-----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, Ic4eYByR8K4P/UFbZPy03RlvEKwPpsE6M0EqJCj/CkDiklgc5BKDLB7mrZyqOoPX ISzcWoA83Qfz5zaYNS+E2A== 0000950152-99-005659.txt : 19990630 0000950152-99-005659.hdr.sgml : 19990630 ACCESSION NUMBER: 0000950152-99-005659 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 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: 99654728 BUSINESS ADDRESS: STREET 1: P.O. BOX 3077 STREET 2: 5995 MAYFAIR RD CITY: CANTON STATE: OH ZIP: 44720-8077 BUSINESS PHONE: 3304904000 MAIL ADDRESS: STREET 1: PO BOX 3077 CITY: CANTON STATE: OH ZIP: 44720-8077 11-K 1 DIEBOLD, INCORPORATED 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, 1998 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 PO 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, 1998 and 1997 2) Statements of Changes in Net Assets Available for Benefits (with Fund Information) - Years Ended December 31, 1998 and 1997 3) Notes to Financial Statements - December 31, 1998 and 1997 4) Schedule 1 - Line 27 a - Schedule of Assets Held for Investment Purposes - December 31, 1998 5) Schedule 2 - Line 27 d - Schedule of Reportable Transactions - Year Ended December 31, 1998 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, 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, 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, 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 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 LLP KPMG LLP Cleveland, Ohio June 28, 1999 -3- 4 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1998
Participant Directed --------------------------------------------------------------------------------------------- Managed Income Portfolio Growth Company Fund Overseas Fund Equity Index Fund Balanced Fund --------------------------------------------------------------------------------------------- Assets: Investments Guaranteed Investment Contracts - Fidelity Managed Income Portfolio $ - $ - $ - $ - $ - Equities - Diebold, Incorporated Common Shares - - - - - Mutual funds - Fidelity Mutual Funds - - - - - Fidelity Retirement Government Money Market - - - - - Victory Financial Reserves Fund - - - - - Vanguard Mutual Funds - - - - - Vanguard Retirement Savings Trust - - - - - Loomis Sayles Mutual Funds - - - - - Participant Notes Receivable - - - - - --------------------------------------------------------------------------------------------- Total Investments - - - - - Cash - - - - - --------------------------------------------------------------------------------------------- Total Assets - - - - - Accounts Payable - - - - - --------------------------------------------------------------------------------------------- Net assets available for benefits: $ - $ - $ - $ - $ - =============================================================================================
Participant Directed --------------------------------------- Retirement Investment Grade Fund Government Fund --------------------------------------- Assets: Investments Guaranteed Investment Contracts - Fidelity Managed Income Portfolio $ - $ - Equities - Diebold, Incorporated Common Shares - - Mutual funds - Fidelity Mutual Funds - - Fidelity Retirement Government Money Market - - Victory Financial Reserves Fund - - Vanguard Mutual Funds - - Vanguard Retirement Savings Trust - - Loomis Sayles Mutual Funds - - Participant Notes Receivable - - -------------------------------------- Total Investments - - Cash 4 - -------------------------------------- Total Assets 4 - Accounts Payable 4 - -------------------------------------- Net assets available for benefits: $ - $ - ======================================
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, 1998 (continued)
Participant Directed ------------------------------------------------------------------------------------------- Loomis Sayles Loomis Sayles Small Cap Vanguard Bond Fund Value Fund Vanguard Index International Vanguard Vanguard Total International Retail Class 500 Portfolio Growth Portfolio Primecap Fund Bond Fund ------------------------------------------------------------------------------------------- Assets: Investments Guaranteed Investment Contracts - Fidelity Managed Income Portfolio $ - $ - $ - $ - $ - $ - Equities - Diebold, Incorporated Common Shares - - - - - - Mutual funds - Fidelity Mutual Funds - - - - - - Fidelity Retirement Government Money Market - - - - - - Victory Financial Reserves Fund - - - - - - Vanguard Mutual Funds - - 28,959,437 2,071,592 382,289 11,260,947 Vanguard Retirement Savings Trust - - - - - - Loomis Sayles Mutual Funds 139,931 635,952 - - - - Participant Notes Receivable - - - - - - ------------------------------------------------------------------------------------------- Total Investments 139,931 635,952 28,959,437 2,071,592 382,289 11,260,947 Cash - - - - - - ------------------------------------------------------------------------------------------- Total Assets 139,931 635,952 28,959,437 2,071,592 382,289 11,260,947 Accounts Payable - - - - - - ------------------------------------------------------------------------------------------- Net assets available for benefits: $ 139,931 $ 635,952 $ 28,959,437 $ 2,071,592 $ 382,289 $ 11,260,947 ===========================================================================================
