SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11 -K
(Mark One)
☒
OF 1934
For the fiscal year ended December 31, 2019
OR
☐
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
Financial Statements:
Statements of Net Assets Available for Benefits as of December 31, 2019 and 2018
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2019
Notes to Financial Statements
Supplemental Schedule:
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year) as of December 31, 2019
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
1,575,169
Total Investments (See Note 4)
2,127,658
Notes receivable from participants
Participant contributions receivable
Employer contributions receivable
Interest receivable
Total Receivables
Total Assets
2,190,729
LIABILITIES
Administrative expenses payable
Due to broker for securities purchased
Total Liabilities
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
Employer contributions
Rollover contributions
Investment Income:
Net income from investment in AT&T Savings Group Investment Trust
Interest
Dividends
Net appreciation in fair value of investments
Interest income on notes receivable from participants
Distributions
Administrative expenses
Net Increase
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
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
Mutual funds or exchange-traded funds
Corporate debt
Mortgage-backed securities
Government debt
Futures
—
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
International index stock fund
2
Blended equity & debt
3
Bond index fund
4
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
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
Mutual funds or exchange-traded funds
Corporate debt
Mortgage-backed securities
Government debt
8,765
Futures
—
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
International index stock fund
2
Blended equity & debt
3
Bond index fund
4
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
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
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
Foreign cash
Mortgage-backed securities
Corporate debt
Government securities
Common/collective trust funds
Equities - common stock
Equities - preferred stock
Futures
Registered investment companies
Group Trust investments at fair value
receivable from the Time Warner Defined
Contribution Plans Master Trust
Unsettled trades/other
Fully benefit-responsive investments contracts
valued at contract value
Group Trust net assets
* 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
Foreign cash
Mortgage-backed securities
Corporate debt
Government securities
Common/collective trust funds
103-12 investment entities
Equities - common stock
