SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1993
Commission file number: 001-11015
A. Full title of the Plan and address of the Plan, if different
from that of the issuer named below:
Dial Consumer Products Group 401(k) Plan
B. Name of issuer of the securities held pursuant to the Plan
and the address of its principal executive office:
THE DIAL CORP
DIAL TOWER
PHOENIX, ARIZONA 85077
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Dial Consumer Products Group 401(k) Plan Committee has duly caused
this annual report to be signed on its behalf by the undersigned thereunto
duly authorized.
DIAL CONSUMER PRODUCTS
GROUP 401(k) PLAN
By /s/ Linde Harned
Linde Harned
Committee Chairman
DATE: June 28, 1994
<PAGE>
THE DIAL CONSUMER PRODUCTS GROUP 401(k) PLAN
Financial Statements for the
Years Ended December 31, 1993 and 1992,
Supplemental Schedules for the
Year Ended December 31, 1993 and
Independent Auditors' Report
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Plan Administrator and
Plan Participants of
The Dial Consumer Products Group 401(k) Plan:
We have audited the accompanying statements of net assets available for
benefits of The Dial Consumer Products Group 401(k) Plan (the "Plan") as of
December 31, 1993 and 1992, 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, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31,
1993 and 1992, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules on pages 8
and 9 are presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in our audit
of the basic 1993 financial statements and, in our opinion, are fairly
stated, in all material respects when considered in relation to the basic
financial statements taken as a whole.
/s/Deloitte & Touche
June 8, 1994
<PAGE>
<TABLE>
<PAGE>
THE DIAL CONSUMER PRODUCTS GROUP 401(k) PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1993 AND 1992
<CAPTION>
ASSETS 1993 1992
<S> <C> <C>
INVESTMENTS AT FAIR VALUE:
Shares of registered
investment companies:
Vanguard Windsor II Fund $ 583,342 $ 440,822
T. Rowe Price Stable Value Fund 388,096 319,567
Vanguard GNMA Fund 133,463 94,765
Common stock:
The Dial Corp Common Stock 265,124 191,727
GFC Financial Corporation
Common Stock 21,766 21,427
---------- ----------
Total investments 1,391,791 1,068,308
CONTRIBUTIONS RECEIVABLE 6,526 6,097
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $1,398,317 $1,074,405
========== ==========
<FN>
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE DIAL CONSUMER PRODUCTS GROUP 401(k) PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 1993 AND 1992
<CAPTION>
1993 1992
<S> <C> <C>
ADDITIONS:
Contributions:
Employer - employee
wage reductions $ 334,167 $ 347,455
Employee 21,422 23,808
---------- ----------
Total contributions 355,589 371,263
---------- ----------
Investment income:
Dividends 45,298 49,982
Interest 20,840 22,454
Net appreciation in fair
value of investments 28,698 27,173
---------- ----------
Total investment income 94,836 99,609
---------- ----------
Total additions 450,425 470,872
---------- ----------
DEDUCTIONS:
Distributions to participants 126,513 152,414
Transfer of assets 24,321
---------- ----------
Total deductions 126,513 176,735
---------- ----------
NET INCREASE 323,912 294,137
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 1,074,405 780,268
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $1,398,317 $1,074,405
========== ==========
<FN>
See notes to financial statements.
</TABLE>
<PAGE>
THE DIAL CONSUMER PRODUCTS GROUP 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1993 AND 1992
1. DESCRIPTION OF THE PLAN
The following brief description of The Dial Consumer Products Group
401(k) Plan (the "Plan") is provided for general information purposes only.
Participants should refer to the Plan agreement for more complete
information.
The Plan, commonly known as the Taxsaver Investment Plan ("TIP"), was
established January 5, 1987. Employees of the The Dial Corporation, a
division of The Dial Corp ("Dial"), and certain of its subsidiaries (the
"Company") who are covered by a collective bargaining agreement are eligible
to participate in the Plan after completing at least 1,000 hours of service
in a twelve consecutive month period. Employees are able to contribute to
the Plan by reducing their wages on a pre-tax and after-tax basis, subject to
certain limitations.
