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, 1998 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, 1998 and 1997 2
Statements of Changes in Net Assets Available for
Benefits - for the Years Ended December 31, 1998
and 1997 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, 1998 and
1997, 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, 1998
and 1997, 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 of assets held
for investment purposes and reportable transactions 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. The supplemental schedules
are the responsibility of the Plan's management. Such supplemental schedules
have been subjected to the auditing procedures applied in our audits of the
basic 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, 1999
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31,
-------------------------
ASSETS 1998 1997
----------- -----------
INVESTMENTS, at fair value:
Shares of registered investment companies:
Vanguard Windsor Fund $ 8,476,503 $ 8,304,041
T. Rowe Price Equity Index Fund 7,958,034 4,862,845
T. Rowe Price Growth & Income Fund 6,595,663 5,519,993
T. Rowe Price New America Growth Fund 6,533,244 4,893,672
T. Rowe Price Stable Value Common Trust Fund 5,696,318 4,134,064
T. Rowe Price International Stock Fund 3,540,731 2,662,197
T. Rowe Price Prime Reserve Fund 2,357,859 1,200,028
T. Rowe Price Spectrum Income Fund 2,062,571 1,548,246
T. Rowe Price Small-CAP Value Fund 1,770,194 1,707,669
Vanguard Bond Index Fund 1,425,016 978,650
T. Rowe Price International Bond Fund 116,272 74,025
Common Stock:
The FINOVA Group Inc. Common Stock 12,268,435 9,927,212
Bell Atlantic Common Stock -- 2,670,691
The Dial Corporation Common Stock -- 387,159
VIAD Corp Common Stock -- 370,936
U. S. Bancorp Common Stock -- 97,064
Participant notes receivable 1,565,228 1,543,994
----------- -----------
Total investments 60,366,068 50,882,486
----------- -----------
CONTRIBUTIONS RECEIVABLE 186,704 142,700
DIVIDENDS RECEIVABLE 39,622 34,541
CASH 524 345,622
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $60,592,918 $51,405,349
=========== ===========
See Notes to Financial Statements
2
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
ADDITIONS: 1998 1997
----------- -----------
Contributions:
Employee wage reductions $ 4,896,597 $ 3,735,750
Employer contributions 1,496,531 1,177,559
----------- -----------
Total contributions 6,393,128 4,913,309
----------- -----------
Rollover deposits 710,842 992,742
Investment income:
Dividends and interest income 3,105,225 3,115,593
Net appreciation in fair value of investments 2,376,122 7,441,582
----------- -----------
Total investment income 5,481,347 10,557,175
----------- -----------
Total additions 12,585,317 16,463,226
DEDUCTIONS - distributions to participants 3,397,748 5,308,799
----------- -----------
NET INCREASE 9,187,569 11,154,427
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 51,405,349 40,250,922
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $60,592,918 $51,405,349
=========== ===========
See Notes to Financial Statements
3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
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 are 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 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 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.
(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.
4
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THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
(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.
(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 5.01% to
8.41% for 1998, allowing for a blended rate of return for the
fund for 1998 of 6.16%.
(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 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.
(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 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.
(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 were invested in the common
stock of Bell Atlantic Corporation. Participants had until
December 31, 1997 to liquidate their holdings. The final
settlement of the liquidated holdings occurred in January 1998
and the funds reinvested in accordance with the participants'
current investment elections.
(14) THE DIAL CORPORATION COMMON STOCK - Funds were invested in the
common stock of The Dial Corporation. Participants had until
December 31, 1997 to liquidate their holdings. The final
settlement of the liquidated holdings occurred in January 1998
and the funds reinvested in accordance with the participants'
current investment elections.
(15) VIAD CORPORATION (FORMERLY THE DIAL CORP) COMMON STOCK - Funds
were invested in the common stock of Viad Corp ("VIAD").
Participants had until December 31, 1997 to liquidate their
holdings. The final settlement of the liquidated holdings
occurred in January 1998 and the funds reinvested in accordance
with the participants' current investment elections.
(16) U.S. BANCORP COMMON STOCK - This fund was invested in the common
stock of U.S. Bancorp. On August 25, 1997, U.S. Bancorp was
acquired by First Bank Systems, Inc. Participants had until
December 31, 1997 to liquidate their holdings. The final
settlement of the liquidated holdings occurred in January 1998
and the funds reinvested in accordance with the participants'
current investment elections.
(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 are reinvested according to the
participants' current investment elections.
c. CONTRIBUTIONS - Employees 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").
