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, 1997 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
- ---------------------------------
Financial Statements
Page(s)
-------
Independent Auditors' Report 1
Statements of Net Assets Available for
Benefits - December 31, 1997 and 1996 2
Statements of Changes in Net Assets Available for
Benefits - for the Years Ended December 31, 1997
and 1996 3
Notes to Financial Statements 4-15
Supplemental Schedules 16-18
Signatures 19
Exhibits 20-21
<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, 1997 and
1996, 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, 1997
and 1996, 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 1997 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 18, 1998
1
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THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31,
-------------------------
ASSETS 1997 1996
----------- -----------
INVESTMENTS, at fair value:
Shares of registered investment companies:
Vanguard Windsor Fund $ 8,304,041 $ 5,905,925
T. Rowe Price Growth & Income Fund 5,519,993 4,101,553
T. Rowe Price New America Growth Fund 4,893,672 4,191,898
T. Rowe Price Equity Index Fund 4,862,845 2,488,632
T. Rowe Price Stable Value Common Trust Fund 4,134,064 4,112,435
T. Rowe Price International Stock Fund 2,662,197 2,483,778
T. Rowe Price Small-CAP Value Fund 1,707,669 568,433
T. Rowe Price Spectrum Income Fund 1,548,246 1,378,185
T. Rowe Price Prime Reserve Fund 1,200,028 1,228,952
Vanguard Bond Index Fund 978,650 752,477
T. Rowe Price International Bond Fund 74,025 47,079
Common Stock:
The FINOVA Group Inc. Common Stock 9,927,212 5,281,449
Bell Atlantic Common Stock 2,670,691 4,577,088
The Dial Corporation Common Stock 387,159 687,301
VIAD Corp Common Stock 370,936 765,003
U. S. Bancorp Common Stock 97,064 83,331
Participant notes receivable 1,543,994 1,356,505
----------- -----------
Total investments 50,882,486 40,010,024
----------- -----------
CONTRIBUTIONS RECEIVABLE 142,700 134,305
DIVIDENDS RECEIVABLE 34,541 28,186
CASH 345,622 78,407
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $51,405,349 $40,250,922
=========== ===========
See Notes to Financial Statements
2
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THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
ADDITIONS: 1997 1996
----------- -----------
Contributions:
Employee wage reductions $ 3,735,750 $ 3,708,922
Employer contributions 1,177,559 1,188,595
After-tax employee deductions -- 161,015
----------- -----------
Total contributions 4,913,309 5,058,532
----------- -----------
Rollover deposits 992,742 749,118
Investment income:
Dividends and interest income 3,115,593 2,221,340
Net appreciation in fair value of investments 7,441,582 3,321,578
----------- -----------
Total investment income 10,557,175 5,542,918
----------- -----------
Total additions 16,463,226 11,350,568
----------- -----------
DEDUCTIONS - distributions to participants 5,308,799 3,295,221
----------- -----------
NET INCREASE 11,154,427 8,055,347
NET ASSETS AVAILABLE FOR BENEFITS,
Beginning of year 40,250,922 32,195,575
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS,
End of year $51,405,349 $40,250,922
=========== ===========
See Notes to Financial Statements
3
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
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") by The
Dial Corp ("Dial"). 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
were 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. 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.
(2) 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.
(3) 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.
(4) T. Rowe Price Equity Index Fund - This managed fund
invests in the common stock of other companies and is
intended to mimic the performance of the U.S. equity
4
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
markets as represented by the Standard & Poor's 500
Composite Stock Index. The fair value of the fund is
dependent on the market value of the stocks.
(5) 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
4.77% to 9.875% at December 31, 1997, allowing for a
blended rate of return for the fund for 1997 of
6.17%.
(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 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.
(8) 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.
(9) 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.
(10) 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.
(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.
5
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
(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. The final
settlement of the liquidated holdings occurred in
January 1998.
(14) The Dial Corporation Common Stock - Funds are
invested in the common stock of 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 investment elections. The
fair market value of this stock is dependent upon the
fluctuations in its market value. The final
settlement of the liquidated holdings occurred in
January 1998.
(15) 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. The final
settlement of the liquidated holdings occurred in
January 1998.
