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, 1996 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>
THE FINOVA GROUP INC. SAVINGS PLAN
TABLE OF CONTENTS
FINANCIAL STATEMENTS AND EXHIBITS
- ---------------------------------
<TABLE>
<CAPTION>
Financial Statements
Page(s)
-------
<S> <C>
Independent Auditors' Report 1
Statements of Net Assets Available for
Benefits - December 31, 1996 and 1995 2
Statements of Changes in Net Assets Available for
Benefits - for the Years Ended December 31, 1996
and 1995 3
Notes to Financial Statements 4 - 15
Supplemental Schedules 16 - 18
Signatures 19
Exhibits 20 - 21
</TABLE>
<PAGE>
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, 1996 and
1995, 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, 1996
and 1995, 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 16
through 18 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 1996 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 13, 1997
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
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STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31,
-------------------------
ASSETS 1996 1995
----------- -----------
INVESTMENTS, at fair value:
Shares of registered investment companies:
Vanguard Windsor Fund $ 5,905,925 $ 4,183,368
T. Rowe Price New America Growth Fund 4,191,898 2,829,623
T. Rowe Price Stable Value Common Trust Fund 4,112,435 3,827,925
T. Rowe Price Growth & Income Fund 4,101,553 2,900,165
T. Rowe Price Equity Index Fund 2,488,632 1,520,603
T. Rowe Price International Stock Fund 2,483,778 1,738,284
T. Rowe Price Spectrum Income Fund 1,378,185 1,213,836
T. Rowe Price Prime Reserve Fund 1,228,952 897,025
Vanguard Bond Index Fund 752,477 596,583
T. Rowe Price Small-CAP Value Fund 568,433 --
T. Rowe Price International Bond Fund 47,079 --
Common Stock:
The FINOVA Group Inc. Common Stock 5,281,449 3,204,812
Bell Atlantic Common Stock 4,577,088 6,064,839
VIAD Corp Common Stock 765,003 1,734,072
The Dial Corporation Common Stock 687,301 --
U. S. Bancorp Common Stock 83,331 81,239
Participant notes receivable 1,356,505 1,232,142
----------- -----------
Total investments 40,010,024 32,024,516
----------- -----------
CONTRIBUTIONS RECEIVABLE 134,305 139,876
DIVIDENDS RECEIVABLE 28,186 24,958
CASH 78,407 6,225
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $40,250,922 $32,195,575
=========== ===========
See Notes to Financial Statements
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
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STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
ADDITIONS: 1996 1995
----------- -----------
<S> <C> <C>
Contributions:
Employee wage reductions $ 3,708,922 $ 3,173,056
Employer 1,188,595 993,722
After-tax employee deductions 161,015 156,714
----------- -----------
Total contributions 5,058,532 4,323,492
----------- -----------
Rollover deposits 749,118 909,356
Investment income:
Dividends and interest income 2,221,340 1,716,378
Net appreciation in fair value of investments 3,321,578 5,311,186
----------- -----------
Total investment income 5,542,918 7,027,564
----------- -----------
Total additions 11,350,568 12,260,412
----------- -----------
DEDUCTIONS - distributions to participants 3,295,221 2,739,093
NET INCREASE 8,055,347 9,521,319
NET ASSETS AVAILABLE FOR BENEFITS,
Beginning of year 32,195,575 22,674,256
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS,
End of year $40,250,922 $32,195,575
=========== ===========
</TABLE>
See Notes to Financial Statements
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
1. DESCRIPTION OF THE PLAN
The following brief description of The FINOVA Group Inc. Savings 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 were permitted through December 31,
1996; after-tax contributions are not allowed after December
31, 1996. 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. All dividends or income
generated by the following funds will be reinvested, except as
noted below.
(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.
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THE FINOVA GROUP INC. SAVINGS PLAN
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(2) 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.
(3) T. Rowe Price Stable Value Common Trust 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. The fair value of the fund
approximates contract value. Interest rates for the
fund's underlying investment contracts range from
4.75% to 9.88% at December 31, 1996, allowing for a
blended rate of return for the fund for 1996 of
6.28%.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(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.
<PAGE>
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.
(10) T. Rowe Price Small-CAP Value Fund - This managed
fund invests primarily in the common stock of
companies with a market value of $500 million or less
that appear undervalued by various measures, such as
price/earnings or price/book value ratios. The fair
market value of the fund is dependent on the market
value of the stocks.
