<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE,
SAVINGS AND SIMILAR PLANS PURSUANT TO
SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT
For the fiscal year ended December 31, 1997.
OR
[ ] TRANSACTION REPORT PURSUANT TO SECTION 1(d)
THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-7182
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Merrill Lynch & Co., Inc.
World Financial Center
North Tower
250 Vesey Street
New York, N.Y. 10281-1334
Financial Statments and Exhibits
(a) Financial Statements for the Years Ended December 31, 1997 and 1996,
Supplemental Schedules for the Year ended December 31, 1997 and Independent
Auditors' Report.
The financial statments required to be filed hereunder appear commencing at
page 2 hereof.
(b) Exhibits
(23) Consent of Independent Public Accountants (following financial
statements).
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Administrative Committee (the persons who administer the employee
benefit plan) has duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized, in the City of New York, State of New
York.
Merill Lynch & Co., Inc.
401(k) Savings & Investment Plan
Date: June 26, 1998 By: \s\ Robert F. Arimenta, Jr.
-----------------------------
Robert F. Arimenta, Jr.
Vice President, Merrill Lynch
Trust Company, Trustee
<PAGE>
The Merrill Lynch & Co.,
Inc. 401(k) Savings &
Investment Plan
Financial Statements for the
Years Ended December 31, 1997 and 1996,
Supplemental Schedules for the
Year Ended December 31, 1997 and
Independent Auditors' Report
<PAGE>
THE MERRILL LYNCH & CO., INC.
401(k) SAVINGS & INVESTMENT PLAN
TABLE OF CONTENTS
- -------------------------------------------------------------------------------
Page
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 1997 AND 1996:
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4-14
SUPPLEMENTAL SCHEDULES AS OF AND FOR THE
YEAR ENDED DECEMBER 31, 1997:
Schedule of Assets Held for Investment Purposes 15-16
Schedule of Reportable Transactions 17
<PAGE>
INDEPENDENT AUDITORS' REPORT
Trustees of the Merrill Lynch & Co., Inc.
401(k) Savings & Investment Plan
We have audited the accompanying statements of net assets available for benefits
of the Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan (the "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 and the supplemental schedules discussed below 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, 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 listed in the
Table of Contents 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 audits
of the basic 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 LLP
June 8, 1998
<PAGE>
THE MERRILL LYNCH & CO., INC.
401(k) SAVINGS & INVESTMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997 AND 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
ASSETS:
Investments, at market value:
Common stock $ 608,207,808 $ 301,273,051
Funds and trusts 1,672,424,289 1,366,263,439
-------------- --------------
Total investments 2,280,632,097 1,667,536,490
Cash 1,599,954 4,710,074
Employer contributions receivable 1,205,982 1,154,434
Employee contributions receivable -- 1,252,128
Receivable for securities sold -- 3,710,384
-------------- --------------
Total assets 2,283,438,033 1,678,363,510
LESS LIABILITIES:
Payable for securities purchased -- 2,301,126
-------------- --------------
NET ASSETS AVAILABLE FOR BENEFITS $2,283,438,033 $1,676,062,384
-------------- --------------
-------------- --------------
</TABLE>
See notes to financial statements.
2
<PAGE>
THE MERRILL LYNCH & CO., INC.
401(k) SAVINGS & INVESTMENT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 1997 AND 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
ADDITIONS:
Investment income:
Net appreciation in fair value of investments $ 359,533,245 $ 175,400,445
Dividends and interest 144,820,751 101,896,155
-------------- --------------
Total investment income 504,353,996 277,296,600
Contribution to the Plan by the Company 30,085,399 27,477,361
Contribution to the Plan by the employees 181,675,960 161,369,639
Rollovers from other qualified plans 2,232,802 1,316,518
-------------- --------------
Total additions 718,348,157 467,460,118
-------------- --------------
DEDUCTIONS:
Disbursements of benefits to beneficiaries or employees 110,890,129 86,965,176
Administrative expenses 82,379 651,986
-------------- --------------
Total deductions 110,972,508 87,617,162
-------------- --------------
NET INCREASE IN NET ASSETS
AVAILABLE FOR BENEFITS 607,375,649 379,842,956
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 1,676,062,384 1,296,219,428
-------------- --------------
End of year $2,283,438,033 $1,676,062,384
-------------- --------------
-------------- --------------
</TABLE>
See notes to financial statements.
3
<PAGE>
THE MERRILL LYNCH & CO., INC.
401(k) SAVINGS & INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
- -------------------------------------------------------------------------------
1. DESCRIPTION OF THE PLAN
The following description of the Merrill Lynch & Co., Inc. 401(k) Savings
& Investment Plan (the "Plan") is provided for general information
purposes only. Participants should refer to the Plan document for more
complete information. Terms used in this description have the same meaning
as in the Plan.
The Plan was adopted on April 23, 1987 and commenced activities on October
1, 1987. The purpose of the Plan is to encourage employees to save for
retirement. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA").
