-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WsFDmOnvvTcGGiSefNOjHH290JVTQfcM7k6D47zRCr+f2m1lEjqO7RZ9r72T3gso aD74w4dOI7bRHHGW5yXRCQ== 0000950152-98-005498.txt : 19980625 0000950152-98-005498.hdr.sgml : 19980625 ACCESSION NUMBER: 0000950152-98-005498 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980624 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIEBOLD INC CENTRAL INDEX KEY: 0000028823 STANDARD INDUSTRIAL CLASSIFICATION: CALCULATING & ACCOUNTING MACHINES (NO ELECTRONIC COMPUTERS) [3578] IRS NUMBER: 340183970 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-04879 FILM NUMBER: 98652858 BUSINESS ADDRESS: STREET 1: P.O. BOX 8230 STREET 2: 5995 MAYFAIR RD CITY: CANTON STATE: OH ZIP: 44711-8230 BUSINESS PHONE: 2164894000 MAIL ADDRESS: STREET 1: PO BOX 8230 CITY: CANTON STATE: OH ZIP: 44711-8230 11-K 1 DIEBOLD, INC. 401K SAVINGS PLAN 11-K 1 - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 - -------------------------------------------------------------------------------- FORM 11-K (X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 OR ( ) TRANSITION REPORT PURSUANT TO 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from .......... to .......... Commission file number 1-4879 ------ DIEBOLD, INCORPORATED 401(K) SAVINGS PLAN - -------------------------------------------------------------------------------- (Full title of the plan) Diebold, Incorporated 5995 Mayfair Road P.O. Box 3077 North Canton, Ohio 44720-8077 ----------------------------------------------------------------------------------------------------- (Name of issuer of the securities held by the plan and the address of its principal executive office)
2 REQUIRED INFORMATION Audited plan financial statements and schedules prepared in accordance with the financial reporting requirements of the Employee Retirement Income Security Act of 1974, as amended, are filed herewith in lieu of the requirements of an audited statement of financial condition and statement of income and changes in plan equity. Financial Statements and Exhibits - --------------------------------- A) The following financial statements and schedules are filed as part of this annual report: 1) Statements of Net Assets Available for Benefits (with Fund Information) - December 31, 1997 and 1996 2) Statements of Changes in Net Assets Available for Benefits (with Fund Information) - Years Ended December 31, 1997 and 1996 3) Notes to Financial Statements - December 31, 1997 and 1996 4) Schedule 1 - Line 27 a - Schedule of Assets Held for Investment Purposes - December 31, 1997 5) Schedule 2 - Line 27 d - Schedule of Reportable Transactions - Year Ended December 31, 1997 B) The following exhibit is filed as part of this annual report: 23. Consent of Independent Auditors All other schedules required by 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 there is no information to report. -2- 3 INDEPENDENT AUDITORS' REPORT The Plan Administrator and Participants Diebold, Incorporated 401(k) Savings Plan We have audited the accompanying statements of net assets available for benefits of Diebold, Incorporated 401(k) Savings 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, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Diebold, Incorporated 401(k) Savings Plan as of 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 performed 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 fund information in the statements of net assets available for benefits and the statements of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/KPMG PEAT MARWICK LLP KPMG PEAT MARWICK LLP Cleveland, Ohio June 5, 1998 -3- 4
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1997 PARTICIPANT DIRECTED ------------------------------------------------------------------------------------- MANAGED COMPANY GROWTH EQUITY INCOME STOCK COMPANY OVERSEAS INDEX BALANCED PORTFOLIO FUND FUND FUND FUND FUND ---------- ---------- ---------- ---------- ---------- ---------- Assets: Investments Guaranteed Investment Contracts - Fidelity Managed Income Portfolio $7,060,602 $ -- $ -- $ -- $ -- $ -- Equities - Diebold, Incorporated Common Shares -- 105,417,500 -- -- -- -- Mutual funds - Fidelity Mutual Funds -- -- 25,150,545 1,381,825 19,462,186 9,854,564 Fidelity Retirement Government Money Market -- -- -- -- -- -- Victory Financial Reserves Fund 567 98,476 4,121 1,822 4,399 667 Participant notes receivable -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Total investments 7,061,169 105,515,976 25,154,666 1,383,647 19,466,585 9,855,231 Cash -- -- -- -- -- -- Accrued income 35,415 1,685 412 131 435 130 ---------- ---------- ---------- ---------- ---------- ---------- Total assets 7,096,584 105,517,661 