<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C., 20549
--------------------
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1995 Commission File Number 33-46530
--------------------
THE FINOVA GROUP INC. SAVINGS PLAN
(Full title of the plan and the address of the
plan, if different from that of the issuer named below.)
THE FINOVA GROUP INC.
(Name of the issuer of securities held
pursuant to the plan.)
1850 N. Central Avenue, P.O. Box 2209
Phoenix, Arizona 85002 - 2209
(Address of its principal executive office.)
<PAGE> 2
THE FINOVA GROUP INC. SAVINGS PLAN
TABLE OF CONTENTS
FINANCIAL STATEMENTS AND EXHIBITS
Financial Statements
Page(s)
-------
Independent Auditors' Report 1
Statements of Net Assets Available for
Benefits - December 31, 1995 and 1994 2
Statements of Changes in Net Assets Available for
Benefits - for the Years Ended December 31, 1995
and 1994 3
Notes to Financial Statements 4 - 13
Supplemental Schedules 14 - 16
Signatures 17
Exhibits 18 - 19
<PAGE> 3
INDEPENDENT AUDITORS' REPORT
To The Administration Committee and
Plan Participants of
The FINOVA Group Inc. Savings Plan
Phoenix, Arizona
We have audited the accompanying statements of net assets available for benefits
of The FINOVA Group Inc. Savings Plan (the "Plan") as of December 31, 1995 and
1994, and the related statements of changes in net assets available for benefits
for the years then ended. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 1995
and 1994, and the changes in net assets available for benefits for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules on pages 14
through 16 are presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in our audit of
the basic 1995 financial statements and, in our opinion, are fairly stated, in
all material respects when considered in relation to the basic financial
statements taken as a whole.
/s/ DELOITTE & TOUCHE LLP
- ----------------------------
Phoenix, Arizona
June 25, 1996
1
<PAGE> 4
THE FINOVA GROUP INC. SAVINGS PLAN
---------------------------------------------------------------------
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------------
ASSETS 1995 1994
----------- -----------
<S> <C> <C>
INVESTMENTS, at fair value:
Shares of registered investment companies:
Vanguard Windsor Fund $ 4,183,368 $ 2,495,186
T. Rowe Price Stable Value Fund 3,827,925 3,249,323
T. Rowe Price Growth & Income Fund 2,900,165 1,619,988
T. Rowe Price New America Growth Fund 2,829,623 1,342,975
T. Rowe Price International Stock Fund 1,738,284 1,093,517
T. Rowe Price Spectrum Income Fund 1,213,836 864,580
T. Rowe Price Equity Index Fund 1,520,603 691,936
T. Rowe Price Prime Reserve Fund 897,025 625,877
Vanguard Bond Index Fund 596,583 333,709
Common Stock:
Bell Atlantic Common Stock 6,064,839 6,472,131
The FINOVA Group Inc. Common Stock 3,204,812 1,344,261
The Dial Corp Common Stock 1,734,072 1,470,362
U. S. Bancorp Common Stock 81,239 81,647
Participant notes receivable 1,232,142 873,016
----------- -----------
Total investments 32,024,516 22,558,508
----------- -----------
CONTRIBUTIONS RECEIVABLE 139,876 50,448
DIVIDENDS RECEIVABLE 24,958 19,504
CASH 6,225 45,796
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $32,195,575 $22,674,256
=========== ===========
</TABLE>
See Notes to Financial Statements
2
<PAGE> 5
THE FINOVA GROUP INC. SAVINGS PLAN
---------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
ADDITIONS: 1995 1994
----------- -----------
<S> <C> <C>
Contributions:
Employee wage reductions $ 3,173,056 $ 1,759,451
Employer 993,722
After-tax employee deductions 156,714 238,337
----------- -----------
Total contributions 4,323,492 1,997,788
----------- -----------
Transfer of assets from Bell
Atlantic Savings Plan 12,509,113
Rollover deposits 909,356 792,474
Investment income:
Dividends and interest income 1,716,378 952,506
Net appreciation in fair value of investments 5,311,186 63,524
----------- -----------
Total investment income 7,027,564 1,016,030
----------- -----------
Total additions 12,260,412 16,315,405
----------- -----------
DEDUCTIONS - distributions to participants 2,739,093 1,360,054
----------- -----------
NET INCREASE 9,521,319 14,955,351
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 22,674,256 7,718,905
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $32,195,575 $22,674,256
=========== ===========
</TABLE>
See Notes to Financial Statements
3
<PAGE> 6
THE FINOVA GROUP INC. SAVINGS PLAN
---------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
1. DESCRIPTION OF THE PLAN
The following brief description of The FINOVA Group Inc. Savings Plan
(formerly GFC Financial Corporation Capital Accumulation Plan) (the
"Plan") is provided for general information purposes only. Participants
should refer to the Plan documents for a more complete description of
the Plan's provisions.
