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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTIONS 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to ______
----------
Commission file number 0-17156
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
MERISEL, INC. 401(K) RETIREMENT SAVINGS PLAN
- -----------------------------------------------------------------------------
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Merisel, Inc.
200 Continental Boulevard
El Segundo, California 90245-0948
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<PAGE>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
- -------------------------------------------------------------------------------
Page
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Plan Benefits as of
December 31, 1996 and 1995 2
Statements of Changes in Net Assets Available for Plan Benefits for the
Years Ended December 31, 1996 and 1995 3
Notes to Financial Statements 4-9
SUPPLEMENTAL SCHEDULES:
Assets Held for Investment Purposes as of December 31, 1996 10
Assets Held for Investment Purposes Which Were Both Acquired and
Disposed of within the Plan Year for the Year Ended December 31, 1996 11
Reportable Transactions for the Year Ended December 31, 1996 12
<PAGE>
INDEPENDENT AUDITORS' REPORT
Merisel, Inc.
401(k) Retirement Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Merisel, Inc. 401(k) Retirement Savings Plan as of December 31,
1996 and 1995, and the related statements of changes in net assets available for
plan benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for plan benefits at December 31, 1996 and
1995, and the changes in net assets available for plan benefits for the years
ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of (1) assets
held for investment purposes as of December 31, 1996, (2) assets held for
investment purposes which were both acquired and disposed of within the plan
year for the year ended December 31, 1996, and (3) reportable transactions for
the year ended December 31, 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. These schedules are the responsibility of the Plan's
management. Such schedules have been subjected to the auditing procedures
applied in our audit of the basic 1996 financial statements and, in our opinion,
are fairly stated in all material respects when considered in relation to the
basic financial statements taken as a whole.
January 15, 1998
<PAGE>
<TABLE>
<CAPTION>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1996 AND 1995
- -----------------------------------------------------------------------------------------------------------------------
1996 1995
ASSETS:
<S> <C> <C>
Cash $ - $ 118,931
--------------- ----------------
Investments (Notes 2 and 3):
Pooled separate accounts - at fair value (cost: $6,706,997) 6,596,098
Shares of registered investment companies - at fair value
(cost: $6,382,504) 7,072,497
Insurance company contracts - at fair value 2,090,038
Merisel common stock - at fair value (cost: $713,187 in
1996 and $1,423,341 in 1995) 300,544 714,171
Participant loans 303,928 246,044
--------------- ----------------
Total investments 9,290,608 8,032,712
--------------- ----------------
Receivables -
Accrued investment income and other 6,486
--------------- ----------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 9,290,608 $ 8,158,129
=============== ================
<FN>
See independent auditors' report and notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEARS ENDED DECEMBER 31, 1996 AND 1995
- -----------------------------------------------------------------------------------------------------------------------
1996 1995
ADDITIONS TO NET ASSETS:
<S> <C> <C>
Investment income (Notes 1 and 3):
Net appreciation in fair value of investments $ 426,354 $ 967,030
Interest income 132,983 6,877
---------------- ----------------
Total investment income 559,337 973,907
---------------- ----------------
Contributions (Note 2):
Employer 95,453 149,399
Employee 2,315,337 1,875,098
Rollover 34,910 70,382
---------------- ----------------
Total contributions 2,445,700 2,094,879
---------------- ----------------
Total additions 3,005,037 3,068,786
---------------- ----------------
DEDUCTIONS:
Benefit payments 1,856,023 1,575,352
Contract administrator fees 16,535
---------------- ----------------
Total deductions 1,872,558 1,575,352
---------------- ----------------
INCREASE IN NET ASSETS 1,132,479 1,493,434
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
BEGINNING OF YEAR 8,158,129 6,664,695
---------------- ----------------
END OF YEAR $ 9,290,608 $ 8,158,129
================ ================
<FN>
See independent auditor's report and notes to financial statements.
