Exhibit 99.1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[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:
Computer Sciences Corporation Matched Asset 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
----------- ----
(a) Financial Statements:
Independent Auditors' Report....................................... 3
Statements of Net Assets Available for Benefits
As of December 31, 1999 and 1998................................. 4
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 1999 and 1998................... 5
Notes to Financial Statements...................................... 6
(b) Exhibit:
Independent Auditors' Consent...................................... E-1
(c) Supplemental Schedules:
Schedule of Assets Held for Investment Purposes.................... S-1
Schedule of Reportable Transactions................................ S-5
2
<PAGE>
INDEPENDENT AUDITORS' REPORT
Employee Retirement Plan Committee
Computer Sciences Corporation
El Segundo, California
We have audited the accompanying statements of net assets available for
benefits of the Computer Sciences Corporation Matched Asset Plan (the "Plan")
as of December 31, 1999 and 1998, and the related statements of changes in
net assets available for benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with accounting principles generally
accepted in the United States of America of America. Those standards require
that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan
as of December 31, 1999 and 1998, and the changes in net assets available for
benefits for the years then ended in conformity with accounting principles
generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in
Section C of the table of contents are presented for the purpose of
additional analysis and are not a required part of the basic financial
statements, but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These supplemental schedules are the
responsibility of the Plan's management. Such schedules have been subjected
to the auditing procedures applied in our audits of the basic financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
/s/Deloitte & Touche LLP
June 16, 2000
3
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
ASSETS
Investments (Notes 2, 5, 9 and 10):
Cash $ 508,529
Short-term investments $ 80,785,800 10,297,485
Long-term investments--at fair value:
Plan interest in Master Trust 174,961,001
CSC Stock Fund 569,521,853 380,378,825
Employee loans (Note 6) 24,067,854 21,042,106
Interest in registered investment
companies
Brinson U.S. Balanced Fund 39,109,557 71,679,904
Mellon Enhanced Asset Fund 83,443,899 77,207,126
Brinson U.S. Equity Fund 181,608,317 263,161,997
Mellon S&P 500 Stock Index Fund 281,011,005 179,469,818
Black Rock Core Bond Fund 5,454,439
Vanguard High Yield Bond Fund 3,369,664
Mellon Balanced 40/60 Fund 8,462,934
Mellon Balanced 60/40 Fund 20,444,734
Mellon Balanced 80/20 Fund 31,402,919
Mellon S&P 500 Select Fund 24,760,868
Mellon Market Completion Fund 12,667,946
Bernstein International Value
Portfolio Fund 6,661,305
Corporate bonds 77,254,423
Government bonds 52,235,414
Other bonds 17,464,594
-------------- --------------
Total investments 1,519,727,525 1,178,706,791
Receivables:
Employer contribution 293,000
Participants' contribution 1,565,285
Accrued income 988,961 16,760
Unsettled trades 39,664,599 864,521
Other 246,807
-------------- --------------
Total receivables 40,900,367 2,739,566
-------------- --------------
Total Assets 1,560,627,892 1,181,446,357
-------------- --------------
LIABILITIES
Accounts payable 2,471,734 1,914,407
Accrued expenses 740,633 693,068
Unsettled trade payables 41,942,639 2,791,900
-------------- --------------
Total Liabilities 45,155,006 5,399,375
-------------- --------------
NET ASSETS AVAILABLE FOR BENEFITS $1,515,472,886 $1,176,046,982
</TABLE>
See Notes to Financial Statements
4
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Years Ended December 31
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
ADDITIONS
Investment Income:
Net appreciation in fair value of
investments (Note 9) $ 206,245,357 $ 190,408,299
Interest 11,217,438 927,110
Dividends 16,441,381 19,529,963
Plan interest in Master Trust
investment income (Note 5) 11,827,691
-------------- --------------
233,904,176 222,693,063
Less investment management fees (1,424,639) (1,454,871)
-------------- --------------
232,479,537 221,238,192
Contributions:
Employee 108,153,469 98,450,484
Employer 18,771,010 16,139,568
Employee rollovers 10,462,137 9,782,838
Transfers from other plans, net (Note 8) 69,182,873 13,861,524
-------------- --------------
206,569,489 138,234,414
-------------- --------------
Total Additions 439,049,026 359,472,606
-------------- --------------
DEDUCTIONS
Distributions to participants
(Notes 1 and 7) 99,623,122 102,500,733
-------------- --------------
Total Deductions 99,623,122 102,500,733
-------------- --------------
Net Increase 339,425,904 256,971,873
Net Assets Available for Benefits
at Beginning of Year 1,176,046,982 919,075,109
-------------- --------------
NET ASSETS AVAILABLE FOR BENEFITS
AT END OF YEAR $1,515,472,886 $1,176,046,982
============== ==============
</TABLE>
See Notes to Financial Statements
5
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Note 1 Description of the Plan
-----------------------
The following brief description of the Computer Sciences Corporation Matched
Asset Plan (the "Plan") is provided for general information purposes only.
Participants should refer to the Plan documents for more complete
information.
The Plan was adopted by the action of the Board of Directors of Computer
Sciences Corporation (the "Company") taken on November 3, 1986, and
constitutes an amendment and restatement of the Employee Stock Purchase Plan
("the Prior Plan").
The Plan is a continuation of the Prior Plan and is qualified under the
Internal Revenue Code (the "Code"), as amended, Section 401(a) and, effective
as of January 1, 1987, with respect to the portion thereof that qualifies as
a qualified cash or deferred arrangement, to satisfy the requirement of Code
Section 401(k). It is also subject to the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA").
The Company reserves the right to discontinue its contributions and terminate
the Plan subject to the provisions of ERISA. Upon such termination, the
participants' rights to the Company's contributions vest immediately and the
account balances are fully paid to the participants.
Eligibility and Participation
-----------------------------
Any eligible employee who has satisfied the Plan's age and service
requirements, and is employed by the Company, and who receives a stated
compensation in respect of employment on the payroll of the Company, is
eligible to become a participant, with the exception of a person who is
represented by a collective bargaining unit and whose benefits have been the
subject of good faith bargaining under a contract that does not specify that
such person is eligible to participate in the Plan. In addition, the Company
may determine to exempt all employees of any division, unit, facility or
class from coverage under the Plan. Any person who leaves the employ of the
Company and, at a later time becomes re-employed, must reapply to participate
in the Plan, provided he or she otherwise meets the eligibility requirements.
There were approximately 24,976 and 25,005 participating employees at
December 31, 1999 and 1998, respectively.
