<PAGE> 1
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 11-K
(X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
OR
( ) TRANSITION REPORT PURSUANT TO 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from .......... to ..........
Commission file number 1-4879
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DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN
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FOR NEWARK HOURLY EMPLOYEES
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(Full title of the plan)
------------------------
Diebold, Incorporated 5995 Mayfair Road P.O. Box 3077 North Canton, Ohio
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44720-8077
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(Name of issuer of the securities held by the plan and the address of its
principal executive office)
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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
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A) The following financial statements and schedules are filed as part
of this annual report:
1) Statements of Net Assets Available for Benefits (with Fund
Information) - December 31, 1997 and 1996
2) Statements of Changes in Net Assets Available for
Benefits (with Fund Information) - Years Ended December
31, 1997 and 1996
3) Notes to Financial Statements - December 31, 1997 and 1996
4) Schedule 1 - Line 27 a - Schedule of Assets Held for
Investment Purposes - December 31, 1997
5) Schedule 2 - Line 27 d - Schedule of Reportable
Transactions - Year Ended December 31, 1997
B) The following exhibit is filed as part of this annual report:
23. Consent of Independent Auditors
All other schedules required by the Department of Labor's Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974 have been omitted because there is no information to report.
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INDEPENDENT AUDITORS' REPORT
The Plan Administrator and Participants
Diebold, Incorporated Retiree Medical Funding Plan for Newark Hourly Employees
We have audited the accompanying statements of net assets available for benefits
of Diebold, Incorporated Retiree Medical Funding Plan for Newark Hourly
Employees as of December 31, 1997 and 1996, and the related statements of
changes in net assets available for benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Diebold,
Incorporated Retiree Medical Funding Plan for Newark Hourly Employees as of
December 31, 1997 and 1996, and the changes in net assets available for benefits
for the year ended December 31, 1997 and 1996 in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The fund information in the
statements of net assets available for benefits and the statements of changes in
net assets available for benefits is presented for purposes of additional
analysis rather than to present the net assets available for benefits and
changes in net assets available for benefits of each fund. The supplemental
schedules and fund information have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/KPMG Peat Marwick LLP
KPMG PEAT MARWICK LLP
Cleveland, Ohio
June 5, 1998
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DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------------------------------------------------------
MANAGED COMPANY GROWTH EQUITY INVESTMENT RETIREMENT TOTAL
INCOME STOCK COMPANY INDEX BALANCED GRADE BOND GOVERNMENT ALL
PORTFOLIO FUND FUND FUND FUND FUND FUND FUNDS
----------- ---------- --------- ----------- ----------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments
Guaranteed Investment Contracts -
Fidelity Managed Income
Portfolio $ 48,915 $ -- $ -- $ -- $ -- $ -- $ -- $ 48,915
Equities -
Diebold, Incorporated
Common Shares -- 470,964 -- -- -- -- -- 470,964
Mutual funds -
Fidelity Mutual Funds -- -- 183,917 105,614 72,272 44,677 -- 406,480
Short-term investments -
Fidelity Retirement
Government Money Market -- -- -- -- -- -- 68,361 68,361
Victory Financial Reserves
Fund 2,156 24,384 10,539 4,154 2,500 1,890 3,349 48,972
----------- ---------- --------- ----------- ----------- ----------- ---------- -------------
Total investments 51,071 495,348 194,456 109,768 74,772 46,567 71,710 1,043,692
Accrued income 250 80 32 11 6 237 320 936
----------- ---------- --------- ----------- ----------- ----------- ---------- -------------
51,321 495,428 194,488 109,779 74,778 46,804 72,030 1,044,628
Accounts payable 244 -- -- -- -- 232 311 787
----------- ---------- --------- ----------- ----------- ----------- ---------- -------------
Net assets available
