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, 1999
[ ] 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
<PAGE>
TABLE OF CONTENTS
-----------------
Description Page
----------- ----
Statements of Net Assets Available for Benefits
As of December 31, 1999 and 1998....................................... 3
Statements of Changes in Net Assets Available for Benefits
As of December 31, 1999 and 1998....................................... 4
Notes to the Financial Statements....................................... 5
2
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Assets
Investments (Note 2, 5, 8 and 9):
Short-term $ 6,306 $ 8,094
Long-term - at fair value:
Brinson U.S. Bond Fund 53,849 57,871
Brinson U.S. Stock Fund 30,754 25,748
Mellon Enhanced Asset Fund 14,087 7,151
Brinson U.S. Equity Fund 272,764 284,552
Mellon Stock Index Fund 135,403 117,654
CSC Company stock 1,001,133 676,231
Employee Loans (Note 6) 29,555 27,660
Plan interest in Master Trust 177,509 151,592
---------- ----------
Total Investments 1,721,360 1,356,553
---------- ----------
Receivables:
Employee Contributions 8,622 1,715
Employer Contributions 800 750
Other Receivables 6,380 966
---------- ----------
Total Receivables 15,802 3,431
---------- ----------
Total Assets 1,737,162 1,359,984
---------- ----------
Liabilities
Accounts Payable 13,309 13,494
---------- ----------
Total Liabilities 13,309 13,494
---------- ----------
Net Assets Available for Benefits $1,723,853 $1,346,490
========== ==========
</TABLE>
See Notes to Financial Statements
3
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
For the Years Ended
December 31,
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
ADDITIONS
Investment Income:
Net appreciation in fair value of
investments (Note 9) $ 295,016 $ 266,598
Interest 352 563
Dividends 16,758 13,449
Plan interest in Master Trust
investment income 8,569 9,551
---------- ----------
320,695 290,161
Less Investment Management Fees (1,328) (1,191)
---------- ----------
319,367 288,970
Contributions:
Employee 120,105 107,697
Employer 37,058 49,488
---------- ----------
157,163 157,185
---------- ----------
Total Additions 476,530 446,155
DEDUCTIONS
Distributions to Participants
(Notes 1 and 7) 99,167 41,203
---------- ----------
Total Deductions 99,167 41,203
---------- ----------
Net Increase 377,363 404,952
---------- ----------
Net Assets Available for Benefits:
Beginning of Year 1,346,490 941,538
---------- ----------
End of Year $1,723,853 $1,346,490
========== ==========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
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 61 and 65 participating employees at December 31,
1999 and 1998, respectively.
5
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
Employee and Company Contributions
----------------------------------
A participant may authorize before-tax and after-tax contributions to the
Plan subject to a maximum level of contributions (a certain percentage of
base earnings), as specified by the bargaining agreement covering the
employee. The Company will contribute, and forward to the Trust fund 66 2/3%
of the first 1% to 6% for the employee matched contribution together with the
participant's before-tax and after-tax contribution.
The employee base earnings deferred and contributed to the Trust fund cannot
exceed $10,000 for calendar years 1999 and 1998, respectively, the maximum
allowable under the Code. Annual after-tax contributions to the Plan
(including employee and Company matching contributions) are limited to
$30,000 for each participant. Any compensation deferral in excess of $10,000
and any after-tax contributions with matching Company contributions in excess
of $30,000, together with income allocable to those excess contributions will
be returned to a participant. Any matching Company contributions
attributable to any excess contribution, and income allocable thereto, will
either be returned to the Company or applied to reduce future matching
Company contributions.
Participant Accounts
--------------------
Each participant's account is credited with the participant's contribution
and allocations of the Company's contribution and Plan earnings, and is
charged with an allocation of investment management fees. Allocations are
based on participant earnings or account balances, as defined. The benefit
to which a participant is entitled is the benefit that can be provided from
the participant's vested account.
Vesting of Participants' Interests/Forfeitures
----------------------------------------------
Participants are 100 percent vested at all times in their before-tax, after-
tax contribution and Company matching accounts.
Distributable Amounts, Withdrawals and Refunds
----------------------------------------------
The entire balance in all accounts for participants who retire, die, become
disabled, or are discharged is distributed according to the provisions of the
Plan. There are no forfeitures. The amounts distributed during 1999 and 1998,
excluding hardship withdrawls, totaled $99,167 and $3,161, respectively.
6
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
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. No hardship
withdrawals were made in 1999 but $38,042 were made in 1998.
