SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
 
FORM 11
 
-K
 
 
 
(Mark One)
 
 
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
 
For the fiscal year ended December 31, 2019
 
OR
 
 
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
 
For the transition period from
 
to
 
 
Commission File Number:1-8610
 
 
 
A. Full
 
title of the plan and the address of the plan, if different
 
from that of the issuer named below:
 
BELLSOUTH SAVINGS
 
AND SECURITY PLAN
 
B. Name of issuer of the securities held
 
pursuant to the plan and the address of its principal executive office:
 
AT&T INC.
 
208 S. Akard, Dallas, Texas
 
75202
 
 
 
 
 
 
BellSouth Savings and Security Plan
 
Financial Statements, Supplemental Schedule and Exhibit
 
Table of
 
Contents
 
 
 
Page
Reports of Independent Registered Public Accounting
 
Firm
 
 
1
 
Financial Statements:
 
Statements of Net Assets Available
 
for Benefits as of December 31, 2019 and 2018
 
 
2
 
Statement of Changes in Net Assets Available
 
for Benefits for the Year
 
Ended December 31, 2019
 
 
3
 
Notes to Financial Statements
 
 
4
 
Supplemental Schedule:
 
Schedule H, Line 4(i) – Schedule of Assets (Held at End
 
of Year)
 
as of December 31, 2019
 
 
16
 
 
 
1
 
 
Report of Independent Registered Public Accounting
 
Firm
 
Plan Administrator and Plan Participants
 
BellSouth Savings and Security Plan
 
Dallas, Texas
 
Opinion on the Financial Statements
 
We have audited
 
the accompanying statements of net assets available for benefits
 
of BellSouth Savings and Security Plan (Plan) as of
December 31, 2019 and 2018, the related statement of changes in net
 
assets available for benefits for the year ended December
 
31,
2019, and the related notes (collectively referred to as
 
the “financial statements”). In our opinion, the financial
 
statements referred to
above present fairly,
 
in all material respects, the net assets available for benefits of
 
BellSouth Savings and Security Plan as of
December 31, 2019 and 2018, and the changes in net assets available
 
for benefits for the year ended December 31, 2019, in
conformity with accounting principles generally accepted
 
in the United States of America.
 
Basis of Opinion
 
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 are a public
 
accounting firm registered with the Public Company Accounting
 
Oversight Board (United States) (“PCAOB”) and are
required to be independent with respect to the Plan in accordance
 
with the U.S. federal securities laws and the applicable rules
 
and
regulations of the Securities and Exchange Commission
 
and the PCAOB.
 
We conducted
 
our audits in accordance with the standards of the PCAOB. Those standards
 
require that we plan and perform the audits
to obtain reasonable assurance about whether the financial
 
statements are free of material misstatement, whether due
 
to error or fraud.
The Plan is not required to have, nor were we engaged
 
to perform, an audit of its internal control over financial reporting.
 
As part of
our audit we are required to obtain an understanding
 
of internal control over financial reporting but not for the
 
purpose of expressing
an opinion on the effectiveness of the Plan’s
 
internal control over financial reporting. Accordingly,
 
we express no such opinion.
 
Our audits included performing procedures to assess the risks of
 
material misstatement of the financial statements, whether due
 
to
error or fraud, and performing procedures that respond
 
to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements.
 
Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating
 
the overall presentation of the financial statements. We
 
believe
that our audits provide a reasonable basis for our
 
opinion.
 
Report on Supplemental Information
 
The supplemental information in the accompanying schedule
 
of assets (held at end of year) as of December 31, 2019,
 
has been
subjected to audit procedures performed in conjunction
 
with the audit of the Plan’s financial statements.
 
The supplemental schedule is
the responsibility of the Plan’s
 
management. Our audit procedures included determining
 
whether the supplemental schedule reconciles
to the financial statements or the underlying accounting
 
and other records, as applicable, and performing procedures to test the
completeness and accuracy of the information presented
 
in the supplemental schedule. In forming our opinion on the
 
supplemental
schedule, we evaluated whether the supplemental schedule,
 
including its form and content, is presented in conformity
 
with the
Department of Labor’s Rules and Regulations
 
for Reporting and Disclosure under the
Employee Retirement Income Security
 
Act of
1974
. In our opinion, the supplemental information is fairly stated, in all
 
material respects, in relation to the basic financial statements
taken as a whole.
 
/s/ BKD, LLP
 
We have served
 
as the Plan’s auditor since 2018
 
San Antonio, Texas
 
June 29, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2
 
 
BellSouth Savings and Security Plan
 
Statements of Net Assets Available
 
For Benefits
 
(Dollars in Thousands)
 
 
 
December 31,
 
 
2019
 
 
2018
 
ASSETS
 
 
Investment in AT&T
 
Savings Group Investment Trust
$
 
533,776
$ 552,489
 
Investments, at fair value
 
1,920,451
 
1,575,169
 
 
 
Total Investments
 
(See Note 4)
 
 
2,454,227
 
2,127,658
 
Notes receivable from participants
 
59,979
 
 
59,874
 
Participant contributions receivable
 
2,163
 
 
2,170
 
Employer contributions receivable
 
556
 
 
631
 
Interest receivable
 
469
 
 
396
 
 
 
Total Receivables
 
63,167
 
 
63,071
 
 
 
Total Assets
 
2,517,394
 
2,190,729
 
LIABILITIES
 
Administrative expenses payable
 
754
 
 
825
 
Due to broker for securities purchased
 
10,109
 
 
20,308
 
 
 
Total Liabilities
 
10,863
 
 
21,133
 
 
 
Net Assets Available
 
for Benefits
$2,506,531
$2,169,596
 
 
 
See Notes to Financial Statements.
 
 
 
 
 
 
 
 
 
3
 
 
BellSouth Savings and Security Plan
 
Statement of Changes in Net Assets Available
 
For Benefits
 
For the Year
 
Ended December 31, 2019
 
(Dollars in Thousands)
 
 
Net Assets Available
 
for Benefits, December 31, 2018
 
$2,169,596
 
Changes in Net Assets:
 
Contributions:
 
Participant contributions
 
 
 
64,095
 
Employer contributions
 
 
 
17,548
 
Rollover contributions
 
 
 
11,052
 
 
 
 
 
 
92,695
 
Investment Income:
 
Net income from investment in AT&T
 
Savings Group Investment Trust
 
 
 
15,393
 
Interest
 
 
 
2,782
 
Dividends
 
 
 
51,248
 
Net appreciation in fair value of investments
 
 
396,850
 
 
 
 
466,273
Interest income on notes receivable from participants
 
 
 
3,049
 
Distributions
 
 
(223,813)
Administrative expenses
 
 
(1,269)
 
 
Net Increase
 
 
336,935
 
 
Net Assets Available
 
for Benefits, December 31, 2019
 
$2,506,531
 
 
 
See Notes to Financial Statements.
 
 
4
 
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements
 
(Dollars in Thousands)
 
NOTE 1. PLAN DESCRIPTION
 
The BellSouth Savings and Security Plan (Plan) is a
 
defined contribution plan originally established by BellSouth
 
Corporation
(BellSouth) to provide a convenient way for eligible
 
nonmanagement employees of participating BellSouth companies
 
to save on a
regular and long-term basis. In December 2006, BellSouth
 
was acquired by AT&T
 
Inc. (AT&T
 
or the Company). The following
description of the Plan provides only general information.
 
The Plan has detailed provisions covering participant eligibility,
 
participant
allotments from pay,
 
participant withdrawals, participant loans, employer contributions
 
and related vesting of contributions and Plan
expenses. The Plan text and prospectus include
 
complete descriptions of these and other Plan provisions. The
 
Plan is subject to the
provisions of the Employee Retirement Income Security
 
Act of 1974, as amended (ERISA).
 
The Plan participates in the AT&T
 
Savings Group Investment Trust (Group
 
Trust) with respect to the AT&T
 
Stable Value
 
Fund and
International Stock Fund. The Bank of New York
 
Mellon Corporation (BNY Mellon) serves as trustee for both
 
the Group Trust and
the trust holding the Plan’s
 
assets, known as the BellSouth Savings and Security Plan Trust.
 
Fidelity Investments Institutional
Operations Company,
 
Inc. (Fidelity) serves as recordkeeper for the Plan. During 2019
 
and 2018,
 
participants could invest their
contributions in one or more of fourteen funds in 1% increments:
 
 
• AT&T
 
Shares Fund
• T.
 
Rowe Price Mid-Cap Growth Fund
• Bond
 
Fund
• Indexed
 
Stock Fund
• Fidelity
 
Growth and Income Portfolio **
• Russell
 
1000 Growth Index
• Balanced
 
Fund
• LifePath
 
Funds (based on retirement date)
• AT&T
 
Stable Value
 
Fund *
• DFA
 
U.S. Small Cap Value
 
Portfolio
• DFA
 
U.S. Large Cap Value
 
Portfolio II
• Small
 
and Mid-Sized U.S. Stock Index Fund **
• International
 
Stock Index Fund
• AT&T
 
International Stock Fund *
* Investment fund option of the Group Trust
 
** Effective as of market close on June 29,
 
2018, the Fidelity Growth and Income Portfolio investment
 
option ceased to exist as an
investment option and the Small and Mid-Sized U.S. Stock
 
Index Fund was introduced.
 
Participants contribute to the Plan through payroll allotments.
 
Participants may also contribute amounts representing distributions
from other qualified defined benefit and defined contribution
 
plans (rollovers). The Company contributes to the Plan
 
by matching the
participants’ contributions based on the provisions of
 
the Plan. All contributions are participant directed.
 
Dividends on shares in the AT&T
 
Shares Fund can either be reinvested in the AT&T
 
Shares Fund on a quarterly basis, or paid into a
short-term interest bearing fund for distribution before
 
the end of the year. Interest
 
earned on dividends held in the short-term interest
bearing fund are used to purchase additional units of
 
the AT&T
 
Shares Fund in the participant’s
 
account. During 2019, Plan
participants elected to receive $1,372 in dividend distributions.
 
