-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UkIAYgk7cpyzS3j0gRXnHVOuFR0wASniTF5JCpXP5ZmzEO3HK8jZu7Igr8yIjTop SIA4uZfOTiX6qDpxDlHZ3w== 0000722487-00-000011.txt : 20000404 0000722487-00-000011.hdr.sgml : 20000404 ACCESSION NUMBER: 0000722487-00-000011 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 20000403 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMDISCO INC CENTRAL INDEX KEY: 0000722487 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER RENTAL & LEASING [7377] IRS NUMBER: 362687938 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-07725 FILM NUMBER: 592228 BUSINESS ADDRESS: STREET 1: 6111 N RIVER RD CITY: ROSEMONT STATE: IL ZIP: 60018 BUSINESS PHONE: 8476983000 MAIL ADDRESS: STREET 1: 6111 NOTH RIVER ROAD STREET 2: 6111 NOTH RIVER ROAD CITY: ROSEMONT STATE: IL ZIP: 60018 11-K 1 COMDISCO RETIREMENT PLAN FINANCIALS COMDISCO RETIREMENT PLAN FINANCIAL STATEMENTS Years Ended September 30, 1999 and 1998 TABLE OF CONTENTS Page Number ------ INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS Statements of Net Assets Available for Benefits - September 30, 1999 and 1998 2 Statement of Changes in Net Assets Available for Benefits, with Fund Information - Year Ended September 30, 1999 3-4 Statement of Changes in Net Assets Available for Benefits, with Fund Information - Year Ended September 30, 1998 5-8 Notes to Financial Statements 9-16 INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION 17 SUPPLEMENTARY INFORMATION Schedule of Assets Held for Investment Purposes - September 30, 1999 18 Schedule of Assets Held for Investment Purposes - September 30, 1998 19 Schedule of Assets Held for Investment Purposes Which Were Both Acquired and Disposed Within the Plan Year - Year Ended September 30, 1998 20 (David J. Miller & Associates, LLP Letterhead) INDEPENDENT AUDITOR'S REPORT To the Trustees of the Comdisco Retirement Plan We have audited the accompanying statements of net assets available for benefits of the Comdisco Retirement Plan as of September 30, 1999 and 1998 and the related statements of changes in net assets available for benefits, with fund information for the years then ended. These financial statement are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of September 30, 1999 and 1998, and the changes in net assets available for benefits, with fund information for the years then ended in conformity with generally accepted accounting principles. /s/ David J. Miller & Associates, LLP Deerfield, Illinois January 21, 2000 COMDISCO RETIREMENT PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS September 30, 1999 and 1998 1999 1998 ---------- ----------------------------------------- Non Participant Participant Participant Directed Directed Directed Total ------------ ----------- ------------ ------------ Assets Investments Employer securities Comdisco common stock ....................... $ 21,839,252 $ 12,235,026 $ -- $ 12,235,026 Comdisco common stock (transferred from ESOP) 58,985,319 -- -- -- Registered investment companies Putnam International Growth ................. 11,147,679 7,291,804 -- 7,291,804 The George Putnam Fund of Boston ............ 4,983,752 4,531,999 -- 4,531,999 The Putnam Fund for Growth and Income ....... 12,750,509 11,302,703 -- 11,302,703 Putnam Income ............................... 4,820,633 5,665,292 -- 5,665,292 Putnam Vista ................................ 21,093,256 16,392,081 -- 16,392,081 T. Rowe Price Small Cap Value ............... 4,029,230 3,658,496 -- 3,658,496 T. Rowe Price Equity Income ................. 10,672,522 10,792,465 -- 10,792,465 T. Rowe Price Equity Index .................. 17,911,209 9,297,475 -- 9,297,475 Loans to participants ....................... 2,423,426 1,373,249 -- 1,373,249 Common/collective trusts Putnam Stable Value ......................... 15,399,517 13,165,635 -- 13,165,635 ------------ ------------ ------------ ------------ Total investments .............................. 186,056,304 95,706,225 -- 95,706,225 Receivables Employer's contributions ....................... 7,021,605 5,865,647 -- 5,865,647 Due from brokers ............................... -- 37,053 -- 37,053 Due from plan sponsor .......................... -- -- 25,723 25,723 Miscellaneous .................................. -- -- 114 114 ------------ ------------ ------------ ------------ Total receivables .............................. 7,021,605 5,902,700 25,837 5,928,537 ------------ ------------ ------------ ------------ Total assets ................................... 193,077,909 101,608,925 25,837 101,634,762 Liabilities Accounts payable ............................... -- -- 25,433 25,433 Due to related plan ............................ -- -- 90 90 ------------ ------------ ------------ ------------ Total liabilities ............................. -- -- 25,523 25,523 ------------ ------------ ------------ ------------ Net assets available for benefits ....................... $193,077,909 $101,608,925 $ 314 $101,609,239 ============ ============ ============ ============
The accompanying notes are an integral part of the financial statements. -2-
