SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
Commission file number: 1-11793
A. Full title of the Plan and address of the Plan, if different from that of
the issuer named below:
The Dial Corporation Capital Accumulation Plan
B. Name of issuer of the securities held pursuant to the Plan and the
address of its principal executive office:
THE DIAL CORPORATION
15501 NORTH DIAL BOULEVARD
SCOTTSDALE, ARIZONA 85260-1619
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
The Dial Corporation Capital Accumulation Plan has duly caused this annual
report to be signed on its behalf by the undersigned thereunto duly authorized.
THE DIAL CORPORATION
CAPITAL ACCUMULATION PLAN
By \s\ Susan J. Riley
Susan J. Riley
Senior Vice President Chief Financial Officer
DATE: June 24, 1998
THE DIAL CORPORATION
CAPITAL ACCUMULATION PLAN
Financial Statements for the Year Ended December 31, 1997, and for the Period
July 31, 1996 (Date of Inception) through December 31, 1996,
Supplemental Schedules for the Period Ended
December 31, 1997, and Independent Auditors' Report
<PAGE>
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
TABLE OF CONTENTS
- -------------------
Page
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS AS OF AND FOR THE YEAR
ENDED DECEMBER 31, 1997 AND PERIOD JULY 31, 1996
(Date of Inception) TO DECEMBER 31, 1996:
Net Assets Available for Benefits 2
Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4-13
SUPPLEMENTAL SCHEDULES AS OF AND FOR THE
YEAR ENDED DECEMBER 31, 1997:
Assets Held for Investment Purposes 14
Reportable Transactions 15
EXHIBIT 24 - INDEPENDENT AUDITORS' CONSENT 16
INDEPENDENT AUDITORS' REPORT
Plan Administrator and Plan Participants
The Dial Corporation Capital Accumulation Plan
Phoenix, Arizona
We have audited the accompanying statements of net assets available for benefits
of The Dial Corporation Capital Accumulation Plan (the "Plan") as of December
31, 1997 and 1996, and the related statements of changes in net assets available
for benefits for the year ended December 31, 1997 and for the period July 31,
1996 (date of inception) to December 31, 1996. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 1997
and 1996, and the changes in net assets available for benefits for the year
ended December 31, 1997 and for the period July 31, 1996 (date of inception) to
December 31,1996 in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules for the year
ended December 31, 1997 on pages 14 and 15 are presented for the purpose of
additional analysis and are not a required part of the basic financial
statements, but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These schedules are the responsibility
of the Plan's management. Such schedules have been subjected to the auditing
procedures applied in our audit of the basic 1997 financial statements and, in
our opinion, are fairly stated, in all material respects when considered in
relation to the basic financial statements taken as a whole.
\s\ Deloitte & Touch LLP
Deloitte & Touche LLP
Phoenix, Arizona
June 12, 1998
<PAGE>
<TABLE>
<CAPTION>
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997 AND 1996
<S> <C> <C>
ASSETS . . . . . . . . . . . . . . . . . . . . . . 1997 1996
INVESTMENTS AT FAIR VALUE:
Shares of registered investment companies:
Vanguard Windsor Fund . . . . . . . . . . . . $25,067,831 $19,939,224
T. Rowe Price Custom Investment Contract Fund 9,090,961 9,733,707
T. Rowe Price Prime Reserve Fund. . . . . . . 1,547,185 1,832,141
T. Rowe Price Equity Index Fund . . . . . . . 2,580,309 2,158,424
T. Rowe Price Spectrum Growth Fund. . . . . . 2,250,574 1,495,598
Vanguard Bond Index Fund. . . . . . . . . . . 296,454 338,877
T. Rowe Price Retirement Strategy Fund. . . . 745,747 492,314
T. Rowe Price Spectrum Income Fund. . . . . . 407,570 416,433
Common stock:
The Dial Corporation Common Stock Fund. . . . 21,399,592 13,539,322
FINOVA Group Inc. Common Stock Fund . . . . . 2,831,795 2,018,109
Viad Corp Common Stock Fund . . . . . . . . . 14,380,844 14,133,071
Participant notes receivable . . . . . . . . . . 904,185 1,118,207
----------- -----------
Total investments at fair value . . . 81,503,047 67,215,427