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 accounting
principles generally accepted in the United States of America. 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 accounting
principles generally accepted in the United States of America 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
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
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.
Reclassifications
-----------------
The Plan has adopted Statement of Position 99-3, "Accounting and Reporting of
Certain Defined Contribution Plan Investments and other Disclosure Matters."
As a result, a reclassification of the prior year's financial statements has
been made to eliminate the by-fund disclosures.
Note 3 Income Tax Status
-----------------
The Company will apply for a determination letter from the Internal Revenue
Service substantiating that the Plan, as amended, qualifies under Section
401(a) of the Code and, with respect to its qualified cash or deferred
arrangement, under Section 401(k) of the Code. The Committee believes the
Plan is designed and operated to qualify as such. When the requirements of
Section 401(k) of the Code are satisfied, the following tax consequences
result:
(i) A participant is not subject to federal income tax on Company
contributions to the Plan or on income or realized gains in Plan Accounts
attributable to the participant until a distribution from the Plan is made to
him or her.
(ii) The participant is able to exclude from his or her income for federal
income tax purposes, the amount of his or her compensation deferral
contributions, subject to a maximum exclusion of $10,000 for 1999 and 1998
taxable years of the participants.
(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
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
Note 4 Reconciliation of Financial Statements to Form 5500
---------------------------------------------------
<TABLE>
<CAPTION>
December 31,
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Net assets available for benefits per
the financial statements $1,723,853 $1,346,490
Amounts allocated to withdrawing
participants (51) (1,075)
---------- ----------
Net assets available for benefits
per Form 5500 $1,723,802 $1,345,415
========== ==========
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------
1999 1998
---------- ----------
<S> <C> <C>
Benefits paid to participants per the financial
Statements $99,167 $41,203
Add: Amounts allocated to withdrawing participants
at December 31, 1999 51 1,075
Less: Amounts allocated to withdrawing participants
at December 31, 1998 (1,075) (4,237)
------- -------
Benefits paid to participants per the Form 5500 $98,143 $38,041
======= =======
</TABLE>
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, 1999 but not paid as of that date.
Note 5 Investment Funds
----------------
Participant contributions - Subject to rules the bargaining unit has adopted,
each participant has the right to designate one or more of the following
investment funds established by the Committee for the investment of his or
her compensation deferral contributions and after-tax contributions in
percentages determined by the bargaining unit.
9
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
The Fixed Income Fund
---------------------
The Fixed Income Fund represents holdings of units in a Master Trust
investment vehicle and is managed by BlackRock Financial Management. The
investment portfolio is actively managed and consists of short-term (1-3
year) fixed income instruments which include: U.S. Treasury and agency
securities, corporate bonds, mortgage-backed securities and asset-backed
fixed income securities. All of the Fund's assets are rated single-A or
better at the time of purchase and all securities must be U.S. dollar
denominated. All new cash flows into the Fund are invested in this actively
managed bond fund. At December 31, 1999 and 1998, the Plan's interest in the
net assets of the Master Trust was approximately 1% 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.
<TABLE>
<CAPTION>
December 31,
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Investments at fair value:
Corporate bonds $ 10,683,212 $118,380,288
U.S. government securities 8,885,921 57,684,732
Other bonds 2,358,608 16,164,613
Short-term investments 233,323 3,777,721
Accrued income 160,208 966,721
------------ ------------
$ 22,321,272 $196,974,075
============ ============
</TABLE>
Investment income for the Master Trust is as follows:
<TABLE>
<CAPTION>
December 31,
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Investment income:
Net appreciation (depreciation) in
fair value of investments investments $ (599,954) $ 1,731,522
Interest:
Corporate bonds 705,454 6,710,396
U.S. government securities 466,200 3,786,462
Other bonds 131,971 691,664
Short-term investments 73,592 365,214
------------ ------------
777,263 13,285,258
Less investment management fees (125,183) (227,349)
------------ ------------
$ 652,080 $ 13,057,909
============ ============
</TABLE>
10
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
The Balanced Fund
-----------------
The Balanced Fund is co-managed by Brinson Partners, Inc. (approximately 86%
as of December 31, 1999) and Mellon Capital Management (approximately 14% as
of December 31, 1999). The Balanced Fund is invested in an actively managed
combination of U.S. equity securities, U.S. fixed income securities and cash
equivalents. The U.S. equity portfolio consists of large, intermediate and
small company stocks. The bond portfolio consists primarily of U.S.
Treasury, government agency and corporate issues. This Fund's objective is to
maximize risk-adjusted total returns relative to the U.S. Balanced Index over
a full economic cycle.
