FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ____________ to ______________
Commission File Number 1 - 2380
--------
A. Full title of the Plan and the address of the Plan, if different from that
of the issuer named below:
AVIALL, INC. EMPLOYEE SAVINGS PLAN
B. Name of the issuer of the securities held pursuant to the Plan and the
address of its principal executive office:
Aviall, Inc.
2750 Regent Blvd
DFW Airport, Texas 75261
Page 1 of 17
The Exhibit Index appears on Page 16
REQUIRED INFORMATION
The financial statements listed in the accompanying index on page 3 are filed as
part of this Form 11-K.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Benefits Administration Committee of the Plan has duly caused this annual report
to be signed on its behalf by the undersigned hereunto duly authorized.
AVIALL, INC. EMPLOYEE SAVINGS PLAN
By: /s/ Jeffrey J. Murphy
-----------------------------------------
Jeffrey J. Murphy
Chairman, Aviall, Inc. Employee Savings
Plan
By: /s/ Jacqueline K. Collier
-----------------------------------------
Jacqueline K. Collier
Vice President and Controller, Aviall,
Inc.
Date: June 28, 2002
2
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
- --------------------------------------------------------------------------------
<Table>
<Caption>
Page
----
Report of Independent Accountants............................................................................4
Financial Statements:
Statements of Net Assets Available for Benefits as of December 31, 2001 and 2000........................5
Statement of Changes in Net Assets Available for Benefits for the Year Ended
December 31, 2001.......................................................................................6
Notes to Financial Statements................................................................................7
Supplemental Schedule:
Schedule H, Line 4i - Schedule of Assets Held for Investment Purposes
as of December 31, 2001................................................................................15
</Table>
All other schedules required by Section 2520.103-10 of the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974 have been omitted because they are not applicable or
are not required.
3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrator of
the Aviall, Inc. Employee Savings Plan:
In our opinion, the accompanying statements of net assets available for benefits
and the related statement of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the Aviall, Inc. Employee Savings Plan (the "Plan") as of December 31, 2001
and 2000, and the changes in net assets available for benefits for the year
ended December 31, 2001 in conformity with accounting principles generally
accepted in the United States of America. 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 of these statements in accordance with auditing standards generally
accepted in the United States of America, which 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,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of Assets Held
for Investment Purposes is presented for the purpose of additional analysis and
is not a required part of the basic financial statements but is 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. This supplemental schedule is the responsibility of the Plan's management.
The supplemental schedule has been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Dallas, Texas
June 14, 2002
4
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
- --------------------------------------------------------------------------------
<Table>
<Caption>
December 31,
----------------------------
2001 2000
------------ ------------
ASSETS
Investments (see Note 3) $ 25,282,693 26,036,304
Receivables
Participant contributions 196 --
Income -- 906
------------ ------------
Total receivables 196 906
Total assets 25,282,889 26,037,210
------------ ------------
LIABILITIES
Excess employer contributions 294 --
Other liabilities 2,967 8,097
------------ ------------
Total liabilities 3,261 8,097
------------ ------------
Net assets available for benefits $ 25,279,628 26,029,113
============ ============
</Table>
See accompanying notes to financial statements.
5
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
- --------------------------------------------------------------------------------
<Table>
<Caption>
Year ended
December 31, 2001
-----------------
Additions:
Additions to net assets attributed to:
Investment income (loss):
Net depreciation in fair value of investments (see Note 3) $ (1,110,558)
Interest 343,071
Dividends 473,410
-----------------
(294,077)
-----------------
Contributions:
Participant 1,844,699
Employer 346,828
-----------------
2,191,527
-----------------
Total additions 1,897,450
-----------------
Deductions:
Deductions from net assets attributed to:
Distributions and other 2,641,163
Plan fees and expenses 5,772
-----------------
Total deductions 2,646,935
-----------------
Net decrease (749,485)
Net assets available for benefits:
Beginning of year 26,029,113
-----------------
End of year $ 25,279,628
=================
</Table>
See accompanying notes to financial statements.
6
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. DESCRIPTION OF PLAN
The following description of the Aviall, Inc. Employee Savings Plan
(the "Plan") is provided for general information purposes only.
Participants should refer to the Plan agreement for more complete
information.
