<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, 1998
OR
( ) TRANSITION REPORT PURSUANT TO 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from .......... to ..........
Commission file number 1-4879
-------
DIEBOLD, INCORPORATED 401(K) SAVINGS PLAN
- --------------------------------------------------------------------------------
(Full title of the plan)
Diebold, Incorporated 5995 Mayfair Road PO Box 3077
North Canton, Ohio 44720-8077
- --------------------------------------------------------------------------------
(Name of issuer of the securities held by the plan and the address
of its principal executive office)
<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, 1998 and 1997
2) Statements of Changes in Net Assets Available for Benefits (with
Fund Information) - Years Ended December 31, 1998 and 1997
3) Notes to Financial Statements - December 31, 1998 and 1997
4) Schedule 1 - Line 27 a - Schedule of Assets Held for Investment
Purposes - December 31, 1998
5) Schedule 2 - Line 27 d - Schedule of Reportable Transactions -
Year Ended December 31, 1998
B) The following exhibit is filed as part of this annual report:
23. Consent of Independent Auditors
All other schedules required by the Department of Labor's Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974 have been omitted because there is no information to report.
-2-
<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, 1998 and 1997,
and the related statements of changes in net assets available for benefits for
the years then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Diebold,
Incorporated 401(k) Savings Plan as of December 31, 1998 and 1997, and the
changes in net assets available for benefits for the years then ended in
conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The fund information in the
statements of net assets available for benefits and the statements of changes in
net assets available for benefits is presented for purposes of additional
analysis rather than to present the net assets available for benefits and
changes in net assets available for benefits of each fund. The supplemental
schedules and fund information have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/KPMG LLP
KPMG LLP
Cleveland, Ohio
June 28, 1999
-3-
<PAGE> 4
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------------------------
Managed Income
Portfolio Growth Company Fund Overseas Fund Equity Index Fund Balanced Fund
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments
Guaranteed Investment Contracts -
Fidelity Managed Income
Portfolio $ - $ - $ - $ - $ -
Equities -
Diebold, Incorporated Common
Shares - - - - -
Mutual funds -
Fidelity Mutual Funds - - - - -
Fidelity Retirement
Government Money Market - - - - -
Victory Financial Reserves
Fund - - - - -
Vanguard Mutual Funds - - - - -
Vanguard Retirement Savings
Trust - - - - -
Loomis Sayles Mutual Funds - - - - -
Participant Notes Receivable - - - - -
---------------------------------------------------------------------------------------------
Total Investments - - - - -
Cash - - - - -
---------------------------------------------------------------------------------------------
Total Assets - - - - -
Accounts Payable - - - - -
---------------------------------------------------------------------------------------------
Net assets available for benefits: $ - $ - $ - $ - $ -
=============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------
Retirement
Investment Grade Fund Government Fund
---------------------------------------
<S> <C> <C>
Assets:
Investments
Guaranteed Investment Contracts -
Fidelity Managed Income
Portfolio $ - $ -
Equities -
Diebold, Incorporated Common
Shares - -
Mutual funds -
Fidelity Mutual Funds - -
Fidelity Retirement
Government Money Market - -
Victory Financial Reserves
Fund - -
Vanguard Mutual Funds - -
Vanguard Retirement Savings
Trust - -
Loomis Sayles Mutual Funds - -
Participant Notes Receivable - -
--------------------------------------
Total Investments - -
Cash 4 -
--------------------------------------
Total Assets 4 -
Accounts Payable 4 -
--------------------------------------
Net assets available for benefits: $ - $ -
======================================
</TABLE>
See accompanying notes to financial statements.