The Active Equity Fund
----------------------
The Active Equity Fund is managed by Brinson Partners, Inc. The Fund is
broadly diversified by issue and industry relative to the Wilshire 5000
index. The Fund is typically invested in 70% large capitalization and 30%
intermediate and small capitalization stocks. The Fund may hold up to 50% in
cash equivalents for portfolio risk management purposes. The Fund's objective
is to maximize risk-adjusted total returns relative to the Wilshire 5000
index over a full economic cycle.
The Stock Index Fund
--------------------
The Fund is managed by Mellon Capital Management. The objective of the Fund
is to modestly exceed the performance of the Standard & Poor's 500 Stock
Index. The Stock Index Fund either invests in a stock portfolio designed to
track the performance of the S&P Stock Index and/or creates a synthetic S&P
500 portfolio using (unleveraged) financial futures and options. Assets used
as collateral for futures/options positions are comprised of various market
or debt instruments.
The Company Stock Fund
----------------------
Amounts allocated to this investment alternative will be used to purchase
shares of Computer Sciences Corporation common stock which will be held for
the benefit of the participant. The performance of this fund will depend
upon the performance of Computer Sciences Corporation stock. The Trustee may
purchase Computer Sciences Corporation stock on national securities exchanges
or elsewhere.
11
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
In accordance with rules established by the Committee, participants may
change their investment elections as of the first day of the first payroll
period in the month, if filed within the prescribed time, by delivering an
election form to the Company. Participants may transfer their existing
account balances in 1 percent increments. Transfer elections are effective
as of the first day of the month, or the second month if the participant's
election form is not filed within the time prescribed by the Committee,
following the month in which the participant files his election form with the
Company.
Company contributions - In accordance with the provisions of the Plan, the
Trustee must promptly invest matching Company contributions paid into the
Trust fund in the same fund as the participant contributions.
Note 6 Participant Loans
-----------------
The Plan has a loan provision in place which is available to participants
covered by the bargaining unit. As of December 31, 1999 and 1998, $29,555
and $27,660 of loans were outstanding, respectively.
The loans (which are accounted for in the Loan Fund) are deducted from the
participants' accounts according to a priority specified in the Plan's loan
rules and, within each account, pro rata from the funds based on their
balances at the time. Loan repayments are reinvested in the participants'
funds according to their current investment election. The repayments are
similarly allocated among participants' accounts according to the priority
specified in the Plan's rules.
Note 7 Benefits Payable
----------------
As of December 31, 1999 and 1998, net assets available for benefits included
benefits of $51 and $1,075, respectively, due to participants who have
withdrawn from participation in the Plan.
12
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
Note 8 Investments 1999
----------------
<TABLE>
<CAPTION>
Shares/Units Cost Fair Value
------------ ---------- ----------
<S> <C> <C> <C>
Fixed Income Fund
Plan Interest in Master Trust sh. 107,243 $ 180,871 $ 177,509
Balanced Fund
Brinson Trust Company Inc.
U.S. Bond Fund sh. 409 55,310 53,849
U.S. Stock Fund sh. 78 22,420 30,754
Mellon EB Enhanced Asset Allocation sh. 39 13,366 14,087
Mellon Temporary Investment Fund sh. 47 47 47
BNY Short-Term Money Market Fund sh. 1,045 1,045 1,045
Active Equity Fund
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 766 213,009 272,764
BNY Short-Term Money Market Fund sh. 307 307 307
Stock Index Fund
Mellon EB Stock Index Fund sh. 284 87,754 135,403
Mellon Temporary Investment Fund sh. 368 368 368
BNY Short-Term Money Market Fund sh. 1,079 1,079 1,079
Company Stock Fund
Computer Sciences Common Stock sh. 10,580 454,224 1,001,133
BNY Short-Term Money Market Fund sh. 3,460 3,460 3,460
CSC Employee Loan Fund
Participant Loans $ 29,555 29,555 29,555
---------- ----------
$1,062,815 $1,721,360
========== ==========
Total Long-Term Investments $1,056,509 $1,715,054
Total Short-Term Investments 6,306 6,306
---------- ----------
$1,062,815 $1,721,360
========== ==========
</TABLE>
13
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
Note 8 Investments 1998
----------------
<TABLE>
<CAPTION>
Shares/Units Cost Fair Value
------------ ---------- ----------
<S> <C> <C> <C>
Fixed Income Fund
Plan Interest in Master Trust sh. 44,409 $ 152,183 $ 151,592
BNY Short-Term Money Market Fund sh. 905 905 905
Balanced Fund
Brinson Trust Company Inc.
