-----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, SgWHQeX/I+5n4hn0VoOCc7hXhNY5po3sFGX3AEFNDHqCCp+LI2is7xpg/KA0EjXR d414oAu1ofWKRGZIssz60A== 0000023082-97-000005.txt : 19970321 0000023082-97-000005.hdr.sgml : 19970321 ACCESSION NUMBER: 0000023082-97-000005 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19970320 SROS: NYSE SROS: PSE 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: 0331 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-04850 FILM NUMBER: 97559857 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 10-K/A 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ____________________________ FORM 10-K/A Amendment No. 2 to Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended March 29, 1996 Commission File No. 1-4850 COMPUTER SCIENCES CORPORATION Incorporated in the State of Nevada Employer Identification No. 95-2043126 2100 East Grand Avenue El Segundo, California 90245 Telephone (310) 615-0311 ________________________ Securities registered pursuant to Section 12(b) of the Act: Exchanges on Which Registered ___________________________________ __________________________________ Common Stock, $1.00 par value per share New York Stock Exchange Preferred Stock Purchase Rights Pacific Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None The registrant hereby amends Item 14(a) of its fiscal year 1996 Annual Report on Form 10-K to include Exhibit 99.3 -- the Annual Report on Form 11-K of the CSC Credit Services, Inc. Employee Savings Plan. PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K Item 14(a) The following documents are filed as part of this report: 1 and 2. Financial Statements and Financial Statement Schedules: These documents are listed in the Index to Consolidated Financial Statements and Financial Statement Schedules (Item 8). 3. Exhibits:
Page ---- 2.1 Agreement and Plan of Merger dated as of April 28, 1996 by and among the Registrant, The Continuum Company, Inc. and Continental Acquisition, Inc. (q) 3.1 Restated Articles of Incorporation (d) 3.2 Amendment to Restated Articles of Incorporation (m) 3.3 By-Laws, dated and effective January 31, 1993 (h) 10.1 Annual Management Incentive Plan* (a) 10.2 1978 Stock Option Plan* (h) 10.3 Amendment Nos. 1 and 2 to the 1978 Stock Option Plan* (h) 10.4 Amendment No. 3 to the 1978 Stock Option Plan* (c) 10.5 1980 Stock Option Plan* (h) 10.6 Amendment Nos. 1, 2, 3 and 4 to the 1980 Stock Option Plan* (b) 10.7 Amendment No. 5 to the 1980 Stock Option Plan* (c) 10.8 1984 Stock Option Plan* (j) 10.9 Amendment No. 1 to the 1984 Stock Option Plan* (b) 10.10 Amendment No. 2 to the 1984 Stock Option Plan* (c) 10.11 1987 Stock Incentive Plan* (c) 10.12 Schedule to the 1987 Stock Incentive Plan for United Kingdom personnel* (c) 10.13 1990 Stock Incentive Plan* (k) 10.14 1992 Stock Incentive Plan* (m) 10.15 Amendment No. 1 to the 1992 Stock Incentive Plan* (h) 10.16 1995 Stock Incentive Plan* (o) 10.17 Deferred Compensation Plan, amended and restated effective February 9, 1996* (i) 10.18 Restated Supplemental Executive Retirement Plan, effective August 14, 1995* (o) 10.19 Form of Indemnification Agreement for Directors (e) 10.20 Form of Indemnification Agreement for Officers (h) 10.21 Information Technology Services Agreements with General Dynamics Corporation, dated as of November 4, 1991 (l) 10.22 $100 million Credit Agreement dated as of September 15, 1994 (h) 10.23 $150 million Credit Agreement dated as of September 15, 1994 (h) 10.24 $350 million Credit Agreement dated as of September 6, 1995 (o) 10.25 $100 million Credit Agreement dated as of January 3, 1995 (h) 10.26 Amended and Restated Rights Agreement, effective October 30, 1995 (o) 11 Calculation of Primary and Fully Diluted Earnings Per Share (i) 21 Significant Active Subsidiaries and Affiliates of the Registrant (i) 23 Independent Auditors' Consent 27 Article 5 Financial Data Schedule (i) 99.1 Annual Report on Form 11-K for the Matched Asset Plan of Computer Sciences Corporation for the fiscal year ended December 31, 1995 (i) 99.2 Annual Report on Form 11-K for the Hourly Savings Plan of CSC Outsourcing, Inc. for the fiscal year ended December 31, 1995 (i) 99.3 Annual Report on Form 11-K for the Employee Savings Plan of CSC Credit Services, Inc. for the fiscal year ended September 30, 1996 99.4 Annual Report on Form 11-K for the CUTW Hourly Savings Plan of CSC Outsourcing, Inc. for the fiscal year ended December 31, 1995 (i) 99.5 Annual Report on Form 11-K for the Employee Savings Plan of CSC Credit Services, Inc. for the period ended November 30, 1996 (to be filed at a later date) *Management contract or compensatory plan or agreement