COMDISCO RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION Year Ended September 30, 1999 Putnam The Putnam Putnam Putnam Growth The George Fund for Inter- Putnam Bond Oppor- Putnam Growth and Putnam Putnam national Stable Index tunities Loans to Fund of Boston Income Income Vista Growth Value Fund Fund Participants ---------- ----------- ---------- ----------- ----------- ----------- -------- ------- ---------- Additions to net assets attributed to: Investment income Net appreciation in fair value of investments ..... $ -- $ 652,644 $ -- $ 4,088,143 $ 3,099,435 $ -- $ -- $ -- $ -- Dividends .................. 474,901 1,217,654 339,999 1,515,632 272,737 823,231 -- -- -- Interest ................... 1,403 17,080 9,837 25,962 15,965 38,174 -- -- -- Loan repayments ............ 6,282 43,201 18,918 107,132 34,513 134,673 -- -- 1,870,388 ---------- ----------- ---------- ----------- ----------- ----------- -------- ------- ---------- 482,586 1,930,579 368,754 5,736,869 3,422,650 996,078 -- -- 1,870,388 Less: Investment expenses .. 125 728 342 1,189 552 552 -- -- -- ---------- ----------- ---------- ----------- ----------- ----------- -------- ------- ---------- 482,461 1,929,851 368,412 5,735,680 3,422,098 995,526 -- -- 1,870,388 Contributions Employer ................... 174,238 597,026 -- 660,244 684,921 1,735,724 234,075 91,228 -- Participants ............... 353,996 1,142,162 408,727 1,117,738 1,005,684 1,133,545 -- -- -- ---------- ----------- ---------- ----------- ----------- ----------- -------- ------- ---------- 528,234 1,739,188 408,727 1,777,982 1,690,605 2,869,269 234,075 91,228 -- ---------- ----------- ---------- ----------- ----------- ----------- -------- ------- ---------- Total additions ............ 1,010,695 3,669,039 777,139 7,513,662 5,112,703 3,864,795 234,075 91,228 1,870,388 Deductions from net assets attributed to: Net depreciation in fair value of investments ........... 82,310 -- 436,336 -- -- -- -- -- -- Loan issues ................ 36,687 186,881 75,656 315,443 99,642 156,167 -- -- 709,195 Benefits paid to participants 171,970 702,748 378,288 1,389,891 617,664 1,338,589 -- -- 111,016 Miscellaneous .............. -- -- -- -- -- -- -- -- -- ---------- ----------- ---------- ----------- ----------- ----------- -------- -------- ---------- Total deductions ........... 290,967 889,629 890,280 1,705,334 717,306 1,494,756 -- -- 820,211 ---------- ----------- ---------- ----------- ----------- ----------- -------- -------- ---------- Net increase (decrease) in net assets prior to transfers ................ 719,728 2,779,410 (113,141) 5,808,328 4,395,397 2,370,039 234,075 91,228 1,050,177 Transfers Interfund transfers ......... (251,860) (1,266,594) (984,270) (941,769) (434,237) 78,438 -- -- -- Transfer from Comdisco, Inc. ESOP.......... -- -- -- -- -- -- -- -- -- ---------- ----------- ----------- ----------- ----------- ----------- -------- -------- --------- Net increase (decrease) in net assets available for benefits 467,868 1,512,816 (1,097,411) 4,866,559 3,961,160 2,448,477 234,075 91,228 1,050,177 Net assets available for benefits Beginning of year .... 4,690,122 11,834,718 5,918,045 16,886,940 7,871,440 14,686,764 -- -- 1,373,249 ---------- ----------- ---------- ----------- ----------- ----------- -------- -------- ---------- End of year ......... $5,157,990 $13,347,534 $4,820,634 $21,753,499 $11,832,600 $17,135,241 $234,075 $ 91,228 $2,423,426 ========== =========== ========== =========== =========== =========== ======== ======== ========== The accompanying notes are an integral part of the financial statements.
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COMDISCO RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION Year Ended September 30, 1999 T. Rowe T. Rowe T.Rowe Comdisco Price Price Price Comdisco Common Non Equity Equity Small Cap Common Stock Participant Income Index Value Stock (ESOP) Directed Total ----------- ----------- ----------- ------------ ------------ ------------ ------------ Additions to net assets attributed to: Investment income Net appreciation in fair value of investments ..................... $ 579,873 $ 2,383,408 $ -- $ 5,757,423 $ -- $ -- $ 16,560,926 Dividends ............................ 966,982 242,014 316,783 98,661 -- -- 6,268,594 Interest ............................. 20,419 24,418 8,225 15,226 -- -- 176,709 Loan repayments ...................... 56,326 75,558 17,288 38,596 -- -- 2,402,875 ----------- ----------- ----------- ------------ ------------ ------------ ------------ 1,623,600 2,725,398 342,296 5,909,906 -- -- 25,409,104 Less: Investment expenses ............ 608 711 204 903 -- -- 5,914 ----------- ----------- ----------- ------------ ------------ ------------ ------------ 1,622,992 2,724,687 342,092 5,909,003 -- -- 25,403,190 Contributions Employer ............................. 814,959 1,245,340 295,096 495,754 -- -- 7,028,605 Participants ......................... 1,486,752 2,199,078 647,631 809,346 -- -- 10,304,659 ----------- ----------- ----------- ------------ ------------ ------------ ------------ 2,301,711 3,444,418 942,727 1,305,100 -- -- 17,333,264 ----------- ----------- ----------- ------------ ------------ ------------ ------------ Total additions ...................... 3,924,703 6,169,105 1,284,819 7,214,103 -- -- 42,736,454 Deductions from net assets attributed to: Net depreciation in fair value of investments ..................... -- -- 134,880 -- -- -- 653,526 Loan issues .......................... 157,246 196,256 71,189 398,513 -- -- 2,402,875 Benefits paid to participants ........ 692,834 672,586 161,046 959,825 -- -- 7,196,457 Miscellaneous ........................ (69) -- -- -- -- 314 245 ----------- ----------- ----------- ------------ ------------ ------------ ------------ Total deductions ..................... 850,011 868,842 367,115 1,358,338 -- 314 10,253,103 ----------- ----------- ----------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets prior to transfers .................... 