Subject to exclusions specified in the Plan, any Employee of Merrill Lynch
& Co., Inc. or of a participating subsidiary or affiliate (the "Company"
or "Employer") can elect to participate in the Plan providing such
Employee has worked for the Employer for 12 months. An Employee can elect
to participate in the Plan (if eligible) as of the first day of the
month following 12 months of employment or the first day of any
month thereafter.
Each Participant may elect to make contributions to the Plan on a pre-tax
basis through payroll deductions from 1% through 15% of such Participant's
Eligible Compensation for each pay period up to an annual maximum of
$9,500 for 1997 and 1996 (subject to certain exceptions described in the
Plan and periodic adjustments for cost-of-living increases for each
calendar year). A Participant can elect to change the rate at which his or
her contribution is determined.
The Company will make contributions, up to a maximum of $1,500, in an
amount equal to 50% of the first 4% of Eligible Compensation contributed
by a Participant during each calendar year. No Employer contributions will
be made for any calendar year for Employees who participate at any time
during such calendar year in the Company's Employee Stock Purchase Plan.
All Participants are always 100% vested in contributions to the Plan made
from their Eligible Compensation and in amounts rolled over from an
employer's qualified retirement plan. Participants are 100% vested in
Employer contributions when they attain age 65 or terminate employment
because of death.
Other Participants who terminate employment after October 31, 1993 will
become vested in Employer contributions and earnings based on complete
Years of Service after October 1, 1987: 1 Year of Service - 20% vested; 2
Years of Service - 40% vested; 3 Years of Service - 60% vested; 4 Years of
Service - 80% vested; and 5 Years of Service - 100% vested.
The Plan permits withdrawals relating to contributions and earnings under
certain conditions which are in accordance with the Internal Revenue Code
and the regulations thereunder.
4
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases and sales of investments are recorded on a trade date basis. All
other accounting records of the Plan are maintained on the accrual basis.
The accompanying financial statements do not include any investments in
VOCON and Deferred Profit Sharing Accounts, which are self-directed
Accounts, that were transferred into the Plan for administrative
convenience only.
The cost of security investments is based on the average cost method for
individual securities. Quoted market values of security investments are
based on the last sales price (if traded on December 31), the prevailing
bid price or the prevailing net asset value at the close of trading on
December 31.
3. INVESTMENTS
The Administrative Committee has the authority to designate Investment
Funds for the investment of accounts other than VOCON and Deferred Profit
Sharing Accounts, to determine which accounts can be self-directed and to
establish rules and procedures with respect to investment funds and
self-directed accounts.
All contributions to the Plan may be allocated by the Participant among
the investments designated by the Administrative Committee.
In February 1996, Select Ten Retirement Portfolio was added as an
investment option available to Participants.
Effective November 1997, 14 additional Merrill Lynch Asset Management
Funds, 9 Hotchkis & Wiley Funds and 3 index trusts were added as
investment options. This increased the investment choices from 27 to 53.
During 1997 and 1996, the Plan's investments (including investments
bought, sold and held during each year) appreciated in value as follows:
<TABLE>
<CAPTION>
Years Ended December 31,
1997 1996
<S> <C> <C>
Net change in fair value of investments:
Common stock $253,231,703 $111,849,742
Funds and trusts 106,301,542 63,550,703
------------ ------------
$359,533,245 $175,400,445
------------ ------------
------------ ------------
</TABLE>
The value of individual investments that represent 5% or more of the
Plan's net assets at December 31 are as follows:
<TABLE>
<CAPTION>
1997 1996
<S> <C>
Merrill Lynch & Co., Inc. $608,207,808 $300,575,194
Merrill Lynch:
Basic Value Fund 414,699,914 313,997,550
Capital Fund 227,863,002 198,614,241
Global Allocation Fund 203,553,804 182,963,445
Growth Fund 202,116,061 139,167,338
Retirement Reserves 125,677,992 134,987,517
</TABLE>
5
<PAGE>
4. ADMINISTRATIVE EXPENSES
Plan expenses, including expenses of the Administrative Committee and
Trustee, to the extent not paid by the Plan, are paid by the Company.
5. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to terminate the Plan subject to the provisions of
ERISA.
6. TAX STATUS
The Internal Revenue Service has determined and informed the Company by a
letter dated July 13, 1995, that the Plan and related trust are designed
in accordance with applicable sections of the Internal Revenue Code
("IRC"). The Plan administrator believes that the Plan is designed and is
currently being operated in compliance with the applicable requirements of
the IRC. Therefore, no provision for income taxes has been included in the
Plan's financial statements.
(Continued)
6
<PAGE>
7. FUND INFORMATION:
The following represents the changes in the net assets available for
benefit of the individual funds for the years ended December 31, 1997 and
1996:
<TABLE>
<CAPTION>
Merrill Lynch - 1997
-----------------------------------------------------------------------
GSIF U.S.
