<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended November 30, 1998
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
Susan J. Riley
Senior Vice President and Chief
Financial Officer of
The Dial Corporation
DATE: June 9, 1999
<PAGE> 2
THE DIAL CORPORATION
CAPITAL ACCUMULATION PLAN
Financial Statements
Eleven-Month Period Ended November 30, 1998
And the Year Ended December 31, 1997,
Supplemental Schedules for the
Eleven-Month Period Ended November 30, 1998,
and Independent Auditors' Report
<PAGE> 3
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
TABLE OF CONTENTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Page
<S> <C>
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS AS OF NOVEMBER 30, 1998
AND DECEMBER 31,1997 AND FOR THE ELEVEN-MONTH PERIOD
ENDED NOVEMBER 30, 1998 AND THE YEAR ENDED DECEMBER
31,1997:
Net Assets Available for Benefits 2
Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4-12
SUPPLEMENTAL SCHEDULES AS OF NOVEMBER 30, 1998
AND FOR THE ELEVEN-MONTH PERIOD THEN ENDED:
Assets Held for Investment Purposes 13
Reportable Transactions 14
EXHIBIT 23 - INDEPENDENT AUDITORS' CONSENT 15
</TABLE>
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
Plan Administrator and Plan Participants
The Dial Corporation Capital Accumulation Plan
Scottsdale, Arizona
We have audited the accompanying statements of net assets available for benefits
of The Dial Corporation Capital Accumulation Plan (the "Plan") as of November
30, 1998 and December 31, 1997, and the related statements of changes in net
assets available for benefits for the eleven-month period ended November 30,
1998 and the year ended December 31, 1997. 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 audits 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 November 30, 1998
and December 31, 1997, and the changes in net assets available for benefits for
the eleven-month period ended November 30, 1998 and the year ended December 31,
1997 in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules for the
eleven-month period ended November 30, 1998 on pages 13 and 14 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 1998 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 7, 1999
<PAGE> 5
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
NOVEMBER 30, 1998 AND DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS 1998 1997
<S> <C> <C>
INVESTMENTS AT FAIR VALUE:
Shares of registered investment companies:
Vanguard Windsor Fund $24,363,809 $25,067,831
T. Rowe Price Custom Investment Contract Fund 8,871,042 9,090,961
T. Rowe Price Prime Reserve Fund 1,415,456 1,547,185
T. Rowe Price Equity Index Fund 2,724,108 2,580,309
T. Rowe Price Spectrum Growth Fund 3,196,693 2,250,574
Vanguard Bond Index Fund 269,491 296,454
T. Rowe Price Retirement Strategy Fund 1,067,331 745,747
T. Rowe Price Spectrum Income Fund 576,093 407,570
Common stock:
The Dial Corporation Common Stock Fund 28,172,751 21,399,592
FINOVA Group Inc. Common Stock Fund 2,782,911 2,831,795
Viad Corp Common Stock Fund 15,346,239 14,380,844
Participant notes receivable 1,072,921 904,185
----------- -----------
Total investments at fair value 89,858,845 81,503,047
DIVIDENDS RECEIVABLE 61,095 150,616
CONTRIBUTIONS RECEIVABLE -- 279,980
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $89,919,940 $81,933,643
=========== ===========
</TABLE>
See notes to financial statements.
2
<PAGE> 6
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
ELEVEN-MONTH PERIOD ENDED NOVEMBER 30, 1998
AND THE YEAR ENDED DECEMBER 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
ADDITIONS:
Contributions:
Employer $ 1,364,094 $ 1,754,534
Employee pre-tax 3,739,492 4,387,331
Employee after-tax 141,147 131,128
----------- -----------
Total contributions 5,244,733 6,272,993
----------- -----------
Investment income:
Dividends 758,619 4,943,305
Interest 619,334 1,030,000
Net appreciation in fair value of investments 9,477,973 10,845,138
----------- -----------
Total investment income 10,855,926 16,818,443
----------- -----------
Transfer of assets 10,024 --
----------- -----------
Total additions 16,110,683 23,091,436
----------- -----------
DEDUCTIONS:
Benefits paid to participants 8,124,386 8,543,584
Transfer of assets -- 17,320
----------- -----------
Total deductions 8,124,386 8,560,904
----------- -----------
NET INCREASE 7,986,297 14,530,532
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF PERIOD 81,933,643 67,403,111
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF PERIOD $89,919,940 $81,933,643
=========== ===========
</TABLE>
See notes to financial statements.
