EXHIBIT 99.1
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
FOR THE PLAN YEAR ENDED DECEMBER 31, 1994
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
COMPUTER SCIENCES CORPORATION
2100 EAST GRAND AVENUE
EL SEGUNDO, CALIFORNIA 90245
Item 1. CHANGES IN THE PLAN
-------------------
None
Item 2. CHANGES IN INVESTMENT POLICY
----------------------------
None
Item 3. CONTRIBUTIONS UNDER THE PLAN
----------------------------
Not applicable, since Computer Sciences Corporation (the "Company")
contributions are nondiscretionary and are measured to the participants'
contributions.
Item 4. PARTICIPATING EMPLOYEES
-----------------------
As of December 31, 1994, approximately 16,978 employees were eligible to
participate in the Plan and approximately 12,172 employees participated.
Item 5. ADMINISTRATION OF THE PLAN
--------------------------
(a) The Plan is administered by a committee, consisting of officers or other
employees of the Company appointed by the Board of Directors. The members of
the committee serve at the pleasure of the Company's Board without compensation.
Expenses incurred by the members of the committee in exercising their duties are
currently paid by the Company, but if not paid by the Company in the future, may
be charged to the Trust and allocated to participants' accounts as determined by
the committee. At the present time, there are four members of the committee.
The following is a list of their names, addresses and positions held with the
Company.
Name Position or Office Held with Company
- ---- ------------------------------------
Denis M. Crane Vice President and Controller
Hayward D. Fisk Vice President, General Counsel and Secretary
Leon J. Level Vice President and Chief Financial Officer and
Director of the Company
L. Scott Sharpe Vice President, Human Resources
The address of each committee member listed above is 2100 East Grand Avenue, El
Segundo, California 90245.
(b) None of the members of the committee received any compensation from the Plan
for services during the Plan year which ended December 31, 1994.
1
Item 6. CUSTODIAN OF INVESTMENTS
------------------------
(a) The Bank of New York, One Wall Street, New York, New York 10286, was
appointed the Trustee and Custodian of the Plan's assets, pursuant to a Trust
agreement entered into with the Company.
(b) Presently, the Company elects to pay expenses related to the operation of
the Trust, such as Trustee's fees, internal administrative costs, recordkeeping
fees for monitoring individual accounts, costs of voting solicitation and
furnishing of stockholder communications, and costs of communications, materials
and forms.
Certain administrative and operating expenses incurred for services rendered to
the Plan during 1994 and 1993 were paid by the Company.
Expenses related to investment management fees, brokerage fees, transfer taxes
and other expenses incidental to the purchase and sale of Trust assets were paid
by the Trustee from the assets of the Plan during 1994 and 1993.
(c) The Bank of New York has the following insurance coverage:
(1) A Financial Institutions Bond including Electronic Computer Crime Coverage
with per loss limits of $100,000,000 covers dishonesty of employees and forgery
of securities, checks, drafts or other written instruments.
(2) An All-risk on Premises and Transit Policy with per loss limits of
$500,000,000 provides coverage for loss or destruction of cash and securities on
or off premises (including securities of others held in custody).
(3) Mail Insurance with per envelope limit of $10,000,000 for negotiable
securities and $100,000,000 for non-negotiable securities provides coverage for
all risk of physical loss of property sent by registered mail or overnight
courier.
Item 7. REPORTS TO PARTICIPATING EMPLOYEES
----------------------------------
During each quarter of the Plan year, each participant received an individual
participant statement disclosing the status of his or her account during the
preceding quarter (including the opening and closing balance, a breakdown of
participant contributions, matching Company contributions, investment earnings
and change in value of Company stock).
A copy of the prospectus dated as of February 28, 1989 relating to the Plan was
distributed to each then-current participant. The prospectus describes the Plan,
its operation and related matters, as included in the Company's Registration
Statement on Form S-8, as amended from time to time, under the Securities Act of
1933.
The summary annual report of the Plan was distributed and will continue to be
distributed to each participant within nine months or up to eleven months with
extension, following the close of the Plan year.
2
Item 8. INVESTMENT OF FUNDS
-------------------
Since 1987, the Plan's assets have been invested in a fixed income fund, a
balanced fund, an active equity fund and in the common stock of the Company. In
October 1991, a stock index fund was added to the Plan. In January 1992, an
employee loan fund was added to the Plan.
Any fees incidental to the management of the investments of a particular
investment fund are netted against the return of that fund to the assets of the
Plan.