6
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Employee and Company Contributions
----------------------------------
Subject to certain limitations described below, an eligible employee who
elects to become a participant may authorize any whole percentage (at least
1% but not more than 15%) of such employee's monthly compensation (as defined
in the Plan) to be deferred and contributed to the trust fund on his or her
behalf, up to a maximum amount of $10,000 for 1999 and 1998. Any
compensation deferral in excess of $10,000 for 1999 and 1998, together with
income allocable to that excess, will be returned to a participant. Any
matching Company contributions attributable to any excess contribution, and
income allocable thereto, will either be returned to the Company or applied
to reduce future matching Company contributions.
In order to qualify for the special tax treatment accorded to plans by
Section 401(k) of the Code, contributions on behalf of participants under the
Plan must meet two nondiscrimination tests designed to prevent a
disproportionate compensation deferral election by employees who are highly
compensated in relation to other employees. The Committee may cause the
percentage authorized by the highly compensated participants to be reduced if
the Plan does not meet both of the nondiscrimination tests.
A participant is not permitted to make voluntary after-tax contributions to
the Plan.
The Company will contribute and forward to the trust fund, together with a
compensation deferral contribution equal to each participant's qualifying
compensation deferral, an amount equal to 50% of the first 3% of the
participant's compensation deferral (except for three groups of employees:
the first group is a small number of employees to whom under the terms of
their contract agreement the Company will contribute an amount equal to 50%
of the first 4% of the participant's compensation deferral; the second group
to whom under the terms of their contract agreement the Company will
contribute an amount equal to 100% of the first 7% of the participant's
compensation deferral; and the third group to whom under the terms of their
contract agreement the Company will contribute an amount equal to 50% of the
first 6% of the participant's compensation deferral). Matching contributions
will be invested in the Company Stock Fund, which invests in the common stock
of Computer Sciences Corporation.
7
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Participant Accounts
--------------------
Each participant's account is credited with the participant's contribution
and the Company's matching contribution and allocations of 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
----------------------------------------------
A participant's interest in his or her Compensation Deferral Account,
Retirement Account, After Tax Account, and Rollover Account is at all times
fully vested in the participant or, when appropriate, in the participant's
beneficiary or legal representative.
Each participant has a vested interest in the value of his or her Matching
Contribution Account equal to twenty-five percent (25%) after completing two
full years of service and increasing by twenty-five percent (25%) for each
additional full year of service (except for a small number of participants
who, under the terms of their contract agreement, will vest 100% after 2
years). Vesting accelerates to 100% in the event of reaching age 65 while
employed by the Company or upon severance by reason of death or total and
permanent disability.
Any nonvested portion of the Matching Contributions Account will be forfeited
upon withdrawal from the Plan. Forfeitures may be applied to reduce future
matching contributions by the Company. Such forfeitures during 1999 and 1998
amounted to $1,101,182 and $2,186,594, respectively.
Distributable Amounts, Withdrawals and Refunds
----------------------------------------------
A participant may become entitled to a distribution of his or her
distributable benefit by reason of retirement, death, total and permanent
disability, voluntary termination of employment, or dismissal. The rules of
payment of a participant's distributable benefit depend upon age of the
participant, the number of years of service completed by the participant and
the type of severance. The total amounts distributed during 1999 and 1998,
excluding hardship withdrawals, were $97,933,989 and $101,578,143,
respectively.
8
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
While still an employee, a participant may, upon at least a 30 day written
notice to the Committee, make a withdrawal of his or her compensation
deferral contributions if the Committee finds, after considering the
participant's request, that an adequate financial hardship and resulting need
for such amount has been demonstrated by the participant. These withdrawals
during 1999 and 1998 totaled $1,689,133 and $922,590, respectively.
In order for the Plan to meet the nondiscrimination tests, the Committee has
caused the compensation deferral percentage for certain highly compensated
employees to be reduced, which has also resulted in the return of excess
compensation deferrals.
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.
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.
Assets of the Plan
------------------
The assets of the Plan are held in a trust with fourteen sub-accounts
representing the investment options. The investment income in the respective
sub-accounts is allocated to the participants. Contributions to, and
payments from, the Plan are specifically identified to the applicable sub-
accounts within the trust.
Security Transactions
---------------------
Security transactions are accounted for on a trade-date basis. Dividend
income is recorded on the ex-dividend date. Interest income is accounted for
on the accrual basis.
In general, participants in the Company Stock Fund receive distributions in
certificates for shares of the common stock of the Company.
9
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Valuation of Investment Securities
----------------------------------
Investments in common stocks, fixed income securities and institutional
investment vehicles are stated at fair value based upon closing sales prices
reported on recognized securities exchanges on the last business day of the
plan year or, for the listed securities having no sales reported and for
unlisted securities, upon last reported bid prices on that date. Investments
in short-term investments 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 Internal Revenue Service has determined and informed the Company by a
letter dated July 18, 1996, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC).
The Committee believes that the Plan is designed and operated 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. 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 the 1999 and
1998 taxable years of the participant.
(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 Company 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.
10
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO 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 $1,515,472,886 $1,176,046,982
Amounts allocated to withdrawing
Participants (13,001,753) (8,055,721)
-------------- --------------
Net assets available for benefits per
Form 5500 $1,502,471,133 $1,167,991,261
============== ==============
</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 $ 99,623,122 $102,500,733
Add: Amounts allocated to withdrawing
participants at December 31, 1999 13,001,753 8,055,721
Less: Amounts allocated to withdrawing
participants at December 31, 1998 (8,055,721) (11,552,858)
------------ ------------
Benefits paid to participants per the Form 5500 $104,569,154 $ 99,003,596
============ ============
</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 Committee may from time to
time adopt, each participant has the right to designate one or more of the
following investment funds established by the Committee for the investment of
his or her compensation deferral contributions, in increments of 1%. After
an initial election has been made, a participant may designate a different
Fund into which future compensation deferral contributions shall be invested
as of the first day of any payroll period that coincides with or immediately
follows the first day of any month once within a calendar quarter. In
addition, a participant may elect to redesignate any amounts in his or her
accounts as of the last business day of any month to be invested in a
different Fund. These elections may be made by giving such advance notice as
may be required by the Plan administrator.
11
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Following are the investment funds available for participant contributions:
The Money Market Fund
---------------------
The Money Market Fund is invested in institutional shares of the Vanguard
Prime Money Market Fund. The Fund seeks the highest level of income
consistent with maintaining stability of principal. The Fund measures its
performance against the Lipper Institutional Money Market Funds Average
benchmark. This benchmark consists of the average return for all money
market funds included in Lipper Analytical Services' "Money Market Fund"
category.
The Short Duration Bond Fund (formerly the Fixed Income Fund)
----------------------------
The Short Duration Bond Fund seeks to modestly outperform the total return
(income plus capital appreciation) of the Merrill Lynch 1-3 Year Index while
limiting the risk of underperformance versus the index. The Merrill Lynch 1-
3 Year Index represents U.S. Treasury issued securities with final maturities
ranging from one to three years.