The Plan is subject to various regulations, particularly those under the
Internal Revenue Code Section 401(k) and the Employee Retirement Income
Security Act of 1974 ("ERISA").
a. Investment Programs - Receipts of the Plan are invested by the Plan's
trustee, T. Rowe Price, at the designation of the participants. The Plan
offers participants the following funds in which to invest pre-tax, after-tax
and rollover deposits. Interest, dividends and other investment transactions
are recorded on the accrual basis of accounting.
1) Vanguard Windsor II Fund - This fund invests in the common stock of other
companies. The fair value of the fund is dependent upon the market value of
the stocks. Any dividends received are reinvested.
2) T. Rowe Price Stable Value Fund - This fund invests in a diversified
portfolio of Guaranteed Investment Contracts ("GIC") issued by insurance
companies, bank investment contracts issued by financial institutions, and
strategic investment contracts issued by insurance companies, financial
institutions and other entities. Income is earned based upon a blended
interest rate determined by the various investments and is reinvested. The
fair value of the fund represents contract value which includes contributions
made, plus interest at blended rates, less withdrawals by participants.
3) Vanguard GNMA Fund - This fund invests primarily in Government National
Mortgage Association ("GNMA") certificates. These securities represent
ownership in pools of approved mortgage loans which provide a yield based on
the ratios of return of the GNMA holdings that comprise the portfolio. The
fair value of the fund is dependent upon fluctuations in market conditions.
4) The Dial Corp Common Stock Fund - This fund invests in the common stock
of Dial and any dividends paid on the stock are reinvested in the fund. The
fair value of this fund is dependent upon the fluctuations in the market
value of such stock.
5) GFC Financial Corporation ("GFCFC") Common Stock Fund - This fund invests
in the common stock of GFCFC and any dividends paid on the stock are
reinvested according to the participants' investment mix, due to this fund
being closed to additional contributions. The fair value of this fund is
dependent upon the fluctuation in the market value of the GFCFC stock.
b. Contributions - Voluntary wage reductions may be elected by the employee.
These pre-tax reductions are contributed to the Plan by the Company and may
range from 1% to 12% of compensation. Each employee who has authorized a
wage reduction at the rate of 6% or more may elect an after-tax contribution
of between 1% and 10% of compensation. All contributions are limited to the
applicable amounts as prescribed by the Internal Revenue Code.
c. Distributions of the Plan assets occur upon participant termination from
the Company, financial hardship, disablement, retirement or death.
d. Vesting - All contributions to the Plan are 100% vested and
nonforfeitable at all times.
e. Participant Accounts - For each participant, various accounts are
maintained to record wage reduction contributions, employee contributions and
participant rollover deposits transferred to the Plan. The benefit to which
a participant is entitled is the total benefit which can be provided from the
combined amount of these participant accounts.
f. Plan Administration - The Plan is administered by a committee of at least
three persons appointed by the Chief Executive Officer of the Company.
Expenses incident to the operation of the Plan may be paid by the Plan or
directly by the Company.
g. Plan Termination - While it is the Company's intention to continue the
Plan, the Company has the right to terminate the Plan provided all employer
contributions due at the termination date have been paid.
h. Transfer of Assets - During the year ended December 31, 1991, the Company
established the Planning Retirement Income Management Earnings Plan
("PRIME"). Effective October 1, 1991, a portion of the participants in the
TIP plan were transferred to the PRIME plan. The Company continued to
transfer participants from TIP to PRIME during 1992, as they became eligible.
No participants were transferred in 1993.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies are as follows:
a. Basis of Accounting - The financial statements of the Plan are prepared
under the accrual method of accounting.
b. Investment Valuation and Income Recognition - The Plan's investments are
stated at fair value. Shares of registered investment companies are valued
at quoted market prices which represent the net asset value of shares held by
the Plan at year-end. Common stock is valued at its quoted market price.
Purchases and sale of securities are recorded on a trade-date basis.
Interest and dividend income are recorded on the accrual basis.
c. Payment of Benefits - Benefits are recorded when paid.
3. NET ASSETS AND CHANGES THEREIN BY FUND
The following tables present the net assets of the Plan by fund as of
December 31, 1993 and 1992, as well as changes in net assets by fund for the
years then ended.