Item 9. FINANCIAL STATEMENTS AND EXHIBITS
---------------------------------
Description Page
- ----------- ----
(a) Financial Statements:
Independent Auditors' Report ......................................... F-1
Statements of Net Assets Available for Benefits
As of December 31, 1994 and 1993 ..................................... F-2
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 1994 and 1993 ....................... F-3
Notes to Financial Statements ........................................ F-4
(b) Exhibit:
Independent Auditors' Consent ........................................ E-1
3
[LETTERHEAD OF DELOITTE & TOUCHE LLP]
INDEPENDENT AUDITORS' REPORT
Employee Retirement Plan Committee
Computer Sciences Corporation
El Segundo, California:
We have audited the accompanying statements of net assets available for plan
benefits of the Computer Sciences Corporation Matched Asset Plan (the "Plan") as
of December 31, 1994 and 1993, and the related statements of changes in net
assets available for plan 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 generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for plan benefits of the Plan as of December
31, 1994 and 1993, and the changes in its net assets available for plan benefits
for the years then ended in conformity with generally accepted accounting
principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in Item
9 on page 3 are presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These supplemental schedules are the responsibility of the Plan's
management. Such schedules have been subjected to the auditing procedures
applied in our audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/ DELOITTE & TOUCHE LLP
Los Angeles, California
June 2, 1995
F-1
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS
DECEMBER 31
----------------------------------
1994 1993
---------------- ----------------
ASSETS
INVESTMENTS:
At fair value
Long-term Investments (Note 8) $ 370,387,281 $ 266,423,089
Short-term Investments (Note 8) 53,628,688 3,433,301
---------------- ----------------
Total investments 424,015,969 269,856,390
---------------- ----------------
Receivables:
Employee Contribution Receivable 2,129,209 1,434,221
Employer Contribution Receivable 395,663 273,903
Unsettled Trade Receivables 110,378
Merger Receivable (Note 7) 6,840,600
Other Assets 83,981 945,967
---------------- ----------------
Total Receivables 9,559,831 2,654,091
---------------- ----------------
TOTAL ASSETS 433,575,800 272,510,481
---------------- ----------------
LIABILITIES
Amounts Payable (Notes 6) 720,416 1,786,931
Unsettled Trade Payables 1,122,161
Forfeitures Payable 113,083 5,087
---------------- ----------------
TOTAL LIABILITIES 1,955,660 1,792,018
---------------- ----------------
NET ASSETS AVAILABLE FOR BENEFITS $ 431,620,140 $ 270,718,463
================ ================
See notes to financial statements.
F-2
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
Year Ended December 31
--------------------------------------
1994 1993
----------------- -----------------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income:
Net Appreciation in Fair Value of Investments (Note 9) $ 33,865,109 $ 22,644,484
Interest 6,449,948 5,620,588
Dividends 4,792,408 3,493,718
Investment Management Fees (440,000) (276,510)
----------------- -----------------
44,667,465 31,482,280
----------------- -----------------
Contributions:
Employee 46,357,663 38,690,558
Employer 8,228,139 7,213,719
Employee Rollovers 7,282,488 5,071,245
Forfeitures & Other (Note 1) (550,525) (601,616)
Transfers From Other Plans (Note 7) 73,856,783 3,406,340
----------------- -----------------
135,174,548 53,780,246
TOTAL ADDITIONS ----------------- -----------------
179,842,013 85,262,526
----------------- -----------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants (Notes 1 & 6) 18,940,336 16,345,030
----------------- -----------------
TOTAL DEDUCTIONS 18,940,336 16,345,030
----------------- -----------------
NET INCREASE 160,901,677 68,917,496
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 270,718,463 201,800,967
----------------- -----------------
End of Year $ 431,620,140 $ 270,718,463
================= =================
See notes to financial statements.
F-3
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 1. Description of the Plan
-----------------------
The following brief description of the Computer Sciences Corporation Matched
Asset Plan (the "Plan") is provided for general information purposes only.
Participants should refer to the Plan documents for more complete information.
The Plan was adopted by the action of the Board of Directors of Computer
Sciences Corporation (the "Company") taken on November 3, 1986, and constitutes
an amendment and restatement of the Employee Stock Purchase Plan (the "Prior
Plan").
The Plan is a continuation of the Prior Plan and qualified under Internal
Revenue Code (the "Code"), as amended, Section 401(a) and, effective as of
January 1, 1987, with respect to the portion thereof that qualifies as a
qualified cash or deferred arrangement, to satisfy the requirement of Code
Section 401(k).
The Company reserves the right 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
- -----------------------------
Any eligible employee who has satisfied the Plan's age and service requirements,
and is employed by the Company, and who receives a stated compensation in
respect of employment on the payroll of the Company, is eligible to become a
participant, with the exception of a person who is represented by a collective
bargaining unit and whose benefits have been the subject of good faith
bargaining under a contract that does not specify that such person is eligible
to participate in the Plan. In addition, the Company may determine to exempt all
employees of any division, unit, facility or class from coverage under the Plan.
