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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 11-K
[X] Annual Report Pursuant to Section 15(d) of
the Securities Exchange Act of 1934
For the fiscal year ended December 31, 2000
or
[_] Transition Report Pursuant to Section 15(d)
of the Securities Exchange Act of 1934
For the transition Commission file
period from __ to ___ number 1-8607
BellSouth Retirement Savings Plan
BellSouth Corporation
1155 Peachtree Street, N.E.
Atlanta, Georgia 30309-3610
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BELLSOUTH RETIREMENT SAVINGS PLAN
Table of Contents
Page
----
Report of Independent Accountants.......................................... 2
Statement of Net Assets Available for Benefits, With Fund
Information as of December 31, 2000....................................... 3
Statement of Net Assets Available for Benefits, With Fund
Information as of December 31, 1999....................................... 5
Statement of Changes in Net Assets Available for Benefits, With Fund
Information for the Year ended December 31, 2000.......................... 7
Statement of Changes in Net Assets Available for Benefits, With Fund
Information for the Year ended December 31, 1999.......................... 9
Statement of Changes in Net Assets Available for Benefits, With Fund
Information for the Year ended December 31, 1998.......................... 11
Notes to Financial Statements.............................................. 13
Signature Page............................................................. 24
Exhibit 23--Consent of Independent Accountants............................. 25
1
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Plan Administrator of
the BellSouth Retirement Savings Plan:
In our opinion, the accompanying statements of net assets available for
benefits and the related statements of changes in net assets available for
benefits present fairly, in all material respects, the net assets available
for benefits of the BellSouth Retirement Savings Plan (the "Plan") at December
31, 2000 and 1999, and the changes in net assets available for benefits for
each of the three years in the period ended December 31, 2000 in conformity
with accounting principles generally accepted in the United States of America.
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 of these statements in accordance
with auditing standards generally accepted in the United States of America,
which 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, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Fund Information in the statements
of net assets available for benefits and the statements of changes in net
assets available for benefits is presented for purposes of additional analysis
rather than to present the net assets available for benefits and changes in
net assets available for benefits of each fund. The Fund Information has been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ PricewaterhouseCoopers LLP
Atlanta, Georgia
June 25, 2001
2
BELLSOUTH RETIRE
STATEMENT OF NET ASSETS AVAILABLE
December
(In Tho
Vanguard
Index Fidelity
BellSouth Indexed Interest Trust Growth
Stock Stock Income Growth & Income Balanced
Fund Fund Fund Portfolio Portfolio Fund
ASSETS ---------- ---------- -------- --------- --------- --------
Share of Trust net
assets................. $1,559,490 $1,102,940 $940,836 $260,329 $180,106 $104,327
Investment in BellSouth
Retirement Savings
Employee Stock
Ownership Plan Trust:
Shares of BellSouth
common stock allocated
to participants....... -- -- -- -- -- --
Shares of BellSouth
common stock held for
future allocation..... -- -- -- -- -- --
Temporary cash
investments........... -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total Investments..... 1,559,490 1,102,940 940,836 260,329 180,106 104,327
Contributions
receivable............. 1,818 1,420 822 838 568 403
Fund, BellSouth Savings
and Security Plan and
other transfers
receivable--net........ -- -- 1,993 -- -- 6
---------- ---------- -------- -------- -------- --------
Total Assets.......... 1,561,308 1,104,360 943,651 261,167 180,674 104,736
---------- ---------- -------- -------- -------- --------
LIABILITIES
Distributions payable... 1,353 1,135 1,109 35 17 106
Fund, BellSouth Savings
and Security Plan and
other transfers
payable--net........... 474 422 -- 764 72 --
Notes payable........... -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total Liabilities..... 1,827 1,557 1,109 799 89 106
---------- ---------- -------- -------- -------- --------
Net Assets Available for
Benefits............... $1,559,481 $1,102,803 $942,542 $260,368 $180,585 $104,630
========== ========== ======== ======== ======== ========
The accompanying notes are an integ
3
MENT SAVINGS PLAN
FOR BENEFITS, WITH FUND INFORMATION
31, 2000
usands)
T. Rowe Personal DFA U.S. Employee Stock
Price DFA U.S. Choice DFA Large Cap Ownership Plan
Bond Mid-Cap 6-10 Value Retirement International Value II Participant ----------------------
Fund Growth Portfolio II Account Value II Fund Fund Loans Other Allocated Unallocated Total
-------- -------- ------------ ---------- ------------- --------- ----------- ------- ---------- ----------- ----------
$101,672 $156,369 $70,023 $99,053 $38,750 $28,632 $68,799 $14,862 $ -- $ -- $4,726,188
-- -- -- -- -- -- -- -- 1,155,338 -- 1,155,338
-- -- -- -- -- -- -- -- -- 446,931 446,931
-- -- -- -- -- -- -- -- 536 13,420 13,956
-------- -------- ------- ------- ------- ------- ------- ------- ---------- -------- ----------
101,672 156,369 70,023 99,053 38,750 28,632 68,799 14,862 1,155,874 460,351 6,342,413
124 489 165 -- 98 127 -- -- -- -- 6,872
-- -- 22 539 -- 5 1,461 -- 3,484 -- 7,510
-------- -------- ------- ------- ------- ------- ------- ------- ---------- -------- ----------
101,796 156,858 70,210 99,592 38,848 28,764 70,260 14,862 1,159,358 460,351 6,356,795
-------- -------- ------- ------- ------- ------- ------- ------- ---------- -------- ----------
38 36 22 -- -- 13 51 -- 353 -- 4,268
9 39 -- -- 85 -- -- 14,862 -- -- 16,727
-- -- -- -- -- -- -- -- -- 208,784 208,784
-------- -------- ------- ------- ------- ------- ------- ------- ---------- -------- ----------
47 75 22 -- 85 13 51 14,862 353 208,784 229,779
-------- -------- ------- ------- ------- ------- ------- ------- ---------- -------- ----------
$101,749 $156,783 $70,188 $99,592 $38,763 $28,751 $70,209 $ -- $1,159,005 $251,567 $6,127,016
======== ======== ======= ======= ======= ======= ======= ======= ========== ======== ==========
ral part of these financial statements.