<PAGE>
<TABLE>
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1993 AND 1992
<CAPTION>
T. Rowe The Dial
Vanguard Price Vanguard Corp GFCFC
Windsor Stable GNMA Common Common
1993 II Fund Value Fund Fund Stock Stock Total
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor
II Fund $583,342 583,342
T. Rowe Price Stable
Value Fund $388,096 388,096
Vanguard GNMA Fund $133,463 133,463
Common Stock:
The Dial Corp Common Stock $265,124 265,124
GFCFC Common Stock $ 21,766 21,766
Contributions receivable 2,612 1,574 771 1,569 6,526
-------- -------- -------- -------- -------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $585,954 $389,670 $134,234 $266,693 $ 21,766 $1,398,317
======== ======== ======== ======== ======== ==========
1992
ASSETS
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor
II Fund $440,822 440,822
T. Rowe Price Stable
Value Fund $319,567 319,567
Vanguard GNMA Fund $ 94,765 94,765
Common Stock:
The Dial Corp Common stock $191,727 191,727
GFCFC common stock $ 21,427 21,427
Contributions receivable 2,642 1,311 581 1,563 6,097
-------- -------- -------- -------- -------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $443,464 $320,878 $ 95,346 $193,290 $ 21,427 $1,074,405
======== ======== ======== ======== ======== ==========
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEARS ENDED DECEMBER 31, 1993 AND 1992
<CAPTION>
T. Rowe The Dial
Vanguard Price Vanguard Corp GFCFC
Windsor Stable GNMA Common Common
1993 II Fund Value Fund Fund Stock Stock Total
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employer - employee
wage reductions $133,272 $ 79,669 $ 38,633 $ 82,593 $ 334,167
Employee 8,417 5,550 2,686 4,769 21,422
-------- -------- -------- -------- ----------
Total contributions 141,689 85,219 41,319 87,362 355,589
Investment income:
Dividends 32,014 7,062 5,648 $ 574 45,298
Interest 20,840 20,840
Net appreciation
(depreciation)
in fair value
of investments 31,865 (834) (6,999) 4,666 28,698
-------- -------- -------- -------- -------- ----------
Total investment income 63,879 20,840 6,228 (1,351) 5,240 94,836
-------- -------- -------- -------- -------- ----------
Total additions 205,568 106,059 47,547 86,011 5,240 450,425
-------- -------- -------- -------- -------- ----------
DEDUCTIONS - Distributions
to participants 67,365 35,903 8,816 14,007 422 126,513
-------- -------- -------- -------- -------- ----------
INTERFUND TRANSFERS 4,287 (1,364) 157 1,399 (4,479) -
-------- -------- -------- -------- -------- ----------
NET INCREASE 142,490 68,792 38,888 73,403 339 323,912
NET ASSETS AVAILABLE FOR
BENEFITS, BEGINNING
OF YEAR 443,464 320,878 95,346 193,290 21,427 1,074,405
-------- -------- -------- -------- -------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS, END OF YEAR $585,954 $389,670 $134,234 $266,693 $ 21,766 $1,398,317
======== ======== ======== ======== ======== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
T. Rowe The Dial
Vanguard Price Vanguard Corp GFCFC Vanguard
Windsor Stable GNMA Common Common GIC
1992 II Fund Value Fund Fund Stock Stock Trust Total
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employer - employee
wage reductions $140,738 $ 95,781 $ 36,726 $ 74,210 $ 347,455
Employee 12,237 5,086 1,978 4,507 23,808
-------- -------- -------- -------- -------- -------- ----------
Total contributions 152,975 100,867 38,704 78,717 371,263
-------- -------- -------- -------- -------- -------- ----------
Investment income:
Dividends 18,671 5,873 24,969 $ 469 49,982
Interest 17,030 $ 5,424 22,454
Net appreciation
(depreciation) in
fair value of
investments 22,740 (385) (6,183) 11,001 27,173
-------- -------- -------- -------- -------- -------- ----------
Total investment income 41,411 17,030 5,488 18,786 11,470 5,424 99,609
-------- -------- -------- -------- -------- -------- ----------
Total additions 194,386 117,897 44,192 97,503 11,470 5,424 470,872
-------- -------- -------- -------- -------- -------- ----------
DEDUCTIONS:
Distributions to
participants 32,869 69,077 10,158 13,381 2,350 24,579 152,414
Transfer of assets 8,610 8,768 175 2,725 35 4,008 24,321
-------- -------- -------- -------- -------- -------- ----------
Total deductions 41,479 77,845 10,333 16,106 2,385 28,587 176,735
-------- -------- -------- -------- -------- -------- ----------
INTERFUND TRANSFERS (12,002) 119,480 76 (2,343) 12,342 (117,553) -
-------- -------- -------- -------- -------- -------- ----------
NET INCREASE
(DECREASE) 140,905 159,532 33,935 79,054 21,427 (140,716) 294,137
NET ASSETS AVAILABLE
FOR BENEFITS,
BEGINNING OF YEAR 302,559 161,346 61,411 114,236 140,716 780,268
-------- -------- -------- -------- -------- -------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS,
END OF YEAR $443,464 $320,878 $ 95,346 $193,290 $ 21,427 $ - $1,074,405
======== ======== ======== ======== ======== ======== ==========
</TABLE>
<PAGE>
4. RELATED PARTY TRANSACTIONS
Plan investments include shares of the T. Rowe Price Stable Value Fund
managed by T. Rowe Price. T. Rowe Price is the trustee as defined by the
Plan and, therefore, these transactions qualify as party-in-interest.
