COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
FINANCIAL STATEMENTS
Years Ended September 30, 1997 and 1996
<PAGE>
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITOR'S REPORT 1
FINANCIAL STATEMENTS
Statements of Net Assets Available for
Benefits 2
Statements of Changes in Net Assets
Available for Benefits 3
Statements of Changes in Net Assets
Available for Benefits with Fund
Information 4- 5
Notes to Financial Statements 6-11
INDEPENDENT AUDITOR'S REPORT ON
SUPPLEMENTARY INFORMATION 12
SUPPLEMENTARY INFORMATION
Schedule of Assets Held for Investment
Purposes - September 30, 1997 13-15
Schedule of Assets Held for Investment
Purposes - September 30, 1996 16-18
Schedule of Assets Held for Investment
Purposes Which Were Both Acquired and
Disposed Within the Plan Year - Year
Ended September 30, 1997 19
Schedule of Assets Held for Investment
Purposes which were Both Acquired and
Disposed Within the Plan Year - Year
Ended September 30, 1996 20
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Trustees of the
Comdisco, Inc. Employees' Profit Sharing Plan
We have audited the accompanying statements of net assets available for benefits
of Comdisco, Inc. Employees' Profit Sharing Plan as of September 30, 1997 and
1996, and the related statements of changes in net assets available for benefits
for the years then ended. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits 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 Plan as of
September 30, 1997 and 1996, and the changes in net assets available for
benefits for the years then ended in conformity with generally accepted
accounting principles.
December 22, 1997
Deerfield, Illinois
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
September 30, 1997 and 1996
<TABLE>
<CAPTION>
SEPTEMBER 30, 1997 SEPTEMBER 30, 1996
---------------------------------------- -----------------------------------------
Non Non
Participant Participant Participant Participant
Directed Directed Total Directed Directed Total
------------ ----------- ----------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments
Money market funds ................. $ 767,706 $ 184,591 $ 952,297 $ 442,444 $ 230,277 $ 672,721
Preferred stock .................... -- -- -- -- 167,500 167,500
Common stock ....................... -- 11,323,197 11,323,197 -- 8,430,396 8,430,396
Employer securities ................ -- 14,513,282 14,513,282 -- 8,547,029 8,547,029
Registered investment companies
Kemper growth ..................... 6,080,240 -- 6,080,240 4,785,441 -- 4,785,441
Kemper total return ............... 5,836,097 -- 5,836,097 4,811,046 -- 4,811,046
T. Rowe Price capital
appreciation ..................... 5,557,026 -- 5,557,026 4,042,171 -- 4,042,171
T. Rowe Price equity income ....... 8,118,239 -- 8,118,239 4,714,976 -- 4,714,976
T. Rowe Price equity index ........ 5,465,641 -- 5,465,641 2,532,334 -- 2,532,334
T. Rowe Price international
stock ............................ 5,506,091 -- 5,506,091 5,390,414 -- 5,390,414
Other ............................. 10,923,040 8,647,516 19,570,556 8,374,674 6,700,428 15,075,102
Hartford Life Insurance
Companies Investment -
Contract #GA-3078, matures
12/31/97 .......................... 14,966,882 1,520,013 16,486,895 15,620,414 2,266,614 17,887,028
Loans to participants .............. -- 212,576 212,576 -- 189,116 189,116
------------ ------------ ------------ ------------ ------------ ------------
Total Investments ................ 63,220,962 36,401,175 99,622,137 50,713,914 26,531,360 77,245,274
------------ ------------ ------------ ------------ ------------ ------------
Receivables
Employer's contributions ........... -- 3,539,664 3,539,664 -- 2,346,425 2,346,425
Due from brokers ................... -- 593,454 593,454 -- 2,337 2,337
------------ ------------ ------------ ------------ ------------ ------------
Total Receivables ................ -- 4,133,118 4,133,118 -- 2,348,762 2,348,762
------------ ------------ ------------ ------------ ------------ ------------
Cash ..................................... -- 18,957 18,957 -- 24,626 24,626
------------ ------------ ------------ ------------ ------------ ------------
Total Assets ..................... 63,220,962 40,553,250 103,774,212 50,713,914 28,904,748 79,618,662
------------ ------------ ------------ ------------ ------------ ------------
LIABILITIES
Due to brokers ..................... -- 3,467 3,467 1,837 1,837 3,674
Accounts payable ................... -- 74,956 74,956 750 44,855 45,605