-4-
<PAGE> 5
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1998
(continued)
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------------------------------------------
Loomis Sayles
Loomis Sayles Small Cap Vanguard
Bond Fund Value Fund Vanguard Index International Vanguard Vanguard Total
International Retail Class 500 Portfolio Growth Portfolio Primecap Fund Bond Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments
Guaranteed Investment Contracts -
Fidelity Managed Income
Portfolio $ - $ - $ - $ - $ - $ -
Equities -
Diebold, Incorporated Common
Shares - - - - - -
Mutual funds -
Fidelity Mutual Funds - - - - - -
Fidelity Retirement
Government Money Market - - - - - -
Victory Financial Reserves
Fund - - - - - -
Vanguard Mutual Funds - - 28,959,437 2,071,592 382,289 11,260,947
Vanguard Retirement Savings
Trust - - - - - -
Loomis Sayles Mutual Funds 139,931 635,952 - - - -
Participant Notes Receivable - - - - - -
-------------------------------------------------------------------------------------------
Total Investments 139,931 635,952 28,959,437 2,071,592 382,289 11,260,947
Cash - - - - - -
-------------------------------------------------------------------------------------------
Total Assets 139,931 635,952 28,959,437 2,071,592 382,289 11,260,947
Accounts Payable - - - - - -
-------------------------------------------------------------------------------------------
Net assets available for benefits: $ 139,931 $ 635,952 $ 28,959,437 $ 2,071,592 $ 382,289 $ 11,260,947
===========================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------
Vanguard
Vanguard US Vanguard Retirement Diebold Company Participant
Growth Windsor II Savings Trust Stock Fund Loans Total All Funds
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments
Guaranteed Investment Contracts -
Fidelity Managed Income
Portfolio $ - $ - $ - $ - $ - $ -
Equities -
Diebold, Incorporated Common
Shares - - - 86,528,289 - 86,528,289
Mutual funds -
Fidelity Mutual Funds - - - - - -
Fidelity Retirement
Government Money Market - - - - - -
Victory Financial Reserves
Fund - - - - - -
Vanguard Mutual Funds 34,996,733 8,950,410 - - - 86,621,408
Vanguard Retirement Savings
Trust - - 10,518,796 - - 10,518,796
Loomis Sayles Mutual Funds - - - - 775,883
Participant Notes Receivable - - - - 3,211,864 3,211,864
------------------------------------------------------------------------------------------
Total Investments 34,996,733 8,950,410 10,518,796 86,528,289 3,211,864 187,656,240
Cash - - - - - 4
------------------------------------------------------------------------------------------
Total Assets 34,996,733 8,950,410 10,518,796 86,528,289 3,211,864 187,656,244
Accounts Payable - - - - - 4
------------------------------------------------------------------------------------------
Net assets available for benefits: $ 34,996,733 $ 8,950,410 $ 10,518,796 $ 86,528,289 $ 3,211,864 $187,656,240
==========================================================================================
</TABLE>
See accompanying notes to financial statements.
-5-
<PAGE> 6
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------------------------
Managed Income Company Stock Growth Company
Portfolio Fund Fund Overseas Fund Equity Index Fund Balanced 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
===========================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------
Investment Grade Retirement
Fund Government Fund Participant Loans Total All 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.