25,155,078 1,383,778 19,467,020 9,855,361 Accounts payable 35,373 91,396 -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Net assets available for benefits: $7,061,211 $105,426,265 $25,155,078 $1,383,778 $19,467,020 $9,855,361 ========== ============ =========== ========== =========== ========== PARTICIPANT DIRECTED ---------------------------------------- INVESTMENT RETIREMENT TOTAL GRADE BOND GOVERNMENT LOAN ALL FUND FUND FUND FUNDS ---------- ---------- ---------- ---------- Assets: Investments Guaranteed Investment Contracts - Fidelity Managed Income Portfolio $ -- $ -- $ -- $ 7,060,602 Equities - Diebold, Incorporated Common Shares -- -- -- 105,417,500 Mutual funds - Fidelity Mutual Funds 4,940,003 -- -- 60,789,123 Fidelity Retirement Government Money Market -- 1,805,962 -- 1,805,962 Victory Financial Reserves Fund 273 104 -- 110,429 Participant notes receivable -- -- 1, 816,232 1,816,232 ---------- ---------- ---------- ------------ Total investments 4,940,276 1,806,066 1,816,232 176,999,848 Cash -- -- 282 282 Accrued income 25,364 8,025 -- 71,597 ---------- ---------- ---------- ------------ Total assets 4,965,640 1,814,091 1,816,514 177,071,727 Accounts payable 25,284 7,988 -- 160,041 ---------- ---------- ---------- ------------ Net assets available for benefits: $4,940,356 $1,806,103 $1,816,514 $176,911,686 ========== ========== ========== ============
See accompanying notes to financial statements. -4- 5
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1996 PARTICIPANT DIRECTED -------------------------------------------------------------------------------------------- MANAGED COMPANY GROWTH EQUITY INCOME STOCK COMPANY OVERSEAS INDEX BALANCED PORTFOLIO FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ------------ Assets: Investments Guaranteed Investment Contracts - Fidelity Managed Income Portfolio $ 6,470,705 $ -- $ -- $ -- $ -- $ -- Equities - Diebold, Incorporated Common Shares -- 74,049,459 -- -- -- -- Mutual funds - Fidelity Mutual Funds -- -- 19,355,357 433,521 11,947,402 7,373,908 Fidelity Retirement Government Money Market -- -- -- -- -- -- Victory Financial Reserves Fund 26,579 1,781,007 269,263 66,447 182,243 92,934 Participant notes receivable -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Total investments 6,497,284 75,830,466 19,624,620 499,968 12,129,645 7,466,842 Cash -- -- -- -- -- -- Accrued income 31,747 5,047 322 168 266 114 ------------ ------------ ------------ ------------ ------------ ------------ Total assets 6,529,031 75,835,513 19,624,942 500,136 12,129,911 7,466,956 Accounts payable 31,669 1,365,388 129,800 57,850 101,100 47,270 ------------ ------------ ------------ ------------ ------------ ------------ Net assets available for benefits: $ 6,497,362 $ 74,470,125 $ 19,495,142 $ 442,286 $ 12,028,811 $ 7,419,686 ============ ============ ============ ============ ============ ============ PARTICIPANT DIRECTED ------------------------------------------- INVESTMENT RETIREMENT TOTAL GRADE BOND GOVERNMENT LOAN ALL FUND FUND FUND FUNDS ------------ ------------ ------------ ------------ Assets: Investments Guaranteed Investment Contracts - Fidelity Managed Income Portfolio $ -- $ -- $ -- $ 6,470,705 Equities - Diebold, Incorporated Common Shares -- -- -- 74,049,459 Mutual funds - Fidelity Mutual Funds 4,348,337 -- -- 43,458,525 Fidelity Retirement Government Money Market -- 1,544,947 -- 1,544,947 Victory Financial Reserves Fund 59,725 33,453 -- 2,511,651 Participant notes receivable -- -- 1,032,138 1,032,138 ------------ ------------ ------------ ------------ Total investments 4,408,062 1,578,400 1,032,138 129,067,425 Cash -- -- 26,127 26,127 Accrued income 23,509 6,694 -- 67,867 ------------ ------------ ------------ ------------ Total assets 4,431,571 1,585,094 1,058,265 129,161,419 Accounts payable 54,511 28,702 -- 1,816,290 ------------ ------------ ------------ ------------ Net assets available for benefits: $ 4,377,060 $ 1,556,392 $ 1,058,265 $127,345,129 ============ ============ ============ ============
See accompanying notes to financial statements. -5- 6