a. GENERAL - The Plan was established March 18, 1992 (date of
inception) in connection with the spin-off of The FINOVA Group
Inc. and its subsidiaries (the "Company" or "FINOVA")(formerly
GFC Financial Corporation) by The Dial Corp ("TDC"). The
assets of the Plan were formerly held in the Dial Companies
Capital Accumulation Plan ("Dial Plan") and The Dial Corp
Employee Stock Ownership Plan ("Dial ESOP") for the benefit
of employees of the Company participating in the Dial Plan and
the Dial ESOP. These amounts were transferred to the Plan in
1992. Employees of the Company are eligible to become a
participant in the Plan in the month following employment with
FINOVA. Employees are able to reduce their salaries on a
pre-tax basis which the Company contributes to the Plan.
After-tax contributions are also permitted. The Plan is
subject to various regulations, particularly those under
Internal Revenue Code Section 401(k) and the Employee
Retirement Income Security Act of 1974 ("ERISA").
b. INVESTMENT PROGRAMS - Receipts of the Plan are invested by the
Plan's trustee, T. Rowe Price, at the designation of the
participants. Except as noted below, the Plan offers
participants the following funds in which to invest pre-tax,
after-tax and rollover deposits.
(1) VANGUARD WINDSOR FUND - This managed fund invests in
the common stock of other companies. The fair value
of the fund is dependent on the market value of the
stocks. The dividends received are reinvested.
4
<PAGE> 7
THE FINOVA GROUP INC. SAVINGS PLAN
---------------------------------------------------------------------
(2) T. ROWE PRICE STABLE VALUE FUND - This fund invests
in a diversified portfolio of Guaranteed Investment
Contracts ("GIC") issued by insurance companies, bank
investment contracts issued by financial institutions
and strategic investment contracts issued by
insurance companies, financial institutions and other
entities. Income is earned based upon a blended
interest rate determined by the various investments
and is reinvested. The fair value of the fund
approximates contract value. Interest rates for the
fund's underlying investment contracts ranged from
4.75% to 9.88% at December 31, 1995, allowing for a
blended rate of return for the fund for 1995
of 6.28%.
(3) T. ROWE PRICE GROWTH & INCOME FUND - This managed
fund invests primarily in the common stock of
companies with prospects for appreciation and
increasing dividends. The fair value of the fund is
dependent on the market value of the stocks. The
dividends received are reinvested.
(4) T. ROWE PRICE NEW AMERICA GROWTH FUND - This managed
fund invests primarily in the common stock of United
States growth companies which operate in service
industries. The fair value of the fund is dependent
on the market value of the stocks. The dividends
received are reinvested.
(5) T. ROWE PRICE INTERNATIONAL STOCK FUND - This managed
fund invests primarily in the common stock of
established companies outside the United States. The
fair value of the fund is dependent on the market
value of the stocks. The dividends received are
reinvested.
(6) T. ROWE PRICE SPECTRUM INCOME FUND - This managed
fund invests primarily in a diversified group of T.
Rowe Price mutual funds which, in turn, invest
principally in fixed income securities. The fair
value of the fund is dependent on the market value of
the invested funds. The dividends received are
reinvested.
(7) T. ROWE PRICE EQUITY INDEX FUND - This managed fund
invests in the common stock of other companies. The
fair value of the fund is dependent on the market
value of the stocks. The dividends received are
reinvested.
(8) T. ROWE PRICE PRIME RESERVE FUND - This managed fund
invests in short-term money market instruments such
as certificates of deposit, treasury bills and
corporate notes which earn income based on short-term
interest rates. The fair value of the fund is the
cost basis of the investment. The income received is
reinvested.