3,074,692 5,300,263 917,704 5,855,765 -- (314) 32,483,351 Transfers Interfund transfers ................... (3,343,183) 3,598,822 (551,853) 4,096,506 -- -- -- Transfer from Comdisco, Inc. ESOP ..... -- -- -- -- 58,985,319 -- 58,985,319 ----------- ----------- ----------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets available for benefits .......... (268,491) 8,899,085 365,851 9,952,271 58,985,319 (314) 91,468,670 Net assets available for benefits Beginning of year .............. 11,755,972 10,250,466 3,958,474 12,382,735 -- 314 101,609,239 ----------- ----------- ----------- ------------ ------------ ------------ ------------ End of year .................... $11,487,481 $19,149,551 $ 4,324,325 $ 22,335,006 $ 58,985,319 $ -- $193,077,909 =========== =========== =========== ============ ============ ============ ============ The accompanying notes are an integral part of the financial statements.
-4- COMDISCO RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED SEPTEMBER 30, 1998 KEMPER MUTUAL FUNDS
Small Income Capital- Blue High Capital- Inter- Money ization Total U.S. Chip Growth Yield ization national Market Equity Technology Return Government ---- ------ ----- -------- -------- ------ ----- ---------- ------ ---------- Additions to net assets attributed to: Investment income Net appreciation in fair value of investments ........ $ -- $ 54,843 $ 13,011 $ 14 $ 10,332 $ -- $ -- $ -- $ -- $ 376 Dividends .......... 2,641 710,328 101,852 118 70,180 11,460 426,272 72,678 608,271 4,055 Interest ........... -- -- -- -- -- -- -- -- -- -- Loan repayments ... -- -- -- -- -- -- -- -- -- -- Miscellaneous ..... -- -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 2,641 765,171 114,863 132 80,512 11,460 426,272 72,678 608,271 4,431 Less: Investment expenses .......... -- -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 2,641 765,171 114,863 132 80,512 11,460 426,272 72,678 608,271 4,431 Contributions Employer .......... -- -- -- -- -- -- -- -- -- -- Participants ...... -- 337,175 126,936 -- 94,615 40,633 210,817 13,977 119,488 5,639 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- -- 337,175 126,936 -- 94,615 40,633 210,817 13,977 119,488 5,639 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total additions ......... 2,641 1,102,346 241,799 132 175,127 52,093 637,089 86,655 727,759 10,070 Deductions from net assets attributed to: Net depreciation in fair value of investments ....... 171 -- -- -- -- -- 338,139 82,970 218,652 -- Loan issues ....... -- -- -- -- -- -- -- -- -- -- Benefits paid to participants ...... -- 1,826,325 101,189 -- 114,553 85,205 409,351 150,510 -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total deductions ... 171 1,826,325 101,189 -- 114,553 85,205 747,490 233,480 218,652 -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net increase(decrease) in net assets prior to interfund transfers ............ 2,470 (723,979) 140,610 132 60,574 (33,112) (110,401) (146,825) 509,107 10,070 Interfund transfers ........... (19,813) (5,356,261) (2,567,336) (3,958) (1,758,366) (515,123) (4,537,504) (526,410) (6,345,204)(159,537) -------- ----------- ----------- ------- ---------- --------- ---------- -------- ---------- -------- Net increase (decrease) in net assets available for benefits ......... (17,343) (6,080,240) (2,426,726) (3,826) (1,697,792) (548,235) (4,647,905) (673,235) (5,836,097) (149,467) Net assets available for benefits Beginning of year ............. 17,343 6,080,240 2,426,726 3,826 1,697,792 548,235 4,647,905 673,235 5,836,097 149,467 -------- ----------- ----------- ------- ----------- ------- ----------- --------- ---------- ------- End of year ....... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== =========== =========== ======== =========== ======= ========== ========= ========== =======
The accompanying notes are an integral part of the financial statements. -5- COMDISCO RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED SEPTEMBER 30, 1998 T. ROWE PRICE MUTUAL FUNDS
U.S. Treasury Small Capital Equity Equity International New Money Cap App. Income Index Stock Income Market Value -------- ------ ----- ----- ------ ------ ----- Additions to net assets attributed to: Investment income Net appreciation in fair value of investments ..................... $ -- $ -- $ 345,877 $ -- $ 4,298 $ 7 $ -- Dividends ............................ 755,225 950,214 148,232 250,016 26,414 20,202 72 Interest ............................. -- 3,123 2,646 -- -- -- 699 Loan repayments ...................... -- 5,799 7,274 -- -- -- 1,884 Miscellaneous ........................ -- -- -- -- -- -- -- ----------- ----------- ----------- ----------- --------- ----------- ----------- 755,225 959,136 504,029 250,016 30,712 20,209 2,655 Less: Investment expenses ............ -- 170 138 -- -- -- 39 ----------- ----------- ----------- ----------- --------- ----------- ----------- 755,225 958,966 503,891 250,016 30,712 20,209 2,616 Contributions Employer ............................. -- 956,014 940,923 -- -- -- 299,978 Participants ......................... 457,922 1,688,559 1,613,012 362,556 116,328 115,533 327,066 ----------- ----------- ----------- ----------- --------- ----------- ----------- 457,922 2,644,573 2,553,935 362,556 116,328 115,533 627,044 ----------- ----------- ----------- ----------- --------- ----------- ----------- Total additions ...................... 1,213,147 3,603,539 3,057,826 612,572 147,040 135,742 629,660 Deductions from net assets attributed to: Net depreciation in fair value of investments ..................... 