(16) U.S. Bancorp Common Stock - This fund is invested in
the common stock of U.S. Bancorp. On August 25, 1997,
U.S. Bancorp was acquired by First Bank Systems, Inc.
The new corporation retained the U.S. Bancorp name.
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. The final
settlement of the liquidated holdings occurred in
January 1998.
(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
6
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
to 25 years. The Plan allows participants to have two
loans outstanding concurrently. The loan repayments
are reinvested according to the participants' current
investment elections.
c. Contributions - The employee may elect Voluntary pre-tax wage
reductions. These pre-tax reductions are contributed to the
Plan by the Company and may range from 1% to 15% of taxable
compensation ("as defined"). 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.
Employees of the Company are eligible to receive matching
contributions in the month following the last twelve
consecutive month period during which they have at least 1,000
hours of service with the Company. 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 were 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. At the Company's option, the Company paid
expenses of maintaining the Plan in 1997 and 1996.
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.
7
<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, 1997 and
1996:
8
<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, 1997
T. Rowe Price
-------------------------------------------------------------------------
Vanguard Growth & New America Equity International Small-CAP
Windsor Income Growth Index Stable Value Stock Value
Fund Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 680,470 $ 453,081 $ 448,436 $ 479,282 $ 293,685 $ 279,722 $ 195,229
Employer Contributions 216,297 141,400 137,292 151,630 110,678 89,464 49,635
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 896,767 594,481 585,728 630,912 404,363 369,186 244,864
----------- ----------- ----------- ----------- ----------- ----------- -----------
Rollover deposits 162,707 94,814 39,551 165,133 21,004 50,928 54,442
Loan payments 88,726 72,015 71,687 82,996 53,773 39,823 13,719
Investment income:
Dividends and interest income 1,301,618 306,362 235,732 99,043 273,100 143,600 103,870
Net investment appreciation/(depreciation) 32,768 712,818 611,358 912,306 512 (68,008) 143,980
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income 1,334,386 1,019,180 847,090 1,011,349 273,612 75,592 247,850
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions 2,482,586 1,780,490 1,544,056 1,890,390 752,752 535,529 560,875
----------- ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 563,089 648,509 605,918 116,275 923,920 383,866 93,481
New loans 144,764 85,690 66,986 152,290 60,503 32,984 14,574
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 707,853 734,199 672,904 268,565 984,423 416,850 108,055
----------- ----------- ----------- ----------- ----------- ----------- -----------
INTERFUND TRANSFERS 623,383 372,149 (169,378) 752,388 253,300 59,740 686,416
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE/(DECREASE) 2,398,116 1,418,440 701,774 2,374,213 21,629 178,419 1,139,236
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 5,905,925 4,101,553 4,191,898 2,488,632 4,112,435 2,483,778 568,433
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- ----------- ----------- ----------- -----------
BENEFITS, end of year $ 8,304,041 $ 5,519,993 $ 4,893,672 $ 4,862,845 $ 4,134,064 $ 2,662,197 $ 1,707,669
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
9
<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, 1997
T. Rowe Price
----------------------- Vanguard T. Rowe Price The FINOVA Bell The Dial
Spectrum Prime Bond International Group Inc. Atlantic Corporation
Income Reserve Index Bond Common Common Common
Fund Fund Fund Fund Stock Stock Stock
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 86,261 $ 87,748 $ 116,883 $ 22,211 $ 584,347 $ 0 $ 0
Employer Contributions 29,024 26,628 39,782 4,544 181,185 -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 115,285 114,376 156,665 26,755 765,532 -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Rollover deposits 31,705 28,336 86,589 21,837 235,696 -- --
Loan payments 25,040 13,679 33,532 974 122,491 -- --
Investment income:
Dividends and interest income 107,955 59,779 55,248 3,525 98,831 178,659 13,997
Net investment appreciation/(depreciation) 56,418 454 23,507 (4,326) 3,227,136 1,413,063 204,750
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income 164,373 60,233 78,755 (801) 3,325,967 1,591,722 218,747
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions 336,403 216,624 355,541 48,765 4,449,686 1,591,722 218,747
----------- ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 136,847 367,366 39,433 2,396 438,443 833,391 33,425
New loans 16,155 34,395 48,838 3,079 108,817 8,945 --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 153,002 401,761 88,271 5,475 547,260 842,336 33,425
----------- ----------- ----------- ----------- ----------- ----------- -----------
INTERFUND TRANSFERS (13,340) 156,213 (41,097) (16,344) 743,337 (2,655,783) (485,464)
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE/(DECREASE) 170,061 (28,924) 226,173 26,946 4,645,763 (1,906,397) (300,142)
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 1,378,185 1,228,952 752,477 47,079 5,281,449 4,577,088 687,301
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- ----------- ----------- ----------- -----------
BENEFITS, end of year $ 1,548,246 $ 1,200,028 $ 978,650 $ 74,025 $ 9,927,212 $ 2,670,691 $ 387,159
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
10
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<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, 1997
Viad U.S.