3
<PAGE> 7
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
ELEVEN-MONTH PERIOD ENDED NOVEMBER 30, 1998
AND THE YEAR ENDED DECEMBER 31, 1997
- -------------------------------------------------------------------------------
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.
The Plan was established July 31, 1996. Employees of The Dial Corporation 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 12 consecutive month period.
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.
Effective January 1, 1998, the Plan year was changed from the twelve-month
period from January 1 through December 31 to the twelve-month period
beginning on December 1 and ending on November 30. The change is effective
for the Plan year commencing as of December 1, 1998.
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.
4
<PAGE> 8
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 and is reinvested. 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 approximately 3.04% to 6.16% for 1998 and 4.77% to 8.41%
for 1997, resulting in a blended rate of return for the fund of 6.07%
and 6.64%, for 1998 and 1997, 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.
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.
5
<PAGE> 9
9) THE DIAL CORPORATION ("DIAL") 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. Payment of Benefits - Benefits are paid to participants upon termination
from the Company, disablement, retirement or death.
d. 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 at various times throughout the year. 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.
e. Vesting - All contributions to the Plan are 100% vested and nonforfeitable
at all times.
6
<PAGE> 10
f. 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.
g. Plan Administration - The Plan is administered by the Retirement Committee
comprised of at least three persons appointed by the Company's Board of
Directors. Expenses incidental to the operation of the Plan may be paid by
the Plan or directly by the Company. For the eleven-month period ended
November 30, 1998 and the year ended December 31, 1997, Plan expenses were
paid directly by the Company.
h. Plan Termination - While it is the Company's intention to continue the
Plan, the Company has the right to terminate the Plan provided all
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.
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. 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.
7
<PAGE> 11
3. NET ASSETS BY FUND
The following tables present the net assets of the Plan by fund as of November
30, 1998 and December 31, 1997.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
T. ROWE
PRICE T. ROWE T. ROWE T. ROWE
CUSTOM PRICE PRICE PRICE
VANGUARD INVESTMENT PRIME EQUITY SPECTRUM
WINDSOR CONTRACT RESERVE INDEX GROWTH
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor Fund $24,363,809
T. Rowe Price Custom Investment
Contract Fund $8,871,042
T. Rowe Price Prime Reserve Fund $1,415,456
T. Rowe Price Equity Index Fund $2,724,108
T. Rowe Price Spectrum Growth Fund $3,196,693
Vanguard Bond Index Fund
T. Rowe Price Retirement Strategy Fund
T. Rowe Price Spectrum Income Fund
Common stock:
The Dial Corporation
FINOVA Group Inc.
Viad Corp
Participant notes receivable
Dividends receivable
----------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $24,363,809 $8,871,042 $1,415,456 $2,724,108 $3,196,693
=========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
T. ROWE T. ROWE THE DIAL
VANGUARD PRICE PRICE CORPORATION FINOVA
BOND RETIREMENT SPECTRUM COMMON GROUP INC.
