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 for
Hourly Employees at Fort Madison and Aurora
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 for Hourly Employees at Fort Madison and Aurora 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 FOR HOURLY
EMPLOYEES AT FORT MADISON
AND AURORA
By /s/Linde Harned
Linde Harned
Committee Chairman
DATE: June 28, 1994
<PAGE>
THE DIAL CONSUMER PRODUCTS GROUP 401(k) PLAN
FOR HOURLY EMPLOYEES AT FORT MADISON AND AURORA
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 for Hourly Employees at
Fort Madison and Aurora:
We have audited the accompanying statements of net assets available for
benefits of The Dial Consumer Products Group 401(k) Plan for Hourly Employees
at Fort Madison and Aurora (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 page 8
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>
THE DIAL CONSUMER PRODUCTS GROUP
401(k) PLAN FOR HOURLY EMPLOYEES AT FORT MADISON AND AURORA
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1993 AND 1992
ASSETS 1993 1992
INVESTMENTS AT FAIR VALUE:
Shares of registered
investment companies:
Vanguard Windsor II Fund $2,458,412 $1,750,953
T. Rowe Price Stable Value Fund 2,130,822 1,718,365
Vanguard GNMA Fund 619,855 472,138
Common stock:
The Dial Corp Common Stock 413,620 306,825
GFC Financial Corporation
Common Stock 44,837 44,280
---------- ----------
Total investments 5,667,546 4,292,561
CONTRIBUTIONS RECEIVABLE 18,380 15,025
---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $5,685,926 $4,307,586
========== ==========
See notes to financial statements.
<PAGE>
THE DIAL CONSUMER PRODUCTS GROUP
401(k) PLAN FOR HOURLY EMPLOYEES AT FORT MADISON AND AURORA
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 1993 AND 1992
1993 1992
ADDITIONS:
Contributions:
Employer - employee
wage reductions $ 994,096 $ 844,619
Company matching 88,763 82,730
Employee 45,429 36,113
---------- ----------
Total contributions 1,128,288 963,462
---------- ----------
Transfer of assets 0 24,321
---------- ----------
Investment income:
Dividends 179,143 140,058
Interest 112,620 104,564
Net appreciation in
fair value of investments 121,058 112,562
---------- ----------
Total investment income 412,821 357,184
---------- ----------
Total additions 1,541,109 1,344,967
DEDUCTIONS - Distributions
to participants 162,769 107,592
---------- ----------
NET INCREASE 1,378,340 1,237,375
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 4,307,586 3,070,211
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $5,685,926 $4,307,586
========== ==========
See notes to financial statements.
<PAGE>
THE DIAL CONSUMER PRODUCTS GROUP
401(k) PLAN FOR HOURLY EMPLOYEES AT FORT MADISON AND AURORA
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 for Hourly Employees at Fort Madison and Aurora (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 Planning Retirement Income Management
Earnings Plan ("PRIME"), was established October 1, 1991. Employees of the
Consumer Products Group 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 Company may also contribute a matching amount, 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. Company matching contributions will be
25% of salary reduction, but not more than $4 per week. 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. No Company
matching contributions are made based on after-tax contributions. All
contributions are limited to the applicable amounts as prescribed by the
Internal Revenue Code.
c. 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 - Effective October 1, 1991, a portion of the
participants in The Dial Consumer Products Group 401(k) Plan, commonly known
as the Taxsaver Investment Plan ("TIP") were transferred to the Plan. The
Company continued to transfer participants from TIP to the Plan 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 sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded on
the ex-dividend date.
c. Payments 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 ended December 31, 1993 and 1992.