Any person who leaves the employ of the Company and, at a later time becomes re-
employed, must reapply to participate in the Plan, provided he or she otherwise
meets the eligibility requirements.
There were approximately 12,172 participating employees at December 31, 1994.
Employee and Company Contributions
- ----------------------------------
Subject to certain limitations described below, an eligible employee who elects
to become a participant may authorize any whole percentage (at least 1% but not
more than 15%) of such employee's monthly compensation (as defined in the Plan)
to be deferred and contributed to the Trust Fund on his or her behalf, up to a
maximum amount of $9,240 for calendar year 1994. Any compensation deferral in
excess of $9,240, together with income allocable to that excess, will be
returned to a participant. Any matching Company contributions attributable to
any excess contribution, and income allocable thereto, will either be
F-4
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
returned to the Company or applied to reduce future matching Company
contributions.
In order to qualify for the special tax treatment accorded to plans by Section
401(k) of the Code, contributions on behalf of participants under the Plan must
meet two nondiscrimination tests designed to prevent a disproportionate
compensation deferral election by employees who are highly compensated in
relation to other employees. The Committee may cause the percentage authorized
by the highly compensated participants to be reduced if the Plan does not meet
both of the nondiscrimination tests.
A participant is not permitted to make voluntary after-tax contributions to the
Plan.
The Company will contribute and forward to the Trust Fund, together with a
compensation deferral contribution equal to each participant's qualifying
compensation deferral, an amount equal to 50% of the first 3% of the
participant's compensation deferral except for a small number of participants,
who under the terms of their contract agreement, the Company will contribute an
amount equal to 50% of the first 4% of the participant's compensation deferral.
Matching contributions will be invested in the Company Stock Fund, which invests
primarily in the common stock of Computer Sciences Corporation.
Vesting of Participants' Interests/Forfeitures
- ----------------------------------------------
A participant's interest in his or her Compensation Deferral Account, Retirement
Account, After Tax Account, and Rollover Account is at all times fully vested in
the participant or, when appropriate, in the participant's beneficiary or legal
representative.
The vested interest of each participant in the value of his or her Matching
Contributions Account depends on the number of full years of service such
participant has with the Company, as shown below:
Number of Full Years of Service Vested Interest in Matching Contribution
-------------------------------- ----------------------------------------
1 .................................................. 0%
2 .................................................. 25%
3 .................................................. 50%
4 .................................................. 75%
5 or more .......................................... 100% (except for
a small number of participants, who under the terms of their contract agreement will vest
100% after 2 years or more)
Any nonvested portion of the Matching Contributions Account will be forfeited
upon withdrawal from the Plan. Forfeitures may be applied to reduce future
matching contributions by the Company. Such forfeitures during 1994 and 1993
amounted to $550,525 and $545,965, respectively.
F-5
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Distributable Amounts, Withdrawals and Refunds
- ----------------------------------------------
A participant may become entitled to a distribution of his or her distributable
benefit by reason of retirement, death, total and permanent disability,
voluntary termination of employment, or dismissal. The rules of payment of a
participant's distributable benefit depend upon age of the participant, the
number of years of service completed by the participant and the type of
severance. The total amounts distributed during 1994 and 1993 were $18,631,991
and $16,029,164, respectively.
While still an employee, a participant may, upon at least 30 days' written
notice to the Committee, make a withdrawal of his or her compensation deferral
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. These withdrawals during 1994 and 1993
totaled $308,345 and $315,866, respectively.
In order for the Plan to meet the nondiscrimination tests, the Committee has
caused the compensation deferral percentage for certain highly compensated
employees to be reduced, which has also resulted in the return of excess
compensation deferrals.
Federal Income Tax Consequences
- -------------------------------
The Plan is qualified under Section 401(a) of the Code and, with respect to its
qualified cash or deferred arrangement, under Section 401(k) of the Code. Since
the requirements of Section 401(k) of the Code are satisfied, the following tax
consequences result:
(i) A participant would not be 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 would be 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 $9,240 for 1994 and $8,994 for
1993 taxable years of the participant.
(iii) On distribution of a participant's vested interest in the Plan, the
participant generally would be subject to federal income taxation, except that:
(1) tax on "net unrealized appreciation" on any Company stock distributed as a
part of a "lump sum distribution" generally would be 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.
F-6
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
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 representing
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.
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 Stock Fund receive distributions in certificates
for shares of the common stock of the Company.
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 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 certificates of deposit, money market funds, and corporate
debt instruments (commercial paper) are stated at cost which approximates fair
value.
