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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, 1997
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, 1997 and 1996 2
Statements of Changes in Net Assets Available for Plan
Benefits for the Years Ended December 31, 1997 and 1996 3
Notes to Financial Statements 4-13
SUPPLEMENTAL SCHEDULES:
Schedule of Assets Held for Investment Purposes as of
December 31, 1997 14
Schedule of Reportable Transactions for the Year Ended
December 31, 1997 15
<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,
1997 and 1996, 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, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 1997 and 1996, and the changes in net assets available for plan
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of (1) assets
held for investment purposes as of December 31, 1997, and (2) reportable
transactions for the year ended December 31, 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. These supplemental schedules are the
responsibility of the Plan's management. 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.
June 23, 1998
<PAGE>
<TABLE>
<CAPTION>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1997 AND 1996
- ------------------------------------------------------------------------------------------------------------------------
1997 1996
<S> <C> <C>
ASSETS:
Investments (Notes 2 and 3):
Cash Transaction Account $ 162 $ 96,413
CIGNA Guaranteed Income Fund 1,766,760 1,993,624
CIGNA Large Company Stock Index Fund 1,504,662 995,644
Fidelity Advisor Growth Opportunities Account 2,462,282 1,747,161
Fidelity Advisor Equity Growth Account 2,589,735 2,154,385
Warburg Pincus Advisor International Equity Account 289,359 236,193
CIGNA Lifetime 20 Fund 439,368 318,647
CIGNA Lifetime 30 Fund 751,343 574,335
CIGNA Lifetime 40 Fund 382,099 339,181
CIGNA Lifetime 50 Fund 433,818 230,553
PBHG Growth Account 74,474
Merisel, Inc. common stock 1,435,687 300,544
Participant loans 320,584 303,928
----------- -----------
Total investments 12,450,333 9,290,608
----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $12,450,333 $ 9,290,608
=========== ===========
See notes to financial statements.
</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, 1997 AND 1996
- -------------------------------------------------------------------------------------------------------------------------
1997 1996
<S> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income (Notes 1 and 3):
Net appreciation in fair value of investments $ 2,180,452 $ 426,354
Interest income 125,580 132,983
----------- -----------
Total investment income 2,306,032 559,337
----------- -----------
Contributions (Note 2):
Employer 518,662 95,453
Employee 2,038,515 2,315,337
Rollover 322,503 34,910
----------- -----------
Total contributions 2,879,680 2,445,700
----------- -----------
Total additions 5,185,712 3,005,037
----------- -----------
DEDUCTIONS:
Benefit payments 2,014,452 1,856,023
Contract administrator fees 11,535 16,535
----------- -----------
Total deductions 2,025,987 1,872,558
----------- -----------
INCREASE IN NET ASSETS 3,159,725 1,132,479
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
BEGINNING OF YEAR 9,290,608 8,158,129
----------- -----------
END OF YEAR $12,450,333 $ 9,290,608
============= ============
See notes to financial statements.
</TABLE>
<PAGE>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
- -------------------------------------------------------------------------------
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.
Participant contributions are invested in any of ten available investment
funds or Company common stock, as directed by the participant. Company
contributions are invested as directed by 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. Net assets
available for plan benefits included $59,743 and $134,835 for participants
who are no longer employed by the Company as of December 31, 1997 and
1996, respectively.
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
<PAGE>
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 may not exceed five years, except where the proceeds of the loan are
used to purchase the principal residence of the participant. The loan will
bear interest at the rate of two percent points more than the prime rate
published in the Wall Street Journal on the day the loan is made.
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 Income
Fund 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, 1997 and 1996 are presented below.
