<PAGE> 1
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: February 21, 1995
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HOUSEHOLD FINANCE CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-75 36-1239445
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(State or other (Commission (IRS Employer
jurisdiction of File Identification
incorporation) Number) Number)
2700 Sanders Road, Prospect Heights, Illinois 60070
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 564-5000
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Item 5. Other Events
Set forth in the Exhibit hereto is selected unaudited
financial information which presents the results of
operations for Household Finance Corporation (the
"Company") as of and for the years ended December 31,
1994 and 1993.
Item 7. Financial Statements and Exhibits
(a) Financial statements of businesses acquired.
Not Applicable
(b) Pro forma financial information.
Not Applicable
(c) Exhibits.
No. Exhibit
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27 Financial data schedule.
99 Selected unaudited financial statements
with respect to operations of Household
Finance Corporation as of and for the
years ended December 31, 1994 and 1993.
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Signature
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Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION
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(Registrant)
By: /s/ David A. Schoenholz
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David A. Schoenholz
Vice President-
Chief Accounting Officer and
Chief Financial Officer
(a Prinicpal Financial Officer),
Director and on behalf of Household
Finance Corporation
Dated: February 21, 1995
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Exhibit Index
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Exhibit
No. Exhibit
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27 Financial data schedule.
99 Selected unaudited financial statements with
respect to operations of Household Finance
Corporation as of and for the years ended
December 31, 1994 and 1993.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE FOLLOWING SUMMARY FINANCIAL INFORMATION OF THE COMPANY AND ITS
SUBSIDIARIES IS QUALIFIED IN ITS ENTIRETY BY THE DETAILED INFORMATION
AND FINANCIAL STATEMENTS PREVIOUSLY FILED WITH THE SECURITIES &
EXCHANGE COMMISSION.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<CASH> 97,300
<SECURITIES> 7,249,600
<RECEIVABLES> 10,151,200
<ALLOWANCES> 595,400
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 456,400
<DEPRECIATION> 244,900
<TOTAL-ASSETS> 21,011,400
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 7,728,300
<COMMON> 1
0
100,000
<OTHER-SE> 1,859,099
<TOTAL-LIABILITY-AND-EQUITY> 21,011,400
<SALES> 0
<TOTAL-REVENUES> 2,728,900
<CGS> 0
<TOTAL-COSTS> 1,314,800
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 435,900
<INTEREST-EXPENSE> 618,200
<INCOME-PRETAX> 360,000
<INCOME-TAX> 103,600
<INCOME-CONTINUING> 256,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 256,400
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>FINANCIAL STATEMENTS OF THE COMPANY WERE PREPARED IN ACCORDANCE WITH
FINANCIAL INSTITUTION INDUSTRY STANDARDS. ACCORDINGLY, THE COMPANY'S
BALANCE SHEETS WERE NON-CLASSIFIED.
</FN>
</TABLE>
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EXHIBIT 99
HOUSEHOLD FINANCE CORPORATION AND SUBSIDIARIES
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
In millions.
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Year ended December 31 1994 1993
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<S> <C> <C>
Finance income $1,496.8 $1,318.1
Interest income from noninsurance
investment securities 38.7 40.9
Interest expense 618.2 510.2
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Net interest margin 917.3 848.8
Provision for credit losses on owned
receivables 435.9 494.5
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Net interest margin after provision
for credit losses 481.4 354.3
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Securitization and servicing fee income 373.9 383.4
Insurance premiums and contract revenues 228.3 242.6
Investment income 505.8 552.1
Fee income 83.1 60.7
Other income 2.3 77.5
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Total other revenues 1,193.4 1,316.3
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Salaries and fringe benefits 236.7 221.9
Other operating expenses 633.4 603.7
Policyholders' benefits 444.7 517.2
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Total costs and expenses 1,314.8 1,342.8
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Income before income taxes 360.0 327.8
Income taxes 103.6 107.4
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Net income $ 256.4 $ 220.4
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/TABLE
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HOUSEHOLD FINANCE CORPORATION AND SUBSIDIARIES
BALANCE SHEETS
<TABLE>
<CAPTION>
In millions.
