SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
Form 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 26, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________ to _________________
Commission File No. 1-4850
COMPUTER SCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
Nevada 95-2043126
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
2100 East Grand Avenue
El Segundo, California 90245
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (310) 615-0311
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No [ ]
77,952,347 shares of Common Stock, $1.00 par value, were outstanding on
December 26, 1997.
COMPUTER SCIENCES CORPORATION
Index to Form 10-Q
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Statements of Income,
Third Quarter and Nine Months Ended
December 26, 1997 and December 27, 1996......................... 3
Consolidated Condensed Balance Sheets,
December 26, 1997 and March 28, 1997............................ 4
Consolidated Condensed Statements of Cash Flows,
Nine Months Ended December 26, 1997
and December 27, 1996........................................... 5
Notes to Consolidated Condensed Financial Statements............... 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations............. 9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.............................. 13
2
PART I, ITEM 1. FINANCIAL STATEMENTS
COMPUTER SCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited)
Third Quarter Ended Nine Months Ended
---------------------- ----------------------
(In thousands except Dec. 26, Dec. 27, Dec. 26, Dec. 27,
per-share amounts) 1997 1996 1997 1996
---------- ---------- ---------- ----------
Revenues $1,664,092 $1,421,638 $4,731,666 $4,080,785
---------- ---------- ---------- ----------
Costs of services 1,301,898 1,112,815 3,704,273 3,223,525
Selling, general and
administrative 145,435 122,593 432,317 355,352
Depreciation and
amortization 98,594 89,229 283,312 241,738
Interest expense 14,427 11,937 37,593 30,959
Interest income (2,894) (2,626) (5,595) (6,191)
Special charges (note A) 208,393 48,929
---------- ---------- ---------- ----------
Total costs and
expenses 1,557,460 1,333,948 4,660,293 3,894,312
---------- ---------- ---------- ----------
Income before taxes 106,632 87,690 71,373 186,473
Taxes on income (note A) 37,500 30,300 (108,900) 69,800
---------- ---------- ---------- ----------
Net income $ 69,132 $ 57,390 $ 180,273 $ 116,673
========== ========== ========== ==========
Earnings per share
(notes A and B):
Basic $ 0.89 $ 0.75 $ 2.33 $ 1.54
========== ========== ========== ==========
Diluted $ 0.87 $ 0.73 $ 2.28 $ 1.49
========== ========== ========== ==========
[FN]
See accompanying notes.
3
COMPUTER SCIENCES CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
Dec. 26, Mar. 28,
(In thousands) 1997 1997
----------- -----------
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 94,008 $ 110,726
Receivables 1,526,299 1,294,003
Prepaid expenses and other current assets 244,615 207,698
----------- -----------
Total current assets 1,864,922 1,612,427
----------- -----------
EXCESS OF COST OF BUSINESSES ACQUIRED
OVER RELATED NET ASSETS, NET 543,303 561,670
OTHER ASSETS 661,741 518,692
PROPERTY AND EQUIPMENT, at cost 1,883,823 1,668,905
Less accumulated depreciation and amortization 951,163 780,836
----------- -----------
Property and equipment, net 932,660 888,069
----------- -----------
Total assets $4,002,626 $3,580,858
=========== ===========
CURRENT LIABILITIES:
Short-term debt and current
maturities of long-term debt $ 44,042 $ 29,933
Accounts payable 272,616 295,112
Accrued payroll and related costs 268,314 252,902
Other accrued expenses 431,884 311,283
Deferred revenue 86,405 112,888
Income taxes payable 60,769 84,995
----------- -----------
Total current liabilities 1,164,030 1,087,113
----------- -----------
LONG-TERM DEBT, NET 731,605 630,842
----------- -----------
OTHER LONG-TERM LIABILITIES 202,556 193,343
----------- -----------
STOCKHOLDERS' EQUITY (note C):
Common stock issued, par value $1.00 per share 78,296 76,925
Other stockholders' equity 1,826,139 1,592,635
----------- -----------
Total stockholders' equity 1,904,435 1,669,560
----------- -----------
Total liabilities and stockholders' equity $4,002,626 $3,580,858
=========== ===========
[FN]
See accompanying notes.
