SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K/A
ANNUAL REPORT
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 OF 1934.
For the fiscal year ended: December 31, 2003
o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to
Commission file number: 1-4850
A. Full title of plan and the address of the plan, if different from that of the issuer named below: CSC Outsourcing Inc. Hourly Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
Computer Sciences Corporation
2100 East Grand Avenue
El Segundo, CA 90245 |
TABLE OF CONTENTS
Description | Page |
| |
(a) Financial Statements: | |
| |
Report of Independent Registered Public Accounting Firm.................................. | 3 |
| |
Statements of Net Assets Available for Benefits
As of December 31, 2003 and 2002 ................................................................ | 4 |
| |
| |
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2003 and 2002 ......................................... | 5 |
| |
Notes to Financial Statements ............................................................................. | 6 |
| |
(b) Supplemental Schedule: | |
| |
Form 5500, Schedule H, Part IV, Line 4i - Schedule of Assets
(Held at End of Year) as of December 31, 2003 | S-1 |
| |
(c) Exhibit: | |
| |
Exhibit 23: Consent of Independent Registered Public Accounting Firm......... | E-1 |
| |
All other schedules required by 29 CFR 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. |
2
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Computer Sciences Corporation
El Segundo, California
We have audited the accompanying statements of net assets available for benefits of CSC Outsourcing, Inc. Hourly Savings Plan (the "Plan") as of December 31, 2003 and 2002, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with 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. 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 as of December 31, 2003 and 2002, and the changes in net assets available for benefits for the years then ended 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 supplemental schedule of assets held (at end of year) 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 supplemental schedule is the responsibility of the Plan's management. Such supplemental schedule has been subjected to the auditing procedures applied in our audit of the basic 2003 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
Deloitte & Touche LLP
Los Angeles, California
June 24, 2004
3
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS
| | December 31, |
| | 2003 | | 2002 |
ASSETS | | | | |
Investments - at fair value (Notes 1, 2, 5 and 7): | | | | |
Short-term investments | | $ 9,383 | | $ 7,516 |
Long-term investments: | | | | |
Mellon Capital Government Bond Fund | | 1,063,103 | | 1,100,655 |
Frank Russell Active Equity Fund | | 731,696 | | 675,341 |
Computer Sciences Corporation common stock | | 414,568 | | 343,432 |
Participant loans (Note 6) | | 16,374 | | 1,705 |
Interest in Master Trust (Note 5) | | 1,817,506 | | 1,843,043 |
Total investments | | 4,052,630 | | 3,971,692 |
| | | | |
Receivables: | | | | |
Accrued income | | 21 | | 6 |
Total receivables | | 21 | | 6 |
Total Assets | | 4,052,651 | | 3,971,698 |
| | | | |
LIABILITIES | | | | |
Accrued expenses | | 889 | | 893 |
Unsettled trades | | | | 1,933 |
Other | | 5,259 | | 2,176 |
Total Liabilities | | 6,148 | | 5,002 |
NET ASSETS AVAILABLE FOR BENEFITS | | $ 4,046,503
========= | | $ 3,966,696
========= |
See Notes to Financial Statements
4
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
| | For the Years Ended
December 31, |
| | 2003 | | 2002 |
INVESTMENT INCOME (LOSS): | | | | |
Net appreciation (depreciation) in fair value of
investments | | $ 248,146 | | $ (315,421) |
Interest | | 371 | | 185 |
Dividends | | 51,069 | | 55,739 |
Plan interest in Master Trust investment income | | 78,782 | | 181,567 |
Net investment income (loss) | | 378,368 | | (77,930) |
| | | | |
CONTRIBUTIONS: | | | | |
Participant | | 80,482 | | 113,683 |
Employer | | 36,158 | | 52,061 |
Total Contributions | | 116,640 | | 165,744 |
| | | | |
DEDUCTIONS: | | | | |
Distributions to participants (Note 1) | | 411,696 | | 382,757 |
Investment management fees | | 3,505 | | 4,041 |
Total Deductions | | 415,201 | | 386,798 |
Net Increase (Decrease) | | 79,807 | | (298,984) |
| | | | |
Net assets available for benefits at beginning of year | | 3,966,696 | | 4,265,680 |
NET ASSETS AVAILABLE FOR BENEFITS AT
END OF YEAR | $ 4,046,503
========= | | $ 3,966,696
========= |
See Notes to Financial Statements
5
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Note 1 Description of the Plan
The following brief description of the CSC Outsourcing Inc. Hourly Savings Plan (the "Plan"), formerly the TMD Hourly Savings Plan, of Computer Sciences Corporation (the "Company") is provided for general information purposes only. Participants should refer to the Plan document for more complete information.