<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
<C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor
II Fund $2,458,412 $2,458,412
T. Rowe Price Stable
Value Fund $2,130,822 2,130,822
Vanguard GNMA Fund $ 619,855 619,855
Common stock:
The Dial Corp
Common Stock $ 413,620 413,620
GFCFC Common Stock $ 44,837 44,837
Contributions receivable 7,653 6,645 2,336 1,746 18,380
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $2,466,065 $2,137,467 $ 622,191 $ 415,366 $ 44,837 $5,685,926
========== ========== ========== ========== ========== ==========
1992
ASSETS
Investments at fair value:
Shares of registered
investment companies:
Vanguard Windsor
II Fund $1,750,953 $1,750,953
T. Rowe Price Stable
Value Fund $1,718,365 1,718,365
Vanguard GNMA Fund $ 472,138 472,138
Common stock:
The Dial Corp
Common Stock $ 306,825 306,825
GFCFC Common Stock $ 44,280 44,280
Contributions receivable 6,016 5,964 1,745 1,300 15,025
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $1,756,969 $1,724,329 $ 473,883 $ 308,125 $ 44,280 $4,307,586
========== ========== ========== ========== ========== ==========
</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 $ 389,576 $ 386,991 $ 127,100 $ 90,429 $ 994,096
Company matching 32,125 35,918 12,328 8,392 88,763
Employee 20,020 18,818 4,963 1,628 45,429
---------- ---------- ---------- ---------- ----------
Total contributions 441,721 441,727 144,391 100,449 1,128,288
---------- ---------- ---------- ---------- ----------
Investment income:
Dividends 135,160 33,782 9,018 $ 1,183 179,143
Interest 112,620 112,620
Net appreciation
(depreciation) in
fair value of
investments 125,105 (3,788) (9,890) 9,631 121,058
---------- ---------- ---------- ---------- ---------- ----------
Total investment income 260,265 112,620 29,994 (872) 10,814 412,821
---------- ---------- ---------- ---------- ---------- ----------
Total additions 701,986 554,347 174,385 99,577 10,814 1,541,109
DEDUCTIONS - Distributions
to participants (47,634) (98,675) (12,985) (2,973) (502) (162,769)
INTERFUND TRANSFERS 54,744 (42,534) (13,092) 10,637 (9,755) -
---------- ---------- ---------- ---------- ---------- ----------
NET INCREASE 709,096 413,138 148,308 107,241 557 1,378,340
NET ASSETS AVAILABLE
FOR BENEFITS,
BEGINNING OF YEAR 1,756,969 1,724,329 473,883 308,125 44,280 4,307,586
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS, END OF YEAR $2,466,065 $2,137,467 $ 622,191 $ 415,366 $ 44,837 $5,685,926
========== ========== ========== ========== ========== ==========
</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 $ 325,699 $ 354,290 $ 102,293 $ 62,337 $ 844,619
Company matching 29,910 34,650 11,424 6,746 82,730
Employee 14,070 17,665 2,868 1,510 36,113
---------- ---------- ---------- ---------- ----------
Total contributions 369,679 406,605 116,585 70,593 963,462
---------- ---------- ---------- ---------- ----------
Transfer of assets 8,609 8,768 176 (28,379) $ 31,139 $ 4,008 24,321
---------- ---------- ---------- ---------- ---------- ---------- ----------
Investment income:
Dividends 74,368 28,314 37,376 140,058
Interest 71,104 33,460 104,564
Net appreciation
(depreciation) in
fair value of
investments 96,312 (2,137) (4,315) 22,702 112,562
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total investment income 170,680 71,104 26,177 33,061 22,702 33,460 357,184
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total additions 548,968 486,477 142,938 75,275 53,841 37,468 1,344,967
DEDUCTIONS -
Distributions to
participants (32,120) (41,015) (18,538) (4,616) (310) (10,993) (107,592)
INTERFUND TRANSFERS (3,003) 675,499 34,819 36,964 (9,251) (735,028) -
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) 513,845 1,120,961 159,219 107,623 44,280 (708,553) 1,237,375
NET ASSETS AVAILABLE
FOR BENEFITS,
BEGINNING OF YEAR 1,243,124 603,368 314,664 200,502 708,553 3,070,211
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS,
END OF YEAR $1,756,969 $1,724,329 $ 473,883 $ 308,125 $ 44,280 $ - $4,307,586
========== ========== ========== ========== ========== ========== ==========
</TABLE>
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 November 16, 1992, 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 FOR HOURLY EMPLOYEES AT FORT MADISON AND AURORA
SUPPLEMENTAL SCHEDULES
YEAR ENDED 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 (144,273 shares) $2,243,027 $2,458,412
T. Rowe Price Stable GIC Fund
Value Fund (2,130,822 shares) 2,130,822 2,130,822
Vanguard GNMA GNMA Fund
Fund (59,774 shares) 616,843 619,855
The Dial Corp Common stock
Common Stock (10,245 shares) 327,403 413,620
GFCFC Common Stock Common stock
(1,546 shares) 20,272 44,837
---------- ----------
Total assets held for investment $5,338,367 $5,667,546
========== ==========
</TABLE>
<TABLE>
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:
None Noted
SERIES OF TRANSACTIONS:
Vanguard Windsor II
Fund Common Stock $631,472 $631,472
Vanguard Windsor II
Fund Common Stock $ 49,118 $43,985 49,118 $5,133
T. Rowe Price Stable
Value Fund GIC Fund 562,995 562,995
T. Rowe Price Stable
Value Fund GIC Fund 150,538 150,538 150,538
<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. 33-65424 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 Hourly
Employees at Fort Madison and Aurora for the year ended December
31, 1993.
/s/Deloitte & Touche
DELOITTE & TOUCHE
Phoenix, Arizona
June 24, 1994
Exhibit 24.1