</FN>
</TABLE>
<PAGE>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1996 AND 1995
- -------------------------------------------------------------------------------
1. PLAN DESCRIPTION AND RELATED INFORMATION
General - The Merisel, Inc. 401(k) Retirement Savings Plan (the "Plan") is
a qualified defined contribution plan established to provide retirement
benefits to Merisel, Inc. (the "Company") employees. The following
description of the Plan provides only general information. Participants
should refer to the plan agreement for a more complete description of the
Plan's provisions.
Contributions, Participant Accounts, and Vesting - Under provisions of the
Plan, all full-time employees of the Company who have completed one year
of service and are at least 21 years of age are eligible to participate in
the Plan. Total annual participant contributions are limited to the lesser
of $9,500 or 15% of the participant's annual compensation. Participants
may also make rollover contributions from other qualified plans. The
Company contributions are equal to each participant's contribution up to
2% of the participant's eligible compensation.
Each participant's account is credited with the participant's contribution
and an allocation of the Company's contribution and plan earnings. These
amounts are invested in any of nine available investment funds or Company
common stock, as directed by the participant. However, Company
contributions are invested in stock of the Company. Plan earnings are
allocated to participants based upon participant account balances.
Forfeitures of terminated participants' nonvested accounts are used to
reduce future Company contributions.
Participants are immediately vested in their voluntary contributions plus
actual earnings thereon. Vesting in the Company's contributions is based
on years of continuous service. A participant is fully vested after four
years of credited service.
Payments of Benefits - A participant's plan benefits will be distributed
at retirement, death, disability or termination of employment. The
participant or beneficiary may elect to receive such benefits in an
annuity or lump-sum payment. Benefits payable to terminated participants
are not reflected in the accompanying financial statements. As of December
31, 1996, net assets available for plan benefits included $134,835 for
participants who are no longer employed.
Termination - Although it has not expressed any intent to do so, the
Company has the right to terminate the Plan subject to the provisions of
the Employee Retirement Income Security Act of 1974 ("ERISA").
Tax Status - The Internal Revenue Service ("IRS") has determined and
informed the Company by letter that the Plan is qualified under Section
401 of the Internal Revenue Code ("IRC") and therefore is not subject to
tax under present income tax law. In 1995, the Plan's sponsor became aware
of certain technical deficiencies in the operation of the Plan. The plan
sponsor entered the Plan into the Voluntary Compliance Review Program
("VCR"), established by the IRS as a method of bringing employee benefit
plans into compliance with ERISA. Management believes that the technical
deficiencies have been corrected. Management believes that the Plan is
designed and currently being operated within the applicable requirements
of the IRC.
Administrative Expenses - Administrative expenses are allocated to plan
participants on a pro rata basis based on individual net asset value.
Participant Loans - 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% of
the participant's vested account balance and related earnings. Participant
loans bear interest from 8% - 11% with maturities up to 60 months.
Related Party Transactions - Certain plan investments are shares of funds
managed by CIGNA Retirement & Investment Services. CIGNA Retirement &
Investment Services is the trustee as defined by the Plan, and therefore,
these transactions qualify as party-in-interest.
2. SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting - The accompanying financial statements have been
prepared using the accrual basis of accounting.
Investments - Investments are stated at fair value. Shares of registered
investment companies and the Company stock are valued at quoted market
prices. Investments in pooled separate accounts are recorded at fair
value, as determined by the unit value as reported by the Connecticut
General Life Insurance Company. Investments in the CIGNA Guaranteed Long
Term Account are non-fully benefit responsive guaranteed investment
contracts which are recorded at fair value. Participant loans are valued
at cost, which approximates fair value. Purchases and sales of securities
are recorded on a trade-date basis. Interest income is recorded on the
accrual basis.
3. INVESTMENT INFORMATION BY FUND
The Plan provides separate investment programs with separate funds whereby
participant contributions to these funds are participant-directed, and the
Company matching contributions are nonparticipant-directed. The allocation
of the net assets available for plan benefits and the changes therein,
between the participant-directed funds and the nonparticipant-directed
fund, for the years ended December 31, 1996 and 1995 are presented below.
Investments that represent more than 5% of net assets are separately
disclosed.