In 1998, the Fixed Income Fund represented holdings of units in a Master
Trust investment vehicle and was managed by BlackRock Financial Management.
The investment portfolio was actively managed and consisted of short-term (1-
3 year) fixed income instruments which included: U.S. Treasury and agency
securities, corporate bonds, mortgage-backed securities and asset-backed
fixed income securities. All of the Fund's assets were rated single-A or
better at the time of purchase and all securities were U.S. dollar
denominated. All new cash flows into the Fund were invested in this actively
managed bond fund. At December 31, 1998 the Plan's interest in the net assets
of the Master Trust was approximately 89%. Investment income and
administrative expenses relating to the Master Trust were allocated to
individual plans based upon average monthly balances invested by each plan.
Subsequent to December 31, 1998, the Plan terminated its interest in the
Master Trust and transferred these funds to the Short Duration Bond Fund.
12
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
The following table represents the fair value of investments for the Master
Trust.
<TABLE>
<CAPTION>
December 31,
------------
1998
------------
<S> <C>
Investments at fair value:
Corporate bonds $118,380,288
U.S. government securities 57,684,732
Other bonds 16,164,613
Short-term investments 3,777,721
Accrued income 966,721
------------
$196,974,075
============
</TABLE>
Investment income for the Master Trust is as follows:
<TABLE>
<CAPTION>
December 31,
------------
1998
------------
<S> <C>
Investment income:
Net appreciation in fair value of investments $ 1,731,522
Interest:
Corporate bonds 6,710,396
U.S. government securities 3,786,462
Other bonds 691,664
Short-term investments 365,214
------------
13,285,258
Less investment management fees (227,349)
------------
$ 13,057,909
============
</TABLE>
The Black Rock Core Bond Fund
-----------------------------
The Core Bond Fund seeks to modestly outperform the total return (income plus
capital appreciation) of the Lehman Aggregate Index while limiting the risk
of underperformance versus the Index. The Lehman Brothers Aggregate Index
primarily consists of U.S. Treasury, corporate, mortgage and asset-backed
securities and attempts to replicate the total U.S. fixed income investment
grade bond market.
13
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
The Vanguard High Yield Bond Fund
---------------------------------
The High Yield Bond Fund is invested in shares of the Vanguard High-Yield
Bond Fund. The High Yield Bond Fund seeks a high level of interest income
and modest long-term growth of capital. The Fund measures its performance
against the Lehman Brothers High Yield Bond Index benchmark. This Index
covers the universe of fixed rate, publicly issued non-investment grade debt
registered with the Securities and Exchange Commission.
The Mellon Balanced 40/60 Fund
------------------------------
The Fund's investment objective is to allocate assets to stock and bond index
portfolios using fixed allocations. The targeted allocations are 40 percent
stocks and 60 percent bonds. The portfolios seek to match the aggregate
performance of the Wilshire 5000 Index and Lehman Brothers Aggregate Bond
Index benchmarks using the targeted allocations. The portfolios may invest
in individual securities and/or financial futures or options.
The Mellon Balanced 60/40 Fund
------------------------------
The Fund's investment objective is to allocate assets to stock and bond index
portfolios using fixed allocations. The targeted allocations are 60 percent
stocks and 40 percent bonds. The portfolios seek to match the aggregate
performance of the Wilshire 5000 Index and Lehman Brothers Aggregate Bond
Index benchmarks using the targeted allocations. The portfolios may invest
in individual securities and/or financial futures or options.
The Mellon Balanced 80/20 Fund
------------------------------
The Fund's investment objective is to allocate assets to stock and bond index
portfolios using fixed allocations. The targeted allocations are 80 percent
stocks and 20 percent bonds. The portfolios seek to match the performance of
the Wilshire 5000 Index and Lehman Brothers Aggregate Bond Index benchmarks
using the targeted allocation. The portfolios may invest in individual
securities and/or financial futures or options.
The Active Allocation Fund (formerly the Balanced Fund)
--------------------------
The Fund's investment objective is to outperform a balanced benchmark by
actively allocating assets among stocks, bonds, and cash equivalents. The
Fund's benchmark is a static mix of 65 percent U.S. equities and 35 percent
U.S. fixed income securities. It includes the Brinson U.S. Balanced Fund and
the Mellon Enhanced Asset Fund.
14
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
The Active U.S. Equity Fund (formerly the Active Equity Fund)
---------------------------
The Active U.S. Equity Fund's objective is to maximize total return,
consisting of both capital appreciation and current income, without assuming
undue risk. The Fund is diversified across a wide range of U.S. equity
securities. The Active U.S. Equity Fund's benchmark is the Wilshire 5000
Index, which includes large, intermediate and small capitalization issues as
compiled by an independent data provider. It includes the Brinson U.S.
Equity Fund.
The Mellon S&P 500 Stock Index Fund (formerly the Stock Index Fund)
-----------------------------------
The Fund seeks to match the performance of the S&P 500 Index, which is
composed of common stocks that represent a large cross-section of the U.S.
publicly traded stock market. This Fund provides exposure to large company
stocks.
The Fund may invest in the individual securities that comprise the S&P 500
and/or unleveraged S&P 500 financial futures or options.
The Mellon S&P 500 Select Fund
------------------------------
The Fund's investment objective is to modestly outperform the S&P 500 Index
while maintaining equivalent risk exposure. The Fund invests in a
diversified portfolio of stocks that match the fundamental risk
characteristics of the S&P 500 Index.
The Mellon Market Completion Fund
---------------------------------
The Fund seeks to match the performance of the Wilshire 4500 Index. The Fund
sets out to complement the other funds, which are benchmarked to the S&P 500
Index, by offering a disciplined, structured, and cost-effective vehicle
through which investors can gain diversified exposure to the market of small-
and mid-size company stocks.
This Fund is designated the Completion Fund because the Wilshire 4500 Index,
when combined with the large capitalized stock weighted S&P 500 Index, would
equate to the entire market often depicted by the Wilshire 5000 Index.
The Bernstein International Value Portfolio Fund
------------------------------------------------
The International Equity Fund invests in established companies drawn from the
major developed nations in Europe, Australia and the Far East, plus Canada.
15
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
The Fund seeks to: modestly outperform the major foreign stock markets, with
carefully controlled volatility over full market cycles; and ensure broad
portfolio diversification - the primary benefit of international investing;
and manage currency risk.
Over time, research driven, value-oriented stock selection is expected to
account for approximately 70 percent of the Fund's premium (over the
benchmark), with country allocation and currency management each contributing
15 percent.