GENERAL
The Plan, sponsored by Aviall, Inc. ("Aviall" or the "Company") was
established on December 7, 1993 in accordance with and subject to the
provisions of the Employee Retirement Income Security Act of 1974
("ERISA"). The Plan is a defined contribution plan and, as such, is
subject to some, but not all, of the provisions of ERISA. It is
excluded from coverage under Title IV of ERISA, which generally
provides for guaranty and insurance of retirement benefits, and it is
not subject to the funding requirements of Title I of ERISA. The Plan
is, however, subject to those provisions of Title I and II of ERISA
that, among other things, require that each participant be furnished
with an annual financial report and a comprehensive description of the
participants' rights under the Plan, set minimum standards of
responsibility applicable to fiduciaries of the Plan, and establish
minimum standards for participation and vesting.
Participation in the Plan is voluntary. Participants may make elective
contributions to the Plan beginning on their date of hire, but must
have one year of qualified service and be at least 21 years of age
before receiving employer matching contributions. In general, new
employees of the Company are eligible to participate in the Plan.
PLAN INVESTMENTS
The Plan is a self-trusteed plan with The 401(k) Company as
recordkeeper. Plan assets are held by various investment fund houses in
separate investment accounts.
Participants may elect to contribute to, or transfer among, any of the
funds except for the Aviall Stock Restricted Shares Fund. Earnings are
allocated based on number of shares attributed to participants'
accounts.
Aviall Stock Restricted Shares Fund: The fund consists of Aviall, Inc.
common stock contributed by the Company in 1998 through a one-time
grant of shares to eligible employees, as defined in the 1997 Plan
amendment. The fund is not a participant directed fund and, as such,
participants do not have access to the fund while employed with the
Company.
Aviall Common Stock Fund: The fund consists of Aviall, Inc. common
stock that is purchased on a regular and continuous basis on the open
market, and a money market fund that is used to facilitate stock
purchases and liquidations. On May 1, 2001, the Aviall Common Stock
Fund moved from a unitized accounting method to a share accounting
method. Under the share accounting method, participants own actual
shares within the fund rather than owning a percentage of all the stock
in the fund.
7
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Washington Mutual Investors A: The fund is a large-cap value fund that
seeks current income as well as growth opportunity. The fund invests
primarily in stocks of U.S. companies.
EuroPacific Growth A: The fund is an international equity fund that
seeks long-term capital growth. The fund invests primarily in stocks of
companies outside the U.S., with a minimum of 80% of its assets in
companies located in Europe or the Pacific Basin.
Templeton Developing Markets Trust A: The fund is an emerging regional
fund that seeks long-term capital growth. The fund invests primarily in
foreign stock of issuers in countries with developing markets.
Franklin Balance Sheet Investment A: The fund is a small-cap value fund
that seeks capital appreciation and income. The fund invests primarily
in stocks of U.S. companies that it believes are undervalued in the
marketplace.
Franklin Real Estate Securities Fund A: The fund is an equity sector
fund that seeks to maximize total return. The fund invests primarily in
stocks of U.S. companies operating in the real estate industry.
MFS Massachusetts Investors Trust A: The fund is a large-cap growth
fund that seeks current income as well as long-term growth. The fund
invests primarily in stocks of U.S. companies. The fund was liquidated
in June 2000 and replaced by the MFS Massachusetts Investors Growth A
fund.
MFS Massachusetts Investors Growth Stock Fund A: The fund is a
large-cap growth fund that seeks long-term growth and future income.
The fund invests primarily in stocks of large companies with
above-average prospects for long-term growth. The fund was introduced
to the Plan in June 2000.
Lord Abbett Developing Growth Fund A: The fund is a small-cap growth
fund that seeks long-term growth. The fund invests primarily in stocks
of small U.S. companies that it believes have above-average, long-term
growth potential.
PIMCO Total Return Fund A/Admin: The fund is an intermediate-term bond
fund that seeks total returns consistent with capital preservation. The
fund invests primarily in bonds, including U.S. government and
corporate bonds.
Pilgrim International Small-Cap Growth A: The fund is an international
equity fund that seeks long-term capital growth. The fund invests
primarily in stocks of foreign small companies.
IRT Stable Value Fund: The fund seeks consistent, positive returns
while preserving principal and maintaining liquidity. The fund invests
in a diversified portfolio of investment contracts with insurance
companies, banks, or other financial institutions.
8
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
CONTRIBUTIONS, VESTING AND FORFEITURES
The Plan was established in accordance with Sections 401(a) and 401(k)
of the Internal Revenue Code ("IRC"). The Plan entitles nonhighly
compensated employees to defer up to 15% of their pre-tax compensation.
