-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F6TQdhELi9xdmFzWUjR+8E9dLzAQs0fU+VAk2ajQHmUeGtvJm43TecxUzn9VywYL TBs0kwmFPCaaIZqdQDzoPQ== 0000023082-02-000023.txt : 20020626 0000023082-02-000023.hdr.sgml : 20020626 20020626134337 ACCESSION NUMBER: 0000023082-02-000023 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020626 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMPUTER SCIENCES CORP CENTRAL INDEX KEY: 0000023082 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 952043126 STATE OF INCORPORATION: NV FISCAL YEAR END: 0402 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04850 FILM NUMBER: 02687547 BUSINESS ADDRESS: STREET 1: 2100 E GRAND AVE CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3106150311 MAIL ADDRESS: STREET 1: 2100 EAST GRAND AVE CITY: EL SEGUNDO STATE: CA ZIP: 90245 11-K 1 tmghsp11k01.htm CSC OUTSOURCING INC. HOURLY SAVINGS PLAN tmghsp11k01

 

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, 2001

 

o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF1934.
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. 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, CA 90245


 

 

TABLE OF CONTENTS

Description

Page

 

 

(a) Financial Statements:

 

 

 

Independent Auditors' Report

3

 

 

Statements of Net Assets Available for Benefits
   As of December 31, 2001 and 2000

4

 

 

Statements of Changes in Net Assets Available for Benefits
   For the Years Ended December 31, 2001 and 2000

5

 

 

Notes to Financial Statements

6

 

 

(b) Exhibit:

 

 

 

      Independent Auditors' Consent

E-1

 

 

(c) Supplemental Schedule:

 

 

 

      Schedule of Assets Held for Investment Purposes at End of Year

S-1

 


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 CSC Outsourcing, Inc. Hourly Savings Plan (the "Plan") as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2001 and 2000, 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 schedule listed in the table of contents is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is 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. This supplemental schedule is the responsibility of the Plan's management. Such supplemental schedule has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

 

/s/Deloitte & Touche LLP
May 31, 2002
Los Angeles, California

 

3


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS

 

              December 31,           

     2001     

     2000     

ASSETS

Investments (Notes 2, 5 and 8):

  Short-term

$        5,101

$        11,193

  Long-term--at fair value

    Mellon Capital Government Bond Fund

1,008,764

925,195

    Frank Russell Active Equity Fund

899,231

1,044,395

    CSC Stock Fund

510,519

603,475

  Participant loans (Note 6)

7,360

9,139

  Interest in Master Trust (Note 5)

    1,835,410

    1,814,942

Total investments

    4,266,385

    4,408,339

Receivables:

  Participants' contributions

3,252

3,234

  Employer contributions

1,395

5,056

  Accrued income

11

71

  Unsettled trades

         1,505

          4,525

 Total receivables

         6,163

         12,886

  Total Assets

     4,272,548

      4,421,225

LIABILITIES

  Accrued expenses

1,139

2,909

  Unsettled trades

2,485

5,629

  Other

        3,244

          3,663

    Total Liabilities

        6,868

         12,201

NET ASSETS AVAILABLE FOR BENEFITS

$ 4,265,680
=========

$    4,409,024
===========

 

 See Notes to financial statements

4


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS

 

For the Years Ended
          December 31,          

    2001    

    2000    

ADDITIONS

Investment Loss:

  Net depreciation in fair value of investments

$     (225,522)

$     (485,881)

  Interest

393

1,771

  Dividends

58,658

63,749

  Plan interest in Master Trust investment income

       143,717

       185,261

(22,754)

(235,100)

  Investment management fees

        (4,629)

        (5,849)

(27,383)

(240,949)

Contributions:

  Employee

132,774

139,094

  Employer

         56,667

         63,745

        189,441

        202,839

  Total Additions (Reductions)

        162,058

       (38,110)


DEDUCTIONS

  Distributions to participants (Notes 1 and 7)

        305,402

        430,343

    Total Deductions

        305,402

        430,343

    Net Decrease

(143,344)

(468,453)

Net assets available for benefits at beginning of year

     4,409,024

     4,877,477

NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR

$   4,265,680
==========

$    4,409,024
===========

 

See notes to financial statements


5


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2001

 

Note 1  Description of the Plan

The following brief description of the CSC Outsourcing Inc. Hourly Savings Plan (the "Plan"), formerly the TMD Hourly Savings Plan, of Computer Sciences Corporation (the "Company") is provided for general information purposes only. Participants should refer to the Plan document for more complete information.