Participant Directed -------------------------------------------------------------------------- Vanguard Vanguard US Vanguard Retirement Diebold Company Participant Growth Windsor II Savings Trust Stock Fund Loans Total All Funds ------------------------------------------------------------------------------------------ Assets: Investments Guaranteed Investment Contracts - Fidelity Managed Income Portfolio $ - $ - $ - $ - $ - $ - Equities - Diebold, Incorporated Common Shares - - - 86,528,289 - 86,528,289 Mutual funds - Fidelity Mutual Funds - - - - - - Fidelity Retirement Government Money Market - - - - - - Victory Financial Reserves Fund - - - - - - Vanguard Mutual Funds 34,996,733 8,950,410 - - - 86,621,408 Vanguard Retirement Savings Trust - - 10,518,796 - - 10,518,796 Loomis Sayles Mutual Funds - - - - 775,883 Participant Notes Receivable - - - - 3,211,864 3,211,864 ------------------------------------------------------------------------------------------ Total Investments 34,996,733 8,950,410 10,518,796 86,528,289 3,211,864 187,656,240 Cash - - - - - 4 ------------------------------------------------------------------------------------------ Total Assets 34,996,733 8,950,410 10,518,796 86,528,289 3,211,864 187,656,244 Accounts Payable - - - - - 4 ------------------------------------------------------------------------------------------ Net assets available for benefits: $ 34,996,733 $ 8,950,410 $ 10,518,796 $ 86,528,289 $ 3,211,864 $187,656,240 ==========================================================================================
See accompanying notes to financial statements. -5- 6 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1997
Participant Directed -------------------------------------------------------------------------------------------- Managed Income Company Stock Growth Company Portfolio Fund Fund Overseas Fund Equity Index Fund Balanced 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 Grade Retirement Fund Government Fund Participant Loans Total All 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. -6- 7 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1998
Participant Directed ------------------------------------------------------------- Managed Income Portfolio Growth Company Fund Overseas Fund ------------------------------------------------------------- Additions: Contributions Participant $ 342,710 $ 1,782,708 $ 270,481 Employer 49,251 212,457 34,371 Rollover 1,563 140,603 37,718 ------------------------------------------------------------- 393,524 2,135,768 342,570 Investment income/(loss): Registered investment funds 175,250 259,204 794 Interest and dividends 35,795 - - Net appreciation/ (depreciation) in the fair value of investments - 3,518,118 230,633 ------------------------------------------------------------- 211,045 3,777,322 231,427 ------------------------------------------------------------- Total additions, net 604,569 5,913,090 573,997 Deductions: Withdrawals (179,560) (632,232) (32,728) ------------------------------------------------------------- Excess of additions over deductions 425,009 5,280,858 541,269 Transfers between funds (7,486,220) (30,435,936) (1,925,047) Nets assets available for benefits: Beginning of year 7,061,211 25,155,078 1,383,778 End of year $ - $ - $ - =============================================================
Participant Directed ----------------------------------------------------------------------- Retirement Equity Index Fund Balanced Fund Investment Grade Fund Government Fund ----------------------------------------------------------------------- Additions: Contributions Participant $ 1,300,327 $ 618,804 $ 290,350 $ 113,940 Employer 153,695 78,148 37,845 16,167 Rollover 110,208 55,674 9,229 5,689 ----------------------------------------------------------------------- 1,564,230 752,626 337,424 135,796 Investment income/(loss): Registered investment funds 365,175 181,548 127,843 41,032 Interest and dividends - - 26,369 7,986 Net appreciation/ (depreciation) in the fair value of investments 3,199,601 997,596 49,688 - ----------------------------------------------------------------------- 3,564,776 1,179,144 203,900 49,018 ----------------------------------------------------------------------- Total additions, net 5,129,006 1,931,770 541,324 184,814 Deductions: Withdrawals (401,857) (183,068) (77,746) (67,440) ----------------------------------------------------------------------- Excess of additions over deductions 4,727,149 1,748,702 463,578 117,374 Transfers between funds (24,194,169) (11,604,063) (5,403,934) (1,923,477) Nets assets available for benefits: Beginning of year 19,467,020 9,855,361 4,940,356 1,806,103 End of year $ - $ - $ - $ - =======================================================================
See accompanying notes to financial statements. -7- 8 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1998 (continued)