Government
Zero Coupon Adjustable Aggressive Americas
Merrill Lynch Bond Series 3 Rate Bond Income Basic Value
& Co., Inc.* Specialties Index Tier 3 Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 253,231,703 $ 6,827,240 $ -- $ 527 $ (3,117) $ 62,310,982
Dividends and interest 5,938,328 225,069 -- -- 3,711 31,684,864
------------- ------------- ------ ---------- --------- -------------
Total investment income (loss) 259,170,031 7,052,309 -- 527 594 93,995,846
Contributions and rollovers to the Plan 31,415,390 3,410,710 72 870 190 31,121,117
------------- ------------- ------ ---------- --------- -------------
Total additions 290,585,421 10,463,019 72 1,397 784 125,116,963
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 22,493,505 2,128,867 -- -- -- 15,143,219
Administrative expenses -- -- -- -- -- --
TRANSFERS AMONG FUNDS 37,841,723 (2,420,660) 40 79,687 31,275 (9,711,420)
------------- ------------- ------ ---------- --------- -------------
NET INCREASE (DECREASE) 305,933,639 5,913,492 112 81,084 32,059 100,262,324
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 302,274,169 55,991,056 -- -- -- 314,437,590
------------- ------------- ------ ---------- --------- -------------
End of year $ 608,207,808 $ 61,904,548 $ 112 $ 81,084 $ 32,059 $ 414,699,914
------------- ------------- ------ ---------- --------- -------------
------------- ------------- ------ ---------- --------- -------------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch - 1997
---------------------------------------------------------------------------------
Corporate Corporate
Corporate Bond Fund-- Bond Fund--
Bond Fund-- Intermediate Investment
Capital Convertible High Income Term Grade
Fund Fund Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C>
Net appreciation (depreciation)
in fair value of investments $ 22,102,391 $ (29) $ 431,539 $ 130,632 $ 669,001
Dividends and interest 19,315,587 239 3,984,084 515,744 3,072,718
------------- ---------- ------------- ------------- -------------
Total investment income (loss) 41,417,978 210 4,415,623 646,376 3,741,719
Contributions and rollovers to the Plan 19,167,283 577 2,286,874 215,706 4,670,590
------------- ---------- ------------- ------------- -------------
Total additions 60,585,261 787 6,702,497 862,082 8,412,309
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 11,124,498 -- 1,667,372 241,674 2,796,332
Administrative expenses -- -- -- -- --
TRANSFERS AMONG FUNDS (20,645,447) 8,141 91,311 166,809 (3,722,220)
------------- ---------- ------------- ------------- -------------
NET INCREASE (DECREASE) 28,815,316 8,928 5,126,436 787,217 1,893,757
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 199,047,686 -- 37,172,745 7,713,005 45,751,063
------------- ---------- ------------- ------------- -------------
End of year $ 227,863,002 $ 8,928 $ 42,299,181 $ 8,500,222 $ 47,644,820
------------- ---------- ------------- ------------- -------------
------------- ---------- ------------- ------------- -------------
</TABLE>
(Continued)
7
<PAGE>
<TABLE>
<CAPTION>
Merrill Lynch - 1997
------------------------------------------------------------------------------------
Developing
Capital Emerging Federal
Markets Dragon Tigers Equity Euro Securities
Fund Fund Fund Index Trust Fund Trust
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (13,059) $ (217,669) $ (102,847) $ 17,407,124 $ 772,338 $ 85
Dividends and interest 15,728 199,621 1,556 -- 3,478,545 248
---------- ----------- ----------- ------------ ------------ --------
Total investment income (loss) 2,669 (18,048) (101,291) 17,407,124 4,250,883 333
Contributions and rollovers to the Plan 3,464 14,464 3,447 9,140,685 2,172,140 15
---------- ----------- ----------- ------------ ------------ --------
Total additions 6,133 (3,584) (97,844) 26,547,809 6,423,023 348
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees -- -- -- 2,984,488 589,086 --
Administrative expenses -- -- -- -- -- --
TRANSFERS AMONG FUNDS 445,810 1,500,907 1,233,974 1,601,004 (206,538) 55,574
---------- ----------- ----------- ------------ ------------ --------
NET INCREASE (DECREASE) 451,943 1,497,323 1,136,130 25,164,325 5,627,399 55,922
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year -- -- -- 47,725,995 15,256,674 --
---------- ----------- ----------- ------------ ------------ --------
End of year $ 451,943 $ 1,497,323 $ 1,136,130 $ 72,890,320 $ 20,884,073 $ 55,922
---------- ----------- ----------- ------------ ------------ --------
---------- ----------- ----------- ------------ ------------ --------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch - 1997
--------------------------------------------------------------------------------------
