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
In addition to pension benefits, AmSouth provides postretirement medical plans to all current employees and provides certain retired and grandfathered retired participants with postretirement healthcare benefits. Postretirement life insurance is also provided to a grandfathered group of employees and retirees.	Costs associated with these postretirement benefit plans are charged to operations based on actuarial calculations. The following table summarizes the change in benefit obligation and plan assets and the funded status of the pension and other postretirement plans at December 31, 2000 and 1999:
Retirement Plans Other Postretirement Benefits (Dollars in thousands) 2000  1999  2000  1999  Change in benefit obligation: Benefit obligation at January 1  $ 477,880  $ 488,284  $ 30,989  $ 23,993  Service cost 13,731  15,688  1,174  1,176  Interest cost 34,210  34,560  3,196  2,283  Acquisitions -0- -0- -0- 3,206  Curtailments (4,764) (842) -0- -0- Special termination benefits -0- 5,461  -0- -0- Amendments (16,968) 3,943  -0- -0- Actuarial loss/(gain) 3,943  (42,087) 11,837  2,621  Benefits and expenses paid (34,694) (27,127) (3,190) (2,290) Benefit obligation at December 31  473,338  477,880  44,006  30,989  Change in plan assets: Fair value of plan assets at January 1  652,204  616,432  3,509  3,577  Actual return on plan assets 19,391  51,623  578  109  Company contribution 7,178  11,276  -0- -0- Benefits and expenses paid (34,694) (27,127) (249) (177) Fair value of plan assets at December 31  644,079  652,204  3,838  3,509  Funded status of the plan 170,741  174,324  (40,168) (27,480) Unrecognized actuarial (gain) / loss (75,329) (124,696) 15,849  5,087  Unamortized prior service (credit)/cost (9,199) 7,077  (49) (1,140) Unrecognized net transition obligation 2,065  1,357  2,709  2,988  Prepaid/(accrued) benefit cost $ 88,278   $ 58,062  $ (21,659) $ (20,545) Amounts recognized in the statement of condition: Prepaid benefit cost $ 102,172  $ 75,748  $ 795  $ 698  Accrued benefit liability (17,145) (20,557) (22,454) (21,243) Intangible assets 3,251  2,871  -0- -0- Net amount recognized $ 88,278  $ 58,062  $ (21,659) $ (20,545) Assumptions: Discount rate 7.75% 7.75% 7.75% 7.75% Expected return on plan assets 9.50  9.50  6.50  6.50  Rate of compensation increase 5.50  5.50  N/A N/A