<PAGE>
<TABLE>
<CAPTION>
Investments at fair value as of December 31, 1996 and 1995:
Non-
Participant - Participant-
Directed Directed
1996 Funds Fund Total
Investments:
<S> <C> <C> <C>
CIGNA Guaranteed Long-Term Account $ 1,993,624 $ 1,993,624
CIGNA Stock Index 995,644 995,644
Fidelity Advisor Growth Opportunity 1,747,161 1,747,161
Fidelity Advisor Equity Growth 2,154,385 2,154,385
Warburg-Pincus Int'l Equity 236,193 236,193
Lifetime 20 318,647 318,647
Lifetime 30 574,335 574,335
Lifetime 40 339,181 339,181
Lifetime 50 230,553 230,553
Cash Transaction Account 96,413 96,413
Merisel common stock 150,656 $ 149,888 300,544
Participant loans 303,928 303,928
----------------- --------------- -----------------
Total investments $ 9,140,720 $ 149,888 $ 9,290,608
================= =============== =================
1995
Investments:
Shares of registered investment companies:
Bond Fund of America $ 547,025 $ 547,025
Growth Fund of America 2,440,407 2,440,407
Investment Company of America 1,917,363 1,917,363
Income Fund of America 1,580,640 1,580,640
Merrill Lynch Cash Reserves 587,062 587,062
Merisel common stock $ 714,171 714,171
Participant loans 246,044 246,044
----------------- --------------- -----------------
Total investments $ 7,318,541 $ 714,171 $ 8,032,712
================= =============== =================
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
`
<PAGE>
- 13 -
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended December
31, 1996:
Merrill
Investment Income Lynch
Bond Fund Growth Fund Co of Fund of Cash
of America of America America America Reserves
ADDITIONS TO NET ASSETS:
<S> <C> <C> <C> <C> <C>
Investment (loss) income:
Net (depreciation)
appreciation in fair value
of investments $ (1,733) $ (81,807) $ (28,236) $ (11,756) $ 2,275
Interest income
-------------- -------------- ------------- ------------ --------------
Total investment (loss) income (1,733) (81,807) (28,236) (11,756) 2,275
Contributions:
Employer
Employee
Rollover
Total contributions
Fund transfers (545,292) (2,346,671) (1,880,828) (1,568,884) (588,277)
-------------- -------------- ------------- ------------ --------------
Total additions (547,025) (2,428,478) (1,909,064) (1,580,640) (586,002)
-------------- -------------- ------------- ------------ --------------
DEDUCTIONS:
Benefit payments (returns) 11,929 8,299 1,060
Contract administrator fees
-------------- -------------- ------------- ------------ --------------
Total deductions 11,929 8,299 1,060
-------------- -------------- ------------- ------------ --------------
(DECREASE) INCREASE
IN NET ASSETS (547,025) (2,440,407) (1,917,363) (1,580,640) (587,062)
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 547,025 2,440,407 1,917,363 1,580,640 587,062
-------------- -------------- ------------- ------------ --------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ - $ - $ - $ - $ -
============== ============== ============= ============ ==============
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended December
31, 1996 (continued):
Fidelity Fidelity
Cigna Cigna Advisor Advisor Warburg-
Guar Stock Growth Equity Pincus Int'l
Long-Term Index Opp Growth Equity
ADDITIONS TO NET ASSETS:
<S> <C> <C> <C> <C> <C>
Investment (loss) income:
Net (depreciation)
appreciation in fair value
of investments $ 205,749 $ 299,645 $ 332,287 $ 20,652
Interest income $ 114,574
-------------- -------------- ------------- --------------- -------------
Total investment (loss) income 114,574 205,749 299,645 332,287 20,652
-------------- -------------- ------------- --------------- -------------
Contributions:
Employer 45,380 6,528 13,212 12,859 1,596
Employee 308,044 291,753 511,200 583,844 101,538
Rollover
-------------- -------------- ------------- --------------- -------------
Total contributions 353,424 298,281 524,412 596,703 103,134
-------------- -------------- ------------- --------------- -------------
Fund transfers 2,142,845 673,302 1,198,758 1,495,884 197,568
-------------- -------------- ------------- --------------- -------------
