SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT For the fiscal year ended December 31, 1997. OR [ ] TRANSACTION REPORT PURSUANT TO SECTION 1(d) THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-7182 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Merrill Lynch & Co., Inc. World Financial Center North Tower 250 Vesey Street New York, N.Y. 10281-1334 Financial Statments and Exhibits (a) Financial Statements for the Years Ended December 31, 1997 and 1996, Supplemental Schedules for the Year ended December 31, 1997 and Independent Auditors' Report. The financial statments required to be filed hereunder appear commencing at page 2 hereof. (b) Exhibits (23) Consent of Independent Public Accountants (following financial statements). SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee (the persons who administer the employee benefit plan) has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized, in the City of New York, State of New York. Merill Lynch & Co., Inc. 401(k) Savings & Investment Plan Date: June 26, 1998 By: \s\ Robert F. Arimenta, Jr. ----------------------------- Robert F. Arimenta, Jr. Vice President, Merrill Lynch Trust Company, Trustee The Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan Financial Statements for the Years Ended December 31, 1997 and 1996, Supplemental Schedules for the Year Ended December 31, 1997 and Independent Auditors' Report THE MERRILL LYNCH & CO., INC. 401(k) SAVINGS & INVESTMENT PLAN TABLE OF CONTENTS - ------------------------------------------------------------------------------- Page INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996: Statements of Net Assets Available for Benefits 2 Statements of Changes in Net Assets Available for Benefits 3 Notes to Financial Statements 4-14 SUPPLEMENTAL SCHEDULES AS OF AND FOR THE YEAR ENDED DECEMBER 31, 1997: Schedule of Assets Held for Investment Purposes 15-16 Schedule of Reportable Transactions 17 INDEPENDENT AUDITORS' REPORT Trustees of the Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan We have audited the accompanying statements of net assets available for benefits of the Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan (the "Plan") as of December 31, 1997 and 1996 and the related statements of changes in net assets available for benefits for the years then ended. These financial statements and the supplemental schedules discussed below are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 1997 and 1996 and the changes in net assets available for 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 listed in the Table of Contents are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These schedules are the responsibility of the Plan's management. Such schedules have been subjected to the auditing procedures applied in our audits of the basic financial statements, and in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. /s/ Deloitte & Touche LLP June 8, 1998 THE MERRILL LYNCH & CO., INC. 401(k) SAVINGS & INVESTMENT PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1997 AND 1996 - --------------------------------------------------------------------------------
1997 1996 ASSETS: Investments, at market value: Common stock $ 608,207,808 $ 301,273,051 Funds and trusts 1,672,424,289 1,366,263,439 -------------- -------------- Total investments 2,280,632,097 1,667,536,490 Cash 1,599,954 4,710,074 Employer contributions receivable 1,205,982 1,154,434 Employee contributions receivable -- 1,252,128 Receivable for securities sold -- 3,710,384 -------------- -------------- Total assets 2,283,438,033 1,678,363,510 LESS LIABILITIES: Payable for securities purchased -- 2,301,126 -------------- -------------- NET ASSETS AVAILABLE FOR BENEFITS $2,283,438,033 $1,676,062,384 -------------- -------------- -------------- --------------
See notes to financial statements. 2 THE MERRILL LYNCH & CO., INC. 401(k) SAVINGS & INVESTMENT PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEARS ENDED DECEMBER 31, 1997 AND 1996 - -------------------------------------------------------------------------------
1997 1996 ADDITIONS: Investment income: Net appreciation in fair value of investments $ 359,533,245 $ 175,400,445 Dividends and interest 144,820,751 101,896,155 -------------- -------------- Total investment income 504,353,996 277,296,600 Contribution to the Plan by the Company 30,085,399 27,477,361 Contribution to the Plan by the employees 181,675,960 161,369,639 Rollovers from other qualified plans 2,232,802 1,316,518 -------------- -------------- Total additions 718,348,157 467,460,118 -------------- -------------- DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 110,890,129 86,965,176 Administrative expenses 82,379 651,986 -------------- -------------- Total deductions 110,972,508 87,617,162 -------------- -------------- NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS 607,375,649 379,842,956 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 1,676,062,384 1,296,219,428 -------------- -------------- End of year $2,283,438,033 $1,676,062,384 -------------- -------------- -------------- --------------