(11) T. Rowe Price International Bond Fund - This managed
fund invests outside the U.S. in a diversified
portfolio of non dollar-denominated government and
corporate bonds with primarily high-quality credit
ratings. The fair value of the fund is dependent on
the market value of the investments.
(12) The FINOVA Group Inc. Common Stock - Funds are
invested in the common stock of FINOVA. The fair
value of this stock is dependent upon the
fluctuations in its market value.
(13) Bell Atlantic Common Stock - Funds are invested in
the common stock of Bell Atlantic Corporation.
Participants are not permitted to make new
investments in this stock and have until December 31,
1997 to liquidate their holdings. Any dividends paid
on this stock will be reinvested in accordance with
the participants' current investment elections. The
fair value of this stock is dependent upon the
fluctuations in its market value.
(14) Viad Corporation (formerly The Dial Corp) Common
Stock - Funds are invested in the common stock of
Viad Corp ("VIAD"). Participants are not permitted to
make new investments in this stock and have until
December 31, 1997 to liquidate their holdings. Any
dividends paid on this stock will be reinvested in
accordance with the participants' current investment
elections. The fair value of this stock is dependent
upon the fluctuations in its market value.
(15) The Dial Corporation Common Stock - Funds are
invested in the common stock of The Dial Corporation
("Dial"). On August 15, 1996, Dial was spun off from
VIAD. Each Dial shareholder received a dividend of
one share of Dial common stock for each share of VIAD
common stock. Participants are not permitted to make
new investments in this stock and have until December
31, 1997 to liquidate their holdings. Any dividends
paid on this stock will be reinvested in accordance
with the participants' current
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
investment elections. The fair market value of this
stock is dependent upon the fluctuations in its
market value.
(16) 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 until December 31, 1997 to liquidate their
holdings. Any dividends paid on this stock will be
reinvested in accordance with the participants'
current investment elections. The fair value of this
stock is dependent upon the fluctuations in its
market value.
(17) 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. The loan repayments
is reinvested according to the participants' current
investment elections.
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. Through December 31, 1996
employees were able to elect an after-tax contribution equal
to the difference between their pre-tax contributions and 15%.
Beginning January 1, 1997, after-tax contributions are not
allowed.
The Company's matching contributions begin for employees
participating in the Plan on the anniversary of their first
year of employment. 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.
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
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 1996 and 1995, 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.
<PAGE>
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, 1996 and
1995:
<PAGE>
<TABLE>
<CAPTION>
THE FINOVA GROUP INC. SAVINGS PLAN
-------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 1996
T. Rowe Price
------------------------------------------------------------------------
Vanguard New America Growth & Equity International Spectrum
Windsor Growth Stable Value Income Index Stock Income
Fund Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 637,089 $ 494,614 $ 377,062 $ 468,476 $ 409,421 $ 327,146 $ 149,887
Employer Contributions 205,311 147,469 137,895 153,273 139,145 107,101 54,483
After-tax employee deductions 20,988 18,308 24,005 17,268 17,091 26,031 4,566
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 863,388 660,391 538,962 639,017 565,657 460,278 208,936
----------- ----------- ----------- ----------- ----------- ----------- -----------
Transfer of Assets from VIAD spin-off of Dial - - - - - - -
Rollover deposits 66,739 68,967 199,972 84,066 51,813 51,932 10,100