INDEX STRATEGY INCOME STOCK COMMON
FUND FUND FUND FUND STOCK FUND
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor Fund
T. Rowe Price Custom Investment
Contract Fund
T. Rowe Price Prime Reserve Fund
T. Rowe Price Equity Index Fund
T. Rowe Price Spectrum Growth Fund
Vanguard Bond Index Fund $269,491
T. Rowe Price Retirement Strategy Fund $1,067,331
T. Rowe Price Spectrum Income Fund $576,093
Common stock:
The Dial Corporation $28,172,751
FINOVA Group Inc. $2,782,911
Viad Corp
Participant notes receivable
Dividends receivable 8,432
-------- ---------- -------- ----------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $269,491 $1,067,331 $576,093 $28,172,751 $2,791,343
======== ========== ======== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
VIAD
CORP PARTICIPANT
COMMON NOTES
STOCK FUND RECEIVABLE TOTAL
<S> <C> <C> <C>
ASSETS
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor Fund $24,363,809
T. Rowe Price Custom Investment
Contract Fund 8,871,042
T. Rowe Price Prime Reserve Fund 1,415,456
T. Rowe Price Equity Index Fund 2,724,108
T. Rowe Price Spectrum Growth Fund 3,196,693
Vanguard Bond Index Fund 269,491
T. Rowe Price Retirement Strategy Fund 1,067,331
T. Rowe Price Spectrum Income Fund 576,093
Common stock:
The Dial Corporation 28,172,751
FINOVA Group Inc. 2,782,911
Viad Corp $15,346,239 15,346,239
Participant notes receivable $1,072,921 1,072,921
Dividends receivable 52,663 61,095
----------- ---------- -----------
NET ASSETS AVAILABLE
FOR BENEFITS $15,398,902 $1,072,921 $89,919,940
=========== ========== ===========
</TABLE>
8
<PAGE> 12
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1997
<TABLE>
<CAPTION>
T. ROWE
PRICE T. ROWE T. ROWE T. ROWE
CUSTOM PRICE PRICE PRICE
VANGUARD INVESTMENT PRIME EQUITY SPECTRUM
WINDSOR CONTRACT RESERVE INDEX GROWTH
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
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
T. Rowe Price Retirement Strategy Fund
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
----------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $25,126,575 $9,107,037 $1,554,644 $2,580,309 $2,265,188
=========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
T. ROWE T. ROWE THE DIAL
VANGUARD PRICE PRICE CORPORATION FINOVA
BOND RETIREMENT SPECTRUM COMMON GROUP INC.
INDEX STRATEGY INCOME STOCK COMMON
FUND FUND FUND FUND STOCK FUND
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor Fund
T. Rowe Price Custom Investment
Contract Fund
T. Rowe Price Prime Reserve Fund
T. Rowe Price Equity Index Fund
T. Rowe Price Spectrum Growth Fund
Vanguard Bond Index Fund $296,454
T. Rowe Price Retirement Strategy Fund 745,747
T. Rowe Price Spectrum Income Fund $407,570
Common stock:
The Dial Corporation $21,399,592
FINOVA Group Inc. $2,831,795
Viad Corp
Participant notes receivable
Dividends receivable 82,347 8,017
Contributions receivable 3,567 3,700 175,820
-------- -------- -------- ----------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $296,454 $749,314 $411,270 $21,657,759 $2,839,812
======== ======== ======== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
VIAD
CORP PARTICIPANT
COMMON NOTES
STOCK FUND RECEIVABLE TOTAL
<S> <C> <C> <C>
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 407,570
Common stock:
The Dial Corporation 21,399,592
FINOVA Group Inc. 2,831,795
Viad Corp $14,380,844 14,380,844
Participant notes receivable $904,185 904,185
Dividends receivable 60,252 150,616
Contributions receivable 279,980
----------- -------- -----------
NET ASSETS AVAILABLE
FOR BENEFITS $14,441,096 $904,185 $81,933,643
=========== ======== ===========
</TABLE>
9
<PAGE> 13
4. FUND INFORMATION
Employer contributions, employee pre-tax contributions, employee after-tax
contributions, dividend income, interest income, net appreciation/(depreciation)