DIVIDENDS RECEIVABLE . . . . . . . . . . . . . . . 150,616 153,041
CONTRIBUTIONS RECEIVABLE . . . . . . . . . . . . . 279,980 4,776
CASH . . . . . . . . . . . . . . . . . . . . . . . - 29,867
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS. . . . . . . . . $81,933,643 $67,403,111
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997 AND PERIOD JULY 31, 1996 (DATE OF INCEPTION)
TO DECEMBER 31, 1996
- -----------------------
<CAPTION>
<S> <C> <C>
1997 1996
ADDITIONS:
Contributions:
Employer. . . . . . . . . . . . . . . . . . . $ 1,754,534 $ 689,659
Employee pre-tax. . . . . . . . . . . . . . . 4,387,331 1,699,997
Employee after-tax. . . . . . . . . . . . . . 131,128 26,320
----------- -----------
Total contributions. . . . . . . . . . . 6,272,993 2,415,976
----------- -----------
Investment income:
Dividends . . . . . . . . . . . . . . . . . . 4,943,305 1,997,875
Interest. . . . . . . . . . . . . . . . . . . 1,030,000 177,679
Net appreciation in fair value of investments 10,845,138 3,726,277
----------- -----------
Total investment income . . . . . . . . . 16,818,443 5,901,831
----------- -----------
Transfer of assets. . . . . . . . . . . . . . . - 62,346,401
----------- -----------
Total additions . . . . . . . . . . . . . 23,091,436 70,664,208
----------- -----------
DEDUCTION:
Benefits paid to participants . . . . . . . . 8,543,584 3,261,097
Transfer of Assets. . . . . . . . . . . . . . 17,320 -
----------- -----------
Total deductions. . . . . . . . . . . . . 8,560,904 3,261,097
----------- -----------
NET INCREASE. . . . . . . . . . . . . . . . . . . 14,530,532 67,403,111
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF PERIOD. . . . . . . . . . . . . . . 67,403,111 -
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF PERIOD. . . . . . . . . . . . . . . . . . $81,933,643 $67,403,111
=========== ===========
See notes to financial statements.
</TABLE>
<PAGE>
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1997 AND PERIOD JULY 31, 1996 (DATE OF INCEPTION)
TO DECEMBER 31, 1996
- -----------------------
1. DESCRIPTION OF THE PLAN
The following brief description of The Dial Corporation Capital
Accumulation Plan (the "Plan") is provided for general information purposes
only. Participants should refer to the Plan agreement for more complete
information.
On July 25, 1996, the Board of Directors of The Dial Corp (the "Former
Parent") declared a dividend (the "Distribution" or the "spin-off") to effect
the spin-off of its Consumer Products Business. The dividend was paid on August
15, 1996, to shareholders of record as of August 5, 1996. Each Dial Corp
shareholder received a dividend of one share of common stock of The Dial
Corporation ("Dial"), which, after the Distribution, owns and operates the
Consumer Products Business previously conducted by the Former Parent.
Concurrently, with the Distribution, the name of the Former Parent was changed
to Viad Corp.
The Plan was established July 31, 1996, as a result of the spin-off.
Employees of Dial and certain of its subsidiaries (the "Company") who are not
covered by a collective bargaining agreement are eligible to participate in the
Plan after completing at least 1,000 hours of service in a twelve consecutive
month period for which they are paid a regular fixed compensation. Employees are
able to contribute to the Plan by reducing their wages on a pre-tax basis, and
make after-tax contributions, subject to certain limitations. The Company may
also contribute a matching amount, subject to certain limitations.
The Plan is subject to various regulations, particularly those under
Internal Revenue Code Section 401(k) and the Employee Retirement Income Security
Act of 1974 ("ERISA").
a. Investment Programs - Contributions to the Plan are invested by the
Plan's trustee, T. Rowe Price, at the designation of the participants. The Plan
has offered participants the following funds in which to invest pre-tax,
after-tax and rollover deposits.
1) VANGUARD WINDSOR FUND - This fund invests in the common stock of selected
companies. The fair value of the fund is dependent upon the market value of the
stocks. Any dividends received are reinvested.