Equities - preferred stock
Futures
Registered investment companies
Group Trust investments at fair value
Unsettled trades/other
Fully benefit-responsive investments
contracts valued at contract value
Group Trust net assets
* 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
Interest bearing cash
Foreign cash
Equities - common stock
Equities - preferred stock
Futures
Registered investment companies
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
International common/collective trusts
2
103-12 investments
3
Non-publicly traded registered investments companies
4
Total assets at fair value
$ 6,484,618
1
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
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
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
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
Interest bearing cash
Foreign cash
Equities - common stock
Equities - preferred stock
Futures
Registered investment companies
Government securities
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
International common/collective trusts
2
103-12 investments
3
Non-publicly traded registered investments companies
4
Total assets at fair value
$ 5,630,590
1
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
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
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
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
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
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
Distributions payable to participants at December 31, 2019
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
Indexed Stock Fund
* NORTHERN TRUST S&P 500 INDEX STOCK
FUND
COMMON/COLLECTIVE TRUST FUND:
15,348 UNITS
* BLACKROCK RUSSELL 1000 INDEX FUND
COMMON/COLLECTIVE TRUST FUND:
5,670,836 UNITS
EXTENDED EQUITY MARKET FUND F
COMMON/COLLECTIVE TRUST FUND:
142,131 UNITS
Total Indexed Stock Fund
377,008
Balanced Fund
* DREYFUS GOVERNMENT CASH
MANAGEMENT FUND
REGISTERED INVESTMENT COMPANY:
10,719,828 UNITS
* NORTHERN TRUST QM AGGREGATE
BOND INDEX FUND
COMMON/COLLECTIVE TRUST FUND:
48,137 UNITS
* NORTHERN TRUST S&P 500 INDEX STOCK
FUND
COMMON/COLLECTIVE TRUST FUND: 4,015
UNITS
FUTURES CONTRACT
S&P 500 EMINI INDEX FUT (CME) EXP MAR
20
FUTURES CONTRACT
US 10YR TREAS NTS FUTURE (CBT) EXP
MAR 20
US TREASURY BILL
0.000% 01/30/2020 DD 01/31/19
Total Balanced Fund
86,187
Registered Investment Companies
T ROWE PR INST M/C GRW
REGISTERED INVESTMENT COMPANY:
5,460,578 UNITS
DFA US SM CAP VAL PORT
REGISTERED INVESTMENT COMPANY:
3,635,299 UNITS
DFA US LRG CAP VAL II-INST
REGISTERED INVESTMENT COMPANY:
9,176,749 UNITS
Total Registered Investment Companies
619,214
LifePath Funds