4
BELLSOUTH RETIRE
STATEMENT OF NET ASSETS AVAILABLE
December
(In Tho
Vanguard
Index Fidelity
BellSouth Indexed Interest Trust Growth
Stock Stock Income Growth & Income Balanced
Fund Fund Fund Portfolio Portfolio Fund
ASSETS ---------- ---------- -------- --------- --------- --------
Share of Trust net
assets................. $2,043,032 $1,249,328 $942,806 $250,596 $191,653 $113,737
Investment in BellSouth
Retirement Savings
Employee Stock
Ownership Plan Trust:
Shares of BellSouth
common stock allocated
to participants....... -- -- -- -- -- --
Shares of BellSouth
common stock held for
future allocation..... -- -- -- -- -- --
Temporary cash
investments........... -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total Investments..... 2,043,032 1,249,328 942,806 250,596 191,653 113,737
Contributions
receivable............. 1,965 1,414 673 583 498 195
Fund, BellSouth Savings
and Security Plan and
other transfers
receivable--net........ -- 424 -- 319 -- --
---------- ---------- -------- -------- -------- --------
Total Assets.......... 2,044,997 1,251,166 943,479 251,498 192,151 113,932
---------- ---------- -------- -------- -------- --------
LIABILITIES
Distributions payable... 703 603 100 33 21 27
Fund, BellSouth Savings
and Security Plan and
other transfers
payable--net........... 143 -- 702 -- 389 485
Notes payable........... -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total Liabilities..... 846 603 802 33 410 512
---------- ---------- -------- -------- -------- --------
Net Assets Available for
Benefits............... $2,044,151 $1,250,563 $942,677 $251,465 $191,741 $113,420
========== ========== ======== ======== ======== ========
The accompanying notes are an integ
5
MENT SAVINGS PLAN
FOR BENEFITS, WITH FUND INFORMATION
31, 1999
usands)
T. Rowe Personal DFA U.S. Employee Stock
Price DFA U.S. Choice DFA Large Cap Ownership Plan
Bond Mid-Cap 6-10 Value Retirement- International Value II Participant ----------------------
Fund Growth Portfolio II Account Value II Fund Fund Loans Other Allocated Unallocated Total
------- ------- ------------ ----------- ------------- --------- ----------- ------ ---------- ----------- ----------
$97,496 $78,505 $62,984 $41,515 $39,662 $28,003 $67,106 $1,677 $ -- $ -- $5,208,100
-- -- -- -- -- -- -- -- 1,288,767 -- 1,288,767
-- -- -- -- -- -- -- -- -- 643,593 643,593
-- -- -- -- -- -- -- -- 2,040 13,858 15,898
------- ------- ------- ------- ------- ------- ------- ------ ---------- -------- ----------
97,496 78,505 62,984 41,515 39,662 28,003 67,106 1,677 1,290,807 657,451 7,156,358
114 219 140 -- 84 85 -- -- -- -- 5,970
-- 144 343 2,311 486 277 247 -- -- -- 4,551
------- ------- ------- ------- ------- ------- ------- ------ ---------- -------- ----------
97,610 78,868 63,467 43,826 40,232 28,365 67,353 1,677 1,290,807 657,451 7,166,879
------- ------- ------- ------- ------- ------- ------- ------ ---------- -------- ----------
7 13 13 -- 2 4 -- -- 176 -- 1,702
11 -- -- -- -- -- -- 1,677 105 -- 3,512
-- -- -- -- -- -- -- -- -- 264,056 264,056
------- ------- ------- ------- ------- ------- ------- ------ ---------- -------- ----------
18 13 13 -- 2 4 -- 1,677 281 264,056 269,270
------- ------- ------- ------- ------- ------- ------- ------ ---------- -------- ----------
$97,592 $78,855 $63,454 $43,826 $40,230 $28,361 $67,353 $ -- $1,290,526 $393,395 $6,897,609
======= ======= ======= ======= ======= ======= ======= ====== ========== ======== ==========
ral part of these financial statements.
6
BELLSOUTH RETIRE
STATEMENT OF CHANGES
FOR BENEFITS, WITH
Year Ended Dec
(In Tho
Vanguard
Index Fidelity
BellSouth Indexed Interest Trust Growth
Stock Stock Income Growth & Income Balanced Bond
Fund Fund Fund Portfolio Portfolio Fund Fund
---------- ---------- -------- --------- --------- -------- --------
Net Assets Available for
Benefits,
December 31, 1999...... $2,044,151 $1,250,563 $942,677 $251,465 $191,741 $113,420 $ 97,592
---------- ---------- -------- -------- -------- -------- --------
Employee contributions.. 55,561 46,626 42,046 25,372 16,772 7,615 3,807
Transfer of
participants'
balances--net.......... (235,693) 9,117 45,389 78,930 (6,633) (11,252) (1,392)
Supplemental
contributions.......... -- -- -- -- -- -- --
Allocation of shares to
participants........... -- -- -- -- -- -- --
Transfer for loan
repayment.............. -- -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- --------
Total Contributions,
Allocations and
Transfers.............. (180,132) 55,743 87,435 104,302 10,139 (3,637) 2,415
Share of Trust
investment activities.. (140,385) (104,914) 49,094 (69,159) (4,001) 3,528 9,535
---------- ---------- -------- -------- -------- -------- --------
Total................... (320,517) (49,171) 136,529 35,143 6,138 (109) 11,950
---------- ---------- -------- -------- -------- -------- --------
Less: Distributions to
participants..... 164,153 98,589 136,664 26,240 17,294 8,681 7,793
Interest on notes
payable.......... -- -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- --------
Net Assets Available for
Benefits,
December 31, 2000...... $1,559,481 $1,102,803 $942,542 $260,368 $180,585 $104,630 $101,749
========== ========== ======== ======== ======== ======== ========
The accompanying notes are an integ