Highly compensated employees as defined under IRC Section 414(q) may
defer pre-tax compensation only up to the percentage allowed pursuant
to the nondiscrimination tests. The maximum employee contribution for
2001 and 2000 is $10,500 for both years and is limited by law. Prior to
July 1, 2001, the Company matched 50% of the employee's annual
contribution up to $400 per person based on certain requirements.
Effective July 1, 2001, the Company matches 50% of the employee's
contribution limited to the first 5% of employee compensation per pay
period.
Participants are immediately 100% vested in the earnings of their
individual contributions to the Plan. Participants vest 25% per year in
Company contributions and the earnings attributable to such
contributions beginning with their second year of service, and are 100%
vested in their fifth year of service. Vesting in Company contributions
also occurs upon attainment of retirement age, death or disability.
Upon a distribution to a participant, nonvested Company contributions
are forfeited and are used to offset future Company contributions. In
2001, there were $9,207 of forfeitures that will be used to offset
future Company contributions.
In 1997, the Plan was amended to allow the Company to make
discretionary contributions of Company common stock to the Plan. Such
contributions, when made, are fully-vested and nonforfeitable. In 1998,
the Company made a discretionary contribution of 50 shares of Company
common stock to all eligible employees, as defined in the amendment.
This contribution is included in the Aviall Stock Restricted Shares
Fund and cannot be directed by the participants.
All contributions to the Plan are deposited in the trust. At the
employee's option, contributions are directed into separate participant
directed investment funds, as discussed above.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's
contribution, the Company's matching contribution, as eligible, and the
allocation of the investment fund earnings, as well as charged with
loan fees, as applicable.
ROLLOVERS
Distributions from another qualified plan can be transferred into the
Plan. In 2001 and 2000, rollover accounts in the amount of $89,198 and
$39,518, respectively, were transferred into the Plan and are included
in employee contributions on the statement of changes in net assets
available for Plan benefits.
9
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
PAYMENT OF BENEFITS
In the event of a participant's termination of employment, disability
or death, the participant or beneficiary shall receive an amount equal
to the vested value of their account in a lump-sum payment. Upon
disability or death, a participant's Plan account balance immediately
becomes fully vested.
Upon a participant's attainment of retirement age, a participant's Plan
account balance immediately becomes fully vested and nonforfeitable.
Retirement age is defined as the earlier of the date on which a
participant attains age 65 or the date on which a participant has both
attained age 55 and completed at least ten years of service. Upon
retirement, a lump-sum payment of the participant's account balance
shall be made within 90 days of the distribution request.
Lump sum payments of $5,000 or less are made at the request of a
participant or beneficiary, or annually upon the failure of a
participant or beneficiary to respond to the recordkeepers request for
payment instruction within the specified time frame. For amounts
greater than $5,000, consent of the participant or beneficiary is
required.
The Plan allows hardship withdrawals for the following reasons:
(1) Payment of catastrophic medical expenses;
(2) Purchase of a principal residence;
(3) Payment of tuition of post secondary education;
(4) Payments to prevent the eviction or foreclosure of
principal residence; or
(5) Any other reason deemed a financial hardship by the
Internal Revenue Service ("IRS").
Certain restrictions are placed on participants withdrawing from the
Plan. Such restrictions include:
(1) The amount withdrawn may not exceed the amount of
immediate financial need;
(2) The participant must obtain all nontaxable loans
available under the Plan prior to applying for
hardship withdrawal;
(3) The participant must limit tax-deferred and other
elective contributions under the Plan for the next
taxable year to the applicable limit under section
402(g) of the IRC, minus the employee's elective
contributions for the year of the hardship
distribution; or
(4) The participant may not make tax-deferred
contributions and other elective or voluntary
contributions to the Plan for at least 12 months
after receipt of the hardship withdrawal.
There were no distributions or withdrawals which had been approved but
remained unpaid as of December 31, 2001 and 2000.