Due to related plan ................ -- 124 124 -- 1,707 1,707
------------ ------------ ------------ ------------ ------------ ------------
Total Liabilities ................ -- 78,547 78,547 2,587 48,399 50,986
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS ........ $ 63,220,962 $ 40,474,703 $103,695,665 $ 50,711,327 $ 28,856,349 $ 79,567,676
============ ============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
-2-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Years Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1997 YEAR ENDED SEPTEMBER 30, 1996
---------------------------------------- ----------------------------------------
Non Non
Participant Participant Participant Participant
Directed Directed Total Directed Directed Total
------------ ----------- ----------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment Income
Net appreciation in fair value
of investments .................... $ 4,837,739 $ 10,984,108 $ 15,821,847 $ 2,201,310 $ 4,247,978 $ 6,449,288
Dividends .......................... 3,989,705 188,216 4,177,921 2,073,212 157,661 2,230,873
Interest ........................... 917,664 147,869 1,065,533 1,056,566 142,898 1,199,464
Miscellaneous ...................... -- 411 411 -- 4,335 4,335
------------ ------------ ------------ ------------ ------------ ------------
9,745,108 11,320,604 21,065,712 5,331,088 4,552,872 9,883,960
Less: Investment expenses .......... -- 157,428 157,428 -- 137,232 137,232
------------ ------------ ------------ ------------ ------------ ------------
9,745,108 11,163,176 20,908,284 5,331,088 4,415,640 9,746,728
------------ ------------ ------------ ------------ ------------ ------------
Contributions
Employer ........................... 712,426 3,539,664 4,252,090 654,443 2,346,425 3,000,868
Participants ....................... 8,114,081 -- 8,114,081 6,119,585 -- 6,119,585
------------ ------------ ------------ ------------ ------------ ------------
8,826,507 3,539,664 12,366,171 6,774,028 2,346,425 9,120,453
------------ ------------ ------------ ------------ ------------ ------------
Total additions .................. 18,571,615 14,702,840 33,274,455 12,105,116 6,762,065 18,867,181
------------ ------------ ------------ ------------ ------------ ------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Miscellaneous ............................ -- -- -- 565 -- 565
Benefits paid to participants ............ 6,061,980 3,084,486 9,146,466 3,555,442 1,577,211 5,132,653
------------ ------------ ------------ ------------ ------------ ------------
Total deductions ................. 6,061,980 3,084,486 9,146,466 3,556,007 1,577,211 5,133,218
------------ ------------ ------------ ------------ ------------ ------------
Net increase ....................... 12,509,635 11,618,354 24,127,989 8,549,109 5,184,854 13,733,963
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year .................. 50,711,327 28,856,349 79,567,676 42,162,218 23,671,495 65,833,713
------------ ------------ ------------ ------------ ------------ ------------
End of year ........................ $ 63,220,962 $ 40,474,703 $103,695,665 $ 50,711,327 $ 28,856,349 $ 79,567,676
============ ============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
-3-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
Years Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------------------------------------
T. Rowe Price Hartford
Kemper Capital T. Rowe Price T. Rowe Price T. Rowe Price Other Kemper, Life
Kemper Total Appreciation Equity Income Equity Index International T. Rowe Price Insurance
Growth Fund Return Fund Fund Fund Fund Stock Fund Mutual Funds Contract
------------ ----------- ------------- ------------- ------------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets available for
benefits at September 30,
1995 ......... $2,919,601 $4,796,776 $2,856,075 $2,575,516 $ 856,893 $3,808,091 $6,744,940 $17,604,326
Additions:
Investment income - net ... 701,225 634,457 452,073 653,874 312,885 570,162 949,846 1,056,566
Contributions and transfers
in ....... 1,312,224 527,317 936,907 1,557,100 1,312,774 1,355,352 2,142,942 1,679,213
---------- ---------- ---------- ---------- --------- ---------- ---------- -----------
Total additions ........... 2,013,449 1,161,774 1,388,980 2,210,974 1,625,659 1,925,514 3,092,788 2,735,779
Deductions:
Benefits and transfers out. 335,885 621,354 135,833 192,135 116,663 281,097 1,203,150 4,719,691