7
MENT SAVINGS PLAN
IN NET ASSETS AVAILABLE
FUND INFORMATION
ember 31, 2000
usands)
T. Rowe Personal DFA U.S. Employee Stock
Price DFA U.S. Choice DFA Large Cap Ownership Plan
Mid-Cap 6-10 Value Retirement International Value II Participant -----------------------
Growth Portfolio II Account Value II Fund Fund Loans Other Allocated Unallocated Total
-------- ------------ ---------- ------------- --------- ----------- ------- ---------- ----------- ----------
$ 78,855 $63,454 $ 43,826 $40,230 $28,361 $ 67,353 $ -- $1,290,526 $ 393,395 $6,897,609
-------- ------- -------- ------- ------- -------- ------- ---------- --------- ----------
12,930 5,438 -- 4,010 2,628 -- -- -- -- 222,805
70,249 1,315 102,103 (1,834) (2,074) (12,206) (1,224) (27,913) -- 6,882
-- -- -- -- -- -- -- 50,636 50,636
-- -- -- -- -- -- -- 100,059 (100,059) --
-- -- -- -- -- -- -- (16,723) 16,723 --
-------- ------- -------- ------- ------- -------- ------- ---------- --------- ----------
83,179 6,753 102,103 2,176 554 (12,206) (1,224) 55,423 (32,700) 280,323
7,289 5,928 (46,304) (178) 2,312 17,361 1,224 (114,698) (86,261) (469,629)
-------- ------- -------- ------- ------- -------- ------- ---------- --------- ----------
90,468 12,681 55,799 1,998 2,866 5,155 -- (59,275) (118,961) (189,306)
-------- ------- -------- ------- ------- -------- ------- ---------- --------- ----------
12,540 5,947 33 3,465 2,476 2,299 -- 72,246 -- 558,420
-- -- -- -- -- -- -- -- 22,867 22,867
-------- ------- -------- ------- ------- -------- ------- ---------- --------- ----------
$156,783 $70,188 $ 99,592 $38,763 $28,751 $ 70,209 $ -- $1,159,005 $ 251,567 $6,127,016
======== ======= ======== ======= ======= ======== ======= ========== ========= ==========
ral part of these financial statements.
8
BELLSOUTH RETIRE
STATEMENT OF CHANGES
FOR BENEFITS, WITH
Year Ended Dec
(In Tho
Vanguard
Index Fidelity T. Rowe
BellSouth Indexed Interest Trust Growth Price
Stock Stock Income Growth & Income Balanced Bond Mid-Cap
Fund Fund Fund Portfolio Portfolio Fund Fund Growth
---------- ---------- -------- --------- --------- -------- -------- -------
Net Assets Available for
Benefits,
December 31, 1998...... $2,251,426 $1,104,970 $910,241 $129,374 $180,281 $114,206 $119,840 $57,278
---------- ---------- -------- -------- -------- -------- -------- -------
Employee contributions.. 59,895 46,729 31,079 17,866 16,939 7,306 4,558 6,967
Transfer of
participants'
balances--net.......... (30,420) (52,577) 74,445 69,439 (14,643) (9,183) (18,483) 3,624
Supplemental
contributions.......... -- -- -- -- -- -- -- --
Allocation of shares to
participants........... -- -- -- -- -- -- -- --
Transfer for loan
repayment.............. -- -- -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- -------- -------
Total Contributions,
Allocations and
Transfers.............. 29,475 (5,848) 105,524 87,305 2,296 (1,877) (13,925) 10,591
Share of Trust
investment
activities............. (88,643) 221,237 52,988 48,269 18,251 8,543 (2,110) 13,898
---------- ---------- -------- -------- -------- -------- -------- -------
Total................... (59,168) 215,389 158,512 135,574 20,547 6,666 (16,035) 24,489
---------- ---------- -------- -------- -------- -------- -------- -------
Less: Distributions to
participants........... 148,107 69,796 126,076 13,483 9,087 7,452 6,213 2,912
Interest on notes
payable.............. -- -- -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- -------- -------
Net Assets Available for
Benefits,
December 31, 1999...... $2,044,151 $1,250,563 $942,677 $251,465 $191,741 $113,420 $ 97,592 $78,855
========== ========== ======== ======== ======== ======== ======== =======
The accompanying notes are an integ
9
MENT SAVINGS PLAN
IN NET ASSETS AVAILABLE
FUND INFORMATION
ember 31, 1999
usands)
Personal DFA DFA U.S. Employee Stock
DFA U.S. Choice International Large Cap Ownership Plan
6-10 Value Retirement Value II Value II Participant -----------------------
Portfolio II Account Fund Fund Loans Other Allocated Unallocated Total
------------ ---------- ------------- --------- ----------- ----- ---------- ----------- ----------
$68,227 $ -- $32,888 $30,731 $59,546 $ -- $1,262,543 $549,469 $6,871,020
------- ------- ------- ------- ------- ----- ---------- -------- ----------
5,617 -- 3,055 2,951 -- -- -- -- 202,962
(14,894) 42,305 (46) (4,761) 3,489 (119) (10,649) -- 37,527
-- -- -- -- -- -- -- 48,889 48,889
-- -- -- -- -- -- 130,890 (130,890) --
-- -- -- -- -- -- (15,134) 15,134 --
------- ------- ------- ------- ------- ----- ---------- -------- ----------
(9,277) 42,305 3,009 (1,810) 3,489 (119) 105,107 (66,867) 289,378
7,210 1,521 5,516 1,030 7,007 119 (36,417) (61,709) 196,710
------- ------- ------- ------- ------- ----- ---------- -------- ----------
(2,067) 43,826 8,525 (780) 10,496 -- 68,690 (128,576) 486,088
------- ------- ------- ------- ------- ----- ---------- -------- ----------
2,706 -- 1,183 1,590 2,689 -- 40,707 -- 432,001
-- -- -- -- -- -- -- 27,498 27,498
------- ------- ------- ------- ------- ----- ---------- -------- ----------
$63,454 $43,826 $40,230 $28,361 $67,353 $ -- $1,290,526 $393,395 $6,897,609
======= ======= ======= ======= ======= ===== ========== ======== ==========
ral part of these financial statements.