* LIFEPATH INDEX 2050 FUND F
COMMON/COLLECTIVE TRUST FUND:
500,882 UNITS
* LIFEPATH INDEX 2040 FUND F
COMMON/COLLECTIVE TRUST FUND:
2,631,804 UNITS
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
* LIFEPATH INDEX 2030 FUND F
COMMON/COLLECTIVE TRUST FUND:
4,726,828 UNITS
* LIFEPATH INDEX RETIREMENT FD F
COMMON/COLLECTIVE TRUST FUND:
4,458,104 UNITS
Total LifePath Funds
290,385
AT&T Shares Fund
* AT&T INC
10,045,635 SHARES
* DREYFUS GOVT CAS MGMT INST 289
REGISTERED INVESTMENT COMPANY:
3,777,329 UNITS
Total AT&T Shares Fund
Bond Fund
ABBVIE INC
4.500% 05/14/2035 DD 05/14/15
ABBVIE INC
4.700% 05/14/2045 DD 05/14/15
AMERICAN MUNI PWR-OHIO INC OH
6.449% 02/15/2044 DD 12/09/09
AMERICAN WATER CAPITAL CORP
3.400% 03/01/2025 DD 08/14/14
AMGEN INC
3.125% 05/01/2025 DD 05/01/15
ANHEUSER-BUSCH INBEV WORLDWIDE
4.150% 01/23/2025 DD 01/23/19
ARROW ELECTRONICS INC
3.250% 09/08/2024 DD 09/08/17
ASHTEAD CAPITAL INC 144A
4.000% 05/01/2028 DD 11/04/19
ASSET BACKED SECURITIES HE4 M1
VAR RT 08/15/2033 DD 08/06/03
AVIATION CAPITAL GROUP LL 144A
4.125% 08/01/2025 DD 08/01/18
AVIATION CAPITAL GROUP LL 144A
VAR RT 06/01/2021 DD 12/03/18
BAMLL COMMERCIAL MO RLJ A 144A
VAR RT 04/15/2036 DD 05/30/19
BANC OF AMERICA FUNDING 2 D A1
VAR RT 05/25/2035 DD 06/01/05
BANK 2019-BNK20 BN20 ASB
2.933% 09/15/2061 DD 09/01/19
BANK OF AMERICA CORP
VAR RT 03/05/2024 DD 03/05/18
BANK OF AMERICA CORP
VAR RT 03/05/2024 DD 03/05/18
BANK OF AMERICA CORP
VAR RT 07/23/2024 DD 07/23/18
BAT CAPITAL CORP
3.222% 08/15/2024 DD 08/15/18
BAYER US FINANCE II LLC 144A
4.375% 12/15/2028 DD 06/25/18
BEAR STEARNS ARM TRUST 11 1A2
VAR RT 02/25/2033 DD 12/01/02
BEAR STEARNS ARM TRUST 12 13A1
VAR RT 02/25/2036 DD 12/01/05
BMW US CAPITAL LLC 144A
VAR RT 08/13/2021 DD 08/14/18
BOSTON SCIENTIFIC CORP
3.850% 05/15/2025 DD 05/12/15
BROADCOM CORP / BROADCOM CAYMA
3.000% 01/15/2022 DD 01/15/18
BROADCOM CORP / BROADCOM CAYMA
3.625% 01/15/2024 DD 01/15/18
CD 2018-CD7 MORTGAGE T CD7 ASB
4.213% 08/15/2051 DD 08/01/18
CENTENE CORP 144A
4.750% 01/15/2025 DD 07/15/19
CHARTER COMMUNICATIONS OPERATI
VAR RT 02/01/2024 DD 07/03/18
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
CHASE ISSUANCE TRUST A1 A
VAR RT 01/15/2022 DD 02/06/17
CHICAGO IL TRANSIT AUTH SALES
6.899% 12/01/2040 DD 08/06/08
CITIBANK NA
VAR RT 07/23/2021 DD 07/23/18
CITIGROUP COMMERCIAL GC35 AAB
3.608% 11/10/2048 DD 12/01/15
CITIGROUP INC
VAR RT 04/23/2029 DD 04/23/18
COMMIT TO PUR FNMA SF MTG
3.000% 02/01/2050 DD 02/01/20
COMMIT TO PUR FNMA SF MTG
3.500% 03/01/2050 DD 03/01/20
COMMIT TO PUR FNMA SF MTG
5.000% 01/01/2050 DD 01/01/20
COMMIT TO PUR GNMA II JUMBOS
3.000% 02/20/2050 DD 02/01/20
COMMIT TO PUR GNMA II JUMBOS
3.500% 02/20/2050 DD 02/01/20
COMMIT TO PUR GNMA II JUMBOS