4
COMPUTER SCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (unaudited)
Nine Months Ended
----------------------
(In thousands, increase (decrease) in Dec. 26, Dec. 27,
cash and cash equivalents) 1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 180,273 $ 116,673
Adjustments to reconcile net income to net
cash provided by operating activities:
Special items, net of income tax effects 7,057 13,574
Depreciation and amortization 283,312 241,738
Provision for losses on accounts receivable 3,588 13,281
Changes in assets and liabilities, net of
effects of acquisitions:
Increase in assets (307,223) (232,419)
Increase in liabilities 121,197 94,810
---------- ----------
Net cash provided by operating activities 288,204 247,657
---------- ----------
Investing activities:
Purchases of property, plant and equipment (236,397) (238,872)
Acquisitions, net of cash acquired (58,928) (127,799)
Outsourcing contracts (111,947) (50,871)
Purchased and internally developed software (48,421) (63,880)
Other investing cash flows (13,415) (4,383)
---------- ----------
Net cash used in investing activities (469,108) (485,805)
---------- ----------
Financing activities:
Borrowings under commercial paper, net 96,743 54,094
Borrowings (repayments) under lines of credit, net 15,072 (18,175)
Principal payments on long-term debt (6,928) (26,941)
Proceeds from term debt issuance 150,000
Proceeds from stock option transactions 47,753 43,420
Other financing cash flows 11,546 13,750
---------- ----------
Net cash provided by financing activities 164,186 216,148
---------- ----------
Net decrease in cash and cash equivalents (16,718) (22,000)
Cash and cash equivalents at beginning of year 110,726 113,873
---------- ----------
Cash and cash equivalents at end of period $ 94,008 $ 91,873
========== ==========
[FN]
See accompanying notes.
5
COMPUTER SCIENCES CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)
(A) CSC recognized a net special credit of $1.7 million, or 2 cents per
share (diluted), during the first quarter of fiscal 1998 as a result of
developments at CSC Enterprises, a general partnership of which CSC,
through one of its affiliates, is the managing general partner. This
net credit resulted from a tax benefit of $135 million and an after-tax
special charge of $133.3 million.
During the fiscal quarter ended June 27, 1997, certain partners withdrew
from CSC Enterprises. As a result of these withdrawals, CSC Enterprises
took actions that caused CSC to recognize an increase in the tax basis of
certain assets. As required by SFAS No. 109, this tax basis increase
resulted in a deferred tax asset of $135 million and a corresponding
reduction of CSC's provision for income taxes during the first fiscal
quarter.
In connection with these developments, CSC Enterprises reviewed its
operations, its market opportunities and the carrying value of its
assets. Based on this review, plans were initiated during the first
quarter to eliminate certain offerings and write down assets, primarily
within its telecommunications operations. As a result of these
plans, CSC recognized an after-tax special charge of $133.3 million
during the fiscal quarter ended June 27, 1997. This special charge
included goodwill of $35 million, contract termination costs of $33.8
million, deferred contract costs and other assets of $20.5 million,
telecommunications software and accruals of $22.3 million,
telecommunications property, equipment and intangible assets of
$11.7 million and other costs of $10 million.
CSC recognized a special charge in the second quarter of fiscal 1997
related to the August 1, 1996 acquisition of The Continuum Company, Inc.
The amount of the charge, net of income tax benefits on the tax
deductible portion, was $35.3 million or 45 cents per share (diluted).
The charge was comprised of $11 million for investment banking and other
merger expenses; $13.1 million related to the write-off of certain
capitalized software, other assets and intangibles; and $24.8 million
related to the elimination of duplicate data processing facilities,
employee severance costs and contract termination costs.
(B) CSC has adopted Statement of Financial Accounting Standards No. 128,
"Earnings per Share," which requires presentation of both basic
and diluted EPS and restatement of prior period data presented.