-6-
<PAGE> 7
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH
FUND INFORMATION) DECEMBER 31, 1998
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------------
Managed Income Portfolio Growth Company Fund Overseas Fund
-------------------------------------------------------------
<S> <C> <C> <C>
Additions:
Contributions
Participant $ 342,710 $ 1,782,708 $ 270,481
Employer 49,251 212,457 34,371
Rollover 1,563 140,603 37,718
-------------------------------------------------------------
393,524 2,135,768 342,570
Investment income/(loss):
Registered investment funds 175,250 259,204 794
Interest and dividends 35,795 - -
Net appreciation/ (depreciation) in the fair value
of investments - 3,518,118 230,633
-------------------------------------------------------------
211,045 3,777,322 231,427
-------------------------------------------------------------
Total additions, net 604,569 5,913,090 573,997
Deductions:
Withdrawals (179,560) (632,232) (32,728)
-------------------------------------------------------------
Excess of additions over deductions 425,009 5,280,858 541,269
Transfers between funds (7,486,220) (30,435,936) (1,925,047)
Nets assets available for benefits:
Beginning of year 7,061,211 25,155,078 1,383,778
End of year $ - $ - $ -
=============================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------
Retirement
Equity Index Fund Balanced Fund Investment Grade Fund Government Fund
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions:
Contributions
Participant $ 1,300,327 $ 618,804 $ 290,350 $ 113,940
Employer 153,695 78,148 37,845 16,167
Rollover 110,208 55,674 9,229 5,689
-----------------------------------------------------------------------
1,564,230 752,626 337,424 135,796
Investment income/(loss):
Registered investment funds 365,175 181,548 127,843 41,032
Interest and dividends - - 26,369 7,986
Net appreciation/ (depreciation) in the fair value
of investments 3,199,601 997,596 49,688 -
-----------------------------------------------------------------------
3,564,776 1,179,144 203,900 49,018
-----------------------------------------------------------------------
Total additions, net 5,129,006 1,931,770 541,324 184,814
Deductions:
Withdrawals (401,857) (183,068) (77,746) (67,440)
-----------------------------------------------------------------------
Excess of additions over deductions 4,727,149 1,748,702 463,578 117,374
Transfers between funds (24,194,169) (11,604,063) (5,403,934) (1,923,477)
Nets assets available for benefits:
Beginning of year 19,467,020 9,855,361 4,940,356 1,806,103
End of year $ - $ - $ - $ -
=======================================================================
</TABLE>
See accompanying notes to financial statements.
-7-
<PAGE> 8
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION) DECEMBER 31, 1998
(continued)
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------------
Loomis Sayles Loomis Sayles Vanguard
Bond Fund Small Cap Value Vanguard Index International Vanguard
International Fund Retail Class 500 Portfolio Growth Portfolio Primecap Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions
Participant $ 18,245 $ 18,600 $ 1,557,583 $ 276,648 $ 51,821
Employer 1,878 2,035 170,357 31,499 4,468
Rollover - 257,463 859 132,941 -
------------------------------------------------------------------------------
Total Contributions 20,123 278,098 1,728,799 441,088 56,289
Registered investment funds - - - - -
Interest and dividends 9,761 6,311 272,843 41,332 11,581
Net appreciation/(depreciation) in the fair
value of investments (1,900) 66,928 2,148,552 20,784 34,911
------------------------------------------------------------------------------
7,861 73,239 2,421,395 62,116 46,492
------------------------------------------------------------------------------
Total additions, net 27,984 351,337 4,150,194 503,204 102,781
Deductions:
Withdrawals (68) - (440,161) (87,281) (73)
------------------------------------------------------------------------------
Excess of additions over deductions 27,916 351,337 3,710,033 415,923 102,708
Transfers between funds 112,015 284,615 25,249,404 1,655,669 279,581
Nets assets available for benefits:
Beginning of year - - - - -
End of year $ 139,931 $ 635,952 $ 28,959,437 $ 2,071,592 $ 382,289
==============================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------------------------------
Vanguard Diebold
Vanguard Total Vanguard US Vanguard Retirement Company Stock
Bond Fund Growth Windsor II Savings Trust Fund
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions
Participant $ 630,385 $ 1,837,096 $ 471,497 $ 485,789 $ 5,495,717
Employer 70,290 212,305 53,387 66,866 8,006,743
Rollover 13,967 425,792 1,041,535 712,011 214,771
----------------------------------------------------------------------------
Total Contributions 714,642 2,475,193 1,566,419 1,264,666 13,717,231
Registered investment funds - - - - 7,691
