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, 1997
[_] 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
- ----------- ----
(a) FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits
As of December 31, 1997 and 1996.................................................... 3
Statements of Changes in Net Assets Available for Benefits
As of December 31, 1997 and 1996.................................................... 4
Notes to the Financial Statements................................................... 5
(b) SUPPLEMENTAL SCHEDULES:
Schedule of Assets Held for Investment Purposes..................................... S-1
Schedule of Reportable Transactions................................................. S-2
2
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS
DECEMBER 31
--------------------------
1997 1996
-------- --------
ASSETS
Investments (Note 2, 5, 8 and 9):
Short-term Investments $ 4,824 $ 334
Long-term Investments - at fair value:
Interest in registered investment
companies
Brinson U.S. Bond Fund 46,049 34,871
Brinson U.S. Stock Fund 21,912 18,904
Brinson U.S. Equity Fund 262,330 204,712
Mellon Stock Index Fund 62,609 42,979
CSC Company stock 370,740 328,664
Employee Loans (Note 6) 28,881 24,764
Plan Interest in Master Trust 144,470 73,214
-------- --------
Total Investments 941,815 728,442
-------- --------
Receivables:
Employee Contributions 876 2,290
Employer Contributions 1,814 1,450
Other Receivables 7 13
-------- --------
Total Receivables 2,697 3,753
-------- --------
TOTAL ASSETS 944,512 732,195
-------- --------
LIABILITIES
Accounts Payable 2,974 8,361
-------- --------
TOTAL LIABILITIES 2,974 8,361
-------- --------
NET ASSETS AVAILABLE FOR BENEFITS $941,538 $723,834
======== ========
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,
1997 1996
-------------- -------------
ADDITIONS
Investment Income:
Net Appreciation in Fair Value of Investments
(Note 9) $ 64,395 $ 84,006
Interest 400 453
Dividends 10,574 7,404
Plan Interest in Master Trust Investment Income 5,424 2,715
-------- --------
80,793 94,578
Less Investment Management Fees (770) (800)
-------- --------
80,023 93,778
Contributions:
Employee 91,718 69,713
Employer 45,963 37,593
-------- --------
137,681 107,306
-------- --------
TOTAL ADDITIONS 217,704 201,084
-------- --------
NET INCREASE 217,704 201,084
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 723,834 522,750
-------- --------
End of Year $941,538 $723,834
======== ========
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, 1997
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 54 participating employees at December 31, 1997.
5
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
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 employees' base earnings deferred and contributed to the Trust fund cannot
exceed $9,500 and $9,500 for calendar years 1997 and 1996, 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 $9,500 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. No amounts were distributed during 1997 and
1996.
6
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
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. There were no such withdrawals made in 1997 and
1996.
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, 1997
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 $9,500 and $9,500 for both the
1997 and 1996, 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, 1997
Note 4 Reconciliation of Financial Statements to Form 5500
---------------------------------------------------
December 31,
----------------------------------
1997 1996
--------- ---------
Net assets available for benefits per the financial statements $941,538 $723,834
Amounts allocated to withdrawing participants (4,237) (0)
-------- --------
Net assets available for benefits per Form 5500 $937,301 $723,834
======== ========
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
Year ended
December 31, 1997
-----------------
Benefits paid to participants per the financial statements $ 0
Add: Amounts allocated to withdrawing participants at
December 31, 1997 4,237
Less: Amounts allocated to withdrawing participants at
December 31, 1996 (0)
------
Benefits paid to participants per the Form 5500 $4,237
======
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, 1997 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.
The Fixed Income Fund
- ---------------------
Approximately 13% of the Fixed Income Fund is invested in contracts with
insurance companies or other financial institutions. These institutions agree to
repay principal with interest at a fixed rate of return for the life of each
contract. This is a commitment by the insurance company or financial institution
to make agreed upon payments and that agreement is not secured, insured or
guaranteed by the Company or any other third party.