The CSC Stock Fund
------------------
The CSC Stock Fund invests in the common stock of Computer Sciences
Corporation (CSC). The return of this fund is based on the performance of
CSC common stock. The financial performance of the Company, growth factors
in its industry, the U.S. and world economies, and the performance of the
stock market in general as well as other factors will affect the performance
of CSC stock.
Note 6 Participant Loans
-----------------
The Plan allows participants to borrow from their vested account balances
from a minimum of $1,000 up to a maximum of $50,000 or 50% of their vested
account balances, subject to certain limitations. The loans bear interest at
the prime rate quoted in the Wall Street Journal plus 1%, which is set on a
quarterly basis. Loan terms range from 1-5 years or up to 15 years for
purchase of a primary residence. Loans are recorded at cost, which
approximate fair value, on the Statement of Net Assets Available for
Benefits.
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.
16
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Note 7 Benefits Payable
----------------
As of December 31, 1999 and 1998, net assets available for benefits included
benefits of $13,001,753 and $8,055,721 respectively, due to participants who
have withdrawn from participation in the Plan.
Note 8 Transfers from Other Plans
--------------------------
During the years ended December 31, 1999 and 1998, the Plan had several
transfers from other plans. The asset values of these transfers during 1999
were as follows: $2,299,474 from the AT&T Long Term Savings Plan for
Management Employees; $1,501,095 from the Budget Group Inc. Savings Plus
Plan; $33,887,332 from the Continuum Savings Plan; $2,472,089 from the
Employees of Dupont or Conoco Savings Plan; $323,700 from the Enron
Corporation Savings Plan; $29,311,697 from the Hogan Systems Inc. Savings and
Profits Sharing Plan; $629,488 from the Integral/InPower; $2,276,308 from the
Republic National Bank Plan; $633,569 from the SGRP- Sabre Group Retirement
Plan; $3,812,732 from The Pinnacle Group Inc. 401(k) Plan; and $4,321,483
from the United Technologies Corp. (UTC) Employees Savings Plan.
For 1998, the asset values of these transfers were as follows: $7,380,010
from APM; $2,816,617 from BDM; $1,736,677 from Security Life; $776,503 from
Heller; $637,478 from Dupont Conoco; $224,931 from Liberty; $206,213 from
Statistica; $75,615 and from CNA Employees' Saving Plan; $66,426 in 1998 from
Electronic Data Systems; $53,500 in 1998 from Volpe; and $5,079 from Credit
Services.
The Plan also had several transfers to other plans in 1999 and 1998 as a
result of spin-offs. The 1999 asset values of these transfers were as
follows: $12,112,529 to the CNA Employee Savings Plan and $173,565 for the
NCTR conversion. In 1998, the value of transfers to other plans were as
follows: $80,399 in to Faxnet; $33,046 to ITDS; $3,343 to Artemis Holding;
and $737 to Planmetrics, Inc. Savings and Profit Sharing Plan.
17
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Note 9 Investments
-----------
The Plan's investments are held in a bank-administered trust fund. The
following table presents investments. Investments that represents 5 percent
or more the Plan's net assets are separately identified.
<TABLE>
<CAPTION>
December 31,
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Investments at Fair Value as Determined
by Quoted Market Price
Corporate bonds $ 77,254,423
Other bonds 69,700,008
CSC Company stock* 569,521,853 $ 380,378,825
Plan interest in Master Trust 174,961,001
Interest in registered investment
companies:
Mellon Enhanced Asset Fund 83,443,899 77,207,126
Brinson U.S. Balanced Fund 39,109,557 71,679,904
Brinson U.S. Equity Fund 181,608,317 263,161,997
Mellon Stock Index Fund 281,011,005 179,469,818
Other mutual funds 113,224,809
Other short-term investments 80,785,800 10,806,014
-------------- --------------
1,495,659,671 1,157,664,685
-------------- --------------
Investments at Estimated Fair Value
Employee loan fund 24,067,854 21,042,106
-------------- --------------
24,067,854 21,042,106
-------------- --------------
Total investments $1,519,727,525 $1,178,706,791
============== ==============
</TABLE>
*non-participant directed investment
18
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
During 1999 and 1998 the Plan's investments (including investments bought,
sold, and held during the year) appreciated in value by $206,245,357 and
$190,408,299, respectively, as follows:
Net Change in Fair Value
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
Investments at Fair Value as Determined
by Quoted Market Price
Corporate bonds $ (1,595,085)
Other bonds (2,411,978)
CSC Company stock 183,319,392 $129,496,024
Interest in registered investment
companies:
Mellon Enhanced Asset Fund 124,240 4,885,347
Brinson U.S. Balanced Fund (3,031,707) 7,031,772
Brinson U.S. Equity Fund (19,638,305) 20,288,161
Mellon Stock Index Fund 40,533,855 28,706,995
Other mutual funds 8,944,945
------------ ------------
Net change in fair value $206,245,357 $190,408,299
============ ============
</TABLE>
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 fourteen sub-accounts representing the investment
options.
19
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Note 9 Investments (continued)
-----------------------
Information about the net assets and the significant components of the
changes in net assets relating to the nonparticipant-directed investments is
as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
Changes in Net Assets of CSC Company
stock:
Employee contributions $ 25,245,446 $ 21,319,413
Company contributions 18,406,070 15,776,009
Rollovers 1,497,629 1,563,856
Transfer to other investment funds (6,197,641) 3,515,912
Plan-to-Plan Transfers 3,995,653 846,182
Net appreciation 183,319,393 129,496,024
Benefits paid to participants (37,123,522) (30,908,574)
------------ ------------
$189,143,028 $141,608,822
============ ============
</TABLE>
20
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Note 10 Investments 1999
----------------
<TABLE>
<CAPTION>
Principal Fair Value
Amount or Contract
or Shares Cost Value
------------- ------------ ------------
<S> <C> <C> <C>
Clearing Account
BNY Collective Short-Term Invst.
