EXHIBIT 99.2
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
CSC OUTSOURCING INC. HOURLY SAVINGS 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 166 employees were eligible to
participate in the Plan and approximately 136 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 May 1992, the Plan's assets have been invested in a fixed income fund, a
government bond fund, an active equity fund and in the common stock of the
Company.
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 benefits
of the Computer Sciences Corporation Outsourcing Inc. Hourly Savings 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 referred to above 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
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
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS
DECEMBER 31
---------------------------------
1994 1993
--------------- ---------------
ASSETS
Investments:
Long-term Investments (Note 8) $ 4,887,471 $ 5,086,171
Short-term Investments (Note 8) 47,691 119,794
--------------- ---------------
Total Investments 4,935,162 5,205,965
--------------- ---------------
Receivables:
Employee Contribution Receivable 9,355
Employer Contribution Receivable 19,798 22,162
Other Receivables 6,597 297
--------------- ---------------
Total Receivables 35,750 22,459
--------------- ---------------
TOTAL ASSETS 4,970,912 5,228,424
--------------- ---------------
LIABILITIES
Amounts Payable (Note 6) 867 37,282
Forfeitures Payable 7,290
--------------- ---------------
TOTAL LIABILITIES 867 44,572
--------------- ---------------
NET ASSETS AVAILABLE FOR BENEFITS $ 4,970,045 $ 5,183,852
=============== ===============
See notes to financial statements.
F-2
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS 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) $ 13,842 $ 156,244
Interest 204,954 193,449
Dividends 107,513 104,355
Investment Management Fees (17,043) (12,892)
--------------- ----------------
309,266 441,156
--------------- ----------------
Contributions:
Employee 303,453 316,779
Employer 136,174 147,486
Forfeitures & Other (Note 1) (2,769) (7,887)
Transfers To Other Plans (Note 7) (40,056)
--------------- ----------------
436,858 416,322
--------------- ----------------
TOTAL ADDITIONS 746,124 857,478
--------------- ----------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants (Note 1 & 6) 959,931 202,808
--------------- ----------------
TOTAL DEDUCTIONS 959,931 202,808
--------------- ----------------
NET INCREASE (DECREASE) (213,807) 654,670
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 5,183,852 4,529,182
--------------- ----------------
End of Year $ 4,970,045 $ 5,183,852
=============== ================
See notes to financial statements.
F-3
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS 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 CSC Outsourcing Inc. Hourly Savings Plan
(the "Plan") formerly the TMD Hourly Savings Plan, of Computer Sciences
Corporation (the "Company") is provided for general information purposes only.
Participants should refer to the Plan document for more complete information.
The Plan became effective May 2, 1992, as a result of the Company acquiring the
Data Systems Division of General Dynamics Corporation. The Plan is administered
by a committee consisting of four officers 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 Trustee, The Bank of New York, administers the Plan pursuant to a
Trust Agreement entered into with the Company. Certain administrative expenses
(including Trustee fees) incurred for services rendered to the Plan are paid by
the Company.
The Plan is a voluntary, contributory, defined contribution plan and is intended
to satisfy the requirements of Section 401(a) and 401(k) of the Internal Revenue
Code (the "Code").
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
- -----------------------------
Employees are eligible to participate on specified enrollment dates if they
satisfy the Plan's service requirements, are an hourly paid employee of CSC
Outsourcing Inc. and are a member of a collective bargaining unit for which
participation in this Plan has been provided by negotiated agreement. A rehired
eligible employee may receive service credit for his or her previous employment
and is eligible to rejoin the Plan on the next enrollment date.
There were approximately 136 participating employees at December 31, 1994.
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.
Depending on the investment election option the participant elects, the Company
will contribute, and forward to the Trust fund $0.50 for each $1.00 of the
employee matched contribution together with the participant's before-tax and
after-tax contribution.
F-4
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Participants in certain bargaining units who direct 100 percent of their
contributions to the Plan's stock fund will receive a monthly matching
contribution of $1.00 for each $1.00 of employee matched contributions.
Participants under certain bargaining units may contribute additional unmatched
contributions at various percentages of base earnings to a maximum specified by
the union agreement covering the employee but only if a participant contributes
the maximum matched percentage for which he or she is eligible. The employees'
base earnings deferred and contributed to the Trust fund cannot exceed $9,240
for calendar year 1994, 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 $9,240 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.
The Plan does not permit employees to rollover a qualified distribution from
another Plan.