10
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
LOANS
An active participant with a vested account balance of at least $2,000
may borrow from their account. Loans are limited to 50% of the vested
account balance and are collateralized by the participant's vested
account balance. Loans must be at least $1,000 but not greater than
$50,000. In general, loans must be repaid within five years through
payroll deductions, unless utilized for the purchase or construction of
a principal residence, in which case the Retirement Committee of the
Plan determines the term. Loans accrue interest at a rate that is
comparable to that of most major lending institutions. Such rates range
from 6.0% to 10.84% for loans outstanding at December 31, 2001. All
principal and interest repayments are allocated to the Plan's
investment funds based on the participant's investment elections at the
time of repayment. Loans that are granted and repaid in compliance with
the Plan provisions will not be considered distributions to the
participant for tax purposes.
Under the Plan's loan provisions, participants are allowed to have up
to two loans outstanding at a given time. Aviall, Inc. stock classified
as "restricted" (Aviall Stock Restricted Shares Fund) is disqualified
from being used to calculate loanable account balances or fund loans
unless otherwise determined by the Plan Administrator. Additionally,
the Plan, as amended, does not allow loans to be refinanced.
PLAN TERMINATION
The Company expects to continue the Plan indefinitely, but reserves the
right to terminate the Plan at any time and for any reason. Upon
termination of the Plan, all benefits shall be nonforfeitable and fully
vested, and each participant shall be entitled to the entire amount
credited to his account. Payments shall be made by the trustee in a
nondiscriminatory manner as directed by the Retirement Committee of the
sponsor.
2. SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared on the accrual basis
of accounting. Purchases and sales of securities are recorded on a
trade date basis, and dividends are reinvested at the date-of-record
market price.
PLAN FEES AND EXPENSES
The Company paid all brokerage, administrative and recordkeeping fees
for the Plan. Loan fees, when applicable, were charged to the
Participant accounts and were the only expenses paid with Plan assets.
Additionally, certain administrative services were performed by the
Company at no cost to the Plan.
11
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
PARTICIPANT LOANS RECEIVABLE
Participant loans receivable represent cash advances to participants of
the Plan less any payments made.
INVESTMENT VALUATION
The Plan's investments are stated at fair value, using quoted market
prices, except for participant loans, which are valued at cost.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Gains and losses on securities transactions are recorded on a current
value basis. For purposes of reporting under ERISA, gains and losses on
investments sold are calculated as sales proceeds less current value of
such investments at the beginning of the Plan year or acquisition cost
if acquired during the Plan year. Unrealized gains and losses are
calculated as current value of investments at the end of the Plan year
less current value at the beginning of the Plan year or acquisition
cost if acquired during the Plan year.
USE OF ESTIMATES
The preparation of the financial statements in conformity with
accounting principles generally accepted in the United States of
America requires the use of estimates and assumptions that affect the
reported amounts of net assets available for benefits and the related
changes in net assets available for benefits. Actual results could
differ from those estimates.
3. INVESTMENTS
Investments held by the Plan at December 31, 2001 and 2000 consisted of
the following:
<Table>
<Caption>
2001 2000
------------ ------------
Current Current
Value Value
------------ ------------
Mutual funds $ 17,076,957 $ 18,883,666
Money market funds 1,604 2,474,793
Pooled investment funds 4,968,534 2,479,266
Common stock 2,574,354 1,441,085
Participant loans receivable 660,090 748,896
Cash 1,154 8,598
------------ ------------
$ 25,282,693 $ 26,036,304
============ ============
</Table>
12
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The following presents investments that represent 5% or more of the
Plan's net assets at December 31, 2001 and 2000:
<Table>
<Caption>
December 31,
-----------------------
2001 2000
---------- ----------
Aviall, Inc. Common Stock Funds:
Aviall, Inc. Common Stock (330,874 and 274,043 shares,
respectively) $2,498,099 $1,386,658
Aviall Stock Restricted Shares (10,100 and 10,750 shares,
respectively)* $ 76,255 $ 54,427
Alliance Gov't. Reserve Money Market $ -- $ 43,633
Washington Mutual Investors A Fund (179,657 and 171,529
shares, respectively) $5,075,325 $4,979,499
EuroPacific Growth A Fund (52,092 and 44,893 shares,
