11-K 1 cutw11k02.htm CUTW HOURLY SAVINGS PLAN cutw hsp fy02

 

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, 2002

o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from to
 

Commission file number: 1-4850 

     A.  Full title of plan and the address of the plan, if different from that of the issuer named below: CSC Outsourcing Inc. CUTW Hourly Savings Plan

     B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Computer Sciences Corporation
2100 East Grand Avenue
El Segundo, CA 90245

 


TABLE OF CONTENTS

Description

 Page

 

 

Statements of Net Assets Available for Benefits
  As of December 31, 2002 and 2001.....................................................................

3

Statements of Changes in Net Assets Available for Benefits
  For the Years Ended December 31, 2002 and 2001

4

Notes to the Financial Statements

5

Certification Under Section 906 of the Sarbanes-Oxley Act of 2002

E-1

 


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS

 

          December 31       

     2002    

     2001    

Assets

Investments (Notes 2, 5, and 8):

   Short-term

$     8,454

$     6,407

   Long-term

     Mellon Balanced Fund

72,130

113,334

     Frank Russell Active Equity Fund

48,012

196,751

     Mellon Stock Index Fund

91,480

136,632

     Computer Sciences Corporation common stock

281,457

655,059

     Participant Loans (Note 6)

11,986

30,191

     Interest in Master Trust (Note 5)

    225,199

    240,980

Total Investments

    738,718

  1,379,354


Receivables:

   Participant Contributions

-  

2,939

   Employer Contributions

-  

1,000

   Other Receivables

    35,115

       1,619

Total Receivables

    35,115

       5,558

   Total Assets

   773,833

  1,384,912

Liabilities

   Accounts Payable

     3,984

     22,441

   Total Liabilities

     3,984

     22,441

Net Assets Available for Benefits

$ 769,849
=======

$ 1,362,471
========

 

 

 

See Notes to Financial Statements

3


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS

 

 

 

 For the Year
 Ended
 December 31,      2002  

 

 For the Year
 Ended
 December 31,      2001  

ADDITIONS

 

 

 

 

Investment Income (Loss):

 

 

 

 

Net depreciation in fair value of investments (Note 8)

 

$ (291,718)

 

$ (164,278)

Interest

 

217 

 

288 

Dividends

 

5,698 

 

6,182 

Plan interest in Master Trust investment income

 

   23,293 

 

   17,920 

   Net Investment Loss

 

(262,510)

 

(139,888)

 

 

 

 

 

Contributions:

 

 

 

 

 Participant

 

37,242 

 

94,153 

 Employer

 

   78,105 

 

   44,469 

 

 

  115,347 

 

  138,622 

  Total Reductions

 

(147,163)

 

(1,266)

 

 

 

 

 

DEDUCTIONS

 

 

 

 

Distributions to Participants (Notes 1 and 7)

 

444,416 

 

32,288 

Investment management fees

 

    1,043 

 

    1,701 

   Total Deductions

 

 445,459 

 

  33,989 

   Net Decrease

 

 (592,622)

 

 (35,255)

 

 

 

 

 

Net Assets Available for Benefits:

 

 

 

 

 Beginning of Year

 

1,362,471

 

1,397,726

 End of Year

 

$ 769,849
========

 

$ 1,362,471
=========

 

 

 

See Notes to Financial Statements
4


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

 

Note 1     Description of the Plan

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

The Plan became effective August 5, 1995, as a result of the Company acquiring certain employees of the Southern New England Telephone Company. The Plan is administered by a Committee consisting of four members (the "Committee) who are appointed by the Board of Directors of the Company and serve without compensation, being reimbursed by the Company for all expenditures incurred in the discharge of their duties as members of the Committee. The Committee has the power to interpret, construe and administer the Plan and to decide any dispute which may arise under the Plan. The Bank of New York (the "Trustee"), administers the Trust pursuant to a Trust Agreement entered into with the Company. All administrative expenses incurred for services rendered to the Plan shall be paid from the Trust to the extent not paid by the Company.

The Plan is a voluntary, contributory, defined contribution plan and is intended to satisfy the requirements of Section 401(a) and 401(k) of the Internal Revenue Code (the "Code"). It is also subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA").

Plan Termination Although it has not expressed any intention to do so, 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, 2002 and 2001, the Plan's interest in the net assets of the CCT was approximately .03% and .06%, respectively. 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, 2002 and 2001, the Plan's interest in the net assets of the Master Trust was approximately 10.9% and 11.6%, respectively.

5


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

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 eligibility 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 is eligible to rejoin the Plan on the next enrollment date.