See notes to financial statements. 3 THE MERRILL LYNCH & CO., INC. 401(k) SAVINGS & INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1997 AND 1996 - ------------------------------------------------------------------------------- 1. DESCRIPTION OF THE PLAN The following description of the Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan (the "Plan") is provided for general information purposes only. Participants should refer to the Plan document for more complete information. Terms used in this description have the same meaning as in the Plan. The Plan was adopted on April 23, 1987 and commenced activities on October 1, 1987. The purpose of the Plan is to encourage employees to save for retirement. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). Subject to exclusions specified in the Plan, any Employee of Merrill Lynch & Co., Inc. or of a participating subsidiary or affiliate (the "Company" or "Employer") can elect to participate in the Plan providing such Employee has worked for the Employer for 12 months. An Employee can elect to participate in the Plan (if eligible) as of the first day of the month following 12 months of employment or the first day of any month thereafter. Each Participant may elect to make contributions to the Plan on a pre-tax basis through payroll deductions from 1% through 15% of such Participant's Eligible Compensation for each pay period up to an annual maximum of $9,500 for 1997 and 1996 (subject to certain exceptions described in the Plan and periodic adjustments for cost-of-living increases for each calendar year). A Participant can elect to change the rate at which his or her contribution is determined. The Company will make contributions, up to a maximum of $1,500, in an amount equal to 50% of the first 4% of Eligible Compensation contributed by a Participant during each calendar year. No Employer contributions will be made for any calendar year for Employees who participate at any time during such calendar year in the Company's Employee Stock Purchase Plan. All Participants are always 100% vested in contributions to the Plan made from their Eligible Compensation and in amounts rolled over from an employer's qualified retirement plan. Participants are 100% vested in Employer contributions when they attain age 65 or terminate employment because of death. Other Participants who terminate employment after October 31, 1993 will become vested in Employer contributions and earnings based on complete Years of Service after October 1, 1987: 1 Year of Service - 20% vested; 2 Years of Service - 40% vested; 3 Years of Service - 60% vested; 4 Years of Service - 80% vested; and 5 Years of Service - 100% vested. The Plan permits withdrawals relating to contributions and earnings under certain conditions which are in accordance with the Internal Revenue Code and the regulations thereunder. 4 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Purchases and sales of investments are recorded on a trade date basis. All other accounting records of the Plan are maintained on the accrual basis. The accompanying financial statements do not include any investments in VOCON and Deferred Profit Sharing Accounts, which are self-directed Accounts, that were transferred into the Plan for administrative convenience only. The cost of security investments is based on the average cost method for individual securities. Quoted market values of security investments are based on the last sales price (if traded on December 31), the prevailing bid price or the prevailing net asset value at the close of trading on December 31. 3. INVESTMENTS The Administrative Committee has the authority to designate Investment Funds for the investment of accounts other than VOCON and Deferred Profit Sharing Accounts, to determine which accounts can be self-directed and to establish rules and procedures with respect to investment funds and self-directed accounts. All contributions to the Plan may be allocated by the Participant among the investments designated by the Administrative Committee. In February 1996, Select Ten Retirement Portfolio was added as an investment option available to Participants. Effective November 1997, 14 additional Merrill Lynch Asset Management Funds, 9 Hotchkis & Wiley Funds and 3 index trusts were added as investment options. This increased the investment choices from 27 to 53. During 1997 and 1996, the Plan's investments (including investments bought, sold and held during each year) appreciated in value as follows:
Years Ended December 31, 1997 1996 Net change in fair value of investments: Common stock $253,231,703 $111,849,742 Funds and trusts 106,301,542 63,550,703 ------------ ------------ $359,533,245 $175,400,445 ------------ ------------ ------------ ------------
The value of individual investments that represent 5% or more of the Plan's net assets at December 31 are as follows:
1997 1996 Merrill Lynch & Co., Inc. $608,207,808 $300,575,194 Merrill Lynch: Basic Value Fund 414,699,914 313,997,550 Capital Fund 227,863,002 198,614,241 Global Allocation Fund 203,553,804 182,963,445 Growth Fund 202,116,061 139,167,338 Retirement Reserves 125,677,992 134,987,517
5 4. ADMINISTRATIVE EXPENSES Plan expenses, including expenses of the Administrative Committee and Trustee, to the extent not paid by the Plan, are paid by the Company. 5. PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right under the Plan to terminate the Plan subject to the provisions of ERISA. 6. TAX STATUS The Internal Revenue Service has determined and informed the Company by a letter dated July 13, 1995, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code ("IRC"). The Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Therefore, no provision for income taxes has been included in the Plan's financial statements. (Continued) 6 7. FUND INFORMATION: The following represents the changes in the net assets available for benefit of the individual funds for the years ended December 31, 1997 and 1996:
Merrill Lynch - 1997 ----------------------------------------------------------------------- GSIF U.S. Government Zero Coupon Adjustable Aggressive Americas Merrill Lynch Bond Series 3 Rate Bond Income Basic Value & Co., Inc.* Specialties Index Tier 3 Fund Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ 253,231,703 $ 6,827,240 $ -- $ 527 $ (3,117) $ 62,310,982 Dividends and interest 5,938,328 225,069 -- -- 3,711 31,684,864 ------------- ------------- ------ ---------- --------- ------------- Total investment income (loss) 259,170,031 7,052,309 -- 527 594 93,995,846 Contributions and rollovers to the Plan 31,415,390 3,410,710 72 870 190 31,121,117 ------------- ------------- ------ ---------- --------- ------------- Total additions 290,585,421 10,463,019 72 1,397 784 125,116,963 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 22,493,505 2,128,867 -- -- -- 15,143,219 Administrative expenses -- -- -- -- -- -- TRANSFERS AMONG FUNDS 37,841,723 (2,420,660) 40 79,687 31,275 (9,711,420) ------------- ------------- ------ ---------- --------- ------------- NET INCREASE (DECREASE) 305,933,639 5,913,492 112 81,084 32,059 100,262,324 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 302,274,169 55,991,056 -- -- -- 314,437,590 ------------- ------------- ------ ---------- --------- ------------- End of year $ 608,207,808 $ 61,904,548 $ 112 $ 81,084 $ 32,059 $ 414,699,914 ------------- ------------- ------ ---------- --------- ------------- ------------- ------------- ------ ---------- --------- -------------
Merrill Lynch - 1997 --------------------------------------------------------------------------------- Corporate Corporate Corporate Bond Fund-- Bond Fund-- Bond Fund-- Intermediate Investment Capital Convertible High Income Term Grade Fund Fund Portfolio Portfolio Portfolio Net appreciation (depreciation) in fair value of investments $ 22,102,391 $ (29) $ 431,539 $ 130,632 $ 669,001 Dividends and interest 19,315,587 239 3,984,084 515,744 3,072,718 ------------- ---------- ------------- ------------- ------------- Total investment income (loss) 41,417,978 210 4,415,623 646,376 3,741,719 Contributions and rollovers to the Plan 19,167,283 577 2,286,874 215,706 4,670,590 ------------- ---------- ------------- ------------- ------------- Total additions 60,585,261 787 6,702,497 862,082 8,412,309 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 11,124,498 -- 1,667,372 241,674 2,796,332 Administrative expenses -- -- -- -- -- TRANSFERS AMONG FUNDS (20,645,447) 8,141 91,311 166,809 (3,722,220) ------------- ---------- ------------- ------------- ------------- NET INCREASE (DECREASE) 28,815,316 8,928 5,126,436 787,217 1,893,757 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 199,047,686 -- 37,172,745 7,713,005 45,751,063 ------------- ---------- ------------- ------------- ------------- End of year $ 227,863,002 $ 8,928 $ 42,299,181 $ 8,500,222 $ 47,644,820 ------------- ---------- ------------- ------------- ------------- ------------- ---------- ------------- ------------- -------------
(Continued) 7