Investments that represent more than 5% of net assets are indicated by an
asterisk (*) below:
<PAGE>
<TABLE>
<CAPTION>
Investments at fair value as of December 31, 1997 and 1996:
Non-
Participant- Participant-
Directed Directed
1997 Funds Fund Total
<S> <C> <C> <C>
Investments:
Cash Transaction Account $ 162 $ 162
*CIGNA Guaranteed Income Fund 1,766,760 1,766,760
*CIGNA Large Company Stock Index Fund 1,504,662 1,504,662
*Fidelity Advisor Growth Opportunities Fund 2,462,282 2,462,282
*Fidelity Advisor Equity Growth Account 2,589,735 2,589,735
Warburg Pincus International Equity Account 289,359 289,359
CIGNA Lifetime 20 Fund 439,368 439,368
*CIGNA Lifetime 30 Fund 751,343 751,343
CIGNA Lifetime 40 Fund 382,099 382,099
CIGNA Lifetime 50 Fund 433,818 433,818
PBHG Growth Account 74,474 74,474
*Merisel, Inc. common stock 473,039 $ 962,648 1,435,687
Participant loans 320,584 320,584
------------ ------------ ------------
Total investments $11,487,685 $ 962,648 $12,450,333
============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
Non-
Participant- Participant-
Directed Directed
Funds Fund Total
1996
<S> <C> <C> <C>
Investments:
Cash Transaction Account $ 96,413 $ 96,413
*CIGNA Guaranteed Income Fund 1,993,624 1,993,624
*CIGNA Large Company Stock Index Fund 995,644 995,644
*Fidelity Advisor Growth Opportunities Account 1,747,161 1,747,161
*Fidelity Advisor Equity Growth Account 2,154,385 2,154,385
Warburg Pincus International Equity 236,193 236,193
CIGNA Lifetime 20 Fund 318,647 318,647
*CIGNA Lifetime 30 Fund 574,335 574,335
CIGNA Lifetime 40 Fund 339,181 339,181
CIGNA Lifetime 50 Fund 230,553 230,553
Merisel, Inc. common stock 150,656 $ 149,888 300,544
Participant loans 303,928 303,928
-------------- -------------- ---------------
Total investments $ 9,140,720 $ 149,888 $ 9,290,608
============== ============== ===============
* Investments represents 5 percent or more of the net assets available for benefits at the end of the Plan
year.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended
December 31, 1997:
Fidelity Fidelity Warburg
Guaranteed Stock Advisor Advisor Pincus
Income Index Growth Equity International
Fund Fund Opportunities Growth Equity
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss) income:
Net (depreciation)appreciation
in fair value of investments $ 2,745 $ 337,305 $ 523,211 $ 511,396 $ (19,039)
Interest income 106,485 2,440 5,427 5,811 548
----------- ----------- ----------- ----------- -----------
Total investment (loss)income 109,230 339,745 528,638 517,207 (18,491)
----------- ----------- ----------- ----------- -----------
Contributions:
Employer 10,864 71 71 107
Employee 307,088 283,127 467,670 510,262 106,335
Rollover 4,656 56,680 17,705 7,749 6,839
----------- ----------- ----------- ----------- -----------
Total contributions 322,608 339,878 485,446 518,118 113,174
----------- ----------- ----------- ----------- -----------
Fund transfers 20,701 37,734 48,815 (20,990) 8,297
----------- ----------- ----------- ----------- -----------
Total additions 452,539 717,357 1,062,899 1,014,335 102,980
----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Benefit payments (returns) 674,207 206,870 346,491 578,105 49,691
Contract administrator fees 5,196 1,469 1,287 880 123
----------- ----------- ----------- ----------- -----------
Total deductions 679,403 208,339 347,778 578,985 49,814
----------- ----------- ----------- ----------- -----------
(DECREASE) INCREASE
IN NET ASSETS (226,864) 509,018 715,121 435,350 53,166
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 1,993,624 995,644 1,747,161 2,154,385 236,193
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ 1,766,760 $ 1,504,662 $ 2,462,282 $ 2,589,735 $ 289,359
=========== =========== =========== ============ =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PBHG
CIGNA Lifetime Funds Growth
20 30 40 50 Account
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss) income:
Net (depreciation)appreciation
in fair value of investments $ 54,498 $ 100,746 $ 49,904 $ 41,507 $ (1,018)
Interest income 451 1,330 1,364 543 5
--------- --------- --------- --------- ---------
