COMDISCO RETIREMENT PLAN
FINANCIAL STATEMENTS
Years Ended September 30, 1998 and 1997
<PAGE>
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITOR'S REPORT 1
FINANCIAL STATEMENTS
Statement of Net Assets Available for
Benefits - September 30, 1998 2
Statement of Net Assets Available for
Benefits - September 30, 1997 3-4
Statement of Changes in Net Assets
Available for Benefits with Fund
Information - Year Ended September 30, 1998 5-8
Statement of Changes in Net Assets
Available for Benefits with Fund
Information - Year Ended September 30, 1997 9 -11
Notes to Financial Statements 12-19
INDEPENDENT AUDITOR'S REPORT ON
SUPPLEMENTARY INFORMATION 20
SUPPLEMENTARY INFORMATION
Schedule of Assets Held for Investment
Purposes - September 30, 1998 21
Schedule of Assets Held for Investment
Purposes - September 30, 1997 22-24
Schedule of Assets Held for Investment
Purposes Which Were Both Acquired and
Disposed Within the Plan Year - Year
Ended September 30, 1998 25
Schedule of Assets Held for Investment
Purposes Which Were Both Acquired and
Disposed Within the Plan Year - Year
Ended September 30, 1997 26
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Trustees of the
Comdisco Retirement Plan
We have audited the accompanying statements of net assets available for benefits
of the Comdisco Retirement Plan as of September 30, 1998 and 1997 and the
related statements of changes in net assets available for benefits with fund
information for the years then ended. These financial statement are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects the net assets available for benefits with fund
information of the Plan as of September 30, 1998 and 1997, and the changes in
net assets available for benefits for the years then ended in conformity with
generally accepted accounting principles.
Deerfield, Illinois
February 2, 1999
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Non
Participant Participant
Directed Directed Total
------------ ----------- ------------
<S> <C> <C> <C>
ASSETS
Investments
Employer securities ............................... $ 12,235,026 $ -- $ 12,235,026
Registered investment companies
Putnam International Growth ....................... 7,291,804 -- 7,291,804
The George Putnam Fund of Boston .................. 4,531,999 -- 4,531,999
The Putnam Fund for Growth and
Income ........................................... 11,302,703 -- 11,302,703
Putnam Income ..................................... 5,665,292 -- 5,665,292
Putnam Vista ...................................... 16,392,081 -- 16,392,081
Putnam Stable Value ............................... 13,165,635 -- 13,165,635
T. Rowe Price Small Cap Value ..................... 3,658,496 -- 3,658,496
T. Rowe Price Equity Income ....................... 10,792,465 -- 10,792,465
T. Rowe Price Equity Index ........................ 9,297,475 -- 9,297,475
Loans to participants ............................. 1,373,249 -- 1,373,249
------------ ------------ ------------
Total Investments ................................. 95,706,225 -- 95,706,225
------------ ------------ ------------
Receivables
Employer's contributions .......................... 5,865,647 -- 5,865,647
Due from brokers .................................. 37,053 -- 37,053
Due from plan sponsor ............................. -- 25,723
25,723
Miscellaneous ..................................... -- 114 114
------------ ------------ ------------
Total Receivables ................................. 5,902,700 25,837 5,928,537
------------ ------------ ------------
Total Assets ...................................... 101,608,925 25,837 101,634,762
------------ ------------ ------------
LIABILITIES
Accounts payable ............................... -- 25,433 25,433
Due to related plan ............................ -- 90 90
------------ ------------ ------------
Total Liabilities ............................. -- 25,523 25,523
------------ ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS ............................................... $101,608,925 $ 314 $101,609,239
============ ============ ============
The accompanying notes are an integral part of the financial statements.
</TABLE>
-2-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
Non
Participant Participant
Directed Directed Total
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Investments
Money market funds ......................................... $ -- $ 184,591 $ 184,591
Common stock ............................................... -- 11,323,197 11,323,197
Employer securities ........................................ -- 14,513,282 14,513,282
Registered investment companies
Kemper Blue Chip ........................................... 17,343 -- 17,343
Kemper Growth .............................................. 6,080,240 -- 6,080,240
Kemper High Yield .......................................... 2,426,726 -- 2,426,726
Kemper Income Capitalization ............................... 3,826 -- 3,826
Kemper International ....................................... 1,697,792 -- 1,697,792
Kemper Money Market ........................................ 548,235 -- 548,235
Kemper Small Capitalization
Equity .................................................... 4,647,905 -- 4,647,905
Kemper Technology .......................................... 673,235 -- 673,235
Kemper Total Return ........................................ 5,836,097 -- 5,836,097
Kemper U.S. Government ..................................... 149,467 -- 149,467
T. Rowe Price Capital
Appreciation .............................................. 5,557,026 -- 5,557,026
T. Rowe Price Equity Income ................................ 8,118,239 -- 8,118,239
T. Rowe Price Equity Index ................................. 5,468,241 -- 5,468,241
T. Rowe Price International Stock .......................... 5,506,091 -- 5,506,091
T. Rowe Price New Income ................................... 591,719 -- 591,719
T. Rowe Price U.S. Treasury
Money Market .............................................. 931,898 -- 931,898
Other ...................................................... -- 8,647,516 8,647,516
Hartford Life Insurance
Companies Investment - Contract #GA-3078 .................. 14,966,882 1,520,013 16,486,895
Loans to participants ...................................... -- 212,576 212,576
------------ ------------ ------------
Total Investments .......................................... 63,220,962 36,401,175 99,622,137
------------ ------------ ------------
Receivables
Employer's contributions ................................... -- 3,539,664 3,539,664
Due from brokers ........................................... -- 593,454 593,454
------------ ------------ ------------
Total Receivables .......................................... -- 4,133,118 4,133,118
------------ ------------ ------------
Cash ....................................................... -- 18,957 18,957
------------ ------------ ------------
Total Assets ............................................... $ 63,220,962 $ 40,553,250 $103,774,212
============ ============ ============
The accompanying notes are an integral part of the financial statements.