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) YEAR ENDED DECEMBER 31, 1997 PARTICIPANT DIRECTED ------------------------------------------------------------------------------------- MANAGED COMPANY GROWTH EQUITY INCOME STOCK COMPANY OVERSEAS INDEX PORTFOLIO FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ Additions: Contributions Participant $ 787,481 $ 6,212,004 $ 3,460,045 $ 434,777 $ 2,339,930 Employer 109,324 8,064,700 390,986 41,892 250,695 ------------ ------------ ------------ ------------ ------------ 896,805 14,276,704 3,851,031 476,669 2,590,625 Investment income/(loss): Registered Investment Funds 397,741 19,580 2,382,448 66,348 400,006 Dividends -- 977,211 -- -- -- Interest -- -- -- -- -- Net appreciation/ (depreciation) in the fair value of investments -- 17,731,073 1,298,271 (16,340) 3,873,537 ------------ ------------ ------------ ------------ ------------ 397,741 18,727,864 3,680,719 50,008 4,273,543 ------------ ------------ ------------ ------------ ------------ Total additions, net 1,294,546 33,004,568 7,531,750 526,677 6,864,168 Deductions: Withdrawals (354,355) (2,191,465) (660,165) (26,659) (392,320) Excess of additions ------------ ------------ ------------ ------------ ------------ over deductions 940,191 30,813,103 6,871,585 500,018 6,471,848 Transfers between funds (376,342) 143,037 (1,211,649) 441,474 966,361 Net assets available for benefits: Beginning of year 6,497,362 74,470,125 19,495,142 442,286 12,028,811 ------------ ------------ ------------ ------------ ------------ End of year $ 7,061,211 $105,426,265 $ 25,155,078 $ 1,383,778 $ 19,467,020 ============ ============ ============ ============ ============ PARTICIPANT DIRECTED -------------------------------------------------------------- INVESTMENT RETIREMENT TOTAL BALANCED GRADE BOND GOVERNMENT LOAN ALL FUND FUND FUND FUND FUNDS ------------ ------------ ------------ ------------ ------------ Additions: Contributions Participant $ 1,165,580 $ 629,693 $ 284,672 $ -- $ 15,314,182 Employer 137,779 76,512 32,961 -- 9,104,849 ------------ ------------ ------------ ------------ ------------ 1,303,359 706,205 317,633 -- 24,419,031 Investment income/(loss): Registered Investment Funds 1,144,427 283,108 87,905 -- 4,781,563 Dividends -- -- -- -- 977,211 Interest -- -- -- 234,479 234,479 Net appreciation/ (depreciation) in the fair value of investments 577,427 98,530 -- -- 23,562,498 ------------ ------------ ------------ ------------ ------------ 1,721,854 381,638 87,905 234,479 29,555,751 ------------ ------------ ------------ ------------ ------------ Total additions, net 3,025,213 1,087,843 405,538 234,479 53,974,782 Deductions: Withdrawals (287,081) (122,637) (127,414) (246,129) (4,408,225) Excess of additions ------------ ------------ ------------ ------------ ------------ over deductions 2,738,132 965,206 278,124 (11,650) 49,566,557 Transfers between funds (302,457) (401,910) (28,413) 769,899 -- Net assets available for benefits: Beginning of year 7,419,686 4,377,060 1,556,392 1,058,265 127,345,129 ------------ ------------ ------------ ------------ ------------ End of year $ 9,855,361 $ 4,940,356 $ 1,806,103 $ 1,816,514 $176,911,686 ============ ============ ============ ============ ============
See accompanying notes to financial statements. -6- 7
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) YEAR ENDED DECEMBER 31, 1996 PARTICIPANT DIRECTED ----------------------------------------------------------------------------------------------------- MANAGED COMPANY GROWTH EQUITY INCOME STOCK COMPANY OVERSEAS INDEX BALANCED PORTFOLIO FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ------------ Additions: Contributions Participant $ 905,914 $ 4,156,407 $ 3,572,279 $ 123,405 $ 1,919,208 $ 1,352,514 Employer 113,574 5,557,515 382,439 9,499 210,261 156,662 ------------ ------------ ------------ ------------ ------------ ------------ 1,019,488 9,713,922 3,954,718 132,904 2,129,469 1,509,176 Investment income/(loss): Registered Investment Funds 345,036 31,320 852,265 24,944 292,093 337,789 Dividends -- 737,891 -- -- -- -- Interest -- -- -- -- -- -- Net appreciation/ (depreciation) in the fair value of investments -- 28,112,592 1,700,353 (2,927) 1,764,422 300,189 ------------ ------------ ------------ ------------ ------------ ------------ 345,036 28,881,803 2,552,618 22,017 2,056,515 637,978 ------------ ------------ ------------ ------------ ------------ ------------ Total additions, net 1,364,524 38,595,725 6,507,336 154,921 4,185,984 2,147,154 Deductions: Withdrawals (317,363) (1,525,586) (579,381) (111) (253,499) (261,363) Excess of additions ------------ ------------ ------------ ------------ ------------ ------------ over deductions 1,047,161 37,070,139 5,927,955 154,810 3,932,485 1,885,791 Transfers between funds (179,709) 623,005 (237,011) 287,476 (33,288) (1,034,937) Net assets available for benefits: Beginning of year 5,629,910 36,776,981 13,804,198 -- 8,129,614 6,568,832 ------------ ------------ ------------ ------------ ------------ ------------ End of year $ 6,497,362 $ 74,470,125 $ 19,495,142 $ 442,286 $ 12,028,811 $ 7,419,686 ============ ============ ============ ============ ============ ============ PARTICIPANT DIRECTED ---------------------------------------------- INVESTMENT RETIREMENT TOTAL GRADE BOND GOVERNMENT