Total investment (loss)income 54,949 102,076 51,268 42,050 (1,013)
--------- --------- --------- --------- ---------
Contributions:
Employer 71
Employee 129,558 138,767 55,512 30,904 28,652
Rollover 6,206 40,127 150,470 7,394
--------- --------- --------- --------- ---------
Total contributions 129,629 144,973 95,639 181,374 36,046
--------- --------- --------- --------- ---------
Fund transfers (4,491) (6,388) (31,953) (15,444) 42,247
--------- --------- --------- --------- ---------
Total additions 180,087 240,661 114,954 207,980 77,280
--------- --------- --------- --------- ---------
DEDUCTIONS:
Benefit payments (returns) 58,441 62,691 71,756 4,610 2,768
Contract administrator fees 925 962 280 105 38
--------- --------- --------- --------- ---------
Total deductions 59,366 63,653 72,036 4,715 2,806
--------- --------- --------- --------- ---------
(DECREASE) INCREASE
IN NET ASSETS 120,721 177,008 42,918 203,265 74,474
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 318,647 574,335 339,181 230,553
--------- --------- --------- ---------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ 439,368 $ 751,343 $ 382,099 $ 433,818 $ 74,474
========= ========= ========= ========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Merisel Cash
Common Transaction Participant
Stock Account Loans Total
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss) income:
Net (depreciation)appreciation
in fair value of investments $ 579,197 $ 2,180,452
Interest income 1,176 125,580
----------- -----------
Total investment (loss)income 580,373 2,306,032
----------- -----------
Contributions:
Employer 507,478 518,662
Employee 99,185 $ 119 $ (118,664) 2,038,515
Rollover 24,677 322,503
----------- ----------- ----------- -----------
Total contributions 631,340 119 (118,664) 2,879,680
----------- ----------- ----------- -----------
Fund transfers 17,842 (96,370)
----------- ----------- ----------- -----------
Total additions 1,229,555 (96,251) (118,664) 5,185,712
----------- ----------- ----------- -----------
DEDUCTIONS:
Benefit payments (returns) 94,142 (135,320) 2,014,452
Contract administrator fees 270 11,535
----------- ----------- ------------ -----------
Total deductions 94,412 (135,320) 2,025,987
----------- ----------- ------------ -----------
(DECREASE) INCREASE
IN NET ASSETS 1,135,143 (96,251) 16,656 3,159,725
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 300,544 96,413 303,928 9,290,608
----------- ----------- ----------- -----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ 1,435,687 $ 162 $ 320,584 $12,450,333
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Changes in net assets available for plan benefits for the year ended
December 31, 1996:
Merrill
Investment Income Lynch Guaranteed Stock
Bond Fund Growth Fund Co of Fund of Cash Income Index
of America Of America America America Reserves Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss) income:
Net (depreciation) appreciation
in fair value of investments $ (1,733) $ (81,807) $ (28,236) $ (11,756) $ 2,275 $ 205,749
Interest income $ 114,574
---------- ------------ ------------ ------------ ---------- --------- -------
Total investment (loss)income (1,733) (81,807) (28,236) (11,756) 2,275 114,574 205,749
---------- -------
Contributions:
Employer 45,380 6,528
Employee 308,044 291,753
Rollover ---------- -------
Total contributions 353,424 298,281
----------- ----------
Fund transfers (545,292) (2,346,671) (1,880,828) (1,568,884) (588,277) 2,142,845 673,302
---------- ------------ ------------ ------------ ---------- --------- -------
Total additions (547,025) (2,428,478) (1,909,064) (1,580,640) (586,002) 2,610,843 1,177,332
---------- ------------ ------------ ------------ ---------- --------- -------
DEDUCTIONS:
Benefit payments (returns) 11,929 8,299 1,060 612,268 180,796
Contract administrator fees 4,951 892
---------- ------------ ------------ ------------ ---------- --------- -------
Total deductions 11,929 8,299 1,060 617,219 181,688
---------- ------------ ------------ ------------ ---------- --------- -------
(DECREASE) INCREASE
IN NET ASSETS (547,025) (2,440,407) (1,917,363) (1,580,640) (587,062) 1,993,624 995,644
