions may identify such forward-looking statements.
PART I
ITEM 1. BUSINESS
GENERAL DEVELOPMENT OF BUSINESS ⬎⬎⬎
H&R Block is a diversified company with subsidiaries delivering operating subsidiaries providing financial services and products
tax, investment, mortgage and business services and products. to the general public. ‘‘H&R Block,’’ ‘‘the Company,’’ ‘‘we,’’ ‘‘our’’
For 50 years, we have been developing relationships with millions and ‘‘us’’ are used interchangeably to refer to H&R Block, Inc. or
of tax clients and our strategy is to expand on these relationships. to H&R Block, Inc. and its subsidiaries, as appropriate to the
Our Tax Services segment provides income tax return context.
preparation and other services and products related to tax return RECENT DEVELOPMENTS ⬎⬎⬎ On October 26, 2004, we
preparation to the general public in the United States, and in issued $400.0 million of 5.125% Senior Notes under our shelf
Canada, Australia and the United Kingdom. We also offer registration statements. The Senior Notes are due on October 30,
investment services and securities products through H&R Block 2014. The proceeds from the notes were used to repay our
Financial Advisors, Inc. (‘‘HRBFA’’). Our Mortgage Services $250.0 million in 63/4% Senior Notes, which were due on
segment offers a full range of home mortgage services through November 1, 2004. The remaining proceeds were used for
Option One Mortgage Corporation (‘‘Option One’’) and H&R working capital, capital expenditures, repayment of other debt
Block Mortgage Corporation (‘‘HRBMC’’). RSM McGladrey and other general corporate purposes. As of April 30, 2005, we
Business Services, Inc. (‘‘RSM’’) is a national accounting, tax and had $850.0 million available under our shelf registration
consulting firm primarily serving mid-sized businesses. statements.
On June 8, 2005, our Board of Directors declared a two-for-one
H&R BLOCK’S MISSION ⬎⬎⬎ stock split of the Company’s Common Stock in the form of a 100%
‘‘To help our clients achieve their financial objectives stock distribution, effective August 22, 2005, to shareholders of
by serving as their tax and financial partner.’’ record as of the close of business on August 1, 2005. All share and
per share amounts in this document have been adjusted to reflect
Key to achieving our mission is the enhancement of client the retroactive effect of the stock split.
experiences through consistent delivery of valuable services and Developments during fiscal year 2005 within our operating
advice. Operating through multiple lines of business allows us to segments are described below in ‘‘Description of Business.’’
better meet the changing financial needs of our clients.
H&R Block, Inc. was organized as a corporation in 1955 under
the laws of the State of Missouri, and is a holding company with
H&R BLOCK 2005 Form 10K
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