Employees of the Company are eligible to receive matching
contributions beginning in the month following the first twelve
consecutive month period during which they have at least 1,000 hours
6
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
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.
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,
disability, 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 wage reductions, 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 1998 and 1997.
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.
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.
7
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
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, 1998 and 1997:
8
<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, 1998
<TABLE>
<CAPTION>
T. Rowe Price
-----------------------------------------------------------
Vanguard Equity Growth & New America
Windsor Index Income Growth
Fund Fund Fund Fund
-----------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 832,602 $ 803,442 $ 539,628 $ 533,738
Employer Contributions 259,126 235,129 171,920 166,004
----------- ---------- ----------- ----------
Total contributions 1,091,728 1,038,571 711,548 699,742
----------- ---------- ----------- ----------
Rollover deposits 59,681 184,943 96,389 63,943
Loan payments 104,984 145,428 92,287 68,141
Investment income:
Dividends and interest income 751,631 97,805 635,518 469,236
Net investment appreciation/
(depreciation) (653,958) 1,532,527 (2,663) 479,879
----------- ---------- ----------- ----------
Total investment income 97,673 1,630,332 632,855 949,115
----------- ---------- ----------- ----------
Total additions 1,354,066 2,999,274 1,533,079 1,780,941
----------- ---------- ----------- ----------
DEDUCTIONS:
Distributions to participants 308,223 135,548 542,126 512,471
New loans 100,170 122,373 46,327 69,645
----------- ---------- ----------- ----------
Total deductions 408,393 257,921 588,453 582,116
----------- ---------- ----------- ----------
INTERFUND TRANSFERS (773,211) 353,836 131,044 440,747
----------- ---------- ----------- ----------
NET INCREASE 172,462 3,095,189 1,075,670 1,639,572
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 8,304,041 4,862,845 5,519,993 4,893,672
NET ASSETS AVAILABLE FOR
=========== ========== =========== ==========
BENEFITS, end of year $ 8,476,503 $7,958,034 $ 6,595,663 $6,533,244
=========== ========== =========== ==========
<PAGE>
T. Rowe Price
----------------------------------------
Stable International Prime
Value Stock Reserve
Fund Fund Fund
----------------------------------------
ADDITIONS:
Contributions:
Employee wage reductions $ 254,938 $ 284,946 $ 86,579
Employer Contributions 95,716 93,132 24,799
---------- ---------- ----------
Total contributions 350,654 378,078 111,378
---------- ---------- ----------
Rollover deposits 10,070 33,480 42,355
Loan payments 60,817 41,259 5,120
Investment income:
Dividends and interest income 306,425 129,233 78,289
Net investment appreciation/
(depreciation) 0 344,207 0
---------- ---------- ----------
Total investment income 306,425 473,440 78,289
---------- ---------- ----------
Total additions 727,966 926,257 237,142
---------- ---------- ----------
DEDUCTIONS:
Distributions to participants 552,297 157,685 158,806
New loans 71,957 25,449 55,305
---------- ---------- ----------
Total deductions 624,254 183,134 214,111
---------- ---------- ----------
INTERFUND TRANSFERS 1,458,542 135,411 1,134,800
---------- ---------- ----------
NET INCREASE 1,562,254 878,534 1,157,831
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 4,134,064 2,662,197 1,200,028
NET ASSETS AVAILABLE FOR
========== ========== ==========
BENEFITS, end of year $5,696,318 $3,540,731 $2,357,859
========== ========== ==========
</TABLE>
9
<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, 1998
<TABLE>
<CAPTION>
T. Rowe Price
------------------------- Vanguard T. Rowe Price
Spectrum Small-CAP Bond International
Income Value Index Bond
Fund Fund Fund Fund
----------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 132,749 $ 365,169 $ 137,505 $ 26,084
Employer Contributions 34,702 103,023 46,958 7,507
----------- ----------- ---------- ---------
Total contributions 167,451 468,192 184,463 33,591
----------- ----------- ---------- ---------
Rollover deposits 26,653 58,218 26,171 16,887
Loan payments 13,804 25,177 22,432 2,164
Investment income:
Dividends and interest income 158,908 124,328 83,287 4,603
Net investment appreciation/