</TABLE>
-3-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
Non
Participant Participant
Directed Directed Total
------------ ------------ ------------
<S> <C> <C> <C>
LIABILITIES
Due to brokers ................................. $ -- $ 3,467 $ 3,467
Accounts payable ............................... -- 74,956 74,956
Due to related plan ............................ -- 124 124
------------ ------------ ------------
Total Liabilities .............................. -- 78,547 78,547
------------ ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS ............................................... $ 63,220,962 $ 40,474,703 $103,695,665
============ ============ ============
The accompanying notes are an integral part of the financial statements.
</TABLE>
-4-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED SEPTEMBER 30, 1998
KEMPER MUTUAL FUNDS
<TABLE>
<CAPTION>
Small
Capital- Capital-
Blue ization Interna ization Total U.S.
Chip Growth Yield tional Market Equity Technology Return Government
---- ------ ----- -------- -------- ------ ----- ---------- ------ ----------
Additions to net assets attributed to:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income
Net appreciation in
fair value of
investments ........ $ -- $ 54,843 $ 13,011 $ 14 $ 10,332 $ -- $ -- $ -- $ -- $ 376
Dividends .......... 2,641 710,328 101,852 118 70,180 11,460 426,272 72,678 608,271 4,055
Interest ........... -- -- -- -- -- -- -- -- -- --
Loan repayments ... -- -- -- -- -- -- -- -- -- --
Miscellaneous ..... -- -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,641 765,171 114,863 132 80,512 11,460 426,272 72,678 608,271 4,431
Less: Investment
expenses .......... -- -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,641 765,171 114,863 132 80,512 11,460 426,272 72,678 608,271 4,431
Contributions
Employer .......... -- -- -- -- -- -- -- -- -- --
Participants ...... -- 337,175 126,936 -- 94,615 40,633 210,817 13,977 119,488 5,639
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
-- 337,175 126,936 -- 94,615 40,633 210,817 13,977 119,488 5,639
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total
additions ......... 2,641 1,102,346 241,799 132 175,127 52,093 637,089 86,655 727,759 10,070
Deductions from
net assets
attributed to:
Net depreciation
in fair value of
investments ....... 171 -- -- -- -- -- 338,139 82,970 218,652 --
Loan issues ....... -- -- -- -- -- -- -- -- -- --
Benefits paid to
participants ...... -- 1,826,325 101,189 -- 114,553 85,205 409,351 150,510 -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total deductions ... 171 1,826,325 101,189 -- 114,553 85,205 747,490 233,480 218,652 --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase(decrease)
in net assets prior
to interfund
transfers ............ 2,470 (723,979) 140,610 132 60,574 (33,112) (110,401) (146,825) 509,107 10,070
Interfund
transfers ........... (19,813) (5,356,261) (2,567,336) (3,958) (1,758,366) (515,123) (4,537,504) (526,410) (6,345,204) (159,537)
-------- ----------- ----------- ------- ---------- --------- ---------- -------- ---------- --------
Net increase
(decrease) in net
assets available
for benefits ......... (17,343) (6,080,240) (2,426,726) (3,826) (1,697,792) (548,235) (4,647,905) (673,235) (5,836,097) (149,467)
Net assets
available for
benefits
Beginning of
year ............. 17,343 6,080,240 2,426,726 3,826 1,697,792 548,235 4,647,905 673,235 5,836,097 149,467
-------- ---------- ----------- ------- ----------- ------- ----------- --------- ---------- -------
End of year ....... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
======== =========== =========== ======== =========== ======= ========== ========= ========== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-5-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED SEPTEMBER 30, 1998
T. ROWE PRICE MUTUAL FUNDS
<TABLE>
<CAPTION>
U.S. Treasury Small
Capital Equity Equity International New Money Cap
App. Income Index Stock Income Market Value
-------- ------ ----- ----- ------ ------ -----
Additions to net assets attributed to:
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Net appreciation in fair value
of investments ..................... $ -- $ -- $ 345,877 $ -- $ 4,298 $ 7 $ --
Dividends ............................ 755,225 950,214 148,232 250,016 26,414 20,202 72
Interest ............................. -- 3,123 2,646 -- -- -- 699
Loan repayments ...................... -- 5,799 7,274 -- -- -- 1,884
Miscellaneous ........................ -- -- -- -- -- -- --
----------- ----------- ----------- ----------- --------- ----------- -----------
755,225 959,136 504,029 250,016 30,712 20,209 2,655
Less: Investment expenses ............ -- 170 138 -- -- -- 39
----------- ----------- ----------- ----------- --------- ----------- -----------
755,225 958,966 503,891 250,016 30,712 20,209 2,616
Contributions
Employer ............................. -- 956,014 940,923 -- -- -- 299,978
Participants ......................... 457,922 1,688,559 1,613,012 362,556 116,328 115,533 327,066
----------- ----------- ----------- ----------- --------- ----------- -----------
457,922 2,644,573 2,553,935 362,556 116,328 115,533 627,044
----------- ----------- ----------- ----------- --------- ----------- -----------
Total additions ...................... 1,213,147 3,603,539 3,057,826 612,572 147,040 135,742 629,660