Fundamental Global Global Global Global
Fund For Growth Allocation Bond Convertible Holdings
Tomorrow Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (77,801) $ (224,198) $ (4,732,548) $ (38,232) $ (31,880) $ (252,560)
Dividends and interest 308,273 211,590 26,576,431 59,511 141,574 565,268
----------- ----------- ------------- ----------- --------- -----------
Total investment income (loss) 230,472 (12,608) 21,843,883 21,279 109,694 312,708
Contributions and rollovers to the Plan 328,936 4,524 26,132,110 214,602 116,562 739,939
----------- ----------- ------------- ----------- --------- -----------
Total additions 559,408 (8,084) 47,975,993 235,881 226,256 1,052,647
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 31,768 -- 9,372,477 50,318 5,153 137,627
Administrative expenses -- -- -- -- -- --
TRANSFERS AMONG FUNDS 217,742 2,474,196 (18,301,842) (51,748) (88,732) (948,367)
----------- ----------- ------------- ----------- --------- -----------
NET INCREASE (DECREASE) 745,382 2,466,112 20,301,674 133,815 132,371 (33,347)
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year 913,488 -- 183,252,130 900,116 828,638 4,785,992
----------- ----------- ------------- ----------- --------- -----------
End of year $ 1,658,870 $ 2,466,112 $ 203,553,804 $ 1,033,931 $ 961,009 $ 4,752,645
----------- ----------- ------------- ----------- --------- -----------
----------- ----------- ------------- ----------- --------- -----------
</TABLE>
(Continued)
8
<PAGE>
<TABLE>
<CAPTION>
Merrill Lynch - 1997
------------------------------------------------------------------------------------------
Global Global Global Global
Resources Smallcap Utility Value Growth Healthcare
Trust Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (762,173) $ (5,487) $ 337,378 $ (11,595) $ 13,161,558 $ 216,639
Dividends and interest 391,820 2,122 306,030 87,035 16,000,638 1,810,869
------------ --------- ------------ ------------ ------------ ------------
Total investment income (loss) (370,353) (3,365) 643,408 75,440 29,162,196 2,027,508
Contributions and rollovers to
the Plan 379,819 1,870 362,465 13,548 29,786,565 1,174,803
------------ --------- ------------ ------------ ------------ ------------
Total additions 9,466 (1,495) 1,005,873 88,988 58,948,761 3,202,311
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 67,549 -- 113,988 -- 8,437,188 420,489
Administrative expenses -- -- -- -- -- --
TRANSFERS AMONG FUNDS (794,421) 42,629 (322,660) 2,128,985 12,009,693 (515,382)
------------ --------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) (852,504) 41,134 569,225 2,217,973 62,521,266 2,266,440
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year 3,717,647 -- 2,661,560 -- 139,594,795 7,087,492
------------ --------- ------------ ------------ ------------ ------------
End of year $ 2,865,143 $ 41,134 $ 3,230,785 $ 2,217,973 $202,116,061 $ 9,353,932
------------ --------- ------------ ------------ ------------ ------------
------------ --------- ------------ ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch - 1997
------------------------------------------------------------------------------------------
International International Latin Retirement
Equity Index America Pacific Phoenix Preservation
Fund Tier 3 Fund Fund Fund Trust
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (13,652) $ 187 $ 23,670 $ (9,879,849) $ (480,879) $ --
Dividends and interest 11,198 -- -- 6,770,197 2,588,121 3,898,645
------------ --------- ------------ ------------ ------------ ------------
Total investment income (loss) (2,454) 187 23,670 (3,109,652) 2,107,242 3,898,645
Contributions and rollovers to
the Plan 1,043 1,441 11,292 6,326,239 1,935,668 6,238,316
------------ --------- ------------ ------------ ------------ ------------
Total additions (1,411) 1,628 34,962 3,216,587 4,042,910 10,136,961
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees -- -- -- 1,712,263 584,983 10,060,203
Administrative expenses -- -- -- -- -- --
TRANSFERS AMONG FUNDS 60,755 59,889 579,915 (8,218,269) (3,148,192) 8,944,834
------------ --------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) 59,344 61,517 614,877 (6,713,945) 309,735 9,021,592
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year -- -- -- 49,442,695 11,039,754 55,175,467
------------ --------- ------------ ------------ ------------ ------------
End of year $ 59,344 $ 61,517 $ 614,877 $ 42,728,750 $ 11,349,489 $ 64,197,059
------------ --------- ------------ ------------ ------------ ------------
------------ --------- ------------ ------------ ------------ ------------
</TABLE>
(Continued)
9
<PAGE>
<TABLE>
<CAPTION>
Merrill Lynch - 1997