9
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
Approximately 87% of the Fixed Income Fund 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, 1997 and 1996, the Plan's interest in the net assets of the Master
Trust was approximately .09% and .07%, 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,
------------------------------------------
1997 1996
------------ ------------
Investments at fair value:
Corporate bonds $105,242,979 $ 20,904,676
U.S. government securities 46,459,080 56,633,626
Other bonds 6,446,213 2,112,040
Short-term investments 1,371,261 21,131,915
Accrued income 1,198,486 1,061,097
------------ ------------
$160,718,019 $101,843,354
============ ============
Investment income for the Master Trust is as follows:
December 31,
-------------------------------------
1997 1996
---------- -----------
Investment income:
Net appreciation (depreciation) in fair value of
investments $ 450,257 $(1,007,670)
Interest:
Corporate bonds 4,037,722 1,180,044
U.S. government securities 3,243,205 2,485,788
Other bonds 366,303 139,500
Short-term investments 485,226 627,305
---------- -----------
8,582,713 3,424,967
Less investment management fees (208,306) (61,373)
---------- -----------
$8,374,407 $ 3,363,594
========== ===========
10
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
The Balanced Fund
- -----------------
The Balanced Fund is managed by Brinson Partners, Inc. The Balanced Fund is
invested in an actively managed combination of a U.S. equity portfolio, a bond
portfolio 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 investment will depend upon the
performance of Computer Sciences Corporation stock. The Trustee may purchase
Computer Sciences Corporation stock on national securities exchanges or
elsewhere.
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
11
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
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.
Number of Participants
- ----------------------
The approximate number of participants having account balances in each of the
six separate funds at December 31, 1997 was as follows:
Investment Fund Number of Participants
--------------- ----------------------
The Fixed Income Fund............................... 34
The Balanced Fund................................... 23
The Active Equity Fund.............................. 32
The Stock Index Fund................................ 23
The Company Stock Fund.............................. 54
The Loan Fund....................................... 14
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 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, 1997, $28,881 of loans were
outstanding.
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, 1997 and 1996, net assets available for benefits included
benefits of $4,237 and $0 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, 1997
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
Fund 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 sh. 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
======== ========
13
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
Note 8 Investments 1996
----------------
SHARES/UNITS COST FAIR VALUE
----------------- -------- ----------
FIXED INCOME FUND
Plan Interest in Master Trust sh. 72,404 $ 74,383 $ 73,214
BALANCED FUND
Brinson Trust Company Inc.
U.S. Bond Fund sh. 317 34,597 34,871
U.S. Stock Fund sh. 69 14,745 18,904
ACTIVE EQUITY FUND
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 694 165,873 204,712
STOCK INDEX FUND
Mellon EB Stock Index Fund sh. 84 35,904 42,252
Mellon EB Daily Opening Stock Index
Fund sh. 4 729 727
BNY Short-Term Money Market Fund sh. 87 287 287
COMPANY STOCK FUND
Computer Sciences Common Stock sh. 4,002 282,768 328,664
BNY Short-Term Money Market Fund sh. 47 47 47
CSC EMPLOYEE LOAN FUND
Participant Loans sh. 24,764 24,764 24,764
-------- --------
$634,097 $728,442
======== ========
TOTAL LONG-TERM INVESTMENTS $633,763 $728,108
TOTAL SHORT-TERM INVESTMENTS 334 334
-------- --------
$634,097 $728,442
======== ========
14
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
Note 9 Statements of Net Assets Available for Benefits by Fund
-------------------------------------------------------
DECEMBER 31, 1997
--------------------------------------------------------------------------------------
FIXED BALANCED ACTIVE INDEX COMPANY LOAN
INCOME FUND EQUITY EQUITY 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
Accrued Income 1 3 0 0 3 7
Interfund Transfers 42 (321) (704) 117 866 0
-------- ------- -------- ------- -------- ------- --------
TOTAL ASSETS 145,592 72,517 262,340 63,512 371,670 28,881 944,512
LIABILITIES
Accounts Payable 43 42 160 9 0 2,720 2,974
-------- ------- -------- ------- -------- ------- --------
TOTAL LIABILITIES 43 42 160 9 0 2,720 2,974