Deductions from net assets attributed to:
Net depreciation in fair value
of investments ..................... 233,186 790,382 -- 13,145 -- -- 1,158,675
Loan issues .......................... -- 102,984 97,683 -- -- -- 40,466
Benefits paid to participants ........ 322,679 612,985 671,310 600,697 60,509 4,202 9,223
----------- ----------- ----------- ----------- --------- ----------- -----------
Total deductions ..................... 555,865 1,506,351 768,993 613,842 60,509 4,202 1,208,364
----------- ----------- ----------- ----------- --------- ----------- -----------
Net increase (decrease) in net assets
prior to interfund transfers .......... 657,282 2,097,188 2,288,833 (1,270) 86,531 131,540 (578,704)
Interfund transfers ..................... (6,214,308) 1,540,545 2,493,392 (5,504,821) (678,250) (1,063,438) 4,537,178
----------- ----------- ----------- ----------- --------- ----------- -----------
Net increase (decrease) in net
assets available for benefits .......... (5,557,026) 3,637,733 4,782,225 (5,506,091) (591,719) (931,898) 3,958,474
Net assets available for benefits
Beginning of year .............. 5,557,026 8,118,239 5,468,241 5,506,091 591,719 931,898 --
----------- ----------- ----------- ----------- --------- ----------- -----------
End of year .................... $ -- $11,755,972 $10,250,466 $ -- $ -- $ -- $3,958,474
=========== =========== =========== =========== ========= =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-6-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED SEPTEMBER 30, 1998
PUTNAM MUTUAL FUNDS
<TABLE>
<CAPTION>
The
George Growth
Putnam and International Stable Loan
Fund Income Income Vista Growth Value Fund
--------- ------ ------ ----- ------ ----- ----
Additions to net assets attributed to:
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Net appreciation in fair value
of investments ..................... $ -- $ -- $ -- $ -- $ -- $ -- $ --
Dividends ............................ 73,231 135,653 183,574 17,092 97 388,210 --
Interest ............................. 136 1,894 567 2,345 1,697 8,882 --
Loan repayments ...................... 3,942 4,862 1,337 4,959 3,216 58,838 1,203,856
Miscellaneous ........................ -- -- -- -- -- -- --
------------ ---------- ------------ ----------- ----------- ----------
77,309 142,409 185,478 24,396 5,010 455,930 1,203,856
Less: Investment expenses ............ 23 202 140 428 124 144 --
----------- ------------ ---------- ------------ ----------- ----------- ----------
77,286 142,207 185,338 23,968 4,886 455,786 1,203,856
Contributions
Employer ............................. 158,123 532,016 252,753 494,858 579,635 1,521,130 --
Participants ......................... 124,857 496,554 213,120 447,251 454,862 549,596 --
----------- ------------ ---------- ------------ ----------- ----------- ----------
282,980 1,028,570 465,873 942,109 1,034,497 2,070,726 --
----------- ------------ ---------- ------------ ----------- ----------- ----------
Total additions ...................... 360,266 1,170,777 651,211 966,077 1,039,383 2,526,512 1,203,856
Deductions from net assets attributed to:
Net depreciation in fair value
of investments ..................... 387,662 1,555,761 88,662 2,980,434 1,513,672 -- --
Loan issues .......................... 15,563 109,100 99,777 321,367 100,467 131,179 120,839
Benefits paid to participants ........ -- 190,276 96,769 198,958 104,856 640,845 --
----------- ------------ ---------- ------------ ----------- ----------- ----------
Total deductions ..................... 403,225 1,855,137 285,208 3,500,759 1,718,995 772,024 120,839
----------- ------------ ---------- ------------ ----------- ----------- ----------
Net increase (decrease) in net assets
prior to interfund transfers .......... (42,959) (684,360) 366,003 (2,534,682) (679,612) 1,754,488 1,083,017
Interfund transfers ..................... 4,733,081 12,519,078 5,552,042 19,421,622 8,551,052 12,932,276 290,232
----------- ------------ ---------- ------------ ----------- ----------- ----------
Net increase (decrease) in net
assets available for benefits .......... 4,690,122 11,834,718 5,918,045 16,886,940 7,871,440 14,686,764 1,373,249
Net assets available for benefits
Beginning of year .............. -- -- -- -- -- -- --
----------- ------------ ---------- ------------ ----------- ----------- ----------
End of year .................... $ 4,690,122 $ 11,834,718 $5,918,045 $ 16,886,940 $ 7,871,440 $14,686,764 $1,373,249
=========== ============ ========== ============ =========== =========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-7-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Hartford Comdisco
Total Total Total Life Common Non
Kemper T. Rowe Price Putnam Insurance Stock Participant
Funds Funds Funds Contract Account Directed Total
----- ----- ----- -------- -------- -------- -----
Additions to net assets attributed to:
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Net appreciation in fair value
of investments $ 78,576 $ 350,182 $ -- $ -- $ -- $ 6,671,040 $ 7,099,798
Dividends 2,007,855 2,150,375 797,857 -- 22,330 104,932 5,083,349
Interest -- 6,468 15,521 482,365 636 33,515 538,505
Loan repayments -- 14,957 1,281,010 -- 1,248 -- 1,297,215
Miscellaneous -- -- -- -- -- 685 685
----------- ------------ ----------- ------------ ----------- ----------- ------------