in fair value of investments, and benefits paid to participants are as follows
for the eleven-month period ended November 30, 1998 and for the year ended
December 31, 1997:
<TABLE>
<CAPTION>
Employer contributions: 1998 1997
----------- -----------
<S> <C> <C>
The Dial Corporation Common Stock Fund $ 1,364,094 $ 1,754,534
=========== ===========
Employee pre-tax contributions:
T. Rowe Price Custom Investment Contract Fund $ 357,399 $ 518,749
T. Rowe Price Retirement Strategy Fund 120,790 124,529
T. Rowe Price Prime Reserve Fund 161,171 324,353
Vanguard Windsor Fund 1,636,811 1,934,707
T. Rowe Price Spectrum Income Fund 100,217 109,301
T. Rowe Price Spectrum Growth Fund 468,050 520,600
The Dial Corporation Common Stock Fund 895,054 855,092
----------- -----------
Total $ 3,739,492 $ 4,387,331
=========== ===========
Employee after-tax contributions:
T. Rowe Price Custom Investment Contract Fund $ 9,099 $ 13,748
T. Rowe Price Retirement Strategy Fund 4,755 1,629
T. Rowe Price Prime Reserve Fund 1,635 2,369
Vanguard Windsor Fund 67,666 59,012
T. Rowe Price Spectrum Income Fund 5,028 3,386
T. Rowe Price Spectrum Growth Fund 19,788 17,394
The Dial Corporation Common Stock Fund 33,176 33,590
----------- -----------
Total $ 141,147 $ 131,128
=========== ===========
Dividend income:
Vanguard Bond Index Fund $ 16,003 $ 20,661
T. Rowe Price Equity Index Fund 24,038 58,877
Vanguard Windsor Fund 178,913 4,002,265
T. Rowe Price Spectrum Income Fund 30,895 29,467
T. Rowe Price Spectrum Growth Fund 229,854
The Dial Corporation Common Stock Fund 256,805 317,232
FINOVA Group Inc. Common Stock Fund 32,674 30,806
Viad Corp Common Stock Fund 219,291 254,143
----------- -----------
Total $ 758,619 $ 4,943,305
=========== ===========
</TABLE>
10
<PAGE> 14
<TABLE>
<S> <C> <C>
Interest income:
T. Rowe Price Custom Investment Contract Fund $ 476,437 $ 867,180
T. Rowe Price Prime Reserve Fund 74,647 86,014
Participant Notes Receivable 68,250 76,806
----------- -----------
Total $ 619,334 $ 1,030,000
=========== ===========
Net appreciation/(depreciation) in fair value of investments:
Vanguard Bond Index Fund $ 6,460 $ 7,444
T. Rowe Price Retirement Strategy Fund 114,689 106,604
T. Rowe Price Equity Index Fund 493,061 622,110
Vanguard Windsor Fund (420,820) 462,865
T. Rowe Price Spectrum Income Fund 612 18,591
T. Rowe Price Spectrum Growth Fund 190,680 66,357
The Dial Corporation Common Stock Fund 5,883,943 6,204,337
FINOVA Group Inc. Common Stock Fund 185,675 1,039,741
Viad Corp Common Stock Fund 3,023,673 2,317,089
----------- -----------
Total $ 9,477,973 $10,845,138
=========== ===========
Benefits paid to participants:
Vanguard Bond Index Fund $ 26,895 $ 52,642
T. Rowe Price Custom Investment Contract Fund 1,010,812 1,202,196
T. Rowe Price Retirement Strategy Fund 79,928 125,945
T. Rowe Price Prime Reserve Fund 441,645 413,226
T. Rowe Price Equity Index Fund 303,543 217,252
Vanguard Windsor Fund 2,029,624 2,422,127
T. Rowe Price Spectrum Income Fund 66,088 59,642
T. Rowe Price Spectrum Growth Fund 169,964 302,218
The Dial Corporation Common Stock Fund 2,434,551 1,837,129
FINOVA Group Inc. Common Stock Fund 225,535 199,363
Viad Corp Common Stock Fund 1,294,059 1,582,466
Participant Notes Receivable 41,742 129,378
----------- -----------
Total $ 8,124,386 $ 8,543,584
=========== ===========
</TABLE>
5. RELATED PARTY TRANSACTIONS
Plan investments include 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.
11
<PAGE> 15
6. 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.
7. SUBSEQUENT EVENT
On January 29, 1999, total assets in the T. Rowe Price Custom Investment
Contract Fund of $8,840,164 were transferred to the T. Rowe Price Stable Value
Fund. The balance was transferred, as all the contracts in which the fund had
invested had reached maturity and additional contracts had not been entered
into.