5
<PAGE> 8
THE FINOVA GROUP INC. SAVINGS PLAN
---------------------------------------------------------------------
(9) VANGUARD BOND INDEX FUND - This managed fund invests
in U.S. government and corporate bonds and
mortgage-backed securities, which earn income based
on interest rates. The fair value of the fund is
dependent on the market value of the investments.
The income received is reinvested.
(10) BELL ATLANTIC COMMON STOCK - Funds are invested in
the common stock of Bell Atlantic. Participants are
not permitted to make new investments in this stock
and have three years, beginning January 1, 1995, to
liquidate their holdings. Effective January 1, 1995,
any dividends paid on this stock will be reinvested
in accordance with participants' current investment
elections. The fair value of this stock is dependent
upon the fluctuations in its market value.
(11) THE FINOVA GROUP INC. COMMON STOCK - Funds are
invested in the common stock of FINOVA, and any
dividends paid on this stock are reinvested in FINOVA
common stock. The fair value of this stock is
dependent upon the fluctuations in its market value.
(12) THE DIAL CORP COMMON STOCK - Funds are invested in
the common stock of TDC. Participants are not
permitted to make new investments in this stock and
have three years, beginning January 1, 1995, to
liquidate their holdings. Effective January 1, 1995,
any dividends paid on this stock will be reinvested
in accordance with participants' current investment
elections. The fair value of this stock is dependent
upon the fluctuations in its market value.
(13) U.S. BANCORP COMMON STOCK - This fund is invested in
the common stock of U.S. Bancorp. Participants are
not permitted to make new investments in this stock
and have three years, beginning January 1, 1995, to
liquidate their holdings. Effective January 1, 1995,
any dividends paid on this stock will be reinvested
in accordance with participants' current investment
elections. The fair value of this stock is dependent
upon the fluctuations in its market value.
(14) PARTICIPANT NOTES RECEIVABLE - The Plan allows
participants to borrow up to 50% of their vested
account balance, subject to certain restrictions.
Such loans have terms of one to five years, except
residential mortgage loans, which may have terms up
to 25 years. The Plan allows participants to have two
loans outstanding concurrently.
c. CONTRIBUTIONS - Voluntary wage reductions may be elected by
the employee. These pre-tax reductions are contributed to the
Plan by the Company and may range from 1% to 15% of taxable
compensation ("as defined"). The first 6% of wage reductions
must be made on a pre-tax basis. Each employee may elect an
after-tax contribution equal to the difference between their
pre-tax contributions and 15%.
6
<PAGE> 9
THE FINOVA GROUP INC. SAVINGS PLAN
---------------------------------------------------------------------
The Company's matching contributions begin for employees
participating in the Plan on the anniversary of their
first year of employment. During 1994, the matching
contributions were based on employee pre-tax salary
reductions to the Plan, up to a maximum of 100% of the first
3% of salary reduction. Effective January 1, 1995, the
matching contributions are based on employee pre-tax salary
reductions to the Plan, up to a maximum of 100% of the first
6% of salary reduction. The first 3% of the Company's
matching contributions are invested in FINOVA's common stock
to be held in FINOVA's Employee Stock Ownership Plan
("ESOP"). The remaining 3% can be invested in any of the
Plan's qualified investments, including FINOVA common stock.
No employer contributions are made based on after-tax
contributions. The Company's contributions are at the
discretion of the Company's Board of Directors. All
contributions are limited to the applicable amounts as
prescribed by the Internal Revenue Code.
d. DISTRIBUTIONS - Distributions of Plan assets primarily occur
from participant termination from the Company, financial
hardship, disablement, retirement or death. Other
distributions may occur in accordance with the Plan documents
and current ERISA regulations.
e. VESTING - Contributions to the Plan are 100% vested and
nonforfeitable at all times.
f. PARTICIPANT ACCOUNTS - For each participant, various accounts
are maintained to record employee pre-tax wage reductions,
after-tax employee deductions, Company matching contributions
and participant rollover deposits transferred to the Plan. The
benefit to which a participant is entitled is the total
benefit which can be provided from the combined amount of
these participant accounts.
g. PLAN ADMINISTRATION - The Plan is administered by a committee
of at least three persons appointed by the Board of Directors
of the Company. Expenses of maintaining the Plan were paid by
the Company in 1995 and 1994, at the Company's option.
h. PLAN TERMINATION - While it is the Company's intention to
continue the Plan, the Company has the right to terminate or
amend the Plan at any time.
i. TRICON ACQUISITION - On April 30, 1994, FINOVA acquired all of
the outstanding stock of Tricon Capital Corporation ("Tricon")
from Bell Atlantic Corporation. The balances in the
participant accounts of retained employees who participated in
the Bell Atlantic Savings Plan were transferred to the Plan in
1994.