Valuation of Interest in Pooled Separate Accounts
- -------------------------------------------------
The Plan's interest in pooled separate accounts represent guaranteed investment
contracts. The guaranteed investment contracts are valued at contract value.
Contract value represents contributions made by participants, plus interest at
the contract rates, less withdrawals or transfers by participants.
Note 3. Income Tax Status
-----------------
The Company has received a favorable 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.
F-7
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 4. Investment Funds
----------------
The investment funds of the Plan are as follows:
Participant contributions - Subject to rules the Committee may from time to time
adopt, 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, in increments of 10%.
The Fixed Income Fund.
The fund is invested in contracts with insurance companies and other financial
institutions. These institutions assure repayment of principal with interest at
a fixed rate of return for the life of each contract. This is a commitment by
the insurance company or the financial institution to make agreed upon payments
and that agreement is not secured, insured or guaranteed by the Company or any
other third party. The interest income earned by these contracts is reported as
a blended rate.
The Balanced Fund.
The fund is invested with Brinson Trust Company. The Brinson Trust U.S. Balanced
Fund is an actively managed portfolio which applies their asset allocation
expertise to U.S. stocks, bonds and cash. Brinson Partners' U.S. balanced
investment strategy is developed in the context of their global asset allocation
process and is based on analysis of long-term economic and market conditions.
The stock portfolio will typically consist of large, intermediate and small
companies which they believe offer sound value to the investor. The bond portion
of the portfolio emphasizes high quality and is primarily invested in U.S.
Treasury, government agency and corporate issues. This fund's investment
objective is to maximize total return, consisting of capital appreciation and
current income, without assuming undue risk.
The Active Equity Fund.
The fund is invested with Brinson Trust Company. The Brinson Trust U.S. Equity
Portfolio is invested in common stocks traded in the U.S. The fund's objective
is to maximize total return which consists of capital appreciation and current
income. The fund's investment philosophy is to utilize the firm's extensive in-
house research in the stock selection process.
The Stock Index Fund.
The fund is invested with the Mellon Capital Management Stock Index Fund. The
fund is designed to closely follow or track the movement of the Standard &
Poor's 500 Composite Price Index (S&P 500), with enhancement to the index. This
fund provides an opportunity to invest in a broadly diversified portfolio of
U.S. stocks using a passive or "indexed" approach.
F-8
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
The Company Stock Fund:
Amounts allocated to this investment alternative will be used to purchase shares
of CSC common stock which will be held for the benefit of the participant. The
performance of this investment will depend upon the performance of CSC's stock.
The Trustee may purchase Company stock on national securities exchanges or
elsewhere.
After an initial election has been made, a participant may, with at least a 30
day prior written notice to the Committee, designate a different Fund into
which future compensation deferral contributions shall be invested as of the
first day of any payroll period that coincides with or immediately follows the
first day of a calendar quarter. In addition, with at least a 30 day prior
written notice to the Committee and subject to the above rules, a participant
may elect to redesignate any amounts in his or her accounts as of the last
business day of any calendar quarter to be invested in a different Fund.
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 Company Stock Fund. An exception is in the case of a participant who
has (i) attained at least age 59-1/2, or (ii) has been credited with at least
five years of service and has attained at least age 55 and has made an election
to designate different Funds.
Number of Participants
- ----------------------
The approximate number of participants having account balances in each of the
six separate funds at December 31, 1994 was as follows:
Investment Fund Number of Participants
--------------- ----------------------
The Fixed Income Fund.................... 9,715
The Balanced Fund........................ 8,968
The Active Equity Fund................... 9,436
The Stock Index Fund..................... 4,290
The Company Stock Fund................... 14,250
The Loan Fund............................ 3,932
The sum of the number of participants shown above is greater than the total
number of participants in the Plan because many are participating in more than
one fund.
F-9
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 5. Participant Loans
-----------------
The Plan allows participants to borrow from their vested account balances,
subject to certain limitations. The loans bear interest at the prime rate quoted
in the Wall Street Journal plus 1%, which is set on a quarterly basis.
The loans (which are accounted for in the Loan Fund) are deducted from the
participants' vested account balances based on their investment elections with
respect to the funds described in Note 4. Loan repayments are credited to the
participants' accounts according to their current investment election.
As of December 31, 1994, the Loan Fund had 1,937 participants with loan amounts
between $1,000 and $50,000, bearing interest at rates between 7.00% and 9.50%.
These loans have maturing dates between January 1, 1995 and April 30, 2009.
As of December 31, 1993, the Loan Fund had 1,547 participants with loan amounts
between $1,000 and $50,000, bearing interest at rates between 6.15% and 11.31%.