The Plan became effective May 2, 1992, as a result of the Company acquiring the Data Systems Division of General Dynamics Corporation. The Plan is administered by a committee consisting of four members 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 Plan pursuant to a Trust Agreement entered into with the Company. Certain administrative expenses (including Trustee fees) incurred for services rendered to the Plan are paid by the Company.

The Plan is a voluntary, contributory, defined contribution plan and is intended to satisfy the requirements of Section 401(a) and 401(k) of the Internal Revenue Code (the "Code"). 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 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.

Interest in the Common/Collective Trust

The Plan's investments are in the common/collective trust ("CCT") which was established for the investment of assets of the Plan and several other Computer Sciences Corporation sponsored retirement plans. Each participating retirement plan has an undivided interest in the CCT. The assets of the CCT are held by the Trustee. At December 31, 2001 and 2000, the Plan's interest in the net assets of the CCT was approximately .20%. Investment income and administrative expenses relating to each discretionary or directed fund within the CCT are allocated to the individual plans based upon average monthly balances invested by each plan in each discretionary or directed fund. As part of the CCT, a portion of the Plan's assets are held in a Master Trust managed by Black Rock Financial Management. At December 31, 2001 and 2000, the Plan's interest in the net assets of the Master Trust was approximately 88.4% and 89.8%, respectively.

 

6


Participants in the CCT consist of the Computer Sciences Corporation Matched Asset Plan, CSC Outsourcing Inc. Hourly Savings Plan, CSC Outsourcing Inc. CUTW Hourly Savings Plan, Computer Sciences Corporation Employee Pension Plan, CSC Outsourcing Inc. Hourly Pension Plan, CSC Outsourcing Inc. CUTW Hourly Pension Plan, CSC/Hughes Retirement Plan, CSR's Range Employees Pension Plan, AEDC Contractors' Retirement Plan-ACS, Computer Sciences Corporation Cash Balance Plan, CSC/Raytheon Retirement Plan, CSC/E-Systems Pension Plan, and the CSC Pension Equity Plan (the "Plans").

Eligibility and Participation

Employees are eligible to participate on specified enrollment dates if they satisfy the Plan's service requirements, are hourly paid employees of the Company and are members of a collective bargaining unit for which participation in this Plan has been provided by negotiated agreement. A rehired eligible employee may receive service credit for his or her previous employment and is eligible to rejoin the Plan on the next enrollment date.

There were approximately 105 and 118 participating employees at December 31, 2001 and 2000, respectively.

Employee and Company Contributions

A participant may authorize before-tax and after-tax contributions to the Plan subject to a maximum level of contributions (a certain percentage of base earnings), as specified by the bargaining agreement covering the employee. Depending on the investment election option the participant elects, the Company will contribute, and forward to the trust fund $0.50 for each $1.00 of the employee matched contribution together with the participant's before-tax and after-tax contribution.

Participants in certain bargaining units who direct 100 percent of their contributions to the Plan's stock fund will receive a monthly matching contribution of $1.00 for each $1.00 of employee matched contributions. Participants under certain bargaining units may contribute additional unmatched contributions at various percentages of base earnings to a maximum specified by the union agreement covering the employee, but only if a participant contributes the maximum matched percentage for which he or she is eligible. The employee's base earnings deferred and contributed to the Trust fund cannot exceed $10,500 for calendar year 2001, 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 $10,500 and any after-tax contributions with matching Company contributions in excess of $30,000, together with income allocable to those ex cess 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.


7


Participants may change their investment elections as of any enrollment date if at least a 30 day prior notice is given. However, participants under certain circumstances may be eligible to change their investment elections within a 30 day window period. Participants may transfer their existing account balances in 25 percent increments. Transfer elections are effective on the first quarterly enrollment date following receipt of a 30 day prior notice from the participant.

Company contributions - In accordance with the provisions of the Plan, the Trustee must promptly invest matching Company contributions paid into the trust fund in the same funds as the participant contributions.

The Plan does not permit employees to rollover a qualified distribution from another plan.

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

Participants are 100 percent vested at all times in their before-tax and after-tax contribution accounts. Each participant has a vested interest in the value of his or her Company matching contributions account and investment earnings thereon equal to 100 percent after completing five full years of service.