Participant Directed -------------------------------------------------------------------------------- Loomis Sayles Loomis Sayles Vanguard Bond Fund Small Cap Value Vanguard Index International Vanguard International Fund Retail Class 500 Portfolio Growth Portfolio Primecap Fund -------------------------------------------------------------------------------- Additions: Contributions Participant $ 18,245 $ 18,600 $ 1,557,583 $ 276,648 $ 51,821 Employer 1,878 2,035 170,357 31,499 4,468 Rollover - 257,463 859 132,941 - ------------------------------------------------------------------------------ Total Contributions 20,123 278,098 1,728,799 441,088 56,289 Registered investment funds - - - - - Interest and dividends 9,761 6,311 272,843 41,332 11,581 Net appreciation/(depreciation) in the fair value of investments (1,900) 66,928 2,148,552 20,784 34,911 ------------------------------------------------------------------------------ 7,861 73,239 2,421,395 62,116 46,492 ------------------------------------------------------------------------------ Total additions, net 27,984 351,337 4,150,194 503,204 102,781 Deductions: Withdrawals (68) - (440,161) (87,281) (73) ------------------------------------------------------------------------------ Excess of additions over deductions 27,916 351,337 3,710,033 415,923 102,708 Transfers between funds 112,015 284,615 25,249,404 1,655,669 279,581 Nets assets available for benefits: Beginning of year - - - - - End of year $ 139,931 $ 635,952 $ 28,959,437 $ 2,071,592 $ 382,289 ==============================================================================
Participant Directed ---------------------------------------------------------------------------- Vanguard Diebold Vanguard Total Vanguard US Vanguard Retirement Company Stock Bond Fund Growth Windsor II Savings Trust Fund ---------------------------------------------------------------------------- Additions: Contributions Participant $ 630,385 $ 1,837,096 $ 471,497 $ 485,789 $ 5,495,717 Employer 70,290 212,305 53,387 66,866 8,006,743 Rollover 13,967 425,792 1,041,535 712,011 214,771 ---------------------------------------------------------------------------- Total Contributions 714,642 2,475,193 1,566,419 1,264,666 13,717,231 Registered investment funds - - - - 7,691 Interest and dividends 365,875 2,181,758 828,100 295,691 1,244,617 Net appreciation/(depreciation) in the fair value of investments 98,418 1,822,802 (565,555) (3,246) (29,170,042) ---------------------------------------------------------------------------- 464,293 4,004,560 262,545 292,445 (27,917,734) ---------------------------------------------------------------------------- Total additions, net 1,178,935 6,479,753 1,828,964 1,557,111 (14,200,503) Deductions: Withdrawals (247,203) (791,888) (161,112) (443,023) (2,227,427) ---------------------------------------------------------------------------- Excess of additions over deductions 931,732 5,687,865 1,667,852 1,114,088 (16,427,930) Transfers between funds 10,329,215 29,308,868 7,282,558 9,404,708 (2,470,046) Nets assets available for benefits: Beginning of year - - - - 105,426,265 End of year $ 11,260,947 $ 34,996,733 $ 8,950,410 $ 10,518,796 $ 86,528,289 ============================================================================
Participant Directed -------------------- Participant Loans Total All Funds ------------------------------- Additions: Contributions Participant $ - $ 15,562,701 Employer - 9,201,762 Rollover 11,166 3,171,189 ------------------------------- Total Contributions 11,166 27,935,652 Registered investment funds - 1,158,537 Interest and dividends 254,711 5,582,730 Net appreciation/(depreciation) in the fair value of investments - (17,552,712) ------------------------------- 254,711 (10,811,445) ------------------------------- Total additions, net 265,877 17,124,207 Deductions: Withdrawals (406,786) (6,379,653) ------------------------------- Excess of additions over deductions (140,909) 10,744,554 Transfers between funds 1,536,259 - Nets assets available for benefits: Beginning of year 1,816,514 176,911,686 End of year $ 3,211,864 $ 187,656,240 ===============================
See accompanying notes to financial statements. -8- 9 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1997
Participant Directed --------------------------------------------------------------------------------- Managed Income Growth Company Portfolio Company Stock Fund Fund Overseas Fund Equity Index 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 Rollover - - - - - --------------------------------------------------------------------------------- 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 Nets 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 Grade Retirement Balanced Fund Fund Government Fund Participant Loans Total All Funds ----------------------------------------------------------------------------------- Additions: Contributions Participant $ 1,165,580 $ 629,693 $ 284,672 $ - $ 15,314,182 Employer 137,779 76,512 32,961 - 9,104,849 Rollover - - - - - ----------------------------------------------------------------------------------- 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 - Nets 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. -9- 10 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 (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, 1998 and 1997, 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 1998 and 1997, 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 last three quarters of 1998 and the first quarter of 1997 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 March 31, 1998, 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. -10- 11 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (continued) (c) Participants' Accounts ---------------------- As of June 30, 1998 all assets in the plan were transferred to The Vanguard Fiduciary Trust Company as Trustee for the Plan. 