-----------------------------------------------------------------------------------------
Retirement Select-Ten Small Cap Special Strategic
Reserves Retirement Index Value Dividend Technology
Money Fund Portfolio Tier 3 Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value ofinvestments $ -- $ 4,400,901 $ 407 $ 11,691 $ 134,287 $ (5,583,390)
Dividends and interest 6,887,576 574,201 -- 2,526,678 142,815 5,315,030
------------- ------------- --------- ------------- ----------- ------------
Total investment income (loss) 6,887,576 4,975,102 407 2,538,369 277,139 (268,360)
Contributions and rollovers
to the Plan 15,605,293 5,834,138 5,682 2,291,796 195,976 4,315,946
------------- ------------- --------- ------------- ----------- ------------
Total additions 22,492,869 10,809,240 6,089 4,830,165 473,115 4,047,586
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 16,822,530 948,242 -- 545,195 81,798 1,504,179
Administrative expenses -- -- -- -- -- --
TRANSFERS AMONG FUNDS (15,391,117) 6,364,930 542,576 10,015,843 629,976 (3,867,550)
------------- ------------- --------- ------------- ----------- ------------
NET INCREASE (DECREASE) (9,720,778) 16,225,928 548,665 14,300,813 1,021,113 (1,324,143)
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year 135,398,770 15,762,697 -- 9,646,917 585,847 24,267,819
------------- ------------- --------- ------------- ----------- ------------
End of year $ 125,677,992 $ 31,988,625 $ 548,665 $ 23,947,730 $ 1,606,960 $ 22,943,676
------------- ------------- --------- ------------- ----------- ------------
------------- ------------- --------- ------------- ----------- ------------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch - 1997 Hotchkis & Wiley
-------------------- ------------------------------------------------------------
Utility World
Income Income Balance Income Global International Low Duration
Fund Fund Fund Fund Equity Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value ofinvestments $ 17,312 $ 13 (763) $ (2,022) $ (2,237) $(35,142) $ (317)
Dividends and interest 448 23 -- 3,010 1,388 14,556 587
--------- -------- -------- -------- -------- --------- ---------
Total investment income (loss) 17,760 36 (763) 988 (849) (20,586) 270
Contributions and rollovers
to the Plan 344 161 196 683 853 8,602 2,612
--------- -------- -------- -------- -------- --------- ---------
Total additions 18,104 197 (567) 1,671 4 (11,984) 2,882
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees -- -- -- -- -- -- --
Administrative expenses -- -- -- -- -- -- --
TRANSFERS AMONG FUNDS 324,930 1,819 27,259 19,769 38,730 937,782 40,107
--------- -------- -------- -------- -------- --------- ---------
NET INCREASE (DECREASE) 343,034 2,016 26,692 21,440 38,734 925,798 42,989
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year -- -- -- -- -- -- --
--------- -------- -------- -------- -------- --------- ---------
End of year $ 343,034 $ 2,016 $ 26,692 $ 21,440 $ 38,734 $ 925,798 $ 42,989
--------- -------- -------- -------- -------- --------- ---------
--------- -------- -------- -------- -------- --------- ---------
</TABLE>
(Continued)
10
<PAGE>
<TABLE>
<CAPTION>
Hotchkis & Wiley
----------------------------------------------------
Total
Mid-Cap Short Term Small Cap Return
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (4,835) $ (20) $ (178,110) $ 14
Dividends and interest 6,823 274 143,051 2,070
---------- --------- ------------ ---------
Total investment income (loss) 1,988 254 (35,059) 2,084
Contributions and rollovers to the Plan 2,216 1,250 20,984 200
---------- --------- ------------ ---------
Total additions 4,204 1,504 (14,075) 2,284
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees -- -- -- --
Administrative expenses -- -- -- --
TRANSFERS AMONG FUNDS 237,434 56,235 2,150,414 151,836
---------- --------- ------------ ---------
NET INCREASE (DECREASE) 241,678 57,739 2,136,339 154,120
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year -- -- -- --
---------- --------- ------------ ---------
End of year $ 241,678 $ 57,739 $ 2,136,339 $ 154,120
---------- --------- ------------ ---------
---------- --------- ------------ ---------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------
Cash
Management Employer
Account Contribution 1997
Money Fund Cash Receivable Total
<S> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ -- $ -- $ -- $ 359,533,245
Dividends and interest 1,036,857 -- -- 144,820,751
----------- ------------ ------------ ---------------
Total investment income (loss) 1,036,857 -- -- 504,353,996
Contributions and rollovers to the Plan 6,649,052 458,859 1,205,982 213,994,161
----------- ------------ ------------ ---------------