The Plan became effective May 2, 1992, as a result of the Company acquiring the Data Systems Division of General Dynamics Corporation. The Plan is administered by a committee, Retirement Plans and Employee Benefits Plans Committee of Computer Sciences Corporation (the "Committee"), consisting of four members who are appointed by the Board of Directors of the Company and serve without compensation, being reimbursed by the Company for all expenditures incurred in the discharge of their duties as members of the Committee. The Committee has the power to interpret, construe and administer the Plan and to decide any dispute which may arise under the Plan. The Bank of New York (the "Trustee") is the trustee of the Plan. Certain administrative expenses (including Trustee fees) incurred for services rendered to the Plan are paid by the Company.
The Plan is a voluntary, contributory, defined contribution plan and is intended to satisfy the requirements of Section 401(a) and 401(k) of the Internal Revenue Code (the "Code"). It is also subject to the provisions of the Employee Retirement Income Security Act of 1974 as amended ("ERISA").
Plan Termination - Although it has not expressed any intention to do so, the Company reserves the right to discontinue contributions and to terminate the Plan subject to the provisions of ERISA. Upon such termination, the participants' rights to the Company's contributions vest immediately and the account balances are fully paid to the participants.
Interest in the Common/Collective Trust
The Plan's investments are in the common/collective trust ("CCT") which was established for the investment of assets of the Plan and several other Computer Sciences Corporation sponsored retirement plans. Participants direct the investments of their contributions into various investment options offered by the Plan. Each participating retirement plan has an undivided interest in the CCT. The assets of the CCT are held by the Trustee. At December 31, 2002 and 2001, the Plan's interest in the assets of the CCT was approximately .13% and .18% respectively. Investment income and administrative expenses relating to each discretionary or directed fund within the CCT are allocated to the individual plans based upon average monthly balances invested by each plan in each discretionary or directed fund. As part of the CCT, a portion of the Plan's assets are held in a Master Trust managed by Black Rock Financial Management. At December 31, 2003 and 2002, the Plan's interest in the net assets of th e Master Trust was approximately 89.2% and 89.1%, respectively.
6
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Participants in the CCT consist of the Computer Sciences Corporation Matched Asset Plan, CSC Outsourcing Inc. Hourly Savings Plan, CSC Outsourcing Inc. CUTW Hourly Savings Plan, Computer Sciences Corporation Employee Pension Plan, CSC Outsourcing Inc. Hourly Pension Plan, CSC Outsourcing Inc. CUTW Hourly Pension Plan, CSC/Hughes Retirement Plan, CSR's Range Employees Pension Plan, AEDC Contractors' Retirement Plan-ACS, Computer Sciences Corporation Cash Balance Plan, CSC/Raytheon Retirement Plan, CSC/E-Systems Pension Plan, CSC Pension Equity Plan, Eagle Alliance Employee Pension Plan, DynCorp Capital Accumulation Retirement Plan, and the DynCorp Savings and Retirement Plan (the "Plans").
Eligibility and Participation
Employees are eligible to participate on specified enrollment dates if they satisfy the Plan's service requirements, are hourly paid employees of the Company and are members of a collective bargaining unit for which participation in this Plan has been provided by negotiated agreement. A rehired eligible employee may receive service credit for his or her previous employment and is eligible to rejoin the Plan on the next enrollment date.
Participant and Company Contributions
A participant may authorize before-tax and after-tax contributions to the Plan subject to a maximum level of contributions (a certain percentage of base earnings), as specified by the bargaining agreement covering the employee. Depending on the investment election option the participant elects, the Company will contribute, and forward to the trust fund $0.50 for each $1.00 of the employee matched contribution together with the participant's before-tax and after-tax contribution.
