Exhibit 99.3
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM 11-K
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, 1998
[_] 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. CUTW 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, California 90245
TABLE OF CONTENTS
Description Page
- ----------- ----
Statements of Net Assets Available for Benefits
As of December 31, 1998 and 1997 .................................... 3
Statements of Changes in Net Assets Available for Benefits
As of December 31, 1998 and 1997 .................................... 4
Notes to the Financial Statements ................................... 5
2
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS
December 31
-------------------------------
1998 1997
-------------- --------------
Assets
Investments (Note 2, 5, 8 and 9):
Short-term $ 8,094 $ 4,824
Long-term - at fair value:
Brinson U.S. Bond Fund 57,871 46,049
Brinson U.S. Stock Fund 25,748 21,912
Mellon Enhanced Asset Fund 7,151
Brinson U.S. Equity Fund 284,552 262,330
Mellon Stock Index Fund 117,654 62,609
CSC Company stock 676,231 370,740
Employee Loans (Note 6) 27,660 28,881
Plan interest in Master Trust 151,592 144,470
---------- --------
Total Investments 1,356,553 941,815
---------- --------
Receivables:
Employee Contributions 1,715 876
Employer Contributions 750 1,814
Other Receivables 966 7
---------- --------
Total Receivables 3,431 2,697
---------- --------
Total Assets 1,359,984 944,512
---------- --------
Liabilities
Accounts Payable 13,494 2,974
---------- --------
Total Liabilities 13,494 2,974
---------- --------
Net Assets Available for Benefits $1,346,490 $941,538
========== ========
See Notes to Financial Statements
3
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
For the Year For the Year
Ended Ended
December 31, December 31,
1998 1997
-------------- --------------
ADDITIONS
Investment Income:
Net appreciation in fair value of
investments (Note 9) $ 266,598 $ 64,395
Interest 563 400
Dividends 13,449 10,574
Plan interest in Master Trust
investment income 9,551 5,424
---------- --------
290,161 80,793
Less Investment Management Fees (1,191) (770)
---------- --------
288,970 80,023
Contributions:
Employee 107,697 91,718
Employer 49,488 45,963
---------- --------
157,185 137,681
---------- --------
Total Additions 446,155 217,704
DEDUCTIONS
Distributions to Participants
(Notes 1 and 7) 41,203
---------- --------
Total Deductions 41,203
---------- --------
Net Increase 404,952 217,704
---------- --------
Net Assets Available for Benefits:
Beginning of Year 941,538 723,834
---------- --------
End of Year $1,346,490 $941,538
========== ========
See Notes to Financial Statements
4
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Note 1 Description of the Plan
-----------------------
The following brief description of the CSC Outsourcing Inc. CUTW Hourly
Savings Plan (the "Plan") of CSC Outsourcing Inc. (the "Company") is
provided for general information purposes only. Participants should refer to
the Plan document for more complete information.
The Plan became effective August 5, 1995, as a result of the Company
acquiring certain employees of the Southern New England Telephone Company.
The Plan is administered by a Committee consisting of four members (the
"Committee) 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"), administers the Trust pursuant to a Trust
Agreement entered into with the Company. All administrative expenses incurred
for services rendered to the Plan shall be paid from the Trust to the extent
not 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 ("ERISA").
The Company reserves the right to discontinue contributions and to terminate
the Plan at anytime. Upon such termination, the participants' rights to the
Company's contributions vest immediately and the account balances are fully
paid to the participants.
Eligibility and Participation
- -----------------------------
Employees are eligible to participate on specified enrollment dates if they
satisfy the Plan's eligibility requirements, are hourly paid employees of CSC
Outsourcing Inc. and are members of a collective bargaining unit for which
participation in this Plan has been provided by negotiated agreement. A
rehired eligible employee is eligible to rejoin the Plan on the next
enrollment date.
There were approximately 65 and 54 participating employees at December 31,
1998 and 1997, respectively.