Total additions 7,685,909 458,859 1,205,982 718,348,157
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees -- 825,138 -- 110,890,129
Administrative expenses 82,349 30 -- 82,379
TRANSFERS AMONG FUNDS (16,017) (2,743,811) -- --
----------- ------------ ------------ ---------------
NET INCREASE (DECREASE) 7,587,543 (3,110,120) 1,205,982 607,375,649
Beginning of year 920,503 4,710,074 -- 1,676,062,384
----------- ------------ ------------ ---------------
End of year $ 8,508,046 $ 1,599,954 $ 1,205,982 $ 2,283,438,033
----------- ------------ ------------ ---------------
----------- ------------ ------------ ---------------
</TABLE>
(Concluded)
11
<PAGE>
<TABLE>
<CAPTION>
Merrill Lynch - 1996
---------------------------------------------------------------------------------
Corporate
GSIF U.S. Gov. Bond Fund--
Merrill Lynch Zero Coupon Basic Value Capital High Income
& Co., Inc.* Bond Series 3 Fund Fund Portfolio
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 111,849,742 $ 1,994,876 $ 24,318,584 $ 2,866,902 $ 773,064
Dividends and interest 4,422,361 -- 21,152,905 19,431,574 2,983,401
------------- ------------- ------------- ------------- -------------
Total investment income 116,272,103 1,994,876 45,471,489 22,298,476 3,756,465
Contributions and rollovers to the Plan 22,042,542 3,184,887 30,000,637 21,731,336 1,833,317
------------- ------------- ------------- ------------- -------------
Total additions 138,314,645 5,179,763 75,472,126 44,029,812 5,589,782
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 11,306,822 1,843,579 15,122,621 10,477,518 1,423,949
Administrative expenses -- -- -- -- --
TRANSFERS AMONG FUNDS (14,478,273) 15,043,856 (9,006,392) (14,846,829) 5,268,386
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) 112,529,550 18,380,040 51,343,113 18,705,465 9,434,219
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 189,744,619 37,611,016 263,094,477 180,342,221 27,738,526
------------- ------------- ------------- ------------- -------------
End of year $ 302,274,169 $ 55,991,056 $ 314,437,590 $ 199,047,686 $ 37,172,745
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch - 1996
----------------------------------------------------------------
Corporate Corporate
Bond Fund-- Bond Fund--
Intermediate Investment
Term Grade Equity Euro
Portfolio Portfolio Index Trust Fund
<S> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (283,963) $ (1,835,420) $ 8,442,594 $ 525,626
Dividends and interest 516,193 2,912,313 -- 2,331,523
------------- ------------- ------------- -------------
Total investment income 232,230 1,076,893 8,442,594 2,857,149
Contributions and rollovers to the Plan 166,622 5,231,999 6,897,190 1,500,411
------------- ------------- ------------- -------------
Total additions 398,852 6,308,892 15,339,784 4,357,560
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 461,146 2,846,773 2,481,868 558,028
Administrative expenses -- -- -- --
TRANSFERS AMONG FUNDS (117,575) 163,686 1,872,727 (361,664)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) (179,869) 3,625,805 14,730,643 3,437,868
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 7,892,874 42,125,258 32,995,352 11,818,806
------------- ------------- ------------- -------------
End of year $ 7,713,005 $ 45,751,063 $ 47,725,995 $ 15,256,674
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
(Continued)
12
<PAGE>
<TABLE>
<CAPTION>
Merrill Lynch - 1996
---------------------------------------------------------------------------------------
Global Global Global Global Global
Fund For Allocation Bond Convertible Holdings Resources
Tomorrow Fund Fund Fund Fund Trust
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (22,371) $ 6,619,104 $ 3,430 $ 16,948 $ 230,514 $ 416,577
Dividends and interest 110,446 17,550,458 60,489 44,038 292,123 89,288
------------ ------------ ------------ --------- ------------ ------------
Total investment income 88,075 24,169,562 63,919 60,986 522,637 505,865
Contributions and rollovers to the Plan 184,690 24,512,696 156,434 100,821 735,215 356,371
------------ ------------ ------------ --------- ------------ ------------
Total additions 272,765 48,682,258 220,353 161,807 1,257,852 862,236
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 18,042 7,560,812 235,041 8,046 147,973 84,636
Administrative expenses -- -- -- -- -- --
TRANSFERS AMONG FUNDS 52,764 4,447,183 (189,206) 51,322 90,695 (465,765)
------------ ------------ ------------ --------- ------------ ------------
NET INCREASE (DECREASE) 307,487 45,568,629 (203,894) 205,083 1,200,574 311,835
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 606,001 137,683,501 1,104,010 623,555 3,585,418 3,405,812