December 31 1994 1993
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash $ 97.3 $ 27.8
Investment securities (fair value of
$7,205.7 and $7,317.8) 7,249.6 7,082.0
Receivables, net 10,476.3 10,364.6
Assets pending sale 398.3 -
Advances to parent company and affiliates 482.3 361.7
Deferred insurance policy acquisition costs 621.4 381.6
Acquired intangibles 357.2 246.7
Properties and equipment 211.5 202.2
Assets acquired through foreclosure 176.3 428.5
Other assets 941.2 755.1
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Total assets $21,011.4 $19,850.2
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LIABILITIES AND SHAREHOLDER'S EQUITY
Debt:
Commercial paper, bank and other
borrowings $ 3,800.6 $ 4,321.8
Senior and senior subordinated debt (with
original maturities over one year) 7,728.3 6,813.7
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Total debt 11,528.9 11,135.5
Insurance policy and claim reserves 6,643.4 5,981.5
Other liabilities 880.0 942.7
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Total liabilities 19,052.3 18,059.7
Preferred stock 100.0 100.0
Common shareholder's equity 1,859.1 1,690.5
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Total liabilities and shareholder's equity $21,011.4 $19,850.2
=============================================================================================
/TABLE
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INVESTMENT SECURITIES
<TABLE>
<CAPTION>
1994 1993
- ------------------------------------------------------------------------------------------------
In millions. Carrying Fair Carrying Fair
At December 31 Value Value Value Value
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRADING INVESTMENTS
Government securities and other $ 2.9 $ 2.9 $ 11.9 $ 11.9
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AVAILABLE-FOR-SALE INVESTMENTS
Marketable equity securities 53.9 53.9 76.2 76.2
Corporate debt securities 2,545.9 2,545.9 2,099.7 2,099.7
Government debt securities 211.3 211.3 326.1 326.1
Mortgage-backed securities 817.9 817.9 1,075.5 1,075.5
Other 62.5 62.5 244.1 244.1
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Subtotal 3,691.5 3,691.5 3,821.6 3,821.6
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HELD-TO-MATURITY INVESTMENTS
Corporate debt securities 1,827.4 1,818.3 1,739.0 1,930.7
Government debt securities 23.1 20.6 23.2 25.4
Mortgage-backed securities 1,063.1 1,041.9 772.2 809.0
Mortgage loans on real estate 161.9 158.5 222.4 226.0
Policy loans 72.7 72.7 81.6 81.6
Other 298.1 290.4 310.5 312.0
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Subtotal 3,446.3 3,402.4 3,148.9 3,384.7
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Accrued investment income 108.9 108.9 99.6 99.6
- ------------------------------------------------------------------------------------------------
Total investment securities $7,249.6 $7,205.7 $7,082.0 $7,317.8
================================================================================================
</TABLE>
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RECEIVABLES
<TABLE>
<CAPTION>
In millions.
At December 31 1994 1993
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
First mortgage $ 132.9 -
Home equity 1,437.5 $ 1,557.1
Other secured 141.9 347.1
Bankcard 2,663.0 2,103.8
Merchant participation 1,843.4 2,054.4
Other unsecured 2,865.9 2,236.1
Equipment financing and other commercial 1,066.6 1,851.3
- ---------------------------------------------------------------------------------------------
Total receivables owned 10,151.2 10,149.8
Accrued finance charges 176.5 151.6
Credit loss reserve for owned receivables (413.7) (452.7)
Unearned credit insurance premiums and
claims reserves (45.9) (49.8)
Amounts due and deferred from
receivables sales 789.9 700.2
Reserve for receivables serviced
with limited recourse (181.7) (134.5)
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Total receivables owned, net 10,476.3 10,364.6
Receivables serviced with
limited recourse 7,808.8 7,131.1
Receivables serviced with no recourse 1,312.9 1,649.5
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Total receivables owned or serviced, net $19,598.0 $19,145.2
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</TABLE>
ASSETS PENDING SALE
In the fourth quarter of 1994 the Company formed a joint venture,
maintaining a 50 percent ownership interest, and entered into an agreement
to sell performing commercial receivables to the venture on a non-recourse
basis with a net book value of $398 million. These assets have been
separately disclosed as Assets Pending Sale in the accompanying Balance
Sheets at December 31, 1994. The joint venture received commitments for
third-party, non-recourse financing to complete the transaction, which is
scheduled to close in the first quarter of 1995.
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