Merrill Lynch - 1997 ------------------------------------------------------------------------------------ Developing Capital Emerging Federal Markets Dragon Tigers Equity Euro Securities Fund Fund Fund Index Trust Fund Trust ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ (13,059) $ (217,669) $ (102,847) $ 17,407,124 $ 772,338 $ 85 Dividends and interest 15,728 199,621 1,556 -- 3,478,545 248 ---------- ----------- ----------- ------------ ------------ -------- Total investment income (loss) 2,669 (18,048) (101,291) 17,407,124 4,250,883 333 Contributions and rollovers to the Plan 3,464 14,464 3,447 9,140,685 2,172,140 15 ---------- ----------- ----------- ------------ ------------ -------- Total additions 6,133 (3,584) (97,844) 26,547,809 6,423,023 348 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees -- -- -- 2,984,488 589,086 -- Administrative expenses -- -- -- -- -- -- TRANSFERS AMONG FUNDS 445,810 1,500,907 1,233,974 1,601,004 (206,538) 55,574 ---------- ----------- ----------- ------------ ------------ -------- NET INCREASE (DECREASE) 451,943 1,497,323 1,136,130 25,164,325 5,627,399 55,922 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year -- -- -- 47,725,995 15,256,674 -- ---------- ----------- ----------- ------------ ------------ -------- End of year $ 451,943 $ 1,497,323 $ 1,136,130 $ 72,890,320 $ 20,884,073 $ 55,922 ---------- ----------- ----------- ------------ ------------ -------- ---------- ----------- ----------- ------------ ------------ --------
Merrill Lynch - 1997 -------------------------------------------------------------------------------------- Fundamental Global Global Global Global Fund For Growth Allocation Bond Convertible Holdings Tomorrow Fund Fund Fund Fund Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ (77,801) $ (224,198) $ (4,732,548) $ (38,232) $ (31,880) $ (252,560) Dividends and interest 308,273 211,590 26,576,431 59,511 141,574 565,268 ----------- ----------- ------------- ----------- --------- ----------- Total investment income (loss) 230,472 (12,608) 21,843,883 21,279 109,694 312,708 Contributions and rollovers to the Plan 328,936 4,524 26,132,110 214,602 116,562 739,939 ----------- ----------- ------------- ----------- --------- ----------- Total additions 559,408 (8,084) 47,975,993 235,881 226,256 1,052,647 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 31,768 -- 9,372,477 50,318 5,153 137,627 Administrative expenses -- -- -- -- -- -- TRANSFERS AMONG FUNDS 217,742 2,474,196 (18,301,842) (51,748) (88,732) (948,367) ----------- ----------- ------------- ----------- --------- ----------- NET INCREASE (DECREASE) 745,382 2,466,112 20,301,674 133,815 132,371 (33,347) NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 913,488 -- 183,252,130 900,116 828,638 4,785,992 ----------- ----------- ------------- ----------- --------- ----------- End of year $ 1,658,870 $ 2,466,112 $ 203,553,804 $ 1,033,931 $ 961,009 $ 4,752,645 ----------- ----------- ------------- ----------- --------- ----------- ----------- ----------- ------------- ----------- --------- -----------
(Continued) 8
Merrill Lynch - 1997 ------------------------------------------------------------------------------------------ Global Global Global Global Resources Smallcap Utility Value Growth Healthcare Trust Fund Fund Fund Fund Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ (762,173) $ (5,487) $ 337,378 $ (11,595) $ 13,161,558 $ 216,639 Dividends and interest 391,820 2,122 306,030 87,035 16,000,638 1,810,869 ------------ --------- ------------ ------------ ------------ ------------ Total investment income (loss) (370,353) (3,365) 643,408 75,440 29,162,196 2,027,508 Contributions and rollovers to the Plan 379,819 1,870 362,465 13,548 29,786,565 1,174,803 ------------ --------- ------------ ------------ ------------ ------------ Total additions 9,466 (1,495) 1,005,873 88,988 58,948,761 3,202,311 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 67,549 -- 113,988 -- 8,437,188 420,489 Administrative expenses -- -- -- -- -- -- TRANSFERS AMONG FUNDS (794,421) 42,629 (322,660) 2,128,985 12,009,693 (515,382) ------------ --------- ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) (852,504) 41,134 569,225 2,217,973 62,521,266 2,266,440 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 3,717,647 -- 2,661,560 -- 139,594,795 7,087,492 ------------ --------- ------------ ------------ ------------ ------------ End of year $ 2,865,143 $ 41,134 $ 3,230,785 $ 2,217,973 $202,116,061 $ 9,353,932 ------------ --------- ------------ ------------ ------------ ------------ ------------ --------- ------------ ------------ ------------ ------------
