Merisel, Inc.
401(k) Retirement Savings Plan
Financial Statements as of and for the Years Ended December 31, 1998 and
1997, Supplemental Schedules for the Year Ended December 31, 1998 and
Independent Auditors' Report
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MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
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Page
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INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Plan Benefits as of December 31, 1998 and 1997 2
Statements of Changes in Net Assets Available for Plan Benefits for the
Years Ended December 31, 1998 and 1997 3
Notes to Financial Statements 4-12
SUPPLEMENTAL SCHEDULES:
Schedule of Assets Held for Investment Purposes as of December 31, 1998 13
Schedule of Reportable Transactions for the Year Ended December 31, 1998 14
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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,
1998 and 1997, 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, 1998 and 1997, 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, 1998, and (2) reportable
transactions for the year ended December 31, 1998, 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.
Deloitte & Touche, LLP
Los Angeles, California
June 7, 1999
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MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1998 AND 1997
- -------------------------------------------------------------------------------------------------------------------------
1998 1997
------------------- ------------------
<S> <C> <C>
ASSETS:
Investments (Notes 2 and 3):
Cash Transaction Account $498 $162
CIGNA Guaranteed Income Fund 1,814,472 1,766,760
CIGNA Large Company Stock Index Fund 2,147,005 1,504,662
Fidelity Advisor Growth Opportunities Account 3,011,517 2,462,282
Fidelity Advisor Equity Growth Account 3,470,611 2,589,735
Warburg Pincus Advisor International Equity Account 335,687 289,359
CIGNA Lifetime 20 Fund 616,671 439,368
CIGNA Lifetime 30 Fund 850,163 751,343
CIGNA Lifetime 40 Fund 510,156 382,099
CIGNA Lifetime 50 Fund 499,485 433,818
PBHG Growth Account 144,484 74,474
Merisel, Inc. common stock 745,509 1,435,687
Participant loans 333,747 320,584
------------------- ------------------
Total investments 14,480,005 12,450,333
Accounts Receivable - Employer's Contribution 889,321
------------------- ------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $15,369,326 $12,450,333
=================== ==================
See notes to financial statements.
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<CAPTION>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEARS ENDED DECEMBER 31, 1998 AND 1997
- ----------------------------------------------------------------------------
1998 1997
-------------------- --------------------
<S> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income (Notes 1 and 3):
Net appreciation in fair value of investments $1,604,705 $2,180,452
Interest income 103,521 125,580
-------------------- --------------------
Total investment income 1,708,226 2,306,032
-------------------- --------------------
Contributions (Note 2):
Employer 902,671 518,662
Employee 2,707,206 2,038,515
Rollover 74,880 322,503
-------------------- --------------------
Total contributions 3,684,757 2,879,680
-------------------- --------------------
Total additions 5,392,983 5,185,712
-------------------- --------------------
DEDUCTIONS:
Benefit payments 2,454,340 2,014,452
Contract administrator fees 19,650 11,535
-------------------- --------------------
Total deductions 2,473,990 2,025,987
-------------------- --------------------
INCREASE IN NET ASSETS 2,918,993 3,159,725
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
BEGINNING OF YEAR 12,450,333 9,290,608
-------------------- --------------------
END OF YEAR $15,369,326 $12,450,333
==================== ====================
See notes to financial statements.
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MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
- ----------------------------------------------------------------------------
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 $10,000 or 15% of the participant's annual compensation. Participants
may also make rollover contributions from other qualified plans. The
amount of the Company matching contributions is determined by the Board of
Directors at its discretion.
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 $13,371 and $59,743 for participants
who are no longer employed by the Company as of December 31, 1998 and
1997, 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.
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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 account values.
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. The term of
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 loans bear interest at the rate of two percent above the
prime rate as 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, 1998 and 1997 are presented below.
Investments that represent more than 5% of net assets are indicated by an
asterisk (*) below:
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Investments at fair value as of December 31, 1998 and 1997:
Non-
Participant- Participant-
Directed Directed
1998 Funds Fund Total
------------------- -------------------- --------------------
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Investments:
Cash Transaction Account $498 $498
* CIGNA Guaranteed Income Fund 1,814,472 1,814,472
* CIGNA Large Company Stock Index Fund 2,147,005 2,147,005
* Fidelity Advisor Growth Opportunities Fund 3,011,517 3,011,517
* Fidelity Advisor Equity Growth Account 3,470,611 3,470,611
Warburg Pincus International Equity Account 335,687 335,687
CIGNA Lifetime 20 Fund 616,671 616,671
* CIGNA Lifetime 30 Fund 850,163 850,163
CIGNA Lifetime 40 Fund 510,156 510,156
CIGNA Lifetime 50 Fund 499,485 499,485
PBHG Growth Account 144,484 144,484
Merisel, Inc. common stock 347,416 $398,093 745,509
Participant loans 333,747 333,747
------------------- -------------------- --------------------
Total investments $14,081,912 $398,093 $14,480,005
=================== ==================== ====================
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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
================== =================== ===================
o Investments represents 5 percent or more of the net assets available for benefits at the end of the Plan year.