7
<PAGE> 10
THE FINOVA GROUP INC. SAVINGS PLAN
---------------------------------------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. BASIS OF ACCOUNTING - The financial statements of the Plan are
prepared under the accrual basis of accounting.
b. INVESTMENT VALUE AND INCOME RECOGNITION - The Plan's
investments are stated at fair value. Shares of registered
investment companies are valued at quoted market prices, which
represent the net asset value of shares held by the Plan at
year-end. Common stock is valued at its quoted market price.
Participant notes receivable are valued at cost which
approximates fair value.
Purchases and sales of securities are recorded on a trade-date
basis. Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date.
c. PAYMENT OF BENEFITS - Benefits are recorded when paid.
d. USE OF ESTIMATES - The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosures at the date of the financial statements and the
reported amounts of additions and deductions during the
reporting period. Actual results could differ from those
estimates.
3. CHANGES IN NET ASSETS BY FUND
The following tables represent the changes in net assets available for
benefits by investment fund for the years ended December 31, 1995 and
1994:
8
<PAGE> 11
THE FINOVA GROUP INC. SAVINGS PLAN
------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
T. Rowe Price
--------------------------------------------------------------------------------
Vanguard Growth & New America International Spectrum Equity Prime
Windsor Stable Value Income Growth Stock Income Index Reserve
Fund Fund Fund Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 545,629 $ 444,572 $ 379,238 $ 354,696 $ 306,560 $ 146,148 $ 303,641 $104,136
Employer 166,950 154,814 124,914 113,586 99,665 51,047 92,688 44,174
After-tax employee deductions 16,734 19,443 10,317 18,553 30,464 12,110 16,237 3,202
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total contributions 729,313 618,829 514,469 486,835 436,689 209,305 412,566 151,512
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Rollover deposits 169,056 91,557 111,859 156,763 84,714 14,640 66,324 20,613
Loan payments 46,454 59,485 35,673 67,080 31,054 12,522 24,558 16,590
Investment income:
Dividends and interest income 472,066 222,320 159,466 135,417 52,335 75,280 56,184 40,954
Net investment appreciation 363,102 -- 434,220 566,078 117,229 107,560 280,558 --
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total investment income 835,168 222,320 593,686 701,495 169,564 182,840 336,742 40,954
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total additions 1,779,991 992,191 1,255,687 1,412,173 722,021 419,307 840,190 229,669
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
DEDUCTIONS:
Distribution to participants 106,575 539,722 233,089 212,140 116,227 80,535 11,096 11,951
New loans 84,911 128,063 51,458 125,047 58,341 37,696 63,711 11,780
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total deductions 191,486 667,785 284,547 337,187 174,568 118,231 74,807 23,731
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
INTERFUND TRANSFERS 99,677 254,196 309,037 411,662 97,314 48,180 63,284 65,210
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
NET INCREASE 1,688,182 578,602 1,280,177 1,486,648 644,767 349,256 828,667 271,148
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 2,495,186 3,249,323 1,619,988 1,342,975 1,093,517 864,580 691,936 625,877
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $4,183,368 $3,827,925 $2,900,165 $2,829,623 $1,738,284 $1,213,836 $1,520,603 $897,025
========== ========== ========== ========== ========== ========== ========== ========
</TABLE>
9
<PAGE> 12
THE FINOVA GROUP INC. SAVINGS PLAN
------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
T. Rowe Price
-----------------------------------------------------------------------------------
Vanguard Bell The FINOVA The Dial U.S.