233,186 790,382 -- 13,145 -- -- 1,158,675 Loan issues .......................... -- 102,984 97,683 -- -- -- 40,466 Benefits paid to participants ........ 322,679 612,985 671,310 600,697 60,509 4,202 9,223 ----------- ----------- ----------- ----------- --------- ----------- ----------- Total deductions ..................... 555,865 1,506,351 768,993 613,842 60,509 4,202 1,208,364 ----------- ----------- ----------- ----------- --------- ----------- ----------- Net increase (decrease) in net assets prior to interfund transfers .......... 657,282 2,097,188 2,288,833 (1,270) 86,531 131,540 (578,704) Interfund transfers ..................... (6,214,308) 1,540,545 2,493,392 (5,504,821) (678,250) (1,063,438) 4,537,178 ----------- ----------- ----------- ----------- --------- ----------- ----------- Net increase (decrease) in net assets available for benefits .......... (5,557,026) 3,637,733 4,782,225 (5,506,091) (591,719) (931,898) 3,958,474 Net assets available for benefits Beginning of year .............. 5,557,026 8,118,239 5,468,241 5,506,091 591,719 931,898 -- ----------- ----------- ----------- ----------- --------- ----------- ----------- End of year .................... $ -- $11,755,972 $10,250,466 $ -- $ -- $ -- $ 3,958,474 =========== =========== =========== =========== ========= =========== ===========
The accompanying notes are an integral part of the financial statements. -6- COMDISCO RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED SEPTEMBER 30, 1998 PUTNAM MUTUAL FUNDS
The George Growth Putnam and International Stable Loan Fund Income Income Vista Growth Value Fund --------- ------ ------ ----- ------ ----- -------- Additions to net assets attributed to: Investment income Net appreciation in fair value of investments ..................... $ -- $ -- $ -- $ -- $ -- $ -- $ -- Dividends ............................ 73,231 135,653 183,574 17,092 97 388,210 -- Interest ............................. 136 1,894 567 2,345 1,697 8,882 -- Loan repayments ...................... 3,942 4,862 1,337 4,959 3,216 58,838 1,203,856 Miscellaneous ........................ -- -- -- -- -- -- -- ----------- ------------ ---------- ------------ ----------- ----------- ---------- 77,309 142,409 185,478 24,396 5,010 455,930 1,203,856 Less: Investment expenses ............ 23 202 140 428 124 144 -- ----------- ------------ ---------- ------------ ----------- ----------- ---------- 77,286 142,207 185,338 23,968 4,886 455,786 1,203,856 Contributions Employer ............................. 158,123 532,016 252,753 494,858 579,635 1,521,130 -- Participants ......................... 124,857 496,554 213,120 447,251 454,862 549,596 -- ----------- ------------ ---------- ------------ ----------- ----------- ---------- 282,980 1,028,570 465,873 942,109 1,034,497 2,070,726 -- ----------- ------------ ---------- ------------ ----------- ----------- ---------- Total additions ...................... 360,266 1,170,777 651,211 966,077 1,039,383 2,526,512 1,203,856 Deductions from net assets attributed to: Net depreciation in fair value of investments ..................... 387,662 1,555,761 88,662 2,980,434 1,513,672 -- -- Loan issues .......................... 15,563 109,100 99,777 321,367 100,467 131,179 120,839 Benefits paid to participants ........ -- 190,276 96,769 198,958 104,856 640,845 -- ----------- ------------ ---------- ------------ ----------- ----------- ---------- Total deductions ..................... 403,225 1,855,137 285,208 3,500,759 1,718,995 772,024 120,839 ----------- ------------ ---------- ------------ ----------- ----------- ---------- Net increase (decrease) in net assets prior to interfund transfers .......... (42,959) (684,360) 366,003 (2,534,682) (679,612) 1,754,488 1,083,017 Interfund transfers ..................... 4,733,081 12,519,078 5,552,042 19,421,622 8,551,052 12,932,276 290,232 ----------- ------------ ---------- ------------ ----------- ----------- ---------- Net increase (decrease) in net assets available for benefits .......... 4,690,122 11,834,718 5,918,045 16,886,940 7,871,440 14,686,764 1,373,249 Net assets available for benefits Beginning of year .............. -- -- -- -- -- -- -- ----------- ------------ ---------- ------------ ----------- ----------- ---------- End of year .................... $ 4,690,122 $ 11,834,718 $5,918,045 $ 16,886,940 $ 7,871,440 $14,686,764 $1,373,249 =========== ============ ========== ============ =========== =========== ==========
The accompanying notes are an integral part of the financial statements. ents. -7- COMDISCO RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED SEPTEMBER 30, 1998
Hartford Total Total Total Life Comdisco Non Kemper T. Rowe Price Putnam Insurance Common Participant Funds Funds Funds Contract Stock Directed Total ----------- ------------ ----------- ------------ ----------- ----------- ------------ Additions to net assets attributed to: Investment income Net appreciation in fair value of investments $ 78,576 $ 350,182 $ -- $ -- $ -- $ 6,671,040 $ 7,099,798 Dividends 2,007,855 2,150,375 797,857 -- 22,330 104,932 5,083,349 Interest -- 6,468 15,521 482,365 636 33,515 538,505 Loan repayments -- 14,957 1,281,010 -- 1,248 -- 1,297,215 Miscellaneous -- -- -- -- -- 685 685 ----------- ------------ ----------- ------------ ----------- ----------- ------------ 2,086,431 2,521,982 2,094,388 482,365 24,214 6,810,172 14,019,552 Less: Investment expenses -- 347 1,061 -- 130 93,741 95,279 ----------- ------------ ----------- ------------ ----------- ----------- ------------ 2,086,431 