<PAGE>
2) T. ROWE PRICE CUSTOM INVESTMENT CONTRACT FUND - This fund holds
investments in a diversified portfolio of Guaranteed Investment Contracts
("GIC") issued by insurance companies and other financial institutions.
Contributions to this fund and proceeds from its GIC maturities are invested
entirely in T. Rowe Price Stable Value Fund, which invests in a more diversified
GIC portfolio. Income is earned based upon a blended interest rate determined by
the various investments. The fair value of the fund approximates the aggregate
contract values of the GIC portfolio and represents contributions made, plus
interest at blended rates, less withdrawals by participants. Crediting interest
rates for the fund's underlying GICs ranged from 4.77% to 8.41% for 1997 and
4.75% to 8.41% for 1996, allowing for a blended rate of return for the fund of
6.64% and 6.41%, for 1997 and 1996, respectively.
3) T. ROWE PRICE PRIME RESERVE FUND - This fund invests in short-term money
market instruments such as certificates of deposit, treasury bills and corporate
notes which earn income based on short-term interest rates. The fair value of
the fund is the cost basis of the investments.
4) T. ROWE PRICE EQUITY INDEX FUND - This fund invests in the common stock of
other companies. The fair value of the fund is dependent on the market value of
the stocks. The dividends received are reinvested. This fund is closed to
additional contributions.
5) T. ROWE PRICE SPECTRUM GROWTH FUND - This fund invests in a diversified
portfolio of T. Rowe Price mutual funds which consist primarily of investments
in the common stock of other companies. The fair value of the fund is dependent
upon the fair value of the underlying securities. Any dividends received are
reinvested.
6) VANGUARD BOND INDEX FUND - This fund invests in United States government
and corporate bonds and mortgage-backed securities, which earn income based on
interest rates. The fair value of the fund is dependent on the market value of
the investments. This fund is closed to additional contributions.
7) T. ROWE PRICE RETIREMENT STRATEGY FUND - This fund invests in a
diversified portfolio of T. Rowe Price mutual funds which consist of investments
in both fixed income securities and the common stock of United States and
foreign companies. The fair value of the fund is dependent upon the fair value
of the underlying securities. Any dividends received are reinvested.
<PAGE>
8) T. ROWE PRICE SPECTRUM INCOME FUND - This fund invests in a diversified
portfolio of T. Rowe Price mutual funds which consist primarily of investments
in fixed income securities. The fair value of the fund is dependent upon the
fair value of the underlying securities. Any dividends received are reinvested.
9) THE DIAL CORPORATION COMMON STOCK FUND - This fund invests in the common
stock of Dial, and any dividends paid on the stock are reinvested in the fund.
The fair value of this fund is dependent upon the fluctuations in the market
value of Dial stock.
10) FINOVA GROUP INC. ("FINOVA") COMMON STOCK FUND - This fund invests in
the common stock of FINOVA. Due to this fund being closed to additional
contributions, any dividends paid on the stock are reinvested according to the
participant's contribution mix. The fair value of this fund is dependent upon
the fluctuation in the market value of FINOVA stock.
11) VIAD CORP ("VIAD") COMMON STOCK FUND - This fund invests in the common
stock of Viad. Due to this fund being closed to additional contributions, any
dividends paid on the stock are reinvested according to the participant's
contribution mix. The fair value of this fund is dependent upon the fluctuation
in the market value of Viad stock.
b. Contributions - Voluntary wage reductions may be elected by the employee.
These pre-tax reductions are contributed to the Plan and may range from 1% to
12% of compensation. Company matching contributions are based on employee
pre-tax wage reductions up to 100% of the first 3% of wage reduction. Each
employee may elect an after-tax contribution of between 1% and 10% of
compensation. No Company matching contributions are made based on after-tax
contributions. All contributions are limited to the applicable amounts as
prescribed by the Internal Revenue Code.
c. Transfer of Assets - As a result of the spin-off of the Company,
participant accounts in the Dial Companies Capital Accumulation Plan, the Former
Parent's 401(k) Plan, were transferred into the Plan September 30, 1996.
d. Payment of Benefits - Benefits are paid to participants upon termination
from the Company, disablement, retirement or death.