These loans have maturing dates between January 7, 1994 and January 16, 2009.
Note 6. Benefits Payable
----------------
In 1993, the Plan changed its method of accounting for benefits payable to
comply with the 1993 AICPA Audit and Accounting Guide, Audits of Employee
------------------
Benefit Plans. The new guidance requires that benefits payable to persons who
- -------------
have withdrawn from participation in a defined contribution plan be disclosed in
the footnotes to the financial statements rather than be recorded as a liability
of the Plan. As of December 31, 1994 and 1993, net assets available for benefits
included benefits of $4,060,233 and $1,142,210, respectively, due to
participants who have withdrawn from participation in the Plan.
Note 7. Merging of Plans
----------------
The Plan received $37,254,403 on December 30, 1994; $4,232,106 on March 31,
1995; and $2,608,494 on May 31, 1995 from the CSC Professional Services Group,
Inc. Tax-Deferred Savings and Retirement Plan. This amount represents the
balances of 1,516 participants as of December 30, 1994.
The Plan received $5,267,201 on October 31, 1994; $75,742 on November 8, 1994;
$16,944,960 on November 17, 1994; $3,168,175 on November 21, 1994, and $10,683
on November 30, 1994, from the CSC Index Savings and Retirement Plan, a
subsidiary of the Company. This amount represents the balances of 492
participants as of October 31, 1994.
F-10
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
The Plan received $1,842,274 on October 11, 1994; $1,715,535 on October 24,
1994; and $464 on November 3, 1994; $6,226 on November 10, 1994; $85,596 on
November 30, 1994; and $241,702 on December 31, 1994, from the Cleveland
Consulting Associates, Inc. Profit Sharing and Savings Plan, a subsidiary of the
Company. This amount represents the balances of 81 participants as of September
31, 1994.
The Plan received $2,135,154 on January 7, 1993; $415,562 on January 31, 1993;
and $168,070 on May 27, 1993, from the Intelicom Solutions Corporation
Employees' Profit Sharing Plan, a subsidiary of the Company. This amount
represents the balances of 142 participants as of December 31, 1992.
The Plan received $497, on January 27, 1993, from the Phoenix Telecom Inc.,
Retirement Savings Plan, a subsidiary of the Company. This amount represents the
balances of 36 participants as of December 31, 1992.
The Plan received $95,000, on June 30, 1993; $80,234 on July 16, 1993; $48,665,
on July 19, 1993; $29,653, on August 16, 1993; and $1,014, on August 20, 1993,
from the BankIllinois Company 401(k) Plan, a subsidiary of the Company. This
amount represents the balances of 120 participants as of December 31, 1992.
F-11
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 8. Investments 1994
----------------
PRINCIPAL
AMOUNT FAIR
OR SHARES COST VALUE
------------------ ----------------- -----------------
FIXED INCOME FUND
Guaranteed Investment Contracts:
Allstate Life $ 11,013,121 $ 11,013,121 $ 11,013,121
Canada Life 3,389,615 3,389,615 3,389,615
Capital Holdings 3,763,025 3,763,025 3,763,025
General American Life 5,091,078 5,091,078 5,091,078
Hartford Life 8,850,267 8,850,267 8,850,267
Lincoln National Life 243,928 243,928 243,928
Massachusetts Mutual Life 4,418,092 4,418,092 4,418,092
New York Life 3,351,852 3,351,852 3,351,852
Pacific Mutual 3,907,505 3,907,505 3,907,505
Principal Mutual Life 2,053,256 2,053,256 2,053,256
Protective Life 12,901,546 12,901,546 12,901,546
Provident National Assurance 8,840,588 8,840,588 8,840,588
Prudential 14,469,164 14,469,164 14,469,164
Transamerica Life 5,638,814 5,638,814 5,638,814
Actively Managed Bond Fund
Payden & Rygel 7,052,398 7,102,765 6,977,658
Payden & Rygel Short-Term Fund sh. 1,313,944 1,313,944 1,313,944
Bank Hapoalim Certificate of Deposit 95,000 95,000 95,000
BNY Short-Term Money Market Fund sh. 50,283,617 50,283,617 50,283,617
BALANCED FUND
Brinson Trust Company, Inc.