There were approximately 36 and 48 participating employees at December 31, 2002 and 2001, respectively.

Participant and Company Contributions

A participant may authorize before-tax and after-tax contributions to the Plan subject to a maximum level of contributions (a certain percentage of base earnings), as specified by the bargaining agreement covering the employee. The Company will contribute, and forward to the Trust fund 66 2/3% of the first 1% to 6% for the employee matched contribution together with the participant's before-tax and after-tax contribution.

The employee base earnings deferred and contributed to the Trust fund cannot exceed $11,000 and $10,500 for calendar years 2002 and 2001, respectively, the maximum allowable under the Code. Effective January 1, 2002, under the Economic Growth and Tax relief Reconciliation Act of 2001 (EGTRRA), the Plan permits participants age 50 and over, to make additional "catch-up" contributions in excess of the statutory limit. For 2002, such "catch up" contributions could be made up to $1,000 a year, then they are increased each year by $1,000 until $5,000 in 2006, and then indexed in $500 increments. 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 $11,000 and $10,500 for 2002 and 2001, respectively, and any after-tax contributions with matching Company contributions in excess of $30,000, together with income allocable to those excess contributions will be returned to a participant. Any matching Company contributions attributable to any excess contribution, and income allocable thereto, will either be returned to the Company or applied to reduce future matching Company contributions.

6


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

Participant Accounts

Each participant's account is credited with the participant's contribution and allocations of the Company's contribution and Plan earnings, and is charged with an allocation of investment management fees. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.

Vesting of Participants' Interests/Forfeitures

Participants are 100 percent vested at all times in their before-tax, after-tax contribution and Company matching accounts.

Distributable Amounts, Withdrawals and Refunds

The entire balance in all accounts for participants who retire, die, become disabled, or are discharged is distributed according to the provisions of the Plan.

While still an employee, a participant may make an in-service withdrawal of all or a part of the vested portion of his or her accounts attributable to their contributions, as well as vested Company matching contributions, plus the earnings on those amounts subject to the provisions of the Plan. Upon written notice to the Committee, a participant may make a hardship withdrawal of his or her before-tax and after-tax contributions, as well as Company matching contributions if the Committee finds, after considering the participant's request, that an adequate financial hardship and resulting need for such amount has been demonstrated by the participant. A participant may request a hardship withdrawal only if he or she first takes a loan of any available monies in the Plan. Both types of withdrawals are subject to certain restrictions as described in the Plan document.

Note 2     Summary of Significant Accounting Policies

The accounting financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain reclassifications have been made to the prior year's financial statements to conform to 2002 presentation.

7


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

Assets of the Plan

The assets of the Plan are held in a trust with five funds, which represent 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.

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.

Risk and Uncertainties

The Plan utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit risk, 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.

Security Transactions

Security transactions are accounted for on a trade date basis. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis.

Participants in the Stock Fund may elect to receive distributions in certificates for shares of the common stock of the Company.

Valuation of Investment Securities

Investments in common stocks and 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 month 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.

8


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

Note 3     Income Tax Status

The Internal Revenue Service has determined and informed the Company by a letter dated May 13, 2003, 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.

Note 4     Reconciliation of Financial Statements to Form 5500

 

         December 31,        

 

    2002    

 

    2001    

 

 

 

 

Net assets available for benefits per the financial statements

$  769,849 

 

$  1,362,471 

Amounts allocated to withdrawing participants

     (5,538)

 

        (663)

Net assets available for benefits per Form 5500

$  764,311 
=========

 

$  1,361,808 
=========

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

 

 Year Ended December 31, 

 

    2002    

 

   2001   

 

 

 

 

Benefits paid to participants per the financial statements

$ 444,416 

$ 32,288 

Add: Amounts allocated to withdrawing participants at
  end of year

5,538 

663 

Less: Amounts allocated to withdrawing participants at
  start of year

    (663)

     (53)

Benefits paid to participants per the Form 5500

$ 449,291 
========

$ 32,898 
=======

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, 2002 but not paid as of that date.

Note 5     Investment Funds

Participant contributions - Subject to rules the bargaining unit has adopted, each participant has the right to designate one or more of the following investment funds established by the Committee for the investment of his or her compensation deferral contributions and after-tax contributions in percentages determined by the bargaining unit.