This amount is included in distributions on the Plan’s
 
Statement of
Changes in Net Assets Available
 
for Benefits.
 
Each participant is entitled to exercise voting rights attributabl
 
e
 
to the AT&T
 
shares allocated to their account and is notified by the
Company prior to the time that such rights may be exercised.
 
Subject to the fiduciary provisions of ERISA, the trustee will not
 
vote
any allocated shares for which instructions have
 
not been given by a participant. The trustee votes any
 
unallocated shares in the same
proportion as it votes those shares that were allocated
 
to the extent the proportionate vote is consistent with the trustee’s
 
fiduciary
obligations under ERISA. Participants have the same
 
voting rights in the event of a tender or exchange offer.
 
 
5
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
Although it has not expressed any intent to do
 
so, AT&T
 
has the right under the Plan to discontinue its contributions at
 
any time and to
terminate the Plan subject to the provisions of ERISA and
 
collectively bargained agreements. In the event that
 
the Plan is terminated,
subject to the conditions set forth by ERISA, the account
 
balances of all participants shall be 100% vested.
 
Administrative Expenses
Each participant in the Plan may be charged for
 
investment manager fees and administrative expenses,
including, trustee and other expenses considered reasonable
 
by the Plan administrator.
 
Investment manager fees are charged through
the applicable investment option. Administrative fees
 
are divided on a pro rata basis among investment options of the participant.
 
An
additional fee is charged to individual participants
 
for various services provided by the Plan’s
 
recordkeeper and other service
providers. Certain expenses are paid by the Plan, Group
 
Trust, or Company.
 
NOTE 2. ACCOUNTING POLICIES
 
The accompanying financial statements were prepared
 
in conformity with U.S. generally accepted accounting principles
 
(GAAP),
which require management to make estimates that affect
 
the amounts reported in the financial statements and accompanying
 
notes.
Actual results could differ from those estimates. Distributions
 
are recorded when paid.
 
Investment Valuation
 
and Income Recognition
 
Investments are stated at fair value except those investments that
 
are fully benefit
responsive which are stated at contract value. Fair value
 
is the price that would be received to sell an asset or paid to
 
transfer a liability
in an orderly transaction between market participants at
 
the measurement date. See Note 3 for discussion of fair value
 
measurements.
Investments in securities traded on a national securities exchange
 
are valued at the last reported sales price on the last business day of
the year. If no sale was reported
 
on that date, they are valued at the last reported bid price. Shares
 
of registered investment companies
(i.e. mutual funds) are valued based on quoted market
 
prices, which represent the net asset value of shares held
 
at year-end. Over-the-
counter securities (OTC) and government obligations are
 
valued at the bid price or the average of the bid and asked price
 
on the last
business day of the year from published sources where available
 
and, if not available, from other sources considered reliable.
Depending on the types and contractual terms of OTC derivatives,
 
fair value is measured using valuation techniques such as Black-
Scholes option price models, simulation models, or a
 
combination of various models.
 
Common/collective trust funds and 103-12 investment
 
entities (i.e. an investment entity that holds the assets of two or
 
more plans
which are not members of a related group or employee
 
benefit plan) are valued at quoted redemption values that represent
 
the net asset
values (NAV)
 
of units held at year-end. Publicly traded partnerships are valued
 
using trades on a national securities exchange based
on the last reported sales price on the last business day
 
of the year.
 
Investment contracts held by a defined contribution plan
 
are required to be reported at contract value. Contract
 
value is the relevant
measurement attribute for that portion of the net assets available
 
for benefits of a defined contribution plan attributable to fully
 
benefit-
responsive investment contracts because contract value
 
is the amount participants would receive if they were to initiate permitted
transactions under the terms of the Plan. The Group Trust
 
invests in fully benefit-responsive guaranteed investment contracts (GICs)
and synthetic guaranteed investment contracts (Synthetic
 
GICs). The underlying investments of the Synthetic GICs are
 
owned by the
Group Trust and are comprised of
 
corporate bonds and notes, registered investment companies and
 
government securities and are also
valued as described above. The contract value of
 
the fully benefit-responsive investment contracts represents contributions
 
plus
earnings, less participant withdrawals and administrative expenses.
 
Purchases and sales of securities are reflected as of
 
the trade date. Dividend income is recognized on the ex-dividend
 
date. Interest
earned on investments is recognized on the accrual basis.
 
Net appreciation (depreciation)
 
includes the Plan’s gains
 
and losses on
investments bought and sold as well as held during
 
the year. Transfers
 
in and out of Level 1 (quoted market prices), Level 2 (other
significant observable inputs) and Level 3 (significant
 
unobservable inputs) are recognized on the period ending
 
date.
 
Notes Receivable from Participants
Notes receivable from participants represent participant loans
 
that are recorded at their unpaid
principal balance plus any accrued, but unpaid interest. Interest income
 
on notes receivable from participants is recorded when it is
earned. Related fees are recorded as administrative expenses and
 
are expensed when they are incurred. No allowance for credit
 
losses
has been recorded as of December 31, 2019 or 2018. If
 
a participant ceases to make loan repayments and the Plan administrator deems
the participant loan to be a distribution, the participant
 
loan balance is reduced and a distribution is recorded.
 
 
 
6
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
 
Recent Accounting Standards
 
In February 2017, the Financial Accounting Standards
 
Board (FASB) issued Accounting
 
Standards Update No. 2017-06 “Employee
Benefit Plan Master Trust Reporting”
 
(ASU 2017-06). ASU 2017-06 requires plans to report interests in a master
 
trust and changes in
the value of that interest as separate line items on
 
the plan’s financial statements. The
 
plans must also disclose the master trust’s
investments by general type as well as other assets and liabilities and
 
disclose the dollar amount of the plan’s
 
interest in each category
disclosed. The new standard is effective for
 
fiscal years beginning after December 15, 2018 with retrospective
 
application. The Plan
has adopted this standard retrospectively.
 
In July 2018, the FASB
 
issued Accounting Standards Update No. 2018
 
-09 “Codification Improvements” (ASU-2018-09). ASU 2018-
09 requires a plan to evaluate its investments to determine
 
whether a readily determinable fair value exists or if investments
 
qualify for
the net asset value per share practical expedient and can
 
be excluded from the fair value hierarchy disclosure. The
 
new standard is
effective for fiscal years beginning after December
 
15, 2018. The Plan has adopted this standard retrospectively
 
.
 
In August 2018, the FASB
 
issued Accounting Standards Update No. 2018-13 “Fair
 
Value
 
Measurement (Topic
 
820) Disclosure
Framework-
 
Changes to the Disclosure Requirements for Fair Value
 
Measurement” (ASU 2018-13). ASU 2018-13 eliminates and
modifies certain disclosure requirements for fair
 
value measurements of non-public entities. The eliminated
 
disclosure requirements
include (i) the amount of and reasons for transfers between
 
Level 1 and Level 2 of the fair value hierarchy,
 
(ii) the policy for timing of
transfers between fair value hierarchy levels, (iii) the
 
valuation processes for Level 3 fair value measurements
 
and (iv) the changes in
unrealized gains and losses for the period included in
 
earnings for recurring Level 3 fair value measurements held at
 
the end of the
reporting period. The modified disclosure requirements
 
include (i) In lieu of a rollforward for Level 3 fair value measurements
disclosing the transfers into and out of Level 3 of the fair
 
value hierarchy and purchases and issuances of Level 3 assets and
 
liabilities
and (ii) for entities that use the practical expedient measure
 
of fair value the requirement disclosing the timing of liquidation
 
of an
investee’s assets and the
 
date when restrictions from redemption might lapse only
 
if the investee has communicated the timing to the
entity or announced the timing publicly.
 
The new standard is effective for fiscal years beginning
 
after December 15, 2019 with certain
retrospective applications. Early adoption is permitted.
 
Management is currently evaluating this updated guidance.
NOTE 3. FAIR VALUE
 
MEASUREMENTS
 
Accounting Standards Codification 820,
Fair Value
 
Measurement
, establishes a framework for measuring fair value. That framework
provides a fair value hierarchy that prioritizes the inputs to
 
valuation techniques used to measure fair value. The
 
hierarchy gives the
highest priority to unadjusted quoted prices in active
 
markets for identical assets or liabilities (Level 1 measurements) and
 
the lowest
priority to unobservable inputs (Level 3 measurements).
 
The three levels of the fair value hierarchy are described below:
 
Level 1 Inputs
 
to the valuation methodology are unadjusted quoted prices for identical
 
assets or liabilities in active markets that
the Plan has the ability to access.
 
Level 2 Inputs
 
to the valuation methodology include:
 
• Quoted
 
prices for similar assets and liabilities in active markets;
 
• Quoted
 
prices for identical or similar assets or liabilities in inactive
 
markets;
 
• Inputs
 
other than quoted market prices that are observable for the asset or liability;
 
• Inputs
 
that are derived principally from or corroborated by observable market
 
data by correlation or other means.
 
If the asset or liability has a specified (contractual) term, the
 
Level 2 input must be observable for substantially the full
term of the asset or liability.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
Level 3 Inputs
 
to the valuation methodology are unobservable and significant to
 
the fair value measurement.
 
The asset’s or liability’s
 
fair value measurement level within the fair value hierarchy
 
is based on the lowest level of any input that is
significant to the fair value measurement. Valuation
 
techniques used need to maximize the use of observable inputs
 
and minimize the
use of unobservable inputs.
 
The valuation methodologies described in Note 2 may produce
 
a fair value calculation that may not be indicative of net realizable
value or reflective of future fair values. Furthermore,
 
while Plan management believes its valuation methods are
 
appropriate and
consistent with other market participants, the use of
 
different methodologies or assumptions to determine
 
the fair value of certain
financial instruments could result in a different
 
fair value measurement at the reporting date. There have been
 
no changes in the
methodologies used at December 31, 2019 and 2018.
 