Vesting of Participants' Interests/Forfeitures
- ----------------------------------------------
Participants are 100 percent vested at all times in their before-tax and after-
tax contribution accounts. Company matching contributions and investment
earnings thereon vest according to a five-year cliff vesting schedule as shown
in the following table:
Number of Full Years of Service Vested Interest in Matching Contribution
------------------------------- ----------------------------------------
1 ................................................ 0%
2 ................................................ 0%
3 ................................................ 0%
4 ................................................ 0%
5 or more ........................................ 100%
The vesting schedule is overridden under extraordinary circumstances as
specified in the Plan document, in which the participant (or beneficiary(ies))
immediately becomes fully vested in all employer contributions and earnings,
regardless of his or her number of years of service.
Any nonvested balances will be immediately forfeited from the participant's
account at termination.
F-5
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
Distributable Amounts, Withdrawals and Refunds
- ----------------------------------------------
The entire balance in all accounts is distributed to participants who retire,
die, become disabled, are laid-off for four consecutive weeks, are discharged
without fault, or who involuntarily enter military service. Participants who
terminate for other reasons receive their vested balances. Nonvested balances
are forfeited immediately. The amounts distributed during 1994 and 1993 totaled
$959,931 and $74,825, respectively.
While still an employee, a participant may make an in-service withdrawal of all
or a portion of his or her after-tax contributions, subject to frequency of
withdrawal penalties, as well as vested Company matching contributions, plus the
earnings on those amounts. Upon at least a 30 day written notice to the
Committee, a participant may make a hardship withdrawal of his or her before-tax
and after-tax contributions, as well as vested Company matching contributions if
the Committee finds, after considering the participant's request, that an
adequate financial hardship and resulting need for such amount has been
demonstrated by the participant. Both types of withdrawals are subject to
certain restrictions as described in the Plan document. These withdrawals
amounted to $ -0- in 1994, and $127,984 in 1993.
Federal Income Tax Consequences
- -------------------------------
The Plan is intended to qualify under Section 401(a) of the Code and, with
respect to its qualified cash or deferred arrangement, under Section 401(k) of
the Code. 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
CSC OUTSOURCING INC. HOURLY SAVINGS 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, of which four
represent 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.
F-7
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
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.
Note 4. Investment Funds
----------------
The investment funds of the Plan are as follows:
Participant contributions - Subject to rules the bargaining units have adopted,
each participant has the right to designate one or more of the following
investment funds established by the Committee for the investment of his or her
compensation deferral contributions and after-tax contributions in percentages
determined by the bargaining units.
The 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.
Government Bond Fund.
This fund is invested in bonds issued or guaranteed by the U.S. Government or
U.S. Government agencies. The fund is actively managed with a three to five
year intermediate objective. Because these bonds are actively traded, market
value gains and losses may occur in this fund. Assets of the fund are managed
by an institutional investment manager.
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.
F-8
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS 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.
Participants may change their investment elections as of any enrollment date if
at least a 30 day prior notice is given. However, participants under certain
circumstances may be eligible to change their investment elections within a 30
day window period. Participants may transfer their existing account balances in
25 percent increments. Transfer elections are effective on the first quarterly
enrollment date following receipt of a 30 day prior notice from the participant.
Company contributions - In accordance with the provisions of the Plan, the
Trustee must promptly invest matching Company contributions paid into the Trust
Fund in the same fund as the participant contributions.
Number of Participants
- ----------------------
The approximate number of participants having account balances in each of the
four separate funds at December 31, 1994 was as follows:
Investment Fund Number of Participants
--------------- ----------------------
The Fixed Income Fund................... 131
The Government Bond Fund................ 72
The Active Equity Fund.................. 79
The Company Stock Fund.................. 21
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.
Note 5. Participant Loans
-----------------
The Plan has a loan provision in place which is available to participants
covered by certain bargaining units. No loans were outstanding as of December
31, 1994.
F-9
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1994
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 $76,361 and $52,191, respectively, due to
participants who have withdrawn from participation in the Plan.
Note 7. Transfers to Other Plans
------------------------
On May 4, 1993, the Plan transferred back to General Dynamics Corporation ("GD")
$40,056. This amount represents the transfer to GD of the assets of certain
employees regarding the settlement of a grievance in which these employees
transferred to their former employer, GD, along with their respective plan
assets.
F-10
COMPUTER SCIENCES CORPORATION
CSC OUT SOURCING INC. HOURLY SAVINGS 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.