<PAGE>
e. Participant Loans and Hardship Withdrawals - The Plan allows participants
to borrow against their 401(k) account balances in an amount not to exceed the
lesser of 50% of their vested balance or $50,000. The applicable interest rate
is determined by the committee responsible for administering the Plan and shall
be equal to the prime rate in effect the first business day of the preceding
month for the subsequent quarter. Loans shall be repaid in equal installments
over a period of up to five years, except for loans for purchasing a home which
can be repaid over a maximum of 15 years. Withdrawals of employee wage
reduction contributions, after-tax contributions and rollover deposits may be
made by the participant in the event of a qualified financial hardship, subject
to certain tax penalties. Such withdrawals will only be considered necessary to
satisfy a financial hardship if all nontaxable loans available under the Plan
have already been obtained.
f. Vesting - All contributions to the Plan are 100% vested and
nonforfeitable at all times.
g. Participant Accounts - For each participant, various accounts are
maintained to record wage reduction contributions, Company matching
contributions, after-tax contributions, participant rollover deposits
transferred to the Plan, dividend and interest income and the net
appreciation/depreciation in the fair value of Plan investments. The benefit to
which a participant is entitled is the total benefit which can be provided from
the combined amount of these participant accounts less participant loans.
h. Plan Administration - The Plan is administered by the Retirement
Committee comprised of at least three persons appointed by the Board of
Directors. Expenses incident to the operation of the Plan may be paid by the
Plan or directly by the Company. For the periods ended December 31, 1997 and
1996, Plan expenses were paid directly by the Company.
i. Plan Termination - While it is the Company's intention to continue the
Plan, the Company has the right to terminate the Plan provided that any employer
contributions due at the termination date have been paid.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies are as follows:
a. Basis of Accounting - The financial statements of the Plan are prepared
under the accrual method of accounting.
<PAGE>
b. Investment Valuation and Income Recognition - The Plan's investments are
stated at fair value. Shares of registered investment companies are valued at
quoted market prices which represent the net asset value of shares held by the
Plan at year-end. Common stock is valued at its quoted market price. Purchases
and sales of securities are recorded on a trade-date basis. Interest income is
recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
c. Payment of Benefits - Benefits are recorded when paid.
d. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures at the date of the financial statements and the
reported amounts of additions and deductions during the reporting period. Actual
results could differ from those estimates.
3. INVESTMENT IN T. ROWE PRICE CUSTOM INVESTMENT CONTRACT FUND
At December 31, 1996, the Plan's investment in the T. Rowe Price Custom
Investment Contract Fund included $1,672,947, which represented its portion of
the contract value of Guaranteed Insurance Contracts issued by an insurance
company whose assets were seized in August of 1994 by insurance regulators for
rehabilitation. During the rehabilitation period, this portion of the Plan's
investment was not accessible for distributions to participants or transfers to
other funds. Distribution of the assets to the participants occurred on April
25, 1997 and May 30, 1997. Total payout consisted of 100% of the participants'
contributions plus 20% interest.
4. NET ASSETS
The following table presents the net assets of the Plan by fund as of December
31, 1997 and 1996.
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1997
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
T. ROWE
PRICE T. ROWE T. ROWE T. ROWE T. ROWE T. ROWE
CUSTOM PRICE PRICE PRICE VANGUARD PRICE
VANGUARD INVESTMENT PRIME EQUITY SPECTRUM BOND RETIREMENT
WINDSOR CONTRACT RESERVE INDEX GROWTH INDEX STRATEGY
FUND FUND FUND FUND FUND FUND FUND
ASSETS
Investments at fair value:
Shares of registered
Investment companies:
Vanguard Windsor Fund. . . . . . . . . $25,067,831
T. Rowe Price Custom Investment
Contract Fund. . . . . . . . . . . . $ 9,090,961
T. Rowe Price Prime Reserve Fund . . . $ 1,547,185
T. Rowe Price Equity Index Fund. . . . $ 2,580,309
T. Rowe Price Spectrum Growth Fund . . $2,250,574
Vanguard Bond Index Fund . . . . . . . $296,454
T. Rowe Price Retirement Strategy Fund $745,747
T. Rowe Price Spectrum Income Fund
Common Stock
The Dial Corporation
FINOVA Group Inc.