Total additions 2,610,843 1,177,332 2,022,815 2,424,874 321,354
-------------- -------------- ------------- --------------- -------------
DEDUCTIONS:
Benefit payments (returns) 612,268 180,796 274,376 269,674 84,963
Contract administrator fees 4,951 892 1,278 815 198
-------------- -------------- ------------- --------------- -------------
Total deductions 617,219 181,688 275,654 270,489 85,161
-------------- -------------- ------------- --------------- -------------
(DECREASE) INCREASE
IN NET ASSETS 1,993,624 995,644 1,747,161 2,154,385 236,193
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR
-------------- -------------- ------------- --------------- -------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ 1,993,624 $ 995,644 $ 1,747,161 $ 2,154,385 $ 236,193
============== ============== ============= =============== =============
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended December
31, 1996 (continued):
Merisel
Lifetime Lifetime Lifetime Lifetime Common
20 30 40 50 Stock
ADDITIONS TO NET ASSETS:
<S> <C> <C> <C> <C> <C>
Investment (loss) income:
Net (depreciation)
appreciation in fair value
of investments $ 32,755 $ 60,072 $ 44,408 $ 28,533 $ (476,490)
Interest income
-------------- -------------- ------------- --------------- -------------
Total investment (loss) income 32,755 60,072 44,408 28,533 (476,490)
-------------- -------------- ------------- --------------- -------------
Contributions:
Employer 2,233 4,052 1,941 1,247 5,710
Employee 118,572 155,731 73,337 29,336 80,451
Rollover
-------------- -------------- ------------- --------------- -------------
Total contributions 120,805 159,783 75,278 30,583 86,161
-------------- -------------- ------------- --------------- -------------
Fund transfers 202,115 384,432 345,322 245,359 121,596
-------------- -------------- ------------- --------------- -------------
Total additions 355,675 604,287 465,008 304,475 (268,733)
-------------- -------------- ------------- --------------- -------------
DEDUCTIONS:
Benefit payments (returns) 36,250 28,856 125,411 73,716 138,989
Contract administrator fees 778 1,096 416 206 5,905
-------------- -------------- ------------- --------------- -------------
Total deductions 37,028 29,952 125,827 73,922 144,894
-------------- -------------- ------------- --------------- -------------
(DECREASE) INCREASE
IN NET ASSETS 318,647 574,335 339,181 230,553 (413,627)
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 714,171
-------------- -------------- ------------- --------------- -------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ 318,647 $ 574,335 $ 339,181 $ 230,553 $ 300,544
============== ============== ============= =============== =============
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended December
31, 1996 (continued):
Cash
Transaction Participant Plan
Account Loans Receivables Total
ADDITIONS TO NET ASSETS:
<S> <C> <C> <C> <C>
Investment (loss) income:
Net (depreciation)
appreciation in fair value
of investments $ 426,354
Interest income $ 18,409 132,983
----------- ----------- ----------- -----------
Total investment (loss) income 18,409 559,337
----------- ----------- ----------- -----------
Contributions:
Employer $ 695 95,453
Employee 61,531 2,315,337
Rollover 34,910 34,910
----------- ----------- ----------- -----------
Total contributions 97,136 2,445,700
----------- ----------- ----------- -----------
Fund transfers (138,934) 68,191 $ (6,486)
----------- ----------- ----------- -----------
Total additions (41,798) 86,600 (6,486) 3,005,037
----------- ----------- ----------- -----------
DEDUCTIONS:
Benefit payments (returns) (19,280) 28,716 1,856,023
Contract administrator fees 16,535
----------- ----------- ----------- -----------
Total deductions (19,280) 28,716 1,872,558
----------- ----------- ----------- -----------
(DECREASE) INCREASE
IN NET ASSETS (22,518) 57,884 (6,486) 1,132,479
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 118,931 246,044 6,486 8,158,129
