<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/ X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995.
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (No Fee Required)
For the transition period from _______ to _______.
Commission file number 1-11481
HOUSEHOLD CAPITAL TRUST I
(Exact name of registrant as specified in its charter)
Delaware Applied for
(State or other jurisdiction (I.R.S.Employer
incorporation or organization) Identification No.)
2700 Sanders Road
Prospect Heights, IL 60070
(Address of principal executive offices)
Registrant's Telephone number, including
area code: 708-564-6150
Securities registered pursuant to Section 12(b) of the Act:
8.25% Trust Originated Preferred Securities
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes / X / No / /
At October 31, 1995, there were 92,800 shares of the registrant's
common securities outstanding, all of which are owned by Household
International, Inc.<PAGE>
<PAGE> 2
PART 1. FINANCIAL INFORMATION
1. Financial Statements
Household Capital Trust I
STATEMENTS OF INCOME
In thousands.
Period from May 16, 1995
(inception) through Three Months Ended
September 30, 1995 September 30, 1995
- ----------------------------------------------------------------
Interest income $2,002.3 $1,594.5
- ----------------------------------------------------------------
Net income $2,002.3 $1,594.5
================================================================
See notes to condensed financial statements.<PAGE>
<PAGE> 3
Household Capital Trust I
Balance Sheet
All dollar amounts are stated in thousands.
- -----------------------------------------------------------------
September 30, 1995
- -----------------------------------------------------------------
ASSETS
- ------
Notes receivable $77,320.0
Accrued interest receivable from parent company 1,594.5
- ----------------------------------------------------------------
Total assets $78,914.5
================================================================
LIABILITIES
- -----------
Dividends payable $ 1,594.5
SHAREHOLDERS' EQUITY
- --------------------
Preferred securities 75,000.0
Common shareholder's equity:
Common stock and paid-in capital, no par
value, 92,800 shares authorized, issued,
and outstanding 2,320.0
- ----------------------------------------------------------------
Total common shareholder's equity 2,320.0
- ----------------------------------------------------------------
Total liabilities and shareholders' equity $78,914.5
================================================================
See notes to condensed financial statements.<PAGE>
<PAGE> 4
Household Capital Trust I
Statement of Cash Flows
In thousands.
For the period
from May 16, 1995
(inception) through
September 30, 1995
- ----------------------------------------------------------------
CASH PROVIDED BY OPERATIONS
Net income $ 2,002.3
Adjustment to reconcile net income to
net cash provided by operations:
Accrued interest receivable from parent company (1,594.5)
- ----------------------------------------------------------------
Cash provided by operations 407.8
- ----------------------------------------------------------------
INVESTMENT IN OPERATIONS
Notes receivable purchased (77,320.0)
- ----------------------------------------------------------------
Cash decrease from investment in
operations (77,320.0)
- ----------------------------------------------------------------
FINANCING AND CAPITAL TRANSACTIONS
Preferred securities issued 75,000.0
Common stock issued 2,320.0
Dividends paid to parent company (12.5)
Dividends on preferred securities (395.3)
- ----------------------------------------------------------------
Cash increase from financing
and capital transactions 76,912.2
- ----------------------------------------------------------------
Increase (decrease) in cash -
Cash at beginning of period -
- ----------------------------------------------------------------
Cash at September 30 -
================================================================
See notes to condensed financial statements.<PAGE>
<PAGE> 5
Notes to Condensed Financial Statements
Household Capital Trust I (the "Trust") is a statutory business
trust formed under the laws of the State of Delaware on May 16,
1995. Household International, Inc., a Delaware corporation
("Household International"), owns all of the common securities of
the Trust. The Trust exists for the sole purpose of issuing
preferred securities and common securities and investing the
proceeds thereof in an equivalent amount of 8.25 percent Junior
Subordinated Deferrable Interest Notes ("junior subordinated
notes") of Household International.
1. PREFERRED SECURITIES
On June 8, 1995, the Trust issued 3 million 8.25 percent Trust
Originated Preferred Securities ("preferred securities") at $25 per
preferred security. Payments of distributions out of moneys held
by the Trust, and payments on liquidation of the Trust or the
redemption of the preferred securities are guaranteed by Household
International to the extent the Trust has funds available therefor.