Merrill Lynch - 1997 ------------------------------------------------------------------------------------------ International International Latin Retirement Equity Index America Pacific Phoenix Preservation Fund Tier 3 Fund Fund Fund Trust ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ (13,652) $ 187 $ 23,670 $ (9,879,849) $ (480,879) $ -- Dividends and interest 11,198 -- -- 6,770,197 2,588,121 3,898,645 ------------ --------- ------------ ------------ ------------ ------------ Total investment income (loss) (2,454) 187 23,670 (3,109,652) 2,107,242 3,898,645 Contributions and rollovers to the Plan 1,043 1,441 11,292 6,326,239 1,935,668 6,238,316 ------------ --------- ------------ ------------ ------------ ------------ Total additions (1,411) 1,628 34,962 3,216,587 4,042,910 10,136,961 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees -- -- -- 1,712,263 584,983 10,060,203 Administrative expenses -- -- -- -- -- -- TRANSFERS AMONG FUNDS 60,755 59,889 579,915 (8,218,269) (3,148,192) 8,944,834 ------------ --------- ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) 59,344 61,517 614,877 (6,713,945) 309,735 9,021,592 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year -- -- -- 49,442,695 11,039,754 55,175,467 ------------ --------- ------------ ------------ ------------ ------------ End of year $ 59,344 $ 61,517 $ 614,877 $ 42,728,750 $ 11,349,489 $ 64,197,059 ------------ --------- ------------ ------------ ------------ ------------ ------------ --------- ------------ ------------ ------------ ------------
(Continued) 9
Merrill Lynch - 1997 ----------------------------------------------------------------------------------------- Retirement Select-Ten Small Cap Special Strategic Reserves Retirement Index Value Dividend Technology Money Fund Portfolio Tier 3 Fund Fund Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value ofinvestments $ -- $ 4,400,901 $ 407 $ 11,691 $ 134,287 $ (5,583,390) Dividends and interest 6,887,576 574,201 -- 2,526,678 142,815 5,315,030 ------------- ------------- --------- ------------- ----------- ------------ Total investment income (loss) 6,887,576 4,975,102 407 2,538,369 277,139 (268,360) Contributions and rollovers to the Plan 15,605,293 5,834,138 5,682 2,291,796 195,976 4,315,946 ------------- ------------- --------- ------------- ----------- ------------ Total additions 22,492,869 10,809,240 6,089 4,830,165 473,115 4,047,586 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 16,822,530 948,242 -- 545,195 81,798 1,504,179 Administrative expenses -- -- -- -- -- -- TRANSFERS AMONG FUNDS (15,391,117) 6,364,930 542,576 10,015,843 629,976 (3,867,550) ------------- ------------- --------- ------------- ----------- ------------ NET INCREASE (DECREASE) (9,720,778) 16,225,928 548,665 14,300,813 1,021,113 (1,324,143) NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 135,398,770 15,762,697 -- 9,646,917 585,847 24,267,819 ------------- ------------- --------- ------------- ----------- ------------ End of year $ 125,677,992 $ 31,988,625 $ 548,665 $ 23,947,730 $ 1,606,960 $ 22,943,676 ------------- ------------- --------- ------------- ----------- ------------ ------------- ------------- --------- ------------- ----------- ------------
Merrill Lynch - 1997 Hotchkis & Wiley -------------------- ------------------------------------------------------------ Utility World Income Income Balance Income Global International Low Duration Fund Fund Fund Fund Equity Fund Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value ofinvestments $ 17,312 $ 13 (763) $ (2,022) $ (2,237) $(35,142) $ (317) Dividends and interest 448 23 -- 3,010 1,388 14,556 587 --------- -------- -------- -------- -------- --------- --------- Total investment income (loss) 17,760 36 (763) 988 (849) (20,586) 270 Contributions and rollovers to the Plan 344 161 196 683 853 8,602 2,612 --------- -------- -------- -------- -------- --------- --------- Total additions 18,104 197 (567) 1,671 4 (11,984) 2,882 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees -- -- -- -- -- -- -- Administrative expenses -- -- -- -- -- -- -- TRANSFERS AMONG FUNDS 324,930 1,819 27,259 19,769 38,730 937,782 40,107 --------- -------- -------- -------- -------- --------- --------- NET INCREASE (DECREASE) 343,034 2,016 26,692 21,440 38,734 925,798 42,989 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year -- -- -- -- -- -- -- --------- -------- -------- -------- -------- --------- --------- End of year $ 343,034 $ 2,016 $ 26,692 $ 21,440 $ 38,734 $ 925,798 $ 42,989 --------- -------- -------- -------- -------- --------- --------- --------- -------- -------- -------- -------- --------- ---------
(Continued) 10
Hotchkis & Wiley ---------------------------------------------------- Total Mid-Cap Short Term Small Cap Return Fund Fund Fund Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ (4,835) $ (20) $ (178,110) $ 14 Dividends and interest 6,823 274 143,051 2,070 ---------- --------- ------------ --------- Total investment income (loss) 1,988 254 (35,059) 2,084 Contributions and rollovers to the Plan 2,216 1,250 20,984 200 ---------- --------- ------------ --------- Total additions 4,204 1,504 (14,075) 2,284 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees -- -- -- -- Administrative expenses -- -- -- -- TRANSFERS AMONG FUNDS 237,434 56,235 2,150,414 151,836 ---------- --------- ------------ --------- NET INCREASE (DECREASE) 241,678 57,739 2,136,339 154,120 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year -- -- -- -- ---------- --------- ------------ --------- End of year $ 241,678 $ 57,739 $ 2,136,339 $ 154,120 ---------- --------- ------------ --------- ---------- --------- ------------ ---------