4.000% 01/20/2050 DD 01/01/20
COMMIT TO PUR GNMA II JUMBOS
4.000% 02/20/2050 DD 02/01/20
CONSOLIDATED EDISON CO OF NEW
VAR RT 06/25/2021 DD 06/26/18
CONTINENTAL AIRLINES 2012-1 CL
4.150% 10/11/2025 DD 03/22/12
CSAIL 2015-C4 COMMERCIAL C4 A4
3.808% 11/15/2048 DD 11/01/15
CVS HEALTH CORP
5.050% 03/25/2048 DD 03/09/18
DAIMLER FINANCE NORTH AME 144A
3.400% 02/22/2022 DD 02/22/19
DAIMLER FINANCE NORTH AME 144A
VAR RT 02/15/2022 DD 08/15/19
DELL INTERNATIONAL LLC / 144A
4.900% 10/01/2026 DD 03/20/19
DELL INTERNATIONAL LLC / 144A
6.020% 06/15/2026 DD 06/01/16
DIGITAL REALTY TRUST LP
4.450% 07/15/2028 DD 06/21/18
DISCOVER FINANCIAL SERVICES
4.500% 01/30/2026 DD 01/31/19
* DREYFUS GOVT CAS MGMT INST 289
VAR RT 12/31/2075 DD 06/03/97
DUKE ENERGY CAROLINAS LLC
3.750% 06/01/2045 DD 03/12/15
ENTERGY ARKANSAS LLC
3.500% 04/01/2026 DD 01/08/16
FEDERAL HOME LN BK CONS DISC
02/05/2020
FEDERAL HOME LN BK CONS DISC N
02/03/2020
FEDERAL HOME LN BKS CONS DISC
01/08/2020
FHLMC POOL #SD-8036
3.000% 12/01/2049 DD 12/01/19
FHLMC MULTICLASS MTG 3626 ME
5.000% 01/15/2040 DD 01/01/10
FHLMC MULTICLASS MTG K156 A1
3.700% 05/25/2030 DD 08/01/18
FLORIDA POWER & LIGHT CO
4.125% 02/01/2042 DD 12/13/11
FNMA POOL #0AL2617
6.000% 10/01/2040 DD 11/01/12
FNMA POOL #0AM0359
2.310% 08/01/2022 DD 08/01/12
FNMA POOL #0AS1338
5.000% 12/01/2043 DD 11/01/13
FNMA POOL #0AS2741
5.000% 06/01/2044 DD 05/01/14
FNMA POOL #0BM2007
4.000% 09/01/2048 DD 08/01/18
FNMA POOL #0MA3443
4.000% 07/01/2048 DD 07/01/18
FNMA POOL #0MA3495
4.000% 09/01/2048 DD 09/01/18
FNMA POOL #0MA3692
3.500% 07/01/2049 DD 06/01/19
FNMA POOL #0MA3871
3.000% 11/01/2049 DD 11/01/19
FNMA GTD REMIC P/T 03-25 KP
5.000% 04/25/2033 DD 03/01/03
FNMA GTD REMIC P/T 03-W1 1A1
VAR RT 12/25/2042 DD 01/01/03
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
FNMA GTD REMIC P/T 19-25 FA
VAR RT 06/25/2049 DD 05/25/19
FORD MOTOR CREDIT CO LLC
3.664% 09/08/2024 DD 09/08/14
FORD MOTOR CREDIT CO LLC
VAR RT 04/05/2021 DD 03/05/18
GENERAL ELECTRIC CO
4.125% 10/09/2042 DD 10/09/12
GENERAL MOTORS FINANCIAL CO IN
3.150% 06/30/2022 DD 06/30/17
GNMA POOL #0705997
5.000% 01/15/2039 DD 01/01/09
GNMA POOL #0782523
5.000% 11/15/2035 DD 12/01/08
GNMA POOL #0AE7708
4.000% 08/15/2043 DD 08/01/13
GNMA POOL #0AL0766
3.500% 01/15/2045 DD 01/01/15
GNMA POOL #0AL5269
3.500% 02/15/2045 DD 02/01/15
GNMA POOL #0AN4392
4.000% 06/15/2045 DD 06/01/15
GNMA GTD REMIC P/T 12-H08 FC
VAR RT 04/20/2062 DD 04/20/12
GNMA GTD REMIC P/T 15-H08 FB
VAR RT 03/20/2065 DD 03/20/15
GNMA GTD REMIC P/T 16-H11 F
VAR RT 05/20/2066 DD 05/20/16
GNMA GTD REMIC P/T 16-H23 FD
VAR RT 10/20/2066 DD 10/20/16
GNMA GTD REMIC P/T 17-H14 FE
VAR RT 06/20/2067 DD 06/20/17
GOLDMAN SACHS GROUP INC/THE