Bond Atlantic Group Inc. Corp Bancorp
Index Common Common Common Common Plan
Fund Stock Stock Stock Stock Account Total
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $124,332 $ 0 $ 374,676 $ 0 $ 0 $ 89,428 $ 3,173,056
Employer 42,855 -- 103,029 -- -- -- 993,722
After-tax employee deductions 6,800 -- 22,854 -- -- -- 156,714
-------- ---------- ---------- ---------- ------- ---------- -----------
Total contributions 173,987 -- 500,559 -- -- 89,428 4,323,492
-------- ---------- ---------- ---------- ------- ---------- -----------
Rollover deposits 38,632 -- 155,198 -- -- -- 909,356
Loan payments 12,361 -- 31,215 13 -- (337,005) --
Investment income:
Dividends and interest income 33,924 315,649 42,026 42,008 2,989 65,760 1,716,378
Net investment appreciation 49,566 1,840,487 985,251 536,969 30,166 -- 5,311,186
-------- ---------- ---------- ---------- ------- ---------- -----------
Total investment income 83,490 2,156,136 1,027,277 578,977 33,155 65,760 7,027,564
-------- ---------- ---------- ---------- ------- ---------- -----------
Total additions 308,470 2,156,136 1,714,249 578,990 33,155 (181,817) 12,260,412
-------- ---------- ---------- ---------- ------- ---------- -----------
DEDUCTIONS:
Distribution to participants 7,054 1,035,769 181,949 77,693 -- 125,293 2,739,093
New loans 26,308 83,201 79,197 2,987 7,857 (760,557) --
-------- ---------- ---------- ---------- ------- ---------- -----------
Total deductions 33,362 1,118,970 261,146 80,680 7,857 (635,264) 2,739,093
-------- ---------- ---------- ---------- ------- ---------- -----------
INTERFUND TRANSFERS (12,234) (1,444,458) 407,448 (234,600) (25,706) (39,010) --
-------- ---------- ---------- ---------- ------- ---------- -----------
NET INCREASE 262,874 (407,292) 1,860,551 263,710 (408) 414,437 9,521,319
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 333,709 6,472,131 1,344,261 1,470,362 81,647 988,764 22,674,256
-------- ---------- ---------- ---------- ------- ---------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $596,583 $6,064,839 $3,204,812 $1,734,072 $81,239 $1,403,201 $32,195,575
======== ========== ========== ========== ======= ========== ===========
</TABLE>
10
<PAGE> 13
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
T. Rowe Price
-----------------------------------------------------------------------------------
Vanguard Growth & New America International Spectrum Equity Prime
Windsor Stable Value Income Growth Stock Income Index Reserve
Fund Fund Fund Fund Fund Fund Fund Fund
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 333,957 $ 293,772 $ 180,307 $ 177,940 $ 146,801 $ 89,553 $192,238 $ 75,216
After-tax employee
deductions 475 52,472 61,748 54,173 40,002 23,773 378 --
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total contributions 334,432 346,244 242,055 232,113 186,803 113,326 192,616 75,216
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Transfer of assets from Bell
Atlantic -- 1,256,535 1,382,505 1,090,802 876,702 847,044 -- --
Rollover deposits 309,948 107,045 1,645 1,141 30,384 -- 134,879 47,405
Loan payments 48,346 66,235 20,390 25,721 20,729 6,987 19,105 19,323
Investment income:
Dividends and interest income 231,176 145,562 69,092 32,625 71,087 40,052 23,140 21,955
Net investment appreciation
(depreciation) (246,661) -- (48,939) (19,896) (99,411) (30,939) (17,044) --
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total investment income (15,485) 145,562 20,153 12,729 (28,324) 9,113 6,096 21,955
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total additions 677,241 1,921,621 1,666,748 1,362,506 1,086,294 976,470 352,696 163,899
---------- ---------- ---------- ---------- ---------- -------- -------- --------
DEDUCTIONS:
Distribution to participants 196,718 396,917 43,969 38,812 59,970 54,003 21,942 32,755
New loans 109,644 71,321 18,685 13,575 17,678 947 26,839 33,123
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total deductions 306,362 468,238 62,654 52,387 77,648 54,950 48,781 65,878
---------- ---------- ---------- ---------- ---------- -------- -------- --------
INTERFUND TRANSFERS 106,640 90,021 15,894 32,856 84,871 (56,940) 55,549 9,615
---------- ---------- ---------- ---------- ---------- -------- -------- --------
NET INCREASE 477,519 1,543,404 1,619,988 1,342,975 1,093,517 864,580 359,464 107,636
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 2,017,667 1,705,919 -- -- -- -- 332,472 518,241
---------- ---------- ---------- ---------- ---------- -------- -------- --------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $2,495,186 $3,249,323 $1,619,988 $1,342,975 $1,093,517 $864,580 $691,936 $625,877
========== ========== ========== ========== ========== ======== ======== ========
</TABLE>
11
<PAGE> 14
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Vanguard Bell The FINOVA The Dial U.S.