2,521,635 2,093,327 482,365 24,084 6,716,431 13,924,273 Contributions Employer -- 2,196,915 3,538,515 -- 130,217 -- 5,865,647 Participants 949,280 4,680,976 2,286,240 455,724 116,992 -- 8,489,212 ----------- ------------ ----------- ------------ ----------- ----------- ------------ 949,280 6,877,891 5,824,755 455,724 247,209 -- 14,354,859 ----------- ------------ ----------- ------------ ----------- ----------- ------------ Total additions 3,035,711 9,399,526 7,918,082 938,089 271,293 6,716,431 28,279,132 Deductions from net assets attributed to: Net depreciation in fair value of investments 639,932 2,195,388 6,526,191 -- 7,155,910 -- 16,517,421 Loan issues -- 241,133 898,292 -- 162,648 -- 1,302,073 Benefits paid to participants 2,687,133 2,281,605 1,231,704 1,808,717 134,327 4,402,578 12,546,064 ----------- ------------ ----------- ------------ ----------- ----------- ------------ Total deductions 3,327,065 4,718,126 8,656,187 1,808,717 7,452,885 4,402,578 30,365,558 ----------- ------------ ----------- ------------ ----------- ----------- ------------ Net increase (decrease) in net assets prior to interfund transfers (291,354) 4,681,400 (738,105) (870,628) (7,181,592) 2,313,853 (2,086,426) Interfund transfers (21,789,512) (4,889,702) 63,999,383 (14,096,254) 19,564,327 (42,788,242) -- ----------- ------------ ----------- ------------ ----------- ----------- ------------ Net increase (decrease) in net assets available for benefits (22,080,866) (208,302) 63,261,278 (14,966,882) 12,382,735 (40,474,389) (2,086,426) Net assets available for benefits Beginning of year 22,080,866 26,173,214 -- 14,966,882 -- 40,474,703 103,695,665 ----------- ------------ ----------- ------------ ----------- ----------- ------------- End of year $ -- $ 25,964,912 $63,261,278 $ -- $12,382,735 $ 314 $101,609,239 =========== ============ =========== ============ =========== =========== ============
The accompanying notes are an integral part of the financial statements. -8- COMDISCO RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS September 30, 1999 and 1998 A. Description of Plan The following description of the Comdisco Retirement Plan (previously the Comdisco, Inc. Employees' Profit-Sharing Plan) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. The Plan was amended and restated effective as of April 1, 1998. 1. General. The Plan is a defined contribution plan that covers all employees of the Company and related companies who have six months of employment and who are also at least age twenty-one. Prior to April 1, 1998, the Plan covered all full-time employees of the Company who had six months of employment and 500 or more hours of service and who were also at least age twenty-one. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). 2. Contributions. Each year, the Company contributes to the Plan an amount as determined by the board of directors. Additional 401(k) matching amounts are contributed at the rate of fifty percent of the employees' before-tax contributions, not to exceed $1,000 per employee. Prior to April 1, 1998, matching contributions were made at the option of the Company's board of directors. Participants may contribute up to ten percent of their compensation on a before-tax basis subject to certain limitations. Participants may also contribute amounts representing distributions from other qualified plans. 3. Participant Accounts. Each participant's account is credited with the participant's contribution and an allocation of (a) the Company's contribution, (b) Plan earnings, and (c) forfeitures of terminated participants' nonvested accounts. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. 4. Vesting. Participants are immediately vested in their voluntary contributions plus actual earnings thereon. Vesting in the remainder of their accounts is based on years of continuous service. A participant is 100 percent vested after five years of credited service. 5. Investment Options. As of April 1, 1998, participants can direct their investments to any of the following investment options. Putnam Stable Value Fund Investment Objective: Seeks stability of principal by investing mainly in investment contracts issued by insurance companies, banks, and other similar -9- COMDISCO RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS September 30, 1999 and 1998 A. Description of Plan (continued) financial institutions. To provide liquidity, a portion of the fund's assets is invested in high-quality money market instruments. Putnam Income Fund Investment Objective: Seeks current income consistent with prudent risk by investing mainly in a variety of bonds, with an emphasis on government bonds and corporate bonds from creditworthy companies. T. Rowe Price Equity Income Fund Investment Objective: Seeks to provide high current income by investing primarily in dividend-paying common stocks with favorable prospects for capital appreciation. The George Putnam Fund of Boston Investment Objective: Seeks a balance of capital growth and current income in a well-diversified portfolio composed mostly of stocks and corporate and U.S. government bonds. The Putnam Fund for Growth and Income Investment Objective: Seeks capital growth and current income by investing mainly in attractively priced stocks of mature companies that offer long-term growth potential while also providing income. Putnam International Growth Fund Investment Objective: Seeks capital appreciation by investing in a diversified portfolio of stocks of companies located mainly outside the United States. Putnam Vista