Viad Corp
Participant Notes Receivable
Dividends Receivable
Contributions Receivable 58,744 16,076 7,459 14,614 3,567
----------- ----------- ------------ ---------- ---------- -------- --------
NET ASSETS AVAILABLE
FOR BENEFITS $25,126,575 $ 9,107,037 $1,554,644 $2,580,309 $2,265,188 $296,454 $749,314
=========== =========== ========== ========== ========== ======== ========
<S> <C> <C> <C> <C> <C> <C>
T. ROWE THE DIAL
PRICE CORPORATION FINOVA VIAD
SPECTRUM COMMON GROUP, INC. CORP PARTICIPANT
INCOME STOCK COMMON COMMON NOTES
FUND FUND STOCK FUND STOCK FUND RECEIVABLE TOTAL
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor Fund $25,067,831
T. Rowe Price Custom Investment
Contract Fund 9,090,961
T. Rowe Price Prime Reserve Fund 1,547,185
T. Rowe Price Equity Index Fund 2,580,309
T. Rowe Price Spectrum Growth Fund 2,250,574
Vanguard Bond Index Fund 296,454
T. Rowe Retirement Strategy Fund 745,747
T. Rowe Price Spectrum Income Fund . . $407,570 407,570
Common Stock:
The Dial Corporation . . . . . . . . . $21,399,592 21,399,592
FINOVA Group Inc.. . . . . . . . . . . $2,831,795 2,831,795
Viad Corp. . . . . . . . . . . . . . . $14,380,844 14,380,844
Participant notes receivable . . . . . . $904,185 904,185
Dividends receivable . . . . . . . . . . . 82,347 8,017 60,252 150,616
Contributions receivable . . . . . . . . . 3,700 175,820 279,980
-------- ----------- ---------- ----------- -------- -----------
NET ASSETS AVAILABLE $411,270 $21,657,759 $2,839,812 $14,441,096 $904,185 $81,933,643
FOR BENEFITS . . . . . . . . . . . . . . ======== =========== ========== =========== ======== ===========
</TABLE>
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1996
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
T. ROWE
PRICE T. ROWE T. ROWE T. ROWE T. ROWE
CUSTOM PRICE PRICE PRICE VANGUARD PRICE
VANGUARD INVESTMENT PRIME EQUITY SPECTRUM BOND RETIREMENT
WINDSOR CONTRACT RESERVE INDEX GROWTH INDEX STRATEGY
FUND FUND FUND FUND FUND FUND FUND
ASSETS
Investments at fair value:
Shares of registered
Investment companies:
Vanguard Windsor Fund. . . . . . . . . $19,939,224
T. Rowe Price Custom Investment
Contract Fund. . . . . . . . . . . . $9,733,707
T. Rowe Price Prime Reserve Fund . . . $1,832,141
T. Rowe Price Equity Index Fund. . . . $2,158,424
T. Rowe Price Spectrum Growth Fund . . $1,495,598
Vanguard Bond Index Fund . . . . . . . $338,877
T. Rowe Price Retirement Strategy Fund $492,314
T. Rowe Price Spectrum Income Fund . .
Common Stock:
The Dial Corporation . . . . . . . . .
FINOVA Group Inc.. . . . . . . . . . .
Viad Corp. . . . . . . . . . . . . . .
Participant notes receivable . . . . . .
Dividends receivable . . . . . . . . . . .
Contributions receivable . . . . . . . . . 811 796 189 265 117
Cash . . . . . . . . . . . . . . . . . . .