Hartford Life $ 1,547,509 $ 1,547,509 $ 1,547,509
Canada Life Insurance Company 57,455 57,455 57,455
Capital Holdings Corporation 259 259 259
Pacific Mutual Life Insurance 134,343 134,343 134,343
Provident National Assurance 708,666 708,666 708,666
Protective Life 43,209 43,209 43,209
Prudential Life Insurance Company 81,416 81,416 81,416
Actively Managed Bond Fund
Payden & Rygel 9,146 8,577 7,697
Payden & Rygel Short-Term Fund 1,449 1,449 1,449
BNY Short-Term Money Market Fund 42,054 42,054 42,054
GOVERNMENT BOND FUND
Mellon Intermediate Government Bond Fund
Government Bond Fund sh. 12,291 1,288,050 1,248,149
Cash Management Fund 71 71 71
BNY Short-Term Money Market Fund 1,178 1,178 1,178
ACTIVE EQUITY FUND
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 4,181 645,980 747,822
U.S. Cash Management Fund 386 386 386
BNY Short-Term Money Market Fund 1,571 1,571 1,571
COMPANY STOCK FUND
Computer Sciences Common Stock sh. 6,097 157,782 310,946
BNY Short-Term Money Market Fund 982 982 982
----------------- -----------------
$ 4,720,937 $ 4,935,162
================= =================
TOTAL LONG-TERM INVESTMENTS $ 4,673,246 $ 4,887,471
TOTAL SHORT-TERM INVESTMENTS 47,691 47,691
----------------- -----------------
$ 4,720,937 $ 4,935,162
================= =================
F-11
COMPUTER SCIENCES CORPORATION
CSC OUT SOURCING INC. HOURLY SAVINGS 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
Hartford Life $ 1,654,457 $ 1,654,457 $ 1,654,457
Canada Life Insurance Company 64,405 64,405 64,405
Capital Holdings Corporation 246 246 246
Pacific Mutual Life Insurance 140,664 140,664 140,664
Provident National Assurance 735,446 735,446 735,446
Protective Life 45,761 45,761 45,761
Prudential Life Insurance Company 86,136 86,136 86,136
B of A Short-Term Money Market Fund 70,378 70,378 70,378
GOVERNMENT BOND FUND
Harris Bank Collective Inventory Fund
Government Bond Fund sh. 4,773 1,305,108 1,306,002
Cash Management Fund 124 124 124
B of A Short-Term Money Market Fund 26,628 26,628 26,628
ACTIVE EQUITY FUND
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 4,703 690,717 823,408
U.S. Cash Management Fund 696 696 696
B of A Short-Term Money Market Fund 14,404 14,404 14,404
COMPANY STOCK FUND
Computer Sciences Common Stock sh. 6,924 161,548 229,646
B of A Short-Term Money Market Fund 7,564 7,564 7,564
----------------- -----------------
$ 5,004,282 $ 5,205,965
================= =================
TOTAL LONG-TERM INVESTMENTS $ 4,884,488 $ 5,086,171
TOTAL SHORT-TERM INVESTMENTS 119,794 119,794
----------------- -----------------
$ 5,004,282 $ 5,205,965
================= =================
F-12
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS 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 Government Active
Income Bond Equity
----------------- ----------------- -----------------
ASSETS
Long-term Investments $ 2,580,553 $ 1,248,149 $ 747,822
Short-term Investments 43,503 1,249 1,957
Other Assets 20,764 9,148 6,413
Interfund Transfers (583) 4 181
----------------- ----------------- -----------------
Total Assets 2,644,237 1,258,550 756,373
Liabilities
Amounts Payable 4 268 595
----------------- ----------------- -----------------
Forfeitures Payable
Total Liabilities 4 268 595
----------------- ----------------- -----------------
Net Assets Available for Benefits $ 2,644,233 $ 1,258,282 $ 755,778
================= ================= =================
December 31, 1994
-----------------
Company
Stock
ASSETS
Long-term Investments $ 310,947
Short-term Investments 982
Other Assets (575)
Interfund Transfers 398
-----------------
Total Assets 311,752
Liabilities
Amounts Payable
-----------------
Forfeitures Payable
Total Liabilities
-----------------
Net Assets Available for Benefits $ 311,752
=================
December 31, 1993
---------------------------------------------------------------------------
Liquid Fixed Government Active
Reserve Income Bond Equity
----------------- ----------------- ----------------- -----------------
ASSETS
Long-term Investments $ 2,727,114 $ 1,306,003 $ 823,408
Short-term Investments 20,921 49,457 26,752 15,100
Other Assets 42 13,588 2,959 3,681
Interfund Transfers (5,856) (719) (2,344) (129)
----------------- ----------------- ----------------- -----------------
Total Assets 15,107 2,789,440 1,333,370 842,060
Liabilities
Amounts Payable 15,107 1 22,000
Forfeitures Payable 3,985 3,305
----------------- ----------------- ----------------- -----------------
Total Liabilities 15,107 3,985 1 25,305
----------------- ----------------- ----------------- -----------------
Net Assets Available for Benefits $ $ 2,785,455 $ 1,333,369 $ 816,755
