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 THESECURITIES EXCHANGE ACT
OF 1934.
For the fiscal year ended: December 31, 1996
/ / 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:
Statement of Net Assets Available for Benefits
As of December 31, 1995 and 1996.................................. 3
Statement of Changes in Net Assets Available for Benefits
For the Five Months Ended December 31, 1995 and the Year Ended
December 31, 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
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS
DECEMBER 31
----------------------
1996 1995
----------- ----------
ASSETS
Investments (Note 8):
Short-term Investments $ 334 $ 5,677
Long-term Investments:
Interest in registered investment
companies - at fair value (Note 2):
Brinson U.S. Bond Fund 34,871 22,021
Brinson U.S. Stock Fund 18,904 16,162
Brinson U.S. Equity Fund 204,712 161,068
Mellon Stock Index Fund 42,979 28,633
CSC Company stock 328,664 214,684
Employee Loans 24,764 18,413
Plan Interest in Master Trust 73,214 55,204
----------- ----------
Total Investments 728,442 521,862
----------- ----------
Receivables:
Employee Contribution Receivable 2,290 2,307
Employer Contribution Receivable 1,450 1,184
Other Receivables 13 34
----------- ----------
Total Receivables 3,753 3,525
----------- ----------
TOTAL ASSETS 732,195 525,387
----------- ----------
LIABILITIES
Amounts Payable (Note 6) 8,361 2,637
----------- ----------
TOTAL LIABILITIES 8,361 2,637
----------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $723,834 $522,750
----------- ----------
----------- ----------
3
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
FOR THE YEAR FOR THE FIVE
ENDED MONTHS ENDED
DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- -----------------
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment Income:
Net Appreciation in Fair Value of Investments
(Note 9) $ 84,006 $ 12,688
Interest 453 849
Dividends 7,404 644
Plan Interest in Master Trust Investment Income 2,715 1,004
----------------- -----------------
94,578 15,185
Less Investment Management Fees (800)
----------------- -----------------
93,778 15,185
Contributions:
Employee 69,713 23,887
Employer 37,593 12,254
Transfers From Prior Plan (Note 7) 471,424
----------------- -----------------
107,306 507,565
----------------- -----------------
TOTAL ADDITIONS 201,084 522,750
----------------- -----------------
NET INCREASE 201,084 522,750
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 522,750
----------------- -----------------
End of Year $723,834 $522,750
----------------- -----------------
----------------- -----------------
4
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
Note 1 DESCRIPTION OF THE PLAN
The following brief description of the CSC Outsourcing Inc. CUTW Hourly
Savings Plan (the "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 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 officers (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
Trustee, The Bank of New York, 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").
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 eligibility requirements, are hourly paid employees 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 is eligible to rejoin the Plan on the next
enrollment date.
There were approximately 40 participating employees at December 31, 1996.
5
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
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 $9,240 for calendar years 1996 and 1995,
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.
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 1996.
6
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
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
withdrawals in 1996.
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 $9,500 and 9,240 for 1996
and 1995, respectively.
(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.
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.
7
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
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 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 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.
8
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
Note 3 INCOME TAX STATUS
The Company will apply for a determination letter within the applicable time
period, 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
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 unit.
THE FIXED INCOME FUND
The fund is invested in the Master Trust which was established for the
investment of assets of the Plan and several other Company sponsored benefit
plans. The Master Trust is an actively managed, short-term (1-3 years) U.S. Bond
Fund managed by Payden & Rygel. Each participating plan has an undivided
interest in the Master Trust. The assets of the Master Trust are held by the
Trustee. At December 31, 1996 and 1995, the Plan's interest in the net assets
of the Master Trust was approximately .07% and .08%, 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,
----------------------------
1996 1995
------------- -------------
Investments at fair value:
Corporate bonds $ 20,904,676 $ 15,709,394
U.S. government securities 56,633,626 44,628,463
Other bonds 2,112,040 2,085,848
Short-term investments 21,131,915 0
Accrued income 1,061,097 648,263
------------- -------------
$ 101,843,354 $ 63,071,968
------------- -------------
------------- -------------
9
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
Investment income for the Master Trust is as follows:
December 31,
----------------------------
1996 1995
------------- -------------
Investment income:
Net appreciation in fair value of investments $ (1,007,670) $ 2,230,357
Interest:
Corporate bonds 1,180,044 659,260
U.S. government securities 2,485,788 2,234,361
Other bonds 139,500 0
Short-term investments 627,305 241,759
------------- -------------
3,424,967 5,365,737
Less investment management fees (61,373) (17,548)
------------- -------------
$ 3,363,594 $ 5,348,189
------------- -------------
------------- -------------
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.