U.S. Balanced Fund sh. 481,311 60,207,237 61,315,171
U.S. Cash Management Fund 155 155 155
BNY Short-Term Money Market Fund 482,442 482,442 482,442
ACTIVE EQUITY FUND
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 421,556 67,445,234 75,400,349
U.S. Cash Management Fund 183 183 183
BNY Short-Term Money Market Fund 489,341 489,341 489,341
F-12
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 8. Investments 1994
----------------
PRINCIPAL
AMOUNT FAIR
OR SHARES COST VALUE
------------------ ----------------- -----------------
STOCK INDEX FUND
Mellon Capital Mgmt. Stock Index Fund sh. 108,171 $ 14,432,565 $ 14,617,738
Mellon Temporary Investment Fund 45 45 45
BNY Short-Term Money Market Fund 216,576 216,576 216,576
COMPANY STOCK FUND
Computer Sciences Common Stock sh. 2,245,284 46,674,522 114,509,484
BNY Short-Term Money Market Fund 747,385 747,385 747,385
EMPLOYEE LOAN FUND
Participant Loans 9,635,030 9,635,030
--------------- -----------------
$ 347,057,892 $ 424,015,969
=============== =================
TOTAL LONG-TERM INVESTMENTS $ 293,429,204 $ 370,387,281
TOTAL SHORT-TERM INVESTMENTS 53,628,688 53,628,688
--------------- -----------------
$ 347,057,892 $ 424,015,969
=============== =================
F-13
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 8. Investments 1993
----------------
PRINCIPAL
AMOUNT FAIR
OR SHARES COST VALUE
---------------- --------------- ---------------
FIXED INCOME FUND
Guaranteed Investment Contracts:
Allstate Life $ 14,304,884 $ 14,304,884 $ 14,304,884
Bank Hapoalim Certificate of Deposit 95,000 95,000 95,000
Canada Life 2,702,954 2,702,954 2,702,954
Capital Holdings 661,508 661,508 661,508
General American Life 4,687,054 4,687,054 4,687,054
Hartford Life 8,167,690 8,167,690 8,167,690
Pacific Mutual 3,657,000 3,657,000 3,657,000
Protective Life 15,332,439 15,332,439 15,332,439
Provident National Assurance 8,194,130 8,194,130 8,194,130
Prudential 12,806,013 12,806,013 12,806,013
Transamerica Life 5,187,025 5,187,025 5,187,025
B of A Short-Term Money Market Fund sh. 1,573,178 1,573,178 1,573,178
BALANCED FUND
Brinson Trust Company, Inc.
U.S. Balanced Fund sh. 396,637 46,866,490 50,609,035
U.S. Cash Management Fund 1,522 1,522 1,522
B of A Short-Term Money Market Fund 551,015 551,015 551,015
ACTIVE EQUITY FUND
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 322,043 47,867,846 56,383,733
U.S. Cash Management Fund 3,700 3,700 3,700
B of A Short-Term Money Market Fund 553,591 553,591 553,591
STOCK INDEX FUND
Mellon Capital Mgmt. Stock Index Fund sh. 82,951 10,334,274 11,139,406
Mellon Temporary Investment Fund 13 13 13
B of A Short-Term Money Market Fund 414,674 414,674 414,674
F-14
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 8. Investments 1993
----------------
PRINCIPAL
AMOUNT FAIR
OR SHARES COST VALUE
-------------- ---------------- ---------------
COMPANY STOCK FUND
Computer Sciences Common Stock sh. 1,949,031 $ 33,658,229 $ 64,642,862
B of A Short-Term Money Market Fund 228,047 228,047 228,047
EMPLOYEE LOAN FUND
Participant Loans 7,852,356 7,852,356 7,852,356
B of A Short-Term Money Market Fund 107,561 107,561 107,561
---------------- ----------------
$ 225,808,193 $ 269,856,390
================ ================
TOTAL LONG-TERM INVESTMENTS $ 222,374,892 $ 266,423,089
TOTAL SHORT-TERM INVESTMENTS 3,433,301 3,433,301
---------------- ----------------
$ 225,808,193 $ 269,856,390
================ ================
F-15
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 9. Statements of Net Assets Available for Benefits by Fund
-------------------------------------------------------
December 31, 1994
------------------------------------------------------------------------------
Fixed Active Stock
Income Balanced Equity Index
------------------ ------------------ ------------------ -----------------
Assets
Long-term Investments $ 94,909,509 $ 61,315,171 $ 75,400,349 $ 14,617,738
Short-term Investments 51,692,561 482,597 489,524 216,621
Other Assets 4,870,518 468,782 603,167 171,912
Interfund Transfers (376,880) 7,330 135,777 (15,104)
------------------ ------------------ ------------------ -----------------
Total Assets 151,095,708 62,273,880 76,628,817 14,991,167
Liabilities
Amounts Payable 508,078 556,890 565,766 60,789
Forfeitures Payable
------------------ ------------------ ------------------ -----------------
Total Liabilities 508,078 556,890 565,766 60,789
------------------ ------------------ ------------------ -----------------
Net Assets Available for Benefits $ 150,587,630 $ 61,716,990 $ 76,063,051 $ 14,930,378
================== ================== ================== =================
---------------------------------------
Company Employee
Stock Loans
----------------- ------------------
Assets