---------- ---------- ---------- ---------- --------- ---------- ---------- -----------
Total deductions ........... 335,885 621,354 135,833 192,135 116,663 281,097 1,203,150 4,719,691
Interfund transfers - net .. 188,276 (526,150) (67,051) 120,621 166,445 (62,094) 179,953 -
---------- ---------- ---------- ---------- --------- ---------- ---------- -----------
Net increase (decrease) .... 1,865,840 14,270 1,186,096 2,139,460 1,675,441 1,582,323 2,069,591 (1,983,912)
---------- ---------- ---------- ---------- --------- ---------- ---------- -----------
Net assets available for
benefits at September 30,
1996 ...................... 4,785,441 4,811,046 4,042,171 4,714,976 2,532,334 5,390,414 8,814,531 15,620,414
Additions:
Investment income - net ... 1,023,843 1,177,883 910,158 1,906,002 1,262,814 755,804 1,790,940 917,664
Contributions and transfers
in ........................ 1,234,225 306,975 1,112,832 1,965,956 1,763,813 1,162,314 2,873,291 1,444,003
---------- ---------- ---------- ---------- --------- ---------- ---------- -----------
Total additions ........... 2,258,068 1,484,858 2,022,990 3,871,958 3,026,627 1,918,118 4,664,231 2,361,667
Deductions:
Benefits and transfers
out ....................... 573,381 353,031 244,697 935,073 454,586 1,264,902 2,258,013 3,015,199
---------- ---------- ---------- ---------- --------- ---------- ---------- -----------
Total deductions ........... 573,381 353,031 244,697 935,073 454,586 1,264,902 2,258,013 3,015,199
Interfund transfers - net .. (389,888) (106,776) (263,438) 466,378 361,266 (537,539) 469,997 -
---------- ---------- ---------- ---------- --------- ---------- ---------- -----------
Net increase (decrease) .... 1,294,799 1,025,051 1,514,855 3,403,263 2,933,307 115,677 2,876,215 (653,532)
---------- ---------- ---------- ---------- --------- ---------- ---------- -----------
Net assets available for
benefits at September 30,
1997 ................. $6,080,240 $5,836,097 $5,557,026 $8,118,239 $5,465,641 $5,506,091 $11,690,746 $14,966,882
========== ========== ========== ========== ========== ========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-4-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
Years Ended September 30, 1997 and 1996
Non-Participant
Directed Total
--------------- -------------
Net assets available for
benefits at September 30, 1995 $ 23,671,495 $ 65,833,713
Additions:
Investment income - net 4,415,640 9,746,728
Contributions and transfers in 2,346,425 13,170,254
--------------- -------------
Total additions 6,762,065 22,916,982
Deductions:
Benefits and transfers out 1,577,211 9,183,019
--------------- -------------
Total deductions 1,577,211 9,183,019
Interfund transfers - net - -
--------------- -------------
Net increase (decrease) 5,184,854 13,733,963
--------------- -------------
Net assets available for
benefits at September 30, 1996 28,856,349 79,567,676
Additions:
Investment income - net 11,163,176 20,908,284
Contributions and transfers in 3,539,664 15,403,073
--------------- -------------
Total additions 14,702,840 36,311,357
Deductions:
Benefits and transfers out 3,084,486 12,183,368
--------------- -------------
Total deductions 3,084,486 12,183,368
Interfund transfers - net - -
--------------- -------------
Net increase (decrease) 11,618,354 24,127,989
--------------- -------------
Net assets available for
benefits at September 30, 1997 $ 40,474,703 $103,695,665
=============== =============
The accompanying notes are an integral part of the financial statements.
-5-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1997 and 1996
A. Description of Plan
The following description of the Comdisco, Inc. Employees' Profit Sharing Plan
provides only general information. Participants should refer to the Plan
agreement for a more complete description of the Plan's provisions.
1. General. The Plan is a defined contribution plan covering all
full-time employees of the Company who have six months of employment
and 500 or more hours of service and who are also at least age
twenty-one. It is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
2. Contributions. Each year, the Company contributes to the Plan an
amount as determined by the board of directors. Additional 401(k)
matching amounts may be contributed at the option of the Company's
board of directors. Participants may contribute up to ten percent of
their compensation on a before-tax basis subject to certain
limitations. Participants may also contribute amounts representing
distributions from other qualified plans.
