11-K 1 tmg11k03.htm TMG HOURLY SAVINGS PLAN tmg11k03

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, 2003


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. 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:

 

 

 

Report of Independent Registered Public Accounting Firm..................................

3

 

 

Statements of Net Assets Available for Benefits
  As of December 31, 2003 and 2002 ................................................................

4

 

 

Statements of Changes in Net Assets Available for Benefits
  For the Years Ended December 31, 2003 and 2002 .........................................

5

 

 

Notes to Financial Statements .............................................................................

6

 

 

(b) Supplemental Schedule:

 

 

 

         Form 5500, Schedule H, Part IV, Line 4i - Schedule of Assets
            (Held at End of Year) as of December 31, 2003

S-1

 

 

(c) Exhibit:

 

 

 

         Exhibit 23: Consent of Independent Registered Public Accounting Firm.........

E-1

 

 

         All other schedules required by 29 CFR 2520.103-10 of the Department of Labor's
         Rules and Regulations for Reporting and Disclosure under the Employee Retirement
         Income Security Act of 1974 have been omitted because they are not applicable.

 

2


 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Stockholders of
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, 2003 and 2002, 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 the standards of the Public Company Accounting Oversight Board (United States). 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, 2003 and 2002, 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 of assets held (at end of year) 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 audit of the basic 2003 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
Deloitte & Touche LLP
Los Angeles, California
June 24, 2004

3


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS

       December 31,       

   2003   

   2002   

ASSETS

Investments - at fair value (Notes 1, 2, 5 and 7):

  Short-term investments

$       9,383

$       7,516

  Long-term investments:

    Mellon Capital Government Bond Fund

1,063,103

1,100,655

    Frank Russell Active Equity Fund

731,696

675,341

    Computer Sciences Corporation common stock

414,568

343,432

  Participant loans (Note 6)

16,374

1,705

  Interest in Master Trust (Note 5)

  1,817,506

  1,843,043

Total investments

  4,052,630

  3,971,692

Receivables:

  Accrued income

             21

                6

Total receivables

             21

                6

  Total Assets

  4,052,651

  3,971,698

LIABILITIES

  Accrued expenses

889

893

  Unsettled trades

1,933

  Other

        5,259

       2,176

    Total Liabilities

       6,148

       5,002

NET ASSETS AVAILABLE FOR BENEFITS

$ 4,046,503
=========

$ 3,966,696
=========

 

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,        

     2003     

     2002     

INVESTMENT INCOME (LOSS):

  Net appreciation (depreciation) in fair value of
    investments

$  248,146

$  (315,421)

  Interest

371

185 

  Dividends

51,069

55,739 

  Plan interest in Master Trust investment income

       78,782

       181,567 

    Net investment income (loss)

378,368

(77,930)

CONTRIBUTIONS:

  Participant

80,482

113,683 

  Employer

       36,158

       52,061 

    Total Contributions

116,640

165,744 

DEDUCTIONS:

  Distributions to participants (Note 1)

411,696

382,757 

  Investment management fees

        3,505

         4,041 

    Total Deductions

     415,201

      386,798 

    Net Increase (Decrease)

79,807

(298,984)

Net assets available for benefits at beginning of year

    3,966,696

    4,265,680 

NET ASSETS AVAILABLE FOR BENEFITS AT
  END OF YEAR

$ 4,046,503
=========

$ 3,966,696 
========= 

 

See Notes to Financial Statements

5


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003

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, Retirement Plans and Employee Benefits Plans Committee of Computer Sciences Corporation (the "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") is the trustee of the Plan. 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 as amended ("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. Participants direct the investments of their contributions into various investment options offered by the Plan. 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 assets of the CCT was approximately .13% and .18% 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, 2003 and 2002, the Plan's interest in the net assets of the Master Trust was approximately 89.2% and 89.1%, respectively.

6


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003


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, CSC Pension Equity Plan, Eagle Alliance Employee Pension Plan, DynCorp Capital Accumulation Retirement Plan, and the DynCorp Savings and Retirement 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.

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. 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 are subject to certain limitations of 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

7


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003


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 Code limitations, 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 be applied to reduce future matching Company contributions.

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.

8


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003


Any nonvested portion of the Company matching contributions account will be forfeited upon withdrawal from the Plan. Forfeitures may be applied to reduce future matching contributions by the Company.

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.

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.

Note 2  Summary of Significant Accounting Policies

Basis of Accounting

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.

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.

9


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003

Risks and Uncertainties

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

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. Participant loans are valued at outstanding loan balances, which approximates fair value.