Long-term Investments $ 114,509,484 $ 9,635,030
Short-term Investments 747,383
Other Assets 836,959 2,608,494
Interfund Transfers 248,876
----------------- ------------------
Total Assets 116,342,702 12,243,524
Liabilities
Amounts Payable 662,351 (511,298)
Forfeitures Payable 113,083
----------------- ------------------
Total Liabilities 775,434 (511,298)
----------------- ------------------
Net Assets Available for Benefits $ 115,567,268 $ 12,754,822
================= ==================
December 31, 1993
------------------------------------------------------------------------------
Fixed Active Stock
Income Balanced Equity Index
Assets ------------------ ------------------ ------------------ -----------------
Long-term Investments $ 75,795,697 $ 50,609,035 $ 56,383,733 $ 11,139,406
Short-term Investments 1,573,178 552,538 557,291 414,687
Other Assets 513,744 425,791 877,612 141,089
Interfund Transfers (56,107) (30,488) (13,725) (24,551)
------------------ ------------------ ------------------ -----------------
Total Assets 77,826,512 51,556,876 57,804,911 11,670,631
Liabilities
Amounts Payable 903,706 84,190 91,903 538,020
Forfeitures Payable
------------------ ------------------ ------------------ -----------------
Total Liabilities 903,706 84,190 91,903 538,020
------------------ ------------------ ------------------ -----------------
Net Assets Available for Benefits $ 76,922,806 $ 51,472,686 $ 57,713,008 $ 11,132,611
================== ================== ================== =================
--------------------------------------
Company Employee
Stock Loans
Assets ------------------- -----------------
Long-term Investments $ 64,642,862 $ 7,852,356
Short-term Investments 228,047 107,560
Other Assets 695,528 327
Interfund Transfers 124,871
---------------- ---------------
Total Assets 65,691,308 7,960,243
Liabilities
Amounts Payable 181,758 (12,646)
Forfeitures Payable 5,087
------------------ -----------------
Total Liabilities 186,845 (12,646)
------------------ -----------------
Net Assets Available for Benefits $ 65,504,463 $ 7,972,889
================== ===================
F-16
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1994
Note 9. Statements of Changes in Net Assets Available for Benefits by Fund
------------------------------------------------------------------
Year Ended December 31, 1994
-------------------------------------------------------
FIXED ACTIVE
INCOME BALANCED EQUITY
------------------ ---------------- ----------------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income
Net (Depreciation) Appreciation in Fair Value of Investments $ (165,587) $ (2,626,475) $ (560,772)
Interest Income 6,350,508 27,909 36,005
Dividend Income 2,509,596 1,611,421
Investment Management Fees (10,063) (191,547) (219,035)
------------------ ---------------- ----------------
6,174,858 (280,517) 867,619
------------------ ---------------- ----------------
CONTRIBUTIONS
Employee 13,303,308 11,712,291 13,780,843
Employer 43,877 11,192 15,721
Employee Rollovers 3,104,419 1,297,286 1,452,418
Forfeitures & Other
Transfers From Other Plans 41,351,343 6,310,988 15,912,705
Interfund Transfers 17,149,894 (5,090,225) (9,834,941)
------------------ ---------------- ----------------
74,952,841 14,241,532 21,326,746
------------------ ---------------- ----------------
TOTAL ADDITIONS 81,127,699 13,961,015 22,194,365
------------------ ---------------- ----------------
DEDUCTIONS TO NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants 7,462,876 3,716,711 3,844,322
------------------ ---------------- ----------------
TOTAL DEDUCTIONS 7,462,876 3,716,711 3,844,322
------------------ ---------------- ----------------
NET INCREASE 73,664,823 10,244,304 18,350,043
------------------ ---------------- ----------------
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 76,922,806 51,472,686 57,713,008
------------------ ---------------- ----------------
End of Year $ 150,587,630 $ 61,716,990 $ 76,063,051
================== ================ ================
----------------------------------------------------------
STOCK COMPANY EMPLOYEE
INDEX STOCK LOANS
------------------ ----------------- -------------------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income
Net (Depreciation) Appreciation in Fair Value of Investments $ (592,326) $ 37,810,267 $
Interest Income 10,418 25,108
Dividend Income 671,391
Investment Management Fees (19,356)
----------------- ----------------- -------------------
70,127 37,835,375
----------------- ----------------- -------------------
CONTRIBUTIONS
Employee 4,020,886 6,574,914 (3,034,579)
Employer 7,291 8,150,058
Employee Rollovers 544,440 883,925
Forfeitures & Other (550,525)
Transfers From Other Plans 3,203,633 3,847,923 3,230,191