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 Fidelity Mutual Funds, Fidelity Retirement Government Money Market, Victory Financial Reserves Fund, Equities, Guaranteed Investment Contracts, or any combination thereof with the minimum investment in any fund/portfolio of five percent before June 30, 1998. After June 30, 1998 each participant may direct that his or her contributions to the Regular Account be invested in the Vanguard Mutual Funds, Vanguard Retirement Savings Trust, Loomis Sayles Mutual Funds, Equities or any combination thereof with the minimum investment in any fund/portfolio of five percent. For 1998 and 1997, 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 1998 and 1997, 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, 1998 and 1997, 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) 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. -11- 12 DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (continued) (g) Plan Merger ----------- On September 30, 1998 the Griffin Technology 401(k) Plan was merged into the Diebold, Incorporated 401(k) Savings Plan. (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. -12- 13 Schedule 1 ---------- DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN LINE 27 a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 EIN: 34-0183970 Plan Number: 012
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E -------- -------- -------- -------- -------- Description of Investment including Identity of Issue, Borrower, Lessor, Maturity Date, Rate of Interest, or Similar Party Collateral, Par, or Maturity Value Cost Current Value -------------------------------------------------------------------------------------------------------------------- Loomis Sayles Bond Registered Investment Company $ 141,643 $ 139,931 Loomis Sayles Small Cap Value Registered Investment Company 569,473 635,952 Vanguard 500 Index Fund Registered Investment Company 26,697,066 28,959,437 Vanguard International Growth Fund Registered Investment Company 2,021,008 2,071,592 Vanguard PRIMECAP Fund Registered Investment Company 344,140 382,289 Vanguard Total Bond Market Index Registered Investment Company 11,167,172 11,260,947 Vanguard U.S. Growth Registered Investment Company 33,041,986 34,996,733 Vanguard Windsor II Fund Registered Investment Company 9,488,915 8,950,410 Vanguard Retirement Savings Trust Common/ Collective Trust 10,518,796 10,518,796 * Diebold Company Stock Company Stock Fund 57,667,829 86,528,289 * Participant Loans 9.25% - 12% - 3,211,864 ====================================== $ 151,658,028 $ 187,656,240 ======================================
* Party-in-interest NOTE: The cost of participant loans is $0 based upon instructions for the Form 5500 Line 27a. See accompanying independent auditors' report. -13- 14 Schedule 2 ---------- DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN Line 27(d) - Schedule of Reportable (5%) Transactions Year ended December 31, 1998 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 COLUMN F COLUMN G -------- -------- -------- -------- -------- -------- -------- Current Value of Description of Assets Asset on Identity of Party (include interest rate and Historical Cost Transaction Historical Gain Involved maturity in the case of a loan) Purchase Price Selling Price of Asset Date (Loss) - ------------------------------------------------------------------------------------------------------------------------------------ The Vanguard Group Vanguard 500 Index Fund $ 28,775,309 $ -- $ -- $ 28,775,309 $ -- The Vanguard Group Vanguard 500 Index Fund -- 1,968,148 2,078,242 1,968,148 (110,094) The Vanguard Group Vanguard Tlt Bond Mkt Idx 12,110,256 -- -- 12,110,256 -- The Vanguard Group Vanguard Tlt Bond Mkt Idx -- 950,338 943,084 950,338 7,254 The Vanguard Group Vanguard U.S. Growth 35,462,454 -- -- 35,462,454 -- The Vanguard Group Vanguard U.S. Growth -- 2,294,406 2,420,468 2,294,406 (126,061) The Vanguard Group Vanguard Windsor II Fund 10,148,340 -- -- 10,148,340 -- The Vanguard Group Vanguard Windsor II Fund -- 633,794 659,425 633,794 (25,630) The Vanguard Group Vanguard Retire Savings Trst 12,137,019 -- -- 12,137,019 -- The Vanguard Group Vanguard Retire Savings Trst -- 1,618,222 1,618,222 1,618,222 -- N/A Diebold Company Stock 72,201,973 -- -- 72,201,973 -- N/A Diebold Company Stock -- 2,600,733 2,443,098 2,600,733 157,635
See accompanying independent auditors' report. -14- 15 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 29, 1999 By: /s/Gerald F. Morris -------------- ----------------------- Gerald F. Morris Executive Vice President and Chief Financial Officer (Principal Accounting and Financial Officer) -15- 16 DIEBOLD, INCORPORATED FORM 11-K INDEX TO EXHIBITS EXHIBIT NO. PAGE NO. - ----------- -------- 23. Consent of Independent Auditors 17 -16- 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 28, 1999 relating to the statements of net assets available for benefits of the Diebold, Incorporated 401(k) Savings 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, which report appears in the December 31, 1998 annual report on Form 11-K of the Diebold, Incorporated 401(k) Savings Plan. /s/KPMG LLP - ----------- KPMG LLP Cleveland, Ohio June 29, 1999 -17- -----END PRIVACY-ENHANCED MESSAGE-----