10
BELLSOUTH RETIRE
STATEMENT OF CHANGES
FOR BENEFITS, WITH
Year Ended Dec
(In Tho
Vanguard
Index Fidelity
BellSouth Indexed Interest Trust Growth
Stock Stock Income Growth & Income Balanced
Fund Fund Fund Portfolio Portfolio Fund
---------- ---------- -------- --------- --------- --------
Net Assets Available for
Benefits,
December 31, 1997...... $1,155,485 $1,040,696 $896,002 $ 46,552 $161,078 $105,313
---------- ---------- -------- -------- -------- --------
Employee contributions.. 38,881 49,196 31,162 8,531 15,368 7,731
Transfer of
participants'
balances--net.......... 195,300 (181,786) 17,034 49,022 (27,030) (10,731)
Supplemental
contributions.......... -- -- -- -- -- --
Allocation of shares to
participants........... -- -- -- -- -- --
Transfer for loan
repayment.............. -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total Contributions,
Allocations and
Transfers.............. 234,181 (132,590) 48,196 57,553 (11,662) (3,000)
Share of Trust
investment activities.. 951,469 267,172 56,477 29,180 42,185 20,798
---------- ---------- -------- -------- -------- --------
Total................... 1,185,650 134,582 104,673 86,733 30,523 17,798
---------- ---------- -------- -------- -------- --------
Less: Distributions to
participants..... 89,709 70,308 90,434 3,911 11,320 8,905
Interest on notes
payable.......... -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Net Assets Available for
Benefits,
December 31, 1998...... $2,251,426 $1,104,970 $910,241 $129,374 $180,281 $114,206
========== ========== ======== ======== ======== ========
The accompanying notes are an integ
11
MENT SAVINGS PLAN
IN NET ASSETS AVAILABLE
FUND INFORMATION
ember 31, 1998
usands)
T. Rowe DFA U.S. Employee Stock
Price DFA U.S. 6- DFA Large Cap Ownership Plan
Bond Mid-Cap 10 Value International Value II Participant -----------------------
Fund Growth Portfolio II Value II Fund Fund Loans Other Allocated Unallocated Total
-------- ------- ------------ ------------- --------- ----------- ----- ---------- ----------- ----------
$110,032 $41,001 $102,314 $31,817 $37,756 $60,917 $ -- $ 671,576 $ 227,922 $4,688,461
-------- ------- -------- ------- ------- ------- ----- ---------- --------- ----------
5,207 5,285 7,440 3,026 3,321 -- -- -- -- 175,148
4,693 3,946 (31,294) (4,852) (11,553) 35 (733) (11,693) -- (9,642)
-- -- -- -- -- -- -- -- 47,444 47,444
-- -- -- -- -- -- -- 116,832 (116,832) --
-- -- -- -- -- -- -- (12,910) 12,910 --
-------- ------- -------- ------- ------- ------- ----- ---------- --------- ----------
9,900 9,231 (23,854) (1,826) (8,232) 35 (733) 92,229 (56,478) 212,950
9,655 9,425 (5,649) 4,538 3,751 4,941 733 547,026 409,620 2,351,321
-------- ------- -------- ------- ------- ------- ----- ---------- --------- ----------
19,555 18,656 (29,503) 2,712 (4,481) 4,976 -- 639,255 353,142 2,564,271
-------- ------- -------- ------- ------- ------- ----- ---------- --------- ----------
9,747 2,379 4,584 1,641 2,544 6,347 -- 48,288 -- 350,117
-- -- -- -- -- -- -- -- 31,595 31,595
-------- ------- -------- ------- ------- ------- ----- ---------- --------- ----------
$119,840 $57,278 $ 68,227 $32,888 $30,731 $59,546 $ -- $1,262,543 $ 549,469 $6,871,020
======== ======= ======== ======= ======= ======= ===== ========== ========= ==========
ral part of these financial statements.
12
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Dollars in Thousands, Except Per-Participant Amounts)
1. Plan Description
General
The following description of the BellSouth Retirement Savings Plan (the
Plan) provides only general information. For additional information,
participants should refer to the Plan Prospectus/Summary Plan Description, as
supplemented (SPD). A copy of the SPD can be obtained by calling the BellSouth
Participant Service Center at 1-800-995-1000. In addition, copies of the Plan,
trust agreement and other related documents which include details of the Plan
can be obtained by writing to: Secretary, BellSouth Savings Plan Committee,
Room 13C09, 1155 Peachtree Street, N.E., Atlanta, Georgia 30309-3610.
The Plan was established by BellSouth Corporation (BellSouth) to provide a
convenient way for management employees to save for their retirement on a
long-term basis and to acquire an ownership interest in BellSouth. The Plan
consists of two parts: one is a profit sharing plan which includes a qualified
cash or deferred arrangement and which is intended to qualify as such under
Sections 401(a), 401(k) and 401(m) and related sections of the Internal
Revenue Code of 1986, as amended (the Code); the second part is an Employee
Stock Ownership Plan (ESOP) which is designed as a stock bonus plan to invest
primarily in shares of BellSouth Common Stock and which is intended to qualify
under Sections 401(a), 401(m) and 4975(e)(7) and related sections of the Code.
All regular full-time and part-time employees of participating BellSouth
companies who are not covered by a collective bargaining agreement, have
attained the age of 18, and have completed at least one month of service are
eligible to participate. The Plan is subject to the Employee Retirement Income
Security Act of 1974, as amended.
Master Trust
For investment purposes, the assets of the Plan are held in the BellSouth
Master Savings Trust (the Master Savings Trust). The Master Savings Trust also
holds the assets of the BellSouth Savings and Security Plan (SSP).
Investment Options
At December 31, 2000, the Plan's assets were comprised of the following
investment vehicles: BellSouth Stock Fund, Indexed Stock Fund, Interest Income
Fund, Bond Fund, Balanced Fund, Personal Choice Retirement Account and the
following mutual funds: Fidelity Growth & Income Portfolio, Vanguard Index
Trust Growth Portfolio, DFA U.S. 6-10 Value Portfolio II, T. Rowe Price Mid-
Cap Growth, DFA U.S. Large Cap Value II Fund and DFA International Value II
Fund. All investments are valued on a daily basis.