Notes to Exhibit Index: (a)-(i) These exhibits are incorporated herein by reference to the Company's Form 10-K, Commission File No. 1-4850, as amended to the date hereof, for the fiscal year ended on the date indicated below: (a) March 30, 1984 (e) April 3, 1992 (b) April 3, 1987 (f) April 2, 1993 (c) April 1, 1988 (g) April 1, 1994 (d) March 31, 1989 (h) March 31, 1995 (i) March 29, 1996 (j) Incorporated herein by reference to the Company's Form S-8 filed on August 17, 1984. (k) Incorporated herein by reference to the Company's Form S-8 filed on August 15, 1990. (l) Incorporated herein by reference to the Company's Form S-8 filed on November 4, 1991. (m) Incorporated herein by reference to the Company's Proxy Statement for its August 10, 1992 Annual Meeting of Stockholders. (n) Incorporated herein by reference to the Company's Form S-8 filed on August 12, 1992 (o) Incorporated herein by reference to the Company's Form S-8 filed on November 13, 1995 (p) Incorporated herein by reference to the Form 11-K filed on February 6, 1996 (q) Incorporated herein by reference to the Company's Form S-8 filed on May 2, 1996 SIGNATURES Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. COMPUTER SCIENCES CORPORATION Dated: March 20, 1997 By:/s/ Denis M. Crane ------------------------ Denis M. Crane, Vice President and Controller EXHIBIT INDEX
Page ---- 2.1 Agreement and Plan of Merger dated as of April 28, 1996 by and among the Registrant, The Continuum Company, Inc. and Continental Acquisition, Inc. (q) 3.1 Restated Articles of Incorporation (d) 3.2 Amendment to Restated Articles of Incorporation (m) 3.3 By-Laws, dated and effective January 31, 1993 (h) 10.1 Annual Management Incentive Plan* (a) 10.2 1978 Stock Option Plan* (h) 10.3 Amendment Nos. 1 and 2 to the 1978 Stock Option Plan* (h) 10.4 Amendment No. 3 to the 1978 Stock Option Plan* (c) 10.5 1980 Stock Option Plan* (h) 10.6 Amendment Nos. 1, 2, 3 and 4 to the 1980 Stock Option Plan* (b) 10.7 Amendment No. 5 to the 1980 Stock Option Plan* (c) 10.8 1984 Stock Option Plan* (j) 10.9 Amendment No. 1 to the 1984 Stock Option Plan* (b) 10.10 Amendment No. 2 to the 1984 Stock Option Plan* (c) 10.11 1987 Stock Incentive Plan* (c) 10.12 Schedule to the 1987 Stock Incentive Plan for United Kingdom personnel* (c) 10.13 1990 Stock Incentive Plan* (k) 10.14 1992 Stock Incentive Plan* (m) 10.15 Amendment No. 1 to the 1992 Stock Incentive Plan* (h) 10.16 1995 Stock Incentive Plan* (o) 10.17 Deferred Compensation Plan, amended and restated effective February 9, 1996* (i) 10.18 Restated Supplemental Executive Retirement Plan, effective August 14, 1995* (o) 10.19 Form of Indemnification Agreement for Directors (e) 10.20 Form of Indemnification Agreement for Officers (h) 10.21 Information Technology Services Agreements with General Dynamics Corporation, dated as of November 4, 1991 (l) 10.22 $100 million Credit Agreement dated as of September 15, 1994 (h) 10.23 $150 million Credit Agreement dated as of September 15, 1994 (h) 10.24 $350 million Credit Agreement dated as of September 6, 1995 (o) 10.25 $100 million Credit Agreement dated as of January 3, 1995 (h) 10.26 Amended and Restated Rights Agreement, effective October 30, 1995 (o) 11 Calculation of Primary and Fully Diluted Earnings Per Share (i) 21 Significant Active Subsidiaries and Affiliates of the Registrant (i) 23 Independent Auditors' Consent 27 Article 5 Financial Data Schedule (i) 99.1 Annual Report on Form 11-K for the Matched Asset Plan of Computer Sciences Corporation for the fiscal year ended December 31, 1995 (i) 99.2 Annual Report on Form 11-K for the Hourly Savings Plan of CSC Outsourcing, Inc. for the fiscal year ended December 31, 1995 (i) 99.3 Annual Report on Form 11-K for the Employee Savings Plan of CSC Credit Services, Inc. for the fiscal year ended September 30, 1996 99.4 Annual Report on Form 11-K for the CUTW Hourly Savings Plan of CSC Outsourcing, Inc. for the fiscal year ended December 31, 1995 (i) 99.5 Annual Report on Form 11-K for the Employee Savings Plan of CSC Credit Services, Inc. for the period ended November 30, 1996 (to be filed at a later date) *Management contract or compensatory plan or agreement