U.S. Bond Fund sh. 442 55,654 57,871
U.S. Stock Fund sh. 63 16,041 25,748
Mellon EB Enhanced Asset Allocation sh. 21 6,566 7,151
Mellon Temporary Investment Fund sh. 174 174 174
BNY Short-Term Money Market Fund sh. 2,355 2,355 2,355
Active Equity Fund
Brinson Trust Company, Inc.
U.S. Equity Portfolio sh. 743 198,141 284,552
BNY Short-Term Money Market Fund sh. 62 62 62
Stock Index Fund
Mellon EB Stock Index Fund sh. 298 80,064 117,654
Mellon Temporary Investment Fund sh. 417 417 417
BNY Short-Term Money Market Fund sh. 21 21 21
Company Stock Fund
Computer Sciences Common Stock sh. 10,525 419,017 676,231
BNY Short-Term Money Market Fund sh. 4,160 4,160 4,160
CSC Employee Loan Fund
Participant Loans $ 27,660 27,660 27,660
---------- ----------
$ 963,420 $1,356,553
========== ==========
Total Long-Term Investments $ 955,326 $1,348,459
Total Short-Term Investments 8,094 8,094
---------- ----------
$ 963,420 $1,356,553
========== ==========
</TABLE>
14
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
Note 9 Investments
-----------
The Plan's investment are held in a bank-administered trust-fund. The
following table presents investments. Investments that represent 5 percent or
more the Plan's net assets are separately identified.
<TABLE>
<CAPTION>
December 31,
----------------------------
1999 1998
------------ ------------
<S> <C> <C>
Investments a Fair Value as Determined by
Quoted Market Price
CSC Company Stock $1,001,133 $ 676,231
Plan interest in Master Trust 177,509 151,592
Interest in registered investment companies:
Brinson U.S. Equity Fund 272,764 284,552
Mellon Stock Index Fund 135,403 117,654
Other mutual funds 98,690 90,770
Other short-term investments 6,306 8,094
---------- ----------
1,691,805 1,328,893
---------- ----------
Investments at Estimated Fair Value
Employee Loan Fund 29,555 27,660
---------- ----------
29,555 27,660
---------- ----------
Total investments $1,721,360 $1,356,553
========== ==========
</TABLE>
During 1999 and 1998 the Plan's investments (including bought, sold, and held
during the year) appreciated in value by $295,016 and $266,598, respectively,
as follows:
Net Change in Fair Value
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------
1999 1998
------------ ------------
<S> <C> <C>
Investments at Fair Value as Determined by
Quoted Market Price
CSC Company Stock $ 310,006 $ 220,440
Plan interest in Master Trust (2,771) 430
Interest in registered investment companies:
Brinson U.S. Bond Fund (4,460) 4,471
Mellon EB Enhanced Allocation Fund 136 585
Brinson U.S. Equity Fund (25,397) 21,045
Mellon Stock Index Fund 17,502 19,627
---------- ----------
Net change in fair value $ 295,016 $ 266,598
========== ==========
</TABLE>
15
<PAGE>
CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN
NOTES TO THE FINANCIAL STATEMENTS
For the Two Years Ended December 31, 1999
Nonparticipant-Directed Investment
----------------------------------
In accordance with the provisions of the Plan, the Trustee must promptly
invest matching Company contributions paid into the trust fund in the Company
Stock Fund. An exception is in the case of a participant who has (i) attained
at least age 59 1/2, or (ii) has been credited with at least five years of
service and has attained at least age 55 and has made an election to
designate different Funds. However, employee contributions are participant-
directed to any of the five sub-accounts representing the investment options.
Information about the net assets and the significant componets of the changes
in net assets relating to the nonparticipant-directed investments is as
follows:
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------
1999 1998
------------ ------------
<S> <C> <C>
Changes in Net Assets of CSC Company stock:
Employee contributions $ 65,864 $ 58,389
Company contributions 37,058 49,488
Transfer to other investment funds (8,444) 10,878
Net appreciation 310,006 220,440
Benefits paid to participants (Note 9) (79,582) (33,704)
-------- --------
$324,902 $305,491
======== ========
</TABLE>
15
<PAGE>
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 28, 2000 By: /s/ LEON J. LEVEL
-----------------------------------------
Leon J. Level
Chairman,
Computer Sciences Corporation
Retirement Plans Committee
</PAGE>