Corp Bancorp
Common Common Plan
Stock Stock Account Total
------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 0 $ 0 $ 8,395 $ 3,735,750
Employer Contributions -- -- -- 1,177,559
----------- ----------- ----------- -----------
Total contributions -- -- 8,395 4,913,309
----------- ----------- ----------- -----------
Rollover deposits -- -- -- 992,742
Loan payments -- -- (618,455) --
Investment income: --
Dividends and interest income 14,067 2,569 117,638 3,115,593
Net investment appreciation/(depreciation) 114,997 59,849 -- 7,441,582
----------- ----------- ----------- -----------
Total investment income 129,064 62,418 117,638 10,557,175
----------- ----------- ----------- -----------
Total additions 129,064 62,418 (492,422) 16,463,226
----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 37,278 1,523 83,639 5,308,799
New loans -- 280 (778,300) --
----------- ----------- ----------- -----------
Total deductions 37,278 1,803 (694,661) 5,308,799
----------- ----------- ----------- -----------
INTERFUND TRANSFERS (485,853) (46,882) 267,215 --
----------- ----------- ----------- -----------
NET INCREASE/(DECREASE) (394,067) 13,733 469,454 11,154,427
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 765,003 83,331 1,597,403 40,250,922
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- -----------
BENEFITS, end of year $ 370,936 $ 97,064 $ 2,066,857 $51,405,349
=========== =========== =========== ===========
</TABLE>
11
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<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 Growth & New America Equity International Small-CAP
Windsor Income Growth Index Stable Value Stock Value
Fund Fund Fund Fund Fund Fund Fund
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 637,089 $ 468,476 $ 494,614 $ 409,421 $ 377,062 $ 327,146 $ 91,825
Employer Contributions 205,311 153,273 147,469 139,145 137,895 107,101 22,366
After-tax employee deductions 20,988 17,268 18,308 17,091 24,005 26,031 4,295
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 863,388 639,017 660,391 565,657 538,962 460,278 118,486
----------- ----------- ----------- ----------- ----------- ----------- -----------
Transfer of Assets from VIAD spin-off of Dial -- -- -- -- -- -- --
Rollover deposits 66,739 84,066 68,967 51,813 199,972 51,932 28,302
Loan payments 64,946 55,003 63,255 43,768 78,284 40,052 19,795
Investment income:
Dividends and interest income 568,797 244,123 352,492 80,956 239,464 66,759 28,039
Net investment appreciation/(depreciation) 645,216 590,491 303,761 338,703 -- 257,243 54,472
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income 1,214,013 834,614 656,253 419,659 239,464 324,002 82,511
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions 2,209,086 1,612,700 1,448,866 1,080,897 1,056,682 876,264 249,094
----------- ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 391,685 381,748 428,549 123,347 417,792 227,453 49,189
New loans 125,649 62,600 77,820 64,845 61,941 47,441 10,442
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 517,334 444,348 506,369 188,192 479,733 274,894 59,631
----------- ----------- ----------- ----------- ----------- ----------- -----------
INTERFUND TRANSFERS 30,805 33,036 419,778 75,324 (292,439) 144,124 378,970
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE/(DECREASE) 1,722,557 1,201,388 1,362,275 968,029 284,510 745,494 568,433
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 4,183,368 2,900,165 2,829,623 1,520,603 3,827,925 1,738,284 --
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- ----------- ----------- ----------- -----------
BENEFITS, end of year $ 5,905,925 $ 4,101,553 $ 4,191,898 $ 2,488,632 $ 4,112,435 $ 2,483,778 $ 568,433