Bond Atlantic Group Inc. Corp Bancorp
Index Common Common Common Common Plan
Fund Stock Stock Stock Stock Account Total
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 94,370 $ -- $ 158,396 $ -- $ -- $ 16,901 $ 1,759,451
After-tax employee
deductions 159 -- 5,157 -- -- -- 238,337
-------- ---------- ---------- ---------- -------- --------- -----------
Total contributions 94,529 -- 163,553 -- -- 16,901 1,997,788
-------- ---------- ---------- ---------- -------- --------- -----------
Transfer of assets from Bell
Atlantic -- 6,607,723 -- -- -- 447,802 12,509,113
Rollover deposits 116,143 -- 41,589 -- 2,295 -- 792,474
Loan payments 7,694 -- 33,767 36 -- (268,333) --
Investment income:
Dividends and interest income 18,053 190,452 25,411 42,892 3,974 37,035 952,506
Net investment appreciation
(depreciation) (23,169) 398,386 74,413 85,322 (8,538) -- 63,524
-------- ---------- ---------- ---------- -------- --------- -----------
Total investment income (5,116) 588,838 99,824 128,214 (4,564) 37,035 1,016,030
-------- ---------- ---------- ---------- -------- --------- -----------
Total additions 213,250 7,196,561 338,733 128,250 (2,269) 233,405 16,315,405
-------- ---------- ---------- ---------- -------- --------- -----------
DEDUCTIONS:
Distribution to participants 7,805 291,194 64,897 141,829 235 9,008 1,360,054
New loans 16,317 30,834 65,078 2,272 21,581 (427,894) --
-------- ---------- ---------- ---------- -------- --------- -----------
Total deductions 24,122 322,028 129,975 144,101 21,816 (418,886) 1,360,054
-------- ---------- ---------- ---------- -------- --------- -----------
INTERFUND TRANSFERS (60,518) (402,402) 156,487 (70,865) (6,583) 45,375 --
-------- ---------- ---------- ---------- -------- --------- -----------
NET INCREASE 128,610 6,472,131 365,245 (86,716) (30,668) 697,666 14,955,351
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 205,099 -- 979,016 1,557,078 112,315 291,098 7,718,905
======== ========== ========== ========== ======== ========= ===========
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $333,709 $6,472,131 $1,344,261 $1,470,362 $ 81,647 $ 988,764 $22,674,256
======== ========== ========== ========== ======== ========= ===========
</TABLE>
12
<PAGE> 15
THE FINOVA GROUP INC. SAVINGS PLAN
---------------------------------------------------------------------
4. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by T. Rowe
Price. T. Rowe Price also serves as the trustee as defined by the Plan.
5. FEDERAL INCOME TAX STATUS
The Plan has applied for a determination letter from the Internal
Revenue Service that the Plan is in compliance with the applicable
requirements of the Internal Revenue Code. The Plan Administrator
believes that the Plan is operating in compliance with all requirements
of Section 401(a) of the Internal Revenue Code and is exempt from
federal income tax under Section 501(a) of the Code.
13
<PAGE> 16
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1995
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<TABLE>
<CAPTION>
Column B Column C Column D Column E
- -------------------------------------------------------------------------------------------------------
Description of Investment Including
Identity of Issue, Borrower, Collateral, Rate of Interest, Maturity Current
Lessor or Similar Party Date, Par or Maturity Value Cost Value
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Vanguard Windsor Fund Common Stock Fund (287,912) $ 3,954,869 $ 4,183,368
T. Rowe Price Stable
Value Fund GIC Fund (3,827,925 shares) 3,827,925 3,827,925
T. Rowe Price Growth &
Income Fund Common Stock Fund (151,208 shares) 2,550,475 2,900,165
T. Rowe Price New America
Growth Fund Common Stock Fund (81,055 shares) 2,345,365 2,829,623
T. Rowe Price International
Stock Fund Common Stock Fund (142,133 shares) 1,711,598 1,738,284
T. Rowe Price Spectrum
Income Fund Bond Fund (107,993 shares) 1,139,836 1,213,836
T. Rowe Price Equity
Index Fund Common Stock Fund (88,356 shares) 1,260,436 1,520,603
T. Rowe Price Prime
Reserve Fund Money Market Fund (897,025 shares) 897,025 897,025
Vanguard Bond
Index Fund Bond Fund (58,835 shares) 571,314 596,583
Bell Atlantic Common
Stock Common Stock (90,689 shares) 4,443,782 6,064,839
The FINOVA Group Inc.