----------- ---------- ---------- ---------- ---------- -------- --------
NET ASSETS AVAILABLE
FOR BENEFITS . . . . . . . . . . . . . . $19,940,035 $9,734,503 $1,832,330 $2,158,424 $1,495,863 $338,877 $492,431
=========== =========== ========== ========== ========== ======== ========
<S> <C> <C> <C> <C> <C> <C> <C>
T. ROWE THE DIAL
PRICE CORPORATION FINOVA VIAD
SPECTRUM COMMON GROUP INC. CORP PARTICIPANT
INCOME STOCK COMMON COMMON NOTES
FUND FUND STOCK FUND STOCK FUND RECEIVABLE OTHER TOTAL
ASSETS
Investments at fair value:
Shares of registered
Investment companies:
Vanguard Windsor Fund $19,939,224
T. Rowe Price Custom Investment
Contract Fund 9,733,707
T. Rowe Price Prime Reserve Fund 1,832,141
T. Rowe Price Equity Index Fund 2,158,424
T. Rowe Price Spectrum Growth Fund 1,495,598
Vanguard Bond Index Fund 338,877
T. Rowe Price Retirement Strategy Fund 492,314
T. Rowe Price Spectrum Income Fund $416,433 416,433
Common Stock:
The Dial Corporation $13,539,322 13,539,322
FINOVA Group Inc. $2,018,109 2,018,109
Viad Corp $14,133,071 14,133,071
Participant notes receivable $1,118,207 1,118,207
Dividends receivable 74,699 7,709 70,633 153,041
Contributions receivable . . . . . . . . . 109 2,489 4,776
Cash $29,867 29,867
-------- ----------- ---------- ----------- ---------- ------- -----------
NET ASSETS AVAILABLE
FOR BENEFITS . . . . . . . . . . . . . . $416,542 $13,616,510 $2,025,818 $14,203,704 $1,118,207 $29,867 $67,403,111
======== =========== ========== =========== ========== ======= ===========
</TABLE>
5. FUND INFORMATION
Employer contributions, employee pre-tax contributions, employee after-tax
contributions, dividend income, interest income, net appreciation (depreciation)
in fair value of investments, transfer of assets - additions, and benefits paid
to participants are as follows for the year ended December 31, 1997 and the
period July 31, 1996 (date of inception) through December 31, 1996:
<TABLE>
<CAPTION>
<S> <C> <C>
Employer contributions: . . . . . . . . . . . . 1997 1996
----------- ------------
The Dial Corporation Common Stock Fund . . . . $ 1,754,534 $ 689,659
=========== ============
Employee pre-tax contributions:
T. Rowe Price Custom Investment Contract Fund. $ 518,749 $ 227,345
T. Rowe Price Retirement Strategy Fund . . . . 124,529 43,781
T. Rowe Price Prime Reserve Fund . . . . . . . 324,353 115,528
Vanguard Windsor Fund. . . . . . . . . . . . . 1,934,707 675,811
T. Rowe Price Spectrum Income Fund . . . . . . 109,301 49,024
T. Rowe Price Spectrum Growth Fund . . . . . . 520,600 224,406
The Dial Corporation Common Stock Fund . . . . 855,092 364,102
----------- ------------
Total . . . . . . . . . . . . . . . . . . . $ 4,387,331 $ 1,699,997
=========== ============
Employee after-tax contributions:
T. Rowe Price Custom Investment Contract Fund. $ 13,748 $ 209
T. Rowe Price Retirement Strategy Fund . . . . 1,629 299
T. Rowe Price Prime Reserve Fund . . . . . . . 2,369 705
Vanguard Windsor Fund. . . . . . . . . . . . . 59,012 8,597
T. Rowe Price Spectrum Income Fund . . . . . . 3,386 353
T. Rowe Price Spectrum Growth Fund . . . . . . 17,394 6,491
The Dial Corporation Common Stock Fund . . . . 33,590 9,666
----------- ------------
Total . . . . . . . . . . . . . . . . . . . $ 131,128 $ 26,320
=========== ============
Dividend income:
Vanguard Bond Index Fund . . . . . . . . . . . $ 20,661 $ 5,977
T. Rowe Price Equity Index Fund. . . . . . . . 58,877 32,463
Vanguard Windsor Fund. . . . . . . . . . . . . 4,002,265 1,685,090