 
See Note 4 for fair value hierarchy for the Group Trust’s
 
and Plan’s investments.
 
 
NOTE 4. INVESTMENTS
 
The Plan held investments in its own trust and in
 
the Group Trust (through participation in the AT&T
 
Stable Value
 
Fund and AT&T
International Stock Fund) as of December 31, 2019
 
and 2018.
 
The following table sets forth by level, within the fair
 
value hierarchy, the
 
Plan’s assets, other than the Plan’s
 
investment in the Group
Trust, at fair value as of December
 
31, 2019:
 
 
 
Plan Assets at Fair Value as of December 31, 2019
 
 
 
Level 1
 
 
Level 2
 
 
Level 3
 
 
Total
 
 
Interest bearing investments
 
$ 895
 
$ 2,107
 
$ —
 
$ 3,002
 
AT&T
 
common stock
 
 
 
392,583
 
 
 
 
 
 
 
 
392,583
 
Mutual funds or exchange-traded funds
 
 
 
635,427
 
 
 
 
 
 
 
 
635,427
 
Corporate debt
 
 
 
 
 
26,039
 
 
 
 
 
 
26,039
 
Mortgage-backed securities
 
 
 
 
 
40,044
 
 
 
 
 
 
40,044
 
Government debt
 
 
 
 
 
23,458
 
 
 
 
 
23,458
 
Futures
 
 
 
227
 
 
 
 
 
 
227
 
 
 
 
 
 
Total
 
assets in fair value hierarchy
$1,029,132
$ 91,648
$ —
 
$ 1,120,780
 
 
 
 
 
Common/collective trusts measured at net asset value:
 
 
 
 
U.S. index stock fund
1
 
 
 
 
 
 
423,222
 
International index stock fund
2
 
 
 
 
 
 
57,933
 
Blended equity & debt
3
 
 
 
 
 
 
290,385
 
Bond index fund
4
 
 
 
 
 
 
28,131
 
 
 
 
 
 
Total
 
assets at fair value
 
 
 
$ 1,920,451
 
 
 
 
 
1
This category includes common/collective trust funds
 
with an objective of providing investment results that approximate the
overall performance of the common stocks included
 
in the Standard and Poor’s Composite Stock Price Index
 
of 500 stocks (the
“S&P 500®”),
 
the Russell 1000 Index and the Dow Jones U.S. Completion Total
 
Stock Market Index.
 
There are currently no
redemption restrictions on these investments.
 
2
 
This category includes a common/collective trust fund
 
with an objective of providing investment results that approximate the
overall performance of the common stocks included
 
in the All Country World
 
Index ex U.S. Index. Except for a short-term
trading fee applicable to certain participant transactions, there
 
are currently no redemption restrictions on this investment.
 
3
 
This category includes common/collective trust funds
 
also known as LifePath Portfolios which are well diversified
 
portfolios
that adjust the mix of the various underlying investments over
 
time. The change in allocation of investments is designed to move
from a more aggressive investment strategy to a more
 
conservative strategy as the participants come closer to retirement. The
year associated with the fund identification denotes the
 
projected year of retirement of the participant selecting the fund. There
are currently no redemption restrictions on these investments.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
4
This category includes
 
a common/collective trust fund with an
 
objective to approximate the overall performance of the
 
Barclays
Capital Aggregate Bond Index. There are currently
 
no redemption restrictions on these investments.
 
 
The following table sets forth by level, within the fair
 
value hierarchy, the
 
Plan’s assets, other than the Plan’s
 
investment in the Group
Trust, at fair value as of December
 
31, 2018:
 
 
 
Plan Assets at Fair Value as of December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Interest bearing investments
 
$ 894
 
$ 16,101
 
$ —
 
$ 16,995
 
AT&T
 
common stock
 
 
 
306,853
 
 
 
 
 
 
 
 
 
306,853
 
Mutual funds or exchange-traded funds
 
 
 
524,126
 
 
 
 
 
 
 
 
 
524,126
 
Corporate debt
 
 
 
 
 
 
26,914
 
 
 
 
 
 
26,914
 
Mortgage-backed securities
 
 
 
 
 
 
38,541
 
 
 
 
 
 
38,541
 
Government debt
 
 
 
 
 
8,765
 
 
 
 
 
8,765
 
Futures
 
 
 
62
 
 
 
 
 
 
62
 
 
 
 
 
 
Total assets in fair value
 
hierarchy
 
$ 831,935
 
$ 90,321
 
$ —
 
$ 922,256
 
 
 
 
 
 
Common/collective trusts measured at net asset value:
 
 
 
 
U.S. index stock fund
1
 
 
 
 
 
 
327,383
 
International index stock fund
2
 
 
 
 
 
 
45,420
 
Blended equity & debt
3
 
 
 
 
 
 
256,755
 
Bond index fund
4
 
 
 
 
 
 
23,355
 
 
 
 
 
 
Total assets at fair value
 
 
 
 
$ 1,575,169
 
 
 
 
 
 
1
This category includes common/collective trust funds
 
with an objective of providing investment results that approximate the
overall performance of the common stocks included
 
in the Standard and Poor’s Composite Stock Price Index
 
of 500 stocks (the
“S&P 500®”),
 
the Russell 1000 Index and the Dow Jones U.S. Completion Total
 
Stock Market Index.
 
There are currently no
redemption restrictions on these investments.
 
2
 
This category includes a common/collective trust fund
 
with an objective of providing investment results that approximate the
overall performance of the common stocks included
 
in the All Country World
 
Index ex U.S. Index. Except for a short-term
trading fee applicable to certain participant transactions, there
 
are currently no redemption restrictions on this investment.
 
3
 
This category includes common/collective trust funds
 
also known as LifePath Portfolios which are well diversified
 
portfolios
that adjust the mix of the various underlying investments over
 
time. The change in allocation of investments is designed to move
from a more aggressive investment strategy to a more
 
conservative strategy as the participants come closer to retirement. The
year associated with the fund identification denotes the
 
projected year of retirement of the participant selecting the fund. There
are currently no redemption restrictions on these investments.
 
4
 
This category includes
 
a common/collective trust fund with an
 
objective to approximate the overall performance of the
 
Barclays
Capital Aggregate Bond Index. There are currently
 
no redemption restrictions on these investments.
 
 
 
 
 
 
 
 
 
9
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
 
AT&T Savings Group
 
Investment Trust
 
Investments
 
AT&T
 
established the Group Trust to manage
 
assets of pooled investment options among various AT&T
 
sponsored employee benefit
trusts. Each participating trust’s
 
interest in the investment fund options (i.e., separate accounts)
 
of the Group Trust is based on account
balances of the participants and their elected investment
 
fund options. The Group Trust assets are allocated
 
among the participating
plans by assigning to each trust those transactions (primarily
 
contributions, distributions, and expenses) that can
 
be specifically
identified and by allocating investment income and
 
administrative expenses to the individual plans on a daily basis based on
 
each
participant’s account balance
 
within each investment fund option.
 
The Plan’s interest in each
 
of the investment fund options within the Group Trust
 
is disclosed below as of December 31, 2019.
 
AT&T Total
Return Bond
Fund*
AT&T U.S.
Stock Fund*
AT&T International Stock Fund
AT&T Stable Value
 
Fund
Group Trust
AT&T Master
Trust
AT&T Master
Trust
AT&T Master
Trust
BellSouth
Savings and
Security Plan
AT&T Master
Trust
BellSouth
Savings and
Security Plan
Total
Interest bearing cash
 
$
 
1,060
 
 
$
 
-
 
 
$
 
2
 
 
$
 
-
 
 
$
 
-
 
 
$
 
-
 
 
$
 
1,062
 
Foreign cash
 
7,378
 
 
-
 
 
77
 
 
1
 
 
-
 
 
-
 
 
7,456
 
Mortgage-backed securities
 
379,956
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
379,956
 
Corporate debt
 
847,135
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
847,135
 
Government securities
 
195,789
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
195,789
 
Common/collective trust funds
 
1,090,769
 
 
2,485,301
 
 
447,390
 
 
6,544
 
 
-
 
 
-
 
 
4,030,004
 
Equities - common stock
 
-
 
 
398,270
 
 
199,296
 
 
2,915
 
 
-
 
 
-
 
 
600,481
 
Equities - preferred stock
 
2,427
 
 
-
 
 
3,742
 
 
55
 
 
-
 
 
-
 
 
6,224
 
Futures
 
(1,714)
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(1,714)
Registered investment companies
 
269,023
 
 
64,059
 
 
4,581
 
 
67
 
 
74,332
 
 
6,163
 
 
418,225
 
Group Trust investments at fair value
 
2,791,823
 
 
2,947,630
 
 
655,088
 
 
9,582
 
 
74,332
 
 
6,163
 
 
6,484,618
 
receivable from the Time Warner Defined
Contribution Plans Master Trust
 
220,271
 
 
-
 
 
315,016
 
 
-
 
 
478,443
 
 
-
 
 
1,013,730
 
Unsettled trades/other
 
(203,119)
 
(196)
 
1,326
 
 
19
 
(1,717)
 
323
 
(203,364)
Fully benefit-responsive investments contracts
valued at contract value
 
-
 
 
-
 
 
-
 
 
-
 
 
6,243,864
 
 
517,689
 
 
6,761,553
 
Group Trust net assets
 
$
 
2,808,975
 
 
$
 
2,947,434
 
 
$
 
971,430
 
 
$
 
9,601
 
 
$
 
6,794,922
 
 
$
 
524,175
 
$
 
14,056,537
 
*
 
BellSouth Savings and Security Plan does not hold
 
any investments in AT&T
 
Total Return Bond
 
Fund or AT&T
 
U.S. Stock Fund.
 