3. Participant Accounts. Each participant's account is credited with the
participant's contribution and an allocation of (a) the Company's
contribution, (b) Plan earnings, and (c) forfeitures of terminated
participants' nonvested accounts. Allocations are based on participant
earnings or account balances, as defined. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's account.
4. Vesting. Participants are immediately vested in their voluntary
contributions plus actual earnings thereon. Vesting in the remainder
of their accounts is based on years of continuous service. A
participant is 100 percent vested after five years of credited
service.
-6-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1997 and 1996
A. Description of Plan (continued)
5. Investment Options. Upon enrollment in the Plan, a participant may
direct contributions to any of the following investment options.
Hartford Life Insurance Companies
Kemper Mutual Funds
Blue Chip - A
Growth - A
High Yield - A
Income Capitalization - A
International - A
Money Market
Small Capitalization Equity - A
Technology - A
Total Return - A
U.S. Government - A
T. Rowe Price Mutual Funds
Capital Appreciation
Equity Income
Equity Index
International Stock
New Income
U.S. Treasury Money Market
Participants may change their investment options semi-annually.
6. Participant Notes Receivable. Participants may borrow from their fund
accounts a minimum of $1,000 up to a maximum equal to the lesser of
$50,000 or 50 percent of their vested account balance. The loans are
secured by the balances in the participants' accounts and bear
interest at the prime rates in effect on the days the loans are
approved, plus 2 percent. Principal and interest are repaid ratably
through payroll deductions over a reasonable period of time (not to
extend beyond five years).
7. Payment of Benefits. On termination of service, the benefits to which
a participant is entitled are paid in accordance with the Plan
agreement.
-7-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1997 and 1996
A. Description of Plan (continued)
8. Forfeited Accounts. At September 30, 1997 and 1996, there were no
forfeited nonvested accounts. During the years ended September 30,
1997 and 1996, forfeited nonvested accounts totaling $129,290 and
$77,044, respectively, were applied to the remaining participants'
accounts as additional employer contributions.
B. Summary of Accounting Policies
Basis of Accounting
The financial statements of the Plan are prepared under the accrual method
of accounting.
Investments
Investments are recorded at fair value, determined by quoted market prices
when applicable except for its investment contract which is valued at
contract value.
Realized Gains and Losses
Realized gains and losses are calculated using investment costs for
financial statement purposes, in accordance with generally accepted
accounting principles. For Form 5500 purposes, however, realized gains and
losses are calculated using the values of the investments at the beginning
of the Plan's year or at the times of purchase during the Plan's year.
Benefits
Benefits are recorded when paid for financial statement purposes, in
accordance with generally accepted accounting principles for employee
benefit plans. For Form 5500 purposes, however, benefits are accrued in
order to comply with the requirements of the Department of Labor.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the plan administrator to make
estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results may differ from those estimates.
-8-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1997 and 1996
C. Investments
During the years ended September 30, 1997 and 1996, the Plan's investments
(including investments bought, sold, or held during the year) appreciated
or depreciated in value as follows:
Net Change in Fair Value
Year Ended Year Ended
September 30, 1997 September 30, 1996
------------------ ------------------
Preferred stock $ (49,262) $ 37,500
Common stock 3,120,015 647,714
Employer securities 5,966,267 2,732,281
Registered investment companies 6,784,827 3,031,793
------------ ------------
Total net change in
fair value $ 15,821,847 $ 6,449,288
============ ============
D. Investment Contract with Insurance Company
The plan entered into an investment contract with Hartford Insurance
Companies (Hartford). Hartford maintains the contributions in a pooled
account. The account is credited with earnings on the underlying
investments and charged for Plan withdrawals and administrative expenses
charged by Hartford. The contract is included in the financial statements
at contract value, (which represents contributions made under the contract,
plus earnings, less withdrawals and administrative expenses), because it is
fully benefit responsive. There are no reserves against contract value for
credit risk of the contract issuer or otherwise. The fair value of the
investment contract at September 30, 1997 and 1996 was $16,486,895 and
$17,887,028, respectively. The average yield and crediting interest rates
were 6.4980% for 1997 and 6.4654% for 1996. The crediting interest rate is
based on an agreed-upon formula with the issuer, but cannot be less than
5.75% for 1997 and 6.00% for 1996. The interest rates are reset annually.
E. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500:
-9-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1997 and 1996
E. Reconciliation of Financial Statements to Form 5500 (continued)
September 30, 1997 September 30, 1996
------------------ ------------------
Net assets available
for benefits per
financial statements $ 103,695,665 $ 79,567,676
------------- -------------
Amounts allocated to
withdrawing
participants (7,998,760) (5,431,228)
------------- -------------
Net assets available
for benefits per the
Form 5500 $ 95,696,905 $ 74,136,448
------------- -------------
As previously stated in the summary of accounting policies, benefits are
recorded when paid for financial statement purposes but are accrued for
Form 5500 purposes. The following is a reconciliation of benefits between
Forms 5500 and the statements of changes in net assets available for
benefits.
Year Ended Year Ended
September 30, 1997 September 30, 1996
------------------ ------------------
Benefits per line
32e(1) of
Form 5500 $ 11,713,998 $ 8,390,073
Plus beginning
amount allocated
to withdrawing
participants 5,431,228 2,173,808
Less ending amount
allocated to
withdrawing
participants (7,998,760) (5,431,228)
------------- --------------
Benefits paid per
statements of changes
in net assets available
for benefits $ 9,146,466 $ 5,132,653
============ =============
F. Administrative Expenses
Comdisco, Inc. pays for the significant administrative costs of the Plan
outside of the investment expenses.
-10-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1997 and 1996
G. Plan Termination Although it has not expressed any intent to do so, the
Company has the right under the Plan to discontinue its contributions at
any time and to terminate the Plan subject to the provisions of ERISA. In
the event of plan termination, participants will become 100 percent vested
in their accounts.
H. Tax Status The trust established under the Plan to hold the Plan's assets
is qualified pursuant to the appropriate section of the Internal Revenue
Code, and, accordingly, the trust's net investment income is exempt from
income taxes. The Plan has obtained a favorable tax determination letter
from the Internal Revenue Service and the Plan sponsor believes that the
Plan continues to qualify and to operate as designed.
-11-
<PAGE>
INDEPENDENT AUDITOR'S REPORT ON
SUPPLEMENTARY INFORMATION
To the Trustees of the
Comdisco, Inc. Employees' Profit Sharing Plan
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 as of September,30, 1997 and 1996, and assets held for
investment purposes which were both acquired and disposed within the plan years
ended September 30, 1997 and 1996, 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 supplemental schedules 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.
December 22, 1997
Deerfield, Illinois
<PAGE>
SUPPLEMENTARY INFORMATION
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1997
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Current
Lessor, or Similar Party Par, or Maturity Value Cost Value
- ---------------------------- ----------------------- ----------- -----------
Money Market Funds
-----------------------
Northern Trust Benchmark Short-term investment,
Diversified Asset Portfolio variable rate $ 184,591 $ 184,591
Kemper Money Short-term investment,
variable rate 548,234 548,234
T. Rowe Price U.S. Short-term investment,
Treasury Money variable rate 219,472 219,472
----------- -----------
$ 952,297 $ 952,297
=========== ===========
Common Stock
Ace Limited 3,800 Shares $ 214,722 $ 357,200
Allmerica Financial
Corporation 5,400 Shares 163,189 237,262
American International
Group 2,925 Shares 136,415 301,823
Analog Devices, Inc. 8,800 Shares 210,386 298,100
Arden Realty Group, Inc. 7,500 Shares 160,435 235,312
Beacon Properties Corporation 6,000 Shares 119,428 274,875
Becton, Dickinson & Company 6,200 Shares 274,467 296,825
Boeing Company 4,400 Shares 178,343 239,525
Boston Properties, Inc. 8,400 Shares 210,000 275,625
Burlington Resources, Inc. 4,700 Shares 213,974 241,169
CUC International, Inc. 10,300 Shares 246,700 319,300
Cali Realty Corporation 7,000 Shares 161,420 291,375
Cardinal Health, Inc. 3,600 Shares 172,944 255,600
Centocor 6,000 Shares 193,625 285,375
CVS Corporation 4,500 Shares 202,060 255,937
EMC Corporation 6,900 Shares 204,503 402,787
Eli Lilly & Company 1,500 Shares 155,311 181,500
Ericsson L.M. Telephone
Company 5,400 Shares 160,441 258,862
Essex International, Inc. 4,600 Shares 175,244 177,100
Gartner Group, Inc. 4,300 Shares 120,792 129,000
General Cable Corporation 9,000 Shares 220,122 319,500
General Electric Company 3,000 Shares 130,639 204,188
Golden State Bancorp, Inc. 10,000 Shares 265,437 298,750
Halliburton Company 8,000 Shraes 146,280 416,000
See independent auditor's report on supplementary information.