The Personal Choice Retirement Account, or PCRA, was added as an investment
option in 1999. Unlike the other funds offered by the Plan, the PCRA is an
individual brokerage account in which participants act as their own investment
advisor and may choose from a broad range of investment options. The
investment options include no-load and load mutual funds, most stocks listed
on many U.S. securities exchanges, bonds and other fixed-income investments.
Participants who open a PCRA are also assessed additional fees and commissions
which are discussed in Note 4. There were 1,346 and 431 participants invested
in the PCRA at December 31, 2000 and 1999, respectively.
Funds within the PCRA cannot be accessed directly for loans, withdrawals or
distributions. Participants who want a loan, withdrawal or distribution to
include amounts held in the PCRA must first transfer the desired amount from
the PCRA to another fund in the Plan for a minimum of one day.
13
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
1. Plan Description--(continued)
Concentrations of Risk
At December 31, 2000 and 1999, the Plan's assets were significantly
concentrated in shares of BellSouth Common Stock, the value of which is
subject to fluctuations related to corporate, industry and economic factors.
The Plan's other investment options include a variety of stocks, bonds,
fixed income securities, mutual funds and other investment securities.
Investment securities subject participants to various risks, such as interest
rate, market and credit risks. Due to the level of risk associated with
certain investment securities, it is at least reasonably possible that changes
in the values of investment securities will occur in the near term and that
such changes could materially affect participants' account balances and the
amounts reported in the Statements of Net Assets Available for Benefits, With
Fund Information.
Vesting
All participant and employing company contributions vest immediately.
Participant Loans (Whole Dollars)
Participants may borrow from their fund accounts a minimum of $1,000 up to
the lesser of $50,000 or 50 percent of their before-tax account balances as
defined by the Plan document and any amounts rolled over to the Plan from
other qualified plans. Loan balances are secured by the assets allocated to
the participant's accounts and bear interest at various rates which ranged
from 7.00% to 11.00% at December 31, 2000. Principal and interest are paid
ratably through periodic payroll deductions for active employees and by coupon
for nonactive employees. As discussed earlier, amounts held in a PCRA are not
directly available for loans.
Service Providers
As of May 1, 1999, State Street Bank & Trust Company serves as the Trustee
for the Master Savings Trust. During 1998, and in 1999 prior to May 1, Bankers
Trust Company served as the Trustee for the Master Savings Trust. Metropolitan
Life Insurance Company serves as the recordkeeper and service center provider
for the Plan. Charles Schwab & Co. Inc. provides brokerage services for the
PCRA.
2. Accounting Policies
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
changes therein, and disclosure of contingent assets and liabilities. Actual
results could differ from those estimates.
With respect to the Statements of Net Assets Available for Benefits, With
Fund Information for the years presented, allocated Share of Trust Net Assets
includes investments at fair value, accrued interest income, accrued
dividends, receivables for investments sold, payables for investments
purchased and accrued administrative expenses of the Master Savings Trust.
With respect to the Statements of Changes in Net Assets Available for
Benefits, With Fund Information for the years presented, allocated Share of
Trust Investment Activities includes the sum of realized gains, net of
realized losses, the net change in unrealized appreciation/(depreciation) on
the fair value of the investments, interest income, dividends, investment
manager fees and other administrative fees paid by the Master Savings Trust.
14
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
2. Accounting Policies--(continued)
The values of investments in the Master Savings Trust are determined as
follows:
. Shares of BellSouth Common Stock and equity securities underlying the
Indexed Stock Fund are valued on the basis of the closing price per
share on December 31, 2000 and 1999 as reported on the New York Stock
Exchange or, if no sales were made on that date, at the closing price on
the next preceding day on which sales were made;
. The values of mutual funds, all of which are traded on a national
securities exchange, are based on published daily closing net asset
values as reported by the respective securities exchanges;
. Over-the-counter securities and government obligations are valued based
on the bid prices on December 31, 2000 and 1999 from published sources
where available and, if not available, from other sources considered
reliable;
. Common trusts are valued at amounts determined from published reports of
the funds;
. Securities in the PCRA are valued by methods which are consistent with
the methods discussed above; and
. Annuity contracts with insurance companies and synthetic contracts are
valued at principal plus reinvested interest.
Purchases and sales of securities are reflected as of the trade date.
Realized gains and losses on sales of investments are determined on the
basis of average cost.
Dividend income is recognized on the date the trust is entitled to the
benefit. Interest earned on investments is recognized on the accrual basis.
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities" ("SFAS No.
133"). SFAS No. 133 requires that an entity recognize all derivatives and
measure those instruments at fair value.
SFAS No. 133 is effective for fiscal years beginning after June 15, 2000.
Pursuant to SFAS No. 137, the Plan is required to adopt SFAS No. 133 effective
January 1, 2001. Management has not yet been able to determine the impact of
SFAS No. 133 on the Plan financial statements as a result of the inconsistency
in accounting literature between SFAS No. 133, requiring derivatives to be
measured at fair value, and the AICPA Audit and Accounting Guide on "Audits of
Employee Benefit Plans" and Statement of Position 94-4, "Reporting of
Investment Contracts Held by Health and Welfare Benefit Plans and Defined-
Contribution Pension Plans", requiring benefit responsive investment contracts
(including synthetic GICs) to be measured at contract value. Until this
discrepancy is resolved, management is unable to determine the impact that
SFAS 133 will have on the Plan financial statements. The carrying value of
benefit responsive investment contracts (including synthetic GICs) in the
Master Trust is $1,219,984 at December 31, 2000. The carrying value of other
derivative instruments in the Master Trust is $86,830 at December 31, 2000.
The actual impact on the Plan's net assets available for plan benefits of
adopting SFAS No. 133 will be made based on the derivative positions and
hedging relationships at the date of adoption.
