MMSI - 12.31.2013 11-K
Table of Contents

UNITED STATES
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

 
(Mark One)
 
x Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934
 
For the fiscal year ended December 31, 2013
 
OR
 
o Transition Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934
 
For the transition period from        to
 
Commission File Number: 000-18592

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
 
MERIT MEDICAL SYSTEMS, INC. 401(k) PROFIT SHARING PLAN

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: 
 
Merit Medical Systems, Inc.
1600 West Merit Parkway
South Jordan, UT 84095



Table of Contents

MERIT MEDICAL SYSTEMS, INC. 401(k) PROFIT SHARING PLAN

TABLE OF CONTENTS
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE:    All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.



Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To the Trustees and Participants of
Merit Medical Systems, Inc. 401(k) Profit Sharing Plan
South Jordan, Utah
 
We have audited the accompanying statements of net assets available for benefits of the Merit Medical Systems, Inc. 401(k) Profit Sharing Plan (the “Plan”) as of December 31, 2013 and 2012, and the related statement of changes in net assets available for benefits for the year ended December 31, 2013. 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 as of December 31, 2013 and 2012, and the changes in net assets available for benefits for the year ended December 31, 2013, in conformity with accounting principles generally accepted in the United States of America.
 
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2013, is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is 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. This schedule is the responsibility of the Plan’s management. Such schedule has been subjected to the auditing procedures applied in our audit of the basic 2013 financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.
 
 
/s/ DELOITTE & TOUCHE LLP

Salt Lake City, Utah
June 27, 2014

 

1

Table of Contents

MERIT MEDICAL SYSTEMS, INC. 401(k) PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2013 AND 2012
 
 
2013
 
2012
ASSETS:
 

 
 

Cash
$
1,515

 
$
79,213

 
 
 
 
Investments - at fair value
69,751,463

 
57,514,790

Receivables:
 

 
 

Notes receivable from participants
2,349,001

 
2,333,389

Employer contributions

 
83,418

Participant contributions

 
162,371

 
 
 
 
  Total receivables
2,349,001

 
2,579,178

 
 
 
 
Total assets
72,101,979

 
60,173,181

 
 
 
 
LIABILITIES:
 

 
 

Accounts payable
30,053

 
58,951

 
 
 
 
Total liabilities
30,053

 
58,951

 
 
 
 
NET ASSETS REFLECTING ALL INVESTMENTS AT FAIR VALUE
72,071,926

 
60,114,230

ADJUSTMENT FROM FAIR VALUE TO CONTRACT VALUE FOR COMMON COLLECTIVE TRUST
(13,449
)
 
(27,698
)
 
 
 
 
NET ASSETS AVAILABLE FOR BENEFITS
$
72,058,477

 
$
60,086,532

 
See notes to financial statements.

 

2

Table of Contents

MERIT MEDICAL SYSTEMS, INC. 401(k) PROFIT SHARING PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2013
 
CONTRIBUTIONS:
 

Employer contributions
$
388,513

Participant contributions
4,545,059

Rollover contributions
1,119,758

 
 

Total contributions
6,053,330

 
 

INVESTMENT INCOME:
 

Net appreciation in fair value of investments
8,778,857

Interest and dividends
7,554

 
 

Net investment income
8,786,411

 
 

Interest income on notes receivable from participants
90,789

 
 

DEDUCTIONS:
 

Benefits paid to participants
(2,885,042
)
Administrative expenses
(73,543
)
 
 

Total deductions
(2,958,585
)
 
 

INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS
11,971,945

 
 

NET ASSETS AVAILABLE FOR BENEFITS:
 

Beginning of year
60,086,532

 
 

End of year
$
72,058,477

 
See notes to financial statements.

 

3

Table of Contents

MERIT MEDICAL SYSTEMS, INC. 401(k) PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2013 AND 2012, AND FOR THE YEAR ENDED DECEMBER 31, 2013
 
1. DESCRIPTION OF THE PLAN
 
The following description of the Merit Medical Systems, Inc. 401(k) Profit Sharing Plan (the “Plan”) is provided for general information purposes only. Reference should be made to the Plan document for more complete information.
 