9


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

 

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 the Black Rock Core Bond Total Return which is managed by Black Rock Financial Management and held in the Computers Sciences Corporation Defined Contribution Fixed Income Black Rock Pool ("Master Trust"). 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, 2002 and 2001, the Plan's interest in the net assets of the fixed income investment fund was approximately 10.9% and 11.6%, 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,      

 

   2002    

 

   2001    

Investments at fair value:

   Black Rock Core Bond Total Return

$ 2,068,241

 

$ 2,075,251

   Short-term investments

         -   

 

        1,139

 

$ 2,068,241
=========

 

$ 2,076,390
=========

Investment income for the Master Trust is as follows:

         December 31,      

 

   2002    

 

   2001    

Investment income:

 

 

 

   Net appreciation in fair value of investments

$ 72,514

 

$ 10,439

   Dividends

132,294

 

150,965

   Interest

          51

 

         169

 

$ 204,859
=======

 

$ 161,573
=======

 

10


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002


The Mellon Balanced Fund

The Fund actively allocates assets among stocks, bonds, and cash equivalents. A balanced benchmark is a static mix of 65 percent U.S. equities, 30 percent U.S. fixed income securities and 5 percent cash. The Fund is invested in Mellon Capital's Enhanced Asset Allocation Fund. The Fund uses relative valuations of the assets classes to decide whether to overweight or underweight asset classes relative to the balanced benchmark. It can invest in individual securities and/or futures and options.

The 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 is invested in the Frank Russell Equity I Fund. It is subadvised by about a dozen managers.

The Mellon Stock Index Fund

The Fund is managed by Mellon Capital Management. The objective of the Fund is to modestly exceed the performance of the Standard & Poor's 500 Stock Index. The Stock Index Fund either invests in a stock portfolio designed to track the performance of the S&P Stock Index and/or creates a synthetic S&P 500 portfolio using (unleveraged) financial futures and options. Assets used as collateral for futures/options positions are comprised of various market or debt instruments.

The CSC Stock Fund

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

In accordance with rules established by the Committee, participants may change their investment elections as of the first day of the first payroll period in the month, if filed within the prescribed time, by delivering an election form to the Company. Participants may transfer their existing account balances in 1 percent increments. Transfer elections are effective as of the first day of the month, or the second month if the participant's election form is not filed within the time prescribed by the Committee, following the month in which the participant files his election form with the Company.

 

11


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

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

Note 6     Participant Loans

The Plan has a loan provision in place which is available to participants covered by the bargaining unit.

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, 2002 and 2001, net assets available for benefits included benefits of $5,538 and $663, respectively, due to participants who have elected to withdraw from the Plan but have not yet been paid.

12


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

Note 8     Investments in Common/Collective Trust

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

          December 31,          

     2002     

     2001     

Investments at Fair Value as Determined by

Quoted Market Price

Cash

$ (7,062,096)

$ 771,012

Short-term investment fund

82,631,988 

31,776,435

Money market fund

134,905,932 

147,720,071

Bonds and debentures

313,525,841 

248,968,019

CSC Stock Fund

271,451,187 

368,094,643

International portfolio fund

80,999,745 

74,180,890

Investment in registered investment companies

Active Allocation Fund

89,474,915 

114,150,053

Brinson Balanced Fund

44,971,781 

49,406,885

Brinson Equity Fund

121,505,104 

143,755,664

Mellon Capital Aggr. Bond Fund

19,442,536 

20,066,387

Mellon Corporate Bond Fund

128,727,920 

123,016,531

Mellon EB Enhanced Asset Allocation Fund

72,130 

113,334

Mellon EB Stock Index Fund

18,103,136 

23,220,592

Mellon Equity Fund

252,041,662 

235,054,154

Mellon Equity Completion Fund

100,432,455 

97,126,946

Mellon Gov't Bond Fund

1,100,655 

1,008,764

Mellon Index Fund

91,480 

136,632

Mellon S&P 500 Index Fund

214,747,696 

261,662,033

Pacific Mutual Enhanced Bond Fund

42,048,116 

37,783,455

BlackRock Core Bond Fund

2,068,241 

44,600,697

Vanguard High Yield Bond Fund

11,456,659 

8,657,195

Mellon Balanced 40/60 Fund

25,197,973 

19,959,575

Mellon Balanced 60/40 Fund

40,452,622 

38,766,590

Mellon Balanced 80/20 Fund

49,760,056 

52,413,718

Mellon S&P 500 Select Fund

29,669,793 

32,348,755

(continued)

 

13


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

Table of CCT Investments, continued

             December 31,           

      2002     

     2001     

Russell Equity I Fund

$    97,710,335

$    127,245,652

2,165,527,862

2,302,004,682

Investment at Estimated Fair Value

  Geewax Terker Hedge Fund

14,208,865

14,165,469

  Guaranteed Investment Contracts

         208,402

      211,992

14,417,267

14,377,461

Investment at Cost, Which Approximates Fair Value

  Employee loans

       20,861,715

       23,765,491

  Total Common/Collective Trust

$ 2,200,806,844
============

$ 2,340,147,634
============

Plan's Interest in the Common/Collective Trust
 investments

$       738,718
============

$       1,379,354
============

 