2,086,431 2,521,982 2,094,388 482,365 24,214 6,810,172 14,019,552
Less: Investment expenses -- 347 1,061 -- 130 93,741 95,279
----------- ------------ ----------- ------------ ----------- ----------- ------------
2,086,431 2,521,635 2,093,327 482,365 24,084 6,716,431 13,924,273
Contributions
Employer -- 2,196,915 3,538,515 -- 130,217 -- 5,865,647
Participants 949,280 4,680,976 2,286,240 455,724 116,992 -- 8,489,212
----------- ------------ ----------- ------------ ----------- ----------- ------------
949,280 6,877,891 5,824,755 455,724 247,209 -- 14,354,859
----------- ------------ ----------- ------------ ----------- ----------- ------------
Total additions 3,035,711 9,399,526 7,918,082 938,089 271,293 6,716,431 28,279,132
Deductions from net assets attributed to:
Net depreciation in fair value
of investments 639,932 2,195,388 6,526,191 -- 7,155,910 -- 16,517,421
Loan issues -- 241,133 898,292 -- 162,648 -- 1,302,073
Benefits paid to participants 2,687,133 2,281,605 1,231,704 1,808,717 134,327 4,402,578 12,546,064
----------- ------------ ----------- ------------ ----------- ----------- ------------
Total deductions 3,327,065 4,718,126 8,656,187 1,808,717 7,452,885 4,402,578 30,365,558
----------- ------------ ----------- ------------ ----------- ----------- ------------
Net increase (decrease) in net assets
prior to interfund transfers (291,354) 4,681,400 (738,105) (870,628) (7,181,592) 2,313,853 (2,086,426)
Interfund transfers (21,789,512) (4,889,702) 63,999,383 (14,096,254) 19,564,327 (42,788,242) --
----------- ------------ ----------- ------------ ----------- ----------- ------------
Net increase (decrease) in net
assets available for benefits (22,080,866) (208,302) 63,261,278 (14,966,882) 12,382,735 (40,474,389) (2,086,426)
Net assets available for benefits
Beginning of year 22,080,866 26,173,214 -- 14,966,882 -- 40,474,703 103,695,665
----------- ------------ ----------- ------------ ----------- ----------- -------------
End of year $ -- $ 25,964,912 $63,261,278 $ -- $12,382,735 $ 314 $101,609,239
=========== ============ =========== ============ =========== =========== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
-8-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED SEPTEMBER 30, 1997
KEMPER MUTUAL FUNDS
<TABLE>
<CAPTION>
Small
Blue High Income Money Cap. Total U.S.
Chip Growth Yield Capitalization International Market Equity Tech. Return Government
---- ------ ----- -------------- ------------- ------ ----- ---- ------ ----------
Additions to
net assets
attributed to:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income
Net apprecia-
tion in fair
value of
investments $ 3,044 $ -- $ 74,400 $ 659 $ 219,486 $ -- $ 621,108 $ 61,814 $ 402,746 $ 3,016
Dividends 74 1,291,190 205,733 453 87,852 32,686 323,023 90,167 775,218 10,544
Interest -- -- -- -- -- -- -- -- -- --
Miscellaneous -- -- -- -- -- -- -- -- -- --
--------- ---------- ---------- ------ ---------- ---------- ---------- ---------- --------- --------
3,118 1,291,190 280,133 1,112 307,338 32,686 944,131 151,981 1,177,964 13,560
Less: Invest-
ment expenses -- -- -- -- -- -- -- --
--------- ---------- ---------- ------ ---------- ---------- ---------- ---------- --------- --------
3,118 1,291,190 280,133 1,112 307,338 32,686 944,131 151,981 1,177,964 13,560
Contributions
Employer -- -- -- -- -- -- -- -- --
Participants -- 1,091,559 351,661 191 273,282 106,256 647,867 29,056 290,799 13,510
--------- ---------- ---------- ------ ---------- ---------- ---------- ---------- ---------- --------
-- 1,091,559 351,661 191 273,282 106,256 647,867 29,056 290,799 13,510
--------- ---------- ---------- ------ ---------- ---------- ---------- ---------- --------- --------
Total additions 3,118 2,382,749 631,794 1,303 580,620 138,942 1,591,998 181,037 1,468,763 27,070
Deductions from
net assets
attributed to:
Net deprecia-
tion in fair value
of invest-
ments -- 267,347 -- -- -- -- -- -- -- --
Benefits paid
to participants -- 330,071 142,834 22,219 104,125 582,374 613,902 44,890 203,336 33,284
--------- ---------- ---------- ------ ---------- ---------- ---------- ---------- --------- --------
Total deductions -- 597,418 142,834 22,219 104,125 582,374 613,902 44,890 203,336 33,284
--------- ---------- ---------- ------ ---------- ---------- ---------- ---------- --------- --------
Net increase
(decrease) in
net assets
prior to
interfund transfers 3,118 1,785,331 488,960 (20,916) 476,495 (443,432) 978,096 136,147 1,265,427 (6,214)
Interfund transfers 14,225 (490,532) (24,414) 3,167 (42,390) 694,517 (148,588) (99,128) (240,376) (11,424)
--------- ---------- ---------- ------ ---------- ---------- ---------- ---------- --------- --------
Net increase
(decrease) in
net
assets available
for benefits 17,343 1,294,799 464,546 (17,749) 434,105 251,085 829,508 37,019 1,025,051 (17,638)
Net assets
available for
benefits
Beginning
of year -- 4,785,441 1,962,180 21,575 1,263,687 297,150 3,818,397 636,216 4,811,046 167,105
--------- ---------- ---------- ------ ---------- ---------- ---------- ---------- ---------- --------
End of year $ 17,343 $6,080,240 $2,426,726 $3,826 $1,697,792 $ 548,235 $4,647,905 $ 673,235 $5,836,097 $149,467