Notes to Exhibit Index: (a)-(i) These exhibits are incorporated herein by reference to the Company's Form 10-K, Commission File No. 1-4850, as amended to the date hereof, for the fiscal year ended on the date indicated below: (a) March 30, 1984 (e) April 3, 1992 (b) April 3, 1987 (f) April 2, 1993 (c) April 1, 1988 (g) April 1, 1994 (d) March 31, 1989 (h) March 31, 1995 (i) March 29, 1996 (j) Incorporated herein by reference to the Company's Form S-8 filed on August 17, 1984. (k) Incorporated herein by reference to the Company's Form S-8 filed on August 15, 1990. (l) Incorporated herein by reference to the Company's Form S-8 filed on November 4, 1991. (m) Incorporated herein by reference to the Company's Proxy Statement for its August 10, 1992 Annual Meeting of Stockholders. (n) Incorporated herein by reference to the Company's Form S-8 filed on August 12, 1992 (o) Incorporated herein by reference to the Company's Form S-8 filed on November 13, 1995 (p) Incorporated herein by reference to the Form 11-K filed on February 6, 1996 (q) Incorporated herein by reference to the Company's Form S-8 filed on May 2, 1996 EXHIBIT 99.3 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended: September 30, 1996 OR [ ] 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 the plan and the address of the plan, if different from that of the issuer named below: CSC Credit Services, Inc. Employee Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Computer Sciences Corporation 2100 East Grand Avenue El Segundo, California 90245 CSC Credit Services, Inc. Employee Savings Plan Financial Statements and Supplemental Schedules for the Years Ended September 30, 1996 and 1995 and Independent Auditors' Report INDEPENDENT AUDITORS' REPORT To the Plan Committee of CSC Credit Services, Inc. Employee Savings Plan: We have audited the accompanying statements of net assets available for benefits of CSC Credit Services, Inc. Employee Savings Plan (the "Plan") as of September 30, 1996 and 1995, 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 generally accepted auditing standards. 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 September 30, 1996 and 1995, and the changes in net assets available for benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of (1) assets held for investment as of September 30, 1996 and (2) reportable transactions for the year ended September 30, 1996 are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The Fund Information in the statement of changes in net assets available for benefits as of September 30, 1996 and 1995, included in Note 10 to the accompanying financial statements, is presented for purposes of additional analysis rather than to present the changes in net assets available for plan benefits of the individual funds. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. DELOITTE & TOUCHE LLP December 20, 1996 CSC CREDIT SERVICES, INC. EMPLOYEE SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, SEPTEMBER 30, 1996 AND 1995
ASSETS 1996 1995 INVESTMENTS, at fair values: Trustee Short-Term Cash Management Fund $ 410,798 $ 47,737 Brinson Trust Company U.S.-Cash Management Fund 57,108 77 Computer Sciences Corporation - common stock (48,882 and 47,092 shares, respectively) 3,757,804 3,031,548 Vanguard Group - Short-Term Bond Fund (111,659 and 44,003 shares, respectively) 1,193,637 473,470 Vanguard Group - Windsor Fund Incorporated II (283,243 and 243,898 shares, respectively) 6,596,726 4,997,471 Brinson Trust Company U.S. (7,430 and 5,998 units, respectively) 1,102,057 920,580 Fixed-income contracts: Aurora National Life Assurance Company 239,917 General American Life Insurance Company 1,117,193 1,030,525 Hartford Life Insurance Company 1,115,930 1,029,361 Protective Life Insurance Company 434,465 804,642 Provident National Assurance Company 906,258 1,679,121 Prudential Insurance Company of America 726,870 687,289 RECEIVABLES: Contributions 141,984 119,340 Interest 82,819 35,699 ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $17,643,649 $15,096,777 =========== =========== See accompanying notes to financial statements.