Fund sh. 5,559,894 $ 5,559,894 $ 5,559,894
Short Duration Bond Fund
(formerly Fixed Income Fund)
Corporate bonds* sh.77,916,345 78,372,959 77,254,423
Government bonds sh.52,868,147 53,159,388 52,235,414
Other Bonds sh.17,688,006 17,734,700 17,464,594
BNY Collective Short-Term
Invst. Fund sh. 1,870,536 1,870,536 1,870,536
Active Allocation Fund
(formerly Balanced Fund)
Brinson Partners Inc.:
U.S. Bond Fund sh. 190,262 26,403,958 25,047,921
U.S. Stock Equity Fund sh. 35,536 14,654,792 14,061,636
BTC U.S. Cash Management Fund sh. 6,093,428 6,093,428 6,093,428
Mellon Bank Enhanced Asset Fund* sh. 774,788 83,279,997 83,443,899
Active U.S. Equity Fund
(formerly Active Equity Fund)
Brinson Partners Inc.:
U.S. Equity with Cash Fund* sh. 510,332 197,836,011 181,608,317
U.S. Cash Management Fund sh. 7,812,077 7,812,077 7,812,077
Mellon S&P 500 Stock Index Fund
(formerly Stock Index Fund)
Mellon Capital Liquidity Stock
Index Fund* sh. 898,089 327,940,910 281,011,005
CSC Stock Fund
Computer Sciences Common Stock* sh. 6,018,725 392,138,573 569,521,853
BNY Collective Short-Term
Invst. Fund sh. 8,104,486 8,104,486 8,104,486
Employee Loan Fund
Participant Loans $24,067,854 24,067,854 24,067,854
Money Market Fund
Vanguard Money Market Fund sh.51,345,379 51,345,379 51,345,379
Core Bond Fund
Black Rock Core Bond Fund sh. 597,419 5,713,802 5,454,439
</TABLE>
*represents investments greater than 5% of net assets
21
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Note 10 Investments 1999 (continued)
----------------------------
<TABLE>
<CAPTION>
Principal Fair Value
Amount or Contract
or Shares Cost Value
----------- -------------- --------------
<S> <C> <C> <C>
High Yield Bond Fund
Vanguard High Yield Bond Fund sh. 455,976 3,477,085 3,369,664
Mellon Balanced 40/60 Fund
Mellon Capital:
EB Daily Market Completion
Fund sh. 5,623 643,827 843,499
EB Daily Liquidity Fund sh. 49,485 5,261,769 5,055,032
EB Daily Liquidity Stock
Index Fund sh. 8,196 2,261,641 2,564,403
Mellon Balanced 60/40 Fund
Mellon Capital:
EB Daily Market Completion
Fund sh. 20,259 2,359,652 3,039,115
EB Daily Liquidity Fund sh. 80,055 8,468,879 8,177,894
EB Daily Liquidity Stock
Index Fund sh. 29,491 8,219,943 9,227,725
Mellon Balanced 80/20 Fund
Mellon Capital:
EB Daily Market Completion
Fund sh. 41,361 4,899,902 6,204,630
EB Daily Liquidity Fund sh. 61,482 6,464,946 6,280,584
EB Daily Liquidity Stock
Index Fund sh. 60,459 16,963,820 18,917,705
Mellon S&P 500 Select Fund
Mellon Capital EB Daily
Liquid Active sh. 195,163 22,792,208 24,760,868
Mellon Market Completion Fund
Mellon Capital EB Daily
Market Completion sh. 84,447 10,495,561 12,667,946
Bernstein International Value Portfolio Fund
Sanford Bernstein Int'l Value
Portfolio sh. 313,473 6,211,843 6,661,305
-------------- --------------
$1,400,609,820 $1,519,727,525
============== ==============
Total Long-Term Investments $1,319,824,020 $1,438,941,725
Total Short-Term Investments 80,785,800 80,785,800
-------------- --------------
$1,400,609,820 $1,519,727,525
============== ==============
</TABLE>
*represents investments greater than 5% of net assets
22
<PAGE>
COMPUTER SCIENCES CORPORATION
MATCHED ASSET PLAN
NOTES TO FINANCIAL STATEMENTS
For the two years ended December 31, 1999
Note 10 Investments 1998
----------------
<TABLE>
<CAPTION>
Principal Fair Value
Amount or Contract
or Shares Cost Value
------------ ------------ --------------
<S> <C> <C> <C>
Fixed Income Fund
Interest in Master Trust* $282,086,762 $174,339,624 $ 174,961,001
BNY Collective Short-Term
Invst. Fund sh. 419,934 419,934 419,934
Balanced Fund
Brinson Partners Inc.:
U.S. Bond Fund* 377,098 47,231,044 49,321,216
U.S. Stock Equity Fund sh. 54,362 13,335,155 22,358,688
Mellon Bank Enhanced Asset Fund* sh. 718,239 72,377,700 77,207,126
BNY Collective Short-Term Invst.
Fund sh.1,305,353 1,305,353 1,305,353
Cash sh. 508,529 508,529 508,529
Active Equity Fund
Brinson Partners Inc.:
U.S. Equity Portfolio* sh. 686,993 156,058,114 263,161,997
U.S. Cash Management Fund sh. 2 2 2
BNY Collective Short-Term Invst.
Fund sh.3,204,111 3,204,111 3,204,111
Stock Index Fund
Mellon Capital:
Mellon Capital Mgmt. Stock
Index Fund* sh. 451,193 118,174,427 178,136,929
Mellon EB Daily Opening Stock
Index Fund sh. 4,429 1,260,964 1,332,889
Mellon Temporary Investment
Fund sh. 71,688 71,688 71,688
BNY Collective Short-Term Invst.
Fund sh.1,850,178 1,850,178 1,850,178
Company Stock Fund
Computer Sciences Common Stock* sh.5,920,293 119,007,404 380,378,825
BNY Collective Short-Term Invst.
Fund sh.3,446,219 3,446,219 3,446,219
Employee Loan Fund
Participant Loans $ 21,042,106 21,042,106 21,042,106
------------ --------------
$733,632,552 $1,178,706,791
============ ==============
Total Long-Term Investments $722,826,538 $1,167,900,777
Total Short-Term Investments 10,806,014 10,806,014
------------ --------------
$733,632,552 $1,178,706,791
============ ==============
</TABLE>
*represents investments greater than 5% of net assets
23
<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.
Computer Sciences Corporation
MATCHED ASSET PLAN
Date: June 28, 2000 By: /s/ LEON J. LEVEL
-----------------------------------
Leon J. Level
Chairman,
Computer Sciences Corporation
Retirement Plans Committee
24
<PAGE>
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Computer Sciences Corporation
Registration Statement No. 333-00755 on Form S-8 of our report dated
June 16, 2000, appearing in this Annual Report on Form 11-K of the Computer
Sciences Corporation Matched Asset Plan for the year ended December 31, 1999.
/s/ DELOITTE & TOUCHE LLP
Los Angeles, California
June 28, 2000
E-1
<PAGE>
1999
Form 5500, Schedule H, Line 4i
Computer Sciences Corporation
EIN 95-2043126
Matched Asset Plan 001
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR
--------------------------------------------------------------
<TABLE>
<CAPTION>
(a) (b)Identity of issue, (c)Description of investment including (d)Cost (e)Current
borrower, lessor or maturity date, rate of interest, Value
similar party collateral, par or maturity value
--- ---------------------- ------------------------------------------- ---------- -----------
<S> <C> <C> <C> <C>
Asset Securitization Asset-Backed Sec.- Mortg. Pass-thru Certif.