========= ========== ========== ====== ========== ========== ========== ========== ========== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-9-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED SEPTEMBER 30, 1997
T. ROWE PRICE MUTUAL FUNDS
<TABLE>
<CAPTION>
U.S. Treasury
Capital Equity Equity International New Money
Appreciation Income Index Stock Income Market
------------ --------- --------- ----------- -------- --------
Additions to net assets attributed to:
<S> <C> <C> <C> <C> <C> <C>
Investment income
Net appreciation in fair value
of investments ..................... $ 474,819 $1,441,371 $1,152,689 $ 619,272 $ 30,663 $ --
Dividends ............................ 435,339 464,631 110,123 136,532 18,163 7,977
Interest ............................. -- -- -- -- -- --
Miscellaneous ........................ -- -- -- -- -- --
---------- ---------- ---------- ----------- --------- --------
910,158 1,906,002 1,262,812 755,804 48,826 7,977
Less: Investment expenses ............ -- -- -- -- -- --
---------- ---------- ---------- ----------- --------- --------
910,158 1,906,002 1,262,812 755,804 48,826 7,977
Contributions
Employer ............................. -- -- 10,731 2,274 -- 712,426
Participants ......................... 799,955 1,219,006 864,145 793,430 117,734 58,620
---------- ---------- ---------- ----------- --------- --------
799,955 1,219,006 874,876 795,704 117,734 771,046
---------- ---------- ---------- ----------- --------- --------
Total additions ...................... 1,710,113 3,125,008 2,137,688 1,551,508 166,560 779,023
Deductions from net assets attributed to:
Net depreciation in fair value
of investments ..................... -- -- -- -- -- --
Benefits paid to participants ........ 244,697 932,493 214,330 1,131,933 29,666 22,036
---------- ---------- ---------- ----------- --------- --------
Total deductions ..................... 244,697 932,493 214,330 1,131,933 29,666 22,036
---------- ---------- ---------- ----------- --------- --------
Net increase (decrease) in net assets
prior to interfund transfers .......... 1,465,416 2,192,515 1,923,358 419,575 136,894 756,987
Interfund transfers ..................... 49,439 1,210,748 1,012,549 (303,898) (46,265) 27,780
---------- ---------- ---------- ----------- --------- --------
Net increase (decrease) in net
assets available for benefits .......... 1,514,855 3,403,263 2,935,907 115,677 90,629 784,767
Net assets available for benefits
Beginning of year .............. 4,042,171 4,714,976 2,532,334 5,390,414 501,090 147,131
---------- ---------- ---------- ----------- --------- --------
End of year .................... $5,557,026 $8,118,239 $5,468,241 $ 5,506,091 $ 591,719 $931,898
========== ========== ========== =========== ========= ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-10-
<PAGE>
COMDISCO RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
Total Hartford
Total T. Rowe Life Non
Kemper Price Insurance Participant
Funds Funds Contract Directed Total
------------ ---------- ------------ ------------ -----------
Additions to net assets attributed to:
<S> <C> <C> <C> <C> <C>
Investment income
Net appreciation in fair value
of investments ..................... $ 1,386,273 $ 3,718,814 $ -- $10,984,108 $ 16,089,195
Dividends ............................ 2,816,940 1,172,765 -- 188,216 4,177,921
Interest ............................. -- -- 917,664 147,869 1,065,533
Miscellaneous ........................ -- -- -- 411 411
------------ ----------- ------------ ----------- ------------
4,203,213 4,891,579 917,664 11,320,604 21,333,060
Less: Investment expenses ............ -- -- -- 157,428 157,428
------------ ----------- ------------ ----------- ------------
4,203,213 4,891,579 917,664 11,163,176 21,175,632
Contributions
Employer ............................. -- 725,431 -- 3,539,664 4,265,095
Participants ......................... 2,804,181 3,852,890 1,444,003 -- 8,101,074
------------ ----------- ------------ ----------- ------------
2,804,181 4,578,321 1,444,003 3,539,664 12,366,169
------------ ----------- ------------ ----------- ------------
Total additions ...................... 7,007,394 9,469,900 2,361,667 14,702,840 33,541,801
Deductions from net assets attributed to:
Net depreciation in fair value
of investments ..................... 267,347 -- -- -- 267,347
Benefits paid to participants ........ 2,077,035 2,575,155 1,409,789 3,084,486 9,146,465
------------ ----------- ------------ ----------- ------------
Total deductions ..................... 2,344,382 2,575,155 1,409,789 3,084,486 9,413,812
------------ ----------- ------------ ----------- ------------
Net increase (decrease) in net assets
prior to interfund transfers .......... 4,663,012 6,894,745 951,878 11,618,354 24,127,989
Interfund transfers ..................... (344,943) 1,950,353 (1,605,410) -- --
------------ ----------- ------------ ----------- ------------
Net increase (decrease) in net
assets available for benefits .......... 4,318,069 8,845,098 (653,532) 11,618,354 24,127,989
Net assets available for benefits
Beginning of year .............. 17,762,797 17,328,116 15,620,414 28,856,349 79,567,676
------------ ----------- ------------ ----------- ------------
End of year .................... $ 22,080,866 $26,173,214 $ 14,966,882 $40,474,703 $103,695,665
============ =========== ============ =========== ============
The accompanying notes are an
integral part of the financial statements.