Fund Investment Objective: Seeks capital appreciation by investing mainly in a variety of stocks that have the potential for above-average growth. -10- COMDISCO RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS September 30, 1999 and 1998 A. Description of Plan (continued) T. Rowe Price Equity Index Fund Investment Objective: Seeks to provide long-term growth with investment results equivalent to the total return of the U.S. stock market as represented by the Standard & Poor's 500 Stock Index. T. Rowe Price Small Cap Value Fund Investment Objective: Seeks long-term growth of capital through investment in undervalued small-capitalization stocks with attractive prospects for capital appreciation. Comdisco Common Stock Account Investment Objective: Seeks capital appreciation by investing in Comdisco, Inc. common stock. This investment option allows participants to share in the profits of the Company through direct ownership. Prior to April 1, 1998, a participant was able to direct their contributions to any of the following investment options. Hartford Life Insurance Companies Kemper Mutual Funds Blue Chip - A Growth - A High Yield - A Income Capitalization - A International - A Money Market Small Capitalization Equity - A Technology - A Total Return - A U.S. Government - A T. Rowe Price Mutual Funds Capital Appreciation Equity Income Equity Index International Stock New Income U.S. Treasury Money Market As of April 1, 1998, participants may change their investment options when they wish. Prior to April 1, 1998, this could only be done semi-annually. -11- COMDISCO RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS September 30, 1999 and 1998 A. Description of Plan (continued) 6. Participant Loans. Participants may borrow from their fund accounts a minimum of $1,000 up to one-half of the current value of the vested balance of their accounts, not to exceed $50,000 minus their highest loan balances in the last twelve months. The loans are secured by the balances in the participants' accounts and bear interest at the prime rates in effect on the first day of the quarter in which the loans are approved, plus two percent. Principal and interest are repaid ratably through payroll deductions over a reasonable period of time (not to extend beyond five years or ten years for a principal residence loan). 7. Payment of Benefits. On termination of service, the benefits to which a participant is entitled are paid in accordance with the Plan agreement. 8. Forfeited Accounts. At September 30, 1999 and 1998, there were no forfeited nonvested accounts. During the years ended September 30, 1999 and 1998, forfeited nonvested accounts totaling $141,947 and $98,708, respectively, were applied to the remaining participants' accounts as additional employer contributions. 9. Plan Amendments. Effective April 1, 1998, the Plan was amended and renamed the Comdisco Retirement Plan. On April 1, 1998, all Plan assets were liquidated and transferred on behalf of the participants to Putnam Investments. B. Summary of Accounting Policies Basis of Accounting The financial statements of the Plan are prepared under the accrual method of accounting. Investment Valuation Investments are recorded at fair value. Shares of registered investment companies are valued at quoted market prices which represent the net asset value of shares held by the Plan at year-end. The Company stock is valued at its quoted market price. Participant loans are valued at cost which approximates fair value. Investments in common trust funds are stated at estimated fair values, which have been determined based on the unit values of the funds. Unit values are determined by the banks sponsoring such funds by dividing the fund's net assets at fair value by its units outstanding at the valuation dates. -12- COMDISCO RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS September 30, 1999 and 1998 B. Summary of Accounting Policies (continued) Realized Gains and Losses Realized gains and losses are calculated using investment costs for financial statement purposes, in accordance with generally accepted accounting principles. For Form 5500 purposes, however, realized gains and losses are calculated using the values of the investments at the beginning of the Plan's year or at the times of purchase during the Plan's year. Benefits Benefits are recorded when paid for financial statement purposes, in accordance with generally accepted accounting principles for employee benefit plans. For Form 5500 purposes, however, benefits are accrued in order to comply with the requirements of the Department of Labor. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the Plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. C. Investments The following table presents investments that represent five percent or more of the Plan's net assets at September 30: 1999 1998 ------------ ------------ Investments at fair value as determined by quoted market price Employer securities Comdisco common stock ............. $ 21,839,252 $ 12,235,026 Comdisco common stock (transferred from ESOP) ........ 8,985,319 -- Registered investment companies Putnam International Growth ....... 11,147,679 7,291,804 The Putnam Fund for Growth and Income ........................ 12,750,509 11,302,703 Putnam Income ..................... -- 5,665,292 Putnam Vista ...................... 21,093,256 16,392,081 T. Rowe Price Equity Income ....... 10,672,522 10,792,465 T. Rowe Price Equity Index ........ 17,911,209 9,297,475 Common/collective trusts Putnam Stable Value ............... 15,399,517 13,165,635 ------------ ------------ $119,799,263 $ 86,142,481 ============ ============ -13- COMDISCO RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS September 30, 1999 and 1998 C. Investments (continued) During the years ended September 30, 1999 and 1998, the Plan's investments (including investments bought, sold, or held during the year) appreciated or depreciated in value as follows:
Net Change in Fair Value Year Ended Year Ended September 30, 1999 September 30, 1998 ------------------ ------------------ Common stock ...................... $ -- $ 936,664 Employer securities ............... 5,757,423 (2,299,651) Registered investment companies ......................... 10,149,977 (8,054,636) ----------- ----------- Total net change in fair value ........................ $15,907,400 $(9,417,623) =========== ===========
D. Reconciliation of Financial Statements to Forms 5500 The following is a reconciliation of net assets available for benefits per the financial statements to Forms 5500:
September 30, 1999 September 30, 1998 ------------------ ------------------ Net assets available for benefits per financial statements $193,077,909 $101,609,239 Amounts allocated to withdrawing participants - (11,758) ------------ ------------ Net assets available for benefits per Forms 5500 $193,077,909 $101,597,481 ============ ============
-14- COMDISCO RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS September 30, 1999 and 1998 D. Reconciliation of Financial Statements to Forms 5500 (continued) As previously stated in the summary of accounting policies, benefits are recorded when paid for financial statement purposes but are accrued for Form 5500 purposes. The following is a reconciliation of benefits between Forms 5500 and the statements of changes in net assets available for benefits, with fund information.
Year Ended Year Ended September 30, 1999 September 30, 1998 ------------------ ------------------ Benefits per lines 32e(1) of Forms 5500 ..................... $ 7,184,699 $ 4,559,062 Plus beginning amounts allocated to withdrawing participants ................... 11,758 7,998,760 Less ending amounts allocated to withdrawing participants ................... -- (11,758) ------------ ------------ Benefits paid per statements of changes in net assets available for benefits, with fund information .................... $ 7,196,457 $ 12,546,064 ============ ============
E. Plan Merger On September 30, 1999, the Comdisco, Inc. Employee Stock Ownership Plan (ESOP) was merged into the Comdisco Retirement Plan. The ESOP's only asset at that time (3,054,255.987 shares of Comdisco, Inc. common stock with a cost basis of $13,499,811 and a market value of $58,985,319), was transferred to Putnam. A "Transferred ESOP Account", which reflects the amount transferred and the income, losses, appreciation and depreciation attributable thereto, is maintained by Putnam for each person who was a participant of the Comdisco, Inc. ESOP on September 30, 1999. A participant becomes fully vested in his "Transferred ESOP Account" after five years of service to the Company. There is no vesting otherwise. F. Administrative Expenses Comdisco, Inc. pays for the significant administrative costs of the Plan outside of the investment expenses. -15- COMDISCO RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS September 30, 1999 and 1998 G. Information Certified by Custodians The certified annual statements of the custodian provide year-end market values of each class of investment, net appreciation or depreciation in fair values of each class of investment, interest and dividend income of each class of investment, and are the source for such information included in the financial statements and supplemental schedules. The custodians have certified that the information provided to the Plan administrator by the custodians is complete and accurate. H. Plan Termination Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts. I. Tax Status The trust established under the Plan to hold the Plan's assets is qualified pursuant to the appropriate section of the Internal Revenue Code and, accordingly, the trust's net investment income is exempt from income taxes. The Plan has obtained a favorable tax determination letter dated October, 1996, from the Internal Revenue Service. The Plan has been amended since receiving the determination letter. However, the Plan sponsor believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. -16- (David J. Miller & Associates, LLP Letterhead) INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION To the Trustees of the Comdisco Retirement Plan Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes as of September 30, 1999 and 1998 and assets held for investment purposes which were both acquired and disposed within the plan year ended September 30, 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. 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. /s/ David J. Miller & Associates, LLP January 21, 2000 Deerfield, Illinois SUPPLEMENTARY INFORMATION
