<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 10, 1997
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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 File (IRS Employer
jurisdiction of Number) Identification
incorporation) 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 847/564-5000
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Item 5. Other Events
Set forth in the Exhibit hereto is selected consolidated
financial information which presents the financial
position and results of operations for Household Finance
Corporation (the "Company") as of and for the years ended
December 31, 1996 and 1995.
Item 7. Financial Statements and Exhibits
(a) Financial statements of business acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
No. Exhibit
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27 Financial Data Schedule.
99 Selected consolidated financial statements
with respect to the operations of Household
Finance Corporation as of and for the years
ended December 31, 1996 and 1995.<PAGE>
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SIGNATURE
Pursuant to the requirement 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 Principal Financial Officer),
Director and on behalf of
Household Finance Corporation
Dated: February 10, 1997
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EXHIBIT INDEX
Exhibit No. Exhibit
- ----------- -------
27 Financial Data Schedule.
99 Selected consolidated financial statements with
respect to the operations of Household Finance
Corporation as of and for the years ended December 31,
1996 and 1995.
<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> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 228,500
<SECURITIES> 1,720,000
<RECEIVABLES> 16,086,800
<ALLOWANCES> 1,233,100
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 612,900
<DEPRECIATION> 344,200
<TOTAL-ASSETS> 20,579,800
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 10,648,300
<COMMON> 1
0
100,000
<OTHER-SE> 2,592,800
<TOTAL-LIABILITY-AND-EQUITY> 20,579,800
<SALES> 0
<TOTAL-REVENUES> 3,245,200
<CGS> 0
<TOTAL-COSTS> 1,261,700
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 522,800
<INTEREST-EXPENSE> 911,100
<INCOME-PRETAX> 549,600
<INCOME-TAX> 180,600
<INCOME-CONTINUING> 369,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 369,000
<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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Consolidated Statements of Income Exhibit 99
<TABLE>
<CAPTION>
Household Finance Corporation and Subsidiaries
In millions.
Year ended December 31 1996 1995
- ----------------------------------------------- -------- --------
<S> <C> <C>
Finance income $1,927.9 $1,724.6
Interest income from noninsurance
investment securities 35.9 33.9
Interest expense 911.1 824.6
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Net interest margin 1,052.7 933.9
Provision for credit losses on owned
receivables 522.8 511.0
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Net interest margin after provision
for credit losses 529.9 422.9
-------- ------
Securitization income 720.1 424.6
Insurance revenues 167.9 251.7
Investment income 145.2 453.8
Fee income 178.4 125.2
Other income 69.8 100.2
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Total other revenues 1,281.4 1,355.5
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Salaries and fringe benefits 388.0 289.3
Other operating expenses 669.7 599.6
Policyholders' benefits 204.0 452.3
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Total costs and expenses 1,261.7 1,341.2
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Income before income taxes 549.6 437.2
Income taxes 180.6 175.4
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Net income $ 369.0 $ 261.8
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/TABLE
<PAGE>
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Consolidated Balance Sheets
<TABLE>
<CAPTION>
Household Finance Corporation and Subsidiaries
In millions.
At December 31 1996 1995
- ----------------------------------------------- --------- ---------
<S> <C> <C>
Assets
Cash $ 228.5 $ 154.7
Investment securities 1,720.0 3,233.0
Receivables, net 16,391.7 12,665.0
Advances to parent company and affiliates 75.8 119.6
Acquired intangibles, net 938.2 418.7
Properties and equipment, net 268.7 286.2
Real estate owned 112.1 105.6
Other assets 844.8 810.6
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Total assets $20,579.8 $17,793.4
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Liabilities and Shareholder's Equity
Debt:
Commercial paper, bank and other
borrowings $ 5,223.5 $ 4,154.2
Senior and senior subordinated
debt (with original maturities
over one year) 10,648.3 8,257.5
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Total debt 15,871.8 12,411.7
Insurance policy and claim reserves 1,021.7 2,212.9
Other liabilities 993.5 931.7
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Total liabilities 17,887.0 15,556.3
Preferred stock 100.0 100.0
Common shareholder's equity:
Common stock, $1.00 par value, 1,000
shares authorized, 1,000 shares issued
at December 31, 1996 and 1995 and
additional paid-in capital 892.9 692.6
Retained earnings 1,721.5 1,359.8
Foreign currency translation adjustments (8.9) (9.0)
Unrealized gain (loss) on investments, net (12.7) 93.7
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Total common shareholder's equity 2,592.8 2,137.1
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Total liabilities and shareholder's equity $20,579.8 $17,793.4
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</TABLE>