3.850% 07/08/2024 DD 07/08/14
GS MORTGAGE SECURITIE GC26 AAB
3.365% 11/10/2047 DD 12/01/14
GS MORTGAGE SECURITIES GC28 A5
3.396% 02/10/2048 DD 02/01/15
GSCG TRUST 2019-60 600C A 144A
2.936% 09/06/2034 DD 08/01/19
GSR MORTGAGE LOAN TRUS AR6 1A1
VAR RT 09/25/2035 DD 09/01/05
HOST HOTELS & RESORTS LP
4.000% 06/15/2025 DD 05/15/15
INTERNATIONAL FINANCE CORP
2.125% 04/07/2026 DD 04/07/16
INTERNATIONAL LEASE FINANCE CO
8.625% 01/15/2022 DD 12/22/11
JOHN DEERE CAPITAL CORP
VAR RT 09/10/2021 DD 09/10/18
JPMBB COMMERCIAL MORTG C31 ASB
3.540% 08/15/2048 DD 08/01/15
JPMBB COMMERCIAL MORTG C32 ASB
3.358% 11/15/2048 DD 10/01/15
JPMBB COMMERCIAL MORTG C33 ASB
3.562% 12/15/2048 DD 11/01/15
JPMDB COMMERCIAL MORTGA C2 ASB
2.954% 06/15/2049 DD 05/01/16
JPMORGAN CHASE & CO
VAR RT 03/09/2021 DD 03/09/17
JPMORGAN CHASE & CO
VAR RT 07/23/2024 DD 07/23/18
KRAFT HEINZ FOODS CO
3.950% 07/15/2025 DD 07/15/16
MERCEDES-BENZ AUTO LEASE A A2
3.010% 02/16/2021 DD 01/30/19
MERRILL LYNCH MORTGAGE IN E A1
VAR RT 11/25/2029 DD 09/23/04
MIDAMERICAN ENERGY CO
4.400% 10/15/2044 DD 04/03/14
MILL CITY MORTGAGE GS2 A1 144A
VAR RT 08/25/2059 DD 10/01/19
MORGAN STANLEY
VAR RT 07/22/2025 DD 07/23/19
MORGAN STANLEY
3.875% 04/29/2024 DD 04/28/14
MORGAN STANLEY
3.700% 10/23/2024 DD 10/23/14
MORGAN STANLEY CAPITAL H3 ASB
4.120% 07/15/2051 DD 07/01/18
MORGAN STANLEY CAPITAL UBS8 A3
3.540% 12/15/2048 DD 12/01/15
MORGAN STANLEY MORTGA 11AR 1A1
VAR RT 01/25/2035 DD 12/29/04
NAVIENT STUDENT LOA EA A1 144A
3.430% 12/15/2059 DD 11/15/18
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
NELNET STUDENT LOAN 2A A 144A
VAR RT 06/27/2067 DD 04/30/19
NEW JERSEY ST TRANSPRTN TRUST
2.631% 06/15/2024 DD 12/18/19
NEW RESIDENTIAL M RPL3 A1 144A
VAR RT 07/25/2059 DD 09/01/19
NEW YORK CITY NY TRANSITIONAL
5.750% 02/01/2035 DD 03/03/10
NEW YORK CITY NY TRANSITIONAL
5.767% 08/01/2036 DD 10/22/09
NEW YORK LIFE GLOBAL FUND 144A
VAR RT 01/28/2021 DD 02/01/19
NEW YORK ST DORM AUTH ST PERSO
5.289% 03/15/2033 DD 10/14/10
NEW YORK ST URBAN DEV CORP SAL
2.150% 03/15/2025 DD 10/30/19
PENNSYLVANIA ST HGR EDU ASSIST
VAR RT 10/25/2036 DD 11/17/06
PHILIP MORRIS INTERNATIONAL IN
3.250% 11/10/2024 DD 11/10/14
PLAINS ALL AMERICAN PIPELINE L
4.650% 10/15/2025 DD 08/24/15
PRIME MORTGAGE TRUST 2 CL1 1A2
VAR RT 02/25/2034 DD 01/25/04
PRINCETON UNIVERSITY
5.700% 03/01/2039 DD 01/21/09
PUBLIC PWR GENERATION AGY NE R
7.242% 01/01/2041 DD 07/16/09
REYNOLDS AMERICAN INC
4.000% 06/12/2022 DD 06/12/15
SABINE PASS LIQUEFACTION LLC
VAR RT 02/01/2021 DD 02/01/14
SANTANDER HOLDINGS USA INC
3.400% 01/18/2023 DD 12/18/17
SBA GTD PARTN CTFS 2003-20C 1
4.500% 03/01/2023 DD 03/12/03
SBA GTD PARTN CTFS 2005-20B 1
4.625% 02/01/2025 DD 02/16/05
SBA GTD PARTN CTFS 2008-20D 1