 
 
 
 
 
 
 
 
 
 
 
10
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
 
The Plan’s interest in each
 
of the investment fund options within the Group Trust
 
is disclosed below as of December 31, 2018.
 
 
AT&T Total
Return Bond
Fund*
AT&T U.S.
Stock Fund*
AT&T International Stock
Fund
AT&T Stable Value
 
Fund
Group Trust
AT&T
Master Trust
AT&T
Master Trust
AT&T
Master Trust
BellSouth
Savings and
Security Plan
AT&T
Master Trust
BellSouth
Savings and
Security Plan
Total
Interest bearing cash
 
$
 
8,064
 
 
$
 
500
 
 
$
 
3
 
 
$
 
-
 
 
$
 
-
 
 
$
 
-
 
 
$
 
8,567
 
Foreign cash
 
3,892
 
 
-
 
 
16
 
 
-
 
 
-
 
 
-
 
 
3,908
 
Mortgage-backed securities
 
267,127
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
267,127
 
Corporate debt
 
712,633
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
712,633
 
Government securities
 
315,654
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
315,654
 
Common/collective trust funds
 
756,427
 
 
2,161,448
 
 
155,359
 
 
2,163
 
 
-
 
 
-
 
 
3,075,397
 
103-12 investment entities
 
-
 
 
-
 
 
233,699
 
 
3,253
 
 
-
 
 
-
 
 
236,952
 
Equities - common stock
 
-
 
 
324,930
 
 
191,236
 
 
2,662
 
 
-
 
 
-
 
 
518,828
 
Equities - preferred stock
 
-
 
 
-
 
 
4,466
 
 
62
 
 
-
 
 
-
 
 
4,528
 
Futures
 
(245)
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(245)
Registered investment companies
 
291,899
 
 
6,090
 
 
3,487
 
 
49
 
 
171,316
 
 
14,400
 
 
487,241
 
Group Trust investments at fair value
 
2,355,451
 
 
2,492,968
 
 
588,266
 
 
8,189
 
 
171,316
 
 
14,400
 
 
5,630,590
 
Unsettled trades/other
 
(395,768)
 
(263)
 
790
 
 
11
 
 
(1,140)
 
369
 
(396,001)
Fully benefit-responsive investments
contracts valued at contract value
 
-
 
 
-
 
 
-
 
 
-
 
 
6,299,631
 
 
529,520
 
 
6,829,151
 
Group Trust net assets
 
$
 
1,959,683
 
 
$
 
2,492,705
 
 
$
 
589,056
 
$
 
8,200
 
 
$
 
6,469,807
 
 
$
 
544,289
 
$
 
12,063,740
 
*
 
BellSouth Savings and Security Plan does not hold
 
any investments in AT&T
 
Total Return Bond
 
Fund or AT&T
 
U.S. Stock Fund.
 
 
Net Appreciation in Fair Value
 
of Group Trust
 
Investments and
 
Total
 
Investment Income for the Year
 
Ended December 31, 2019
 
 
 
Group
Trust
 
 
Net appreciation in fair value of Group Trust
 
Investments
 
$
 
913,769
Investment Income:
 
Interest
 
226,978
Dividends
 
22,461
Less: investment management expenses
 
(9,179)
 
 
Net investment income of Group Trust
 
Investments
 
$
 
1,154,029
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
 
The following tables sets forth by level, within the fair
 
value hierarchy, the
 
Group Trust’s
 
assets at fair value as of December 31, 2019
and 2018:
 
 
 
Group Trust Assets at Fair Value
December 31, 2019
 
Level 1
 
 
Level 2
 
 
Level 3
 
 
Total
 
 
Corporate debt
 
$ —
 
$ 841,471
 
$ 5,664
 
$ 847,135
 
Mortgage-backed securities
 
 
 
 
376,318
 
 
3,638
 
 
379,956
 
Interest bearing cash
 
 
 
 
1,062
 
 
 
 
1,062
 
Foreign cash
 
 
7,456
 
 
 
 
 
 
7,456
 
Equities - common stock
 
 
598,435
 
 
 
 
2,046
 
 
600,481
 
Equities - preferred stock
 
 
3,797
 
 
2,427
 
 
 
 
6,224
 
Futures
 
 
(1,713)
 
(1)
 
 
 
 
(1,714)
Registered investment companies
 
 
418,225
 
 
 
 
 
 
418,225
 
Government securities
 
195,789
 
195,789
 
 
 
 
 
Total
 
assets in fair value hierarchy
$1,026,200
$ 1,417,066
$ 11,348
 
$ 2,454,614
 
 
 
 
 
Investments measured at net asset value
 
 
 
 
U.S. common/collective trusts
1
 
 
 
 
 
3,525,120
 
International common/collective trusts
2
 
 
 
 
 
187,908
 
103-12 investments
3
 
 
 
 
 
266,026
 
Non-publicly traded registered investments companies
4
 
 
 
 
50,950
 
 
 
 
 
Total
 
assets at fair value
 
 
 
$ 6,484,618
 
 
 
 
 
1
 
The objective of the common/collective trust funds held
 
in the AT&T
 
U.S. Stock Fund is to deliver diversified exposure to the
large-capitalization U.S. equity market
 
as represented by the Russell 3000 Index. The objective of the
 
common/collective trust
funds held in the AT&T
 
Total Return Bond
 
Fund is to deliver diversified exposure to the fixed income market
 
as represented by
the Bloomberg Barclays Aggregate Index. There
 
are currently no redemption restrictions on these investments.
 
2
 
The objective of the common/collective trust funds held
 
in the AT&T
 
International Stock Fund is to provide diversified
exposure to international markets as represented by
 
the All Country World
 
Index ex U.S., MSCI Emerging Markets Net
Dividend Index, MSCI Australia Index and MSCI Canada
 
Index. There are currently no redemption restrictions on these
investments.
 
3
 
The objective of these equity commingled funds is to provide
 
diversified exposure to international markets as represented
 
by the
All Country World
 
Index ex U.S. that invest in both developed and emerging
 
countries. These funds have redemption
restrictions limited to daily and monthly settlement.
 
4
 
These are non-publicly traded registered investment companies,
 
consisting of a short-term floating rate portfolio
 
plus publicly-
traded high-yield and asset-backed fixed income securities.
 
The fair value of the investments in this group have been
 
estimated
using the net asset values reported by the fund manager.
 
These funds are utilized on a discretionary basis as part
 
of a broad fixed
income mandate. These are open-ended funds, with no
 
final termination dates. There are currently no redemption
 
restrictions on
this investment.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
 
 
Group Trust Assets at Fair Value
December 31, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Corporate debt
 
$ —
 
$ 712,633
 
$ —
 
$ 712,633
 
Mortgage-backed securities
 
 
 
 
267,127
 
 
 
 
267,127
 
Interest bearing cash
 
 
 
 
8,567
 
 
 
 
8,567
 
Foreign cash
 
 
3,908
 
 
 
 
 
 
3,908
 
Equities - common stock
 
 
518,828
 
 
 
 
 
 
518,828
 
Equities - preferred stock
 
 
4,528
 
 
 
 
 
 
4,528
 
Futures
 
 
(245)
 
 
 
 
 
(245)
Registered investment companies
 
 
487,241
 
 
 
 
 
 
487,241
 
Government securities
 
 
 
 
315,654
 
 
 
 
315,654
 
 
 
 
 
 
Total assets in fair value
 
hierarchy
 
$ 1,014,260
 
$ 1,303,981
 
$ —
 
$ 2,318,241
 
 
 
 
 
 
Investments measured at net asset value
 
 
 
 
U.S. common/collective trusts
1
 
 
 
 
 
2,868,746
 
International common/collective trusts
2
 
 
 
 
 
157,522
 
103-12 investments
3
 
 
 
 
 
236,952
 
Non-publicly traded registered investments companies
4
 
 
 
 
49,129
 
 
 
 
 
Total assets at fair value
 
 
 
 
$ 5,630,590
 
 
 
 
 
 
1
 
The objective of the common/collective trust funds held
 
in the AT&T
 
U.S. Stock Fund is to deliver diversified exposure to the
large-capitalization U.S. equity market
 
as represented by the Russell 3000 Index. The objective of the
 
common/collective trust
funds held in the AT&T
 
Total Return Bond
 
Fund is to deliver diversified exposure to the fixed income market
 
as represented by
the Bloomberg Barclays Aggregate Index. There
 
are currently no redemption restrictions on these investments.
 
2
 
The objective of the common/collective trust funds held
 
in the AT&T
 
International Stock Fund is to provide diversified
exposure to international markets as represented by
 
the All Country World
 
Index ex U.S., MSCI Emerging Markets Net
Dividend Index, MSCI Australia Index and MSCI Canada
 
Index. There are currently no redemption restrictions on these
investments.
 
3
 
The objective of these equity commingled funds is to provide
 
diversified exposure to international markets as represented
 
by the
All Country World
 
Index ex U.S. that invest in both developed and emerging
 
countries. These funds have redemption
restrictions limited to daily and monthly settlement.
 
4
 
These are non-publicly traded registered investment companies,
 
consisting of a short-term floating rate portfolio
 
plus publicly-
traded high-yield and asset-backed fixed income securities.
 
The fair value of the investments in this group have been
 
estimated
using the net asset values reported by the fund manager.
 
These funds are utilized on a discretionary basis as part
 
of a broad fixed
income mandate. These are open-ended funds, with no
 
final termination dates. There are currently no redemption
 
restrictions on
this investment.
 