LOAN ALL FUND FUND FUND FUNDS ------------ ------------ ------------ ------------ Additions: Contributions Participant $ 804,727 $ 306,066 $ -- $ 13,140,520 Employer 99,923 36,121 -- 6,565,994 ------------ ------------ ------------ ------------ 904,650 342,187 -- 19,706,514 Investment income/(loss): Registered Investment Funds 276,298 72,502 -- 2,232,247 Dividends -- -- -- 737,891 Interest -- -- 110,640 110,640 Net appreciation/ (depreciation) in the fair value of investments (145,131) -- -- 31,729,498 ------------ ------------ ------------ ------------ 131,167 72,502 110,640 34,810,276 ------------ ------------ ------------ ------------ Total additions, net 1,035,817 414,689 110,640 54,516,790 Deductions: Withdrawals (180,411) (48,741) (1,073,201) (4,239,656) Excess of additions ------------ ------------ ------------ ------------ over deductions 855,406 365,948 (962,561) 50,277,134 Transfers between funds (546,185) (94,005) 1,214,654 -- Net assets available for benefits: Beginning of year 4,067,839 1,284,449 806,172 77,067,995 ------------ ------------ ------------ ------------ End of year $ 4,377,060 $ 1,556,392 $ 1,058,265 $127,345,129 ============ ============ ============ ============
See accompanying notes to financial statements. -7- 8 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 (1) Description of the Plan ----------------------- The following brief description of the Diebold, Incorporated 401(k) Savings Plan (the "Plan") provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. (a) General ------- The Board of Directors of Diebold, Incorporated (the "Employer") established this defined contribution plan effective as of April 1, 1990. The Plan covers all non-bargaining unit employees of the Employer and affiliates who have completed ninety days of employment. The Plan is subject to certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA). (b) Contributions ------------- For the years ended December 31, 1997 and 1996, the Plan allowed each participant to contribute from one to ten percent (in one percent increments) of pre-tax compensation, but not in excess of the maximum amount permitted by the Internal Revenue Code of 1986. In 1997 and 1996, the Employer contributed as a Basic Matching Contribution an amount equal to sixty cents for each dollar of a participant's pre-tax contributions during each payroll period up to three percent of the participant's compensation in such payroll period and thirty cents for each dollar of a participant's pre-tax contributions on the next three percent of the participant's compensation in such payroll period. At the end of any Plan Year, the Employer, at its discretion, may determine that an Additional Matching Contribution be made for the next succeeding Plan year. The amount of any Additional Matching Contribution shall be determined solely by action of the Board of Directors. An Additional Matching Contribution was made in the first quarter of 1997 and during the entire year of 1996 such that the total matching contribution (including the Basic Matching Contribution) was eighty cents for each dollar of a participant's pre-tax contributions during each payroll period up to four percent of the participant's compensation in such payroll period and forty cents for each dollar of a participant's pre-tax contributions on the next four percent of the participant's compensation in such payroll period. For the period of April 1, 1997 through December 31, 1997, an Additional Matching Contribution was made such that the total matching contribution (including the Basic Matching Contribution) was one dollar for each dollar of a participant's pre-tax contributions during each payroll period up to four percent of the participant's compensation in such payroll period and forty cents for each dollar of a participant's pre-tax contributions on the next four percent of the participant's compensation in such payroll period. -8- 9 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (continued) (c) Participants' Accounts ---------------------- As of January 1, 1992, the Employer, as the plan administrator for the Plan, established two separate accounts for each participant, a Regular Account and a Retiree Medical Funding Account. All participant contributions are deposited into the Regular Account. Each participant may direct that his or her contributions to the Regular Account be invested in the Managed Income Portfolio, the Company Stock Fund, the Growth Company Fund, the Overseas Fund, the Equity Index Portfolio, the Balanced Fund, the Investment Grade Bond Fund, the Retirement Government Money Market Fund, or any combination thereof with the minimum investment in any fund/portfolio