Interest and dividends 365,875 2,181,758 828,100 295,691 1,244,617
Net appreciation/(depreciation) in the fair
value of investments 98,418 1,822,802 (565,555) (3,246) (29,170,042)
----------------------------------------------------------------------------
464,293 4,004,560 262,545 292,445 (27,917,734)
----------------------------------------------------------------------------
Total additions, net 1,178,935 6,479,753 1,828,964 1,557,111 (14,200,503)
Deductions:
Withdrawals (247,203) (791,888) (161,112) (443,023) (2,227,427)
----------------------------------------------------------------------------
Excess of additions over deductions 931,732 5,687,865 1,667,852 1,114,088 (16,427,930)
Transfers between funds 10,329,215 29,308,868 7,282,558 9,404,708 (2,470,046)
Nets assets available for benefits:
Beginning of year - - - - 105,426,265
End of year $ 11,260,947 $ 34,996,733 $ 8,950,410 $ 10,518,796 $ 86,528,289
============================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
--------------------
Participant
Loans Total All Funds
-------------------------------
<S> <C> <C>
Additions:
Contributions
Participant $ - $ 15,562,701
Employer - 9,201,762
Rollover 11,166 3,171,189
-------------------------------
Total Contributions 11,166 27,935,652
Registered investment funds - 1,158,537
Interest and dividends 254,711 5,582,730
Net appreciation/(depreciation) in the fair
value of investments - (17,552,712)
-------------------------------
254,711 (10,811,445)
-------------------------------
Total additions, net 265,877 17,124,207
Deductions:
Withdrawals (406,786) (6,379,653)
-------------------------------
Excess of additions over deductions (140,909) 10,744,554
Transfers between funds 1,536,259 -
Nets assets available for benefits:
Beginning of year 1,816,514 176,911,686
End of year $ 3,211,864 $ 187,656,240
===============================
</TABLE>
See accompanying notes to financial statements.
-8-
<PAGE> 9
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND
INFORMATION) DECEMBER 31, 1997
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------------
Managed Income Growth Company
Portfolio Company Stock Fund Fund Overseas Fund Equity Index 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
Rollover - - - - -
---------------------------------------------------------------------------------
896,805 14,276,704 3,851,031 476,669 2,590,625
Investment income/(loss):
Registered Investment Funds 397,741 19,580 2,382,448 66,348 400,006
Dividends - 977,211 - - -
Interest - - - - -
Net appreciation/ (depreciation) in the fair
value of investments - 17,731,073 1,298,271 (16,340) 3,873,537
---------------------------------------------------------------------------------
397,741 18,727,864 3,680,719 50,008 4,273,543
---------------------------------------------------------------------------------
Total additions, net 1,294,546 33,004,568 7,531,750 526,677 6,864,168
Deductions:
Withdrawals (354,355) (2,191,465) (660,165) (26,659) (392,320)
---------------------------------------------------------------------------------
Excess of additions over deductions 940,191 30,813,103 6,871,585 500,018 6,471,848
Transfers between funds (376,342) 143,037 (1,211,649) 441,474 966,361
Nets assets available for benefits:
Beginning of year 6,497,362 74,470,125 19,495,142 442,286 12,028,811
End of year $ 7,061,211 $ 105,426,265 $ 25,155,078 $ 1,383,778 $ 19,467,020
=================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------
Investment Grade Retirement
Balanced Fund Fund Government Fund Participant Loans Total All 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
Rollover - - - - -
-----------------------------------------------------------------------------------
1,303,359 706,205 317,633 - 24,419,031
Investment income/(loss):
Registered Investment Funds 1,144,427 283,108 87,905 - 4,781,563
Dividends - - - - 977,211
Interest - - - 234,479 234,479
Net appreciation/ (depreciation) in the fair
value of investments 577,427 98,530 - - 23,562,498
-----------------------------------------------------------------------------------
1,721,854 381,638 87,905 234,479 29,555,751
-----------------------------------------------------------------------------------
Total additions, net 3,025,213 1,087,843 405,538 234,479 53,974,782
Deductions:
Withdrawals (287,081) (122,637) (127,414) (246,129) (4,408,225)
-----------------------------------------------------------------------------------
Excess of additions over deductions 2,738,132 965,206 278,124 (11,650) 49,566,557
Transfers between funds (302,457) (401,910) (28,413) 769,899 -
Nets assets available for benefits:
Beginning of year 7,419,686 4,377,060 1,556,392 1,058,265 127,345,129
End of year $ 9,855,361 $ 4,940,356 $ 1,806,103 $ 1,816,514 $ 176,911,686
===================================================================================
</TABLE>
See accompanying notes to financial statements.