 
13
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
 
Derivative Financial Instruments
 
In the normal course of operations, Group Trust
 
assets and liabilities held in the AT&T
 
Stable Value
 
Fund (Stable Value
 
Fund) may
include derivative financial instruments (futures and foreign
 
currency forward contracts). These instruments involve,
 
in varying
degrees, elements of credit and market volatility risks in
 
excess of more traditional investment holdings such as equity and
 
debt
instruments. The intent is to use derivative financial instruments as
 
an economic hedge to manage market volatility and
 
foreign
currency exchange rate risk associated with the Stable Value
 
Fund’s investment assets. The gains
 
(losses) are located on the Statement
of Changes in Net Assets Available
 
for Benefits as Net Income from Investment in AT&T
 
Savings Group Investment Trust to the
extent of the Plan’s ownership
 
in the Group Trust. The Group Trust’s
 
fiduciaries do not anticipate any material adverse effect
 
on the
Group Trust’s
 
financial position resulting from its involvement in these instruments.
 
In addition to the derivative financial instruments held
 
by the Group Trust, the Plan also
 
holds derivative financial instruments as Plan
investments in its own trust. The income is located on
 
the Statements
 
of Changes in Net Assets Available
 
for Benefits a component of
net appreciation in fair value of investments.
 
At December 31, 2019 and 2018, the fair value of derivative financial
 
instruments held by the Group Trust and the
 
Plan was not
material.
 
Futures Contracts
 
The primary risk managed by the Group Trust
 
using futures contracts is the price risk associated with investments.
 
On behalf of the
Group Trust, investment managers enter
 
into various futures contracts to economically hedge investments. These
 
contracts, which are
considered derivatives under Accounting Standards Codification
 
Topic 815,
Derivatives and Hedging
 
are agreements between two
parties to buy or sell a security or financial interest at a
 
set price on a future date and are standardized and exchange
 
-traded. Upon
entering into such a contract on behalf of the Group
 
Trust, the investment manager is requ
 
ired to pledge to the broker an amount of
cash or securities equal to the minimum “initial margin”
 
requirements of the exchange on which the contract is traded.
 
Pursuant to the
contract, the investment manager agrees to receive
 
from or pay to the broker an amount of cash equal to the
 
daily fluctuation in the
value of the contract. Such receipts or payments are
 
known as variation margin and are recorded
 
on a daily basis by the trustee as a
realized gain or loss equal to the difference
 
in the value of the contract between daily closing prices. Upon
 
entering into such
contracts, the Group Trust bears the risk
 
of interest or exchange rates or securities prices moving unexpectedly,
 
in which case, the
Group Trust may not achieve the anticipated
 
benefits of the futures contracts and may realize a loss. With
 
futures, there is minimal
counterparty credit risk to the Group Trust
 
since futures are exchange traded and the exchange’s
 
clearinghouse, as counterparty to all
exchange traded futures, guarantees the futures against default.
 
The investments in the Group Trust
 
are subject to equity price risk and
interest rate risk, in the normal course of pursuing its investment
 
objectives. The U.S. interest rate futures held in the portfolio as
 
of
December 31, 2019 and 2018 were used primarily to hedge
 
and manage the duration risk of the portfolio.
 
The futures held in the Plan as of December 31, 2019
 
and 2018, were used primarily to maintain the target
 
allocations of the portfolio.
 
Foreign Currency Contracts
 
The primary risks managed by the Group Trust
 
using foreign currency forward contracts is the foreign currency
 
exchange rate risk
associated with the Group Trust’s
 
investments denominated in foreign currencies. On
 
behalf of the Group Trust, investment managers
enter into forward foreign currency contracts, which are
 
agreements to exchange foreign currencies at a specified future
 
date at a
specified rate, the terms of which are not standardized
 
on an exchange. These contracts are intended to minimize the
 
effect of currency
fluctuations on the performance of investments denominated
 
in foreign currencies. Although in some cases, forward foreign
 
currency
contracts are used to express a view on the direction
 
of a particular currency,
 
risk arises both from the possible inability of the
counterparties to meet the terms of the contracts (credit
 
risk) and from movement in foreign currency exchange rates (market
 
risk).
Foreign currency forward contracts are entered
 
into with major banks to minimize credit risk, and accordingly,
 
no credit reserve has
been established against these amounts. The contracts are
 
recorded at fair value on the date the contract is entered into,
 
which is
typically zero.
 
Fully Benefit-Responsive Investment Contracts
 
The Stable Value
 
Fund consists of fully benefit-responsive investment contracts
 
with various financial institutions and insurance
companies which can be accounted for by the Plans at contract value.
 
Generally contract value represents contributions made under
the contract, plus earnings, less participant withdrawals and
 
administrative expenses.
 
 
14
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
 
The investments held by the Stable Value
 
Fund as of December 31, 2019 include Synthetic GICs which are
 
fully benefit-responsive
investment contracts. Synthetic GICs are constructed
 
by combining a stable value insurance wrapper contract and a
 
fixed income
portfolio. The assets supporting the Synthetic GICs are
 
owned by the Group Trust and generally consist
 
of high quality fixed income
securities.
 
Traditional Guaranteed Investment
 
Contracts (“Traditional GICs” also known
 
as “General Account GICs”) are issued by insurance
companies and typically pay a guaranteed fixed or
 
floating rate of interest over the life of the contract with a
 
repayment of principal at
maturity. A Synthetic
 
GIC is similar to a Traditional GIC but has unbundled
 
the insurance and investment components of the
Traditional GIC.
 
Wrapper contracts are typically issued
 
by a bank or insurance company,
 
and seek to provide preservation of principal by permitting
daily liquidity at contract value for participant directed transactions,
 
in accordance with the provisions of the Plans. Wrapper
 
contracts
amortize the realized and unrealized gains and losses on
 
the underlying fixed income investments through adjustments to the
 
future
interest crediting rate of the contract. Wrapper
 
contracts typically contain contractual provisions that prevent
 
the interest crediting rate
from falling below zero.
 
In certain circumstances, the amount withdrawn from
 
the wrapper contract could be payable at fair value rather
 
than at contract value.
These events include termination of the Plans, a material
 
adverse change to the provisions of the Plans, if AT&T
 
elects to withdraw
from a wrapper contract in order to switch to a different
 
investment provider or, in the event of a spin-off
 
or sale of a division, if the
terms of the successor plan do not meet the contract
 
issuers’ underwriting criteria for issuance of a clone wrapper
 
contract. Events that
would permit a wrapper contract issuer to terminate a wrapper
 
contract upon short notice include the Plans’ loss of qualified status,
un-cured material breaches of responsibilities or material and
 
adverse changes to the provisions of the Plans. The Company
 
does not
believe any of the events are probable of occurring
 
in the foreseeable future.
 
Interest Bearing Cash
At December 31, 2019 and 2018, the Plan held approximately
 
$764 and $945, respectively,
 
of unallocated interest bearing cash related
to contributions, uncashed checks and fees pending allocation
 
to participant accounts or clearance through the plan funds.
 
Investment Risk
 
Investments held by the Group Trust
 
and the Plan are exposed to various risks, such as interest rate, market
 
and credit risks. Due to the
level of risk associated with certain investments, it is at least reasonably
 
possible that changes in the values of investments could
 
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. Participants’
 
accounts that are invested in the Company stock fund
 
option are exposed
to market risk in the event of a significant decline
 
in the value of AT&T
 
stock.
 
Additionally, the
 
Group Trust invests in securities with contractual
 
cash flows, such as asset backed securities, collateralized mortgage
obligations and commercial mortgage-backed securities. The value,
 
liquidity and related income of these securities are sensitive to
changes in economic conditions, including real estate value,
 
delinquencies or defaults, or both, and may be adversely
 
affected by shifts
in the market’s perception
 
of the issuers and changes in interest rates.
 
NOTE 5. PARTIES
 
-IN-INTEREST TRANSACTIONS
 
The Plan may,
 
at the discretion of the Plan’s participants
 
or via the Company match, invest in the Company’s
 
common stock. The Plan
held 10,045,635 and 10,751,695 shares of the Company’s
 
common stock as of December 31, 2019 and 2018, respectively.
 
Dividends
earned by the Plan on the Company’s
 
common stock were $20,050 for the year ended December
 
31, 2019.
 
Plan assets are invested in AT&T
 
stock either directly or through the Group Trust.
 
Because the Company is the plan sponsor,
transactions involving the Company’s
 
stock qualify as party-in-interest transactions. In addition, certain
 
investments held by the Plan
and Group Trust are managed by BNY Mellon
 
and Fidelity as trustee and record keeper,
 
respectively, as defined
 
by various
agreements. Therefore, these transactions and fees
 
paid to these entities qualify as parties-in-interest transactions.
 
All of these
transactions are exempt from the prohibited transactions
 
rules.
 
 
 
 
 
 
 
 
 
 
 
 
 
15
 
BellSouth Savings and Security Plan
 
Notes to Financial Statements (Continued)
 
(Dollars in Thousands)
 
 
 
NOTE 6. TAX STATUS
 
The Plan has received a determination letter from the
 
Internal Revenue Service (IRS) dated June 4, 2015, stating
 
that the Plan is
qualified under Section 401(a) of the Internal Revenue
 
Code (IRC) and, therefore, the related trust is exempt from taxation.
Subsequent to this determination by the IRS, the Plan
 
was amended. Once qualified, the Plan is required to operate in
 
conformity with
the IRC to maintain its qualification. The Plan administrator
 
has indicated that it will take the necessary steps, if any,
 
to bring the
Plan’s operations into
 
compliance with the Code.
 
Accounting principles generally accepted in the United
 
States require Plan management to evaluate uncertain tax positions
 
taken by
the Plan. The financial statement effects of
 
a tax position are recognized when the position is more likely than
 
not, based on the
technical merits, to be sustained upon examination by
 
the IRS. The Plan administrator has analyzed the tax positions taken
 
by the
Plan, and has concluded that as of December 31, 2019,
 
there were no uncertain positions taken or expected to
 
be taken. The Plan has
recognized no interest or penalties related to uncertain
 
tax positions. The Plan is subject to routine audits by taxing
 
jurisdictions;
however, there are currently no audits
 
for any tax periods in progress.
 