----------- ----------- ----------- -----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ 96,413 $ 303,928 $ -- $ 9,290,608
=========== =========== =========== ===========
<FN>
See accompanying independent auditors' report
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended
December 31, 1995:
Contributions Participant Bond Fund
Cash Receivable Loans of America
ADDITIONS TO NET ASSETS:
<S> <C> <C> <C> <C>
Investment income (loss):
Net appreciation (depreciation) in
fair value of investments $ 85,713
Interest income $ 6,877
--------- ---------
Total investment income (loss) 6,877 85,713
--------- ---------
Contributions:
Employer
Employee 175,816
Rollover $ 12,115 1,916
--------- ---------
Total contributions 12,115 177,732
Fund transfers 79,865 $(183,569) 62,920 (22,088)
--------- --------- --------- ---------
Total additions 91,980 (183,569) 69,797 241,357
DEDUCTIONS -
Benefit payments 154,551
--------- --------- --------- ---------
INCREASE (DECREASE) IN NET ASSETS 91,980 (183,569) 69,797 86,806
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, BEGINNING OF YEAR 26,951 190,055 176,247 460,219
--------- --------- --------- ---------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, END OF YEAR $ 118,931 $ 6,486 $ 246,044 $ 547,025
========= ========= ========= =========
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended
December 31, 1995 (continued):
Growth Investment Income
Fund of Company Fund of
America of America America
ADDITIONS TO NET ASSETS:
<S> <C> <C> <C>
Investment income (loss):
Net appreciation (depreciation) in fair value of
investments $ 563,078 $ 453,071 $ 352,954
Interest income
----------- ----------- -----------
Total investment income (loss) 563,078 453,071 352,954
----------- ----------- -----------
Contributions:
Employer
Employee 752,168 445,554 371,950
Rollover 35,172 15,843 3,215
----------- ----------- -----------
Total contributions 787,340 461,397 375,165
Fund transfers (12,190) (29,759) 9,667
----------- ----------- -----------
Total additions 1,338,228 884,709 737,786
DEDUCTIONS -
Benefit payments 673,104 392,091 258,083
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS 665,124 492,618 479,703
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
BEGINNING OF YEAR 1,775,283 1,424,745 1,100,937
----------- ----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
END OF YEAR $ 2,440,407 $ 1,917,363 $ 1,580,640
=========== =========== ===========
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended
December 31, 1995 (continued):
Merrill
Lynch . Merisel
Cash . Common
Reserves Stock Total
ADDITIONS TO NET ASSETS:
<S> <C> <C> <C>
Investment income (loss):
Net appreciation (depreciation) in fair value of
investments $ 28,528 $ (516,314) $ 967,030
Interest income 6,877
----------- ----------- -----------
Total investment income (loss) 28,528 (516,314) 973,907
----------- ----------- -----------
Contributions:
Employer 149,399 149,399
Employee 129,610 1,875,098
Rollover 2,212 70,382
----------- ----------- -----------
Total contributions 131,731 149,399 2,094,879
Fund transfers 95,154
----------- ----------- -----------
Total additions 255,413 (366,915) 3,068,786
DEDUCTIONS -
Benefit payments 90,505 7,018 1,575,352
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS 164,908 (373,933) 1,493,434
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
BEGINNING OF YEAR 422,154 1,088,104 6,664,695
----------- ----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
END OF YEAR $ 587,062 $ 714,171 $ 8,158,129
=========== =========== ===========
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
4. GUARANTEED INVESTMENT CONTRACTS
The Plan participates in contracts with Connecticut General Life Insurance
Company via investments in the CIGNA Guaranteed Long-Term Account.
Connecticut General Life Insurance Company commingles the assets of the
CIGNA Guaranteed Long-Term Account with other assets. The contracts are
non-fully benefit responsive, with average yields of 5.5%, crediting
interest rates of 5.5% and estimated fair values of $1,993,624 at December
31, 1996.