Payment of Benefits

Benefits are recorded when paid. Amounts allocated to accounts of persons who have elected to withdraw from the Plan but have not yet been paid were $45,599 and $71,009 at December 31, 2003 and 2002, respectively.

10


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003


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 Code.

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,     

 

    2003    

 

    2002    

   Net assets available for benefits per the financial statements

$ 4,046,503  

 

$ 3,966,696  

   Amounts allocated to withdrawing participants

      (45,599) 

 

      (71,009) 

   Net assets available for benefits per Form 5500

$ 4,000,904 
========= 

 

$ 3,895,687  
========  

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

 

Year Ended December 31,

 

    2003    

 

    2002    

   Distributions to participants per the financial statements

$ 411,696 

 

$ 382,757 

   Add: Amounts allocated to withdrawing participants at
     end of year

45,599 

 

71,009 

   Less: Amounts allocated to withdrawing participants at
     beginning of year

    (71,009)

 

    (12,431)

   Distributions to participants per the Form 5500

$ 386,286
======= 

 

$ 441,335
======= 

Amounts allocated to withdrawing participants are recorded on the Form 5500 for distributions claims that have been processed and approved for payment prior to December 31, 2003 but not yet paid as of that date.

11


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003


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 following table represents the assets of the Master Trust.

 

 

          December 31,         

 

 

     2003     

 

     2002     

Investments at fair value:

 

 

 

 

Black Rock Core Bond Total Return

 

$ 1,996,249

 

$ 2,068,241

Collective Short Term Investment Fund

 

42,443

 

Accrued income

 

                  6

 

                    

 

 

$ 2,038,698
========

 

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

At December 31, 2003 and 2002, the Plan's interest in the Master Trust was approximately 89.2% and 89.1%, respectively.

Investment income of the Master Trust is as follows:

 

          December 31,         

 

     2003     

 

     2002    

Investment income:

 

 

 

  Net (depreciation) appreciation in fair value of investments

$ (41,957)

 

$ 72,514

  Dividends

130,500

 

132,294

  Interest

           61

 

          51

 

$  88,604
=======

 

$  204,859
========

Investment income and administrative expenses relating to the Master Trust are allocated to participating plans based upon average monthly balances invested by each participating plan.

12


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003

 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%.

Loan terms range from 1-5 years or up to 15 years for purchase of a primary residence. Loans are recorded at outstanding loan balances, which approximates fair value, on the Statements 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  Investments in Common/Collective Trust

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

           December 31,         

     2003   

     2002     

Investments at Fair Value as Determined by

Quoted Market Price

Cash (Overdraft)

$ 2,461,294

$ (7,062,096)

Short-term investment fund

61,847,211

82,631,988 

Money market fund

133,017,884

134,905,932 

Bonds and debentures

364,928,255

313,525,841 

CSC common stock

750,057,291

271,451,187 

International equity portfolios

127,067,765

80,999,745 

Investment in registered investment companies

Active Allocation Fund

113,850,006

89,474,915 

Brinson Balanced Fund

53,799,264

44,971,781 

Brinson U.S. Equity Fund

159,022,807

121,505,104 

Mellon Capital Aggr. Bond Fund

-

19,442,536 

Mellon Corporate Bond Fund

122,096,617

128,727,920 

Mellon EB Enhanced Asset Allocation Fund

72,712

72,130 

(continued)


13


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003

 

Table of CCT Investments, continued

          December 31,         

     2003     

     2002     

Mellon EB Stock Index Fund

-   

18,103,136

Mellon Equity Fund

413,025,228

252,041,662

Mellon Equity Completion Fund

174,398,903

100,432,455

Mellon Government Bond Fund

1,063,103

1,100,655

Mellon Index Fund

124,536

91,480

Mellon S&P 500 Index Fund

297,564,493

214,747,696

Pacific Mutual Enhanced Bond Fund

44,115,319

42,048,116

BlackRock Core Bond Fund

1,996,249

2,068,241

Vanguard High Yield Bond Fund

20,271,765

11,456,659

Mellon Balanced 40/60 Fund

33,263,641

25,197,973

Mellon Balanced 60/40 Fund

57,080,095

40,452,622

Mellon Balanced 80/20 Fund

71,212,974

49,760,056

Mellon S&P 500 Select Fund

44,344,320

29,669,793

Frank Russell Active Equity Fund

    129,963,466

     97,710,335

3,176,645,198

2,165,527,862

Investments at Estimated Fair Value

Geewax Terker Hedge fund

14,304,472

14,208,865

Guaranteed investment contracts

             221,728

          208,402

14,526,200

14,417,267

Investments at Cost, Which Approximates Fair Value

Employee loans

        19,666,768

     20,861,715

 