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Changes in net assets available for plan benefits for the year ended
December 31, 1998:
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 $1,264 $439,972 $577,447 $952,717 $9,922
Interest income 103,521
-------------- -------------- --------------- ----------------- -----------------
Total investment (loss) income 104,785 439,972 577,447 952,717 9,922
-------------- -------------- --------------- ----------------- -----------------
Contributions:
Employer
Employee 319,756 461,846 583,812 571,066 132,412
Rollover 4,967 24,596 13,767 8,896 85
-------------- -------------- --------------- ----------------- -----------------
Total contributions 324,723 486,442 597,579 579,962 132,497
-------------- -------------- --------------- ----------------- -----------------
Fund transfers 74,079 1,914 (55,088) 1,399 (4,107)
-------------- -------------- --------------- ----------------- -----------------
Total additions 503,587 928,328 1,119,938 1,534,078 138,312
-------------- -------------- --------------- ----------------- -----------------
DEDUCTIONS:
Benefit payments (returns) 449,235 283,113 568,263 651,845 91,754
Contract administrator fees 6,640 2,872 2,440 1,357 230
-------------- -------------- --------------- ----------------- -----------------
Total deductions 455,875 285,985 570,703 653,202 91,984
-------------- -------------- --------------- ----------------- -----------------
(DECREASE) INCREASE
IN NET ASSETS 47,712 642,343 549,235 880,876 46,328
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 1,766,760 1,504,662 2,462,282 2,589,735 289,359
-------------- -------------- --------------- ----------------- -----------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $1,814,472 $2,147,005 $3,011,517 $3,470,611 $335,687
============== ============== =============== ================= =================
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CIGNA Lifetime Funds PBHG
-------------------------------------------------------------- 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 $68,089 $103,152 $56,475 $56,200 $4,392
Interest income
------------- --------------- --------------- ---------------- ----------------
Total investment (loss) 68,089 103,152 56,475 56,200 4,392
income
------------- --------------- --------------- ---------------- ----------------
Contributions:
Employer
Employee 186,695 192,405 102,234 55,438 80,302
Rollover 11,503 5,631 1,715 350 487
------------- --------------- --------------- ---------------- ----------------
Total contributions 198,198 198,036 103,949 55,788 80,789
------------- --------------- --------------- ---------------- ----------------
Fund transfers (19,155) 10,633 (8,133) (9,626) (3,160)
------------- --------------- --------------- ---------------- ----------------
Total additions 247,132 311,821 152,291 102,362 82,021
------------- --------------- --------------- ---------------- ----------------
DEDUCTIONS:
Benefit payments (returns) 67,913 211,167 23,692 36,337 11,842
Contract administrator fees 1,916 1,834 542 358 169
------------- --------------- --------------- ---------------- ----------------
Total deductions 69,829 213,001 24,234 36,695 12,011
------------- --------------- --------------- ---------------- ----------------
(DECREASE) INCREASE
IN NET ASSETS 177,303 98,820 128,057 65,667 70,010
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 439,368 751,343 382,099 433,818 74,474
------------- --------------- --------------- ---------------- ----------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $616,671 $850,163 $510,156 $499,485 $144,484
============= =============== =============== ================ ================
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Accounts
Merisel Receivable - Cash
Common Employer Transaction Participant
Stock Match Account Loans Total
------------ --------------- --------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss) income:
Net (depreciation)appreciation
in fair value of investments $(664,925) $1,604,705
Interest income 103,521
------------ --------------- --------------- ---------------- ----------------
Total investment (loss) income (664,925) 1,708,226
------------ --------------- --------------- ---------------- ----------------
Contributions:
Employer 13,350 $889,321 902,671
Employee 188,234 $498 $(167,492) 2,707,206
Rollover 2,883 74,880
------------ --------------- --------------- ---------------- ----------------
Total contributions 204,467 889,321 498 (167,492) 3,684,757
------------ --------------- --------------- ---------------- ----------------
Fund transfers 11,406 (162)
------------ --------------- --------------- ---------------- ----------------
Total additions (449,052) 889,321 336 (167,492) 5,392,983
------------ --------------- --------------- ---------------- ----------------
DEDUCTIONS:
Benefit payments (returns) 239,834 (180,655) 2,454,340
Contract administrator fees 1,292 19,650
------------ --------------- --------------- ---------------- ----------------
Total deductions 241,126 (180,655) 2,473,990
------------ --------------- --------------- ---------------- ----------------
(DECREASE) INCREASE
IN NET ASSETS (690,178) 889,321 336 13,163 2,918,993
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 1,435,687 162 320,584 12,450,333