-13-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1997
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Current
Lessor, or Similar Party Par, or Maturity Value Cost Value
- ---------------------------- ----------------------- ----------- -----------
Common Stock (continued)
Healthsouth Corporation 13,400 Shares $ 334,479 $ 357,613
J.C. Penney Company, Inc. 4,000 Shares 206,192 233,000
Keane, Inc. 9,800 Shares 164,929 311,150
Knightsbridge Tank, Ltd. 10,000 Shares 225,576 283,125
Medtronic, Inc. 6,000 Shares 113,282 282,750
Merck & Company, Inc. 2,000 Shares 168,120 199,875
Microchip Technology, Inc. 3,800 Shares 114,891 171,593
NGC Corporation 9,000 Shares 131,040 159,750
Nokia Corporation 4,000 Shares 179,093 375,250
Pennzoil Company 3,400 Shares 185,504 270,938
Robert Mondavi Corporation 7,000 Shares 285,090 383,250
Seacor Smit, Inc. 3,800 Shares 251,555 235,600
Service Corporation
International 7,000 Shares 149,210 224,000
Teradyne, Inc. 4,800 Shares 186,089 258,300
360 Communications Company 12,100 Shares 223,343 252,588
Tyco International, Ltd. 3,600 Shares 181,566 295,425
Vertex Pharmaceuticals, Inc. 5,500 Shares 203,500 207,625
Wesley Jessen Visioncare 9,500 Shares 241,045 268,375
----------- -----------
$ 7,981,381 $11,323,197
=========== ===========
See independent auditor's report on supplementary information.
-14-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1997
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Current
Lessor, or Similar Party Par, or Maturity Value Cost Value
- ---------------------------- ----------------------- ----------- -----------
Employer Securities
-----------------------
Comdisco, Inc. 444,001 Shares common
stock $ 1,332,709 $14,513,282
=========== ===========
Registered Investment
Companies
---------------------
Frank Russell Trust Company:
Fixed Income I Fund 168,067.52 Shares $ 2,056,498 $ 2,521,181
Equity I Fund 137,995.817 Shares 1,787,184 3,929,017
Equity II Fund 33,511.014 Shares 455,287 897,090
International Fund 61,149.786 Shares 1,009,535 1,300,228
Kemper Service Company 1,945,774.67 Shares 9,637,334 21,532,632
various Kemper "A"
funds
T. Rowe Price 1,274,599.6993 Shares
of various T. Rowe
Price funds 20,075,521 25,953,742
---------- -----------
$35,021,359 $56,133,890
=========== ===========
Life Insurance
Companies Investments
Hartford Life Insurance Co. Investment contract
with isnurance
company $16,486,895 $16,486,895
=========== ===========
Loans to Participants
Participant Loans 8% - 12%, various
maturities $ 212,576 $ 212,576
=========== ===========
Total Investments $61,987,217 $99,622,137
=========== ===========
See independent auditor's report on supplementary information.