Participants in certain bargaining units who direct 100 percent of their contributions to the Plan's stock fund will receive a monthly matching contribution of $1.00 for each $1.00 of employee matched contributions. Participants under certain bargaining units may contribute additional unmatched contributions at various percentages of base earnings to a maximum specified by the union agreement covering the employee, but only if a participant contributes the maximum matched percentage for which he or she is eligible. The employee's base earnings deferred and contributed to the Trust fund are subject to certain limitations of the Code. Effective January 1, 2002, under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the Plan permits participants age 50 and over to make additional "catch-up" contributions in excess of the statutory limit. For 2002, such "catch-up" contributions could be made up to $1,000 a year, then they are increased each year by $1,000 until $5,00 0 in 2006, and then indexed in $500
7
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
increments. Annual after-tax contributions to the Plan (including employee and Company matching contributions) are limited to $30,000 for each participant. Any compensation deferral in excess of Code limitations, together with income allocable to those excess contributions will be returned to a participant. Any matching Company contributions attributable to any excess contribution, and income allocable thereto, will be applied to reduce future matching Company contributions.
Participants may change their investment elections as of any enrollment date if at least a 30 day prior notice is given. However, participants under certain circumstances may be eligible to change their investment elections within a 30 day window period. Participants may transfer their existing account balances in 25 percent increments. Transfer elections are effective on the first quarterly enrollment date following receipt of a 30 day prior notice from the participant.
Company contributions - In accordance with the provisions of the Plan, the Trustee must promptly invest matching Company contributions paid into the trust fund in the same funds as the participant contributions.
The Plan does not permit employees to rollover a qualified distribution from another plan.
Participant Accounts
Each participant's account is credited with the participant's contribution and the Company's matching contribution and allocations of Plan earnings, and is charged with an allocation of investment management fees. 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.
Vesting of Participants' Interests/Forfeitures
Participants are 100 percent vested at all times in their before-tax and after-tax contribution accounts. Each participant has a vested interest in the value of his or her Company matching contributions account and investment earnings thereon equal to 100 percent after completing five full years of service.
The five-year cliff vesting schedule is overridden under extraordinary circumstances as specified in the Plan document, in which the participant (or beneficiary(ies)) immediately becomes fully vested in all employer contributions and earnings, regardless of his or her number of years of service.
8
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Any nonvested portion of the Company matching contributions account will be forfeited upon withdrawal from the Plan. Forfeitures may be applied to reduce future matching contributions by the Company.
Distributable Amounts, Withdrawals and Refunds
The entire balance in all accounts is distributed to participants who retire, die, become disabled, are laid-off for four consecutive weeks, are discharged without fault, or who involuntarily enter military service. Participants who terminate for other reasons receive their vested balances.
While still an employee, a participant may make an in-service withdrawal of all or a portion of his or her after-tax contributions, subject to frequency of withdrawal penalties, as well as vested Company matching contributions, plus the earnings on those amounts. Upon at least a 30 day written notice to the Committee, a participant may make a hardship withdrawal of his or her before-tax and after-tax contributions, as well as vested Company matching contributions if the Committee finds, after considering the participant's request, that an adequate financial hardship and resulting need for such amount has been demonstrated by the participant. Both types of withdrawals are subject to certain restrictions as described in the Plan document.
Note 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.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires 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.
9
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Risks and Uncertainties
The Plan utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk associated with certain investment 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.
Assets of the Plan
The assets of the Plan are held in a trust with four funds representing the investment options. The investment return in the respective funds is allocated to a participant based on his or her account balance. Contributions to, and payments from, the Plan are specifically identified to the applicable funds within the trust.
Security Transactions
Security transactions are accounted for on a trade date basis. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis.
In general, participants in the CSC Stock Fund receive distributions in certificates for shares of the common stock of the Company.
Valuation of Investment Securities
Investments in common stocks and institutional investment vehicles are stated at fair value based upon closing sales prices reported on recognized securities exchanges on the last business day of the plan year or, for the listed securities having no sales reported and for unlisted securities, upon last reported bid prices on that date. Investments in short-term securities are stated at cost which approximates fair value. Participant loans are valued at outstanding loan balances, which approximates fair value.