------------ --------------- --------------- ---------------- ----------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $745,509 $889,321 $498 $333,747 $15,369,326
============ =============== =============== ================ ================
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<CAPTION>
Changes in net assets available for plan benefits for the year ended
December 31, 1997:
Fidelity Fidelity Warburg
Guaranteed Stock Advisor Advisor Pincus CIGNA Lifetime Funds
Income Index Growth Equity International --------------------------
Fund Fund Opportunities Growth Equity 20 30
------ ---- ------------- ------ ------ -- --
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss) income:
Net (depreciation)appreciation
appreciation in fair value
of investments $2,745 $337,305 $523,211 $511,396 $(19,039) $54,498 $100,746
Interest income 106,485 2,440 5,427 5,811 548 451 1,330
---------------------------------------------------------------------------------------------------
Total investment (loss) 109,230 339,745 528,638 517,207 (18,491) 54,949 102,076
income
---------------------------------------------------------------------------------------------------
Contributions:
Employer 10,864 71 71 107 71
Employee 307,088 283,127 467,670 510,262 106,335 129,558 138,767
Rollover 4,656 56,680 17,705 7,749 6,839 6,206
---------------------------------------------------------------------------------------------------
Total contributions 322,608 339,878 485,446 518,118 113,174 129,629 144,973
---------------------------------------------------------------------------------------------------
Fund transfers 20,701 37,734 48,815 (20,990) 8,297 (4,491) (6,388)
---------------------------------------------------------------------------------------------------
Total additions 452,539 717,357 1,062,899 1,014,335 102,980 180,087 240,661
---------------------------------------------------------------------------------------------------
DEDUCTIONS:
Benefit payments 674,207 206,870 346,491 578,105 49,691 58,441 62,691
(returns)
Contract administrator 5,196 1,469 1,287 880 123 925 962
fees
---------------------------------------------------------------------------------------------------
Total deductions 679,403 208,339 347,778 578,985 49,814 59,366 63,653
---------------------------------------------------------------------------------------------------
(DECREASE) INCREASE
IN NET ASSETS (226,864) 509,018 715,121 435,350 53,166 120,721 177,008
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 1,993,624 995,644 1,747,161 2,154,385 236,193 318,647 574,335
---------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $1,766,760 $1,504,662 $2,462,282 $2,589,735 $289,359 $439,368 $751,343
===================================================================================================
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<CAPTION>
CIGNA Lifetime Funds PBHG Merisel Cash
--------------------------- Growth Common Transaction Participant
40 50 Account Stock Account Loans Total
-- -- ------- ----- ------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment (loss)income:
Net (depreciation)
appreciation in fair value
of investments $49,904 $41,507 $(1,018) $579,197 $2,180,452
Interest income 1,364 543 5 1,176 125,580
---------------------------------------------------------------------------------------------------
Total investment (loss) 51,268 42,050 (1,013) 580,373 2,306,032
income
---------------------------------------------------------------------------------------------------
Contributions:
Employer 507,478 518,662
Employee 55,512 30,904 28,652 99,185 $119 $(118,664) 2,038,515
Rollover 40,127 150,470 7,394 24,677 322,503
---------------------------------------------------------------------------------------------------
Total contributions 95,639 181,374 36,046 631,340 119 (118,664) 2,879,680
---------------------------------------------------------------------------------------------------
Fund transfers (31,953) (15,444) 42,247 17,842 (96,370)
---------------------------------------------------------------------------------------------------
Total additions 114,954 207,980 77,280 1,229,555 (96,251) (118,664) 5,185,712
---------------------------------------------------------------------------------------------------
DEDUCTIONS:
Benefit payments 71,756 4,610 2,768 94,142 (135,320) 2,014,452
(returns)
Contract administrator 280 105 38 270 11,535
fees
---------------------------------------------------------------------------------------------------
Total deductions 72,036 4,715 2,806 94,412 (135,320) 2,025,987
---------------------------------------------------------------------------------------------------
(DECREASE) INCREASE
IN NET ASSETS 42,918 203,265 74,474 1,135,143 (96,251) 16,656 3,159,795
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
BEGINNING OF YEAR 339,181 230,553 300,544 96,413 303,928 9,290,608
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
END OF YEAR $382,099 $433,818 $74,474 $1,435,687 $162 $320,584 $12,450,333
===================================================================================================
</TABLE>
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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 5.7%, crediting
interest rates of 5.7% and 5.7% for 1998 and 1997, respectively, and
estimated fair values of $1,814,472 at December 31, 1998 and $1,766,760 at
December 31, 1997.