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
12
<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 The Dial
Spectrum Prime Bond International Group Inc. Atlantic Corporation
Income Reserve Index Bond Common Common Common
Fund Fund Fund Fund Stock Stock Stock
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 149,887 $ 104,582 $ 134,364 $ 13,592 $ 506,435 $ 0 $ 0
Employer Contributions 54,483 16,991 47,944 1,077 155,540 -- --
After-tax employee deductions 4,566 2,892 6,789 409 18,373 -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 208,936 124,465 189,097 15,078 680,348 -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Transfer of Assets from VIAD spin-off of Dial -- -- -- -- -- -- 665,431
Rollover deposits 10,100 9,058 8,531 18,158 151,480 -- --
Loan payments 20,190 21,707 19,190 256 96,590 -- --
Investment income:
Dividends and interest income 103,326 42,559 45,794 2,186 67,158 234,912 4,244
Net investment appreciation/(depreciation) (1,039) -- (18,890) 867 1,256,452 (187,586) 79,541
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income 102,287 42,559 26,904 3,053 1,323,610 47,326 83,785
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions 341,513 197,789 243,722 36,545 2,252,028 47,326 749,216
----------- ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 156,844 74,427 40,114 418 226,675 539,255 25,670
New loans 20,802 21,820 14,544 1,191 99,758 46,704 --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 177,646 96,247 54,658 1,609 326,433 585,959 25,670
----------- ----------- ----------- ----------- ----------- ----------- -----------
INTERFUND TRANSFERS 482 230,385 (33,170) 12,143 151,042 (949,118) (36,245)
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE/(DECREASE) 164,349 331,927 155,894 47,079 2,076,637 (1,487,751) 687,301
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 1,213,836 897,025 596,583 -- 3,204,812 6,064,839 --
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- ----------- ----------- ----------- -----------
BENEFITS, end of year $ 1,378,185 $ 1,228,952 $ 752,477 $ 47,079 $ 5,281,449 $ 4,577,088 $ 687,301
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
13
<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
Viad U.S.
Corp 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 88 -- (523,124) --
Investment income: --
Dividends and interest income 31,069 2,608 106,854 2,221,340
Net investment appreciation/(depreciation) (20,725) 23,072 -- 3,321,578
----------- ----------- ----------- -----------
Total investment income 10,344 25,680 106,854 5,542,918
----------- ----------- ----------- -----------
Total additions (654,999) 25,680 (421,841) 11,350,568
----------- ----------- ----------- -----------
DEDUCTIONS:
Distribution to participants 78,325 16,592 117,138 3,295,221
New loans 2,906 2,536 (660,999) --
----------- ----------- ----------- -----------
Total deductions 81,231 19,128 (543,861) 3,295,221
----------- ----------- ----------- -----------
INTERFUND TRANSFERS (232,839) (4,460) 72,182 --
----------- ----------- ----------- -----------
NET INCREASE/(DECREASE) (969,069) 2,092 194,202 8,055,347
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 1,734,072 81,239 1,403,201 32,195,575
NET ASSETS AVAILABLE FOR ----------- ----------- ----------- -----------
BENEFITS, end of year $ 765,003 $ 83,331 $ 1,597,403 $40,250,922
=========== =========== =========== ===========
</TABLE>
14
<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.
6. TWO-FOR-ONE STOCK SPLIT
On August 14, 1997, the Board of Directors declared a two-for-one stock
split of the Company's common stock effected as a stock distribution on
October 1, 1997 to shareowners of record as of September 1, 1997.