5
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Employee 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. The Company will contribute, and forward to the Trust fund 66 2/3%
of the first 1% to 6% for the employee matched contribution together with the
participant's before-tax and after-tax contribution.
The employee base earnings deferred and contributed to the Trust fund cannot
exceed $10,000 and $9,500 for calendar years 1998 and 1997, respectively, the
maximum allowable under the Code. 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 $10,000
and any after-tax contributions with matching Company contributions in excess
of $30,000, 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
either be returned to the Company or applied to reduce future matching
Company contributions.
Participant Accounts
- --------------------
Each participant's account is credited with the participant's contribution
and allocations of the Company's contribution and 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, after-
tax contribution and Company matching accounts.
Distributable Amounts, Withdrawals and Refunds
- ----------------------------------------------
The entire balance in all accounts for participants who retire, die, become
disabled, or are discharged is distributed according to the provisions of the
Plan. There are no forfeitures. The amounts distributed during 1998 and 1997
totaled $3,161 and $0, respectively.
6
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
While still an employee, a participant may make an in-service withdrawal of
all or a part of the vested portion of his or her accounts attributable to
their contributions, as well as vested Company matching contributions, plus
the earnings on those amounts subject to the provisions of the Plan. Upon
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 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. A participant may
request a hardship withdrawal only if he or she first takes a loan of any
available monies in the Plan. Both types of withdrawals are subject to
certain restrictions as described in the Plan document. The withdrawals made
in 1998 and 1997 totaled $38,042 and $0, respectively.
Note 2 Summary of Significant Accounting Policies
------------------------------------------
The accounting and reporting policies followed in preparation of the
financial statements of the Plan of the Company conform with generally
accepted accounting principles. The following is a summary of the
significant policies.
Assets of the Plan
- ------------------
The assets of the Plan are held in a trust with five sub-accounts, which
represents the investment options. The investment income in the respective
sub-accounts is allocated to the participants. Contributions to, and
payments from, the Plan are specifically identified to the applicable sub-
accounts within the Trust.
Use of Estimates
- ----------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reported period.
Actual results could differ from those estimates.
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.
Participants in the Stock Fund may elect to receive distributions in
certificates for shares of the common stock of Computer Sciences Corporation.
7
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Valuation of Investment Securities
- ----------------------------------
Investments in common stocks and mutual funds are stated at fair value based
upon closing sales prices reported on recognized securities exchanges on the
last business day of the month or, for the listed securities having no sales
reported and for unlisted securities, upon last reported bid prices on that
date. Investments in certificates of deposit, money market funds and
corporate debt instruments (commercial paper) are stated at cost which
approximates fair value.
Payment of Benefits
- -------------------
Benefits are recorded when paid.
Note 3 Income Tax Status
-----------------
The Company will apply for a determination letter from the Internal Revenue
Service substantiating that the Plan, as amended, qualifies under Section
401(a) of the Code and, with respect to its qualified cash or deferred
arrangement, under Section 401(k) of the Code. The Committee believes the
Plan is designed and operated to qualify as such. When the requirements of
Section 401(k) of the Code are satisfied, the following tax consequences
result:
(i) A participant is not subject to federal income tax on Company
contributions to the Plan or on income or realized gains in Plan Accounts
attributable to the participant until a distribution from the Plan is made to
him or her.
(ii) The participant is able to exclude from his or her income for federal
income tax purposes, the amount of his or her compensation deferral
contributions, subject to a maximum exclusion of $10,000 and $9,500 for 1998
and 1997, respectively.
(iii) On distribution of a participant's vested interest in the Plan, the
participant generally is subject to federal income taxation, except that: (1)
tax on "net unrealized appreciation" on any Computer Sciences Corporation
stock distributed as a part of a "lump sum distribution" generally is
deferred until the participant disposes of such stock, and (2) tax may be
deferred to the extent the participant is eligible for and complies with
certain rules permitting the "rollover" of a qualifying distribution to
another retirement plan, or individual retirement account.