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 $ $ $ $ $ $ 1,993,624 $ 995,644
============ ============ ============ =========== ========== ============ =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Fidelity Fidelity
Advisor Advisor Warburg
Growth Equity Pincus Int'l CIGNA Lifetime Funds
Opp Growth Equity 20 30 40 50
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss)income:
Net (depreciation) appreciation
in fair value of investments $ 299,645 $ 332,287 $ 20,652 $ 32,755 $ 60,072 $ 44,408 $ 28,533
Interest income
--------- --------- --------- --------- --------- --------- ---------
Total investment (loss) income 299,645 332,287 20,652 32,755 60,072 44,408 28,533
--------- --------- --------- --------- --------- --------- ---------
Contributions:
Employer 13,212 12,859 1,596 2,233 4,052 1,941 1,247
Employee 511,200 583,844 101,538 118,572 155,731 73,337 29,336
Rollover
--------- --------- --------- --------- --------- --------- ---------
Total contributions 524,412 596,703 103,134 120,805 159,783 75,278 30,583
--------- --------- --------- --------- --------- --------- ---------
Fund transfers 1,198,758 1,495,884 197,568 202,115 384,432 345,322 245,359
--------- --------- --------- --------- --------- --------- ---------
Total additions 2,022,815 2,424,874 321,354 355,675 604,287 465,008 304,475
--------- --------- --------- --------- --------- --------- ---------
DEDUCTIONS:
Benefit payments (returns) 274,376 269,674 84,963 36,250 28,856 125,411 73,716
Contract administrator fees 1,278 815 198 778 1,096 416 206
--------- --------- --------- --------- --------- --------- ---------
Total deductions 275,654 270,489 85,161 37,028 29,952 125,827 73,922
--------- --------- --------- --------- --------- --------- ---------
(DECREASE) INCREASE
IN NET ASSETS 1,747,161 2,154,385 236,193 318,647 574,335 339,181 230,553
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR
--------- --------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ 1,747,161 $ 2,154,385 $ 236,193 $ 318,647 $ 574,335 $ 339,181 $ 230,553
========= ========= ========= ========= ========= ========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Merisel Cash
Common Transaction Participant Plan
Stock Account Loans Receivables Total
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss) income:
Net (depreciation) appreciation
in fair value of investments $ (476,490) $ 426,354
Interest income $ 18,409 132,983
----------- ----------- ------------
Total investment (loss)income (476,490) 18,409 559,337
----------- ----------- ------------
Contributions:
Employer 5,710 $ 695 95,453
Employee 80,451 61,531 2,315,337
Rollover 34,910 34,910
----------- ----------- ------------
Total contributions 86,161 97,136 2,445,700
----------- ----------- -----------
Fund transfers 121,596 (138,934) 68,191 $ (6,486)
----------- ----------- ----------- -----------
Total additions (268,733) (41,798) 86,600 (6,486) 3,005,037
----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Benefit payments (returns) 138,989 (19,280) 28,716 1,856,023
Contract administrator fees 5,905 16,535
----------- ----------- ----------- ----------- -----------
Total deductions 144,894 (19,280) 28,716 1,872,558
----------- ----------- ----------- ----------- -----------
(DECREASE) INCREASE
IN NET ASSETS (413,627) (22,518) 57,884 (6,486) 1,132,479
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 714,171 118,931 246,044 6,486 8,158,129
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $ 300,544 $ 96,413 $ 303,928 $ $ 9,290,608
=========== =========== =========== =========== ===========
</TABLE>
<PAGE>
4. GUARANTEED INVESTMENT CONTRACTS
The Plan participates in contracts with Connecticut General Life Insurance
Company via investments in the CIGNA Guaranteed Income Fund. Connecticut
General Life Insurance Company commingles the assets of the CIGNA
Guaranteed Income Fund with other assets. The contracts are non-fully
benefit responsive, with average yields of 5.7% and 5.5%, crediting
interest rates of 5.7% and 5.5% for 1997 and 1996, respectively, and
estimated fair values of $1,766,760 at December 31, 1997 and $1,993,624 at
December 31, 1996.