******
<PAGE>
<TABLE>
<CAPTION>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
ITEM 27a - SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES
DECEMBER 31, 1996
- -------------------------------------------------------------------------------------------------------------------
(a) (b) (c) (d) (e)
Description of Investment,
Identity of Issue, Including Maturity Date,
Borrower, Lessor or Interest Rate, Collateral Fair
Similar Party and Par or Maturity Value Cost Value
<S> <C> <C>
* Connecticut General Life CIGNA Guaranteed Long-Term
Insurance Company Account $1,993,624 $1,993,624
* Connecticut General Life CIGNA Stock Index
Insurance Company 825,028 995,644
* Connecticut General Life Fidelity Advisor Growth
Insurance Company Opportunity 1,479,830 1,747,161
* Connecticut General Life Fidelity Advisor Equity Growth
Insurance Company 1,851,652 2,154,385
* Connecticut General Life Warburg-Pincus International
Insurance Company Equity 220,731 236,193
* Connecticut General Life Lifetime 20
Insurance Company 288,367 318,647
* Connecticut General Life Lifetime 30
Insurance Company 517,232 574,335
* Connecticut General Life Lifetime 40
Insurance Company 302,729 339,181
* Connecticut General Life Lifetime 50
Insurance Company 205,314 230,553
* Merisel, Inc. Common stock 713,187 300,544
* Connecticut General Life
Insurance Company Cash Transaction Account 96,413 96,413
Participant loans Loans to participants, maturities
up to 60 months, 8%-11%
interest 303,928 303,928
<FN>
* Indicates an identified person known to be a party in interest
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT
PURPOSES WHICH WERE BOTH ACQUIRED AND
DISPOSED OF WITHIN THE PLAN YEAR
YEAR ENDED DECEMBER 31, 1996:
- --------------------------------------------------------------------------------------------------------------------
(a) (b) (c) (d)
Description of Investment, Including
Identity of Issuer, Borrower Maturity Date, Rate of Interest, Cost of Proceeds of
Lessor or Similar Party Collateral and Par or Maturity Value Acquisitions Dispositions
<S> <C> <C>
Connecticut General Life Insurance Company CIGNA Guaranteed Long-Term Account $ 713,938 $ 713,938
Connecticut General Life Insurance Company CIGNA Stock Index 1,006,087 1,046,648
Connecticut General Life Insurance Company Fidelity Advisor Growth Opportunity 1,576,898 1,618,570
Connecticut General Life Insurance Company Fidelity Advisor Equity Growth 1,764,246 1,806,129
Connecticut General Life Insurance Company Warburg-Pincus International Equity 286,676 292,060
Connecticut General Life Insurance Company Lifetime 20 248,259 251,171
Connecticut General Life Insurance Company Lifetime 30 476,333 481,985
Connecticut General Life Insurance Company Lifetime 40 466,581 477,439
Connecticut General Life Insurance Company Lifetime 50 321,421 327,861
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1996
- -------------------------------------------------------------------------------------------------------------------
(a) (b) (c) (d) (e)
Total Total Cost
Identity of Party Involved Description of Asset Purchases Sales of Asset
<S> <C> <C> <C>
Merrill Lynch Bond Fund of America $ 547,025 $ 545,292
Merrill Lynch Growth Fund of America 2,440,407 2,370,579
Merrill Lynch Investment Co of America 1,917,363 1,897,426
Merrill Lynch Income Fund of America 1,580,640 1,568,884
Merrill Lynch Merrill Lynch Cash Reserves 587,062 587,062
Connecticut General Life Ins Co CIGNA Guaranteed Long-Term $ 2,595,939 2,595,939
Connecticut General Life Ins Co CIGNA Guaranteed Long-Term 713,938 713,938
Connecticut General Life Ins Co CIGNA Stock Index 1,831,115 1,831,115
Connecticut General Life Ins Co CIGNA Stock Index 1,046,648 1,006,087
Connecticut General Life Ins Co Fidelity Advisor Growth Opportunity 3,056,728 3,056,728