CSC CREDIT SERVICES, INC. EMPLOYEE SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEARS ENDED SEPTEMBER 30, 1996 AND 1995
1996 1995 INVESTMENT INCOME: Net appreciation in fair value of investments $ 1,396,851 $ 1,939,691 Interest and dividends 799,014 668,871 ----------- ----------- Total 2,195,865 2,608,562 ----------- ----------- CONTRIBUTIONS: Employer 577,934 461,021 Employee 1,608,000 1,432,790 ----------- ----------- Total 2,185,934 1,893,811 ----------- ----------- Total additions 4,381,799 4,502,373 BENEFITS PAID TO PARTICIPANTS (1,834,927) (1,590,576) ----------- ----------- INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS 2,546,872 2,911,797 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 15,096,777 12,184,980 ----------- ----------- End of year $17,643,649 $15,096,777 =========== =========== See accompanying notes to financial statements.
CSC CREDIT SERVICES, INC. EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 1996 AND 1995 1. DESCRIPTION OF PLAN The following description of the CSC Credit Services, Inc. Employee Savings Plan (the "Plan") provides only general information. Participants should refer to the plan documents for a more complete description of the Plan's provisions. Under the provisions of the Plan document, CSC Credit Services, Inc. (the "Company") reserves the right to discontinue its contributions and terminate the plan in whole or in part at any time subject to the provisions of ERISA. During 1996 the Board of Directors of the Company unanimously approved the termination and merger of the Plan, in its entirety, effective November 30, 1996. All participants became 100% vested in their accounts, and all assets of the Plan were transferred into the Computer Sciences Corporation Matched Asset Plan (the "CSC MAP"). The Plan filed and subsequently received a favorable letter of determination from the IRS on November 30, 1996 affirming that the termination and merger of the Plan will not adversely effect the qualified status of the Trust created for the Plan. General - Effective October 1, 1987, Associated Credit Services, Inc., established the Associated Credit Services, Inc. Employee Savings Plan. The Plan's name was subsequently changed to the CSC Credit Services, Inc. Employee Savings Plan. The Plan is a defined contribution savings plan for employees of the Company. Employees are eligible to participate after completing an employment year consisting of at least 1,000 hours of service. The Plan is subject to provisions of the Employee Retirement Income Security Act of 1974 ("ERISA") and its subsequent amendments and is considered a "cash or deferred arrangement" under Section 401(k) of the Internal Revenue Code of 1986. The general administration and operation of the Plan is vested in the plan committee (the "Committee"). The trustee of the Plan is Texas Commerce Trust Company N.A. (the "Trustee"), formerly Ameritrust Texas N.A. Employee contributions are invested at each employee's discretion in the General Equity Fund, Fixed Income Fund, Common Stock Fund or Balanced Investment Fund on a percentage allocation basis in any increment of 25%. The General Equity Fund is invested and reinvested in a pooled investment fund which, in turn, is invested in equity investments. The Fixed Income Fund is invested and reinvested in annuities or other contracts with insurance companies, a short-term Bond fund and short-term cash investments. The Company Stock Fund is invested and reinvested in Computer Sciences Corporation common stock. The Balanced Investment Fund is invested and reinvested in an actively managed diversified portfolio of U.S. equities, bonds and cash equivalents. Contributions - Participants