General — The Plan is a defined contribution plan covering substantially all employees who have completed 90 days of service for Merit Medical Systems, Inc. (the “Company”). The Plan is administered by a trustee who has been appointed by the board of directors of the Company. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA").
 
Contributions — Each year, participants may contribute up to 100% of their pretax annual compensation, as defined in the Plan, subject to certain Internal Revenue Code ("IRC") limitations. The Company contributes, on a discretionary basis, 75% of the first 2%, and 25% of the next 3% of base compensation that a participant contributes to the Plan. The Company suspended employer matching contributions to the Plan in March 2013, but reinstated matching contributions in January 2014.
 
Participant Accounts — Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution, the Company’s matching contribution, and Plan earnings, and is charged with withdrawals and an allocation of Plan losses and administrative expenses. 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 vested account.
 
Investments — Participants direct the investment of their contributions and Company contributions into various investment options offered by the Plan.
 
Vesting — Participants are vested immediately in their contributions, plus actual earnings thereon. Vesting in the Company’s contribution portion of their accounts is based on years of continuous service. A participant vests 20% per year of credited service and is 100% vested after five years of credited service.
 
Notes Receivable from Participants — Participants may borrow from their accounts up to a maximum of $50,000 or 50% of their account balance, whichever is less. The loans are secured by the balance in the participant’s account and bear interest at rates commensurate with local prevailing rates at the time funds are borrowed as determined quarterly by the Plan administrator. Principal and interest are paid ratably through payroll deductions.
 
Payment of Benefits — On termination of service due to death, disability or retirement, a participant may elect to receive either a lump-sum amount equal to the value of the participant’s vested interest in his or her account or annual installments over a ten-year period. For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution.
 
Forfeited Accounts — At December 31, 2013 and 2012, forfeited non-vested accounts totaled $40,492 and $38,341, respectively. These accounts may be used to reduce future employer contributions or to pay administrative expenses. During the year ended December 31, 2013, forfeited non-vested accounts totaling $40,492 were used to reduce the Company's employer contributions.

Administrative Expenses — Administrative expenses of the Plan are paid by the Company as provided in the Plan document.
 
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis of Accounting — The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").
 
Use of Estimates — The preparation of financial statements in conformity with GAAP requires Plan management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein. Actual results could differ from those estimates.
 
Risk and Uncertainties — The Plan utilizes various investment instruments, including mutual funds, common stock, a common collective trust, self-directed brokerage accounts, and interest-bearing cash funds. Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility. Due to the level of risk associated with certain investment

4

Table of Contents

securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
 
Benefit-Responsive Investment Contracts — As described in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 962, Plan Accounting—Defined Contribution Pension Plans, fully benefit-responsive investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the plan.
 
The Plan invests in investment contracts through a collective trust in the Morley Stable Value (“MSV”) Fund. As required under ASC 962, the statements of net assets available for benefits presents the investment in the collective trust at fair value with an offsetting adjustment which, when netted against the fair value, will equal contract value. The weighted average yield of the underlying investments in the MSV Fund for the year ended December 31, 2013, was 1.27%.
 
Payment of Benefits — Benefit payments to participants are recorded upon distribution. There were no amounts allocated to accounts of former participants who elected to withdraw from the Plan but had not been paid at December 31, 2013 and 2012.
 
Excess Contributions Payable — The Plan is required to return contributions received during the Plan year in excess of IRC limits. There were no excess contributions payable at December 31, 2013 and 2012.
 
Investment Valuation and Income Recognition — The Plan’s investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company’s common stock is valued at the closing price reported on the NASDAQ Global Select Market on the last business day of the plan year. Interest-bearing cash funds are stated at amortized cost, which approximates fair value. Shares of mutual funds are valued at the net asset value of shares held by the Plan at year end. The underlying investments within self-directed brokerage accounts are valued at quoted market prices. The common collective trust is stated at fair value and then adjusted to contract value as described above. Fair value of the common collective trust is the net asset value of its underlying investments, and contract value is principal plus accrued interest. The trust invests primarily in a variety of high quality stable value investment contracts (the performance of which may be predicted on underlying fixed income securities), as well as cash and cash equivalents. Redemption is generally permitted daily. Individual participant redemptions for benefit payments and redemptions by participants to reinvest in options that do not compete with the common collective trust are generally permitted without restriction. Were the Plan to initiate a full redemption of the common collective trust, a twelve-month advance written notice is required. The Plan is permitted to redeem investment units at the net asset value on the measurement date, and as a result, the investment is classified as a Level 2 asset in the fair value hierarchy.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
 
Management fees and operating expenses charged to the Plan for investments in mutual funds and the common collective trust are deducted from income earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.
 