-9-
<PAGE> 10
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
(1) Description of the Plan
-----------------------
The following brief description of the Diebold, Incorporated 401(k) Savings
Plan (the "Plan") provides only general information. Participants should
refer to the Plan document for a more complete description of the Plan's
provisions.
(a) General
-------
The Board of Directors of Diebold, Incorporated (the "Employer")
established this defined contribution plan effective as of April 1,
1990. The Plan covers all non-bargaining unit employees of the
Employer and affiliates who have completed ninety days of employment.
The Plan is subject to certain provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
(b) Contributions
-------------
For the years ended December 31, 1998 and 1997, the Plan allowed each
participant to contribute from one to ten percent (in one percent
increments) of pre-tax compensation, but not in excess of the maximum
amount permitted by the Internal Revenue Code of 1986.
In 1998 and 1997, the Employer contributed as a Basic Matching
Contribution an amount equal to sixty cents for each dollar of a
participant's pre-tax contributions during each payroll period up to
three percent of the participant's compensation in such payroll period
and thirty cents for each dollar of a participant's pre-tax
contributions on the next three percent of the participant's
compensation in such payroll period.
At the end of any Plan Year, the Employer, at its discretion, may
determine that an Additional Matching Contribution be made for the
next succeeding Plan year. The amount of any Additional Matching
Contribution shall be determined solely by action of the Board of
Directors. An Additional Matching Contribution was made in the last
three quarters of 1998 and the first quarter of 1997 such that the
total matching contribution (including the Basic Matching
Contribution) was eighty cents for each dollar of a participant's
pre-tax contributions during each payroll period up to four percent of
the participant's compensation in such payroll period and forty cents
for each dollar of a participant's pre-tax contributions on the next
four percent of the participant's compensation in such payroll period.
For the period of April 1, 1997 through March 31, 1998, an Additional
Matching Contribution was made such that the total matching
contribution (including the Basic Matching Contribution) was one
dollar for each dollar of a participant's pre-tax contributions during
each payroll period up to four percent of the participant's
compensation in such payroll period and forty cents for each dollar of
a participant's pre-tax contributions on the next four percent of the
participant's compensation in such payroll period.
-10-
<PAGE> 11
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(continued)
(c) Participants' Accounts
----------------------
As of June 30, 1998 all assets in the plan were transferred to The
Vanguard Fiduciary Trust Company as Trustee for the Plan. As of
January 1, 1992, the Employer, as the plan administrator for the Plan,
established two separate accounts for each participant, a Regular
Account and a Retiree Medical Funding Account. All participant
contributions are deposited into the Regular Account. Each participant
may direct that his or her contributions to the Regular Account be
invested in the Fidelity Mutual Funds, Fidelity Retirement Government
Money Market, Victory Financial Reserves Fund, Equities, Guaranteed
Investment Contracts, or any combination thereof with the minimum
investment in any fund/portfolio of five percent before June 30, 1998.
After June 30, 1998 each participant may direct that his or her
contributions to the Regular Account be invested in the Vanguard
Mutual Funds, Vanguard Retirement Savings Trust, Loomis Sayles Mutual
Funds, Equities or any combination thereof with the minimum investment
in any fund/portfolio of five percent.
For 1998 and 1997, the Employer's Basic Matching Contribution was
divided between the Regular Account and the Retiree Medical Funding
Account. The portion of the Employer's Basic Matching Contribution
which was equal to thirty cents for each dollar contributed by a
participant up to three percent of the participant's compensation in
such payroll period was deposited in the Retiree Medical Funding
Account. These Employer contributions were invested in the above named
funds and/or portfolios according to the participant's direction. In
1998 and 1997, any additional Matching Contribution was deposited in
the Regular Account and was invested in the Company Stock Fund.
(d) Vesting
-------
A participant's pre-tax contributions and earnings and the Employer's
pre-tax contributions and earnings are immediately vested and
nonforfeitable.