-------- ------- -------- ------- -------- ------- --------
NET ASSETS AVAILABLE FOR BENEFITS $145,549 $72,475 $262,180 $63,503 $371,670 $26,161 $941,538
======== ======= ======== ======= ======== ======= ========
15
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
Note 9 Statements of Net Assets Available for Benefits by Fund
-------------------------------------------------------
DECEMBER 31, 1996
---------------------------------------------------------------------------------
FIXED BALANCED ACTIVE INDEX COMPANY LOAN
INCOME FUND EQUITY EQUITY STOCK FUND TOTAL
------- -------- -------- ------- -------- ------- --------
ASSETS
Short-term Investments $ 287 $ 47 $ 334
Long-term Investments:
Interest in registered investment
companies $53,775 $204,712 42,979 301,466
CSC Company stock 328,664 328,664
Employee Loans $24,764 24,764
Plan Interest in Master Trust $73,214 73,214
Employee Contribution Receivable 585 333 459 270 643 2,290
Employer Contribution Receivable 1,450 1,450
Accrued Income 4 4 1 4 13
Interfund Transfers 54 923 6,795 (2,725) (5,047)
------- ------- -------- ------- -------- ------- --------
TOTAL ASSETS 73,853 55,035 211,970 40,812 325,761 24,764 732,195
LIABILITIES
Accounts Payable 44 31 121 4 8,161 8,361
------- ------- -------- ------- -------- ------- --------
TOTAL LIABILITIES 44 31 121 4 8,161 8,361
------- ------- -------- ------- -------- ------- --------
NET ASSETS AVAILABLE FOR BENEFITS $73,809 $55,004 $211,849 $40,808 $325,761 $16,603 $723,834
======= ======= ======== ======= ======== ======= ========
16
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
Note 9 Statements of Changes in Net Assets Available for Benefits by Fund
------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1997
-----------------------------------------------------------------------------
FIXED BALANCED ACTIVE INDEX COMPANY LOAN
INCOME FUND EQUITY EQUITY 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 2,593 1,479 3,273 1,798 10,557 (19,700) 0
-------- ------- -------- ------- -------- -------- --------
TOTAL DEDUCTIONS 2,593 1,479 3,273 1,798 10,557 (19,700) 0
-------- ------- -------- ------- -------- -------- --------
NET INCREASE 71,738 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 40,808 325,762 16,603 723,834
-------- ------- -------- ------- -------- -------- --------
End of Year $145,547 $72,475 $262,180 $63,503 $371,672 $ 26,161 $941,538
======== ======= ======== ======= ======== ======== ========
17
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1997
Note 9 Statements of Changes in Net Assets Available for Benefits by Fund
------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1996
-----------------------------------------------------------------------------
FIXED BALANCED ACTIVE INDEX COMPANY LOAN
INCOME FUND EQUITY EQUITY STOCK FUND TOTAL
-------- -------- -------- ------- -------- -------- --------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income:
Net Appreciation in Fair Value of
Investments $ 3,535 $ 32,210 $ 5,606 $ 42,655 $ 84,006
Interest $ 62 118 36 40 197 453
Dividends 1,918 3,707 1,779 7,404
Plan Interest in Master Trust Investment
Income 2,715 2,715
Investment Management Fees (135) (126) (517) (22) (800)
------- ------- -------- ------- -------- -------- --------
2,642 5,445 35,436 7,403 42,852 93,778
------- ------- -------- ------- -------- -------- --------
Contributions:
Employee 14,703 7,682 8,675 6,692 44,071 (12,110) 69,713
Employer 37,593 37,593
Interfund Transfers 1,466 1,833 7,850 (2,013) (9,136) 0
------- ------- -------- ------- -------- -------- --------
16,169 9,515 16,525 4,679 72,528 (12,110) 107,306
------- ------- -------- ------- -------- -------- --------
TOTAL ADDITIONS 18,811 14,960 51,961 12,082 115,380 (12,110) 201,084
------- ------- -------- ------- -------- -------- --------
DEDUCTIONS TO NET ASSETS ATTRIBUTABLE TO:
Distributions to Participants 596 600 1,563 601 6,940 (10,300) 0
------- ------- -------- ------- -------- -------- --------
TOTAL DEDUCTIONS 596 600 1,563 601 6,940 (10,300) 0
------- ------- -------- ------- -------- -------- --------
NET INCREASE 18,215 14,360 50,398 11,481 108,440 (1,810) 201,084
------- ------- -------- ------- -------- -------- --------
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 55,594 40,644 161,450 29,327 217,322 18,413 522,750
------- ------- -------- ------- -------- -------- --------
End of Year $73,809 $55,004 $211,848 $40,808 $325,762 $ 16,603 $723,834
======= ======= ======== ======= ======== ======== ========
18
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, 1998 By: /S/ LEON J. LEVEL
------------------------------
Leon J. Level
Chairman,
Computer Sciences Corporation
Retirement Plans Committee
19
1997
FORM 5500 ITEM 27(a)
CSC OUTSOURCING INC.