10
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
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.
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.
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 participants
election form is not filed within the time prescribed by the Committee,
following the month in which the participant files his election form with the
Company.
Company contributions - In accordance with the provisions of the Plan, the
Trustee must promptly invest matching Company contributions paid into the
Trust Fund in the same fund as the participant contributions.
NUMBER OF PARTICIPANTS
The approximate number of participants having account balances in each of the
five separate funds at December 31, 1996 was as follows:
Investment Fund Number of Participants
--------------- ----------------------
The Fixed Income Fund ............................. 22
The Balanced Fund ................................. 13
The Active Equity Fund ............................ 22
The Index Equity Fund ............................. 13
The CSC Stock Fund ................................ 40
11
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
The sum of the number of participants shown in the preceding page 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 the bargaining unit. As of December 31, 1996, $24,764 of loans were
outstanding.
Note 6 BENEFITS PAYABLE
The Plan complies with the AICPA Audit and Accounting Guide, Audits of Employee
Benefit Plans. The guide recommends 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, 1996, net assets available for benefits included
no benefits due to participants who have withdrawn from participation in the
Plan.
Note 7 MERGING OF PLANS
The Plan received $453,011 on November 15, 1995 and $18,413 on December 29, 1995
from Boston Safe Deposit & Trust Co. These amounts represent the balances of 23
participants as of November 14, 1995.
12
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
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
-------- ----------
-------- ----------
13
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING, INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
Note 8 INVESTMENTS 1995
Shares/Units Cost Fair Value
--------------- ----------- --------------
FIXED INCOME FUND
Plan Interest in Master Trust sh. 54,480 $ 55,118 $ 55,204
BNY Short-Term Money Market Fund sh. 4 4 4
BALANCED FUND
Brinson Trust Company Inc.
U.S. Bond Fund sh. 209 21,612 22,021
U.S. Stock Fund sh. 5 15,450 16,162
U.S. Cash Management Fund sh. 2,136 2,136 2,136
BNY Short-Term Money Market Fund sh. 158 158 158
ACTIVE EQUITY FUND
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 666 154,357 161,068
BNY Short-Term Money Market Fund sh. 193 193 193
STOCK INDEX FUND
Mellon EB Stock Index Fund sh. 154 27,815 28,633
Mellon Temporary Investment Fund sh. 328 328 328
BNY Short-Term Money Market Fund sh. 184 184 184
COMPANY STOCK FUND
Computer Sciences Common Stock sh. 3,056 210,665 214,684
BNY Short-Term Money Market Fund sh. ,674 2,674 2,674
CSC EMPLOYEE LOAN FUND
Participant Loans sh. 18,413 18,413 18,413
---------- ------------
$ 509,107 $ 521,862
---------- ------------
---------- ------------
TOTAL LONG-TERM INVESTMENTS $ 503,430 $ 516,185
TOTAL SHORT-TERM INVESTMENTS 5,677 5,677
---------- ------------
$ 509,107 $ 521,862
---------- ------------
---------- ------------
14
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
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
Amounts 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
--------- --------- ---------- -------- -------- -------- ---------
--------- --------- ---------- -------- -------- -------- ---------
15
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
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 4 2,293 193 512 2,675 5,677
Long-term Investments:
Interest in registered investment
companies 38,183 161,068 28,633 227,884
CSC Company stock 214,684 214,684
Employee Loans 18,413 18,413
Plan Interest in Master Trust 55,204 55,204
Employee Contribution Receivable 382 154 185 180 1,406 2,307
Employer Contribution Receivable 1,184 1,184
Accrued Income 4 14 4 2 10 34
--------- --------- ---------- -------- -------- -------- ---------
TOTAL ASSETS 55,594 40,644 161,450 29,327 219,959 18,413 525,387
LIABILITIES
Amounts Payable 2,637 2,637
--------- --------- ---------- -------- -------- -------- ---------
TOTAL LIABILITIES 2,637 2,637
--------- --------- ---------- -------- -------- -------- ---------
NET ASSETS AVAILABLE FOR BENEFITS $ 55,594 $ 40,644 $ 161,450 $ 29,327 $217,322 $18,413 $ 522,750
--------- --------- ---------- -------- -------- -------- ---------
--------- --------- ---------- -------- -------- -------- ---------
16
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
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 Income........................................ $ 62 118 36 40 197 453