T. Rowe Price Spectrum Income Fund . . . . . . 29,467 9,287
T. Rowe Price Spectrum Growth Fund . . . . . . 229,854 104,893
The Dial Corporation Common Stock Fund . . . . 317,232 78,937
FINOVA Group Inc. Common Stock Fund. . . . . . 30,806 8,005
Viad Corp Common Stock Fund. . . . . . . . . . 254,143 73,223
----------- ------------
Total . . . . . . . . . . . . . . . . . . . $ 4,943,305 $ 1,997,875
=========== ============
Interest income:
T. Rowe Price Custom Investment Contract Fund $ 867,180 $ 120,555
T. Rowe Price Prime Reserve Fund. . . . . . . 86,014 23,544
Participant Notes Receivable. . . . . . . . . 76,806 33,580
----------- ------------
Total . . . . . . . . . . . . . . . . . . . $ 1,030,000 $ 177,679
=========== ============
Net appreciation (depreciation) in fair value
of investments:
Vanguard Bond Index Fund . . . . . . . . . . . $ 7,444 $ 5,549
T. Rowe Price Retirement Strategy Fund . . . . 106,604 24,250
T. Rowe Price Equity Index Fund. . . . . . . . 622,110 142,310
Vanguard Windsor Fund. . . . . . . . . . . . . 462,865 357,826
T. Rowe Price Spectrum Income Fund . . . . . . 18,591 (1,442)
T. Rowe Price Spectrum Growth Fund . . . . . . 66,357 (25,433)
The Dial Corporation Common Stock Fund . . . . 6,204,337 831,380
FINOVA Group Inc. Common Stock Fund. . . . . . 1,039,741 138,925
Viad Corp Common Stock Fund. . . . . . . . . . 2,317,089 2,252,912
----------- ------------
Total . . . . . . . . . . . . . . . . . . . $10,845,138 $ 3,726,277
=========== ============
Transfer of assets - additions:
Vanguard Bond Index Fund . . . . . . . . . . . $ 366,327
T. Rowe Price Custom Investment Contract Fund. 9,772,718
T. Rowe Price Retirement Strategy Fund . . . . 403,576
T. Rowe Price Prime Reserve Fund . . . . . . . 2,032,518
T. Rowe Price Equity Index Fund. . . . . . . . 2,122,996
Vanguard Windsor Fund. . . . . . . . . . . . . 17,805,318
T. Rowe Price Spectrum Income Fund . . . . . . 192,049
T. Rowe Price Spectrum Growth Fund . . . . . . 1,137,920
The Dial Corporation Common Stock Fund . . . . 12,492,228
FINOVA Group Inc. Common Stock Fund. . . . . . 1,990,563
Viad Corp Common Stock Fund. . . . . . . . . . 12,831,436
Participant Notes Receivable . . . . . . . . . - 1,198,752
----------- ------------
Total . . . . . . . . . . . . . . . . . . . $ - $62,346,401
=========== ============
<PAGE>
Benefits paid to participants:
Vanguard Bond Index Fund . . . . . . . . . . . $ 52,642 $ 6,613
T. Rowe Price Custom Investment Contract Fund. 1,202,196 393,067
T. Rowe Price Retirement Strategy Fund . . . . 125,945 2,070
T. Rowe Price Prime Reserve Fund . . . . . . . 413,226 242,583
T. Rowe Price Equity Index Fund. . . . . . . . 217,252 108,552
Vanguard Windsor Fund. . . . . . . . . . . . . 2,422,127 809,091
T. Rowe Price Spectrum Income Fund . . . . . . 59,642 6,384
T. Rowe Price Spectrum Growth Fund . . . . . . 302,218 61,226
The Dial Corporation Common Stock Fund . . . . 1,837,129 737,945
FINOVA Group Inc. Common Stock Fund. . . . . . 199,363 111,640
Viad Corp Common Stock Fund. . . . . . . . . . 1,582,466 760,492
Participant Notes Receivable . . . . . . . . . 129,378 21,434
----------- ------------
Total . . . . . . . . . . . . . . . . . . . $ 8,543,584 $ 3,261,097
=========== ============
</TABLE>
6. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by T. Rowe Price. T.
Rowe Price is the trustee as defined by the Plan and, therefore, these
transactions qualify as party-in-interest.