Notes Receivable from Participants — Notes receivable from plan participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant loans are recorded as distributions based on the terms of the Plan document.
 


5

Table of Contents

3. FAIR VALUE MEASUREMENTS
 
The fair values of investments are classified based on the lowest level of any input that is significant to the fair value measurement. The Plan used the following methods to determine fair value for purposes of the accompanying financial statements:
 
Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Plan has the ability to access on the report date.

Level 2 — Inputs (financial matrices, models, valuation techniques), other than quoted market prices included in Level 1, that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 — Inputs (such as professional appraisals, quoted prices from inactive markets that require adjustment based on significant assumptions or data that is not current, data from independent sources) that are unobservable for the asset or liability.
 
The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Plan's policy is to recognize significant transfers between levels at the actual date of the event.

The following table provides the amounts and their corresponding level of hierarchy for the Plan’s investments that were measured at fair value on a recurring basis as of December 31, 2013:

Description
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
 
 
 
 
 
 
Interest bearing cash
 
$
4,017,223

 
$

 
$

 
$
4,017,223

Mutual funds:
 
 

 
 

 
 

 
 

 Mid Cap Value
 
4,770,042

 
 

 
 

 
4,770,042

 Small Cap Growth Funds
 
4,513,860

 
 

 
 

 
4,513,860

 Intermediate Investments Grade
 
4,449,893

 
 

 
 

 
4,449,893

 Large Growth
 
3,485,793

 
 

 
 

 
3,485,793

 Multi-Sector Income Funds
 
3,239,174

 
 
 
 
 
3,239,174

 Large Cap Core Funds
 
3,201,304

 
 

 
 

 
3,201,304

 International Large-Cap Growth
 
2,670,623

 
 

 
 

 
2,670,623

 S&P 500 Index Objective Funds
 
2,394,840

 
 
 
 
 
2,394,840

 Large-Cap Value Funds
 
2,076,295

 
 
 
 
 
2,076,295

 Real Estate Funds
 
1,890,319

 
 

 
 

 
1,890,319

 Global Natural Resources Funds
 
1,789,620

 
 

 
 

 
1,789,620

 Pacific Ex Japan Funds
 
1,730,928

 
 
 
 
 
1,730,928

 SmallCap Core Funds
 
1,587,425

 
 

 
 

 
1,587,425

 Emerging Markets Funds
 
1,352,877

 
 

 
 

 
1,352,877

 Treasury Inflated Protected Securities
 
1,095,327

 
 

 
 

 
1,095,327

 International Small/Mid Cap
 
972,911

 
 
 
 
 
972,911

 Gold Oriented Funds
 
920,993

 
 

 
 

 
920,993

 International Multi-Cap Value
 
759,410

 
 
 
 
 
759,410

 Mid-Cap Core Funds
 
699,378

 
 

 
 

 
699,378

 International Multi-Cap Growth
 
616,244

 
 
 
 
 
616,244

 Science /Technology Funds
 
462,094

 
 
 
 
 
462,094

 Small Cap Index (Vanguard)
 
158,296

 
 
 
 
 
158,296

 FTSE Developed International Index
 
20,305

 
 
 
 
 
20,305

 FTSE Emerging Index - Vanguard
 
1,386

 
 
 
 
 
1,386

Common collective trust
 
 

 
2,428,375

 
 

 
2,428,375

Self-directed brokerage accounts:
 
 

 
 

 
 

 
 

Interest bearing cash
 
474,382

 
 

 
 

 
474,382

Merit Medical Systems, Inc. common stock *
 
561,559

 
 

 
 

 
561,559

Equity securities (primarily common stock)
 
2,128,306

 
 

 
 

 
2,128,306

Other
 
425,787

 
 

 
 

 
425,787

Merit Medical Systems, Inc. common stock *
 
14,856,494

 
 

 
 

 
14,856,494

Investments — at fair value
 
$
67,323,088

 
$
2,428,375

 
$

 
$
69,751,463

* Represents a party-in-interest to the Plan.