Loan payments 64,946 63,255 78,284 55,003 43,768 40,052 20,190
Investment income:
Dividends and interest income 568,797 352,492 239,464 244,123 80,956 66,759 103,326
Net investment appreciation/(depreciation) 645,216 303,761 - 590,491 338,703 257,243 (1,039)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income 1,214,013 656,253 239,464 834,614 419,659 324,002 102,287
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions 2,209,086 1,448,866 1,056,682 1,612,700 1,080,897 876,264 341,513
----------- ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 391,685 428,549 417,792 381,748 123,347 227,453 156,844
New loans 125,649 77,820 61,941 62,600 64,845 47,441 20,802
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 517,334 506,369 479,733 444,348 188,192 274,894 177,646
----------- ----------- ----------- ----------- ----------- ----------- -----------
INTERFUND TRANSFERS 30,805 419,778 (292,439) 33,036 75,324 144,124 482
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE 1,722,557 1,362,275 284,510 1,201,388 968,029 745,494 164,349
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 4,183,368 2,829,623 3,827,925 2,900,165 1,520,603 1,738,284 1,213,836
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- ----------- ----------- ----------- -----------
BENEFITS, end of year $ 5,905,925 $ 4,191,898 $ 4,112,435 $ 4,101,553 $ 2,488,632 $ 2,483,778 $ 1,378,185
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE FINOVA GROUP INC. SAVINGS PLAN
-------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 1996
T. Rowe Price
T. Rowe Price Vanguard ----------------------- The FINOVA Bell Viad
Prime Bond Small-CAP International Group Inc. Atlantic Corp
Reserve Index Value Bond Common Common Common
Fund Fund Fund Fund Stock Stock Stock
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 104,582 $ 134,364 $ 91,825 $ 13,592 $ 506,435 $ 0 $ 0
Employer Contributions 16,991 47,944 22,366 1,077 155,540 - -
After-tax employee deductions 2,892 6,789 4,295 409 18,373 - -
----------- ----------- ----------- ----------- ----------- ----------- ----------
Total contributions 124,465 189,097 118,486 15,078 680,348 - -
----------- ----------- ----------- ----------- ----------- ----------- ----------
Transfer of Assets from VIAD spin-off of Dial - - - - - - (665,431)
Rollover deposits 9,058 8,531 28,302 18,158 151,480 - -
Loan payments 21,707 19,190 19,795 256 96,590 - 88
Investment income:
Dividends and interest income 42,559 45,794 28,039 2,186 67,158 234,912 31,069
Net investment appreciation/(depreciation) - (18,890) 54,472 867 1,256,452 (187,586) (20,725)
----------- ----------- ----------- ----------- ----------- ----------- ----------
Total investment income 42,559 26,904 82,511 3,053 1,323,610 47,326 10,344
----------- ----------- ----------- ----------- ----------- ----------- ----------
Total additions 197,789 243,722 249,094 36,545 2,252,028 47,326 (654,999)
----------- ----------- ----------- ----------- ----------- ----------- ----------
DEDUCTIONS:
Distribution to participants 74,427 40,114 49,189 418 226,675 539,255 78,325
New loans 21,820 14,544 10,442 1,191 99,758 46,704 2,906
----------- ----------- ----------- ----------- ----------- ----------- ----------
Total deductions 96,247 54,658 59,631 1,609 326,433 585,959 81,231
----------- ----------- ----------- ----------- ----------- ----------- ----------
INTERFUND TRANSFERS 230,385 (33,170) 378,970 12,143 151,042 (949,118) (232,839)
----------- ----------- ----------- ----------- ----------- ----------- ----------
NET INCREASE 331,927 155,894 568,433 47,079 2,076,637 (1,487,751) (969,069)
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 897,025 596,583 - - 3,204,812 6,064,839 1,734,072
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- ----------- ----------- ----------- ----------
BENEFITS, end of year $ 1,228,952 $ 752,477 $ 568,433 $ 47,079 $ 5,281,449 $ 4,577,088 $ 765,003
=========== =========== =========== =========== =========== =========== ==========
</TABLE>
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THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
The Dial U.S.