5.370% 04/01/2028 DD 04/16/08
SBA GTD PARTN CTFS 2008-20E 1
5.490% 05/01/2028 DD 05/14/08
SBA GTD PARTN CTFS 2008-20F 1
5.680% 06/01/2028 DD 06/11/08
SBA GTD PARTN CTFS 2009-20A 1
5.720% 01/01/2029 DD 01/14/09
SG COMMERCIAL MORTGAGE S C5 A4
3.055% 10/10/2048 DD 07/01/16
SLH PROXY LONG EXPOSURE
SLHOPNTA4
SLM STUDENT LOAN TRUST 2 9 A7A
VAR RT 01/25/2041 DD 01/25/18
SLM STUDENT LOAN TRUST 20 4 A3
VAR RT 01/25/2027 DD 05/19/05
SLM STUDENT LOAN TRUST 200 9 A
VAR RT 04/25/2023 DD 08/28/08
SMB PRIVATE EDUCATIO C A1 144A
VAR RT 09/15/2025 DD 09/19/18
SOFI CONSUMER LOAN P 3 A1 144A
3.200% 08/25/2027 DD 08/07/18
SOUTH DAKOTA ST EDUCTNL ENHANC
3.539% 06/01/2022 DD 03/14/13
SOUTHERN CALIFORNIA GAS CO
4.450% 03/15/2044 DD 03/13/14
SPIRIT REALTY LP
3.200% 01/15/2027 DD 09/16/19
STRUCTURED ADJUSTABLE R 12 7A1
VAR RT 09/25/2034 DD 08/01/04
STRUCTURED ASSET INVESTME 8 M1
VAR RT 09/25/2034 DD 08/25/04
STRUCTURED ASSET MORTG AR4 2A1
VAR RT 12/19/2034 DD 07/30/04
SYNCHRONY FINANCIAL
3.950% 12/01/2027 DD 12/01/17
THORNBURG MORTGAGE SECUR 1 I1A
VAR RT 03/25/2044 DD 03/31/04
U S TREASURY BOND
2.750% 08/15/2047 DD 08/15/17
U S TREASURY BOND
3.000% 02/15/2048 DD 02/15/18
U S TREASURY BOND
3.125% 05/15/2048 DD 05/15/18
U S TREASURY BOND
3.000% 08/15/2048 DD 08/15/18
U S TREASURY BOND
3.000% 02/15/2049 DD 02/15/19
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
U S TREASURY BOND
2.875% 05/15/2049 DD 05/15/19
U S TREASURY BOND
2.250% 08/15/2049 DD 08/15/19
U S TREASURY NOTE
2.625% 02/15/2029 DD 02/15/19
U S TREASURY NOTE
2.375% 05/15/2029 DD 05/15/19
U S TREASURY NOTE
1.625% 08/15/2029 DD 08/15/19
U S TREASURY NOTE
1.250% 08/31/2024 DD 08/31/19
U S TREASURY NOTE
1.750% 11/15/2029 DD 11/15/19
UBS COMMERCIAL MORTGAG C11 ASB
4.119% 06/15/2051 DD 07/01/18
UBS COMMERCIAL MORTGAG C13 ASB
4.241% 10/15/2051 DD 10/01/18
US TREAS-CPI INFLAT
1.375% 02/15/2044 DD 02/15/14
US TREAS-CPI INFLAT
1.000% 02/15/2046 DD 02/15/16
US TREAS-CPI INFLAT
1.000% 02/15/2048 DD 02/15/18
VERIZON COMMUNICATIONS INC
4.016% 12/03/2029 DD 06/03/19
VISA INC
3.150% 12/14/2025 DD 12/14/15
WALGREEN CO
3.100% 09/15/2022 DD 09/13/12
WELLS FARGO & CO
3.000% 02/19/2025 DD 02/19/15
WELLS FARGO BANK NA
VAR RT 03/25/2020 DD 09/25/18
WELLS FARGO COMMERCIA NXS4 ASB
3.522% 12/15/2048 DD 12/01/15
WELLS FARGO COMMERCIAL C45 ASB
4.147% 06/15/2051 DD 07/01/18
WELLTOWER INC
4.250% 04/15/2028 DD 04/10/18
WP CAREY INC
4.250% 10/01/2026 DD 09/12/16
Total Bond Fund
92,600
International Stock
INTL STOCK INDEX
BGI MSCI ACWI EX-US INDEX SUPERFUND
Interest Bearing Cash
* DREYFUS GOVT CAS MGMT INST 289
VAR RT 12/31/2075 DD 06/03/97
* Notes Receivable from Participants
4.25% - 10.50%
Total
* 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