8
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Note 4 Reconciliation of Financial Statements to Form 5500
---------------------------------------------------
December 31
-------------------------------
1998 1997
-------------- --------------
Net assets available for benefits per
the financial statements $1,346,490 $941,538
Amounts allocated to withdrawing
Participants (1,075) (4,237)
---------- --------
Net assets available for benefits per
Form 5500 $1,345,415 $937,301
========== ========
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
Year ended
December 31, 1998
-----------------
Benefits paid to participants per the financial statements $41,203
Add: Amounts allocated to withdrawing participants
at December 31, 1998 1,075
Less: Amounts allocated to withdrawing participants at
December 31, 1997 (4,237)
-------
Benefits paid to participants per the Form 5500 $38,041
=======
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior to
December 31, 1998 but not paid as of that date.
Note 5 Investment Funds
----------------
Participant contributions - Subject to rules the bargaining unit has 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 unit.
9
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
The Fixed Income Fund
- ---------------------
The Fixed Income Fund represents holdings of units in a Master Trust
investment vehicle and is managed by BlackRock Financial Management. The
investment portfolio is actively managed and consists of short-term (1-3
year) fixed income instruments which include: U.S. Treasury and agency
securities, corporate bonds, mortgage-backed securities and asset-backed
fixed income securities. All of the Fund's assets are rated single-A or
better at the time of purchase and all securities must be U.S. dollar
denominated. All new cash flows into the Fund are invested in this actively
managed bond fund. At December 31, 1998 and 1997, the Plan's interest in the
net assets of the Master Trust was approximately .08% and .09%, respectively.
Investment income and administrative expenses relating to the Master Trust
are allocated to individual plans based upon average monthly balances
invested by each plan.
The following table represents the fair value of investments for the Master
Trust.
December 31
-------------------------------
1998 1997
-------------- --------------
Investments at fair value:
Corporate bonds $118,380,288 $105,242,979
U.S. government securities 57,684,732 46,459,080
Other bonds 16,164,613 6,446,213
Short-term investments 3,777,721 1,371,261
Accrued income 966,721 1,198,486
------------ ------------
$196,974,075 $160,718,019
============ ============
Investment income for the Master Trust is as follows:
December 31
-------------------------------
1998 1997
-------------- --------------
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 1,731,522 $ 450,257
Interest:
Corporate bonds 6,710,396 4,037,722
U.S. government securities 3,786,462 3,243,205
Other bonds 691,664 366,303
Short-term investments 365,214 485,226
------------ ------------
13,285,258 8,582,713
Less investment management fees (227,349) (208,306)
------------ ------------
$ 13,057,909 $ 8,374,407
============ ============
10
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
The Balanced Fund
- -----------------
The Balanced Fund is co-managed by Brinson Partners, Inc. (approximately 89%
as of December 31, 1998) and Mellon Capital Management (approximately 11% as
of December 31, 1998). The Balanced Fund is invested in an actively managed
combination of U.S. equity securities, U.S. fixed income securities and cash
equivalents. The U.S. equity portfolio consists of large, intermediate and
small company stocks. The bond portfolio consists primarily of U.S. Treasury,
government agency and corporate issues. This Fund's objective is to maximize
risk-adjusted total returns relative to the U.S. Balanced Index over a full
economic cycle.
The Active Equity Fund
- ----------------------
The Active Equity Fund is managed by Brinson Partners, Inc. The Fund is
broadly diversified by issue and industry relative to the Wilshire 5000
index. The Fund is typically invested in 70% large capitalization and 30%
intermediate and small capitalization stocks. The Fund may hold up to 50% in
cash equivalents for portfolio risk management purposes. The Fund's objective
is to maximize risk-adjusted total returns relative to the Wilshire 5000
index over a full economic cycle.
The Stock Index Fund
- --------------------
The Fund is managed by Mellon Capital Management. The objective of the Fund
is to modestly exceed the performance of the Standard & Poor's 500 Stock
Index. The Stock Index Fund either invests in a stock portfolio designed to
track the performance of the S&P Stock Index and/or creates a synthetic S&P
500 portfolio using (unleveraged) financial futures and options. Assets used
as collateral for futures/options positions are comprised of various market
or debt instruments.