The investment income (loss) of the CCT is summarized as follows:

    Year Ended December 31,    

      2001     

     2000     


  Bonds and debentures

$   10,015,510 

$   4,924,608 

  CSC Stock Fund

(108,787,494)

(59,424,873)

  International portfolio fund

(8,622,821)

(10,670,885)

  Investment income in registered investment companies

   Active Allocation Fund

(20,078,067)

(8,719,154)

   Brinson Balanced Fund

(5,805,752)

1,285,968 

   Brinson Equity Fund

(24,647,781)

4,891,950 

   Mellon Capital Aggr. Bond Fund

690,020 

418,623 

   Mellon Corporate Bond Fund

3,612,141 

3,672,373 

   Mellon EB Enhanced Asset Allocation Fund

(17,344)

(8,058)

   Mellon EB Stock Index Fund

(5,441,571)

(3,192,318)

   Mellon Equity Fund

(66,788,887)

(33,622,902)

   Mellon Equity Completion Fund

(19,801,599)

(9,200,978)

   Mellon Government Bond Fund

41,899 

23,420 

(continued)

Table of CCT investment income (loss), continued

 

14


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

    Year Ended December 31,     

      2002    

    2001    


   Mellon Index Fund

$        (34,571)

$       (20,131)

   Mellon S&P 500 Index Fund

(63,790,246)

(35,624,927)

   Pacific Mutual Enhanced Bond Fund

4,264,662 

3,040,266 

   BlackRock Core Bond Fund

72,514 

262,365 

   Vanguard High Yield Bond Fund

(626,885)

(440,694)

   Mellon Balanced 40/60 Fund

(782,720)

70,786 

   Mellon Balanced 60/40 Fund

(4,249,948)

(1,096,540)

   Mellon Balanced 80/20 Fund

(9,206,704)

(3,670,567)

   Mellon S&P 500 Select Fund

(8,038,147)

(3,246,340)

   Frank Russell Active Equity Fund

(27,340,693)

(20,799,631)

   Geewax Terker Hedge fund

     (128,110)

           58,709 

Net depreciation in fair value of investments

(355,492,594)

(171,088,930)

Dividends

35,005,228 

48,455,275 

Interest

     20,008,593 

       5,947,341 

   Common/Collective Trust Loss

$ (300,478,773)
===========

$ (116,686,314)
===========

   Plan's Interest in the Common/Collective Trust Loss

$     (262,510)
===========

$      (139,888)
============

Note 9     Related-Party Transactions

Certain short-term investment funds are managed by The Bank of New York. The Bank of New York is the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions. The fees associated with these short-term investment funds were paid by the Company.

At December 31, 2002 and 2001, the Plan held 8,170 and 13,374 shares, respectively, of common stock of the Computer Sciences Corporation, the sponsoring employer, with a cost basis of $363,314 and $599,293, respectively.

15


CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 31, 2002

 

Note 10     Nonparticipant-Directed Investments

Information about the net assets and the significant components of the changes in net assets relating to the nonparticipant-directed investments is as follows as of December 31, 2002 and 2001, and for the two years ended December 31, 2002:

     2002     

    2001     

Net assets:

CSC common stock

$ 281,457 

$ 655,059 

Short-term investments

3,673 

3,202 

Accrued income

Transfers to participant-directed
  investments (payable) receivable

(320)

1,867 

Net receivable (payable)

     28,253 

     (1,409)

CSC Stock Fund

313,065 

658,723 


Changes in net assets:

Net depreciation in fair value of investments

(200,420)

(104,677)

Interest income

120 

80 

Employer contributions

28,939 

37,417 

Participant contributions

36,717 

38,947 

Transfers to participant-directed investments

5,676 

26,050 

Benefits paid to participants

(216,690)

(16,610)


Net Change

(345,658)

(18,793)


CSC Stock fund - beginning of the year

   658,723 

   677,516 

CSC Stock fund - end of the year

$  313,065 
======= 

$  658,723 
======= 

 

 

16


SIGNATURES

 

The Plan. Pursuant to the requirements of the Securities Act of 1934, the Computer Sciences Corporation Retirement Plans Committee has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

CSC OUTSOURCING INC. CUTW HOURLY SAVINGS PLAN

 

 

Date: June 25, 2003

By: /s/ LEON J. LEVEL            
Chairman,
Computer Sciences Corporation
Retirements Plans Committee