of five percent. For 1997 and 1996, the Employer's Basic Matching Contribution was divided between the Regular Account and the Retiree Medical Funding Account. The portion of the Employer's Basic Matching Contribution which was equal to thirty cents for each dollar contributed by a participant up to three percent of the participant's compensation in such payroll period was deposited in the Retiree Medical Funding Account. These Employer contributions were invested in the above named funds and/or portfolios according to the participant's direction. In 1997 and 1996, any additional Matching Contribution was deposited in the Regular Account and was invested in the Company Stock Fund. (d) Vesting ------- A participant's pre-tax contributions and earnings and the Employer's pre-tax contributions and earnings are immediately vested and nonforfeitable. (e) Distribution of Benefits ------------------------ Upon termination of service with the Employer or affiliate, a participant shall receive his or her total account balance in a lump sum payment if such total account balance does not exceed $3,500. Otherwise, the participant may elect to receive his or her total account balance in a lump sum payment upon termination, defer receipt until retirement date, or make a direct rollover to a qualified plan. A participant entitled to a distribution during the years ended December 31, 1997 and 1996, received cash for his or her lump sum distribution, except for funds in the Company Stock Fund for which an election of cash or the Employer's Common Shares was made. (f) Withdrawals ----------- Until March 31, 1995, a financial hardship provision was available enabling a participant to withdraw an amount to cover an immediate and heavy financial need. (g) Participant Notes Receivable ---------------------------- Effective April 1, 1995, the Plan was amended and the Loan Fund was established to administer the activities of participant loans. Loan transactions are treated as a transfer to (from) the investment fund from (to) the Loan Fund. Under the terms of the Plan, active participants of the Plan may borrow against their account balances. The minimum amount of any loan is $1,000 and the maximum is $50,000 or 50% of a participant's total vested balance (in $100 increments), whichever is less. Loan payments are made through equal payroll deductions over the loan period of one to five years. All loans must be repaid in full year increments. Interest charged is determined by the Savings Plan Committee based on the prime interest rate plus one percent as of the loan effective date. -9- 10 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (continued) (h) Expenses -------- All costs and expenses incident to the administration of the Plan and the management of the trust fund are paid by the Plan administrator except for loan processing and administration fees associated with the Loan Fund which are borne by the individual loan participants. (2) Summary of Significant Accounting Policies ------------------------------------------ (a) Basis of Presentation --------------------- The accompanying financial statements have been prepared on an accrual basis in accordance with generally accepted accounting principles. (b) Investments ----------- The Plan's investments are stated at fair value as of the last business day of the Plan year, except for investments in the Managed Income Portfolio. This fund is represented by purchases of units in the Fidelity Managed Income Portfolio, which invests primarily in guaranteed investment contracts. The fund is fully benefit-responsive, and accordingly, investments in this fund are valued at the underlying contract 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. The Company stock is valued at its quoted market price. Participant notes receivable are valued at cost which approximates fair value. All purchases and sales transactions are recorded on a trade date basis. (c) 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 net assets available for benefits and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of changes in net assets available for plan benefits during the reporting period. Actual results could differ from those estimates. (3) Federal Income Taxes -------------------- On November 19, 1992, the Plan received a determination letter from the Internal Revenue Service that the Plan qualified under the provisions of Section 401(a) and 401(k) of the Internal Revenue Code and that the trust was exempt from federal income taxes under Section 501(c). The plan administrator believes that the Plan continues to qualify under the provisions of Section 401(a) and 401(k) and that the trust is exempt from