---------------------------------------------------------- Cash Management Employer Account Contribution 1997 Money Fund Cash Receivable Total ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ -- $ -- $ -- $ 359,533,245 Dividends and interest 1,036,857 -- -- 144,820,751 ----------- ------------ ------------ --------------- Total investment income (loss) 1,036,857 -- -- 504,353,996 Contributions and rollovers to the Plan 6,649,052 458,859 1,205,982 213,994,161 ----------- ------------ ------------ --------------- Total additions 7,685,909 458,859 1,205,982 718,348,157 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees -- 825,138 -- 110,890,129 Administrative expenses 82,349 30 -- 82,379 TRANSFERS AMONG FUNDS (16,017) (2,743,811) -- -- ----------- ------------ ------------ --------------- NET INCREASE (DECREASE) 7,587,543 (3,110,120) 1,205,982 607,375,649 Beginning of year 920,503 4,710,074 -- 1,676,062,384 ----------- ------------ ------------ --------------- End of year $ 8,508,046 $ 1,599,954 $ 1,205,982 $ 2,283,438,033 ----------- ------------ ------------ --------------- ----------- ------------ ------------ ---------------
(Concluded) 11
Merrill Lynch - 1996 --------------------------------------------------------------------------------- Corporate GSIF U.S. Gov. Bond Fund-- Merrill Lynch Zero Coupon Basic Value Capital High Income & Co., Inc.* Bond Series 3 Fund Fund Portfolio ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ 111,849,742 $ 1,994,876 $ 24,318,584 $ 2,866,902 $ 773,064 Dividends and interest 4,422,361 -- 21,152,905 19,431,574 2,983,401 ------------- ------------- ------------- ------------- ------------- Total investment income 116,272,103 1,994,876 45,471,489 22,298,476 3,756,465 Contributions and rollovers to the Plan 22,042,542 3,184,887 30,000,637 21,731,336 1,833,317 ------------- ------------- ------------- ------------- ------------- Total additions 138,314,645 5,179,763 75,472,126 44,029,812 5,589,782 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 11,306,822 1,843,579 15,122,621 10,477,518 1,423,949 Administrative expenses -- -- -- -- -- TRANSFERS AMONG FUNDS (14,478,273) 15,043,856 (9,006,392) (14,846,829) 5,268,386 ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) 112,529,550 18,380,040 51,343,113 18,705,465 9,434,219 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 189,744,619 37,611,016 263,094,477 180,342,221 27,738,526 ------------- ------------- ------------- ------------- ------------- End of year $ 302,274,169 $ 55,991,056 $ 314,437,590 $ 199,047,686 $ 37,172,745 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Merrill Lynch - 1996 ---------------------------------------------------------------- Corporate Corporate Bond Fund-- Bond Fund-- Intermediate Investment Term Grade Equity Euro Portfolio Portfolio Index Trust Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ (283,963) $ (1,835,420) $ 8,442,594 $ 525,626 Dividends and interest 516,193 2,912,313 -- 2,331,523 ------------- ------------- ------------- ------------- Total investment income 232,230 1,076,893 8,442,594 2,857,149 Contributions and rollovers to the Plan 166,622 5,231,999 6,897,190 1,500,411 ------------- ------------- ------------- ------------- Total additions 398,852 6,308,892 15,339,784 4,357,560 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 461,146 2,846,773 2,481,868 558,028 Administrative expenses -- -- -- -- TRANSFERS AMONG FUNDS (117,575) 163,686 1,872,727 (361,664) ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) (179,869) 3,625,805 14,730,643 3,437,868 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 7,892,874 42,125,258 32,995,352 11,818,806 ------------- ------------- ------------- ------------- End of year $ 7,713,005 $ 45,751,063 $ 47,725,995 $ 15,256,674 ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
(Continued) 12
Merrill Lynch - 1996 --------------------------------------------------------------------------------------- Global Global Global Global Global Fund For Allocation Bond Convertible Holdings Resources Tomorrow Fund Fund Fund Fund Trust ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ (22,371) $ 6,619,104 $ 3,430 $ 16,948 $ 230,514 $ 416,577 Dividends and interest 110,446 17,550,458 60,489 44,038 292,123 89,288 ------------ ------------ ------------ --------- ------------ ------------ Total investment income 88,075 24,169,562 63,919 60,986 522,637 505,865 Contributions and rollovers to the Plan 184,690 24,512,696 156,434 100,821 735,215 356,371 ------------ ------------ ------------ --------- ------------ ------------ Total additions 272,765 48,682,258 220,353 161,807 1,257,852 862,236 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 