This statement also requires that a reconciliation be provided of the
components used in the earnings per share calculation:
6
Third Quarter Ended
--------------------------------------------------------
Dec. 26, 1997 Dec. 27, 1996
--------------------------- ---------------------------
Per-share Per-share
Income Shares amount Income Shares amount
-------- ------ --------- -------- ------ ---------
Basic EPS $ 69,132 77,751 $ 0.89 $ 57,390 76,224 $ 0.75
======== ======= ======== =======
Effect of dilutive
stock options 1,546 2,270
------ ------
Diluted EPS $ 69,132 79,297 $ 0.87 $ 57,390 78,494 $ 0.73
======== ====== ======= ======== ====== =======
Options to purchase 177,429 shares and 10,462 shares were outstanding
during the three months ended December 26, 1997 and December 27, 1996,
respectively, but were not included in the computation of diluted EPS
because the exercise price was greater than the average market price
of the common shares.
Nine Months Ended
--------------------------------------------------------
Dec. 26, 1997 Dec. 27, 1996
--------------------------- ---------------------------
Per-share Per-share
Income Shares amount Income Shares amount
-------- ------ --------- -------- ------ ---------
Basic EPS $180,273 77,331 $ 2.33 $116,673 75,749 $ 1.54
======== ======= ======== =======
Effect of dilutive
stock options 1,647 2,365
------ ------
Diluted EPS $180,273 78,978 $ 2.28 $116,673 78,114 $ 1.49
======== ====== ======= ======== ====== =======
Options to purchase 330,384 shares and 100,040 shares were outstanding
during the nine months ended December 26, 1997 and December 27, 1996,
respectively, but were not included in the computation of diluted EPS
because the exercise price was greater than the average market price
of the common shares.
7
(C) No dividends were paid during the periods presented. There were
78,296,106 shares at December 26, 1997 and 76,924,836 shares at March
28, 1997 of $1.00 par value common stock issued with 343,759 and
332,220 shares, respectively, of treasury stock.
(D) Cash payments for interest on indebtedness were $43.9 million and
$30 million for the nine months ended December 26, 1997
and December 27, 1996, respectively. Cash payments for taxes on
income were $16 million and $42.5 million for the nine months ended
December 26, 1997, and December 27, 1996, respectively.
(E) The financial information reported, which is not necessarily indicative
of the results for a full year, is unaudited but includes all adjustments
which the Company considers necessary for a fair presentation. All such
adjustments are normal recurring adjustments except as described in
Note (A).
8
PART I, ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Third Quarter and Nine Months of Fiscal 1998 versus
Third Quarter and Nine Months of Fiscal 1997
Revenues
The Company derived its revenues from the following market sectors for the
third quarter and nine months, respectively (dollars in millions):
Third Quarter Nine Months
-------------- Pct. ---------------- Pct.
FY98 FY97 Change FY98 FY97 Change
------ ------ ------ ------ ------ ------
U.S. Commercial $ 712 $ 540 32.0% $1,997 $1,539 29.8%
Europe 470 399 17.7 1,260 1,047 20.3
Other International 101 91 10.8 303 265 14.3
------ ------ ------ ------ ------ ------
Total Commercial 1,283 1,030 24.6 3,560 2,851 24.9
U.S. Federal Government 381 392 (2.8) 1,172 1,230 (4.7)
------ ------ ------ ------ ------ ------
Total $1,664 $1,422 17.1% $4,732 $4,081 15.9%
====== ====== ====== ====== ====== ======
During the third quarter and nine months ended December 26, 1997, the
Company's total revenue increased 17.1%, or $242 million, and 15.9% or $651
million, respectively, over the same periods last year. Commercial revenues,
reflecting strong commercial expansion, grew 24.6%, or $253 million over the
same quarter of last year.
U.S. commercial revenues grew 32.0% or $172 million during the third quarter
of fiscal 1998 over the same period last year. Over half of the growth was
provided by information technology outsourcing contracts, including recent
contracts with DuPont, CNA and ING. The remainder was derived principally
from strong demand for consulting and systems integration services and growth
within the financial services sector.
Also during the third quarter, European revenues grew $71 million or 17.7%
over the same period last year. Growth was provided from increased UK
outsourcing business, the DuPont contract and continued demand at CSC Ploenzke
for enterprise-wide solutions such as SAP and BAAN.