The preferred securities will be redeemed at maturity or upon
redemption of the junior subordinated notes. On June 30, 2025 (or
not later than June 30, 2044, if Household International elects to
extend the maturity of the junior subordinated notes), the junior
subordinated notes shall be repaid, at which time preferred
securities and common securities of the Trust will be redeemed for
$25 per security plus accrued dividends. Dividends on the
preferred securities are cumulative, payable quarterly in arrears,
and are deferable at the option of Household International for up
to 20 consecutive quarters. Household International cannot pay
dividends on its preferred and common stocks during such
deferments.
2. NOTES RECEIVABLE
On June 8, 1995, the Trust purchased $77.32 million of junior
subordinated notes from Household International. The junior
subordinated notes mature on June 30, 2025 (or June 30, 2044, if
Household International elects to extend the junior subordinated
notes) and are redeemable by Household International in whole or in
part beginning on June 30, 2000. Interest on the notes is paid
quarterly in arrears.
3. INCOME TAXES
The Trust is a "grantor trust" for federal and state income tax
purposes. Accordingly, no tax provision has been established as
the Trust's activities are non-taxable.
4. TRANSACTIONS WITH PARENT COMPANY
Household International paid underwriting, legal and professional
fees of approximately $2.5 million on behalf of the Trust. The
Trust is not liable for these expenses.<PAGE>
<PAGE> 6
2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
In June 1995 the Trust issued 3 million 8.25 percent Trust
Originated Preferred Securities ("preferred securities") at $25 per
preferred security. Payments of distributions out of moneys held
by the Trust, and payments on liquidation of the Trust or the
redemption of the preferred securities are guaranteed by Household
International, Inc., ("Household International"), to the extent the
Trust has funds available therefor.
The Trust invested the proceeds of the above referenced preferred
securities in $77.32 million of 8.25 percent Junior Subordinated
Deferrable Interest Notes due on June 30, 2025 from Household
International.
<PAGE>
<PAGE> 7
PART II
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
12(a) Statement on the Computation of Ratio of Earnings to
Fixed Charges of the Trust.
12(b) Statement on the Computation of Ratio of Earnings to
Fixed Charges and to Combined Fixed Charges and
Preferred Stock Dividends of Household International
(incorporated by reference to Exhibit 12 of Household
International's Quarterly Report on Form 10-Q for the
three months ended September 30, 1995).
27 Financial Data Schedule.
(b) Reports on Form 8-K.
During the third quarter of 1995, the Trust filed no reports
on Form 8-K.<PAGE>
<PAGE> 8
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, Household Capital Trust I has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
HOUSEHOLD CAPITAL TRUST I
Dated: November 14, 1995
By: /s/ Edgar D. Ancona
------------------------------
Edgar D. Ancona,
Regular Trustee
/s/ Benjamin B. Moss, Jr.
------------------------------
Benjamin B. Moss, Jr.,
Regular Trustee
<PAGE>
<PAGE> 9
EXHIBIT INDEX
EXHIBIT
NO. DESCRIPTION
- ------- -----------
12(a) Statement on the Computation of Ratio of Earnings to
Fixed Charges of the Trust.
12(b) Statement on the Computation of Ratio of Earnings to
Fixed Charges and to Combined Fixed Charges and
Preferred Stock Dividends of Household International
(incorporated by reference to Exhibit 12 of Household
International's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1995).
27 Financial Data Schedule.
EXHIBIT 12(a)
HOUSEHOLD CAPITAL TRUST I
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(All dollar amounts are stated in thousands.)
For the period from May 16, 1995
(inception) through September 30 1995
- ----------------------------------------------------------------
Income from operations $2,002.3
- ----------------------------------------------------------------
Income taxes -
- ----------------------------------------------------------------
Fixed charges:
Interest expense -
- ----------------------------------------------------------------
Total earnings as defined $2,002.3
================================================================
Ratio of earnings to fixed charges NM
================================================================
NM - Not Meaningful
<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
<S> <C>
<PERIOD-TYPE> 9-MOS<F1>
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 78,914,500
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F2>
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 78,914,500
<CURRENT-LIABILITIES> 1,594,500<F2>
<BONDS> 0
<COMMON> 2,320,000
0
75,000,000
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 78,914,500
<SALES> 0
<TOTAL-REVENUES> 2,002,300
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,002,300
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,002,300
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,002,300
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>INCEPTION DATE IS MAY 16, 1995.
<F2>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>