for plan benefits: $ 51,077 $495,428 $194,488 $ 109,779 $ 74,778 $ 46,572 $ 71,719 $ 1,043,841
======== ======== ======== ========== ========== ========== ======== ============
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 5
DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------------------------
MANAGED COMPANY GROWTH EQUITY INVESTMENT RETIREMENT TOTAL
INCOME STOCK COMPANY INDEX BALANCED GRADE BOND GOVERNMENT ALL
PORTFOLIO FUND FUND FUND FUND FUND FUND FUNDS
--------- --------- --------- ---------- ----------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments
Guaranteed Investment Contracts -
Fidelity Managed Income
Portfolio $ 41,008 $ -- $ -- $ -- $ -- $ -- $ -- $ 41,008
Equities -
Diebold, Incorporated
Common Shares -- 276,462 -- -- -- -- -- 276,462
Mutual funds -
Fidelity Mutual Funds -- -- 127,304 72,479 51,832 36,780 -- 288,395
Short-term investments -
Fidelity Retirement
Government Money Market -- -- -- -- -- -- 53,113 53,113
Victory Financial Reserves
Fund 323 18,425 10,906 5,376 4,063 2,930 4,561 46,584
--------- --------- --------- ---------- ----------- ---------- ---------- ------------
Total investments 41,331 294,887 138,210 77,855 55,895 39,710 57,674 705,562
Accrued income 196 57 33 16 12 194 228 736
--------- --------- --------- ---------- ----------- ---------- ---------- ------------
41,527 294,944 138,243 77,871 55,907 39,904 57,902 706,298
Accounts payable 186 16,767 9,800 4,875 3,600 2,825 4,314 42,367
--------- --------- --------- ---------- ----------- ---------- ---------- ------------
Net assets available
for plan benefits: $ 41,341 $278,177 $128,443 $ 72,996 $ 52,307 $ 37,079 $ 53,588 $ 663,931
======== ======== ======== ========== ========== ========== ======== ===========
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 6
<TABLE>
DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1997
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------------
MANAGED COMPANY GROWTH EQUITY INVESTMENT RETIREMENT TOTAL
INCOME STOCK COMPANY INDEX BALANCED GRADE BOND GOVERNMENT ALL
PORTFOLIO FUND FUND FUND FUND FUND FUND FUNDS
----------- ---------- ---------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions
Participant $ 11,514 $ 84,626 $ 43,134 $ 19,627 $ 13,647 $ 9,767 $ 17,611 $ 199,926
Employer 3,198 24,960 12,858 5,469 4,203 2,931 5,488 59,107
----------- ---------- ---------- ---------- ---------- ----------- --------- ----------
14,712 109,586 55,992 25,096 17,850 12,698 23,099 259,033
Investment income:
Registered Investment
Funds 2,670 330 17,617 2,325 8,518 2,601 3,221 37,282
Dividends -- 4,086 -- -- -- -- -- 4,086
Net appreciation
in the fair value
of investments -- 88,684 8,613 22,899 4,429 956 -- 125,581
----------- ---------- ---------- ---------- ---------- ----------- --------- ----------
2,670 93,100 26,230 25,224 12,947 3,557 3,221 166,949
----------- ---------- ---------- ---------- ---------- ----------- --------- ----------
Total additions 17,382 202,686 82,222 50,320 30,797 16,255 26,320 425,982
Deductions:
Withdrawals (2,923) (22,920) (7,677) (5,865) (2,628) (2,858) (1,201) (46,072)
----------- ---------- ---------- ---------- ---------- ----------- --------- ----------
Excess of additions 14,459 179,766 74,545 44,455 28,169 13,397 25,119 379,910
over deductions
Transfers between funds (4,723) 37,485 (8,500) (7,672) (5,698) (3,904) (6,988) --
Net assets available
for plan benefits:
Beginning of year 41,341 278,177 128,443 72,996 52,307 37,079 53,588 663,931
----------- ---------- ---------- ---------- ---------- ----------- --------- ----------
End of year $ 51,077 $ 495,428 $ 194,488 $ 109,779 $ 74,778 $ 46,572 $ 71,719 $1,043,841
=========== ========== ========== ========== ========== =========== ========= ==========
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 7
<TABLE>
DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1996
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------------
MANAGED COMPANY GROWTH EQUITY INVESTMENT RETIREMENT TOTAL
INCOME STOCK COMPANY INDEX BALANCED GRADE BOND GOVERNMENT ALL
PORTFOLIO FUND FUND FUND FUND FUND FUND FUNDS
----------- ---------- ---------- ---------- ---------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions
Participant $ 13,862 $ 63,899 $ 41,571 $ 21,372 $ 16,849 $ 12,425 $ 19,236 $ 189,214
Employer 4,066 18,338 12,158 6,260 4,935 3,567 5,653 54,977
----------- ---------- ---------- ---------- ---------- ----------- --------- ---------
17,928 82,237 53,729 27,632 21,784 15,992 24,889 244,191
Investment income/(loss):
Registered Investment
Funds 1,842 440 4,877 1,574 1,932 1,806 2,172 14,643
Dividends -- 2,285 -- -- -- -- -- 2,285
