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