-15-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1996
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Current
Lessor, or Similar Party Par, or Maturity Value Cost Value
- ---------------------------- ----------------------- ----------- -----------
Money Market Funds
Northern Trust Benchmark Short-term investment,
Diversified Asset Portfolio variable rate $ 230,277 $ 230,277
Kemper Money Short-term investment,
variable rate 297,150 297,150
T. Rowe Price U.S. Short-term investment,
Treasury Money variable rate 145,294 145,294
----------- -----------
$ 672,721 $ 672,721
=========== ===========
Preferred Stock
American Express 6.25% 2,500 Shares $ 118,237 $ 167,500
=========== ===========
Common Stock
Albertsons, Inc. 4,400 Shares $ 166,650 $ 185,350
Allmerica Financial
Corporation 6,100 Shares 162,135 198,250
Alpha Industries, Inc. 13,000 Shares 164,006 99,125
American International Group 1,950 Shares 136,416 196,462
Amgen, Inc. 2,700 Shares 150,922 170,437
Apria Healthcare Group 5,600 Shares 154,925 105,000
C.R. Bard, Inc. 6,900 Shares 247,139 214,762
Beacon Properties Corporation 6,000 Shares 120,420 174,000
Boeing Company 2,200 Shares 178,343 207,900
Bristol Hotel Company 6,900 Shares 178,441 183,712
Burlington Resources, Inc. 3,900 Shares 173,172 173,062
Cali Realty Corporation 7,000 Shares 161,420 189,875
Cardinal Health, Inc. 2,400 Shares 172,944 198,300
Ceridian Corporation 5,000 Shares 218,068 250,000
Cisco Systems, Inc. 3,000 Shares 162,563 186,186
Computer Sciences Corporation 2,100 Shares 103,047 161,437
Cooper Cameron Corporation 5,000 Shares 180,005 286,875
Danaher Corporation 5,000 Shares 141,692 206,875
DSP Communciations, Inc. 2,700 Shares 138,078 150,862
First Brands Corporation 7,200 Shares 154,015 188,100
Fluor Corporation 2,600 Shares 134,732 159,900
General Electric Company 2,000 Shares 174,185 182,000
Genesis Health Ventures 7,600 Shares 169,556 213,750
See independent auditor's report on supplementary information.
-16-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1996
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Current
Lessor, or Similar Party Par, or Maturity Value Cost Value
- ---------------------------- ----------------------- ----------- -----------
Common Stock (continued)
Halliburton Company 4,200 Shares $ 153,594 $ 216,825
Healthcare Compare Corporation 3,500 Shares 171,588 165,812
Lin TV Corporation 5,900 Shares 203,550 241,900
Medtronic, Inc. 4,000 Shares 151,042 256,500
Melville Corporation 2,500 Shares 113,190 110,312
Netscape Communications 3,400 Shares 154,307 157,675
NGC Corporation 9,000 Shares 131,040 140,625
Nokia Corporation 4,200 Shares 180,919 185,850
Oasis Residential, Inc. 4,500 Shares 105,503 98,437
Parametric Technology 3,500 Shares 168,434 172,812
Service Corporation
International 10,000 Shares 210,425 302,500
Sonat, Inc. 5,500 Shares 166,072 243,375
Starwood Lodging 7,000 Shares 252,983 293,125
Summit Care Corporation 4,000 Shares 95,500 88,000
Telecommunicacoes Brasileiras 2,800 Shares 176,646 219,800
3com Corporation 5,100 Shares 195,246 306,316
USCS International, Inc. 9,300 Shares 173,212 162,750
Verifone, Inc. 4,000 Shares 158,116 179,000
Weatherford Enterra, Inc. 8,500 Shares 208,445 232,687
Wells Fargo & Company 600 Shares 156,241 156,000
Western Atlas, Inc. 3,500 Shares 160,807 217,875
$ 7,229,734 $ 8,430,396
See independent auditor's report on supplementary information.
-17-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1996
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Current
Lessor, or Similar Party Par, or Maturity Value Cost Value
- ---------------------------- ----------------------- ----------- -----------
Employer Securities
-----------------------
Comdisco, Inc. 296,001 Shares common
stock $ 1,332,709 $ 8,547,029
=========== ===========
Registered Investment
Companies
-----------------------
Frank Russell Trust Company:
Equity I Fund 155,214.868 Shares $ 2,010,188 $ 3,076,203
Equity II Fund 34,895.044 Shares 465,029 665,937
Fixed Income I Fund 147,762.468 Shares 1,764,771 1,999,226
International Fund 52,817.584 Shares 848,667 959,062
Kemper Service Company 1,669,966.585 Shares
of various Kemper
"A" funds 6,690,526 17,467,484
T. Rowe Price 1,072,651.046 Shares
of various T. Rowe
Price funds 15,024,751 17,183,572
----------- ------------
$26,803,932 $ 41,351,484
=========== ============
Life Insurance
Companies Investments
Hartford Life Insurance Co. Investment contract
with insurance
company $17,887,028 $ 17,887,028
=========== ============
Loans to Participants
Participant Loans 8% - 12%, various
maturities $ 189,116 $ 189,116
=========== ============
Total Investments $54,233,477 $ 77,245,274
=========== ============
See independent auditor's report on supplementary information.