Net appreciation/
(depreciation)
in the fair value
of investments -- 94,997 9,003 9,239 2,309 (640) -- 114,908
----------- ---------- ---------- ---------- ---------- ----------- --------- ---------
1,842 97,722 13,880 10,813 4,241 1,166 2,172 131,836
----------- ---------- ---------- ---------- ---------- ----------- --------- ---------
Total additions, net 19,770 179,959 67,609 38,445 26,025 17,158 27,061 376,027
Deductions:
Withdrawals (345) (2,349) (1,488) (693) (1,169) -- (2,002) (8,046)
----------- ---------- ---------- ---------- ---------- ----------- --------- ---------
Excess of additions 19,425 177,610 66,121 37,752 24,856 17,158 25,059 367,981
over deductions
Transfers between funds (2,626) 7,912 1,136 2,151 (3,180) (863) (4,530) --
Net assets available
for plan benefits:
Beginning of year 24,542 92,655 61,186 33,093 30,631 20,784 33,059 295,950
----------- ---------- ---------- ---------- ---------- ----------- --------- ---------
End of year $ 41,341 $ 278,177 $ 128,443 $ 72,996 $ 52,307 $ 37,079 $ 53,588 $ 663,931
=========== ========== ========== ========== =========== =========== ========= =========
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 8
DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
(1) Description of the Plan
-----------------------
The following brief description of the Diebold, Incorporated Retiree
Medical Funding Plan for Newark Hourly Employees (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 August 16,
1994. The Plan covers all hourly employees of the Employer at the
Newark, Ohio facility who are represented by Local 710 of the
International Union of Electrical Workers, who have completed ninety
days of employment and have attained the age of twenty-one. The Plan
is subject to certain provisions of the Employee Retirement Income
Security Act of 1974 (ERISA).
(b) Contributions
-------------
For the years ended December 31, 1997 and 1996, the Plan allowed each
participant to contribute from one to three percent (in one percent
increments) of pre-tax compensation, but not in excess of the maximum
amount permitted by the Internal Revenue Code of 1986.
In 1997 and 1996, the Employer contributed as a Basic Matching
Contribution an amount equal to thirty percent of participant's
pre-tax contributions during each payroll period up to three percent
of the participant's compensation in such payroll period.
(c) Participants' Accounts
----------------------
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 and all Employer contributions are
deposited into the Retiree Medical Funding Account. Each participant
may direct that his or her contributions to the Regular Account as
well as all Employer contributions to the Retiree Medical Funding
Account be invested in the Managed Income Portfolio, the Company Stock
Fund, the Growth Company Fund, the Equity Index Portfolio, the
Balanced Fund, the Investment Grade Bond Fund, the Retirement
Government Money Market Fund, or any combination thereof with the
minimum investment in any fund/portfolio of ten percent.
(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 may elect to receive the
portion of his or her lump sum distribution payable from the Company
Stock Fund in cash or Employer's stock.
-8-
<PAGE> 9
DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
(continued)
(f) Withdrawals
-----------
A financial hardship provision is available, enabling a
participant to withdraw an amount to cover an immediate and heavy
financial need.
(g) 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.
(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.
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 net assets
available for benefits and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported changes in net assets available for benefits during the
reporting period. Actual results could differ from those
estimates.
(3) Federal Income Taxes
--------------------
On September 25, 1996, the Plan received a determination letter from
the Internal Revenue Service that the Plan qualified under the
provisions of Section 401(a) and 401(k) of the Internal Revenue Code
and that the trust was exempt from federal income taxes under section
501(c). The Plan administrator believes that the Plan continues to
qualify under the provisions of Section 401(a) and 401(k) and that the
trust is exempt from federal income taxes.
(4) Plan Termination
----------------
Although it has not expressed any intent to do so, the Employer
reserves the right at any time, by action of its Board of Directors, to
terminate the Plan or discontinue contributions thereto.