The Company Stock Fund
- ----------------------
Amounts allocated to this investment alternative will be used to purchase
shares of Computer Sciences Corporation common stock which will be held for
the benefit of the participant. The performance of this fund will depend
upon the performance of Computer Sciences Corporation stock. The Trustee may
purchase Computer Sciences Corporation stock on national securities exchanges
or elsewhere.
11
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
In accordance with rules established by the Committee, participants may
change their investment elections as of the first day of the first payroll
period in the month, if filed within the prescribed time, by delivering an
election form to the Company. Participants may transfer their existing
account balances in 1 percent increments. Transfer elections are effective
as of the first day of the month, or the second month if the participant's
election form is not filed within the time prescribed by the Committee,
following the month in which the participant files his election form with the
Company.
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 fund as the participant contributions.
Note 6 Participant Loans
-----------------
The Plan has a loan provision in place which is available to participants
covered by the bargaining unit. As of December 31, 1998 and 1997, $27,660
and $28,881 of loans were outstanding, respectively.
The loans (which are accounted for in the Loan Fund) 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 Benefits Payable
----------------
As of December 31, 1998 and 1997, net assets available for benefits included
benefits of $1,075 and $4,237 respectively, due to participants who have
withdrawn from participation in the Plan.
12
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Note 8 Investments 1998
----------------
Shares/Units Cost Fair Value
------------ -------- ----------
Fixed Income Fund
Plan Interest in Master Trust sh. 44,409 $152,183 $ 151,592
BNY Short-Term Money Market Fund sh. 905 905 905
Balanced Fund
Brinson Trust Company Inc.
U.S. Bond Fund sh. 442 55,654 57,871
U.S. Stock Fund sh. 63 16,041 25,748
Mellon EB Enhanced Asset Allocation sh. 21 6,566 7,151
Mellon Temporary Investment Fund sh. 174 174 174
BNY Short-Term Money Market Fund sh. 2,355 2,355 2,355
Active Equity Fund
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 743 198,141 284,552
BNY Short-Term Money Market Fund sh 62 62 62
Stock Index Fund
Mellon EB Stock Index Fund sh. 298 80,064 117,654
Mellon Temporary Investment Fund sh. 417 417 417
BNY Short-Term Money Market Fund sh 21 21 21
Company Stock Fund
Computer Sciences Common Stock sh. 10,525 419,017 676,231
BNY Short-Term Money Market Fund sh. 4,160 4,160 4,160
CSC Employee Loan Fund
Participant Loans $ 27,660 27,660 27,660
-------- ----------
$963,420 $1,356,553
======== ==========
Total Long-Term Investments $955,326 $1,348,459
Total Short-Term Investments 8,094 8,094
-------- ----------
$963,420 $1,356,553
======== ==========
13
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Note 8 Investments 1997
----------------
Shares/Units Cost Fair Value
------------ -------- ----------
Fixed Income Fund
Plan Interest in Master Trust sh. 37,149 $145,491 $144,470
Balanced Fund
Brinson Trust Company Inc.