<PAGE>
<TABLE>
<CAPTION>
MERISEL, INC.
401 (k) RETIREMENT SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES
DECEMBER 31, 1997
- -----------------------------------------------------------------------------------------------------------------------
(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 Cash Transaction Account (GST) $ 162 $ 162
Insurance Company
* Connecticut General Life CIGNA Guaranteed Income Fund 1,766,760 1,766,760
Insurance Company
* Connecticut General Life CIGNA Large Company Stock Index 1,063,087 $ 1,504,662
Insurance Company Fund
* Connecticut General Life Fidelity Advisor Growth Opportunities 1,766,064 2,462,282
Insurance Company Account
* Connecticut General Life Fidelity Advisor Equity Growth Account 1,931,010 2,589,735
Insurance Company
* Connecticut General Life Warburg Pincus Advisor International 298,014 289,359
Insurance Company Equity Account
* Connecticut General Life CIGNA Lifetime 20 Fund 366,511 439,368
Insurance Company
* Connecticut General Life CIGNA Lifetime 30 Fund 606,764 751,343
Insurance Company
* Connecticut General Life CIGNA Lifetime 40 Fund 311,143 382,099
Insurance Company
* Connecticut General Life CIGNA Lifetime 50 Fund 369,550 433,818
Insurance Company
* Connecticut General Life PBHG Growth Account 75,959 74,474
Insurance Company
* Merisel, Inc. Merisel, Inc. common stock 742,183 1,435,687
* Participant loans Loans to participants, maturities up
to 60 months, 8%-11% interest 320,584 320,584
* Indicates an identified person known to be a party in interest.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
- -----------------------------------------------------------------------------------------------------------------------------------
(a) (b) (c) (d) (g) (h) (i)
Current Value Net
Purchases Selling Cost on Transaction Gain
Identity of Party Involved Description of Asset Price Price of Asset Date (Loss)
<S> <C> <C> <C> <C> <C>
Connecticut General Life CIGNA Guaranteed Long-Term $ 462,312 Not applicable $ 462,312 $ 462,312 $ -
Insurance Company Fund
Connecticut General Life CIGNA Guaranteed Long-Term Not applicable $ 790,895 790,895 790,895
Insurance Company Fund
Connecticut General Life CIGNA Stock Market Index 424,053 Not applicable 424,053 424,053
Insurance Company Account
Connecticut General Life CIGNA Stock Market Index Not applicable 251,338 185,994 251,338 65,344
Insurance Company Account
Connecticut General Life Fidelity Advisor Growth 598,956 Not applicable 598,956 598,956
Insurance Company Opportunities
Connecticut General Life Fidelity Advisor Growth Not applicable 405,487 312,721 405,487 92,765
Insurance Company Opportunities
Connecticut General Life Fidelity Advisor Equity Growth 666,490 Not applicable 666,490 666,490
Insurance Company
Connecticut General Life Fidelity Advisor Equity Growth Not applicable 738,932 587,132 738,932 151,801
Insurance Company
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Ex - 23.1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
[LETTERHEAD OF DELOITTE & TOUCHE LLP]
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
333-44605 on Form S-8 of our report relating to the Merisel, Inc. 401(k)
Retirement Savings Plan, dated June 23, 1998, appearing in this Annual Report on
Form 11-K of the Merisel, Inc.
401(k) Retirement Savings Plan for the year ended December 31, 1997.
/s/Deloitte & Touche, LLP
- -----------------------------------
Deloitte & Touche, LLP
Los Angeles, California
June 29, 1998