federal income taxes. (4) Plan Termination ---------------- Although it has not expressed any intent to do so, the Employer reserves the right at any time, by action of its Board of Directors, to terminate the Plan or discontinue contributions thereto. (5) Subsequent Events ----------------- Subsequent to the Plan year-end, the value of the Company Stock Fund declined significantly due to a drop in the price of Diebold, Incorporated shares. Shares of Diebold, Incorporated stock are traded on the New York Stock Exchange. From January 1, 1998 through June 15, 1998, the price range of shares varied from a low of $23.63 to a high of $55.31. -10- 11 Schedule 1 ---------- DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN LINE 27 a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997 EIN: 34-0183970 Plan Number: 012
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E -------- -------- -------- -------- -------- Description of Investment Identity of Issue, Including Maturity Date, Rate Borrower, Lessor, of Interest, Collateral, Par, or Current or Similar Party Maturity Value Cost Value ------------------ -------------------------------- ----------- ------------ Fidelity Investments Guaranteed Investment Contracts $ 7,060,602 $ 7,060,602 * Diebold, Incorporated 2,082,321 Shares Common Stock 45,424,911 105,417,500 Fidelity Investments Growth Company Fund 19,828,099 25,150,545 Fidelity Investments Overseas Fund 1,400,981 1,381,825 Fidelity Investments Equity Index Portfolio 11,945,638 19,462,186 Fidelity Investments Balanced Fund 8,715,397 9,854,564 Fidelity Investments Investment Grade Bond Fund 4,912,992 4,940,003 Fidelity Investments Retirement Government Money Market 1,805,962 1,805,962 * Key Trust Victory Financial Reserves Fund 110,429 110,429 * Participant Loans Participant loans with various rates of interest from 9.25% to 10% and various maturity dates from 1998 to 2003 0 1,816,232 Cash 282 282 ------------ ------------ $101,205,293 $177,000,130 ============ ============
----------------- * Party-in-interest NOTE: The cost of participant loans is $0 based upon instructions for the Form 5500 Line 27a. See accompanying independent auditor's report. -11- 12 Schedule 2 ---------- DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN Line 27(d) - Schedule of Reportable (5%) Transactions Year ended December 31, 1997 Ein: 34-0183970 Plan Number: 012 - -------------------------------------------------------------------------------- Series transactions, when aggregated, involving an amount in excess of 5 percent of the current value of Plan assets:
Column A Column B Column C Column D Column E - -------- -------- -------- -------- -------- Total Dollar Total Dollar Identity of Value of Value of Lease Party Involved Description of Assets Purchases Sales Rental - -------------- --------------------- --------- ----- ------ Key Trust Victory Financial Company of Reserves Fund; Ohio, N.A. 679 purchases; 326 sales $ 26,722,351 $ 29,123,573 $ -- Diebold, Inc. Common Stock; 25 purchases; 2 sales 14,207,428 101,958 -- Column A Column F Column G Column H Column I - -------- -------- -------- -------- -------- Current Value Expense of Asset on Identity of Incurred with Cost of Transaction Net Gain Party Involved Transaction Asset Date or Loss - -------------- ----------- ----- ---- ------- Key Trust Company of Ohio, N.A. $ -- $ 55,845,924 $ 55,845,924 $ -- Diebold, Inc. 16,627 14,254,646 14,309,386 54,740
See accompanying independent auditors' report. -12- 13 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN ----------------------------------------- (Name of Plan) Date: June 24, 1998 By:/s/Gerald F. Morris ------------- ------------------------------------ Gerald F. Morris Executive Vice President and Chief Financial Officer (Principal Accounting and Financial Officer) -13- 14 DIEBOLD, INCORPORATED FORM 11-K INDEX TO EXHIBITS EXHIBIT NO. PAGE NO. - ----------- -------- 23. Consent of Independent Auditors 15 -14- EX-23 2 EXHIBIT 23 1 EXHIBIT 23 Consent of Independent Auditors ------------------------------- The Board of Directors Diebold, Incorporated We consent to incorporation by reference in the Registration Statement (No.33-32960) on Form S-8 of Diebold, Incorporated of our report dated June 5, 1998 relating to the statements of net assets available for benefits of the Diebold, Incorporated 401(k) Savings 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, which report appears in the December 31, 1997 annual report on Form 11-K of the Diebold, Incorporated 401(k) Savings Plan. /s/KPMG Peat Marwick LLP - ------------------------ KPMG PEAT MARWICK LLP Cleveland, Ohio June 24, 1998 -15- -----END PRIVACY-ENHANCED MESSAGE-----