The five-year cliff vesting schedule is overridden under extraordinary circumstances as specified in the Plan document, in which the participant (or beneficiary(ies)) immediately becomes fully vested in all employer contributions and earnings, regardless of his or her number of years of service.

Any nonvested balances will be immediately forfeited from the participant's account at termination.

 

8


Distributable Amounts, Withdrawals and Refunds

The entire balance in all accounts is distributed to participants who retire, die, become disabled, are laid-off for four consecutive weeks, are discharged without fault, or who involuntarily enter military service. Participants who terminate for other reasons receive their vested balances. Nonvested balances are forfeited immediately. The amounts distributed during 2001 and 2000 totaled 305,402 and $430,343, respectively.

While still an employee, a participant may make an in-service withdrawal of all or a portion of his or her after-tax contributions, subject to frequency of withdrawal penalties, as well as vested Company matching contributions, plus the earnings on those amounts. Upon at least a 30 day written notice to the Committee, a participant may make a hardship withdrawal of his or her before-tax and after-tax contributions, as well as vested Company matching contributions if the Committee finds, after considering the participant's request, that an adequate financial hardship and resulting need for such amount has been demonstrated by the participant. Both types of withdrawals are subject to certain restrictions as described in the Plan document. No hardship withdrawals were made in 2001 and 2000.

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 net assets available for benefits and changes therein. Actual results could differ from those estimates. The Plan utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.

9


Assets of the Plan

The assets of the Plan are held in a trust with four funds representing the investment options. The investment return in the respective funds is allocated to a participant based on his or her account balance. Contributions to, and payments from, the Plan are specifically identified to the applicable funds 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 CSC Stock Fund receive distributions in certificates for shares of the common stock of the Company.

Valuation of Investment Securities

Investments in common stocks 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 securities are stated at cost which approximates fair value.

Payment of Benefits

Benefits are recorded when paid.

Note 3  Income Tax Status

The Internal Revenue Service has determined and informed the Company by a letter dated June 1, 1995, 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. Since the requirements of Section 401(k) of the Code are satisfied, the following tax consequences result:

10


(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 $10,500 for the 2001 and 2000 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 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 4  Reconciliation of Financial Statements to Form 5500

 

         December 31,        

 

    2001    

 

    2000    

Net assets available for benefits per the financial
   statements

$ 4,265,680

 

$ 4,409,024

Amounts allocated to withdrawing participants

   (12,431)

 

   (154,625)

Net assets available for benefits per Form 5500

$ 4,253,249
========

 

$ 4,254,399
=========

The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:

 

     Year Ended December 31,     

 

    2001    

 

    2000    


Benefits paid to participants per the financial statements

$  305,402

 

$ 430,343

Add: Amounts allocated to withdrawing participants at
  end of year

12,431

 

154,625

Less: Amounts allocated to withdrawing participants at
  start of year

  (154,625)

 

  (77,379)

Benefits paid to participants per the Form 5500

$  163,208
========

 

$ 507,589
========

 

11


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, 2001 but not yet paid as of that date.

Note 5  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 units.

The investment funds are held by the CCT. The fixed income fund investments are in a Master Trust.

The Fixed Income Fund

The Fixed Income Fund represents holdings of units in a core bond investment fund and is managed by Black Rock Financial Management. It 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. At December 31, 2001 and 2000, the Plan's interest in the net assets of the fixed income investment fund was approximately 88.4% and 89.8%, respectively. Investment income and administrative expenses relating to the fixed income investment fund 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,     

 

    2001    

 

    2000    

Investments at fair value:

 

  Core bond fund

$ 2,075,251

$ 2,021,876

  Short-term investments

         1,139

 

                5

$ 2,076,390
=========

 

$ 2,021,881
=========

 

12


Investment income for the Master Trust is as follows:

     December 31,     

    2001     

     2000     

 

Investments income:

  Net appreciation in fair value of Investments

$   10,439

 

$ 99,373

  Interest:

    Corporate bonds

     -     

131,247

    U.S. government securities

     -     

178,808

    Dividends

150,965

451,427

    Other bonds

     -     

36,537

    Short-term investments

         169

   115,487

161,573

1,012,879

Less investment management fees

       -     

  (19,540)

$161,573
=======

$993,339
=======

 

Mellon Capital Government Bond Fund

This fund is invested in bonds issued or guaranteed by the U.S. Government or U.S. Government agencies. The Fund is managed by Mellon Capital with the objective of tracking to the Intermediate Government Bond Index.