respectively) $1,399,729 $1,407,405
Franklin Balance Sheet Investment A Fund (32,708 and 33,666
shares, respectively) $1,308,985 $1,200,895
MFS Massachusetts Investors Growth A Fund (323,025 and
336,360 shares, respectively) $4,163,799 $5,765,223
Lord Abbett Developing Growth A Fund (96,976 and 116,464
shares, respectively) $1,474,042 $1,903,024
PIMCO Total Return A/Admin Fund (179,965 and 127,957 shares,
respectively) $1,882,436 $1,329,474
Stable Value Funds:
IRT Stable Value Fund (4,968,534 and 2,479,266 shares,
respectively) $4,968,534 $2,479,266
Money Market Accounts (1,604 and 2,431,160 shares,
respectively) $ 1,604 $2,431,160
</Table>
* Nonparticipant directed
During 2001, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year)
depreciated in value by $1,110,558 as follows:
<Table>
Mutual funds $(1,990,686)
Common stock 880,128
-----------
$(1,110,558)
===========
</Table>
13
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
4. NONPARTICIPANT-DIRECTED INVESTMENTS
Information about the net assets and the significant components of the
changes in net assets relating to the nonparticipant-directed
investments is as follows:
<Table>
<Caption>
December 31,
-----------------------
2001 2000
---------- ----------
Net assets:
Common stock $ 76,255 $ 54,427
---------- ----------
$ 76,255 $ 54,427
========== ==========
</Table>
<Table>
<Caption>
Year ended
December 31, 2001
-----------------
Changes in net assets:
Net appreciation in fair value $ 27,730
Distributions (5,902)
-----------------
$ 21,828
=================
</Table>
5. TAX STATUS OF THE PLAN
The IRS granted a favorable letter of determination under the
applicable section of the IRC on September 1, 1995 and, therefore, the
trust is exempt from taxation under Section 501(a) of the IRC. Once
qualified, the Plan is required to operate in conformity with the IRC
to maintain its qualification. Generally, contributions to a qualified
plan are deductible by the Company when made, earnings of the trust are
tax exempt and participants are not taxed on their benefits until
withdrawn from the Plan.
Management is unaware of any material variations in the operations of
the Plan from the terms of the Plan documents, including amendments.
Management believes the Plan, as amended, continues to qualify and
operate as designed in accordance with applicable sections of the
Internal Revenue Code and ERISA.
6. SUBSEQUENT EVENTS
The Plan was amended and restated effective January 1, 2002 to comply
with the mandatory provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001. Additionally, in conjunction with this
amendment, the Company elected to voluntarily adopt permissive
provisions affecting catch-up contributions for older workers and
treatment of forms distribution. Management expects the amendment will
not have a material effect on the Plan's net assets available for
benefits or on participant accounts.
14
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
SCHEDULE H, LINE 4i - FORM 5500
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2001
- --------------------------------------------------------------------------------
<Table>
<Caption>
(c)
(a) (b) Description of Investment including (e)
Party in Identity of Issue, Borrower, Lessor Maturity Date, Rate of Interest, (d) Current
Interest or Similar Party Collateral, Par or Maturity Value Cost** Value
- ------------- --------------------------------------------- ------------------------------------------- ---------- --------------
Corporate Common Stocks:
* Aviall, Inc. 330,874 shares $ 2,498,099
* Aviall, Inc. Restricted Shares 10,100 shares $82,706 76,255
Mutual Funds:
Washington Mutual Investors A 179,657 shares 5,075,325
EuroPacific Growth A 52,092 shares 1,399,729
Templeton Developing Markets Trust A 30,252 shares 298,891
Franklin Balance Sheet Investment A 32,708 shares 1,308,985
Franklin Real Estate Securities A 42,471 shares 700,779
MFS Massachusetts Investors Growth A 323,025 shares 4,163,799
Lord Abbett Developing Growth A 96,976 shares 1,474,042
PIMCO Total Return A/Admin 179,965 shares 1,882,436
Pilgrim Int'l Small Cap Growth A 34,172 shares 772,971
Pooled Investment Funds:
IRT Stable Value Fund 4,968,534 shares 4,968,534
Money Market Funds:
Alliance Capital Reserve 1,604 shares 1,604
Cash:
Bank One Trust Account Balance at 12/31/01 196
Bank One Disbursement Account Balance at 12/31/01 958
* Participant Loans Interest rates range from 6.0% to 10.84%
(Term not exceeding five years for
nonresidential loans and ten years for
residential loans) 660,090
-----------
Total Assets Held for Investment $25,282,693
===========
</Table>
* Represents an investment with a party in interest.
** Disclosure of cost of investments is not required for participant
directed investments.
15
AVIALL, INC.
EMPLOYEE SAVINGS PLAN
INDEX TO EXHIBITS
<Table>
<Caption>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
23 Consent of Independent Accountants
</Table>
16