------------ ------------ ------------ --------- ------------ ------------
End of year $ 913,488 $183,252,130 $ 900,116 $ 828,638 $ 4,785,992 $ 3,717,647
------------ ------------ ------------ --------- ------------ ------------
------------ ------------ ------------ --------- ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch - 1996
---------------------------------------------------------------------------
Global
Utility Growth Healthcare Pacific Phoenix
Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 154,293 $ 19,061,382 $ (94,843) $ (1,571,134) $ 232,259
Dividends and interest 166,133 10,283,368 796,358 4,091,428 1,270,404
------------ ------------ ------------ ------------ ------------
Total investment income 320,426 29,344,750 701,515 2,520,294 1,502,663
Contributions and rollovers to the Plan 360,181 21,901,444 1,183,900 7,701,810 2,317,239
------------ ------------ ------------ ------------ ------------
Total additions 680,607 51,246,194 1,885,415 10,222,104 3,819,902
DEDUCTIONS:
Disbursements of benefits to
beneficiaries or employees 72,565 6,194,264 188,914 1,719,764 571,307
Administrative expenses -- -- -- -- --
TRANSFERS AMONG FUNDS (275,752) 14,416,174 137,711 5,632,176 (1,739,781)
------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) 332,290 59,468,104 1,834,212 14,134,516 1,508,814
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 2,329,270 80,126,691 5,253,280 35,308,179 9,530,940
------------ ------------ ------------ ------------ ------------
End of year $ 2,661,560 $139,594,795 $ 7,087,492 $ 49,442,695 $ 11,039,754
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
</TABLE>
(Continued)
13
<PAGE>
<TABLE>
<CAPTION>
Merrill Lynch - 1996
----------------------------------------------------------------------------
Retirement Retirement Select-ten Special Strategic
Preservation Reserves Retirement Value Dividend
Trust Money Fund Portfolio Fund Fund
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ -- $ -- $ 1,991,087 $ 146,059 $ 17,362
Dividends and interest 2,853,254 6,206,041 102,761 1,478,928 65,222
-------------- -------------- -------------- ------------ ----------
Total investment income 2,853,254 6,206,041 2,093,848 1,624,987 82,584
Contributions and rollovers to the Plan 5,801,394 17,843,979 2,635,987 1,293,439 120,895
-------------- -------------- -------------- ------------ ----------
Total additions 8,654,648 24,050,020 4,729,835 2,918,426 203,479
DEDUCTIONS:
Disbursements of benefits to beneficiaries
or employees 5,485,707 16,315,158 239,342 166,127 31,774
Administrative expenses -- -- -- -- --
TRANSFERS AMONG FUNDS 8,243,193 6,142,097 11,272,204 60,419 17,010
-------------- -------------- -------------- ------------ ----------
NET INCREASE (DECREASE) 11,412,134 13,876,959 15,762,697 2,812,718 188,715
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 43,763,333 121,521,811 -- 6,834,199 397,132
-------------- -------------- -------------- ------------ ----------
End of year $ 55,175,467 $ 135,398,770 $ 15,762,697 $ 9,646,917 $ 585,847
-------------- -------------- -------------- ------------ ----------
-------------- -------------- -------------- ------------ ----------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch - 1996
-----------------------------------------------------------------------------------
Cash
Management Employer
Technology Account Contribution 1996
Fund Money Fund Cash Receivable Total
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (452,227) $ -- $ -- $ -- $ 175,400,445
Dividends and interest 1,983,803 701,343 -- -- 101,896,155
-------------- ------------ -------------- ----------- ----------------
Total investment income 1,531,576 701,343 -- -- 277,296,600
Contributions and rollovers to the Plan 5,658,008 -- 4,710,074 -- 190,163,518
-------------- ------------ -------------- ------------ ----------------
Total additions 7,189,584 701,343 4,710,074 -- 467,460,118
DEDUCTIONS:
Disbursements of benefits to beneficiaries
or employees 1,403,400 -- -- -- 86,965,176
Administrative expenses -- 651,986 -- -- 651,986
TRANSFERS AMONG FUNDS (2,662,741) (190,642) (27,563,560) (1,013,423) --
-------------- ------------ -------------- ------------ ----------------
NET INCREASE (DECREASE) 3,123,443 (141,285) (22,853,486) (1,013,423) 379,842,956
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 21,144,376 1,061,788 27,563,560 1,013,423 1,296,219,428
End of year $ 24,267,819 $ 920,503 $ 4,710,074 $ -- $ 1,676,062,384
-------------- ------------ -------------- ------------ ----------------
-------------- ------------ -------------- ------------ ----------------
</TABLE>
* Party-in-interest as defined by ERISA.
(Concluded)
14
<PAGE>
THE MERRILL LYNCH & CO., INC.