15
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1997
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 (489,048 shares) $ 7,659,369 $ 8,304,041
T. Rowe Price Growth & Income
Fund Common Stock Fund (209,408 shares) 4,235,888 5,519,993
T. Rowe Price New America
Growth Fund Common Stock Fund (110,742 shares) 3,888,688 4,893,672
T. Rowe Price Equity Index Fund Common Stock Fund (184,338 shares) 3,527,015 4,862,845
T. Rowe Price Stable Value
Common Trust Fund GIC Fund (4,134,064 shares) 4,134,064 4,134,064
T. Rowe Price International
Stock Fund Common Stock Fund (198,375 shares) 2,593,842 2,662,197
T. Rowe Price Small-CAP Value
Fund Common Stock Fund (72,977 shares) 1,554,243 1,707,669
T. Rowe Price Spectrum
Income Fund Bond Fund (132,783 shares) 1,447,101 1,548,246
T. Rowe Price Prime Reserve
Fund Money Market Fund (1,200,028 shares) 1,200,028 1,200,028
Vanguard Bond Index Fund Bond Fund (96,992 shares) 951,293 978,650
T. Rowe Price International
Bond Fund Bond Fund (7,727 shares) 77,342 74,025
The FINOVA Group Inc.
Common Stock Common Stock (199,793 shares) 5,009,999 9,927,212
Bell Atlantic Common Stock Common Stock (29,348 shares) 1,502,368 2,670,691
The Dial Corporation Common
Stock Common Stock (18,602 shares) 253,327 387,159
Viad Corp Common Stock Common Stock (19,207 shares) 304,738 370,936
U.S. Bancorp Common Stock Common Stock (867 shares) 75,316 97,064
Participant Notes Receivable Participant Loans (rate of interest
6% to 11.5%), maturing in 1998 to 2022 1,543,994 1,543,994
------------ ------------
$ 39,958,615 $ 50,882,486
============ ============
</TABLE>
16
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1997
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)
- -------------------------------------------------------------------------------------------------
Series of
Transactions:
<S> <C> <C> <C> <C> <C> <C>
Vanguard
Windsor Common $ $1,014,999 $ 828,467 $1,014,999 $ 186,532
Fund Stock
Vanguard
Windsor Common 3,381,116 3,381,116
Fund Stock
T. Rowe Price
Stable Value 1,748,017 1,748,017 1,748,017
Fund GIC Fund
T. Rowe Price
Stable Value 1,769,646 1,769,646
Fund GIC Fund
T. Rowe Price
Equity Index Common 616,792 488,035 616,792 128,757
Fund Stock
T. Rowe Price
Equity Index Common 2,078,853 2,078,853
Fund Stock
The FINOVA
Group Inc.
Common Common 1,656,006 1,087,573 1,656,006 568,433
Stock Stock
The FINOVA
Group Inc.
Common Common 2,851,199 2,851,199
Stock Stock
Bell Atlantic
Common Common 3,319,460 1,930,997 3,319,460 1,388,463
Stock Stock
</TABLE>
17
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1997
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)
- ---------------------------------------------------------------------------------------------------------
Series of Transactions (continued):
<S> <C> <C> <C> <C> <C> <C>
T. Rowe Price
International Common 884,801 768,019 884,801 116,782
Stock Fund Stock
T. Rowe Price
International Common 1,131,227 1,131,227
Stock Fund Stock
T. Rowe Price
Growth & Common 1,093,608 836,463 1,093,608 257,145
Income Fund Stock
T. Rowe Price
Growth & Common 1,800,016 1,800,016
Income Fund Stock
T. Rowe Price New
America Common 1,382,941 1,132,247 1,382,941 250,694
Growth Fund Stock
T. Rowe Price New
America Common 1,473,723 1,473,723
Growth Fund Stock
</TABLE>
18
<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.
THE FINOVA GROUP INC. SAVINGS PLAN
Dated: June 19, 1998 Signature: /s/ William C. Roche
-----------------------------------
William C. Roche
Senior Vice President - Human
Resources
Dated: June 19, 1998 Signature: /s/ Bruno A. Marszowski
-----------------------------------
Bruno A. Marszowski
Senior Vice President - Controller
and Chief Financial Officer
19
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
COMMISSION FILE NUMBER 33-46530
EXHIBIT INDEX
Page No. in
Sequentially
Numbered
Form 11-K
No. Title Report
------- -------------------------------------- ------------
(23) Independent Auditors' Consent 21
20
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 18, 1998,
appearing in this Annual Report on Form 11-K of The FINOVA Group Inc. Savings
Plan for the year ended December 31, 1997.
/s/ DELOITTE & TOUCHE LLP
- --------------------------------
Phoenix, Arizona
June 23, 1998
21