Frank Russell Active Equity Fund

The Fund's objective is to capture the long-term premium of equity returns while providing enhanced performance consistency. The Fund is diversified across a wide range of U.S. equity securities. The Active U.S. Equity Fund's benchmark is the Russell 1000 Index, which includes large and intermediate capitalization issues. The Fund was managed by Brinson Partners in the Brinson U.S. Equity Fund at the start of 2000. During 2000 the investment manager was changed to Frank Russell Trust Company. The Fund is invested in the Frank Russell Equity I Fund. It is subadvised by about a dozen managers.

The CSC Stock Fund

Amounts allocated to this investment alternative will be used to purchase shares of Computer Sciences Corporation (CSC) common stock that are held for the benefit of the participant. The performance of this investment depends upon the performance of CSC stock. The Trustee may purchase CSC stock on national securities exchanges or elsewhere.

13


Note 6  Participant Loans

The Plan has a loan provision in place which is available to participants covered by certain bargaining units. The Plan allows participants to borrow from their vested account balances from a minimum of $500 to a maximum 50% of their vested account up to $50,000, 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 approximates fair value, on the Statement of Net Assets Available for Benefits.

The loans 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, 2001 and 2000, net assets available for benefits included benefits of $12,431 and $154,625, respectively, due to participants who have withdrawn from participation in the Plan.

14


Note 8  Investments in Common/Collective Trust

The following table presents investments in the CCT at fair value.

 

     December 31,     

    2001     

     2000     

 

Investments at Fair Value as Determined by
  Quoted Market Price

  Cash

$      771,012

 

$    1,663,729

  Short-term investment fund

31,776,435

25,767,826

  Money market fund

147,720,071

52,066,070

  Bonds and debentures

248,968,019

226,960,951

  CSC Stock Fund

368,094,643

387,876,476

  International portfolio fund

74,180,890

78,637,722

  Investment in registered investment companies

    Active Allocation Fund

114,150,053

124,752,673

    Brinson Balanced Fund

18,446,859

47,094,954

    Brinson Equity Fund

174,715,690

136,809,724

    Mellon Capital Aggr. Bond Fund

20,066,387

20,495,304

    Mellon Corporate Bond Fund

123,016,531

113,952,590

    Mellon EB Enhanced Asset Allocation Fund

113,334

111,631

    Mellon EB Stock Index Fund

23,220,592

26,083,391

    Mellon Equity Fund

235,054,154

246,407,439

    Mellon Equity Completion Fund

97,126,946

96,151,793

    Mellon Gov't Bond Fund

1,008,764

925,195

    Mellon Index Fund

136,632

151,988

    Mellon S&P 500 Index Fund

261,662,033

270,445,105

    Pacific Mutual enhanced Bond Fund

37,783,455

34,743,189

    Black Rock Core Bond Fund

44.600,697

20,244,981

    Vanguard High Yield Bond Fund

8,657,195

5,005,183

    Mellon Balanced 40/60 Fund

19,959,575

11,471,934

    Mellon Balanced 60/40 Fund

38,766,590

28,904,001

 


15


Table of CCT Investments, continued

          December 31,      

 

 

     2001     

 

    2000    

 

 

 

 

 

 

  Mellon Balanced 80/20 Fund

$   52,413,718

 

$   45,206,806

 

  Mellon S&P Select Fund

32,348,755

 

28,616,010

 

  Frank Russell Active Equity Fund

   127,245,652

 

   149,682,268

 

2,302,004,682

 

2,180,228,933

 

Investment at Estimated Fair Value

 

  Greewax Terker Hedge fund

14,165,469

 

13,606,575

 

  Guaranteed Investment Contracts

        211,992

 

        -       

14,377,461

13,606,575

 

Investment at Cost, Which Approximates Fair Value

 

Employee loans

    24,239,304

    24,612,171

 

  Total Common/Collective Trust

$2,340,621,447
===========

$2,218,447,679
===========

 

  Plan's Interest in the Common/Collective Trust

$    4,266,385
===========

$    4,408,339
===========

 

The investment loss of the CCT is summarized as follows:

    Year Ended December 31,    

 