EIN 88-0276684
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
-----------------------------------------------
(e) CURRENT
(a) (b) ISSUER (c) DESCRIPTION OF INVESTMENT (d) COST VALUE
- --- --------------------------- ----------------------------------------- -------- -----------
Brinson Trust Company, Inc. Mutual Fund - U.S. Bond Fund 44,369 46,049
Brinson Trust Company, Inc. Mutual Fund - U.S. Stock Fund 14,634 21,912
Brinson Trust Company, Inc. Mutual Fund - U.S. Equity Portfolio 191,200 262,330
Mellon Bank N.A. Mutual Fund - Index Performance Fund 43,383 60,944
Mellon Bank N.A. Mellon EB Daily Opening Stock Index
Fund 1,627 1,665
* Computer Sciences Corporation Common Stock 315,269 370,740
* Computer Sciences Corporation Employee Loan Fund 28,881 28,881
Mellon Bank N.A. Short-term Mellon Capital Management 393 393
Brinson Trust Company, Inc. Mutual Fund - U.S. Cash Management Fund 3,564 3,564
* Bank of New York BNY Short-Term Money Market Fund 867 867
-------- --------
TOTAL ASSETS HELD FOR INVESTMENT PURPOSES $644,187 $797,345
======== ========
* represents party in interest
S-1
1997
FORM 5500 ITEM 27(d)
CSC OUTSOURCING INC.
CUTW HOURLY SAVINGS PLAN
EIN 88-0276684
SCHEDULE OF REPORTABLE TRANSACTIONS
-----------------------------------
SINGLE TRANSACTIONS IN EXCESS OF 5%
(h) CURRENT
VALUE
OF ASSET ON
(c) PURCHASE (d) SELLING (g) COST OF TRANSACTION (i) NET GAIN
(a) IDENTITY OF PARTY INVOLVED (b) DESCRIPTION OF ASSET PRICE PRICE ASSET DATE OR (LOSS)
------------------------------ ------------------------ ------------ ----------- ----------- ------------ ------------
CSC Common Stock Company Stock
-Sale $46,528 $47,331 $46,528 $(803)
S-2
1997
FORM 5500 ITEM 27(d)
CSC OUTSOURCING INC.
CUTW HOURLY SAVINGS PLAN
EIN 88-0276684
SCHEDULE OF REPORTABLE TRANSACTIONS
-----------------------------------
SERIES TRANSACTIONS IN THE AGGREGATE IN EXCESS OF 5%
(h) CURRENT
VALUE
OF ASSET ON
(c) PURCHASE (d) SELLING (g) COST OF TRANSACTION (i) NET GAIN
(a) IDENTITY OF PARTY INVOLVED (b) DESCRIPTION OF ASSET PRICE PRICE ASSET DATE OR (LOSS)
------------------------------ ------------------------ ------------ ----------- ----------- ------------ ------------
CSC Common Stock Company Stock
- Purchase $ 75,945 $ 75,945 $ 75,945
- Sale $ 48,063 48,866 48,063 $(803)
Bank of New York Short-Term Money Market Fund
- Purchase 157,209 157,209 157,209
- Sale 156,388 156,388 156,388 -
S-3