2000 Annual Report Contents... Front Cover Introduction Letter to Shareholders Strategic Overview 2000 Financial Information Management's Discussion & Analysis Management's Statement on Reporting Report of Independent Auditors Consolidated Statement of Condition Consolidated Statement of Earnings Consolidated Statement of Shareholder's Equity Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Board of Directors Management Committee Emeritus Board of Directors Corporate Information Back Cover

AmSouth Bancorporation and Subsidiaries Notes to Consolidated Financial Statements
NOTE 3–MERGER-RELATED COSTS
AmSouth recorded merger and integration charges of $77.4 million, $268.8 million and $103.4 million in 2000, 1999 and 1998, respectively. In addition, AmSouth recorded other merger-related charges of $32.8 million, $32.6 million and 18.3 million in 2000, 1999 and 1998, respectively.	Merger-related charges in 2000 were associated with the acquisition of First American. Merger-related charges of $301.4 million recorded in 1999 were associated with the acquisition of First American as well as conversion costs related to the acquisitions of Deposit Guaranty, Pioneer, MTB, CSB and Peoples. The components of the charges are shown below:
Years Ended December 31  (In millions) 2000  1999  1998  Merger and integration costs: Severance and personnel-related costs $ 15.9  $ 130.1  $ 25.8  Investment banking and other transaction costs 0.9  53.8  29.1  Occupancy and equipment charges 40.8  59.2  2.7  Systems and operations conversions 19.8  25.7  45.8  Total merger and integration costs 77.4  268.8  103.4  Other merger-related charges 32.8  32.6  18.3  Total merger-related charges $ 110.2  $ 301.4  $ 121.7
Severance and personnel-related costs included the cost of severance, retention, change-in-control, outplacement, and other benefits associated with the termination of employees primarily in corporate support and data processing functions. For the First American merger, approximately 2,200 positions were eliminated in 1999 and 2000 of which approximately 1,700 were through merger-related workforce reduction and 500 were through merger-related divestitures.	Occupancy and equipment charges represented lease termination costs and impairment of assets for redundant office space, equipment and branches vacated and disposed of as part of the integration plan. Systems and operations conversion costs resulted from the conversions and integration of the acquired branches and operations and included incremental costs such as special contract labor and incentives, consulting fees and mailing and preparation costs for customer communications for the conversion of customer accounts.