The third quarter growth of 10.8% in other international revenues resulted
primarily from CSC's financial services expansion in Australia and Asia.
U.S. federal government revenue accounted for 22.9% of total revenue for the
quarter compared to 27.6% for the same quarter of last year. Federal revenue
decreased 2.8% or $11 million, principally due to the completion last year of
several contracts. During the third quarter of fiscal 1998, the Company
announced $474 million in new federal contracts.
9
As a result of the trends described above, the Company's revenues by market
sector are as follows:
Revenue by Market Sector, Third Quarter Nine Months
as a percentage of total FY98 FY97 FY98 FY97
- ---------------------------- ------ ------ ------ ------
U.S. Commercial 43% 38% 42% 38%
Europe 28 28 27 26
Other International 6 6 6 6
------ ------ ------ ------
Total Commercial 77 72 75 70
U.S. Federal Government 23 28 25 30
------ ------ ------ ------
Total Revenue 100% 100% 100% 100%
====== ====== ====== ======
Costs and Expenses
The Company's costs and expenses as a percentage of revenue are as follows
(dollars in millions, before special items):
Dollar Amount Percentage of Revenue
-------------- -------------------------------
Third Quarter Third Quarter Nine Months
-------------- -------------- --------------
FY98 FY97 FY98 FY97 FY98 FY97
------ ------ ------ ------ ------ ------
Costs of services $1,302 $1,113 78.2% 78.3% 78.3% 79.0%
Selling, general & admin. 145 123 8.7 8.6 9.1 8.7
Depreciation and amort. 99 89 6.0 6.3 6.0 5.9
Interest expense, net 11 9 0.7 0.6 0.7 0.6
------ ------ ------ ------ ------ ------
Total $1,557 $1,334 93.6% 93.8% 94.1% 94.2%
====== ====== ====== ====== ====== ======
Compared with corresponding periods of the prior year, total costs and
expenses improved as a percentage of revenue for the third quarter and nine
months ended December 26, 1997. Costs of services as a percentage of revenue
decreased due to the continued shift in the Company's revenue mix toward
commercial expansion, and performance improvements within U.S. consulting and
systems integration and European operations.
Selling, general and administrative costs increased as a percentage of revenue
due to growth in commercial operations relative to U.S. federal business.
This increase was offset in part by improvement in the selling, general and
administrative percentage within the Company's U.S. outsourcing and consulting
and systems integration operations.
10
Special Charges
As previously reported, the results of operations for the first quarter ended
June 27, 1997 included a net special credit of $1.7 million, or 2 cents per
share (diluted), resulting from developments at CSC Enterprises, a general
partnership which operates the Company's credit services operations and
carries out other business strategies through acquisition and investment. This
net credit resulted from a tax benefit of $135 million and a special charge of
$208.4 ($133.3 million after tax), as described in Note (A) of the
Consolidated Condensed Financial Statements (see Part I, Item I).
The results of operations for last year's second quarter (ended September 27,
1996) included a special charge related to the August 1, 1996 acquisition of
The Continuum Company, Inc. The amount of the charge, net of income tax
benefits on the tax deductible portion, was $35.3 million or 45 cents per
share (diluted). The non-recurring charge was comprised of $11 million for
investment banking and other merger expenses; $13.1 million related to the
write-off of certain capitalized software, other assets and intangibles; and
$24.8 million related to the elimination of duplicate data processing
facilities, employee severance costs and contract termination costs.
Income Before Taxes
Income before taxes increased to $106.6 million, up $18.9 million, or 21.6%
compared with the same quarter last year. The Company's profit margin before
taxes was 6.4% compared to 6.2% for last year's third quarter. Before the
special items, the profit margin was 5.9% for the first nine months of fiscal
1998 compared to 5.8% for the prior period.
Net Income
Net income was $69.1 million for the third quarter of fiscal 1998, up $11.7
million, or 20.5% over last year's earnings. This year's third quarter diluted
earnings per share of 87 cents increased 19.2% over last year's third quarter
diluted earnings per share of 73 cents. On a year to date basis, diluted
earnings per share before special items was $2.26 up 31 cents, or 15.9% over
the same periods for the prior year.