401(k) SAVINGS & INVESTMENT PLAN
SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of Market
Description Shares Cost Value
<S> <C> <C> <C>
COMMON STOCK:
Merrill Lynch & Co., Inc.* $ 8,338,810 $228,120,379 $608,207,808
------------ ------------
FUNDS AND TRUSTS:
GSIF U.S. Gov. Zero Coupon Bond Series 3 - Various Trusts 1,010,733 49,595,906 61,904,548
Merrill Lynch:
--------------
Adjustable Rate Specialties 12 112 112
Aggressive Bond Index Tier 3 7,954 80,751 81,084
Americas Income Fund 3,339 35,175 32,059
Basic Value Fund 11,183,924 286,206,353 414,699,914
Capital Fund 6,602,811 190,367,385 227,863,002
Cash Management Account Money Fund 8,508,046 8,508,046 8,508,046
Convertible Fund 700 8,958 8,928
Corporate Bond Fund - High Income Portfolio 5,222,121 40,896,240 42,299,181
Corporate Bond Fund - Intermediate Term Portfolio 735,313 8,318,519 8,500,222
Corporate Bond Fund - Investment Grade Portfolio 4,150,246 47,435,647 47,644,820
Developing Capital Markets Fund 35,253 465,001 451,943
Dragon Fund 169,957 1,739,022 1,497,323
Emerging Tigers Fund 143,270 1,243,959 1,136,130
Equity Index Trust 1,097,366 43,439,873 72,890,320
Euro Fund 1,337,865 20,688,682 20,884,073
Federal Securities Trust 5,736 55,838 55,922
Fund for Tomorrow 105,998 1,791,160 1,658,870
Fundamental Growth Fund 154,809 2,672,662 2,466,112
Global Allocation Fund 14,395,601 198,989,378 203,553,804
Global Bond Fund 113,370 1,054,820 1,033,931
Global Convertible Fund 93,393 1,013,829 961,009
Global Holdings Fund 360,322 5,023,537 4,752,645
Global Resources Trust 197,188 3,319,007 2,865,143
Global Small Cap Fund 4,834 45,805 41,134
Global Utility Fund 194,391 2,776,196 3,230,785
Global Value Fund 184,677 2,229,935 2,217,973
Growth Fund 7,054,662 168,416,177 202,116,061
Healthcare Fund 1,830,515 9,079,145 9,353,932
International Equity Fund 6,813 72,996 59,344
International Index Tier 3 6,165 61,331 61,517
Latin America Fund 38,818 581,598 614,877
Pacific Fund 2,517,899 54,346,684 42,728,750
Phoenix Fund 905,063 11,862,631 11,349,489
Retirement Preservation Trust 64,197,059 64,197,059 64,197,059
Retirement Reserves Money Fund 125,677,992 125,678,011 125,677,992
Select Ten Retirement Portfolio 27,505,750 28,907,094 31,988,625
Small Cap Index Tier 3 55,326 547,825 548,665
Special Value Fund 1,226,202 23,919,551 23,947,730
Strategic Dividend Fund 109,541 1,484,361 1,606,960
Technology Fund 5,898,117 30,076,158 22,943,676
Utility Income Fund 30,573 325,722 343,034
World Income Fund 228 2,003 2,016
</TABLE>
(Continued)
<PAGE>
THE MERRILL LYNCH & CO., INC.
401(k) SAVINGS & INVESTMENT PLAN
SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of Market
Description Shares Cost Value
<S> <C> <C> <C>
FUNDS AND TRUSTS:
Hotchkis & Wiley:
Balanced Fund 1,384 $ 27,296 $ 26,692
Equity Income Fund 1,033 23,383 21,440
Global Equity Fund 3,779 40,971 38,734
International Fund 40,838 960,131 925,798
Low Duration Fund 4,219 43,306 42,989
Mid-Cap Fund 18,925 247,229 241,678
Short-Term Fund 5,694 57,759 57,739
Small Cap Fund 85,728 2,312,574 2,136,339
Total Return Fund 11,579 154,106 154,120
-------------- --------------
Total Funds and Trusts $1,441,426,897 $1,672,424,289
-------------- --------------
TOTAL INVESTMENTS $1,669,547,276 $2,280,632,097
-------------- --------------
-------------- --------------
</TABLE>
* Party-in-interest as defined by ERISA.
(Concluded)
<PAGE>
THE MERRILL LYNCH & CO., INC.
401(k) SAVINGS & INVESTMENT PLAN
SUPPLEMENTAL SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cost of
Assets
Purchases Sales Sold Gain
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCK:
Merrill Lynch & Co., Inc.* $195,072,493 $ (826) $124,748,243 $ (882) $ 89,202,602 $ 35,545,641
FUNDS:
Merrill Lynch:
Basic Value Fund 80,584,259 (711) 35,119,569 (896) 25,262,083 9,857,486
Global Allocation Fund 72,203,612 (735) 42,717,285 (890) 37,907,586 4,809,699
Growth Fund 85,524,597 (866) 32,054,351 (861) 26,193,606 5,860,745
Pacific Fund 45,604,604 (460) 41,753,509 (582) 41,554,235 199,274
Retirement Preservation
Trust 110,732,513 (583) 101,408,912 (497) 101,408,912 --
Retirement Reserves
Money Fund 127,073,592 (607) 136,425,284 (654) 136,425,284 --
</TABLE>
NOTES:
Reportable transactions, required to be reported herein, are defined in
Section 2520.103-6, Chapter XXV Title 29 (Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974).
The figures in parentheses represent the number of purchases or sales
included in the reported dollar amounts.
* Party-in-interest as defined by ERISA.
<PAGE>
Exhibit 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
Merrill Lynch & Co., Inc.
We hereby consent to the use in this Form 11-K annual Report of our opinion
dated June 8, 1998 (relating to the financial statements of the Merrill Lynch &
Co., Inc. 401(k) Savings & Investment Plan) appearing in Item (a) of such Form
11-K.
/s/ Deloitte & Touche LLP
New York, New York
June 25, 1998