Payment of Benefits
Benefits are recorded when paid. Amounts allocated to accounts of persons who have elected to withdraw from the Plan but have not yet been paid were $45,599 and $71,009 at December 31, 2003 and 2002, respectively.
10
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Note 3 Income Tax Status
The Internal Revenue Service has determined and informed the Company by a letter dated May 13, 2003, that the Plan and related trust are designed in accordance with applicable sections of the Code.
The Committee believes that the Plan is designed and operated to qualify under Section 401(a) of the Code and, with respect to its qualified cash or deferred arrangement, under Section 401(k) of the Code.
Note 4 Reconciliation of Financial Statements to Form 5500
| December 31, |
| 2003 | | 2002 |
| | | |
Net assets available for benefits per the financial statements | $ 4,046,503 | | $ 3,966,696 |
Amounts allocated to withdrawing participants | (45,599) | | (71,009) |
Net assets available for benefits per Form 5500 | $ 4,000,904
========= | | $ 3,895,687
======== |
The following is a reconciliation of distributions to participants per the financial statements to the Form 5500:
| Year Ended December 31, |
| 2003 | | 2002 |
| | | |
Distributions to participants per the financial statements | $ 411,696 | | $ 382,757 |
Add: Amounts allocated to withdrawing participants at
end of year | 45,599 | | 71,009 |
Less: Amounts allocated to withdrawing participants at
beginning of year | (71,009) | | (12,431) |
Distributions to participants per the Form 5500 | $ 386,286
======= | | $ 441,335
======= |
Amounts allocated to withdrawing participants are recorded on the Form 5500 for distributions that have been processed and approved for payment prior to December 31, 2003 but not yet paid as of that date.
11
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Note 5 Investment Funds
Participant contributions - Subject to rules the bargaining units have adopted, each participant has the right to designate one or more of the following investment funds established by the Committee for the investment of his or her compensation deferral contributions and after-tax contributions in percentages determined by the bargaining units.
The investment funds are held by the CCT. The fixed income fund investments are in a Master Trust.
The following table represents the assets of the Master Trust.
| | December 31, |
| | 2003 | | 2002 |
Investments at fair value: | | | | |
Black Rock Core Bond Total Return | | $ 1,996,249 | | $ 2,068,241 |
Collective Short Term Investment Fund | | 42,443 | | |
Accrued income | | 6 | | |
| | $ 2,038,698
======== | | $ 2,068,241
======== |
At December 31, 2003 and 2002, the Plan's interest in the Master Trust was approximately 89.2% and 89.1%, respectively.
Investment income of the Master Trust is as follows:
| December 31, |
| 2003 | | 2002 |
Investment income: | | | |
Net (depreciation) appreciation in fair value of investments | $ (41,957) | | $ 72,514 |
Dividends | 130,500 | | 132,294 |
Interest | 61 | | 51 |
| $ 88,604
======= | | $ 204,859
======== |
Investment income and administrative expenses relating to the Master Trust are allocated to participating plans based upon average monthly balances invested by each participating plan.
12
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Note 6 Participant Loans
The Plan has a loan provision in place which is available to participants covered by certain bargaining units. The Plan allows participants to borrow from their vested account balances from a minimum of $500 to a maximum 50% of their vested account up to $50,000, subject to certain limitations. The loans bear interest at the prime rate quoted in the Wall Street Journal plus 1%.
Loan terms range from 1-5 years or up to 15 years for purchase of a primary residence. Loans are recorded at outstanding loan balances, which approximates fair value, on the Statements of Net Assets Available for Benefits.
The loans are deducted from the participants' accounts according to a priority specified in the Plan's loan rules and, within each account, pro rata from the funds based on their balances at the time. Loan repayments are reinvested in the participants' funds according to their current investment election. The repayments are similarly allocated among participants' accounts according to the priority specified in the Plan's rules.