Cash Flows
Cash provided by operating activities was $288.2 million for the nine months
ended December 26, 1997, compared with $247.7 million during the same period
last year. An increase in earnings, non-cash depreciation and amortization
expenses, and favorable changes in working capital were the primary drivers of
the improvement.
The Company's cash expenditures for investing activities totaled $469.1
million for the most recent nine months versus $485.8 million during the same
period of last year. Significant current year activity includes investments
in outsourcing assets in connection with the DuPont contract.
Cash provided by financing activities was $164.2 million for the most recent
nine months versus $216.1 million for the same period last year.
11
Financial Condition
During the first nine months of fiscal 1998, the Company's capital outlays
included $407.3 million of business investments in the form of fixed asset
purchases, acquisitions and new outsourcing contracts. These amounts were
funded from operating cash flows, additional borrowings and existing cash,
which decreased from $110.7 million to $94.0 million. As a result of the net
increase in borrowings, the Company's debt-to-total capitalization ratio
increased to 28.9% at December 26, 1997 versus 28.4% at fiscal 1997 year end.
It is management's opinion that the Company will be able to meet its liquidity
and cash needs for the foreseeable future through the combination of cash
flows from operating activities, cash balances, unused borrowing capacity and
other financing activities, including the issuance of debt and/or equity
securities.
Year 2000
Based on ascertained information, it is management's opinion that any costs or
consequences of potentially incomplete or untimely achievement of Year 2000
readiness will not have a material impact on future financial results. CSC
has experienced significant growth in Year 2000 engagements for the Company's
clients and expects that trend to continue.
Subsequent Events and Pending Transaction
The Company announced on February 2, 1998 a two-for-one stock split in the
form of a 100 percent stock dividend on the Company's common stock. The stock
dividend will be payable on March 23, 1998 to shareholders of record March 2,
1998. The accompanying financial statements have not been restated for the
stock split since the dividend will not be distributed until after the
financial statements have been published.
The Company announced December 29, 1997 that it sold TRIS, a cellular
telephone billing unit of CSC, to International Telecommunications Data
Systems, Inc. The sale was completed on January 2, 1998 and will be reflected
in the Company's fourth quarter results.
On November 25, 1997, the Company exercised its right to sell its collection
services business to Equifax Inc. pursuant to an August 1, 1988 agreement
entered into by the two companies. CSC expects that the sales price will be
approximately $38 million, and that the sale will be completed no later than
May 24, 1998. CSC's credit reporting business is not included in the
transaction.
The above subsequent events and pending transaction, and resolution of other
related matters are not expected to have a material impact on future financial
results.
12
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
2.1 Agreement and Plan of Merger dated as of April 28, 1996 by
and among the Registrant, The Continuum Company, Inc. and
Continental Acquisition, Inc. (k)
3.1 Restated Articles of Incorporation, effective
October 31, 1988 (c)
3.2 Amendment to Restated Articles of Incorporation, effective
August 10, 1992 (i)
3.3 Amendment to Restated Articles of Incorporation, effective
July 31, 1996 (l)
3.4 Certificate of Amendment of Certificate of Designations of
Series A Junior Participating Preferred Stock, effective
August 1, 1996 (n)
3.5 Bylaws, amended and restated effective November 3, 1997
10.1 Annual Management Incentive Plan, effective April 2, 1983* (a)
10.2 1978 Stock Option Plan, amended and restated effective
March 31, 1988* (m)
10.3 1980 Stock Option Plan, amended and restated effective
March 31, 1988* (m)
10.4 1984 Stock Option Plan, amended and restated effective
March 31, 1988* (m)
10.5 1987 Stock Incentive Plan* (b)