Corp 02/14/41 6.500% $1,446,902 $1,399,871
Citicorp Mtg Secs Inc Asset-Backed Sec.- Mortg. Pass-thru Certif.
02/25/09 6.000% 1,174,500 1,160,064
Credit Suisse First Asset-Backed Sec.- Mortg. Pass-thru Certif.
Boston Mtg 08/25/27 7.250% 1,009,710 1,003,321
CWMBS Inc Asset-Backed Sec.- Mortg. Pass-thru Certif.
03/25/28 7.000% 1,067,806 1,056,317
Deutsche Mortgage & Asset-Backed Sec.- Mortg. Pass-thru Certif.
Asset Receiving 09/15/07 6.220% 579,290 553,387
DLJ Mtg Accep Corp Asset-Backed Sec.- Mortg. Pass-thru Certif.
Restr 144A 11/12/21 6.860% 1,010,413 972,043
Green Tree Finl Corp Asset-Backed Sec.- Mortg. Pass-thru Certif.
08/15/23 7.050% 1,234,285 1,215,983
Greenpoint Asset-Backed Sec.- Mortg. Pass-thru Certif.
Manufactured Hsg 08/15/15 6.010% 1,499,612 1,447,545
Newcourt Equipment Asset-Backed Sec.- Mortg. Pass-thru Certif.
Trust Secs 12/20/02 5.240% 2,187,867 2,173,910
Morgan Stanley Asset-Backed Sec.- Mortg. Pass-thru Certif.
Cap I Inc 10/15/07 6.330% 644,376 610,304
Prudential Home Mtg Asset-Backed Sec.- Mortg. Pass-thru Certif.
Secs Co 05/25/24 7.050% 314,347 311,009
Residential Accredit Asset-Backed Sec.- Mortg. Pass-thru Certif.
Lns Inc 07/25/27 7.500% 118,140 117,010
Residential Fdg Mtg Asset-Backed Sec.- Mortg. Pass-thru Certif.
Secs I Inc 01/25/09 6.375% 1,142,855 1,125,947
Residentisl Accredit Asset-Backed Sec.- Mortg. Pass-thru Certif.
Lns Inc 10/25/28 6.750% 1,578,609 1,552,541
Sequoia Mtg Tr 2 Asset-Backed Sec.- Mortg. Pass-thru Certif.
10/25/24 6.147% 1,573,107 1,569,124
Union Planters Mtg Asset-Backed Sec.- Mortg. Pass-thru Certif.
Fin Corp 01/25/28 6.350% 699,913 686,390
Union Planters Mtg Asset-Backed Sec.- Mortg. Pass-thru Certif.
Fin Corp 04/01/29 6.250% 1,178,027 1,144,066
Arcadia Automobile Asset-Backed Sec.- Auto. Loan Receiv.
Receivables 11/15/02 5.950% 2,696,288 2,651,106
Chase Manhattan Asset-Backed Sec.- Auto. Loan Receiv.
Grantor 09/15/02 6.610% 261,150 258,323
Chevy Chase Auto Asset-Backed Sec.- Auto. Loan Receiv.
Receivables 03/20/04 6.200% 527,711 519,846
Chevy Chase Auto Asset-Backed Sec.- Auto. Loan Receiv.
Receivables 10/15/03 6.500% 463,102 457,751
First Sec Auto Grantor Asset-Backed Sec.- Auto. Loan Receiv.
08/15/03 6.300% 336,024 335,867
First Security Auto Asset-Backed Sec.- Auto. Loan Receiv.
Owner 10/15/03 6.000% 2,325,000 2,302,448
Ford Cr Auto Owner Asset-Backed Sec.- Auto. Loan Receiv.
11/15/01 5.310% 2,080,313 2,082,381
Ford Cr Auto Owner Asset-Backed Sec.- Auto. Loan Receiv.
09/16/02 6.080% 2,149,884 2,130,499
Honda Auto Lease Asset-Backed Sec.- Auto. Loan Receiv.
09/16/02 6.450% 3,099,516 3,088,375
Mellon Auto Grantor Asset-Backed Sec.- Auto. Loan Receiv.
10/17/05 5.460% 1,493,981 1,496,109
Money Store Auto Asset-Backed Sec.- Auto. Loan Receiv.
03/20/04 6.350% 294,901 290,603
Navistar Finl Owner Asset-Backed Sec.- Auto. Loan Receiv.
04/15/03 5.950% 2,224,689 2,199,835
Nissan Auto Asset-Backed Sec.- Auto. Loan Receiv.
Receivables 1999-A 09/15/03 6.470% 1,274,831 1,264,800
Olympic Automobile Asset-Backed Sec.- Auto. Loan Receiv.
Receivables 10/15/01 7.350% 291,374 289,804
Olympic Automobile Asset-Backed Sec.- Auto. Loan Receiv.
Receivables 03/15/02 6.700% 1,200,113 1,189,014
</TABLE>
S-1
<PAGE>
<TABLE>
<CAPTION>
(a) (b)Identity of issue, (c)Description of investment including (d)Cost (e)Current
borrower, lessor or maturity date, rate of interest, Value
similar party collateral, par or maturity value
--- ---------------------- ------------------------------------------- ---------- -----------
<S> <C> <C> <C> <C>
Onyx Accep Owner Asset-Backed Sec.- Auto. Loan Receiv.
02/15/03 5.780% 2,674,617 2,638,700
Toyota Auto Asset-Backed Sec.- Auto. Loan Receiv.
Receivables 1999-A 08/16/04 6.150% 2,024,211 2,003,029
World Omni Automobile Asset-Backed Sec.- Auto. Loan Receiv.
Lease Trust 11/15/02 6.250% 924,076 918,183
Banc One Cr Card Asset-Backed Sec.- Credit Card Receiv.
Master Tr 07/15/02 8.000% 2,331,796 2,307,115
Dayton Hudson Cr Card Asset-Backed Sec.- Credit Card Receiv.
Master Tr 08/25/05 6.250% 1,279,743 1,221,422
Sears Cr Account Asset-Backed Sec.- Credit Card Receiv.
Master Tr 10/16/06 6.450% 2,179,246 2,116,594
Standard Cr Card Asset-Backed Sec.- Credit Card Receiv.
Master Tr 11/07/03 8.250% 3,369,110 3,225,316
Standard Credit Card Asset-Backed Sec.- Credit Card Receiv.