Corporation Bancorp
Common Common Plan
Stock Stock Account Total
--------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 0 $ 0 ($ 5,571) $ 3,708,922
Employer Contributions - - - 1,188,595
After-tax employee deductions - - - 161,015
----------- ----------- ----------- -----------
Total contributions - - (5,571) 5,058,532
----------- ----------- ----------- -----------
Transfer of Assets from VIAD spin-off of Dial 665,431 -
Rollover deposits - - - 749,118
Loan payments - - (523,124) -
Investment income: -
Dividends and interest income 4,244 2,608 106,854 2,221,340
Net investment appreciation/(depreciation) 79,541 23,072 - 3,321,578
----------- ----------- ----------- -----------
Total investment income 83,785 25,680 106,854 5,542,918
----------- ----------- ----------- -----------
Total additions 749,216 25,680 (421,841) 11,350,568
----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 25,670 16,592 117,138 3,295,221
New loans - 2,536 (660,999) -
----------- ----------- ----------- -----------
Total deductions 25,670 19,128 (543,861) 3,295,221
----------- ----------- ----------- -----------
INTERFUND TRANSFERS (36,245) (4,460) 72,182 -
----------- ----------- ----------- -----------
NET INCREASE 687,301 2,092 194,202 8,055,347
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year - 81,239 1,403,201 32,195,575
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- -----------
BENEFITS, end of year $ 687,301 $ 83,331 $ 1,597,403 $40,250,922
=========== =========== =========== ===========
</TABLE>
<PAGE>
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 New America Growth & Equity International Spectrum Prime
Windsor Growth Stable Value Income Index Stock Income 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 $ 354,696 $ 444,572 $ 379,238 $ 303,641 $ 306,560 $ 146,148 $ 104,136
Employer Contributions 166,950 113,586 154,814 124,914 92,688 99,665 51,047 44,174
After-tax employee deductions 16,734 18,553 19,443 10,317 16,237 30,464 12,110 3,202
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total contributions 729,313 486,835 618,829 514,469 412,566 436,689 209,305 151,512
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Rollover deposits 169,056 156,763 91,557 111,859 66,324 84,714 14,640 20,613
Loan payments 46,454 67,080 59,485 35,673 24,558 31,054 12,522 16,590
Investment income:
Dividends and interest income 472,066 135,417 222,320 159,466 56,184 52,335 75,280 40,954
Net investment appreciation 363,102 566,078 - 434,220 280,558 117,229 107,560 -
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total investment income 835,168 701,495 222,320 593,686 336,742 169,564 182,840 40,954
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total additions 1,779,991 1,412,173 992,191 1,255,687 840,190 722,021 419,307 229,669
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
DEDUCTIONS:
Distribution to participants 106,575 212,140 539,722 233,089 11,096 116,227 80,535 11,951
New loans 84,911 125,047 128,063 51,458 63,711 58,341 37,696 11,780
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total deductions 191,486 337,187 667,785 284,547 74,807 174,568 118,231 23,731
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
INTERFUND TRANSFERS 99,677 411,662 254,196 309,037 63,284 97,314 48,180 65,210
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET INCREASE 1,688,182 1,486,648 578,602 1,280,177 828,667 644,767 349,256 271,148
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 2,495,186 1,342,975 3,249,323 1,619,988 691,936 1,093,517 864,580 625,877
NET ASSETS AVAILABLE FOR ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
BENEFITS, end of year $4,183,368 $2,829,623 $3,827,925 $2,900,165 $1,520,603 $1,738,284 $1,213,836 $ 897,025
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE>
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>
Vanguard The FINOVA Bell U.S. VIAD
Bond Group Inc. Atlantic Bancorp Corp
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 $ 374,676 $ 0 $ 0 $ 0 $ 89,428 $ 3,173,056
Employer Contributions 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 42,026 315,649 2,989 42,008 65,760 1,716,378
Net investment appreciation 49,566 985,251 1,840,487 30,166 536,969 - 5,311,186
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income 83,490 1,027,277 2,156,136 33,155 578,977 65,760 7,027,564
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions 308,470 1,714,249 2,156,136 33,155 578,990 (181,817) 12,260,412
----------- ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 7,054 181,949 1,035,769 - 77,693 125,293 2,739,093
New loans 26,308 79,197 83,201 7,857 2,987 (760,557) -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 33,362 261,146 1,118,970 7,857 80,680 (635,264) 2,739,093
----------- ----------- ----------- ----------- ----------- ----------- -----------
INTERFUND TRANSFERS (12,234) 407,448 (1,444,458) (25,706) (234,600) (39,010) -
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE 262,874 1,860,551 (407,292) (408) 263,710 414,437 9,521,319
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 333,709 1,344,261 6,472,131 81,647 1,470,362 988,764 22,674,256
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- ----------- ----------- ----------- -----------
BENEFITS, end of year $ 596,583 $ 3,204,812 $ 6,064,839 $ 81,239 $ 1,734,072 $ 1,403,201 $32,195,575
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
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 received 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.