 

     2001    

 

     2000    

 

 

 

 

 

 

Bonds and debentures

$    4,924,608

 

$    7,406,108

 

CSC Stock Fund

(59,424,873)

 

(210,842,008)

 

International portfolio fund

(10,670,885)

 

(5,349,962)

 

Investment income in registered investment companies

 

 

 

 

  Active Allocation Fund

(8,719,155)

 

(1,069,516)

 

  Brinson Balanced Fund

365,788

 

1,120,086

 

  Brinson Equity Fund

5,812,131

 

11,728,034

 

  Mellon Capital Aggr. Bond Fund

418,623

 

893,391

 

  Mellon Corporate Bond Fund

3,672,373

 

2,436,395

 

  Mellon EB Enhanced Asset Allocation Fund

(8,058)

 

399,659

 

  Mellon EB Stock Index Fund

(3,192,318)

 

(2,866,895)

 

  Mellon Equity Fund

(33,622,902)

 

(37,143,023)

 

  Mellon Equity Completion Fund

(9,200,978)

 

(16,553,910)

 

16


Table of CCT investment loss, continued

     Year Ended December 31,     

    2001     

     2000     


 

  Mellon Government Bond Fund

$       23,420

 

$        34,663

  Mellon Index Fund

(20,131)

(22,023)

  Mellon S&P 500 Index Fund

(35,624,927)

(30,029,380)

  Pacific Mutual Enhanced Bond Fund

3,040,266

4,093,726

  BlackRock Core Bond Fund

262,365

755,164

  Vanguard High Yield Bond Fund

(440,694)

(431,210)

  Mellon Balanced 40/60 Fund

70,786

20,627

  Mellon Balanced 60/40 Fund

(1,096,540)

(976,703)

  Mellon Balanced 80/20 Fund

(3,670,567)

(3,451,891)

  Mellon S&P 500 Select Fund

(3,246,340)

(2,469,939)

  Frank Russell Active Equity Fund

(20,799,631)

(24,929,146)

  Geewax Terker Hedge fund

          58,709

         27,567

Net depreciation in fair value of investments

(171,088,930)

(307,220,186)

Dividends

48,455,275

46,592,239

Interest

      3,865,495

     18,616,881

   Common/Collective Trust Loss

$(118,768,160)
===========

$(242,011,066)
===========

   Plan's Interest in the Common/Collective Trust Loss

$         (22,754)
===========

$       (235,100)
===========

 

17


 

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. HOURLY SAVINGS PLAN

 

 

Date: June 26, 2002

By: /s/ LEON J. LEVEL
Leon J. Level
Chairman,
Computer Sciences Corporation
Retirement Plans Committee

 

18


INDEPENDENT AUDITORS' CONSENT

We consent to the incorporation by reference in Registration Statement No. 333-00757 of Computer Sciences Corporation on Form S-8 of our report dated May 31, 2002, appearing in this Annual Report on Form 11-K of the CSC Outsourcing, Inc. Hourly Savings Plan for the year ended December 31, 2001.

 

Los Angeles, California
June 25, 2002

 

E-1


 

2001
Form 5500, Schedule H, Part IV, Line 4i
CSC Outsourcing Inc. Hourly Savings Plan
PN 010
EIN 95-2043126

Computer Sciences Corporation

 

(a)


   

(b) Identity of issue, borrower,
lessor or similar party

                            

(c) Description of investment, including
maturity date, rate of interest, collateral,
par or maturity value
                                     

(d) Cost


       

(e) Current Value

          

 

Mellon Capital Management Corp

Mutual Fund - Government Bond Fund

$     982,180

$   1,008,764

Frank Russell Trust Company

Mutual Fund - Equity #1 Fund

1,155,914

899,231

*

Computer Sciences Corporation

Common Stock

321,145

510,519

*

Computer Sciences Corporation

Employee Loan Fund (7.00%-10.50%, 5/10/02)

7,360

7,360

BlackRock Funds

Core Bond Fund

1,761,595

1,835,410

Mellon Capital Management Corp.

Mellon Bank Temporary Investment Fund

88

88

Bank of New York

BNY Short-Term Money Market Fund

        5,013

        5,013

Short-term investment sub-total

        5,101

        5,101

Total Assets Held for Investment Purposes

$   4,233,295
=========

$   4,266,385
==========

 

*   represents party in interest

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