Note 7 Investments in Common/Collective Trust
The following table presents investments in the CCT at fair value.
| | | December 31, |
| | | 2003 | | 2002 |
Investments at Fair Value as Determined by | | | |
| Quoted Market Price | | | |
| Cash (Overdraft) | $ 2,461,294 | | $ (7,062,096) |
| Short-term investment fund | 61,847,211 | | 82,631,988 |
| Money market fund | 133,017,884 | | 134,905,932 |
| Bonds and debentures | 364,928,255 | | 313,525,841 |
| CSC common stock | 750,057,291 | | 271,451,187 |
| International equity portfolios | 127,067,765 | | 80,999,745 |
| Investment in registered investment companies | | | |
| | Active Allocation Fund | 113,850,006 | | 89,474,915 |
| | Brinson Balanced Fund | 53,799,264 | | 44,971,781 |
| | Brinson U.S. Equity Fund | 159,022,807 | | 121,505,104 |
| | Mellon Capital Aggr. Bond Fund | - | | 19,442,536 |
| | Mellon Corporate Bond Fund | 122,096,617 | | 128,727,920 |
| | Mellon EB Enhanced Asset Allocation Fund | 72,712 | | 72,130 |
| | | | | (continued) |
13
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Table of CCT Investments, continued
| | | December 31, |
| | | 2003 | | 2002 |
| | Mellon EB Stock Index Fund | - | | 18,103,136 |
| | Mellon Equity Fund | 413,025,228 | | 252,041,662 |
| | Mellon Equity Completion Fund | 174,398,903 | | 100,432,455 |
| | Mellon Government Bond Fund | 1,063,103 | | 1,100,655 |
| | Mellon Index Fund | 124,536 | | 91,480 |
| | Mellon S&P 500 Index Fund | 297,564,493 | | 214,747,696 |
| | Pacific Mutual Enhanced Bond Fund | 44,115,319 | | 42,048,116 |
| | BlackRock Core Bond Fund | 1,996,249 | | 2,068,241 |
| | Vanguard High Yield Bond Fund | 20,271,765 | | 11,456,659 |
| | Mellon Balanced 40/60 Fund | 33,263,641 | | 25,197,973 |
| | Mellon Balanced 60/40 Fund | 57,080,095 | | 40,452,622 |
| | Mellon Balanced 80/20 Fund | 71,212,974 | | 49,760,056 |
| | Mellon S&P 500 Select Fund | 44,344,320 | | 29,669,793 |
| | Frank Russell Active Equity Fund | 129,963,466 | | 97,710,335 |
| | | 3,176,645,198 | | 2,165,527,862 |
| | | |
Investments at Estimated Fair Value | | | |
| Geewax Terker Hedge fund | 14,304,472 | | 14,208,865 |
| Guaranteed investment contracts | 221,728 | | 208,402 |
| | | 14,526,200 | | 14,417,267 |
| | | | | |
Investments at Cost, Which Approximates Fair Value | | |
| Employee loans | 19,666,768 | | 20,861,715 |
| | Total Common/Collective Trust Assets | $ 3,210,838,166
=========== | | $ 2,200,806,844
=========== |
| | Plan's Interest in CCT Assets | $ 4,052,630
=========== | | $ 3,971,692
=========== |
14
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
The investment income (loss) of the CCT is summarized as follows:
| | Year Ended December 31, |
| | 2003 | | 2002 |
| | | | |
| Bonds and debentures | $ (3,203,211) | | $ 10,015,510 |
| CSC common stock | 225,688,912 | | (108,787,494) |
| International equity portfolios | 31,616,897 | | (8,622,821) |
| Active Allocation Fund | 22,947,087 | | (20,078,067) |
| Brinson Balanced Fund | 8,198,982 | | (5,805,752) |
| Brinson Equity Fund | 35,011,373 | | (24,647,781) |
| Mellon Capital Aggr. Bond Fund | (140,146) | | 690,020 |
| Mellon Corporate Bond Fund | 1,115,632 | | 3,612,141 |
| Mellon EB Enhanced Asset Allocation Fund | 18,131 | | (17,344) |
| Mellon EB Stock Index Fund | 2,612,968 | | (5,441,571) |
| Mellon Equity Fund | 81,802,979 | | (66,788,887) |
| Mellon Equity Completion Fund | 48,521,154 | | (19,801,599) |
| Mellon Government Bond Fund | (25,508) | | 41,899 |
| Mellon Index Fund | 25,167 | | (34,571) |
| Mellon S&P 500 Index Fund | 60,150,473 | | (63,790,246) |
| Pacific Mutual Enhanced Bond Fund | 2,067,203 | | 4,264,662 |