6

Table of Contents



The following table provides the amounts and their corresponding level of hierarchy for the Plan’s investments that were measured at fair value on a recurring basis as of December 31, 2012:
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
 
 
 
 
 
 
Interest bearing cash
 
$
2,903,152

 
$

 
$

 
$
2,903,152

Mutual funds:
 
 

 
 

 
 

 
 

 Intermediate Investments Grade
 
4,751,136

 
 

 
 

 
4,751,136

 Multi-Sector Income Funds
 
2,783,667

 
 

 
 

 
2,783,667

 Large-Cap Growth Funds
 
2,730,945

 
 

 
 

 
2,730,945

 Small-Cap Growth Funds
 
2,235,988

 
 

 
 

 
2,235,988

 International Large-Cap Growth
 
2,168,165

 
 

 
 

 
2,168,165

 International Multi-Cap Growth
 
2,092,744

 
 

 
 

 
2,092,744

 Emerging Markets Funds
 
2,011,012

 
 

 
 

 
2,011,012

 Treasury Inflated Protected Securities
 
1,959,521

 
 

 
 

 
1,959,521

 Small-Cap Core Funds
 
1,735,519

 
 

 
 

 
1,735,519

 Large-Cap Core Funds
 
1,726,109

 
 

 
 

 
1,726,109

 Real Estate Funds
 
1,617,763

 
 

 
 

 
1,617,763

 Large-Cap Value Funds
 
1,551,959

 
 

 
 

 
1,551,959

 S&P 500 Index Objective Funds
 
1,523,469

 
 

 
 

 
1,523,469

 Global Natural Resources Funds
 
1,518,534

 
 

 
 

 
1,518,534

 Pacific Ex Japan Funds
 
1,467,617

 
 

 
 

 
1,467,617

 Multi-Cap Core Funds
 
1,031,871

 
 

 
 

 
1,031,871

 Gold Oriented Funds
 
851,712

 
 

 
 

 
851,712

 Mid-Cap Core Funds
 
546,759

 
 

 
 

 
546,759

 International Multi-Cap Core
 
501,287

 
 

 
 

 
501,287

 Global Science / Technology Funds
 
256,408

 
 

 
 

 
256,408

 Mid-Cap Value Funds
 
246,424

 
 
 
 
 
246,424

Common collective trust
 
 

 
1,475,633

 
 

 
1,475,633

Self-directed brokerage accounts:
 
 

 
 

 
 

 
 

Interest bearing cash
 
729,093

 
 

 
 

 
729,093

Merit Medical Systems, Inc. common stock *
 
758,303

 
 

 
 

 
758,303

Equity securities (primarily common stock)
 
1,094,306

 
 

 
 

 
1,094,306

Other
 
471,512

 
 

 
 

 
471,512

Merit Medical Systems, Inc. common stock *
 
14,774,182

 
 

 
 

 
14,774,182

Investments — at fair value
 
$
56,039,157

 
$
1,475,633

 
$

 
$
57,514,790


* Represents a party-in-interest to the Plan.

For the years ended December 31, 2013 and 2012, there were no transfers in or out of Levels 1, 2 or 3.

4. INVESTMENTS
 
The Plan’s investments that represented 5% or more of the Plan’s net assets available for benefits were as follows as of December 31, 2013 and 2012:
 
 
2013
 
2012
Merit Medical Systems, Inc. common stock, 979,546 and 1,117,445 shares, respectively *
$
15,418,053

 
$
15,532,485

PIMCO Total Return; Administrative Class Shares, 416,267 and 422,699 shares, respectively
4,449,893

 
4,751,136

Fidelity Money Market
3,962,426

 
 

* Represents a party-in-interest to the Plan.