(e) Distribution of Benefits
------------------------
Upon termination of service with the Employer or affiliate, a
participant shall receive his or her total account balance in a lump
sum payment if such total account balance does not exceed $3,500.
Otherwise, the participant may elect to receive his or her total
account balance in a lump sum payment upon termination, defer receipt
until retirement date, or make a direct rollover to a qualified plan.
A participant entitled to a distribution during the years ended
December 31, 1998 and 1997, received cash for his or her lump sum
distribution, except for funds in the Company Stock Fund for which an
election of cash or the Employer's Common Shares was made.
(f) Participant Notes Receivable
----------------------------
Effective April 1, 1995, the Plan was amended and the Loan Fund was
established to administer the activities of participant loans. Loan
transactions are treated as a transfer to (from) the investment fund
from (to) the Loan Fund. Under the terms of the Plan, active
participants of the Plan may borrow against their account balances.
The minimum amount of any loan is $1,000 and the maximum is $50,000 or
50% of a participant's total vested balance (in $100 increments),
whichever is less. Loan payments are made through equal payroll
deductions over the loan period of one to five years. All loans must
be repaid in full year increments. Interest charged is determined by
the Savings Plan Committee based on the prime interest rate plus one
percent as of the loan effective date.
-11-
<PAGE> 12
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(continued)
(g) Plan Merger
-----------
On September 30, 1998 the Griffin Technology 401(k) Plan was merged
into the Diebold, Incorporated 401(k) Savings Plan.
(h) Expenses
--------
All costs and expenses incident to the administration of the Plan and
the management of the trust fund are paid by the Plan administrator
except for loan processing and administration fees associated with the
Loan Fund which are borne by the individual loan participants.
(2) Summary of Significant Accounting Policies
------------------------------------------
(a) Basis of Presentation
---------------------
The accompanying financial statements have been prepared on an accrual
basis in accordance with generally accepted accounting principles.
(b) Investments
-----------
The Plan's investments are stated at fair value as of the last
business day of the Plan year, except for investments in the Managed
Income Portfolio. This fund is represented by purchases of units in
the Fidelity Managed Income Portfolio, which invests primarily in
guaranteed investment contracts. The fund is fully benefit-responsive,
and accordingly, investments in this fund are valued at the underlying
contract value. Shares of registered investment companies are valued
at quoted market prices which represent the net asset value of shares
held by the Plan at year-end. The Company stock is valued at its
quoted market price. Participant notes receivable are valued at cost
which approximates fair value. All purchases and sales transactions
are recorded on a trade date basis.
(c) Use of Estimates
----------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of net assets
available for benefits and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of changes in net assets available for plan benefits
during the reporting period. Actual results could differ from those
estimates.
(3) Federal Income Taxes
--------------------
On November 19, 1992, the Plan received a determination letter from the
Internal Revenue Service that the Plan qualified under the provisions of
Section 401(a) and 401(k) of the Internal Revenue Code and that the trust
was exempt from federal income taxes under Section 501(c). The plan
administrator believes that the Plan continues to qualify under the
provisions of Section 401(a) and 401(k) and that the trust is exempt from
federal income taxes.
(4) Plan Termination
----------------
Although it has not expressed any intent to do so, the Employer reserves
the right at any time, by action of its Board of Directors, to terminate
the Plan or discontinue contributions thereto.