Interfund Transfers (2,904,367) 677,651 1,989
------------------ ----------------- -------------------
4,871,883 19,583,946 197,600
------------------ ----------------- -------------------
4,942,010 57,419,321 197,600
------------------ ----------------- -------------------
TOTAL ADDITIONS
DEDUCTIONS TO NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants 1,144,243 7,356,516 (4,584,333)
------------------ ----------------- -------------------
TOTAL DEDUCTIONS 1,144,243 7,356,516 (4,584,333)
------------------ ----------------- -------------------
NET INCREASE 3,797,767 50,062,805 4,781,934
------------------ ----------------- -------------------
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 11,132,611 65,504,463 7,972,889
------------------ ----------------- -------------------
End of Year $ 14,930,378 $ 115,567,268 $ 12,754,823
================== ================= ===================
F-17
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Note 9. Statements of Changes in Net Assets Available for Benefits by Fund
------------------------------------------------------------------
Year Ended December 31, 1993
-----------------------------------------------------------------------
FIXED ACTIVE
INCOME BALANCED EQUITY
----------------- ----------------- -----------------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income
Net Appreciation in Fair Value of Investments $ 2,923,404 $ 5,519,003
Interest Income $ 5,557,956 17,910 17,878
Dividend Income 1,887,770 1,080,644
Investment Management Fees (9,000) (116,109) (129,683)
----------------- ----------------- -----------------
5,548,956 4,712,975 6,487,842
----------------- ----------------- -----------------
Contributions
Employee 13,411,459 9,933,883 10,232,224
Employer 41,331 11,091 10,443
Employee Rollovers 1,758,365 1,429,153 1,100,484
Forfeitures & Other
Transfers From Other Plans 2,990,780
Interfund Transfers (3,332,816) 1,729,417 3,773,999
----------------- ----------------- -----------------
14,869,119 13,103,544 15,117,150
----------------- ----------------- -----------------
TOTAL ADDITIONS 20,418,075 17,816,519 21,604,992
----------------- ----------------- -----------------
DEDUCTIONS TO NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants 6,813,649 3,486,363 4,021,657
----------------- ----------------- -----------------
TOTAL DEDUCTIONS 6,813,649 3,486,363 4,021,657
----------------- ----------------- -----------------
NET INCREASE 13,604,426 14,330,156 17,583,335
----------------- ----------------- -----------------
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 63,318,380 37,142,530 40,129,673
----------------- ----------------- -----------------
End of Year $ 76,922,806 $ 51,472,686 $ 57,713,008
================= ================= =================
-----------------------------------------------------------------------
STOCK COMPANY EMPLOYEE
INDEX STOCK LOANS
----------------- ----------------- -----------------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income
Net Appreciation in Fair Value of Investments $ 452,622 $ 13,749,455 $
Interest Income 7,536 19,308
Dividend Income 525,304
(21,718)
Investment Management Fees ----------------- ----------------- -----------------
963,744 13,768,763
----------------- ----------------- -----------------
Contributions
Employee 3,620,142 3,437,624 (1,944,774)
Employer 7,436 7,143,418
Employee Rollovers 610,905 172,338
Forfeitures & Other (545,968) (55,648)
Transfers From Other Plans 415,560
Interfund Transfers (1,109,345) (1,061,255)
----------------- ----------------- -----------------
3,129,138 9,146,157 (1,584,862)
----------------- ----------------- -----------------
TOTAL ADDITIONS 4,092,882 22,914,920 (1,584,862)
----------------- ----------------- -----------------
DEDUCTIONS TO NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants 878,372 5,621,618 (4,476,629)
----------------- ----------------- -----------------
TOTAL DEDUCTIONS 878,372 5,621,618 (4,476,629)
----------------- ----------------- -----------------
NET INCREASE 3,214,510 17,293,302 2,891,767
----------------- ----------------- -----------------
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 7,918,101 48,211,161 5,081,122
----------------- ----------------- -----------------
End of Year $ 11,132,611 $ 65,504,463 $ 7,972,889
================= ================= =================
F-18
[LETTERHEAD OF DELOITTE & TOUCHE LLP]
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-26977 of Computer Sciences Corporation on Form S-8 of our report dated
June 2, 1995, appearing in this Annual Report on Form 11-K of Computer Sciences
Corporation Matched Asset Plan for the year ended December 31, 1994.
/s/ DELOITTE & TOUCHE LLP
Los Angeles, California
June 27, 1995
E-1