 

Total Common/Collective Trust Assets

$ 3,210,838,166
===========

 

$ 2,200,806,844
===========

Plan's Interest in CCT Assets

$        4,052,630
===========

$       3,971,692
===========

 

14


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003

 

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

     Year Ended December 31,     

     2003     

     2002    

 

Bonds and debentures

$ (3,203,211)

$    10,015,510 

CSC common stock

225,688,912 

(108,787,494)

International equity portfolios

31,616,897 

(8,622,821)

Active Allocation Fund

22,947,087 

(20,078,067)

Brinson Balanced Fund

8,198,982 

(5,805,752)

Brinson Equity Fund

35,011,373 

(24,647,781)

Mellon Capital Aggr. Bond Fund

(140,146)

690,020 

Mellon Corporate Bond Fund

1,115,632 

3,612,141 

Mellon EB Enhanced Asset Allocation Fund

18,131 

(17,344)

Mellon EB Stock Index Fund

2,612,968 

(5,441,571)

Mellon Equity Fund

81,802,979 

(66,788,887)

Mellon Equity Completion Fund

48,521,154 

(19,801,599)

Mellon Government Bond Fund

(25,508)

41,899 

Mellon Index Fund

25,167 

(34,571)

Mellon S&P 500 Index Fund

60,150,473 

(63,790,246)

Pacific Mutual Enhanced Bond Fund

2,067,203 

4,264,662 

BlackRock Core Bond Fund

(41,957)

72,514 

Vanguard High Yield Bond Fund

1,249,638 

(626,885)

Mellon Balanced 40/60 Fund

3,819,800 

(782,720)

Mellon Balanced 60/40 Fund

8,449,807 

(4,249,948)

Mellon Balanced 80/20 Fund

13,140,177 

(9,206,704)

Mellon S&P 500 Select Fund

8,613,367 

(8,038,147)

Frank Russell Active Equity Fund

29,714,910 

(27,340,693)

Geewax Terker Hedge Fund

            7,248 

          (128,110)

Net depreciation in fair value of investments

581,361,083 

(355,492,594)

Dividends

26,702,043 

35,005,228 

Interest

     24,604,425 

       20,008,593 

Common/Collective Trust Income (Loss)

$ 632,667,551
========== 

$ (300,478,773)
===========

Plan's Interest in CCT Income (Loss)

$        378,368
========== 

$          (77,930)
===========

 

15


CSC OUTSOURCING INC. HOURLY SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
For the Two Years Ended December 21, 2003


Note 8  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, 2003 and 2002, the Plan held 9,373 and 9,969 shares, respectively, of common stock of the Computer Sciences Corporation, the sponsoring employer, with a cost basis of $298,554 and $313,730, respectively.

Note 9  Plan Amendment

Effective January 1, 2003, the Plan was amended to charge the vesting schedule to 0% with less than three years of service and 100% after three years of service.

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. HOURLY SAVINGS PLAN

 

 

 

 

Date: June 28, 2004

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

 

17


2003
Form 5500, Schedule H, Part IV, Line 4i
CSC Outsourcing Inc. Hourly Savings Plan
PN 010
Computer Sciences Corporation
EIN 95-2043126

SCHEDULE OF ASSETS (HELD AT END OF YEAR)

 

(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

$ 1,025,667

$ 1,063,103

Frank Russell Trust Company

Mutual Fund - Equity #1 Fund

907,658

731,696

*

Computer Sciences Corporation

Common Stock

298,554

414,568

Computer Sciences Corporation

Employee Loan Fund (5.00%-10.50%,
  maturing 4/7/06 to 8/22/08)

16,374

16,374

CSC Defined Contribution
  Fixed Income Black Rock Pool

 

 

 

Master Trust - Core Bond Fund

1,764,656

1,817,506

Mellon Capital Management Corp.

Mellon Bank Temporary Investment Fund

2

2

*

Bank of New York

BNY Short-Term Money Market Fund

9,381

9,381

Short-term investment sub-total

9,383

9,383

Total Assets Held for Investment Purposes

$ 4,022,292

$ 4,052,630

*

 

represents party in interest

 

 

 

 

 

 

S-1


 

Exhibit 23

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

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 June 11, 2004, appearing in this Annual Report on Form 11-K of the CSC Outsourcing, Inc. Hourly Savings Plan for the year ended December 31, 2003.

 

/s/ DELOITTE & TOUCHE LLP
Deloitte & Touche LLP
Los Angeles, California
June 28, 2004

 

 

E-1