3. Contributions
Employee contributions to the Plan are recorded based on Basic Contributions
of up to 6% and Supplemental Contributions of up to 9% for those participants
wishing to contribute additional amounts. Total contributions may not exceed
15% of compensation. Contributions are designated by the participants as
before-tax or after-tax, subject to certain IRS limitations.
15
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in thousands, Except Per-Participant Amounts)
3. Contributions--(continued)
As discussed in Section 3 of the Plan document, participants may also
rollover amounts into the Plan from other qualified plans.
Participants' Basic Contributions receive a matching contribution in
BellSouth stock which is contributed to the ESOP Allocated Fund based on the
following formula:
Contribution Type % Company Match
----------------- ---- -----------------
Basic................................................. 2% 100%
Basic................................................. 3-6 Varies by Company
Supplemental.......................................... 7-15 None
The matching percentage is based on company financial performance and the
performance of BellSouth stock. The match percentage remains in effect for a
twelve-month period from April 1 through March 31. The range of match rates on
Basic Contributions in excess of 2% for the three years ended December 31,
2000 were as follows:
2000 1999 1998
---------- ---------- ----------
January-March.................................. 25% - 100% 25% - 100% 25% - 85%
April-December................................. 25% - 100% 25% - 100% 25% - 100%
4. Plan Expenses
Each participant in the Plan is charged a flat annual fee for Plan
administrative expenses, including recordkeeping, trustee and other expenses
considered reasonable by the Plan administrator. The fee is divided on a pro
rata basis among each investment option of the participant. The per-
participant fee was $35.25 for 2000 and $33.00 for 1999 and 1998. Additional
fees are charged to individual participants for various services provided by
the Plan's recordkeeper and the BellSouth Participant Service Center.
Participants who open a PCRA are charged a $50 fee for the initial transfer
into the PCRA and are charged an additional monthly fee of $2.50 for each
month that the participant maintains a PCRA balance.
Investment manager fees are paid by the Master Savings Trust. The Plan's
share of investment manager fees included in allocated share of Trust
investment activities in the Statements of Changes in Net Assets Available for
Benefits, with Fund Information for the years presented, were as follows:
For the Year Ended
December 31,
---------------------
2000 1999 1998
------ ------- ------
BellSouth Stock Fund....................................... $ 329 $ 278 $ --
Indexed Stock Fund......................................... (93) 396 182
Interest Income Fund....................................... 405 417 363
Balanced Fund.............................................. 119 133 106
Bond Fund.................................................. 228 161 331
----- ------- -----
$988 $1,385 $982
===== ======= =====
The Master Savings Trust did not pay investment management fees for the
BellSouth Stock Fund during 1998.
16
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
4. Plan Expenses--(continued)
For the mutual funds, investment manager fees are not paid directly from the
Master Savings Trust. However, these investments are subject to mutual fund
management fees which reduce the overall return of the respective mutual fund.
These fees, expressed as percentages of fund assets, which were assessed
against the mutual funds by their respective managers, were as follows:
For the Year
Ended
December 31,
----------------
2000 1999 1998
---- ---- ----
Vanguard Index Trust Growth Portfolio......................... 0.12% 0.12% 0.20%
Fidelity Growth & Income Portfolio............................ 0.67% 0.68% 0.71%
T. Rowe Price Mid-Cap Growth.................................. 0.87% 0.91% 0.91%
DFA U.S. 6-10 Value Portfolio II.............................. 0.44% 0.44% 0.45%
DFA International Value II Fund............................... 0.50% 0.50% 0.55%
DFA U.S. Large Cap Value II Fund.............................. 0.37% 0.37% 0.39%
5. Tax Status
The Internal Revenue Service has determined and informed BellSouth by a
favorable determination letter dated April 14, 1998 that the Plan and related
Trust meet the requirements of Section 401(a) of the Code and are exempt from
federal income taxes under Section 501(a) of the Code.
The Plan has been amended subsequent to the determination letter referred to
above. BellSouth believes that the Plan, in its current form, will maintain
its tax exempt status. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
The federal income tax effects on participants with respect to the Plan are
described in the SPD.
6. Termination Priorities
BellSouth intends to continue the Plan indefinitely but reserves the right
to terminate or amend it. In the event the Plan is terminated and if BellSouth
or its subsidiaries sponsor another defined contribution plan, the
participants may elect to have their account balances transferred to the other
plan. If BellSouth or its subsidiaries do not sponsor such a plan, the
participants would receive a lump-sum distribution of their account balances.