7

Table of Contents

During the year ended December 31, 2013, the Plan’s common stock and mutual fund investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:
 
Merit Medical Systems, Inc. common stock
2,221,925

Mutual funds:
 
Small Cap Growth Funds
1,184,102

Large Growth
1,005,235

Large Cap Core Funds
754,713

Mid Cap Value
639,325

S&P 500 Index Objective Funds
531,102

Large-Cap Value Funds
471,288

International Large-Cap Growth
439,879

SmallCap Core Funds
406,900

International Multi-Cap Growth
180,590

Multi-Cap Core Funds
175,091

International Small/Mid Cap
166,178

International Multi-Cap Value
154,484

Pacific Ex Japan Funds
142,596

Science /Technology Funds
128,195

Multi-Sector Income Funds
87,094

Mid-Cap Core Funds
85,654

Real Estate Funds
51,120

Emerging Markets Funds
48,939

Small Cap Index (Vanguard)
10,501

FTSE Developed International Index
184

FTSE Emerging Index - Vanguard
(40
)
Global Natural Resources Funds
(15,222
)
Treasury Inflated Protected Securities
(63,330
)
Intermediate Investments Grade
(88,720
)
Gold Oriented Funds
(507,161
)
Self-Directed Brokerage Account
497,660

Common collective trust
70,575

Net appreciation in fair value of investments
$
8,778,857

 
5.  EXEMPT PARTY-IN-INTEREST TRANSACTIONS
 
At December 31, 2013 and 2012, the Plan held 943,869 and 1,062,891 shares, respectively, of the Company’s common stock, with a fair value of $14,856,494 and $14,774,182, respectively.
 
At December 31, 2013 and 2012, there were also 35,677 and 54,554 shares of the Company’s common stock with a fair value of $561,559 and $758,303, respectively, held by the Plan within self-directed brokerage accounts.
 
6. PLAN TERMINATION
 
Although it has not expressed any intention to do so, the Company has the right under the Plan to terminate the Plan subject to the provisions set forth in ERISA. The Company also has the right to discontinue its contributions at any time. In the event that the Plan is terminated, participants would become 100% vested in their accounts.
 
7. FEDERAL INCOME TAX STATUS
 
The Internal Revenue Service ("IRS") has determined and informed the Company by a letter dated October 19, 2011, that the Plan was designed in accordance with the applicable regulations of the IRC. The Plan has been amended since receiving the determination letter; however, the Company and the Plan administrator believe that the Plan is currently designed and operated in compliance with the applicable requirements of the IRC and the Plan and related trust continue to be tax-exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
 
The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2013, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in

8

Table of Contents

the financial statements. The Plan administrator is required to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS and the Department of Labor ("DOL"). The Plan is subject to routine audits by taxing jurisdictions for tax years for which the applicable statutes of limitations have not expired; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2010.
 
8. 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 at December 31, 2013 and 2012:
 
 
 
2013
 
2012
Statement of net assets available for benefits:
 
 

 
 

Net assets available for benefits per the financial statements
 
$
72,058,477

 
$
60,086,532

Adjustment from contract value to fair value for common collective trust
 
13,449

 
27,698

Net assets available for benefits per Form 5500
 
$
72,071,926

 
$
60,114,230

 
For the year ended December 31, 2013, the following is a reconciliation of the change in net assets available for benefits per the financial statements to the Form 5500:
 
Statement of changes in net assets available for benefits:
 
Increase in net assets available for benefits per the financial statements
$
11,971,945

Adjustment from contract value to fair value for common collective trust
(14,249
)
Increase in net assets available for benefits per Form 5500
$
11,957,696

 

9

Table of Contents

SUPPLEMENTAL SCHEDULE


10

Table of Contents

MERIT MEDICAL SYSTEMS, INC. 401(k) PROFIT SHARING PLAN
EMPLOYER ID NO: 87-0447695
PLAN NO: 001
FORM 5500, SCHEDULE H, PART IV, LINE 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2013
 
 
 
Description of Investment, Including
 
 
 
Identity of Issue, Borrower,
Maturity Date, Rate of Interest,
 
Current
 
Lessor or Similar Party
Collateral, Par or Maturity Value
Cost
Value
 
AM Century Inflation Adjusted Bond Fund IV
Registered Investment Company
 **
154,533

 
American Century Short Dur Inflation Protection Bond
Registered Investment Company
 **
940,794

 
Artisan International; Investor Shares
Registered Investment Company
 **
1,053,275