| BlackRock Core Bond Fund | (41,957) | | 72,514 |
| Vanguard High Yield Bond Fund | 1,249,638 | | (626,885) |
| Mellon Balanced 40/60 Fund | 3,819,800 | | (782,720) |
| Mellon Balanced 60/40 Fund | 8,449,807 | | (4,249,948) |
| Mellon Balanced 80/20 Fund | 13,140,177 | | (9,206,704) |
| Mellon S&P 500 Select Fund | 8,613,367 | | (8,038,147) |
| Frank Russell Active Equity Fund | 29,714,910 | | (27,340,693) |
| Geewax Terker Hedge Fund | 7,248 | | (128,110) |
Net depreciation in fair value of investments | 581,361,083 | | (355,492,594) |
Dividends | 26,702,043 | | 35,005,228 |
Interest | 24,604,425 | | 20,008,593 |
| Common/Collective Trust Income (Loss) | $ 632,667,551
========== | | $ (300,478,773)
=========== |
| Plan's Interest in CCT Income (Loss) | $ 378,368
========== | | $ (77,930)
=========== |
15
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003
Note 8 Related-Party Transactions
Certain short-term investment funds are managed by The Bank of New York. The Bank of New York is the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions. The fees associated with these short-term investment funds were paid by the Company.
At December 31, 2003 and 2002, the Plan held 9,373 and 9,969 shares, respectively, of common stock of the Computer Sciences Corporation, the sponsoring employer, with a cost basis of $298,554 and $313,730, respectively.
Note 9 Plan Amendment
Effective January 1, 2003, the Plan was amended to charge the vesting schedule to 0% with less than three years of service and 100% after three years of service.
16
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Act of 1934, the Computer Sciences Corporation Retirement Plans Committee has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.
| CSC OUTSOURCING INC. HOURLY SAVINGS PLAN |
| |
| |
Date: July 1, 2004 | By: /s/ Leon J. Level
Leon J. Level
Chairman,
Computer Sciences Corporation
Retirement Plans Committee |
17
2003
Form 5500, Schedule H, Part IV, Line 4i
CSC Outsourcing Inc. Hourly Savings Plan
PN 010
Computer Sciences Corporation
EIN 95-2043126
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
(a)
| | (b) Identity of issue, borrower, lessor
or similar party | (c) Description of investment, including maturity date,
rate of interest, collateral, par or maturity value | (d) Cost
| | (e) Current Value
|
| | | | | | |
| | | | | | | | |
| | Mellon Capital Management Corp. | | Mutual Fund - Government Bond Fund | | $ 1,025,667 | | $ 1,063,103 |
| | Frank Russell Trust Company | | Mutual Fund - Equity #1 Fund | | | | 907,658 | | 731,696 |
* | | Computer Sciences Corporation | | Common Stock | | | | 298,554 | | 414,568 |
| | Computer Sciences Corporation | | Employee Loan Fund (5.00%-10.50%,
maturing 4/7/06 to 8/22/08) | | | 16,374 | | 16,374 |
| | CSC Defined Contribution
Fixed Income Black Rock Pool | | Master Trust - Core Bond Fund | | | | 1,764,656 | | 1,817,506 |
| | | | | | | | | |
| | Mellon Capital Management Corp. | | Mellon Bank Temporary Investment Fund | | | 2 | | 2 |
* | | Bank of New York | | BNY Short-Term Money Market Fund | | | | 9,381 | | 9,381 |
| | Short-term investment sub-total | 9,383 | | 9,383 |
| | | | | |
Total Assets Held for Investment Purposes | $ 4,022,292 | | $ 4,052,630 |
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S-1
Exhibit 23
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement No. 333-00757 of Computer Sciences Corporation on Form S-8 of our report dated June 24, 2004, appearing in this Annual Report on Form 11-K of the CSC Outsourcing, Inc. Hourly Savings Plan for the year ended December 31, 2003.
/s/ DELOITTE & TOUCHE LLP
Deloitte & Touche LLP
Los Angeles, California
June 28, 2004
E-1