17
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
7. Interest in BellSouth Master Savings Trust
The assets of the Plan are held in the Master Savings Trust and are
commingled with the assets of the SSP. The assets of the Master Savings Trust
are allocated to the Plan based upon the total of each individual plan
participant's share of the Master Savings Trust's assets. The Plan's allocated
share of the total net assets of all funds in the Master Savings Trust was
68.19369% at December 31, 2000 and 65.57168% at December 31, 1999. The Plan's
allocated share of the net assets of each fund in the Master Savings Trust at
December 31, 2000 and 1999 were as follows:
2000 1999
--------- ---------
BellSouth Stock Fund..................................... 54.09021% 53.82512%
Indexed Stock Fund....................................... 86.20217% 85.80108%
Interest Income Fund..................................... 73.76164% 72.94221%
Vanguard Index Trust Growth Portfolio.................... 72.77800% 73.57265%
Fidelity Growth & Income Portfolio....................... 72.92631% 73.01791%
Balanced Fund............................................ 82.02028% 81.91873%
Bond Fund................................................ 92.17892% 92.69418%
T. Rowe Price Mid-Cap Growth............................. 74.76342% 79.40384%
DFA U.S. 6-10 Value Portfolio II......................... 84.22762% 84.92757%
Personal Choice Retirement Account....................... 100.0000% 100.0000%
DFA International Value II Fund.......................... 86.39532% 87.58686%
DFA U.S. Large Cap Value II Fund......................... 76.79393% 75.17285%
Participant Loans........................................ 63.24551% 63.13932%
Other.................................................... 60.59535% 49.57092%
18
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
7. Interest in BellSouth Master Savings Trust--(continued)
The financial position of the Master Savings Trust at December 31, 2000 and
1999 was as follows:
2000 1999
Assets: ---- ----
Investments at value:
BellSouth Stock Fund:
Shares of BellSouth Common Stock#...................... $2,867,936 $3,775,655
Temporary cash investments............................. 15,254 16,370
Distributable shares .................................. 18 63
Indexed Stock Fund:
Equity Index Fund#..................................... 1,279,516 1,456,096
Interest Income Fund:
General account investment contracts................... 74,600 93,672
Security backed investments............................ 1,145,384 1,096,133
Temporary cash investments............................. 48,616 96,209
Vanguard Index Trust Growth Portfolio:
Securities............................................. 357,703 340,612
Fidelity Growth & Income Portfolio:
Securities............................................. 246,970 262,475
Balanced Fund:
Securities............................................. 114,758 126,019
Temporary cash investments............................. 12,333 12,975
Bond Fund:
Securities............................................. 136,945 113,524
Temporary cash investments............................. 4,954 1,786
T. Rowe Price Mid-Cap Growth:
Securities............................................. 209,152 98,869
DFA U.S. 6-10 Value Portfolio II:
Securities............................................. 83,136 74,162
DFA International Value II Fund:
Securities............................................. 44,852 45,283
Personal Choice Retirement Account:
Securities............................................. 51,004 25,360
Mutual funds........................................... 29,181 8,592
Common trusts.......................................... 2,508 291
Temporary cash investments............................. 16,360 9,351
DFA U.S. Large Cap Value II Fund:
Securities............................................. 37,284 37,252
Participant Loans:
Loans to participants................................... 108,781 106,282
Contribution Account+:
BellSouth Common Shares................................. 5,086 --
Temporary cash investments.............................. 1,346 42
Distribution Account+:
Temporary cash investments.............................. 17,958 47
Expense Account+:
Temporary cash investments.............................. 2,540 3,290
(Continued)
19
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
7. Interest in BellSouth Master Savings Trust--(continued)
2000 1999
---- ----
Dividends and interest income receivable........... 9,029 7,787
Receivable for investments sold.................... 474 13,074
Other receivables.................................. 76 469
---------- -----------
6,923,754 7,821,740
Liabilities:
Payable for investments purchased.................. 36,300 23,378
Variation margin payable........................... 42 224
Other payables..................................... 392 --
---------- -----------
Trust net assets (excluding ESOP Trusts)........... 6,887,020 7,798,138
Investment in ESOP Trusts:
Shares of BellSouth Common Stock allocated to
participants...................................... 2,034,525 2,350,638
Distributable shares............................... 5 1
Shares of BellSouth Common Stock held for future
allocation#....................................... 661,301 949,327
Temporary cash investments......................... 21,672 25,505
---------- -----------
Total investments.................................. 9,604,523 11,123,609
Liabilities:
Notes payable...................................... 306,959 391,429
---------- -----------
Trust net assets................................... $9,297,564 $10,732,180
========== ===========
Investments at cost................................ $7,371,056 $ 7,276,780
========== ===========
--------
# Represents an individual investment which is 5% or more of the Net Assets of
the Master Savings Trust.
+ These accounts are combined and presented as the "Other" fund in the
accompanying financial statements.
20
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
7. Interest in BellSouth Master Savings Trust--(continued)
Distributions from the BellSouth Stock Fund and the BellSouth Management
Savings and ESOP Trust and the BellSouth Savings and Security ESOP Trust (the
ESOP Trusts) that are payable in shares of BellSouth Common Stock are
separated from the "Shares of BellSouth Common Stock" and "Shares of BellSouth
Common Stock allocated to participants" lines and reflected as "Distributable
Shares."
Assets in the BellSouth Stock Fund, Bond Fund, Indexed Stock Fund, mutual
funds and some of the assets in the Balanced Fund and the PCRA Fund are
invested in securities which fluctuate in market value, therefore the values
of the fund units fluctuate daily.
Assets in the Interest Income Fund are invested in the following types of
financial vehicles:
. General Account Investment Contracts--These contracts are also referred
to as traditional investment contracts. An investment contract is termed
"general account" when the assets committed to the contract are
commingled with other general assets of the contract issuer. The
contract issuer promises to return the invested principal plus a stated
rate of interest upon maturity. The quality of the promise is a function
of the financial condition of the contract issuer.
. Security Backed Investments--These are generic terms which refer to
investment contracts other than "traditional" general account investment
contracts as defined above. These investments consist of a combination
of marketable securities, owned directly by the Plan or as units of a
separate account or trust owned by the Plan, and an investment contract
that provides liquidity for eligible employee benefits at book value.
Market value securities are investments in fixed income securities owned
by the Plan without a corresponding investment contract. Liquidation of
these securities to pay eligible benefit events is at market value.
-- Group Trust Investment Contracts--Group Trust refers to the INVESCO
Group Trust for Retirement Benefit Plans. The INVESCO Group Trust
contains a series of commingled investment funds, available only to
INVESCO clients, constructed to provide a stable value portfolio
with the beneficial elements of various fixed income management
strategies. The Plan's investment in any one of the various INVESCO
Group Trust Funds is unitized and may be "wrapped" by an independent
financial institution through the issuance of an investment
contract.
-- Separate Account Investment Contracts--An investment contract is
termed "separate account" when the assets committed to the contract
are segregated from the general assets of the contract issuer
through the use of a specifically identifiable separate account. The
separate account may be comprised of investments from one Plan or
Trust, or comprised of investments from multiple qualified
retirement Plans and Trusts. Though ownership of the assets held in
a separate account is retained by the contract issuer, the assets
are protected from liabilities arising from the contract issuers'
general operations. The investment performance of a separate account
investment contract may be a function of the investment performance
of the investments held in the separate account.
-- Synthetic Investment Contract--The term "synthetic" investment
contract is used to describe a variety of investment contracts under
which a Plan retains ownership of the invested assets, or owns units
of an account or trust which holds the invested assets. To ensure
these invested assets may be accounted for at book value, a
"synthetic" investment contract, also referred to as a "wrap"
contract, is negotiated with an independent financial institution.