NOTE 7. 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 as of
 
December 31:
 
 
 
2019
 
 
2018
 
Net Assets Available
 
for Benefits per the financial statements
 
$ 2,506,531
$ 2,169,596
 
Distributions payable to participants
 
 
(299)
 
(368)
 
 
 
Net Assets Available
 
for Benefits per the Form 5500
 
$ 2,506,232
$ 2,169,228
 
 
 
 
Distributions payable to participants are recorded on the
 
Form 5500 for benefit claims that have been processed and approved
 
for
payment prior to December 31, but not yet paid as of
 
that date. The following is a reconciliation of distributions to participants
 
per the
financial statements to the Form 5500 for the year ended
 
December 31, 2019:
 
 
Distributions to participants per the financial statements
 
$ 223,813
 
Distributions payable to participants at December 31, 2018
 
 
(368)
Distributions payable to participants at December 31, 2019
 
 
 
299
 
 
 
Distributions to participants per the Form 5500
 
$ 223,744
 
 
 
 
NOTE 8. SUBSEQUENT EVENTS
 
In March 2020, the COVID-19 outbreak was declared a
 
pandemic by the World
 
Health Organization. The COVID-19 pandemic
 
has
led to extreme volatility in financial markets and
 
has affected, and may continue to affect,
 
the market price of AT&T
 
’s common stock
and other Plan assets. While the potential economic
 
impact brought by, and the
 
duration of, COVID-19 may be difficult to assess or
predict, a widespread pandemic could result in significant
 
disruption of global financial markets. The extent to which
 
COVID-19
impacts the financial markets will depend on future
 
developments that are highly uncertain and cannot be predicted.
The Coronavirus Aid Relief, and Economic Security Act (CARES Act)
 
was passed by the U.S. Senate on March 26,
 
2020. Section
2202 of the CARES Act permits eligible Plan participants to
 
request penalty-free distributions of up to $100,000
 
for qualifying
coronavirus-related reasons. These reasons include adverse
 
financial consequences due to being quarantined, furloughed, laid
 
off,
having work hours reduced or being unable to work
 
due to a lack of childcare due to COVID-19. Plan Management
 
is in the process
of reviewing the CARES Act and any resulting changes
 
to the Plan.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16
 
BELLSOUTH SAVINGS
 
AND SECURITY PLAN
 
EIN 58-1533433, PLAN NO. 004
 
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT
 
END OF YEAR)
 
December 31, 2019
 
(Dollars in Thousands)
 
Identity of Issue
Description of Investment
 
Current Value
 
Indexed Stock Fund
* NORTHERN TRUST S&P 500
 
INDEX STOCK
FUND
COMMON/COLLECTIVE TRUST FUND:
15,348 UNITS
 
$
 
176,658
 
* BLACKROCK RUSSELL 1000 INDEX FUND
COMMON/COLLECTIVE TRUST FUND:
5,670,836 UNITS
 
189,555
 
EXTENDED EQUITY MARKET FUND F
COMMON/COLLECTIVE TRUST FUND:
142,131 UNITS
 
10,795
 
Total Indexed
 
Stock Fund
 
377,008
 
Balanced Fund
* DREYFUS GOVERNMENT CASH
MANAGEMENT FUND
REGISTERED INVESTMENT COMPANY:
10,719,828 UNITS
 
10,720
 
* NORTHERN TRUST QM AGGREGATE
BOND INDEX FUND
COMMON/COLLECTIVE TRUST FUND:
48,137 UNITS
 
28,131
 
* NORTHERN TRUST S&P 500
 
INDEX STOCK
FUND
COMMON/COLLECTIVE TRUST FUND: 4,015
UNITS
 
46,214
 
FUTURES CONTRACT
S&P 500 EMINI INDEX FUT (CME) EXP MAR
20
 
239
 
FUTURES CONTRACT
US 10YR TREAS NTS FUTURE (CBT) EXP
MAR 20
 
596
 
US TREASURY BILL
0.000% 01/30/2020 DD 01/31/19
 
287
 
Total Balanced Fund
 
86,187
 
Registered Investment Companies
T ROWE PR INST M/C GRW
REGISTERED INVESTMENT COMPANY:
 
5,460,578 UNITS
 
333,696
 
DFA US SM CAP VAL
 
PORT
REGISTERED INVESTMENT COMPANY:
 
3,635,299 UNITS
 
125,200
 
DFA US LRG CAP
 
VAL
 
II-INST
REGISTERED INVESTMENT COMPANY:
 
9,176,749 UNITS
 
160,318
 
Total Registered Investment
 
Companies
 
619,214
 
LifePath Funds
* LIFEPATH
 
INDEX 2050 FUND F
COMMON/COLLECTIVE TRUST FUND:
500,882 UNITS
 
9,962
 
* LIFEPATH
 
INDEX 2040 FUND F
COMMON/COLLECTIVE TRUST FUND:
2,631,804 UNITS
 
68,018
 
 
 
 
 
 
 
 
 
17
 
BELLSOUTH SAVINGS
 
AND SECURITY PLAN
EIN 58-1533433, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT
 
END OF YEAR) (Continued)
December 31, 2019
(Dollars in Thousands)
Identity of Issue
Description of Investment
 
Current Value
 
* LIFEPATH
 
INDEX 2030 FUND F
COMMON/COLLECTIVE TRUST FUND:
4,726,828 UNITS
 
115,044
 
* LIFEPATH
 
INDEX RETIREMENT FD F
COMMON/COLLECTIVE TRUST FUND:
4,458,104 UNITS
 
97,361
 
Total LifePath Funds
 
290,385
 
AT&T Shares
 
Fund
* AT&T
 
INC
10,045,635 SHARES
 
392,583
 
* DREYFUS GOVT CAS MGMT INST 289
REGISTERED INVESTMENT COMPANY:
3,777,329 UNITS
 
3,777
 
Total AT&T
 
Shares Fund
 
396,360
 
Bond Fund
ABBVIE INC
4.500% 05/14/2035 DD 05/14/15
 
226
 
ABBVIE INC
4.700% 05/14/2045 DD 05/14/15
 
112
 
AMERICAN MUNI PWR-OHIO INC OH
6.449% 02/15/2044 DD 12/09/09
 
1,392
 
AMERICAN WATER
 
CAPITAL CORP
3.400% 03/01/2025 DD 08/14/14
 
315
 
AMGEN INC
3.125% 05/01/2025 DD 05/01/15
 
939
 
ANHEUSER-BUSCH INBEV WORLDWIDE
4.150% 01/23/2025 DD 01/23/19
 
327
 
ARROW ELECTRONICS INC
3.250% 09/08/2024 DD 09/08/17
 
308
 
ASHTEAD CAPITAL
 
INC 144A
4.000% 05/01/2028 DD 11/04/19
 
404
 
ASSET BACKED SECURITIES HE4 M1
VAR
 
RT
 
08/15/2033 DD 08/06/03
 
86
 
AVIATION
 
CAPITAL GROUP
 
LL 144A
4.125% 08/01/2025 DD 08/01/18
 
105
 
AVIATION
 
CAPITAL GROUP
 
LL 144A
VAR
 
RT
 
06/01/2021 DD 12/03/18
 
100
 
BAMLL COMMERCIAL MO RLJ A 144A
VAR
 
RT
 
04/15/2036 DD 05/30/19
 
200
 
BANC OF AMERICA FUNDING 2 D A1
VAR
 
RT
 
05/25/2035 DD 06/01/05
 
21
 
BANK 2019-BNK20 BN20 ASB
2.933% 09/15/2061 DD 09/01/19
 
411
 
BANK OF AMERICA CORP
VAR
 
RT
 
03/05/2024 DD 03/05/18
 
100
 
BANK OF AMERICA CORP
VAR
 
RT
 
03/05/2024 DD 03/05/18
 
623
 
BANK OF AMERICA CORP
VAR
 
RT
 
07/23/2024 DD 07/23/18
 
316
 
BAT
 
CAPITAL CORP
3.222% 08/15/2024 DD 08/15/18
 
102
 
BAYER US
 
FINANCE II LLC 144A
4.375% 12/15/2028 DD 06/25/18
 
218
 
BEAR STEARNS ARM TRUST 11
 
1A2
VAR
 
RT
 
02/25/2033 DD 12/01/02
 
2
 
BEAR STEARNS ARM TRUST 12 13A1
VAR
 
RT
 
02/25/2036 DD 12/01/05
 
8
 
BMW US CAPITAL
 
LLC 144A
VAR
 
RT
 
08/13/2021 DD 08/14/18
 
100
 
BOSTON SCIENTIFIC CORP
3.850% 05/15/2025 DD 05/12/15
 
164
 
BROADCOM CORP / BROADCOM CAYMA
3.000% 01/15/2022 DD 01/15/18
 
101
 
BROADCOM CORP / BROADCOM CAYMA
3.625% 01/15/2024 DD 01/15/18
 
415
 
CD 2018-CD7 MORTGAGE
 
T CD7 ASB
4.213% 08/15/2051 DD 08/01/18
 
328
 
CENTENE CORP 144A
4.750% 01/15/2025 DD 07/15/19
 
208
 
CHARTER COMMUNICATIONS
 
OPERATI
VAR
 
RT
 
02/01/2024 DD 07/03/18
 
206
 
 
 
18
 
BELLSOUTH SAVINGS
 
AND SECURITY PLAN
EIN 58-1533433, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT
 
END OF YEAR) (Continued)
December 31, 2019
(Dollars in Thousands)
Identity of Issue
Description of Investment
 