18,042 7,560,812 235,041 8,046 147,973 84,636 Administrative expenses -- -- -- -- -- -- TRANSFERS AMONG FUNDS 52,764 4,447,183 (189,206) 51,322 90,695 (465,765) ------------ ------------ ------------ --------- ------------ ------------ NET INCREASE (DECREASE) 307,487 45,568,629 (203,894) 205,083 1,200,574 311,835 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 606,001 137,683,501 1,104,010 623,555 3,585,418 3,405,812 ------------ ------------ ------------ --------- ------------ ------------ End of year $ 913,488 $183,252,130 $ 900,116 $ 828,638 $ 4,785,992 $ 3,717,647 ------------ ------------ ------------ --------- ------------ ------------ ------------ ------------ ------------ --------- ------------ ------------
Merrill Lynch - 1996 --------------------------------------------------------------------------- Global Utility Growth Healthcare Pacific Phoenix Fund Fund Fund Fund Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ 154,293 $ 19,061,382 $ (94,843) $ (1,571,134) $ 232,259 Dividends and interest 166,133 10,283,368 796,358 4,091,428 1,270,404 ------------ ------------ ------------ ------------ ------------ Total investment income 320,426 29,344,750 701,515 2,520,294 1,502,663 Contributions and rollovers to the Plan 360,181 21,901,444 1,183,900 7,701,810 2,317,239 ------------ ------------ ------------ ------------ ------------ Total additions 680,607 51,246,194 1,885,415 10,222,104 3,819,902 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 72,565 6,194,264 188,914 1,719,764 571,307 Administrative expenses -- -- -- -- -- TRANSFERS AMONG FUNDS (275,752) 14,416,174 137,711 5,632,176 (1,739,781) ------------ ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) 332,290 59,468,104 1,834,212 14,134,516 1,508,814 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 2,329,270 80,126,691 5,253,280 35,308,179 9,530,940 ------------ ------------ ------------ ------------ ------------ End of year $ 2,661,560 $139,594,795 $ 7,087,492 $ 49,442,695 $ 11,039,754 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(Continued) 13
Merrill Lynch - 1996 ---------------------------------------------------------------------------- Retirement Retirement Select-ten Special Strategic Preservation Reserves Retirement Value Dividend Trust Money Fund Portfolio Fund Fund ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ -- $ -- $ 1,991,087 $ 146,059 $ 17,362 Dividends and interest 2,853,254 6,206,041 102,761 1,478,928 65,222 -------------- -------------- -------------- ------------ ---------- Total investment income 2,853,254 6,206,041 2,093,848 1,624,987 82,584 Contributions and rollovers to the Plan 5,801,394 17,843,979 2,635,987 1,293,439 120,895 -------------- -------------- -------------- ------------ ---------- Total additions 8,654,648 24,050,020 4,729,835 2,918,426 203,479 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 5,485,707 16,315,158 239,342 166,127 31,774 Administrative expenses -- -- -- -- -- TRANSFERS AMONG FUNDS 8,243,193 6,142,097 11,272,204 60,419 17,010 -------------- -------------- -------------- ------------ ---------- NET INCREASE (DECREASE) 11,412,134 13,876,959 15,762,697 2,812,718 188,715 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 43,763,333 121,521,811 -- 6,834,199 397,132 -------------- -------------- -------------- ------------ ---------- End of year $ 55,175,467 $ 135,398,770 $ 15,762,697 $ 9,646,917 $ 585,847 -------------- -------------- -------------- ------------ ---------- -------------- -------------- -------------- ------------ ----------
Merrill Lynch - 1996 ----------------------------------------------------------------------------------- Cash Management Employer Technology Account Contribution 1996 Fund Money Fund Cash Receivable Total ADDITIONS: Investment income: Net appreciation (depreciation) in fair value of investments $ (452,227) $ -- $ -- $ -- $ 175,400,445 Dividends and interest 1,983,803 701,343 -- -- 101,896,155 -------------- ------------ -------------- ----------- ---------------- Total investment income 1,531,576 701,343 -- -- 277,296,600 Contributions and rollovers to the Plan 5,658,008 -- 4,710,074 -- 190,163,518 -------------- ------------ -------------- ------------ ---------------- Total additions 7,189,584 701,343 4,710,074 -- 467,460,118 DEDUCTIONS: Disbursements of benefits to beneficiaries or employees 1,403,400 -- -- -- 86,965,176 Administrative expenses -- 651,986 -- -- 651,986 TRANSFERS AMONG FUNDS (2,662,741) (190,642) (27,563,560) (1,013,423) -- -------------- ------------ -------------- ------------ ---------------- NET INCREASE (DECREASE) 3,123,443 (141,285) (22,853,486) (1,013,423) 379,842,956 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 21,144,376 1,061,788 27,563,560 1,013,423 1,296,219,428 End of year $ 24,267,819 $ 920,503 $ 4,710,074 $ -- $ 1,676,062,384 -------------- ------------ -------------- ------------ ---------------- -------------- ------------ -------------- ------------ ----------------