Under the terms of these
21
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
7. Interest in BellSouth Master Savings Trust--(continued)
investment contracts, the contract issuer ensures the Plan's ability
to pay eligible employee benefits at book value. The investment
performance of a synthetic investment contract may be a function of
the investment performance of the invested assets.
The value of the Interest Income Fund reflected in these financial
statements is based upon the principal invested and the interest credited. The
fair value of the Interest Income Fund, by investment type, at December 31,
2000 and 1999 was as follows:
December 31, December 31,
2000 1999
------------ ------------
General account investment contracts............... $ 74,600 $ 93,672
Security backed investments:
Underlying assets................................. 1,171,635 1,093,149
Wrapper contracts................................. (26,251) 2,984
---------- ----------
Total contracts.................................. $1,219,984 $1,189,805
========== ==========
The contracts held by the Master Savings Trust in the Interest Income Fund
are considered fully benefit-responsive in accordance with AICPA Statement of
Position 94-4. The crediting interest rate was 6.60% at December 31, 2000 and
6.23% at December 31, 1999. The average yield was 6.51% in 2000 and 6.12% in
1999. Interest rates are reset on a semi-annual, quarterly or monthly basis to
move the current book value of these investments toward the projected future
market value over the life of the contract.
During 1990, the ESOP Trusts issued medium-term notes in the aggregate
amount of $850 million to fund the purchase of BellSouth Common Stock to be
utilized at later dates to fulfill match obligations. Shares purchased with
such funds are released for allocation to participant accounts based on a
prescribed schedule coinciding with payments on the ESOP notes.
Assets held in the Master Savings Trust are generally unavailable to service
the ESOP debt; however, the notes are guaranteed by and are subject to direct
recourse against BellSouth. BellSouth contributes to the ESOP Trusts an amount
necessary, net of ESOP dividends and interest, to service the ESOP notes. Such
contributions are classified as Supplemental Contributions in the accompanying
Statements of Changes in Net Assets Available for Benefits, With Fund
Information. These contributions are subject to the claims of holders of debt
securities issued by the ESOP Trusts but are held at BellSouth and paid to the
ESOP Trusts twice yearly to fund, on a same day basis, required payments by
the ESOP Trusts on the notes. Such contributions would not remain in the ESOP
Trusts unless there was a default on the debt securities by the ESOP Trustee
after having received the required contributions from BellSouth. Therefore,
holders of the debt securities should not rely on the assets of the ESOP
Trusts in arriving at an investment decision with respect to the debt
securities.
In addition to Supplemental Contributions, BellSouth contributes amounts
necessary to purchase any additional shares required to meet the match
obligations after shares released by the ESOP Trusts have been used. Such
contributions are classified as Employing Company Contributions in the
accompanying Statements of Changes in Net Assets Available for Benefits, With
Fund Information.
In lieu of receiving cash dividends earned on shares of BellSouth Common
Stock which have been allocated to participants from the ESOP Trusts,
participant accounts are credited with equivalent shares of BellSouth Common
Stock. Dividends on the related ESOP shares are transferred to the Unallocated
ESOP Fund and are applied towards the service of the ESOP notes. The transfer
of these earnings is classified as Transfer for Loan Repayment in the
accompanying Statements of Changes in Net Assets Available for Benefits, With
Fund Information.
22
BELLSOUTH RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Dollars in Thousands, Except Per-Participant Amounts)
7. Interest in BellSouth Master Savings Trust--(continued)
BellSouth made supplemental cash contributions to the ESOP Trusts in the
amount of $75,497 in 2000, $73,389 in 1999 and $71,857 in 1998 for the purpose
of servicing the guaranteed debt.
A description of each debt issue is as follows:
BellSouth Management Savings and ESOP Trust:
Title Amount Interest Rate Due Date
----- -------- ------------- ------------
Amortizing Medium-Term Notes, Series A...... $275,000 9.125% July 1, 2003
Amortizing Medium-Term Notes, Series A...... $275,000 9.19% July 1, 2003
--------
Total..................................... $550,000
========
BellSouth Savings and Security ESOP Trust:
Title Amount Interest Rate Due Date
----- -------- ------------- ------------
Amortizing Medium-Term Notes, Series A...... $300,000 9.125% July 1, 2003
Maturities of the ESOP Trusts' long-term debt outstanding at December 31,
2000 were as follows:
2001 2002 2003 Total
------- -------- -------- --------
Maturities................................... $94,128 $104,648 $108,183 $306,959
======= ======== ======== ========
Investment activities of the Master Savings Trust are allocated to the Plan
based upon the total of each individual Plan participant's share of the Master
Savings Trust investment activities during the period ended December 31, 2000.
The Master Savings Trust investment activities for the years ended December
31, 2000, 1999 and 1998 were as follows:
For the Year Ended
December 31,
-----------------------------------
2000 1999 1998
---------- ----------- ----------
Investment Activities:
Dividends on shares of BellSouth Common
Stock................................... $ 112,515 $ 119,742 $ 110,822
Interest Income Fund income.............. 70,326 71,112 78,395
Other interest........................... 37,067 66,375 46,717
Net change in unrealized
appreciation/(depreciation)
on investments.......................... (1,575,258) (1,264,789) 2,617,133
Net realized gain on investments......... 589,455 1,084,574 1,161,504
Investment manager fees.................. (1,437) (1,880) (1,198)
Other fees............................... (3,325) (2,999) (3,262)
---------- ----------- ----------
Net investment activities................. $ (770,657) $ 72,135 $4,010,111
========== =========== ==========
23
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
BellSouth Retirement Savings Plan has duly caused this annual report to be
signed by the undersigned thereunto duly authorized.
BellSouth Retirement Savings Plan
By: BellSouth Corporation, as Plan
Administrator
/s/ Clinton A. Demetriou
By: _________________________________
Clinton A. Demetriou
(Executive Director)
Date: June 27, 2001
24