</TABLE>
-11-
<PAGE>
COMDISCO RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 and 1997
A. Description of Plan
The following description of the Comdisco Retirement Plan (previously
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. The Plan was
amended and restated effective as of April 1, 1998.
1. General. The Plan is a defined contribution plan that covers
all employees of the Company and related companies who have
six months of employment and who are also at least age
twenty-one. Prior to April 1, 1998, the Plan covered all
full-time employees of the Company who had six months of
employment and 500 or more hours of service and who were 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 are contributed at the rate of fifty
percent of the employees' before-tax contributions, not to
exceed $1,000 per employee. Prior to April 1, 1998, matching
contributions were made 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.
5. Investment Options. As of April 1, 1998, a participant in the
plan may direct their investments to any of the following
investment options.
Putnam Stable Value Fund
Investment Objective: Seeks stability of principal by
investing mainly in investment contracts issued by insurance
companies, banks, and other similar
-12-
<PAGE>
COMDISCO RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 and 1997
A. Description of Plan (continued)
financial institutions. To provide liquidity, a portion of the
fund's assets is invested in high-quality money market
instruments.
Putnam Income Fund
Investment Objective: Seeks current income consistent with
prudent risk by investing mainly in a variety of bonds, with
an emphasis on government bonds and corporate bonds from
creditworthy companies.
T. Rowe Price Equity Income Fund
Investment Objective: Seeks to provide high current income by
investing primarily in dividend-paying common stocks with
favorable prospects for capital appreciation.
The George Putnam Fund of Boston
Investment Objective: Seeks a balance of capital growth and
current income in a well-diversified portfolio composed mostly
of stocks and corporate and U.S. government bonds.
The Putnam Fund for Growth and Income
Investment Objective: Seeks capital growth and current income
by investing mainly in attractively priced stocks of mature
companies that offer long-term growth potential while also
providing income.
Putnam International Growth Fund
Investment Objective: Seeks capital appreciation by investing
in a diversified portfolio of stocks of companies located
mainly outside the United States.
Putnam Vista Fund
Investment Objective: Seeks capital appreciation by investing
mainly in a variety of stocks that have the potential for
above-average growth, including those of widely traded larger
companies; smaller, less well-known companies; and currently,
mostly midsize firms.
-13-
<PAGE>
COMDISCO RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 and 1997
A. Description of Plan (continued)
T. Rowe Price Equity Index Fund
Investment Objective: Seeks to provide long-term growth with
investment results equivalent to the total return of the U.S.
stock market as represented by the Standard & Poor's 500 Stock
Index.
T. Rowe Price Small Cap Value Fund
Investment Objective: Seeks long-term growth of capital
through investment in undervalued small-capitalization stocks
with attractive prospects for capital appreciation.
Comdisco Common Stock Account
Investment Objective: Seeks capital appreciation by investing
in Comdisco, Inc. common stock. This investment option allows
participants to share in the profits of the Company through
direct ownership.
Prior to April 1, 1998, a participant was able to direct their
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
-14-
<PAGE>
COMDISCO RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 and 1997
A. Description of Plan (continued)
As of April 1, 1998, participants may change their investment
options when they wish. Prior to April 1, 1998, this could
only be done semi-annually.
6. Participant Notes Receivable. Participants may borrow from
their fund accounts a minimum of $1,000 up to one-half of the
current value of the vested balance of their accounts, not to
exceed $50,000 minus their highest loan balances in the last
twelve months. The loans are secured by the balances in the
participants' accounts and bear interest at the prime rates in
effect on the first day of the quarter in which the loans are
approved, plus two percent. Principal and interest are repaid
ratably through payroll deductions over a reasonable period of
time (not to extend beyond five years or ten years for a
principal residence loan).
7. Payment of Benefits. On termination of service, the benefits
to which a participant is entitled are paid in accordance with
the Plan agreement.
8. Forfeited Accounts. At September 30, 1998 and 1997, there were
no forfeited nonvested accounts. During the years ended
September 30, 1998 and 1997, forfeited nonvested accounts
totaling $98,708 and $129,290 respectively, were applied to
the remaining participants' accounts as additional employer
contributions.
9. Plan Amendments. Effective April 1, 1998, the Plan was amended
and renamed the Comdisco Retirement Plan. On April 1, 1998,
all Plan assets were liquidated and transferred on behalf of
the participants to Putnam Investments.
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
-15-
<PAGE>
COMDISCO RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 and 1997
B. Summary of Accounting Policies (continued)
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.