Connecticut General Life Ins Co Fidelity Advisor Growth Opportunity 1,618,570 1,576,898
Connecticut General Life Ins Co Fidelity Advisor Equity Growth 3,615,898 3,615,898
Connecticut General Life Ins Co Fidelity Advisor Equity Growth 1,806,129 1,764,246
Connecticut General Life Ins Co Warburg-Pincus International 507,406 507,406
Connecticut General Life Ins Co Warburg-Pincus International 292,060 286,676
Connecticut General Life Ins Co Lifetime 20 536,625 536,625
Connecticut General Life Ins Co Lifetime 20 251,171 248,259
Connecticut General Life Ins Co Lifetime 30 993,565 993,565
Connecticut General Life Ins Co Lifetime 30 481,985 476,333
Connecticut General Life Ins Co Lifetime 40 769,310 769,310
Connecticut General Life Ins Co Lifetime 40 477,439 466,581
Connecticut General Life Ins Co Lifetime 50 526,735 526,735
Connecticut General Life Ins Co Lifetime 50 327,861 321,421
Merisel, Inc. Merisel, Inc. - common stock 303,152 303,152
Merisel, Inc. Merisel, Inc. - common stock 201,241 297,407
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1996 (Continued)
- -------------------------------------------------------------------------------------------------------------------
(a) (b) (f) (g)
Current Value Net
Identity of Party Involved Description of Asset on Transaction Gain
Date (Loss)
<S> <C> <C>
Merrill Lynch Bond Fund of America $ 547,025 $ (1,733)
Merrill Lynch Growth Fund of America 2,440,407 (69,828)
Merrill Lynch Investment Co of America 1,917,363 (19,937)
Merrill Lynch Income Fund of America 1,580,640 (11,756)
Merrill Lynch Merrill Lynch Cash Reserves 587,062
Connecticut General Life Ins Co CIGNA Guaranteed Long-Term 2,595,939
Connecticut General Life Ins Co CIGNA Guaranteed Long-Term 713,938
Connecticut General Life Ins Co CIGNA Stock Index 1,831,115
Connecticut General Life Ins Co CIGNA Stock Index 1,046,648 40,561
Connecticut General Life Ins Co Fidelity Advisor Growth Opportunity 3,056,728
Connecticut General Life Ins Co Fidelity Advisor Growth Opportunity 1,618,570 41,672
Connecticut General Life Ins Co Fidelity Advisor Equity Growth 3,615,898
Connecticut General Life Ins Co Fidelity Advisor Equity Growth 1,806,128 41,883
Connecticut General Life Ins Co Warburg-Pincus International 507,406
Connecticut General Life Ins Co Warburg-Pincus International 292,060 5,385
Connecticut General Life Ins Co Lifetime 20 536,625
Connecticut General Life Ins Co Lifetime 20 251,171 2,912
Connecticut General Life Ins Co Lifetime 30 993,565
Connecticut General Life Ins Co Lifetime 30 481,985 5,651
Connecticut General Life Ins Co Lifetime 40 769,310
Connecticut General Life Ins Co Lifetime 40 477,439 10,858
Connecticut General Life Ins Co Lifetime 50 526,735
Connecticut General Life Ins Co Lifetime 50 327,861 6,440
Merisel, Inc. Merisel, Inc. - common stock 303,152
Merisel, Inc. Merisel, Inc. - common stock 201,241 (96,166)
<FN>
See accompanying independent auditors' report.
</FN>
</TABLE>
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the plan administrator has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date: January 19, 1998
Merisel, Inc., as plan administrator
By: /s/ James E.Illson
James E. Illson
Senior Vice President, Finance,
Chief Financial Officer and Assistant
Secretary
Ex - 23.1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
[LETTERHEAD OF DELOITTE & TOUCHE LLP]
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
We consent to the incorporation by references in the Registration Statement of
Merisel, Inc. on Form S-8 (relating to the Merisel, Inc. 401(k) Retirement
Savings Plan) of our report dated January 15, 1998 appearing in the Annual
Report on Form 11-K of the Merisel, Inc. 401(k) Retirement Savings Plan for the
year ended December 31, 1996.
/s/Deloitte & Touche, LLP
- --------------------------
Deloitte & Touche LLP
Los Angeles, California
January 20, 1998