<PAGE>
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1996
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, Lessor Collateral, Rate of Interest, Maturity Current Value
or Similar Party Date, Par or Maturity Value Cost
- -------------------------------------- -------------------------------------------- --------------- ----------------
<S> <C> <C> <C>
Vanguard Windsor Fund Common Stock Fund (355,993 shares) $ 5,106,720 $ 5,905,925
T. Rowe Price New America
Growth Fund Common Stock Fund (109,249 shares) 3,547,212 4,191,898
T. Rowe Price Stable Value
Common Trust Fund GIC Fund (4,112,435 shares) 4,112,435 4,112,435
T. Rowe Price Growth & Income Fund Common Stock Fund (181,244 shares) 3,272,335 4,101,553
T. Rowe Price Equity Index Fund Common Stock Fund (122,352 shares) 1,936,197 2,488,632
T. Rowe Price International
Stock Fund Common Stock Fund (179,984 shares) 2,230,634 2,483,778
T. Rowe Price Spectrum
Income Fund Bond Fund (123,052 shares) 1,316,549 1,378,185
T. Rowe Price Prime Reserve Fund Money Market Fund (1,228,952 shares) 1,228,952 1,228,952
Vanguard Bond Index Fund Bond Fund (76,471 shares) 745,663 752,477
T. Rowe Price Small-CAP Value Fund Common Stock Fund (29,061 shares) 516,860 568,433
T. Rowe Price International
Bond Fund Bond Fund (4,501 shares) 46,201 47,079
The FINOVA Group Inc.
Common Stock Common Stock (82,202 shares) 3,246,373 5,281,449
Bell Atlantic Common Stock Common Stock (70,689 shares) 3,433,365 4,577,088
Viad Corp Common Stock Common Stock (46,718 shares) 484,526 765,003
The Dial Corporation Common
Stock Common Stock (46,597shares) 430,029 687,301
U.S. Bancorp Common Stock Common Stock (1,854 shares) 39,490 83,331
Participant Notes Receivable Participant Loans (rate of interest
6% to 11.5%), maturing in 1997 to 2021 1,356,505 1,356,505
-------------- --------------
$ 33,050,046 $ 40,010,024
============= =============
</TABLE>
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1996
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 Price Cost of Transaction Net Gain/
Involved Asset Price Asset Date (Loss)
- ---------------------- -------------------- ------------- -------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Series of
Transactions:
Vanguard Windsor
Fund Common Stock $ $785,256 $697,645 $785,256 $87,611
Fund
Vanguard
Windsor Fund Common Stock 1,862,597 1,862,597
Fund
T. Rowe Price
Stable Value 1,023,819 1,023,819 1,023,819
Fund GIC Fund
T. Rowe Price
Stable Value
Fund GIC Fund 1,308,329 1,308,329
The FINOVA Group
Inc.
Common Common 601,146 356,526 601,146 244,620
Stock Stock
The FINOVA
Group Inc.
Common Common 1,421,331 1,421,331
Stock Stock
Bell Atlantic
Common Common 1,535,077 1,010,417 1,535,077 524,660
Stock Stock
</TABLE>
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1996
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 Price Cost of Transaction Net Gain/
Involved Asset Price Asset Date (Loss)
- ---------------------- -------------------- ------------- -------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Series of Transactions (continued):
T. Rowe Price
Growth & Common Stock
Income Fund Fund $ $608,933 $472,881 $608,933 $136,052
T. Rowe Price
Growth & Common Stock
Income Fund Fund 1,219,830 1,219,830
T. Rowe Price New
America Growth Common Stock Fund
Fund 644,928 466,673 644,928 178,255
T. Rowe Price New
America Growth Common Stock Fund
Fund 1,703,442 1,703,442
</TABLE>
<PAGE>
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.
<TABLE>
<CAPTION>
THE FINOVA GROUP INC. SAVINGS PLAN
<S> <C> <C>
Dated: June 20, 1997 Signature: /s/ William C. Roche
----------------------------------------------------
William C. Roche
Senior Vice President - Human Resources
Dated: June 20, 1997 Signature: /s/ Bruno A. Marszowski
----------------------------------------------------
Bruno A. Marszowski
Senior Vice President - Controller and Chief
Financial Officer
</TABLE>
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
COMMISSION FILE NUMBER 33-46530
EXHIBIT INDEX
<TABLE>
<S> <C> <C>
Page No. in
Sequentially
Numbered
Form 11-K
No. Title Report
- ------------- ------------------------------------------------------------------------- --------------
(23) Independent Auditors' Consent 21
</TABLE>
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 13th,
1997, appearing in this Annual Report on Form 11-K of The FINOVA Group Inc.
Savings Plan for the year ended December 31, 1996.
/s/ DELOITTE & TOUCHE LLP
- ------------------------------------
Phoenix, Arizona
June 13, 1997