COMDISCO RETIREMENT PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES September 30, 1999 Description of Investment Including Maturity Date, Rate of Identity of Issue, Borrower, Interest, Collateral, Par, Lessor, or Similar Party or Maturity Value Cost Current Value - ------------------------ ---------------------- ---- ------------- Employer Securities * Comdisco, Inc. 1,130,835.080 Shares $ 9,949,236 $ 21,839,252 * Comdisco, Inc. (transferred from ESOP) 3,054,255.987 Shares 13,499,811 58,985,319 ----------- ------------ $ 23,449,047 $ 80,824,571 ============ ============ Registered Investment Companies T. Rowe Price Equity Index 516,024.466 Shares $ 16,594,388 $ 17,911,209 Equity Income 403,040.845 Shares 11,162,861 10,672,522 Small Cap Value 215,813.075 Shares 4,893,900 4,029,230 Putnam Investments The George Putnam Fund of Boston 284,948.666 Shares 5,417,846 4,983,752 The Putnam Fund for Growth and Income 636,888.562 Shares 13,612,515 12,750,509 Income 745,074.611 Shares 5,244,469 4,820,633 Vista 1,497,037.313 Shares 20,025,103 21,093,256 International Growth 489,147.839 Shares 9,619,609 11,147,679 ------------ ----------- $ 86,570,691 $ 87,408,790 ============= ============ Common/Collective Trusts Putnam Stable Value 15,399,516.74 Shares $ 15,399,517 $ 15,399,517 ============= ============ Loans to Participants * Participant Loans 9.75% - 10.25%, various maturities $ - $ 2,423,426 ============= ============ Total Investments $125,419,255 $186,056,304 ============= ============
* party-in-interest See independent auditor's report on supplementary information. -18-
COMDISCO RETIREMENT PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES September 30, 1998 Description of Investment Including Maturity Date, Rate of Identity of Issue, Borrower, Interest, Collateral, Par, Lessor, or Similar Party or Maturity Value Cost Current Value - ------------------------ ----------------- ---- ----------- Employer Securities * Comdisco, Inc. 897,983.59 Shares $ 2,354,506 $12,235,026 ========== =========== Registered Investment Companies T. Rowe Price Equity Index 336,134.312 Shares $10,110,933 $ 9,297,475 Equity Income 430,321.579 Shares 12,034,841 10,792,465 Small Cap Value 190,944.486 Shares 4,758,306 3,658,496 Putnam Investments The George Putnam Fund of Boston 254,749.827 Shares 4,911,808 4,531,999 The Putnam Fund for Growth and Income 595,819.867 Shares 12,814,869 11,302,703 Income 807,021.615 Shares 5,749,819 5,665,292 Vista 430,373.575 Shares 19,326,750 16,392,081 International Growth 450,389.383 Shares 8,800,652 7,291,804 ----------- ----------- $78,507,978 $68,932,315 =========== =========== Common/Collective Trusts Putnam Stable Value 13,165,634.78 Shares $13,165,635 $13,165,635 =========== =========== Loans to Participants * Participant Loans 8% - 11%, various maturities $ - $ 1,373,249 =========== =========== Total Investments $94,028,119 $95,706,225 =========== =========== * party-in-interest
See independent auditor's report on supplementary information. -19- COMDISCO RETIREMENT PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES WHICH WERE BOTH ACQUIRED AND DISPOSED WITHIN THE PLAN YEAR Year Ended September 30, 1998
Description of Investment Including Maturity Date, Rate of Identity of Issue, Borrower, Interest, Collateral, Par, Cost of Proceeds of Lessor, or Similar Party or Maturity Value Acquisitions Dispositions - --------------------------- -------------------------- ------------ ------------ Common Stock Advanced Fibre Communications, Inc. ................................ 8,700 Shares $ 270,414 $ 338,201 Allied Signal, Inc. .................................. 6,000 Shares 230,096 250,382 ASM Lithography Holding .............................. 2,600 Shares 239,184 182,870 Berg Electrs Corporation ............................. 9,000 Shares 225,000 240,294 Cable Design Technologies Corporation ......................................... 12,750 Shares 350,304 337,286 Calenergy, Inc. ...................................... 5,100 Shares 193,163 199,651 CBS Corporation ...................................... 9,300 Shares 253,751 311,751 Ciena Corporation .................................... 4,500 Shares 239,584 181,398 Colgate Palmolive Co. ................................ 2,900 Shares 254,879 250,668 Grey Wolfe, Inc. ..................................... 28,000 Shares 245,570 117,316 Hearst Argyle Television ............................. 9,100 Shares 260,721 332,139 Home Depot, Inc. ..................................... 4,100 Shares 234,202 271,645 Meditrust Paired CTF ................................. 7,800 Shares 293,973 231,786 Microchip Technology, Inc. ........................... 2,200 Shares 84,975 60,550 Monsanto Co. ......................................... 6,900 Shares 302,541 361,824 News Corporation Ltd. ................................ 10,500 Shares 249,072 296,195 PSW Technologies ..................................... 22,800 Shares 266,713 153,201 Sipex Corporation .................................... 7,000 Shares 207,728 251,992 Tellabs, Inc. ........................................ 3,800 Shares 222,491 257,441 ---------- ---------- $4,624,361 $4,626,590 ========== ==========
See independent auditor's report on supplementary information. -20- EX-23 2 CONSENT OF DAVID J. MILLER & ASSOCIATES, LLP [David J. Miller & Associates, LLP Letterhead] Consent of David J. Miller & Associates, LLP The Board of Directors Comdisco, Inc. We consent to the incorporation by reference in the Registration Statement on Form S-8 of Comdisco, Inc. of our reports dated January 21, 2000, relating to the statements of net assets available for benefits of Comdisco Retirement Plan (the "Plan") as of September 30, 1999 and 1998, and the related statements of changes in net assets available for benefits for the years then ended, which reports appear in this Annual Report on Form 11-K of the Plan filed with the Commission on March 31, 2000. /s/ David J. Miller & Associates, LLP March 31, 2000 Deerfield, Illinois -----END PRIVACY-ENHANCED MESSAGE-----