* Party-in-interest as defined by ERISA. (Concluded) 14 THE MERRILL LYNCH & CO., INC. 401(k) SAVINGS & INVESTMENT PLAN SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997 - -------------------------------------------------------------------------------
Number of Market Description Shares Cost Value COMMON STOCK: Merrill Lynch & Co., Inc.* $ 8,338,810 $228,120,379 $608,207,808 ------------ ------------ FUNDS AND TRUSTS: GSIF U.S. Gov. Zero Coupon Bond Series 3 - Various Trusts 1,010,733 49,595,906 61,904,548 Merrill Lynch: -------------- Adjustable Rate Specialties 12 112 112 Aggressive Bond Index Tier 3 7,954 80,751 81,084 Americas Income Fund 3,339 35,175 32,059 Basic Value Fund 11,183,924 286,206,353 414,699,914 Capital Fund 6,602,811 190,367,385 227,863,002 Cash Management Account Money Fund 8,508,046 8,508,046 8,508,046 Convertible Fund 700 8,958 8,928 Corporate Bond Fund - High Income Portfolio 5,222,121 40,896,240 42,299,181 Corporate Bond Fund - Intermediate Term Portfolio 735,313 8,318,519 8,500,222 Corporate Bond Fund - Investment Grade Portfolio 4,150,246 47,435,647 47,644,820 Developing Capital Markets Fund 35,253 465,001 451,943 Dragon Fund 169,957 1,739,022 1,497,323 Emerging Tigers Fund 143,270 1,243,959 1,136,130 Equity Index Trust 1,097,366 43,439,873 72,890,320 Euro Fund 1,337,865 20,688,682 20,884,073 Federal Securities Trust 5,736 55,838 55,922 Fund for Tomorrow 105,998 1,791,160 1,658,870 Fundamental Growth Fund 154,809 2,672,662 2,466,112 Global Allocation Fund 14,395,601 198,989,378 203,553,804 Global Bond Fund 113,370 1,054,820 1,033,931 Global Convertible Fund 93,393 1,013,829 961,009 Global Holdings Fund 360,322 5,023,537 4,752,645 Global Resources Trust 197,188 3,319,007 2,865,143 Global Small Cap Fund 4,834 45,805 41,134 Global Utility Fund 194,391 2,776,196 3,230,785 Global Value Fund 184,677 2,229,935 2,217,973 Growth Fund 7,054,662 168,416,177 202,116,061 Healthcare Fund 1,830,515 9,079,145 9,353,932 International Equity Fund 6,813 72,996 59,344 International Index Tier 3 6,165 61,331 61,517 Latin America Fund 38,818 581,598 614,877 Pacific Fund 2,517,899 54,346,684 42,728,750 Phoenix Fund 905,063 11,862,631 11,349,489 Retirement Preservation Trust 64,197,059 64,197,059 64,197,059 Retirement Reserves Money Fund 125,677,992 125,678,011 125,677,992 Select Ten Retirement Portfolio 27,505,750 28,907,094 31,988,625 Small Cap Index Tier 3 55,326 547,825 548,665 Special Value Fund 1,226,202 23,919,551 23,947,730 Strategic Dividend Fund 109,541 1,484,361 1,606,960 Technology Fund 5,898,117 30,076,158 22,943,676 Utility Income Fund 30,573 325,722 343,034 World Income Fund 228 2,003 2,016
(Continued) THE MERRILL LYNCH & CO., INC. 401(k) SAVINGS & INVESTMENT PLAN SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997 - -------------------------------------------------------------------------------
Number of Market Description Shares Cost Value FUNDS AND TRUSTS: Hotchkis & Wiley: Balanced Fund 1,384 $ 27,296 $ 26,692 Equity Income Fund 1,033 23,383 21,440 Global Equity Fund 3,779 40,971 38,734 International Fund 40,838 960,131 925,798 Low Duration Fund 4,219 43,306 42,989 Mid-Cap Fund 18,925 247,229 241,678 Short-Term Fund 5,694 57,759 57,739 Small Cap Fund 85,728 2,312,574 2,136,339 Total Return Fund 11,579 154,106 154,120 -------------- -------------- Total Funds and Trusts $1,441,426,897 $1,672,424,289 -------------- -------------- TOTAL INVESTMENTS $1,669,547,276 $2,280,632,097 -------------- -------------- -------------- --------------
* Party-in-interest as defined by ERISA. (Concluded) THE MERRILL LYNCH & CO., INC. 401(k) SAVINGS & INVESTMENT PLAN SUPPLEMENTAL SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1997 - -------------------------------------------------------------------------------
Cost of Assets Purchases Sales Sold Gain COMMON STOCK: Merrill Lynch & Co., Inc.* $195,072,493 $ (826) $124,748,243 $ (882) $ 89,202,602 $ 35,545,641 FUNDS: Merrill Lynch: Basic Value Fund 80,584,259 (711) 35,119,569 (896) 25,262,083 9,857,486 Global Allocation Fund 72,203,612 (735) 42,717,285 (890) 37,907,586 4,809,699 Growth Fund 85,524,597 (866) 32,054,351 (861) 26,193,606 5,860,745 Pacific Fund 45,604,604 (460) 41,753,509 (582) 41,554,235 199,274 Retirement Preservation Trust 110,732,513 (583) 101,408,912 (497) 101,408,912 -- Retirement Reserves Money Fund 127,073,592 (607) 136,425,284 (654) 136,425,284 --
NOTES: Reportable transactions, required to be reported herein, are defined in Section 2520.103-6, Chapter XXV Title 29 (Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974). The figures in parentheses represent the number of purchases or sales included in the reported dollar amounts. * Party-in-interest as defined by ERISA.