 
Artisan Mid Cap Fund
Registered Investment Company
 **
2,190,372

 
Cohen & Steers Realty Shares
Registered Investment Company
 **
1,890,319

 
Dreyfus Midcap Index Fund
Registered Investment Company
 **
531,485

 
Federated Strategic Value
Registered Investment Company
 **
616,244

 
Fidelity Cash Reserves
Registered Investment Company
 **
46,805

 
Fidelity FMMT Retirement Money Mkt
Registered Investment Company
 **
7,992

 
Fidelity Money Mkt
Registered Investment Company
 **
3,962,426

 
Grandeur Peak International Opportunities
Registered Investment Company
 **
972,911

 
Harbor International Fund; Investor Class Shares
Registered Investment Company
 **
1,617,349

 
JP Morgan Strategic Income Opportunity
Registered Investment Company
 **
3,239,174

 
JP Morgan Mid Cap Value Fund Class
Registered Investment Company
 **
2,048,185

 
MainStay ICAP Select Equity; Class 1 Shares
Registered Investment Company
 **
2,076,295

 
Matthews Asia Dividend Companies
Registered Investment Company
 **
976,334

 
Matthews Asia Small Companies
Registered Investment Company
 **
754,593

*
Merit Medical System, Inc. common stock
Common Stock (943,869 shares)
 **
14,856,494

 
Morley Stable Value Fund
Common Collective Fund (97,048 units)
 **
2,428,375

 
Oakmark Fund; Class 1 Shares
Registered Investment Company
 **
3,201,298

 
Oakmark International Fund; Class 1 Shares
Registered Investment Company
 **
759,410

 
Openheimer Gold & Special Minerals Fund; Class A
Registered Investment Company
 **
920,993

 
PIMCO Total Return Fund; Administrative Class Shares
Registered Investment Company
 **
4,449,893

 
RS Global Natural Resources; Class A
Registered Investment Company
 **
1,789,620

 
RS Technology Fund; Class A Shares
Registered Investment Company
**
462,094

 
Self Directed Brokerage Account
Registered Investment Company
**
3,590,033

 
Fidelity Spartan 500 Index
Registered Investment Company
**
2,394,840

 
T Rowe Price International Funds, Inc. Emerging Markets Stock Fund
Registered Investment Company
**
454,763

 
Vangaurd Developed Markets Index
Registered Investment Company
**
20,305

 
Vangaurd Emerging Markets Stock Index
Registered Investment Company
**
1,386

 
Vanguard Retirement 2050 Fund
Registered Investment Company
**
6

 
Vanguard Small Cap Index - Signal
Registered Investment Company
**
158,296

 
Wasatch Emerging Markets Small Cap
Registered Investment Company
**
898,115

 
Wasatch Small Cap Growth Fund
Registered Investment Company
**
3,134,632

 
Wasatch Small Cap Value Fund
Registered Investment Company
**
1,587,425

 
Wells Fargo Advantage Small Cap Value Investor
Registered Investment Company
**
699,378

 
Wells Fargo Premier Largo Company Growth
Registered Investment Company
**
3,485,793

 
William Blair International Growth Fund; Class N Shares
Registered Investment Company
**
1,379,228

 
Total assets held for investment purposes
 
 
69,751,463

 
 
 
 
 
*
Notes receivable from participants
Maturing 2014 to 2023 at interest rates of 4.25% to 9.25%
 
2,349,001

 
Adjustment from fair value to contract value for common collective trust
 
 
(13,449
)
 
Total
 
 
$
72,087,015

 
 
 
 
 
*
Party-in-interest
**
Cost information is not required for participant-directed investments and, therefore, is not included.

11

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Merit Medical Systems, Inc. 401(k) Plan Administration and Investment Committee (or other 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.
 
 
Merit Medical Systems, Inc
 
401(k) Profit Sharing Plan
 
 
Date: June 27, 2014
/s/ Kent W. Stanger
 
 
 
Kent W. Stanger
 
Member, 401 (k) Plan Administration and
 
Investment Committee



12

Table of Contents

EXHIBIT INDEX

Exhibit
Number                    Description

23.1        Consent of Independent Registered Public Accounting Firm


13