5. FEDERAL INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Company by
letter, dated April 8, 1993, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code.
* * * * * *
<PAGE>
<TABLE>
THE DIAL CONSUMER PRODUCTS GROUP 401(k) PLAN
SUPPLEMENTAL SCHEDULE DECEMBER 31, 1993
Item 27a - Schedule of Assets Held for Investment Purposes
<CAPTION>
Column B Column C Column D Column E
Description of
Investment Including
Collateral, Rate of
Identity of Issue, Interest, Maturity
Borrower, Lessor or Date, Par or Current
Similar Party Maturity Value Cost Value
- - ---------------------- ---------------------- ----------- -----------
<S> <C> <C> <C>
Vanguard Windsor Common stock
II Fund (34,234 shares) $ 516,474 $ 583,342
T. Rowe Price Stable GIC Fund
Value Fund (388,096 shares) 388,096 388,096
Vanguard GNMA Fund GNMA Fund
(12,870 shares) 131,767 133,463
The Dial Corp Common Common stock
Stock (6,567 shares) 226,936 265,124
GFC Financial Corpor- Common Stock
Common stock (751 shares) 11,153 21,766
---------- ----------
Total assets held for investment $1,274,426 $1,391,791
</TABLE>
========== ==========
<PAGE>
<TABLE>
THE DIAL CONSUMER PRODUCTS GROUP 401(k) PLAN
SUPPLEMENTAL SCHEDULE YEAR ENDED DECEMBER 31, 1993
Item 27d - Schedule of Reportable Transactions
<CAPTION>
Column A Column B Column C Column D Column G Column H Column I
Current
Value
of Asset on Net
Identity of Description Purchase Selling Cost of Transaction Gain/
Party Involved of Asset Price Price Asset Date (Loss)
- - --------------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
SINGLE TRANSACTIONS:
Vanguard Windsor II
Fund Common stock $ 39,190 $ 34,035 $ 39,190 $ 5,155
SERIES OF TRANSACTIONS:
Vanguard Windsor II
Fund Common stock $179,627 179,627
Vanguard Windsor II
Fund Common stock 68,973 59,565 68,973 9,408
T. Rowe Price Stable
Value Fund GIC Fund 106,385 106,385
T. Rowe Price Stable
Value Fund GIC Fund 37,856 37,856 37,856
Vanguard GNMA
Fund GNMA Fund 48,348 48,348
Vanguard GNMA
Fund GNMA Fund 8,816 8,571 8,816 245
The Dial Corp
Common Stock Common stock 98,381 98,381
The Dial Corp
Common Stock Common stock 17,985 16,721 17,985 1,264
<FN>
NOTE: Reportable transactions are those which either singularly or in a series of combined purchases and sales during the year
exceed 5% of the fair value of the Plan's assets at the beginning of the year.
</TABLE>
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration
Statement No. 33-10150 of The Dial Corp on Form S-8 of our report
dated June 8, 1994, appearing in this Annual Report on Form 11-K
of the Dial Consumer Products Group 401(k) Plan for the year
ended December 31, 1993.
/s/Deloitte & Touche
DELOITTE & TOUCHE
Phoenix, Arizona
June 24, 1994
Exhibit 24.1