12
<PAGE> 16
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
SUPPLEMENTAL SCHEDULE
NOVEMBER 30, 1998
- -------------------------------------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<TABLE>
<CAPTION>
COLUMN B COLUMN C COLUMN D COLUMN E
- ---------------------------------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUER, INCLUDING COLLATERAL, RATE OF
BORROWER, LESSOR OR INTEREST, MATURITY DATE, CURRENT
SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Vanguard Windsor Fund Mutual Fund (1,458,063 shares) $24,471,887 $24,363,809
T. Rowe Price Custom
Investment Contract Fund GIC Fund (8,872,021 shares) 8,872,021 8,871,042
T. Rowe Price Prime
Reserve Fund Mutual Fund (1,416,764 shares) 1,416,764 1,415,456
T. Rowe Price Equity
Index Fund Mutual Fund (85,853 shares) 1,656,473 2,724,108
T. Rowe Price Spectrum
Growth Fund Mutual Fund (186,071 shares) 3,012,166 3,196,693
Vanguard Bond Index Fund Mutual Fund (26,113 shares) 254,364 269,491
T. Rowe Price Retirement
Strategy Fund Mutual Fund (55,274 shares) 872,827 1,067,331
T. Rowe Price Spectrum
Income Fund Mutual Fund (49,323 shares) 564,937 576,093
The Dial Corporation Common Stock (1,073,248 shares) 14,019,478 28,172,751
FINOVA Group Inc. Common Stock (52,694 shares) 784,546 2,782,911
Viad Corp Common Stock (658,284 shares) 6,627,842 15,346,239
Participant Notes Receivable Participant loans
(Interest at 6% to 11.5%,
maturing from 1998 to 2013) 1,072,921 1,072,921
----------- -----------
Total assets held for investment
purposes $63,626,226 $89,858,845
=========== ===========
</TABLE>
13
<PAGE> 17
THE DIAL CORPORATION CAPITAL ACCUMULATION PLAN
SUPPLEMENTAL SCHEDULE
ELEVEN-MONTHS ENDED NOVEMBER 30, 1998
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN G COLUMN H COLUMN I
CURRENT VALUE
IDENTITY OF ASSET ON NET
OF DESCRIPTION TRANSACTION GAIN
PARTY OF PURCHASE SELLING COST OF DATE OR
INVOLVED ASSET PRICE PRICE ASSET (LOSS)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SINGLE TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------------
None
- -----------------------------------------------------------------------------------------------------------------------------------
SERIES OF TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------------
Vanguard Windsor
Fund Mutual Fund $3,412,514 $3,412,514 $3,412,514
- -----------------------------------------------------------------------------------------------------------------------------------
Vanguard Windsor
Fund Mutual Fund $3,701,471 3,634,790 3,701,471 $ 66,681
- -----------------------------------------------------------------------------------------------------------------------------------
The Dial Corporation Common Stock
Fund 4,090,138 4,090,138 4,090,138
- -----------------------------------------------------------------------------------------------------------------------------------
The Dial Corporation Common Stock
Fund 3,200,921 1,739,728 3,200,921 1,461,193
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE: REPORTABLE TRANSACTIONS ARE THOSE TRANSACTIONS WHICH EITHER
SINGULARLY OR IN SERIES OF COMBINED PURCHASES AND SALES DURING THE
YEAR EXCEED 5% OF THE FAIR VALUE OF THE PLAN'S ASSETS AT THE
BEGINNING OF THE YEAR.
14
<PAGE> 18
INDEX TO EXHIBITS
EXHIBIT 23 - INDEPENDENT AUDITORS' CONSENT
<PAGE> 19
Exhibit 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
333-10149 of The Dial Corporation on Form S-8 of our report dated June 7, 1999,
appearing in the Annual Report on Form 11-K of The Dial Corporation Capital
Accumulation Plan for the eleven-month period ended November 30, 1998.
\s\ Deloitte & Touche LLP
Deloitte & Touche LLP
Phoenix, Arizona
June 7, 1999
15
<PAGE> 1
Exhibit 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
333-10149 of The Dial Corporation on Form S-8 of our report dated June 7, 1999,
appearing in the Annual Report on Form 11-K of The Dial Corporation Capital
Accumulation Plan for the eleven-month period ended November 30, 1998.
\s\ Deloitte & Touche LLP
Deloitte & Touche LLP
Phoenix, Arizona
June 7, 1999
15