may contribute from 2% to 15% of their compensation (not to exceed $9,500 and $9,240 for calendar years 1996 and 1995, respectively). Employer contributions equal 50% of the first 6% of a participant's contribution, not to exceed 3% of the participant's plan compensation. Participant Accounts - Each participant's account is credited with the participant's contributions, the Company's matching contributions and earnings. Allocations are based primarily on account balances at certain specified dates as provided under the terms of the Plan. Vesting - Upon normal retirement, death or disability, a participant is entitled to the entire balance of his or her account. If a participant's employment is terminated for any other reason, such participant is entitled to the total of his or her employee contributions plus a vested percentage of the Company's matching contribution. Participants vest in Company contributions as follows:
Vesting Service Vesting Percent Less than 2 years 0 2 years but less than 3 25 3 years but less than 4 50 4 years but less than 5 75 5 years or more 100
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Basis - The financial statements are prepared using the accrual basis of accounting in accordance with generally accepted accounting principles. Investments - Investments are presented in the financial statements at their fair values using the first-in first-out method. If available, quoted market prices are used to value investments. Investments in fixed income contracts are reported at contract values. Purchases and sales of investments are recorded on the trade-date basis. (See Note 7) Benefit Payments - Benefit payments are recorded when paid. Administrative Expenses - Administrative expenses are paid by the Company. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net appreciation in fair value of investments and contributions during the reporting period. Actual results could differ from those estimates. 3. CONTRIBUTIONS Included in employee contributions for 1996 and 1995 are $49,724 and $993, respectively, of lump-sum distributions to employees rolled over from other employee benefit plans. 4. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:
September 30, -------------------------- 1996 1995 Net assets available for benefits per the financial statements $17,643,649 $15,096,777 Amounts allocated to withdrawing participants (1,000,658) (617,959) ----------- ----------- Net assets available for benefits per the Form 5500 $16,642,991 $14,478,818 =========== ===========
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
Year Ended September 30, 1996 Benefits paid to participants per the financial statements $1,834,927 Add: Amounts allocated to withdrawing participants at September 30, 1996 1,000,658 Less: Amounts allocated to withdrawing participants at September 30, 1995 (617,959) --------- Benefits paid to participants per the Form 5500 $2,217,626 ==========
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to September 30 but not yet paid as of that date. 5. FEDERAL INCOME TAXES The Plan obtained its latest tax determination letter on May 10, 1996, from the Internal Revenue Service ("IRS") stating that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The plan administrator and the Plan's tax counsel believe that the Plan as currently designed is being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, they believe that the Plan is qualified and considered tax-exempt as of the financial statement date. 6. FORFEITURES Upon termination, the nonvested portion of a participant's employer contribution account is forfeited and held in suspense. If a participant resumes service under the Plan, he or she may, under certain circumstances, have the forfeited suspense account reinstated (including gains or losses). If the terminated employee is not re-employed before completion of five consecutive one-year breaks in service, his or her forfeited suspense account shall become available for allocation. The Company reserves the right to use the forfeited balance to reduce future contributions by the employer. Accumulated forfeitures amounted to $97,285 and $34,033 