02/07/00 7.850% 1,665,026 1,623,513
Copelco Cap Fdg Corp X Asset-Backed Securities - Miscellaneous
04/20/05 6.270% 663,648 660,396
Copelco Cap Funding Asset-Backed Securities - Miscellaneous
Corp 03/15/02 5.665% 1,550,047 1,531,586
Copelco Capital Asset-Backed Securities - Miscellaneous
Funding Corp 03/15/01 5.500% 2,000,000 1,995,720
DLJ Mtg Accep Corp Asset-Backed Securities - Miscellaneous
12/17/27 6.650% 443,982 439,697
Green Tree Asset-Backed Securities - Miscellaneous
Recreational Equip 02/15/11 6.170% 1,292,484 1,282,164
Green Tree Asset-Backed Securities - Miscellaneous
Recreational Equip 02/15/18 6.490% 889,910 870,238
& Consumer
IFC SBAP 97-1A V/R Asset-Backed Securities - Miscellaneous
01/15/24 1,132,543 1,117,147
Massachusetts Rrb Spl Asset-Backed Securities - Miscellaneous
Purp Tr 09/15/05 6.450% 1,724,582 1,703,593
Missouri Higher Ed Ln Asset-Backed Securities - Miscellaneous
Auth Student Ln 07/25/08 1,449,751 1,450,273
Newcourt Equipment Asset-Backed Securities - Miscellaneous
Trust Secs 10/15/02 5.450% 1,245,703 1,239,050
Ryder Veh Lease Tr Asset-Backed Securities - Miscellaneous
04/15/04 6.680% 1,399,805 1,389,920
TMS SBA Ln Tr Asset-Backed Securities - Miscellaneous
01/15/25 6.730% 625,723 632,044
TMS SBA Ln Tr Asset-Backed Securities - Miscellaneous
04/15/24 6.110% 1,037,473 1,017,402
TMS SBA Ln Tr V/R Asset-Backed Securities - Miscellaneous
01/15/25 6.250% 937,640 926,663
Donaldson Lufkin & Financial & insurance corp. bonds
Jenrette Inc 04/01/02 5.875% 1,644,803 1,601,655
MBNA Master Cr Card Financial & insurance corp. bonds
Tr Ii 01/15/03 6.600% 2,563,148 2,552,397
Metropolitan Life In Financial & insurance corp. bonds
Co Surplus Nt Restr 11/01/03 6.300% 890,532 881,544
Morgan St Dean Witter Financial & insurance corp. bonds
01/15/03 7.125% 1,254,724 1,253,469
U S Treasury Bonds Government Bonds
11/15/08 8.750% 1,993,644 1,942,114
U S Treasury Notes Government Bonds
10/15/06 6.500% 1,365,881 1,346,203
U S Treasury Notes Government Bonds
11/30/01 5.875% 6,114,851 6,096,656
U S Treasury Notes Government Bonds
02/28/01 5.000% 342,910 340,687
U S Treasury Notes Government Bonds
08/31/01 5.500% 6,531,346 6,491,981
U S Treasury Notes Government Bonds
06/30/01 5.750% 450,378 447,188
U S Treas Infl Idx Note Government Bonds
01/15/07 3.375% 2,964,396 2,917,608
U S Treasury Notes Government Bonds
Trsy Infl Indx Pric 01/15/08 3.625% 1,099,466 1,077,873
Federal Home Loan U. S. Agencies Securities
Mortgage Corp. 07/01/27 6.961% 2,755,171 2,669,733
Federal Home Loan U. S. Agencies Securities
Mortgage Corp. 09/01/10 6.500% 412,904 396,139
Federal Home Loan U. S. Agencies Securities
Mortgage Corp. 09/01/11 7.000% 1,646,772 1,635,940
Federal National U. S. Agencies Securities
Mortgage Assoc. 05/01/09 7.500% 1,704,827 1,656,597
Federal National U. S. Agencies Securities
Mortgage Assoc. 11/01/03 6.000% 1,352,467 1,316,897
</TABLE>
S-2
<PAGE>
<TABLE>
<CAPTION>
(a) (b)Identity of issue, (c)Description of investment including (d)Cost (e)Current
borrower, lessor or maturity date, rate of interest, Value
similar party collateral, par or maturity value
--- ---------------------- ------------------------------------------- ---------- -----------
<S> <C> <C> <C> <C>
Federal National U. S. Agencies Securities
Mortgage Assoc. 04/01/09 7.250% 839,657 817,874
Federal National U. S. Agencies Securities
Mortgage Assoc. 02/01/09 5.500% 1,665,635 1,599,277
Federal National U. S. Agencies Securities
Mortgage Assoc. 07/01/09 5.500% 1,660,038 1,581,835
Federal National U. S. Agencies Securities
Mortgage Assoc. 03/01/29 5.808% 429,639 423,146
Federal National U. S. Agencies Securities
Mortgage Assoc. 07/01/09 6.000% 2,792,511 2,756,688
Federal National U. S. Agencies Securities
Mortgage Assoc. 04/01/13 7.000% 853,664 847,769
Federal National U. S. Agencies Securities
Mortgage Assoc. 08/01/09 8.000% 1,536,090 1,509,108
Federal National U. S. Agencies Securities
Mortgage Assoc. 08/01/14 8.500% 895,193 884,394
Federal National U. S. Agencies Securities
Mortgage Assoc. 11/01/08 6.500% 2,499,293 2,413,046
FHA Proj Ln Cert Ser U. S. Agencies Securities
Pool # 143 Restr 03/01/19 7.430% 1,636,832 1,602,513
Government National U. S. Agencies Securities
Mortgage Assoc. 07/16/22 7.500% 1,486,250 1,457,583
Government National U. S. Agencies Securities
Mortgage Assoc. 05/16/24 8.000% 3,020,820 2,988,885
Government National U. S. Agencies Securities
Mortgage Assoc. 09/15/12 7.000% 559,218 550,122
Government National U. S. Agencies Securities
Mortgage Assoc. 12/15/07 7.000% 27,768 27,353
Government National U. S. Agencies Securities
Mortgage Assoc. 12/15/07 7.000% 339,121 334,045
Government National U. S. Agencies Securities
Mortgage Assoc. 10/15/07 7.000% 124,552 122,689
Government National U. S. Agencies Securities
Mortgage Assoc. 12/15/07 7.000% 500,837 494,177
Government National U. S. Agencies Securities
Mortgage Assoc. 09/15/08 7.000% 301,679 297,074
Government National U. S. Agencies Securities
Mortgage Assoc. 10/15/08 7.000% 462,648 455,197
Government National U. S. Agencies Securities
Mortgage Assoc. 09/15/08 7.000% 367,988 362,066
Government National U. S. Agencies Securities
Mortgage Assoc. 09/15/08 7.000% 540,467 532,872
Government National U. S. Agencies Securities
Mortgage Assoc. 10/15/08 7.000% 70,574 69,440
Government National U. S. Agencies Securities
Mortgage Assoc. 04/15/06 7.250% 691,600 676,153