-12-
<PAGE> 13
Schedule 1
----------
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
LINE 27 a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
EIN: 34-0183970
Plan Number: 012
<TABLE>
<CAPTION>
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C>
Description of Investment including
Identity of Issue, Borrower, Lessor, Maturity Date, Rate of Interest,
or Similar Party Collateral, Par, or Maturity Value Cost Current Value
--------------------------------------------------------------------------------------------------------------------
Loomis Sayles Bond Registered Investment Company $ 141,643 $ 139,931
Loomis Sayles Small Cap Value Registered Investment Company 569,473 635,952
Vanguard 500 Index Fund Registered Investment Company 26,697,066 28,959,437
Vanguard International Growth Fund Registered Investment Company 2,021,008 2,071,592
Vanguard PRIMECAP Fund Registered Investment Company 344,140 382,289
Vanguard Total Bond Market Index Registered Investment Company 11,167,172 11,260,947
Vanguard U.S. Growth Registered Investment Company 33,041,986 34,996,733
Vanguard Windsor II Fund Registered Investment Company 9,488,915 8,950,410
Vanguard Retirement Savings Trust Common/ Collective Trust 10,518,796 10,518,796
* Diebold Company Stock Company Stock Fund 57,667,829 86,528,289
* Participant Loans 9.25% - 12% - 3,211,864
======================================
$ 151,658,028 $ 187,656,240
======================================
</TABLE>
* Party-in-interest
NOTE: The cost of participant loans is $0 based upon instructions for the Form
5500 Line 27a. See accompanying independent auditors' report.
-13-
<PAGE> 14
Schedule 2
----------
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
Line 27(d) - Schedule of Reportable (5%) Transactions
Year ended December 31, 1998
Ein: 34-0183970
Plan Number: 012
Series transactions, when aggregated, involving an amount in excess of 5 percent
- --------------------------------------------------------------------------------
of the current value of Plan assets:
- ------------------------------------
<TABLE>
<CAPTION>
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Current Value of
Description of Assets Asset on
Identity of Party (include interest rate and Historical Cost Transaction Historical Gain
Involved maturity in the case of a loan) Purchase Price Selling Price of Asset Date (Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
The Vanguard Group Vanguard 500 Index Fund $ 28,775,309 $ -- $ -- $ 28,775,309 $ --
The Vanguard Group Vanguard 500 Index Fund -- 1,968,148 2,078,242 1,968,148 (110,094)
The Vanguard Group Vanguard Tlt Bond Mkt Idx 12,110,256 -- -- 12,110,256 --
The Vanguard Group Vanguard Tlt Bond Mkt Idx -- 950,338 943,084 950,338 7,254
The Vanguard Group Vanguard U.S. Growth 35,462,454 -- -- 35,462,454 --
The Vanguard Group Vanguard U.S. Growth -- 2,294,406 2,420,468 2,294,406 (126,061)
The Vanguard Group Vanguard Windsor II Fund 10,148,340 -- -- 10,148,340 --
The Vanguard Group Vanguard Windsor II Fund -- 633,794 659,425 633,794 (25,630)
The Vanguard Group Vanguard Retire Savings Trst 12,137,019 -- -- 12,137,019 --
The Vanguard Group Vanguard Retire Savings Trst -- 1,618,222 1,618,222 1,618,222 --
N/A Diebold Company Stock 72,201,973 -- -- 72,201,973 --
N/A Diebold Company Stock -- 2,600,733 2,443,098 2,600,733 157,635
</TABLE>
See accompanying independent auditors' report.
-14-
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
DIEBOLD, INCORPORATED 401(k) SAVINGS PLAN
-----------------------------------------
(Name of Plan)
Date: June 29, 1999 By: /s/Gerald F. Morris
-------------- -----------------------
Gerald F. Morris
Executive Vice President and
Chief Financial Officer
(Principal Accounting and
Financial Officer)
-15-
<PAGE> 16
DIEBOLD, INCORPORATED
FORM 11-K
INDEX TO EXHIBITS
EXHIBIT NO. PAGE NO.
- ----------- --------
23. Consent of Independent Auditors 17
-16-
<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 28,
1999 relating to the statements of net assets available for benefits of the
Diebold, Incorporated 401(k) Savings Plan as of December 31, 1998 and 1997, and
the related statements of changes in net assets available for benefits for the
years then ended, which report appears in the December 31, 1998 annual report on
Form 11-K of the Diebold, Incorporated 401(k) Savings Plan.
/s/KPMG LLP
- -----------
KPMG LLP
Cleveland, Ohio
June 29, 1999
-17-