for the years ended September 30, 1996 and 1995, respectively. During 1996 and 1995, the Company elected to utilize $356 and $12,991, respectively, of accumulated forfeitures to reduce employer contributions to the Plan. 7. GUARANTEED INCOME CONTRACTS The Plan invests in guaranteed income contracts with various reputable insurance companies which are held by the Trustee as custodian for the Fixed Income Fund. Each account is credited monthly with the interest income earned accruing at a fixed-contract rate determined at origination of each contract. The contracts are included in the financial statements at September 30, 1996 and 1995 and are recorded at values reported to the Plan by the Trustee. During 1996, the Plan adopted the provisions of Statement of Position 94-4, "Reporting of Investment Contracts Held by Health and Welfare Plans and Defined Contribution Pension Plans" ("SOP 94-4"). The contracts held by the Fixed Income Fund are deemed to be benefit responsive. As such, at September 30, 1996 the guaranteed income contracts are reported at contract value on the statement of net assets available for benefits, which approximates fair value. The average yield and interest rates for each guaranteed income contract as of and for the period ended September 30, 1996 were as follows:
Contract Yield % Interest Rate % General American Life Insurance Company 8.41 8.41 Hartford Life Insurance Company 8.41 8.41 Protective Life Insurance Company 7.98 7.98 Provident National Assurance Company 7.92 7.92 Prudential Insurance Company of America 6.31 6.31
8. RELATED-PARTY TRANSACTIONS During the years ended September 30, 1996 and 1995, the Plan purchased and sold shares of Computer Sciences Corporation common stock and units of short- term cash management funds managed by the Trustee as temporary investments, as shown below:
1996 1995 ------------------------ ----------------------- Purchases Sales Purchases Sales Computer Sciences Corporation: Shares 8,032 6,242 9,596 2,476 Dollars $ 576,725 $ 391,696 $ 506,700 $ 131,244 ========== ========== ========== ========== Trustee - Short-Term Cash Management Fund $3,708,481 $3,345,420 $3,332,206 $3,948,967 ========== ========== ========== ==========
9. SUPPLEMENTAL SCHEDULE OF FUND INFORMATION The Plan consists of four investment funds. Each participant directs the manner in which his or her account balance is invested. The net assets available for benefits by fund and changes in net assets available for benefits by fund for the years ended September 30, 1996 and 1995 are as follows:
1996 ----------------------------------------------------------- Fixed General Common Balanced Combined Income Equity Stock Investment Funds Fund Fund Fund Fund Investment income: Net appreciation in fair value of investments $ 1,396,851 $ 1,926 $ 754,405 $ 476,634 $ 163,886 Interest and dividends 799,014 473,646 321,259 2,213 1,896 ----------- ---------- ---------- ---------- ---------- Total 2,195,865 475,572 1,075,664 478,847 165,782 ----------- ---------- ---------- ---------- ---------- Contributions: Employer 577,934 124,336 198,300 177,256 78,042 Employee 1,608,000 313,674 565,714 506,581 222,031 ----------- ---------- ---------- ---------- ---------- Total 2,185,934 438,010 764,014 683,837 300,073 ----------- ---------- ---------- ---------- ---------- Total additions 4,381,799 913,582 1,839,678 1,162,684 465,855 ----------- ---------- ---------- ---------- ---------- Benefits paid to participants (1,834,927) (676,970) (615,371) (485,564) (57,022) Interfund transfers, net - (382,275) 358,385 202,540 (178,650) ----------- ---------- ---------- ---------- ---------- Increase (decrease) in net assets available for benefits 2,546,872 (145,663) 1,582,692 879,660 230,183 Net assets available for benefits: Beginning of year 15,096,777 6,012,988 5,071,514 3,057,770 954,505 ----------- ---------- ---------- ---------- ---------- End of year $17,643,649 $5,867,325 $6,654,206 $3,937,430 $1,184,688