(depreciation) (31,669) (377,559) 21,191 8,716
----------- ----------- ---------- ---------
Total investment income 127,239 (253,231) 104,478 13,319
----------- ----------- ---------- ---------
Total additions 335,147 298,356 337,544 65,961
----------- ----------- ---------- ---------
DEDUCTIONS:
Distributions to participants 163,052 171,518 26,165 466
New loans 8,713 15,917 14,167 3,777
----------- ----------- ---------- ---------
Total deductions 171,765 187,435 40,332 4,243
----------- ----------- ---------- ---------
INTERFUND TRANSFERS 350,943 (48,396) 149,154 (19,471)
----------- ----------- ---------- ---------
NET INCREASE 514,325 62,525 446,366 42,247
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 1,548,246 1,707,669 978,650 74,025
----------- ----------- ---------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $ 2,062,571 $ 1,770,194 $1,425,016 $ 116,272
=========== =========== ========== =========
<PAGE>
The FINOVA Bell The Dial
Group Inc. Atlantic Corporation
Common Common Common
Stock Stock Stock
----------- ----------- ---------
ADDITIONS:
Contributions:
Employee wage reductions $ 855,213 $ 0 $ 0
Employer Contributions 258,515 0 0
----------- ----------- ---------
Total contributions 1,113,728 0 0
----------- ----------- ---------
Rollover deposits 92,052 0 0
Loan payments 117,789 0 0
Investment income:
Dividends and interest income 133,729 0 1,488
Net investment appreciation/
(depreciation) 1,074,909 (40,730) 9,118
----------- ----------- ---------
Total investment income 1,208,638 (40,730) 10,606
----------- ----------- ---------
Total additions 2,532,207 (40,730) 10,606
----------- ----------- ---------
DEDUCTIONS:
Distributions to participants 560,599 0 0
New loans 171,500 0 0
----------- ----------- ---------
Total deductions 732,099 0 0
----------- ----------- ---------
INTERFUND TRANSFERS 541,115 (2,629,961) (397,765)
----------- ----------- ---------
NET INCREASE 2,341,223 (2,670,691) (387,159)
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 9,927,212 2,670,691 387,159
----------- ----------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $12,268,435 $ 0 $ 0
=========== =========== =========
</TABLE>
10
<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, 1998
<TABLE>
<CAPTION>
Viad U.S.
Corp Bancorp
Common Common Plan
Stock Stock Account Total
--------- --------- ------------ -----------
<S> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 0 $ 0 $ 44,004 $ 4,896,597
Employer Contributions 0 0 0 1,496,531
--------- --------- ------------ -----------
Total contributions 0 0 44,004 6,393,128
--------- --------- ------------ -----------
Rollover deposits 0 0 0 710,842
Loan payments 0 0 (699,402) 0
Investment income:
Dividends and interest income 1,536 0 129,209 3,105,225
Net investment appreciation/
(depreciation) 11,345 809 0 2,376,122
--------- --------- ------------ -----------
Total investment income 12,881 809 129,209 5,481,347
--------- --------- ------------ -----------
Total additions 12,881 809 (526,189) 12,585,317
--------- --------- ------------ -----------
DEDUCTIONS:
Distributions to participants 0 0 108,792 3,397,748
New loans 0 0 (705,300) 0
--------- --------- ------------ -----------
Total deductions 0 0 (596,508) 3,397,748
--------- --------- ------------ -----------
INTERFUND TRANSFERS (383,817) (97,873) (345,098) 0
--------- --------- ------------ -----------
NET INCREASE (370,936) (97,064) (274,779) 9,187,569
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 370,936 97,064 2,066,857 51,405,349
--------- --------- ------------ -----------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $ 0 $ 0 $ 1,792,078 $60,592,918
========= ========= ============ ===========
</TABLE>
11
<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, 1997
<TABLE>
<CAPTION>
T. Rowe Price
----------------------------------------
Vanguard Equity Growth & New America
Windsor Index Income Growth
Fund Fund Fund Fund
---------- ---------- ---------- -----------
<S> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 680,470 $ 479,282 $ 453,081 $ 448,436
Employer Contributions 216,297 151,630 141,400 137,292
---------- ---------- ---------- -----------
Total contributions 896,767 630,912 594,481 585,728
---------- ---------- ---------- -----------
Rollover deposits 162,707 165,133 94,814 39,551
Loan payments 88,726 82,996 72,015 71,687
Investment income:
Dividends and interest income 1,301,618 99,043 306,362 235,732
Net investment appreciation/
(depreciation) 32,768 912,306 712,818 611,358