Current Value
 
CHASE ISSUANCE TRUST A1 A
VAR
 
RT
 
01/15/2022 DD 02/06/17
 
200
 
CHICAGO IL TRANSIT AUTH SALES
6.899% 12/01/2040 DD 08/06/08
 
135
 
CITIBANK NA
VAR
 
RT
 
07/23/2021 DD 07/23/18
 
402
 
CITIGROUP COMMERCIAL GC35 AAB
3.608% 11/10/2048 DD 12/01/15
 
938
 
CITIGROUP INC
VAR
 
RT
 
04/23/2029 DD 04/23/18
 
438
 
COMMIT TO PUR FNMA SF MTG
3.000% 02/01/2050 DD 02/01/20
 
4,256
 
COMMIT TO PUR FNMA SF MTG
3.500% 03/01/2050 DD 03/01/20
 
1,644
 
COMMIT TO PUR FNMA SF MTG
5.000% 01/01/2050 DD 01/01/20
 
1,069
 
COMMIT TO PUR GNMA II JUMBOS
3.000% 02/20/2050 DD 02/01/20
 
821
 
COMMIT TO PUR GNMA II JUMBOS
3.500% 02/20/2050 DD 02/01/20
 
980
 
COMMIT TO PUR GNMA II JUMBOS
4.000% 01/20/2050 DD 01/01/20
 
1,242
 
COMMIT TO PUR GNMA II JUMBOS
4.000% 02/20/2050 DD 02/01/20
 
414
 
CONSOLIDATED
 
EDISON CO OF NEW
VAR
 
RT
 
06/25/2021 DD 06/26/18
 
100
 
CONTINENTAL AIRLINES
 
2012-1 CL
4.150% 10/11/2025 DD 03/22/12
 
143
 
CSAIL 2015-C4 COMMERCIAL C4 A4
3.808% 11/15/2048 DD 11/01/15
 
213
 
CVS HEALTH
 
CORP
5.050% 03/25/2048 DD 03/09/18
 
178
 
DAIMLER FINANCE NORTH
 
AME 144A
3.400% 02/22/2022 DD 02/22/19
 
205
 
DAIMLER FINANCE NORTH
 
AME 144A
VAR
 
RT
 
02/15/2022 DD 08/15/19
 
202
 
DELL INTERNATIONAL
 
LLC / 144A
4.900% 10/01/2026 DD 03/20/19
 
110
 
DELL INTERNATIONAL
 
LLC / 144A
6.020% 06/15/2026 DD 06/01/16
 
460
 
DIGITAL
 
REALTY TRUST
 
LP
4.450% 07/15/2028 DD 06/21/18
 
221
 
DISCOVER FINANCIAL SERVICES
4.500% 01/30/2026 DD 01/31/19
 
219
 
* DREYFUS GOVT CAS MGMT INST 289
VAR
 
RT
 
12/31/2075 DD 06/03/97
 
952
 
DUKE ENERGY CAROLINAS LLC
3.750% 06/01/2045 DD 03/12/15
 
971
 
ENTERGY ARKANSAS LLC
3.500% 04/01/2026 DD 01/08/16
 
316
 
FEDERAL HOME LN BK CONS DISC
02/05/2020
 
997
 
FEDERAL HOME LN BK CONS DISC N
02/03/2020
 
897
 
FEDERAL HOME LN BKS CONS DISC
01/08/2020
 
200
 
FHLMC POOL #SD-8036
3.000% 12/01/2049 DD 12/01/19
 
3,248
 
FHLMC MULTICLASS
 
MTG 3626 ME
5.000% 01/15/2040 DD 01/01/10
 
22
 
FHLMC MULTICLASS
 
MTG K156 A1
3.700% 05/25/2030 DD 08/01/18
 
208
 
FLORIDA POWER & LIGHT CO
4.125% 02/01/2042 DD 12/13/11
 
573
 
FNMA POOL #0AL2617
6.000% 10/01/2040 DD 11/01/12
 
141
 
FNMA POOL #0AM0359
2.310% 08/01/2022 DD 08/01/12
 
100
 
FNMA POOL #0AS1338
5.000% 12/01/2043 DD 11/01/13
 
383
 
FNMA POOL #0AS2741
5.000% 06/01/2044 DD 05/01/14
 
257
 
FNMA POOL #0BM2007
4.000% 09/01/2048 DD 08/01/18
 
227
 
FNMA POOL #0MA3443
4.000% 07/01/2048 DD 07/01/18
 
2,920
 
FNMA POOL #0MA3495
4.000% 09/01/2048 DD 09/01/18
 
8,685
 
FNMA POOL #0MA3692
3.500% 07/01/2049 DD 06/01/19
 
2,668
 
FNMA POOL #0MA3871
3.000% 11/01/2049 DD 11/01/19
 
1,014
 
FNMA GTD REMIC P/T 03-25 KP
5.000% 04/25/2033 DD 03/01/03
 
77
 
FNMA GTD REMIC P/T 03-W1 1A1
VAR
 
RT
 
12/25/2042 DD 01/01/03
 
26
 
 
 
19
 
BELLSOUTH SAVINGS
 
AND SECURITY PLAN
EIN 58-1533433, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT
 
END OF YEAR) (Continued)
 
December 31, 2019
(Dollars in Thousands)
Identity of Issue
Description of Investment
 
Current Value
 
FNMA GTD REMIC P/T 19-25 FA
VAR
 
RT
 
06/25/2049 DD 05/25/19
 
555
 
FORD MOTOR CREDIT CO LLC
3.664% 09/08/2024 DD 09/08/14
 
201
 
FORD MOTOR CREDIT CO LLC
VAR
 
RT
 
04/05/2021 DD 03/05/18
 
199
 
GENERAL ELECTRIC CO
4.125% 10/09/2042 DD 10/09/12
 
41
 
GENERAL MOTORS FINANCIAL CO IN
3.150% 06/30/2022 DD 06/30/17
 
408
 
GNMA POOL #0705997
5.000% 01/15/2039 DD 01/01/09
 
59
 
GNMA POOL #0782523
5.000% 11/15/2035 DD 12/01/08
 
53
 
GNMA POOL #0AE7708
4.000% 08/15/2043 DD 08/01/13
 
13
 
GNMA POOL #0AL0766
3.500% 01/15/2045 DD 01/01/15
 
247
 
GNMA POOL #0AL5269
3.500% 02/15/2045 DD 02/01/15
 
432
 
GNMA POOL #0AN4392
4.000% 06/15/2045 DD 06/01/15
 
848
 
GNMA GTD REMIC P/T 12-H08 FC
VAR
 
RT
 
04/20/2062 DD 04/20/12
 
165
 
GNMA GTD REMIC P/T 15-H08 FB
VAR
 
RT
 
03/20/2065 DD 03/20/15
 
522
 
GNMA GTD REMIC P/T 16-H11
 
F
VAR
 
RT
 
05/20/2066 DD 05/20/16
 
249
 
GNMA GTD REMIC P/T 16-H23 FD
VAR
 
RT
 
10/20/2066 DD 10/20/16
 
23
 
GNMA GTD REMIC P/T 17-H14 FE
VAR
 
RT
 
06/20/2067 DD 06/20/17
 
548
 
GOLDMAN SACHS GROUP INC/THE
3.850% 07/08/2024 DD 07/08/14
 
846
 
GS MORTGAGE SECURITIE
 
GC26 AAB
3.365% 11/10/2047 DD 12/01/14
 
909
 
GS MORTGAGE SECURITIES
 
GC28 A5
3.396% 02/10/2048 DD 02/01/15
 
209
 
GSCG TRUST 2019-60 600C A 144A
2.936% 09/06/2034 DD 08/01/19
 
201
 
GSR MORTGAGE LOAN
 
TRUS AR6 1A1
VAR
 
RT 09/25/2035
 
DD 09/01/05
 
39
 
HOST HOTELS & RESORTS
 
LP
4.000% 06/15/2025 DD 05/15/15
 
643
 
INTERNATIONAL
 
FINANCE CORP
2.125% 04/07/2026 DD 04/07/16
 
709
 
INTERNATIONAL
 
LEASE FINANCE CO
8.625% 01/15/2022 DD 12/22/11
 
113
 
JOHN DEERE CAPITAL
 
CORP
VAR
 
RT
 
09/10/2021 DD 09/10/18
 
300
 
JPMBB COMMERCIAL MORTG
 
C31 ASB
3.540% 08/15/2048 DD 08/01/15
 
933
 
JPMBB COMMERCIAL MORTG
 
C32 ASB
3.358% 11/15/2048 DD 10/01/15
 
929
 
JPMBB COMMERCIAL MORTG
 
C33 ASB
3.562% 12/15/2048 DD 11/01/15
 
520
 
JPMDB COMMERCIAL MORTGA
 
C2 ASB
2.954% 06/15/2049 DD 05/01/16
 
409
 
JPMORGAN CHASE & CO
VAR
 
RT
 
03/09/2021 DD 03/09/17
 
100
 
JPMORGAN CHASE & CO
VAR
 
RT
 
07/23/2024 DD 07/23/18
 
605
 
KRAFT HEINZ FOODS CO
3.950% 07/15/2025 DD 07/15/16
 
424
 
MERCEDES-BENZ AUTO LEASE A A2
3.010% 02/16/2021 DD 01/30/19
 
412
 
MERRILL LYNCH
 
MORTGAGE IN E A1
VAR
 
RT
 
11/25/2029 DD 09/23/04
 
37
 
MIDAMERICAN ENERGY CO
4.400% 10/15/2044 DD 04/03/14
 
472
 
MILL CITY MORTGAGE GS2
 
A1 144A
VAR
 
RT
 
08/25/2059 DD 10/01/19
 
195
 
MORGAN STANLEY
VAR
 
RT
 
07/22/2025 DD 07/23/19
 
101
 
MORGAN STANLEY
3.875% 04/29/2024 DD 04/28/14
 
106
 
MORGAN STANLEY
3.700% 10/23/2024 DD 10/23/14
 
1,062
 
MORGAN STANLEY
 
CAPITAL
 
H3 ASB
4.120% 07/15/2051 DD 07/01/18
 
217
 
MORGAN STANLEY
 
CAPITAL
 
UBS8 A3
3.540% 12/15/2048 DD 12/01/15
 
210
 
MORGAN STANLEY
 
MORTGA 11AR
 
1A1
VAR
 
RT
 
01/25/2035 DD 12/29/04
 
21
 
NAVIENT
 
STUDENT LOA EA A1 144A
3.430% 12/15/2059 DD 11/15/18
 
111
 
 
 
