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
Other merger-related costs included printing and distribution of conversion related instructional materials and manuals and relocation expenses and, in 1999, a provision for losses resulting from systems conversions and process integration related to prior First American mergers. The 1999 loss provision covers dishonored return items, unidentified customer debits, unmatched or unlocated items, and other similar losses.	Also included in other merger-related costs in 1998 was charitable foundation costs related to the funding of a charitable foundation for the Deposit Guaranty market. The following table presents a summary of activity with respect to the merger and integration accrual:
(In millions) 2000  1999  1998  Balance at the beginning of the year $ 70.7  $ 18.8  $ -0- Provision charged to operating expense 44.8  301.4  121.7  Cash outlays (75.0) (150.9) (97.0) Noncash writedowns and charges (0.9) (98.6) (5.9) Balance at the end of the year $ 39.6  $ 70.7  $ 18.8
The components of the merger and integration accrual at December 31 were as follows:
(In millions) 2000  1999  Severance and personnel-related costs $ 24.8  $ 68.2  Occupancy and equipment charges 14.8  0.9  Systems and operations conversions -0- 0.1  Other merger and integration costs -0- 1.5  Total $ 39.6  $ 70.7
At December 31, 2000, the liability for severance and personnel-related costs was primarily accrued for retirement and severance liabilities that will be paid out over an extended period of time based on the retirement and life expectancy of the beneficiaries. The remaining occupancy and equipment accrual is primarily related to long-term lease agreements on redundant branch and office space vacated as part of the merger restructuring. This liability will be paid down over the lives of the various leases.	In addition to the merger-related costs, AmSouth also recorded, during 1999, the following charges related to the First American acquisition: an $8.0 million impairment charge on a portfolio investment and $7.6 million of charges related to conforming accounting adjustments. The impairment charge and $0.8 million of the conforming accounting adjustments were recorded as reductions to other noninterest revenues. $3.0 million of the conforming accounting charges were recorded in the provision for loan losses. The remaining $3.8 million of conforming accounting adjustments were recorded in various categories of noninterest expense.
NOTE 4–CASH AND DUE FROM BANKS
AmSouth’s banking subsidiaries are required to maintain reserve balances with the Federal Reserve Bank based on a percentage of deposits reduced by their cash on hand.	The average amount of those reserves was approximately $13,150,000 and $45,200,000 for the years ended December 31, 2000 and 1999, respectively.