---------- ---------- ---------- -----------
Total investment income 1,334,386 1,011,349 1,019,180 847,090
---------- ---------- ---------- -----------
Total additions 2,482,586 1,890,390 1,780,490 1,544,056
---------- ---------- ---------- -----------
DEDUCTIONS:
Distribution to participants 563,089 116,275 648,509 605,918
New loans 144,764 152,290 85,690 66,986
---------- ---------- ---------- -----------
Total deductions 707,853 268,565 734,199 672,904
---------- ---------- ---------- -----------
INTERFUND TRANSFERS 623,383 752,388 372,149 (169,378)
---------- ---------- ---------- -----------
NET INCREASE 2,398,116 2,374,213 1,418,440 701,774
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 5,905,925 2,488,632 4,101,553 4,191,898
---------- ---------- ---------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $8,304,041 $4,862,845 $5,519,993 $ 4,893,672
========== ========== ========== ===========
<PAGE>
T. Rowe Price
-------------------------------------------
International Prime
Stable Value Stock Reserve
Fund Fund Fund
------------ ------------- -----------
ADDITIONS:
Contributions:
Employee wage reductions $ 293,685 $ 279,722 $ 87,748
Employer Contributions 110,678 89,464 26,628
---------- ----------- -----------
Total contributions 404,363 369,186 114,376
---------- ----------- -----------
Rollover deposits 21,004 50,928 28,336
Loan payments 53,773 39,823 13,679
Investment income:
Dividends and interest income 273,100 143,600 59,779
Net investment appreciation/
(depreciation) 512 (68,008) 454
---------- ----------- -----------
Total investment income 273,612 75,592 60,233
---------- ----------- -----------
Total additions 752,752 535,529 216,624
---------- ----------- -----------
DEDUCTIONS:
Distribution to participants 923,920 383,866 367,366
New loans 60,503 32,984 34,395
---------- ----------- -----------
Total deductions 984,423 416,850 401,761
---------- ----------- -----------
INTERFUND TRANSFERS 253,300 59,740 156,213
---------- ----------- -----------
NET INCREASE 21,629 178,419 (28,924)
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 4,112,435 2,483,778 1,228,952
---------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $4,134,064 $ 2,662,197 $ 1,200,028
========== =========== ===========
</TABLE>
12
<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, 1997
<TABLE>
<CAPTION>
T. Rowe Price
--------------------------- Vanguard T. Rowe Price
Spectrum Small-CAP Bond International
Income Value Index Bond
Fund Fund Fund Fund
----------- ----------- --------- -----------
<S> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employee wage reductions $ 86,261 $ 195,229 $ 116,883 $ 22,211
Employer Contributions 29,024 49,635 39,782 4,544
----------- ----------- --------- -----------
Total contributions 115,285 244,864 156,665 26,755
----------- ----------- --------- -----------
Rollover deposits 31,705 54,442 86,589 21,837
Loan payments 25,040 13,719 33,532 974
Investment income:
Dividends and interest income 107,955 103,870 55,248 3,525
Net investment appreciation/
(depreciation) 56,418 143,980 23,507 (4,326)
----------- ----------- --------- -----------
Total investment income 164,373 247,850 78,755 (801)
----------- ----------- --------- -----------
Total additions 336,403 560,875 355,541 48,765
----------- ----------- --------- -----------
DEDUCTIONS:
Distributions to participants 136,847 93,481 39,433 2,396
New loans 16,155 14,574 48,838 3,079
----------- ----------- --------- -----------
Total deductions 153,002 108,055 88,271 5,475
----------- ----------- --------- -----------
INTERFUND TRANSFERS (13,340) 686,416 (41,097) (16,344)
----------- ----------- --------- -----------
NET INCREASE 170,061 1,139,236 226,173 26,946
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 1,378,185 568,433 752,477 47,079
----------- ----------- --------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $ 1,548,246 $ 1,707,669 $ 978,650 $ 74,025
=========== =========== ========= ===========
<PAGE>
The FINOVA Bell The Dial
Group Inc. Atlantic Corporation
Common Common Common
Stock Stock Stock
----------- ----------- ---------
ADDITIONS:
Contributions:
Employee wage reductions $ 584,347 $ 0 $ 0
Employer Contributions 181,185 -- --
----------- ----------- ---------
Total contributions 765,532 -- --
----------- ----------- ---------
Rollover deposits 235,696 -- --
Loan payments 122,491 -- --
Investment income:
Dividends and interest income 98,831 178,659 13,997
Net investment appreciation/
(depreciation) 3,227,136 1,413,063 204,750
----------- ----------- ---------