C. Investments
The following table presents investments that represent five percent or
more of the Plan's net assets at September 30:
<TABLE>
<CAPTION>
1998 1997
----------- -----------
<S> <C> <C>
Investments at Fair Value as
determined by quoted market price
Employer securities ................ $12,235,026 $14,513,282
Registered Investment Companies
Putnam International Growth ...... 7,291,804 --
The Putnam Fund for Growth
and Income ...................... 11,302,703 --
Putnam Income .................... 5,665,292 --
Putnam Vista ..................... 16,392,081 --
Putnam Stable Value .............. 13,165,635 --
T. Rowe Price Equity Income ...... 10,792,465 8,118,239
T. Rowe Price Equity Index ....... 9,297,475 5,468,241
T. Rowe Price Capital Appreciation -- 5,557,026
T. Rowe Price International Stock -- 5,506,091
Kemper Growth .................... -- 6,080,240
Kemper Total Return .............. -- 5,836,097
----------- -----------
</TABLE>
-16-
<PAGE>
COMDISCO RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 and 1997
C. Investments (continued)
<TABLE>
<S> <C> <C>
$86,142,481 $51,079,216
Investment at Contract Value
Hartford Life Insurance Companies
Investment - Contract #GA-3078 . -- 16,486,895
----------- -----------
$86,142,481 $67,566,111
=========== ===========
</TABLE>
During the years ended September 30, 1998 and 1997, the Plan's
investments (including investments bought, sold, or held during the
year) appreciated or depreciated in value as follows:
<TABLE>
<CAPTION>
Net Change in Fair Value
Year Ended Year Ended
September 30, 1998 September 30, 1997
------------ ------------
<S> <C> <C>
Preferred stock ........................................... $ -- $ (49,262)
Common stock .............................................. 936,664 3,120,015
Employer securities ....................................... (2,299,651) 5,966,267
Registered investment
companies ................................................ (8,054,636) 6,784,828
------------ ------------
Total net change in
fair value ............................................... $ (9,417,623) $ 15,821,848
============ ============
</TABLE>
D. Investment Contract with Insurance Company
The Plan entered into an investment contract with Hartford Insurance
Companies (Hartford). Hartford maintained the contributions in a pooled
account. The account was credited with earnings on the underlying
investments and charged for Plan withdrawals and administrative
expenses charged by Hartford. The contract was included in the
financial statements at contract value, (which represented
contributions made under the contract, plus earnings, less withdrawals
and administrative expenses), because it was fully benefit responsive.
There were 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 was $16,486,895. The average yield and crediting
interest rates were 6% for 1998 and 6.498% for 1997. The crediting
interest rate was based on an agreed-upon formula with the issuer, but
could not be less than 6% for 1998 and 5.75% for 1997. The interest
rates were reset annually.
-17-
<PAGE>
COMDISCO RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 and 1997
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:
<TABLE>
<CAPTION>
September 30, 1998 September 30, 1997
------------------ ------------------
<S> <C> <C>
Net assets available for
benefits per financial
statements $ 101,609,239 $ 103,695,665
Amounts allocated to
withdrawing participants (11,758) (7,998,760)
--------------- --------------
Net assets available for
benefits per the Form 5500 $ 101,597,481 $ 95,696,905
============== ==============
</TABLE>
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 with fund information.
<TABLE>
<CAPTION>
Year Ended Year Ended
September 30, 1998 September 30, 1997
------------------ ------------------
<S> <C> <C>
Benefits per line 32e(1) of
Form 5500 $ 4,559,062 $ 11,713,998
Plus beginning amount
allocated to withdrawing
participants 7,998,760 5,431,228
Less ending amount
allocated to withdrawing
participants (11,758) (7,998,760)
--------------- -------------
Benefits paid per
statements of changes
in net assets available
for benefits with fund
information $ 12,546,064 $ 9,146,466
=============== =============
</TABLE>
F. Administrative Expenses
Comdisco, Inc. pays for the significant administrative costs of the
Plan outside of the investment expenses.
-18-
<PAGE>
COMDISCO RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 and 1997
G. Reclassification
Certain prior year amounts have been reclassified to conform with the
September 30, 1998 presentation.
H. Information Certified by Custodians
The certified annual statements of the custodian provide year-end
market values of each class of investment, net appreciation or
depreciation in fair values of each class of investment, interest and
dividend income of each class of investment, and are the source for
such information included in the financial statements and supplemental
schedules. The custodians have certified that the information provided
to the plan administrator by the custodians is complete and accurate.
I. 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.
J. 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.
-19-
<PAGE>
INDEPENDENT AUDITOR'S REPORT ON
SUPPLEMENTARY INFORMATION
To the Trustees of the Comdisco Retirement 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, 1998 and 1997 and assets held for
investment purposes which were both acquired and disposed within the plan years
ended September 30, 1998 and 1997 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.