1995 ----------------------------------------------------------- Fixed General Common Balanced Combined Income Equity Stock Investment Funds Fund Fund Fund Fund Investment income: Net appreciation in fair value of investments $ 1,939,691 $ 12,561 $ 887,871 $ 916,373 $122,886 Interest and dividends 668,871 422,663 242,524 1,821 1,863 ----------- ---------- ---------- ---------- -------- Total 2,608,562 435,224 1,130,395 918,194 124,749 ----------- ---------- ---------- ---------- -------- Contributions: Employer 461,021 139,687 157,866 111,199 52,269 Employee 1,432,790 384,894 499,740 371,311 176,845 ----------- ---------- ---------- ---------- -------- Total 1,893,811 524,581 657,606 482,510 229,114 ----------- ---------- ---------- ---------- -------- Total additions 4,502,373 959,805 1,788,001 1,400,704 353,863 ----------- ---------- ---------- ---------- -------- Benefits paid to participants (1,590,576) (594,890) (740,670) (225,510) (29,506) Interfund transfers, net - (273,510) (152,064) 123,314 302,260 ----------- ---------- ---------- ---------- -------- Increase in net assets available for benefits 2,911,797 91,405 895,267 1,298,508 626,617 Net assets available for benefits: Beginning of year 12,184,980 5,921,583 4,176,247 1,759,262 327,888 ----------- ---------- ---------- ---------- -------- End of year $15,096,777 $6,012,988 $5,071,514 $3,057,770 $954,505
Item 27a - Schedule of Assets Held for Investment CSC CREDIT SERVICES, INC. EMPLOYEE SAVINGS PLAN SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT, SEPTEMBER 30, 1996
Current Description of Investment Cost Value *Computer Science Corporation - common stock (48,882 shares) $2,002,244 $3,757,804 Vanguard Group - Short-Term Bond Fund (111,659 shares) 1,196,761 1,193,637 Vanguard Group - Windsor Fund Incorporated II (283,243 shares) 4,782,058 6,596,726 Brinson Trust Company US (7,430 units) 965,039 1,102,057 Brinson Trust Company US-Cash Management Fund 57,108 57,108 General American Life Insurance Company - 8.41% fixed income contract due 9/30/96 1,117,193 1,117,193 Hartford Life Insurance Company - 8.41% fixed income contract due 9/30/96 1,115,930 1,115,930 Protective Life Insurance Company - 7.98% fixed income contract due 3/31/97 434,465 434,465 Provident National Assurance Company - 7.92% fixed income contract due 3/31/97 906,258 906,258 Prudential Insurance Company of America - 6.31% fixed income contract due 9/30/98 726,870 726,870 *Texas Commerce Trust Company N.A. - Short-Term Cash Management Fund 410,798 410,798 *Related party, party in interest.
Item 27d - Schedule of Reportable Transactions CSC CREDIT SERVICES, INC. EMPLOYEE SAVINGS PLAN SUPPLEMENTAL SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED SEPTEMBER 30, 1996
Current Number Number Value on Net Description of Purchase of Selling Cost of Transaction Gain or of Investment Purchases Price Sales Price Asset Date (Loss) Single Transactions - ------------- Vanguard Group - Short-Term Bond Fund 1 $1,284,818 $1,284,818 Brinson Trust Co. U.S. Mutual Fund 1 $ 938,985 803,132$ 938,985$135,853 Provident National Contract #GC-027-05087 1 877,655 877,655 877,655 Series of Transactions - ------------- *Texas Commerce Trust Company N.A. - Short- Term Cash Management Fund 100 3,708,481 3,708,481 81 3,345,420 3,345,420 3,345,420 Vanguard Group - Short-Term Bond Fund 1 1,284,818 1,284,818 10 891,755 892,549 891,755 (794) Vanguard Group - Windsor II 17 953,928 953,928 Brinson Trust Co. U.S. Mutual Fund 1 938,985 803,132 938,985 135,853 Provident National Contract #GC-027-05087 1 877,655 877,655 877,655 *Related party, party in interest.
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 CREDIT SERVICES, INC. EMPLOYEE SAVINGS PLAN Date: March 20, 1997 By:/s/ Leon J. Level ----------------------------- Leon J. Level Chairman, Computer Sciences Corporation Retirement Plans Committee EXHIBIT INDEX 23 Independent Auditors' Consent EXHIBIT 23 INDEPENDENT AUDITORS' CONSENT We hereby consent to the incorporation by reference in Registration Statement No. 333-00761 on Form S-8 of Computer Sciences Corporation of our report dated December 20, 1996 appearing in this Annual Report on Form 11-K of CSC Credit Services, Inc. Employee Savings Plan for the year ended September 30, 1996. DELOITTE & TOUCHE LLP Houston, Texas March 14, 1997 -----END PRIVACY-ENHANCED MESSAGE-----