Total investment income 3,325,967 1,591,722 218,747
----------- ----------- ---------
Total additions 4,449,686 1,591,722 218,747
----------- ----------- ---------
DEDUCTIONS:
Distributions to participants 438,443 833,391 33,425
New loans 108,817 8,945 --
----------- ----------- ---------
Total deductions 547,260 842,336 33,425
----------- ----------- ---------
INTERFUND TRANSFERS 743,337 (2,655,783) (485,464)
----------- ----------- ---------
NET INCREASE 4,645,763 (1,906,397) (300,142)
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year 5,281,449 4,577,088 687,301
----------- ----------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $ 9,927,212 $ 2,670,691 $ 387,159
=========== =========== =========
</TABLE>
13
<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, 1997
<TABLE>
<CAPTION>
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:
Distributions 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 (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>
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, 1998
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
or Similar Party Date, Par or Maturity Value Cost Current Value
- -------------------------------------- ---------------------------------------- ----------- -------------
<S> <C> <C> <C>
Vanguard Windsor Fund Common Stock Fund (544,413 shares) $ 8,636,513 $ 8,476,503
T. Rowe Price Equity Index Fund Common Stock Fund (238,407 shares) 5,299,190 7,958,034
T. Rowe Price Growth & Income Fund Common Stock Fund (251,263 shares) 5,678,239 6,595,663
T. Rowe Price New America Growth Fund Common Stock Fund (136,707 shares) 5,263,462 6,533,244
T. Rowe Price Stable Value
Common Trust Fund GIC Fund (5,696,318 shares) 5,696,318 5,696,318
T. Rowe Price International Stock Fund Common Stock Fund (236,206 shares) 3,164,959 3,540,731
T. Rowe Price Prime Reserve Fund Money Market Fund (2,357,859 shares) 2,357,859 2,357,859
T. Rowe Price Spectrum Income Fund Bond Fund (179,354 shares) 2,005,520 2,062,571
T. Rowe Price Small-CAP Value Fund Common Stock Fund (93,315 shares) 2,012,416 1,770,194
Vanguard Bond Index Fund Bond Fund (138,755 shares) 1,379,883 1,425,016
T. Rowe Price International Bond Fund Bond Fund (11,116 shares) 110,479 116,272
The FINOVA Group Inc. Common Stock Common Stock (227,456 shares) 7,329,530 12,268,435
Participant Loans (rate of interest
Participant Notes Receivable 6.0% to 10.0%), maturing in 1999 to 2023 1,565,228 1,565,228
----------- -----------
$50,499,596 $60,366,068
=========== ===========
</TABLE>
16
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1998
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 Cost of Transaction Net Gain/
Involved Asset Price Selling Price Asset Date (Loss)
- ---------------------------------------------------------------------------------------------------------
Series of Transactions:
<S> <C> <C> <C> <C> <C> <C>
T. Rowe Price
Stable Value
Fund GIC Fund $1,869,380 $1,869,380 $1,869,380
T. Rowe Price
Stable Value
Fund GIC Fund $3,431,634 3,431,634
T. Rowe Price
Equity Index Common
Fund Stock 1,090,298 879,491 1,090,298 $ 210,807
T. Rowe Price
Equity Index Common
Fund Stock 2,652,982 2,652,982
The FINOVA Group
Inc.
Common Common
Stock Stock 2,706,460 1,645,943 2,706,460 1,060,517
The FINOVA
Group Inc.
Common Common
Stock Stock 3,972,799 3,972,799
Bell Atlantic
Common Common
Stock Stock 2,629,961 1,502,368 2,629,961 1,127,593
</TABLE>
17
<PAGE>
THE FINOVA GROUP INC. SAVINGS PLAN
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1998
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 Cost of Transaction Net Gain/
Involved Asset Price Selling Price Asset Date (Loss)
- ---------------------------------------------------------------------------------------------------------
Series of Transactions (continued):
<S> <C> <C> <C> <C> <C> <C>
T. Rowe Price
Growth & Common
Income Fund Stock 1,605,113 1,240,364 1,605,113 364,749
T. Rowe Price
Growth & Common
Income Fund Stock 2,683,448 2,683,448
</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, 1999 Signature: /s/ William C. Roche
-------------------------
William C. Roche
Senior Vice President -
Human Resources
Dated: June 19, 1999 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 25
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, 1999,
appearing in this Annual Report on Form 11-K of The FINOVA Group Inc.
Savings Plan for the year ended December 31, 1998.
/s/ DELOITTE & TOUCHE LLP
- --------------------------------
Phoenix, Arizona
June 23, 1999
21