10.6 Schedule to the 1987 Stock Incentive Plan for United
Kingdom personnel* (b)
10.7 1990 Stock Incentive Plan* (g)
10.8 1992 Stock Incentive Plan, amended and restated effective
August 9, 1993* (m)
10.9 Schedule to the 1992 Stock Incentive Plan for United
Kingdom personnel* (p)
10.10 1995 Stock Incentive Plan* (j)
10.11 1997 Nonemployee Director Stock Incentive Plan (q)
10.12 Deferred Compensation Plan, amended and restated effective
February 2, 1998
10.13 Severance Plan for Senior Management and Key Employees,
effective February 2, 1998
10.14 Severance Agreement with Van B. Honeycutt effective
February 2, 1998
10.15 Supplemental Executive Retirement Plan, amended and
restated effective February 2, 1998
10.16 1990 Nonemployee Director Retirement Plan, amended and
restated effective February 2, 1998
10.17 Form of Indemnification Agreement for Directors (d)
10.18 Form of Indemnification Agreement for Officers (e)
10.19 Information Technology Services Agreements with General
Dynamics Corporation, dated as of November 4, 1991 (h)
10.20 $350 million Credit Agreement dated as of September 6, 1995 (j)
10.21 First Amendment to $350 Million Credit Agreement dated
September 23, 1996 (o)
10.22 Amended and Restated Rights Agreement, effective
August 1, 1996 (n)
13
27 Financial Data Schedule
28 Revenues by Market Sector
99.1 Annual Report on Form 11-K for the Matched Asset Plan of the
Registrant for the fiscal year ended December 31, 1996 (f)
99.2 Annual Report on Form 11-K for the Hourly Savings Plan of
CSC Outsourcing Inc. for the fiscal year ended
December 31, 1996 (f)
99.3 Annual Report on Form 11-K for the CUTW Hourly Savings Plan
of CSC Outsourcing, Inc. for the fiscal year ended
December 31, 1996 (f)
14
Notes to Exhibit Index:
*Management contract or compensatory plan or agreement
(a)-(f) These exhibits are incorporated herein by reference to the
Company's Annual Report on Form 10-K, as amended, for the fiscal
years ended on the respective dates indicated below:
(a) March 30, 1984 (d) April 3, 1992
(b) April 1, 1988 (e) March 31, 1995
(c) March 31, 1989 (f) March 28, 1997
(g) Incorporated herein by reference to the Registrant's Registration
Statement on Form S-8 filed on August 15, 1990.
(h) Incorporated herein by reference to the Registrant's Current
Report on Form 8-K dated November 4, 1991.
(i) Incorporated herein by reference to the Registrant's Proxy
Statement for its August 10, 1992 Annual Meeting of Stockholders.
(j) Incorporated herein by reference to the Registrant's Quarterly
Report on Form 10-Q filed on November 13, 1995.
(k) Incorporated herein by reference to the Registrant's Current
Report on Form 8-K dated April 28, 1996.
(l) Incorporated herein by reference to the Registrant's Proxy
Statement for its July 31, 1996 Annual Meeting of Stockholders
(m) Incorporated herein by reference to the Registrant's Quarterly
Report on Form 10-Q filed on August 12, 1996.
(n) Incorporated herein by reference to the Registrant's Current
Report on Form 8-K dated August 1, 1996
(o) Incorporated herein by reference to the Registrant's Quarterly
Report on Form 10-Q filed on November 12, 1996.
(p) Incorporated herein by reference to the Registrant's Quarterly
Report on Form 10-Q filed on February 10, 1997.
(q) Incorporated herein by reference to the Registrant's Proxy
Statement for its August 11, 1997 Annual Meeting of Stockholders.
b. Reports on Form 8-K:
There were no reports on Form 8-K filed during the third quarter of fiscal
1998.
15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMPUTER SCIENCES CORPORATION
Date: February 9, 1998 By: /s/ Scott M. Delanty
-----------------------------
Scott M. Delanty
Vice President and Controller
Chief Accounting Officer
16
INDEX TO EXHIBITS
Exhibit
Number Description of Exhibit
- ------- ----------------------
10.12 Deferred Compensation Plan, amended and restated effective
February 2, 1998
10.13 Severance Plan for Senior Management and Key Employees,
effective February 2, 1998
10.14 Severance Agreement with Van B. Honeycutt
10.15 Supplemental Executive Retirement Plan, amended and
restated effective February 2, 1998
10.16 1990 Nonemployee Director Retirement Plan, amended and
restated effective February 2, 1998
27 Financial Data Schedule
28 Revenues by Market Sector
17