February 2, 1999
Deerfield, Illinois
<PAGE>
SUPPLEMENTARY INFORMATION
<PAGE>
COMDISCO RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Par,
Lessor, or Similar Party or Maturity Value Cost Current Value
- --------------------------- ------------------------ ----------- -----------
<S> <C> <C> <C>
Employer Securities
* Comdisco, Inc. ...........................897,983.59 Shares $ 2,354,506 $12,235,026
=========== ===========
Registered Investment
Companies
T. Rowe Price
Equity Index ............................336,134.312 Shares $10,110,933 $ 9,297,475
Equity Income ...........................430,321.579 Shares 12,034,841 10,792,465
Small Cap Value .........................190,944.486 Shares 4,758,306 3,658,496
Putnam Investments
The George Putnam Fund
of Boston ..............................254,749.827 Shares 4,911,808 4,531,999
The Putnam Fund for Growth
and Income .............................595,819.867 Shares 12,814,869 11,302,703
Income ..................................807,021.615 Shares 5,749,819 5,665,292
Vista .................................1,430,373.575 Shares 19,326,750 16,392,081
International Growth ....................450,389.383 Shares 8,800,652 7,291,804
Stable Value ..........................13,165,634.78 Shares 13,165,635 13,165,635
----------- -----------
$91,673,613 $82,097,950
=========== ===========
Loans to Participants
* Participant Loans ........................8% - 11% various
maturities $ 1,373,249 $ 1,373,249
=========== ===========
Total Investments ... $95,401,368 $95,706,225
=========== ===========
</TABLE>
* party-in-interest
See independent auditor's report on supplementary information.
-21-
<PAGE>
COMDISCO RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1997
<TABLE>
<CAPTION>
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Par,
Lessor, or Similar Party or Maturity Value Cost Current Value
- --------------------------- -------------------------- -------- -------------
<S> <C> <C> <C>
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.
Treasury Money Short-term investment,
variable rate 931,901 931,901
---------- ----------
$1,664,726 $1,664,726
========== ==========
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. Telelphone
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
See independent auditor's report on supplementary information.
</TABLE>
-22-
<PAGE>
COMDISCO RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1997
<TABLE>
<CAPTION>
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Par,
Lessor, or Similar Party or Maturity Value Cost Current Value
- --------------------------- ----------------------- ----------- -------------
<S> <C> <C> <C>
Common Stock (continued)
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 Shares 146,280 416,000
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
=========== ===========
</TABLE>
See independent auditor's report on supplementary information.
-23-
<PAGE>
COMDISCO RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
September 30, 1997
<TABLE>
<CAPTION>
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Par,
Lessor, or Similar Party or Maturity Value Cost Current Value
- --------------------------- -------------------------- ----------- -------------
<S> <C> <C> <C>
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
various Kemper "A"
funds 9,637,334 21,532,632
T. Rowe Price ............. 1,274,599.6993 Shares
of various T. Rowe
Price funds 19,363,092 25,241,313
----------- -----------
$34,308,930 $55,421,461
=========== ===========
Life Insurance
Companies Investment
Hartford Life Insurance Co. Investment contract
with insurance
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
=========== ===========
* party-in-interest
See independent auditor's report on supplementary information.
</TABLE>
-24-
<PAGE>
COMDISCO RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED WITHIN THE PLAN YEAR
Year Ended September 30, 1998
<TABLE>
<CAPTION>
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Par, Cost of Proceeds of
Lessor, or Similar Party or Maturity Value Acquisitions Dispositions
- --------------------------- -------------------------- ------------ ------------
<S> <C> <C> <C>
Common Stock
Advanced Fibre
Communications, Inc. ................................ 8,700 Shares $ 270,414 $ 338,201
Allied Signal, Inc. .................................. 6,000 Shares 230,096 250,382
ASM Lithography Holding .............................. 2,600 Shares 239,184 182,870
Berg Electrs Corporation ............................. 9,000 Shares 225,000 240,294
Cable Design Technologies
Corporation ......................................... 12,750 Shares 350,304 337,286
Calenergy, Inc. ...................................... 5,100 Shares 193,163 199,651
CBS Corporation ...................................... 9,300 Shares 253,751 311,751
Ciena Corporation .................................... 4,500 Shares 239,584 181,398
Colgate Palmolive Co. ................................ 2,900 Shares 254,879 250,668
Grey Wolfe, Inc. ..................................... 28,000 Shares 245,570 117,316
Hearst Argyle Television ............................. 9,100 Shares 260,721 332,139
Home Depot, Inc. ..................................... 4,100 Shares 234,202 271,645
Meditrust Paired CTF ................................. 7,800 Shares 293,973 231,786
Microchip Technology, Inc. ........................... 2,200 Shares 84,975 60,550
Monsanto Co. ......................................... 6,900 Shares 302,541 361,824
News Corporation Ltd. ................................ 10,500 Shares 249,072 296,195
PSW Technologies ..................................... 22,800 Shares 266,713 153,201
Sipex Corporation .................................... 7,000 Shares 207,728 251,992
Tellabs, Inc. ........................................ 3,800 Shares 222,491 257,441
---------- ----------
$4,624,361 $4,626,590
========== ==========
</TABLE>
See independent auditor's report on supplementary information.
-25-
<PAGE>
COMDISCO RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED WITHIN THE PLAN YEAR
Year Ended September 30, 1997
<TABLE>
<CAPTION>
Description of
Investment Including
Maturity Date, Rate of
Identity of Issue, Borrower, Interest, Collateral, Par, Cost of Proceeds of
Lessor, or Similar Party or Maturity Value Acquisitions Dispositions
- --------------------------- ----------------- ------------ ------------
<S> <C> <C> <C>
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
========== ==========
</TABLE>
See independent auditor's report on supplementary information.
-26-
[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 February 2, 1999, relating to
the statements of net assets available for benefits of Comdisco, Inc. Employees'
Profit Sharing Plan (the "Plan") as of September 30, 1998 and 1997, 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 15, 1999.
/s/ David J. Miller & Associates, LLP
April 15, 1999
Deerfield, Illinois