U.S. Bond Fund sh. 380 44,369 46,049
U.S. Stock Fund sh. 63 14,634 21,912
U.S. Cash Management Fund sh. 3,564 3,564 3,564
BNY Short-Term Money Market Fund sh. 856 856 856
Active Equity Fund
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 755 191,200 262,330
Stock Index Fund
Mellon EB Stock Index Fund sh. 199 43,383 60,944
Mellon EB Daily Opening Stock Index sh. 7 1,627 1,665
Mellon Temporary Investment Fund sh. 393 393 393
Company Stock Fund
Computer Sciences Common Stock sh. 4,440 315,269 370,740
BNY Short-Term Money Market Fund sh. 11 11 11
CSC Employee Loan Fund
Participant Loans $ 28,881 28,881 28,881
-------- --------
$789,678 $941,815
======== ========
Total Long-Term Investments $784,854 $936,991
Total Short-Term Investments 4,824 4,824
-------- --------
$789,678 $941,815
14
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Note 9 Statements of Net Assets Available for Benefits by Fund
-------------------------------------------------------
December 31, 1998
--------------------------------------------------------------------------------------------
Fixed Balanced Active Stock Company Loan
Income Fund Equity Index Stock Fund Total
------------ ------------ ------------ ------------ ------------ ------------ --------------
Assets
Short-term Investments $ 905 $ 2,529 $ 62 $ 438 $ 4,160 $ 8,094
Long-term Investments:
Interest in registered
investment Companies 90,770 284,552 117,654 492,976
CSC Company stock
676,231 676,231
Employee Loans $27,660 27,660
Plan Interest in
Master Trust 151,592 151,592
Employee Contributions
Receivable 240 163 230 265 817 1,715
Employer Contribution
Receivable 750 750
Other Receivables 2 371 585 1 7 966
Interfund Transfers (2,613) 486 1,438 1,922 (1,233) 0
-------- ------- -------- -------- -------- ------- ----------
Total Assets 150,126 94,319 286,867 120,280 680,732 27,660 1,359,984
Liabilities
Accounts Payable 133 1,980 923 24 4,130 6,304 13,494
-------- ------- -------- -------- -------- ------- ----------
Total Liabilities 133 1,980 923 24 4,130 6,304 13,494
-------- ------- -------- -------- -------- ------- ----------
Net Assets Available
for Benefits $149,993 $92,339 $285,944 $120,256 $676,602 $21,356 $1,346,490
======== ======= ======== ======== ======== ======= ==========
15
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Note 9 Statements of Net Assets Available for Benefits by Fund
-------------------------------------------------------
December 31, 1997
--------------------------------------------------------------------------------------------
Fixed Balanced Active Stock Company Loan
Income Fund Equity Index Stock Fund Total
------------ ------------ ------------ ------------ ------------ ------------ --------------
Assets
Short-term Investments $ 4,420 $ 393 $ 11 $ 4,824
Long-term Investments:
Interest in registered
investment Companies 67,961 $262,330 62,609 392,900
CSC Company stock 370,740 370,740
Employee Loans $28,881 28,881
Plan Interest in
Master Trust $144,470 144,470
Employee Contributions
Receivable 1,079 454 714 393 (1,764) 876
Employer Contribution
Receivable 1,814 1,814
Other Receivables 1 3 3 7
Interfund Transfers 41 (321) (704) 117 867 0
-------- ------- -------- ------- -------- ------- --------
Total Assets 145,591 72,517 262,340 63,512 371,671 28,881 944,512
Liabilities
Accounts Payable 43 42 160 9 2,720 2,974
-------- ------- -------- ------- -------- ------- --------
Total Liabilities 43 42 160 9 2,720 2,974
-------- ------- -------- ------- -------- ------- --------
Net Assets Available
for Benefits $145,548 $72,475 $262,180 $63,503 $371,671 $26,161 $941,538
======== ======= ======== ======= ======== ======= ========
16
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Note 9 Statements of Changes in Net Assets Available for Benefits by Fund
------------------------------------------------------------------
Year Ended December 31, 1998
--------------------------------------------------------------------------------------------
Fixed Balanced Active Stock Company Loan
Income Fund Equity Index Stock Fund Total
------------ ------------ ------------ ------------ ------------ ------------ --------------