20
 
BELLSOUTH SAVINGS
 
AND SECURITY PLAN
EIN 58-1533433, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT
 
END OF YEAR) (Continued)
December 31, 2019
(Dollars in Thousands)
Identity of Issue
Description of Investment
 
Current Value
 
NELNET STUDENT LOAN 2A A 144A
VAR
 
RT
 
06/27/2067 DD 04/30/19
 
389
 
NEW JERSEY ST TRANSPRTN
 
TRUST
2.631% 06/15/2024 DD 12/18/19
 
201
 
NEW RESIDENTIAL M RPL3 A1 144A
VAR
 
RT
 
07/25/2059 DD 09/01/19
 
98
 
NEW YORK CITY NY TRANSITIONAL
5.750% 02/01/2035 DD 03/03/10
 
582
 
NEW YORK CITY NY TRANSITIONAL
5.767% 08/01/2036 DD 10/22/09
 
870
 
NEW YORK LIFE GLOBAL FUND 144A
VAR
 
RT
 
01/28/2021 DD 02/01/19
 
501
 
NEW YORK ST DORM AUTH ST PERSO
5.289% 03/15/2033 DD 10/14/10
 
486
 
NEW YORK ST URBAN DEV CORP SAL
2.150% 03/15/2025 DD 10/30/19
 
299
 
PENNSYLVANIA
 
ST HGR EDU ASSIST
VAR
 
RT
 
10/25/2036 DD 11/17/06
 
186
 
PHILIP MORRIS INTERNATIONAL
 
IN
3.250% 11/10/2024 DD 11/10/14
 
945
 
PLAINS ALL AMERICAN PIPELINE L
4.650% 10/15/2025 DD 08/24/15
 
429
 
PRIME MORTGAGE TRUST
 
2 CL1 1A2
VAR
 
RT
 
02/25/2034 DD 01/25/04
 
7
 
PRINCETON UNIVERSITY
5.700% 03/01/2039 DD 01/21/09
 
416
 
PUBLIC PWR GENERATION
 
AGY NE R
7.242% 01/01/2041 DD 07/16/09
 
127
 
REYNOLDS AMERICAN INC
4.000% 06/12/2022 DD 06/12/15
 
208
 
SABINE PASS
 
LIQUEFACTION
 
LLC
VAR
 
RT
 
02/01/2021 DD 02/01/14
 
103
 
SANTANDER HOLDINGS
 
USA INC
3.400% 01/18/2023 DD 12/18/17
 
410
 
SBA GTD PARTN
 
CTFS 2003-20C 1
4.500% 03/01/2023 DD 03/12/03
 
322
 
SBA GTD PARTN
 
CTFS 2005-20B 1
4.625% 02/01/2025 DD 02/16/05
 
226
 
SBA GTD PARTN
 
CTFS 2008-20D 1
5.370% 04/01/2028 DD 04/16/08
 
223
 
SBA GTD PARTN
 
CTFS 2008-20E 1
5.490% 05/01/2028 DD 05/14/08
 
205
 
SBA GTD PARTN
 
CTFS 2008-20F 1
5.680% 06/01/2028 DD 06/11/08
 
78
 
SBA GTD PARTN
 
CTFS 2009-20A 1
5.720% 01/01/2029 DD 01/14/09
 
30
 
SG COMMERCIAL MORTGAGE
 
S C5 A4
3.055% 10/10/2048 DD 07/01/16
 
206
 
SLH PROXY LONG EXPOSURE
SLHOPNTA4
 
13
 
SLM STUDENT LOAN TRUST 2 9 A7A
VAR
 
RT
 
01/25/2041 DD 01/25/18
 
358
 
SLM STUDENT LOAN TRUST 20 4 A3
VAR
 
RT
 
01/25/2027 DD 05/19/05
 
149
 
SLM STUDENT LOAN TRUST 200 9 A
VAR
 
RT
 
04/25/2023 DD 08/28/08
 
90
 
SMB PRIVATE
 
EDUCATIO
 
C A1 144A
VAR
 
RT
 
09/15/2025 DD 09/19/18
 
53
 
SOFI CONSUMER LOAN P 3 A1 144A
3.200% 08/25/2027 DD 08/07/18
 
43
 
SOUTH DAKOTA ST
 
EDUCTNL ENHANC
3.539% 06/01/2022 DD 03/14/13
 
1,496
 
SOUTHERN CALIFORNIA GAS CO
4.450% 03/15/2044 DD 03/13/14
 
225
 
SPIRIT REALTY
 
LP
3.200% 01/15/2027 DD 09/16/19
 
200
 
STRUCTURED ADJUSTABLE
 
R 12 7A1
VAR
 
RT
 
09/25/2034 DD 08/01/04
 
60
 
STRUCTURED ASSET INVESTME 8 M1
VAR
 
RT
 
09/25/2034 DD 08/25/04
 
47
 
STRUCTURED ASSET MORTG
 
AR4 2A1
VAR
 
RT
 
12/19/2034 DD 07/30/04
 
29
 
SYNCHRONY FINANCIAL
3.950% 12/01/2027 DD 12/01/17
 
210
 
THORNBURG MORTGAGE
 
SECUR 1 I1A
VAR
 
RT
 
03/25/2044 DD 03/31/04
 
333
 
U S TREASURY BOND
2.750% 08/15/2047 DD 08/15/17
 
591
 
U S TREASURY BOND
3.000% 02/15/2048 DD 02/15/18
 
400
 
U S TREASURY BOND
3.125% 05/15/2048 DD 05/15/18
 
173
 
U S TREASURY BOND
3.000% 08/15/2048 DD 08/15/18
 
294
 
U S TREASURY BOND
3.000% 02/15/2049 DD 02/15/19
 
679
 
 
 
 
 
 
 
 
 
 
21
 
BELLSOUTH SAVINGS
 
AND SECURITY PLAN
EIN 58-1533433, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT
 
END OF YEAR) (Continued)
December 31, 2019
(Dollars in Thousands)
Identity of Issue
Description of Investment
 
Current Value
 
U S TREASURY BOND
2.875% 05/15/2049 DD 05/15/19
 
1,895
 
U S TREASURY BOND
2.250% 08/15/2049 DD 08/15/19
 
632
 
U S TREASURY NOTE
2.625% 02/15/2029 DD 02/15/19
 
2,651
 
U S TREASURY NOTE
2.375% 05/15/2029 DD 05/15/19
 
936
 
U S TREASURY NOTE
1.625% 08/15/2029 DD 08/15/19
 
1,755
 
U S TREASURY NOTE
1.250% 08/31/2024 DD 08/31/19
 
1,766
 
U S TREASURY NOTE
1.750% 11/15/2029 DD 11/15/19
 
789
 
UBS COMMERCIAL MORTGAG
 
C11 ASB
4.119% 06/15/2051 DD 07/01/18
 
216
 
UBS COMMERCIAL MORTGAG
 
C13 ASB
4.241% 10/15/2051 DD 10/01/18
 
220
 
US TREAS-CPI INFLAT
1.375% 02/15/2044 DD 02/15/14
 
260
 
US TREAS-CPI INFLAT
1.000% 02/15/2046 DD 02/15/16
 
597
 
US TREAS-CPI INFLAT
1.000% 02/15/2048 DD 02/15/18
 
808
 
VERIZON COMMUNICATIONS
 
INC
4.016% 12/03/2029 DD 06/03/19
 
1,172
 
VISA INC
3.150% 12/14/2025 DD 12/14/15
 
423
 
WALGREEN
 
CO
3.100% 09/15/2022 DD 09/13/12
 
306
 
WELLS FARGO & CO
3.000% 02/19/2025 DD 02/19/15
 
310
 
WELLS FARGO BANK
 
NA
VAR
 
RT
 
03/25/2020 DD 09/25/18
 
250
 
WELLS FARGO COMMERCIA
 
NXS4 ASB
3.522% 12/15/2048 DD 12/01/15
 
935
 
WELLS FARGO COMMERCIAL
 
C45 ASB
4.147% 06/15/2051 DD 07/01/18
 
327
 
WELLTOWER
 
INC
4.250% 04/15/2028 DD 04/10/18
 
439
 
WP CAREY INC
4.250% 10/01/2026 DD 09/12/16
 
218
 
Total Bond Fund
 
92,600
 
International Stock
INTL STOCK INDEX
BGI MSCI ACWI EX-US INDEX SUPERFUND
 
57,933
 
Interest Bearing Cash
* DREYFUS GOVT CAS MGMT INST 289
VAR
 
RT
 
12/31/2075 DD 06/03/97
 
764
 
* Notes Receivable from Participants
4.25% - 10.50%
 
 
59,979
 
Total
 
$
 
1,980,430
 
* Party-in-Interest
 
 
 
 
SIGNATURE
Pursuant to the requirements of the Securities Exchange
 
Act of 1934, the trustee (or other persons who administer the employee
benefit plan) have duly caused this annual report to
 
be signed by the undersigned thereunto duly authorized.
 
 
BellSouth Savings and Security Plan
By: AT&T
 
Services, Inc.,
Plan Administrator for the Foregoing Plan
By
/s/ Debra L. Dial
 
 
Debra L. Dial
 
Senior Vice President
 
and Controller
Date: June 29, 2020
 
 
 
 
 
EXHIBIT INDEX
 
Exhibit identified below,
 
Exhibits 23 is filed herein as exhibit hereto.
 
 
Exhibit
Number
 
 
 
 
 
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