5. 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:
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<CAPTION>
December 31,
----------------------------------------
1998 1997
---- ----
<S> <C> <C>
Net assets available for benefits per the financial statements $15,369,326 $12,450,333
Accounts receivable - employer contribution (889,321)
------------------- ------------------
Net assets available for benefits per the Form 5500 $14,480,005 $12,450,333
=================== ==================
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******
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<CAPTION>
MERISEL, INC.
401 (k) RETIREMENT SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
- ------------------------------------------------------------------------------------------------------------------------
(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> <C>
* Connecticut General Life Cash Transaction Account (GST) $498 $498
Insurance Company
* Connecticut General Life CIGNA Guaranteed Income Fund 1,814,472 1,814,472
Insurance Company
* Connecticut General Life CIGNA Large Company Stock Index 1,394,525 2,147,005
Insurance Company Fund
* Connecticut General Life Fidelity Advisor Growth Opportunities 1,936,557 3,011,517
Insurance Company Account
* Connecticut General Life Fidelity Advisor Equity Growth Account 2,094,717 3,470,611
Insurance Company
* Connecticut General Life Warburg Pincus Advisor International 335,472 335,687
Insurance Company Equity Account
* Connecticut General Life CIGNA Lifetime 20 Fund 494,932 616,671
Insurance Company
* Connecticut General Life CIGNA Lifetime 30 Fund 646,002 850,163
Insurance Company
* Connecticut General Life CIGNA Lifetime 40 Fund 389,390 510,156
Insurance Company
* Connecticut General Life CIGNA Lifetime 50 Fund 391,294 499,485
Insurance Company
* Connecticut General Life PBHG Growth Account 141,296 144,484
Insurance Company
* Merisel, Inc. Merisel, Inc. common stock 1,041,765 745,509
* Participant loans Loans to participants, maturities up
to 60 months, 8%-11% interest 333,747
* Indicates an identified person known to be a party in interest.
</TABLE>
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<CAPTION>
MERISEL, INC.
401(k) RETIREMENT SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1998
- ----------------------------------------------------------------------------------------------------------------------------------
(a) (b) (c) (d) (g)
Purchases Selling Cost
Identity of Party Involved Description of Asset Price Price of Asset
-------------------------- -------------------- ----- ----- --------
<S> <C> <C> <C> <C>
Connecticut General Life Insurance CIGNA Guaranteed Income Fund $582,183 Not applicable $582,183
Company
Connecticut General Life Insurance CIGNA Guaranteed Income Fund Not applicable $637,992 637,992
Company
Connecticut General Life Insurance CIGNA Stock Market Index Account 623,224 Not applicable 623,224
Company
Connecticut General Life Insurance CIGNA Stock Market Index Account Not applicable 423,274 291,786
Company
Connecticut General Life Insurance Fidelity Advisor Growth 640,625 Not applicable 640,625
Company Opportunities
Connecticut General Life Insurance Fidelity Advisor Growth Not applicable 670,639 470,133
Company Opportunities
Connecticut General Life Insurance Fidelity Advisor Equity Growth 708,463 Not applicable 708,463
Company
Connecticut General Life Insurance Fidelity Advisor Equity Growth Not applicable 779,288 544,756
Company
Merisel, Inc. Common Stock 770,276 Not applicable 770,276
Merisel, Inc. Common Stock Not applicable 358,919 470,694
</TABLE>
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<CAPTION>
(a) (b) (h) (i)
Current Value Net
Transaction Gain
Identity of Party Involved Description of Asset Date (Loss)
-------------------------- -------------------- ---- ------
<S> <C> <C> <C>
Connecticut General Life Insurance CIGNA Guaranteed Income Fund $582,183
Company
Connecticut General Life Insurance CIGNA Guaranteed Income Fund 637,992
Company
Connecticut General Life Insurance CIGNA Stock Market Index Account 623,224
Company
Connecticut General Life Insurance CIGNA Stock Market Index Account 423,274 $131,488
Company
Connecticut General Life Insurance Fidelity Advisor Growth 640,625
Company Opportunities
Connecticut General Life Insurance Fidelity Advisor Growth 670,639 200,506
Company Opportunities
Connecticut General Life Insurance Fidelity Advisor Equity Growth 708,463
Company
Connecticut General Life Insurance Fidelity Advisor Equity Growth 779,288 234,532
Company
Merisel, Inc. 770,276
Merisel, Inc. 358,919 (111,775)
</TABLE>
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date: June 18, 1999 Merisel, Inc. 401(k) Retirement Savings Plan
--------------------------------------------
(Name of plan)
By /s/Timothy N. Jenson
------------------------------
Timothy N. Jenson
Senior Vice President, Finance
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 7, 1999, appearing in this Annual Report on
Form 11-K of the Merisel, Inc. 401(k) Retirement Savings Plan for the year ended
December 31, 1998.
/s/Deloitte & Touche, LLP
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Deloitte & Touche, LLP
Los Angeles, California
June 24, 1999