================= ================= ================= =================
December 31, 1993
-----------------
Company
Stock
-----------------
ASSETS
Long-term Investments $ 229,646
Short-term Investments 7,564
Other Assets 2,189
Interfund Transfers 9,048
-----------------
Total Assets 248,447
Liabilities
Amounts Payable 174
Forfeitures Payable
-----------------
Total Liabilities 174
-----------------
Net Assets Available for Benefits $ 248,273
=================
F-13
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS 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
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YEAR ENDED DECEMBER 31, 1994
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LIQUID FIXED GOVERNMENT ACTIVE COMPANY
RESERVE INCOME BOND EQUITY STOCK
------------- ------------- ------------- ------------- --------------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income
Net Appreciation in Fair Value of Investments $ (918) $ (102,164) $ 2,517 $ 114,407
Interest Income $ 145 201,897 2,139 506 267
Dividend Income 87,851 19,662
Investment Management Fees (3,858) (236) (9,000) (3,949)
------------- ------------- ------------- ------------- -------------
(3,713) 200,743 (21,174) 18,736 114,674
------------- ------------- ------------- ------------- -------------
Contributions
Employee (93) 183,041 45,022 57,341 18,142
Employer 77,597 17,010 25,326 16,241
Employee Rollovers
Forfeitures & Other (1,546) (1,223)
Transfers From Other Plans
Interfund Transfers 3,806 (7,239) (2,884) (1,518) 7,836
------------- ------------- ------------- ------------- -------------
3,713 251,853 59,148 79,926 42,219
------------- ------------- ------------- ------------- -------------
TOTAL ADDITIONS 452,596 37,974 98,662 156,893
------------- ------------- ------------- ------------- -------------
DEDUCTIONS TO NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants 593,817 113,060 159,639 93,414
------------- ------------- ------------- ------------- -------------
TOTAL DEDUCTIONS 593,817 113,060 159,639 93,414
------------- ------------- ------------- ------------- -------------
NET INCREASE (141,221) (75,086) (60,977) 63,479
------------- ------------- ------------- ------------- -------------
Net Assets Available for Benefits:
Beginning of Year 2,785,455 1,333,369 816,755 248,273
------------- ------------- ------------- ------------- -------------
End of Year $ $ 2,644,233 $ 1,258,282 $ 755,778 $ 311,752
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F-14
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. HOURLY SAVINGS 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
------------------------------------------------------------------------------------
LIQUID FIXED GOVERNMENT ACTIVE COMPANY
RESERVE INCOME BOND EQUITY STOCK
-------------- -------------- -------------- -------------- -------------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income
Net Appreciation (Depreciation) In
Fair Value of Investment $ 18,463 $ 88,525 $ 49,256
Interest Income $ 353 $ 192,045 631 157 263
Dividend Income 87,284 17,071
Investment Management Fees (7,616) (2,500) (2,776)
-------------- -------------- -------------- -------------- -------------
(7,263) 192,045 103,878 102,977 49,519
-------------- -------------- -------------- -------------- -------------
CONTRIBUTIONS
Employee 5,346 195,668 50,730 56,827 8,208
Employer 94,313 18,854 22,443 11,876
Employee Rollovers
Forfeitures & Other (4,551) (3,336)
Transfers From Other Plans (26,376) (8,225) (5,087) (368)
Interfund Transfers 1,876 20,034 (21,002) (7,289) 6,381
-------------- -------------- -------------- -------------- -------------
7,222 279,088 40,357 63,558 26,097
-------------- -------------- -------------- -------------- -------------
TOTAL ADDITIONS (41) 471,133 144,235 166,535 75,616
-------------- -------------- -------------- -------------- -------------
DEDUCTIONS TO NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants 106,769 39,989 51,234 4,816
-------------- -------------- -------------- -------------- -------------
TOTAL DEDUCTIONS 106,769 39,989 51,234 4,816
-------------- -------------- -------------- -------------- -------------
NET INCREASE (41) 364,364 104,246 115,301 70,800
-------------- -------------- -------------- -------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 41 2,421,091 1,229,123 701,454 177,473
-------------- -------------- -------------- -------------- -------------
End of Year $ $ 2,785,455 $ 1,333,369 $ 816,755 $ 248,273
============== ============== ============== ============== =============
F-15