-18-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES WHICH WERE BOTH
ACQUIRED AND DISPOSED WITHIN THE PLAN YEAR
Year Ended September 30, 1997
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Cost of Current
Lessor, or Similar Party Par, or Maturity Value Acquistions Value
- ---------------------------- ----------------------- ----------- -----------
Common Stock
-----------------------
Advanced Health Corporation 7,000 Shares $ 91,000 $ 101,500
Ascend Communications,Inc. 5,100 Shares 297,793 237,672
Cascade Communications
Corporation 2,000 Shares 150,521 114,380
Cincinnati Bell Inc. 9,600 Shares 276,671 241,814
Compaq Computer Corporation 2,600 Shares 205,556 275,983
DSP Communications, Inc. 3,800 Shares 86,329 60,571
Electronic Data Systems
Corporation 5,000 Shares 207,175 176,893
EMC Corporation 1,800 Shares 51,902 70,090
Ericsson L.M. Telephone
Company 1,600 Shares 47,783 66,798
First Data Corporation 4,095 Shares 118,238 143,162
Footstar, Inc. 1,296 Shares - 26,018
Galileo International, Inc. 2,000 Shares 49,000 55,128
Healthcare Compare Corporation 1,500 Shares 64,500 64,873
K.N. Energy, Inc. 6,300 Shares 246,122 249,251
Keane, Inc. 3,100 Shares 101,424 150,172
Lone Star Steakhouse Saloon 6,800 Shares 169,882 121,111
Microchip Technology, Inc. 4,200 Shares 156,288 194,531
Motorola, Inc. 3,200 Shares 195,415 217,401
National Semiconductor
Corporation 8,700 Shares 183,103 232,195
Prime Service, Inc. 9,000 Shares 223,198 284,166
Republic Industries, Inc. 5,400 Shares 191,700 123,007
Rubbermaid, Inc. 7,400 Shares 201,079 190,200
Sunbeam Corporation 7,200 Shares 180,432 242,647
Western Digital Corporation 2,000 Shares 142,620 131,932
----------- ------------
$ 3,637,731 $ 3,771,495
=========== ============
See independent auditor's report on supplementary information.
-19-
<PAGE>
COMDISCO, INC.
EMPLOYEES' PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES WHICH WERE BOTH
ACQUIRED AND DISPOSED WITHIN THE PLAN YEAR
Year Ended September 30, 1996
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Cost of Current
Lessor, or Similar Party Par, or Maturity Value Acquistions Value
- ---------------------------- ----------------------- ----------- -----------
Common Stock
-----------------------
Analog Devices, Inc. 6,600 Shares $ 179,415 $ 152,689
B.J. Services Company 5,600 Shares 170,061 208,028
Continental Airlines 8,000 Shares 174,796 179,536
DST Systems, Inc. 5,000 Shares 130,560 179,694
Del Rigo 4,000 Shares 90,324 109,756
Highlands Insurance Group 420 Shares - 7,955
Kroger Company 5,500 Shares 202,211 220,350
LSI Logic Corporation 4,400 Shares 159,703 86,633
Oracle Corporation 6,000 Shares 199,500 198,750
Premisys Communications, Inc. 2,000 Shares 82,728 103,404
Quality Dining 3,200 Shares 76,000 110,400
Quorum Health Group, Inc. 8,000 Shares 212,812 197,256
Republic Industries, Inc. 8,000 Shares 123,636 205,237
Revlon, Inc. 7,000 Shares 168,000 197,008
Seagate Technology 3,000 Shares 177,622 156,376
U.S. Robotics Corporation 2,400 Shares 187,133 264,990
Xylan Corporation 1,500 Shares 106,242 53,934
----------- -----------
$ 2,440,743 $ 2,631,996
=========== ===========
See independent auditor's report on supplementary information.
-20-
[David J. Miller & Associates, LLP Letterhead]
Consent of David J. Miller & Associates, LLP
The Board of Directors
Comdisco, Inc.
We consent to the incorporation by reference in the Registration Statement on
Form S-8 of Comdisco, Inc. of our reports dated December 22, 1997, relating to
the statements of net assets available for benefits of Comdisco, Inc. Employees'
Profit Sharing Plan (the "Plan") as of September 30, 1997 and 1996, and the
related statements of changes in net assets available for benefits for the years
then ended, which reports appear in this Annual Report on Form 11-K of the Plan
filed with the Commission on April 17, 1998.
/s/ David J. Miller & Associates, LLP
April 17, 1998
Deerfield, Illinois
