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EXHIBIT 12
HOUSEHOLD INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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<CAPTION>
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NINE MONTHS ENDED
SEPTEMBER 30,
(In millions) 2000 1999
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<S> <C> <C>
Net income $ 1,208.0 $ 1,047.6
Income taxes 633.7 515.3
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Income before income taxes 1,841.7 1,562.9
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Fixed charged:
Interest expense (1) 2,822.9 2,016.0
Interest portion of rentals (2) 40.0 33.4
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Total fixed charges 2,862.9 2,049.4
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Total earnings as defined $ 4,704.6 $ 3,612.3
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Ratio of earnings to fixed charges 1.64 1.76
Preferred stock dividends (3) $ 10.5 $ 10.4
Ratio of earnings to combined fixed charges
and preferred stock dividends 1.64 1.75
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(1) For financial statement purposes, interest expense includes income earned
on temporary investment of excess funds, generally resulting from
over-subscriptions of commercial paper.
(2) Represents one-third of rentals, which approximates the portion
representing interest.
(3) Preferred stock dividends are grossed up to their pretax equivalent based
upon an effective tax rate of 34.4 percent for the nine months ended
September 30, 2000 and 33.0 percent for the same period in 1999.
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