Additions to Net Assets
Attributable to:
Investment Income:
Net Appreciation in Fair
Value of Investments $ 431 $ 5,056 $ 21,044 $ 19,627 $220,440 $ 266,598
Interest 29 326 30 42 136 563
Dividends 3,796 5,067 4,586 13,449
Plan Interest in Master
Trust Investment Income 9,551 9,551
Investment Management
Fees (263) (195) (678) (55) (1,191)
-------- ------- -------- -------- -------- -------- ----------
9,748 8,983 25,463 24,200 220,576 288,970
-------- ------- -------- -------- -------- -------- ----------
Contributions:
Employee 24,230 10,533 15,162 11,865 58,389 (12,482) 107,697
Employer 49,488 49,488
Interfund Transfers (23,985) 539 (10,262) 23,526 10,182 0
-------- ------- -------- -------- -------- -------- ----------
245 11,072 4,900 35,391 118,059 (12,482) 157,185
-------- ------- -------- -------- -------- -------- ----------
Total Additions 9,993 20,055 30,363 59,591 338,635 (12,482) 446,155
-------- ------- -------- -------- -------- -------- ----------
Deductions to Net Assets
Attributable to:
Distributions to
Participants 5,548 191 6,599 2,838 33,704 (7,677) 41,203
-------- ------- -------- -------- -------- -------- ----------
Total Deductions 5,548 191 6,599 2,838 33,704 (7,677) 41,203
-------- ------- -------- -------- -------- -------- ----------
Net Increase 4,445 19,864 23,764 56,753 304,931 (4,805) 404,952
-------- ------- -------- -------- -------- -------- ----------
Net Assets Available for
Benefits:
Beginning of Year 145,548 72,475 262,180 65,503 371,671 26,161 941,538
-------- ------- -------- -------- -------- -------- ----------
End of Year $149,993 $92,339 $285,944 $120,256 $676,602 $ 21,356 $1,346,490
17
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1998
Note 9 Statements of Changes in Net Assets Available for Benefits by Fund
------------------------------------------------------------------
Year Ended December 31, 1997
--------------------------------------------------------------------------------------------
Fixed Balanced Active Stock Company Loan
Income Fund Equity Index Stock Fund Total
------------ ------------ ------------ ------------ ------------ ------------ --------------
Additions to Net Assets
Attributable to:
Investment Income:
Net Appreciation in Fair
Value of Investments
$ 147 $ 5,640 $ 32,552 $11,862 $ 14,194 $ 64,395
Interest 8 86 27 202 77 400
Dividends 3,082 4,801 2,691 10,574
Plan Interest in Master
Trust Investment Income 5,424 5,424
Investment Management Fees (21) (149) (571) (29) (770)
-------- ------- -------- ------- -------- -------- --------
5,558 8,659 36,809 14,726 14,271 80,023
-------- ------- -------- ------- -------- -------- --------
Contributions:
Employee 21,249 10,870 16,371 9,814 43,556 $(10,142) 91,718
Employer 45,963 45,963
Interfund Transfers 47,524 (579) 425 (47) (47,323) 0
-------- ------- -------- ------- -------- -------- --------
68,773 10,291 16,796 9,767 42,196 (10,142) 137,681
-------- ------- -------- ------- -------- -------- --------
Total Additions 74,331 18,950 53,605 24,493 56,467 (10,142) 217,704
-------- ------- -------- ------- -------- -------- --------
Deductions to Net Assets
Attributable to:
Distributions to
Participants 2,592 1,479 3,273 1,798 10,557 (19,700) 0
-------- ------- -------- ------- -------- -------- --------
Total Deductions 2,592 1,479 3,273 1,798 10,557 (19,700) 0
-------- ------- -------- ------- -------- -------- --------
Net Increase 71,739 17,471 50,332 22,695 45,910 9,558 217,704
-------- ------- -------- ------- -------- -------- --------
Net Assets Available for
Benefits:
Beginning of Year 73,809 55,004 211,848 40,808 325,761 16,603 723,834
-------- ------- -------- ------- -------- -------- --------
End of Year $145,548 $72,475 $262,180 $63,503 $371,671 $ 26,161 $941,538
======== ======= ======== ======= ======== ======== ========
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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. CUTW HOURLY SAVINGS PLAN
Date: June 25, 1999 By: /S/ LEON J. LEVEL
-----------------------------------------
Leon J. Level
Chairman,
Computer Sciences Corporation
Retirement Plans Committee
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