7. FEDERAL INCOME TAX STATUS
The Plan obtained its determination letter on December 3, 1997, in which the
Internal Revenue Service stated that the Plan, as then designed, was in
compliance with the applicable requirements of the Internal Revenue Code. The
Plan has been amended since receiving the determination letter. However, the
Plan administrator and the Plan's tax counsel believe that the Plan is currently
designed and being operated in compliance with the applicable requirements of
the Internal Revenue code. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
<TABLE>
SUPPLEMENTAL SCHEDULE
YEAR ENDED DECEMBER 31, 1997
- --------------------------------
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<CAPTION>
<S> <C> <C> <C>
COLUMN B. . . . . . . . . COLUMN C COLUMN D COLUMN E
- -------------------------------- ---------------------------------- ----------- -----------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, . . . . . INCLUDING COLLATERAL, RATE OF
BORROWER, LESSOR OR . . . . . . INTEREST, MATURITY DATE, CURRENT
SIMILAR PARTY . . . . . . . PAR OR MATURITY VALUE COST VALUE
- -------------------------------- ---------------------------------- ----------- -----------
Vanguard Windsor Fund. . . . . . Mutual Fund (1,476,679 shares) $24,694,163 $25,067,831
T. Rowe Price Custom
Investment Contract Fund . . . GIC Fund (9,093,995 shares) 9,093,995 9,090,961
T. Rowe Price Prime
Reserve Fund . . . . . . . . . Mutual Fund (1,550,622 shares) 1,550,622 1,547,185
T. Rowe Price Equity
Index Fund. . . . . . . . . . Mutual Fund (97,898 shares) 1,879,991 2,580,309
T. Rowe Price Spectrum
Growth Fund . . . . . . . . . Mutual Fund (141,279 shares) 2,246,464 2,250,574
Vanguard Bond Index Fund . . . . Mutual Fund (29,381 shares) 285,407 296,454
T. Rowe Price Retirement
Strategy Fund . . . . . . . . Mutual Fund (44,075 shares) 631,191 745,747
T. Rowe Price Spectrum
Income Fund . . . . . . . . . Mutual Fund (34,955 shares) 396,127 407,570
The Dial Corporation . . . . . . Common Stock (1,028,209 shares) 11,669,068 21,399,592
FINOVA Group, Inc. . . . . . . . Common Stock (56,992 shares) 847,798 2,831,795
Viad Corp. . . . . . . . . . . . Common Stock (744,639 shares) 7,514,431 14,380,844
Participant Notes Receivable . . Participant loans
(Interest at 6% to 11.5%,
maturing from 1998 to 2011) 904,185 904,185
----------- -----------
Total . . . . . . . . . . . . Total assets held for investment
purposes . . . . . . . . . . $61,713,442 $81,503,047
=========== ===========
</TABLE>
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
<TABLE>
SUPPLEMENTAL SCHEDULE
YEAR ENDED DECEMBER 31, 1997
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
COLUMN A . . . . . . . . . . . . . . . . . COLUMN B COLUMN C COLUMN D COLUMN G COLUMN H COLUMN I
IDENTITY . . . . . . . . . . . . . . . . DESCRIPTION PURCHASE SELLING COST OF CURRENT
OF . . . . . . . . . . . . . . . . . OF PRICE PRICE ASSET VALUE OF NET
PARTY . . . . . . . . . . . . . . . . . ASSET ASSET ON GAIN
INVOLVED. . . . . . . . . . . . . . . . . TRANSACTION OR
DATE (LOSS)
SINGLE TRANSACTIONS
Vanguard Windsor Fund. . . . . . . . . . . . . Mutual Fund $ 3,756,738 $3,756,738 $3,756,738
SERIES OF TRANSACTIONS
Vanguard Windsor Fund. . . . . . . . . . . . . Mutual Fund 7,810,717 7,810,717 7,810,717
Vanguard Windsor Fund. . . . . . . . . . . . . Mutual Fund $3,167,231 2,780,500 3,167,231 $386,731
T. Rowe Price Custom
Investment Contract
Fund . . . . . . . . . . . . . . . . . . . . GIC Fund 1,808,683 1,808,683 1,808,683
T. Rowe Price Custom
Investment Contract
Fund . . . . . . . . . . . . . . . . . . . . GIC Fund 2,467,295 2,467,295 2,467,295
The Dial Corporation . . . . . . . . . . . . . Common Stock
Fund 3,815,622 3,815,622 3,815,622
The Dial Corporation . . . . . . . . . . . . . Common Stock
Fund 2,159,660 1,431,009 2,159,660 728,651
</TABLE>
NOTE: REPORTABLE TRANSACTIONS ARE THOSE TRANSACTIONS WHICH EITHER SINGULARLY
OR IN SERIES OF COMBINED PURCHASES AND SALES DURING THE YEAR EXCEEDED 5% OF THE
FAIR VALUE OF THE PLAN'S ASSETS AT THE END OF THE PERIOD.