Government National U. S. Agencies Securities
Mortgage Assoc. 02/15/09 8.250% 1,122,301 1,096,492
ABFS Equip Contract Tr Other Bonds
10/15/05 6.100% 712,602 694,422
Aerofreighter Fin Tr Other Bonds
12/15/09 7.850% 889,862 867,343
Amresco Independence Other Bonds
Fdg Inc 06/15/26 0.000% 1,469,656 1,469,656
Bayview Finl Other Bonds
Acquisition Tr 05/25/29 7.010% 1,501,215 1,467,453
Business Ln Ctr Inc Other Bonds
V/R Restr 01/15/25 1,269,580 1,274,055
Captec Franchise Tr Other Bonds
05/25/05 6.504% 1,800,666 1,753,038
DLJ Coml Mtg Corp Other Bonds
09/05/01 850,000 850,782
DLJ Mtg Accep Corp Other Bonds
05/15/06 7.400% 1,382,824 1,385,885
FMAC Ln Receivables Tr Other Bonds
11/15/04 5.990% 1,077,300 1,054,374
Franchise Ln Tr Other Bonds
07/15/04 6.240% 997,619 984,095
Honda Auto Receivables Other Bonds
Grantor Tr 07/15/04 5.500% 1,403,297 1,394,736
NPF Vi Inc Other Bonds
06/01/02 6.220% 1,618,454 1,559,536
PBG Equip Tr Other Bonds
01/20/12 6.270% 1,885,878 1,854,361
Ryder Veh Lease Tr Other Bonds
09/15/08 6.100% 875,747 854,858
Black Rock Financial Mutual Fund - Core Bond Fund
Management, Inc. 5,713,802 5,454,439
</TABLE>
S-3
<PAGE>
<TABLE>
<CAPTION>
(a) (b)Identity of issue, (c)Description of investment including (d)Cost (e)Current
borrower, lessor or maturity date, rate of interest, Value
similar party collateral, par or maturity value
--- ---------------------- -------------------------------------- -------------- --------------
<S> <C> <C> <C> <C>
Brinson Trust Mutual Fund - U.S. Bond Fund 26,403,958 25,047,921
Company, Inc.
Brinson Trust Company, Mutual Fund - U.S. Stock Equity Fund 14,654,792 14,061,636
Inc.
Brinson Trust Company, Mutual Fund - BTC U.S. Cash Management 6,093,428 6,093,428
Inc. Fund
Brinson Trust Company, Mutual Fund - U.S. Equity with 197,836,011 181,608,317
Inc. Cash Fund
Brinson Trust Company, Mutual Fund - U.S. Cash Management Fund 7,812,077 7,812,077
Inc.
Mellon Capital Mutual Fund - Enhanced Asset Fund 83,279,997 83,443,899
Management Corp.
Mellon Capital Mutual Fund - Liquidity Stock 327,940,910 281,011,005
Management Corp. Index Fund
Mellon Capital Mutual Fund - EB Daily Market 7,903,381 10,087,244
Management Corp. Completion Fund
Mellon Capital Mutual Fund - EB Daily 20,195,594 19,513,510
Management Corp. Liquidity Fund
Mellon Capital Mutual Fund - EB Daily Liquidity 27,445,404 30,709,833
Management Corp. Stock Index Fund
Mellon Capital Mutual Fund - EB Daily Liquid Active 22,792,208 24,760,868
Management Corp.
Mellon Capital Mutual Fund - EB Daily Market 10,495,561 12,667,946
Management Corp. Completion
Sanford C. Bernstein Mutual Fund - International 6,211,843 6,661,305
& Co., Inc. Equity Fund
* Computer Sciences Common Stock 392,138,573 569,521,853
Corporation
* Computer Sciences Employee Loan Fund 24,067,854 24,067,854
Corporation (8.75%) (12/12/2014)
The Vanguard Group Mutual Fund - High Yield Bond Fund 3,477,085 3,369,664
The Vanguard Group Money Market Fund 51,345,379 51,345,379
* Bank of New York BNY Collective Short-Term Invst. Fund 15,534,916 15,534,916
-------------- --------------
Total Assets Held for Investment Purposes $1,400,609,820 $1,519,727,525
============== ==============
</TABLE>
*represents party in interest
S-4
<PAGE>
1999
Form 5500, Schedule H, Line 4j
Computer Sciences Corporation
EIN 95-2043126
Matched Asset Plan 001
SCHEDULE OF REPORTABLE TRANSACTIONS
-----------------------------------
Series Transactions in the Aggregate in Excess of 5%
----------------------------------------------------
<TABLE>
<CAPTION>
(a)Identity (b)Description (c)Purchase (d)Selling (g)Cost of (h)Current Value (i)Net Gain
of Party of Asset Price Price Asset of Asset on or (Loss)
Involved Transaction
Date
----------- -------------- ----------- ---------- ---------- ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
(none to report)
</TABLE>
S-5
<PAGE>
1999
Form 5500, Schedule H, Line 4j
Computer Sciences Corporation
EIN 95-2043126
Matched Asset Plan 001
SCHEDULE OF REPORTABLE TRANSACTIONS
-----------------------------------
Series Transactions in the Aggregate in Excess of 5%
----------------------------------------------------
<TABLE>
<CAPTION>
(a)Identity (b)Description (c)Purchase (d)Selling (g)Cost of (h)Current (i)Net Gain
of Party of Asset Price Price Asset Value or (Loss)
Involved of Asset on
Transaction
Date
------------- -------------- ------------ ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Brinson Trust Mutual Fund -
Company U.S. Bond Fund
- Purchases $ 23,576,337 $ 23,576,337 $ 23,576,337
- Sales $ 46,124,987 47,153,725 46,124,987 $(1,028,738)
Brinson Trust Mutual Fund -
Company U.S. Equity
with Cash
- Purchases 65,698,870 65,698,870 65,698,870
- Sales 127,365,481 130,838,318 127,365,481 (3,472,837)
Brinson Trust Mutual Fund -
Company U.S. BTC Cash
Management Fund
- Purchases 157,010,591 157,010,591 157,010,591
- Sales 143,105,088 143,105,088 143,105,088
Mellon Capital Mutual Fund -
Management Daily Liquidity
Stock Index
Fund
- Purchases 96,627,429 96,627,429 96,627,429
- Sales 9,000,959 11,694,034 9,000,959 (2,693,075)
The Vanguard Money Market
Group Fund
- Purchases 91,768,336 91,768,336 91,768,336
- Sales 40,422,957 40,422,957 40,422,957
Bank of New BNY Short-Term
York Money Market
Fund
- Purchases 479,987,873 479,987,873 479,987,873
- Sales 464,452,957 464,452,957 464,452,957
</TABLE>
S-6