(5) Subsequent Events
------------------
Subsequent to the Plan year-end, the value of the Company Stock Fund
declined significantly due to a drop in the price of Diebold,
Incorporated shares. Shares of Diebold, Incorporated stock are traded
on the New York Stock Exchange. From January 1, 1998 through June 15,
1998, the price range of shares varied from a low of $23.63 to a high
of $55.31.
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<PAGE> 10
Schedule 1
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DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
LINE 27 a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
EIN: 34-0183970
Plan Number: 014
<TABLE>
<CAPTION>
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
- -------- -------- -------- -------- --------
<S> <C> <C>
Description of Investment
Identity of Issue, Including Maturity Date, Rate
Borrower, Lessor, of Interest, Collateral, Par, or Current
or Similar Party Maturity Value Cost Value
---------------- -------------- ---- -----
Fidelity Investments Guaranteed Investment Contracts $ 48,915 $ 48,915
* Diebold, Incorporated 9,303 Shares Common Stock 277,135 470,964
Fidelity Investments Growth Company Fund 161,007 183,917
Fidelity Investments Equity Index Portfolio 71,450 105,614
Fidelity Investments Balanced Fund 64,776 72,272
Fidelity Investments Investment Grade Bond Fund 43,559 44,677
Fidelity Investments Retirement Government Money Market 68,361 68,361
* Key Trust Victory Financial Reserves Fund 48,972 48,972
---------- ----------
$784,175 $1,043,692
======== ==========
- ----------------------
* Party-in-interest
</TABLE>
See accompanying independent auditor's report.
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<PAGE> 11
Schedule 2
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DIEBOLD, INCORPORATED RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
Line 27(d) - Schedule of Reportable (5%) Transactions
Year ended December 31, 1997
Ein: 34-0183970
Plan Number: 014
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Series transactions, when aggregated, involving an amount
- ----------------------------------------------------------
in excess of 5 percent of the current value of Plan assets:
- -----------------------------------------------------------
<TABLE>
<CAPTION>
Column A Column B Column C Column D Column E Column F Column G Column H Column I
- --------- -------- -------- -------- -------- -------- -------- -------- --------
Current Value
Dollar Total Dollar Total Expense of Asset on
Identity of Value of Value of Lease Incurred with Cost of Transaction Net Gain
Party Involved Description of Assets Purchases Sales Rental Transaction Asset Date or Loss
- -------------- --------------------- --------- ----- ------ ----------- ----- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Key Trust Victory Financial
Company of Reserves Fund;
Ohio, N.A. 407 purchases; 143 sales $ 282,396 $ 280,009 $ -- $ -- $ 562,405 $ 562,405 $ --
Diebold, Inc. Common Stock;
15 purchases; 1 sale 114,856 9,306 -- 269 120,538 124,162 3,624
Fidelity Growth Mutual Fund ;
Company Fund 18 purchases; 3 sales 54,780 6,779 -- -- 61,559 61,559 --
</TABLE>
See accompanying independent auditors' report.
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<PAGE> 12
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 RETIREE MEDICAL FUNDING PLAN FOR NEWARK HOURLY EMPLOYEES
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(Name of Plan)
--------------
Date: June 24, 1998 By:/s/Gerald F. Morris
------------------------------------------ ----------------------
Gerald F. Morris
Executive Vice President and
Chief Financial Officer
(Principal Accounting and
Financial Officer)
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<PAGE> 13
DIEBOLD, INCORPORATED
FORM 11-K
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT NO. PAGE NO.
----------- --------
<S> <C>
23. Consent of Independent Auditors 14
</TABLE>
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<PAGE> 1
EXHIBIT 23
Consent of Independent Auditors
-------------------------------
The Board of Directors
Diebold, Incorporated
We consent to incorporation by reference in the Registration Statement
(No.33-54675) on Form S-8 of Diebold, Incorporated of our report dated June 5,
1998, relating to the statements of net assets available for benefits of the
Diebold, Incorporated Retiree Medical Funding Plan for Newark Hourly Employees
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 1996,
which report appears in the December 31, 1997 annual report on Form 11-K of the
Diebold, Incorporated Retiree Medical Funding Plan for Newark Hourly Employees.
/s/KPMG Peat Marwick LLP
KPMG PEAT MARWICK LLP
Cleveland, Ohio
June 24, 1998
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