Dividend Income........................................ 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)
------- ------- -------- ------- -------- ------- --------
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)
------- ------- -------- ------- -------- ------- --------
TOTAL DEDUCTIONS...................................... 596 600 1,563 601 6,940 (10,300)
------- ------- -------- ------- -------- ------- --------
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
------- ------- -------- ------- -------- ------- --------
------- ------- -------- ------- -------- ------- --------
17
COMPUTER SCIENCES CORPORATION
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996
Note 9 STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY FUND
FOR THE FIVE MONTHS ENDED DECEMBER 31, 1995
-------------------------------------------------------------------
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........... $ 1,121 $ 6,711 $ 818 $ 4,019 $ 12,688
Interest Income......................................... $ 436 35 23 16 358 849
Dividend Income......................................... 122 356 166 644
Plan Interest in Master Trust Investment Income......... 1,004 1,004
------- ------- -------- ------- -------- ------- --------
Investment Management Fees.............................. 1,440 1,278 7,090 1,000 4,377 15,185
------- ------- -------- ------- -------- ------- --------
Contributions
Employee................................................ 3,958 1,592 1,925 1,861 14,551 23,887
Employer................................................ 12,254 12,254
Transfers From Other Plans.............................. 50,196 37,774 152,436 26,466 186,139 18,413 471,424
------- ------- -------- ------- -------- ------- --------
54,154 39,366 154,361 28,327 212,944 18,413 507,565
------- ------- -------- ------- -------- ------- --------
TOTAL ADDITIONS....................................... 55,594 40,644 161,451 29,327 217,321 18,413 522,750
------- ------- -------- ------- -------- ------- --------
NET INCREASE.......................................... 55,594 40,644 161,451 29,327 217,321 18,413 522,750
------- ------- -------- ------- -------- ------- --------
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year........................................
------- ------- -------- ------- -------- ------- --------
End of Year.............................................. $55,594 $40,644 $161,451 $29,327 $217,321 $18,413 $522,750
------- ------- -------- ------- -------- ------- --------
18
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Act of 1934, the
Computer Sciences Corporation Retirement 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 23, 1997 By: /S/ LEON J. LEVEL
----------------------------------------
Leon J. Level
Chairman,
Computer Sciences Corporation
Retirement Plans Committee
19
1996
FORM 5500 ITEM 27(a)
COMPUTER SCIENCES CORPORATION
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 34,597 34,871
Brinson Trust Company, Inc. Mutual Fund - U.S. Stock Fund 14,745 18,904
Brinson Trust Company, Inc. Mutual Fund - U.S. Equity Portfolio 165,873 204,712
Mellon Bank N.A. Mutual Fund - Index Performance Fund 35,904 42,252
Mellon Bank N.A. Mellon EB Daily Opening Stock Index
Fund 729 727
* Computer Sciences Corporation Common Stock 210,665 328,664
Computer Sciences Corporation Employee Loan Fund 24,764 24,764
Mellon Bank N.A. Short-term Mellon Capital Management 287 287
* Bank of New York BNY Short-Term Money Market Fund 47 47
--------- ---------
TOTAL ASSETS HELD FOR INVESTMENT PURPOSES $ 487,611 $ 655,228
--------- ---------
--------- ---------
* represents party in interest
S-1
1996
FORM 5500 ITEM 27(d)
COMPUTER SCIENCES CORPORATION
CUTW HOURLY SAVINGS PLAN
EIN 88-0276684
SCHEDULE OF REPORTABLE TRANSACTIONS
SINGLE TRANSACTIONS IN EXCESS OF 5%
(a) IDENTITY OF PARTY INVOLVED (b) DESCRIPTION OF ASSET (c) PURCHASE (d) SELLING (g) COST OF TRANSACTION (i) NET GAIN
PRICE PRICE ASSET DATE OR (LOSS)
- ------------------------------ ------------------------ ------------ ----------- ----------- ----------- ------------
None to Report
S-2
1996
FORM 5500 ITEM 27(d)
COMPUTER SCIENCES CORPORATION
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
(a) IDENTITY OF PARTY INVOLVED (b) DESCRIPTION OF ASSET (c) PURCHASE (d) SELLING (g) COST OF TRANSACTION (i) NET GAIN
PRICE PRICE ASSET DATE OR (LOSS)
- ------------------------------ ------------------------ ------------ ----------- ----------- ----------- ------------
CSC Common Stock Company Stock
- - Purchase $ 79,902 $ 79,902 $ 9,902
- - Sale $ 8,578 7,930 8,578 $ 648
Mellon Capital Management Stock Index Fund
- - Purchase 13,112 13,112 13,112
- - Sale 13,154 13,154 13,154
Bank of New York Short-Term Money Market Fund
- - Purchase 132,524 132,524 132,524
- - Sale 135,690 135,690 135,690
S-3