Common Stock Common Stock (66,421 shares) 2,190,717 3,204,812
The Dial Corp
Common Stock Common Stock (58,534) 1,146,450 1,734,072
U.S. Bancorp Common
Stock Common Stock (2,416 shares) 31,654 81,239
Participant Notes Receivable Participant Loans (rate of interest
6% to 11.5%), maturing in 1996
to 2015 1,232,142 1,232,142
-------------- --------------
$ 27,303,588 $ 32,024,516
============= =============
</TABLE>
14
<PAGE> 17
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
YEAR ENDED DECEMBER 31, 1995
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
<TABLE>
<CAPTION>
Column A Column B Column C Column D Column G Column H Column I
- --------------------------------------------------------------------------------------------------------------------
Current
Value of
Asset on
Identity of Party Description of Purchase Selling Cost of Transaction Net Gain/
Involved Asset Price Price Asset Date (Loss)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Series of
Transactions:
Vanguard Windsor
Fund Common Stock 318,748 302,542 318,748 16,206
Fund
Vanguard
Windsor Fund Common Stock 1,643,828 1,643,828
Fund
T. Rowe Price
Stable Value 921,022 921,022 921,022
Fund GIC Fund
T. Rowe Price
Stable Value
Fund GIC Fund 1,499,624 1,499,624
The FINOVA Group
Inc.
Common Common 265,315 211,764 265,315 53,551
Stock Stock
The FINOVA
Group Inc.
Common Common 1,210,853 1,210,853
Stock Stock
Bell Atlantic
Common Common 2,563,428 2,189,845 2,563,428 373,583
Stock Stock
T. Rowe Price
International Common Stock
Stock Fund Fund 354,368 362,411 354,368 (8,043)
T. Rowe Price
International Common Stock
Stock Fund Fund 881,906 881,906
</TABLE>
15
<PAGE> 18
THE FINOVA GROUP INC. SAVINGS PLAN
- -------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
YEAR ENDED DECEMBER 31, 1995
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
Column A Column B Column C Column D Column G Column H Column I
- --------------------------------------------------------------------------------------------------------------
Current
Value of
Asset on
Identity of Party Description of Purchase Selling Cost of Transaction Net Gain/
Involved Asset Price Price Asset Date (Loss)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Series of Transactions (continued):
T. Rowe Price
Growth & Common Stock
Income Fund Fund 387,916 356,412 387,916 31,504
T. Rowe Price
Growth & Common Stock
Income Fund Fund 1,233,871 1,233,871
T. Rowe Price New
America Growth Common Stock
Fund Fund 460,507 404,534 460,507 55,973
T. Rowe Price New
America Growth Common Stock
Fund Fund 1,381,078 1,381,078
</TABLE>
16
<PAGE> 19
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administrative Committee has duly caused this annual report to be signed on
its behalf by the undersigned thereunto duly authorized.
THE FINOVA GROUP INC. SAVINGS PLAN
Dated: June 26, 1996 Signature: /s/ William C. Roche
----------------------------------------
William C. Roche
Senior Vice President - Human Resources
Dated: June 26, 1996 Signature: /s/ Bruno A. Marszowski
------------------------------------------
Bruno A. Marszowski
Senior Vice President - Controller and
Chief Financial Officer
17
<PAGE> 20
THE FINOVA GROUP INC. SAVINGS PLAN
COMMISSION FILE NUMBER 33-46530
EXHIBIT INDEX
No. Title
------ -----------------------------
(23) Independent Auditors' Consent
18
<PAGE> 1
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-46530 of The FINOVA Group Inc. on Form S-8 of our report dated June 25, 1996,
appearing in this Annual Report on Form 11-K of The FINOVA Group Inc.
Savings Plan for the year ended December 31, 1995.
/s/ DELOITTE & TOUCHE LLP
- ----------------------------------
Phoenix, Arizona
June 25, 1996
19
