Report of Independent Registered Public Accounting Firm |
1–2
|
|
|
|
|
Financial Statements: |
|
|
|
|
|
|
Statements of Net Assets Available for Benefits as of December 31, 2019 and 2018 |
3
|
|
|
|
|
Statements of Changes in Net Assets Available for Benefits for the Years ended December 31, 2019 and 2018 |
4
|
|
|
|
Notes to Financial Statements |
5–12
|
|
|
|
|
Supplemental Schedules: |
|
|
|
|
|
|
Schedule H, Line 4a – Schedule of Delinquent Participant Contributions for the Year ended December 31, 2019 |
13
|
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2019 |
14 |
|
Note: | Supplemental schedules, other than those listed above, are omitted because of the absence of conditions under which they are required by Department of Labor Rules and Regulations for Reporting and Disclosures under the Employee Retirement Income Security Act of 1974. |
2019
|
2018
|
|||||||
Assets:
|
||||||||
Investments at fair value
|
$
|
2,008,814,366
|
$
|
1,755,824,436
|
||||
Receivables:
|
||||||||
Participant contributions
|
—
|
882
|
||||||
Employer contributions
|
1,565,926
|
1,814,439
|
||||||
Due from broker for securities sold
|
489,948
|
4,888,403
|
||||||
Interest and dividends
|
2,778,184
|
2,840,427
|
||||||
Notes receivable from participants
|
20,387,710
|
19,887,626
|
||||||
Total receivables
|
25,221,768
|
29,431,777
|
||||||
Total assets
|
2,034,036,134
|
1,785,256,213
|
||||||
Liabilities:
|
||||||||
Accrued administrative expenses
|
196,042
|
129,050
|
||||||
Due to broker for securities purchased
|
1,075,657
|
14,009
|
||||||
Total liabilities
|
1,271,699
|
143,059
|
||||||
Net assets available for benefits
|
$
|
2,032,764,435
|
$
|
1,785,113,154
|
2019
|
2018
|
|||||||
Additions/(Deletions):
|
||||||||
Investment income (loss):
|
||||||||
Net appreciation (depreciation) in fair value of investments
|
$
|
302,088,813
|
$
|
(302,054,968
|
)
|
|||
Interest and dividends
|
49,758,877
|
62,347,576
|
||||||
Total investment income (loss)
|
351,847,690
|
(239,707,392
|
)
|
|||||
Interest income on notes receivable from participants
|
1,099,660
|
948,765
|
||||||
Contributions:
|
||||||||
Employer contributions
|
38,676,969
|
39,129,643
|
||||||
Participant contributions
|
47,029,172
|
47,460,083
|
||||||
Participant rollover contributions
|
3,677,440
|
2,951,763
|
||||||
Total contributions
|
89,383,581
|
89,541,489
|
||||||
Total additons (deletions)
|
442,330,931
|
(149,217,138
|
)
|
|||||
Deductions:
|
||||||||
Benefits paid to participants
|
193,920,466
|
167,454,609
|
||||||
Administrative expenses
|
759,184
|
498,494
|
||||||
Total deductions
|
194,679,650
|
167,953,103
|
||||||
Net increase (decrease) in net assets available for benefits prior to transfers
|
247,651,281
|
(317,170,241
|
)
|
|||||
Transfer in the Retirement Savings Plan for Employees of Louisville Corporate Services, Inc. and Affiliates
|
—
|
5,805,073
|
||||||
Net increase (decrease) in net assets available for benefits
|
247,651,281
|
(311,365,168
|
)
|
|||||
Net assets available for benefits at beginning of year
|
1,785,113,154
|
2,096,478,322
|
||||||
Net assets available for benefits at end of year
|
$
|
2,032,764,435
|
$
|
1,785,113,154
|
(1)
|
Plan Description
|
(a) |
General
|
(b) |
Contribution
|
(c) |
Participant Accounts
|
(d) |
Vesting
|
(e) |
Investment Options
|
(f) |
Notes Receivable from Participants
|
(g) |
Payment of Benefits
|
(h) |
Expenses
|
(i) |
Forfeitures
|
(2) |
Summary of Significant Accounting Policies
|
(a) |
Basis of Accounting
|
(b) |
Investment Valuation and Income Recognition
|
(c) |
Valuation of Notes Receivable from Participants
|
(d) |
Use of Estimates
|
(e) |
Payment of Benefits
|
(3) |
Fair Value Measurement
|
Level 1
|
–
|
Inputs are quoted prices, unadjusted, in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
|
Level 2
|
–
|
Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. A Level 2 input must be observable for substantially the full
term of the asset or liability.
|
Level 3
|
–
|
Inputs are unobservable and reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability.
|
Assets at fair value as of December 31, 2019
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Common/collective trust funds
|
$
|
628,391,536
|
$
|
—
|
$
|
628,391,536
|
$
|
—
|
||||||||
Money market funds
|
272,833
|
272,833
|
—
|
—
|
||||||||||||
Mutual funds
|
766,779,080
|
766,779,080
|
—
|
—
|
||||||||||||
Participant self-directed brokerage account
|
93,173,404
|
93,173,404
|
—
|
—
|
||||||||||||
BAT Stock Fund:
|
||||||||||||||||
BAT American Depository Shares
|
174,882,140
|
174,882,140
|
—
|
—
|
||||||||||||
Fidelity money market fund
|
4,298,659
|
4,298,659
|
—
|
—
|
||||||||||||
Total BAT Stock Fund
|
179,180,799
|
179,180,799
|
—
|
—
|
||||||||||||
Stable value collective trust fund
|
341,016,714
|
—
|
341,016,714
|
—
|
||||||||||||
Total investments at fair value
|
$
|
2,008,814,366
|
$
|
1,039,406,116
|
$
|
969,408,250
|
$
|
—
|
Assets at fair value as of December 31, 2018
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Common/collective trust funds
|
$
|
451,243,660
|
$
|
—
|
$
|
451,243,660
|
$
|
—
|
||||||||
Money market funds
|
50,505
|
50,505
|
—
|
—
|
||||||||||||
Mutual funds
|
710,446,961
|
710,446,961
|
—
|
—
|
||||||||||||
Participant self-directed brokerage account
|
81,400,185
|
81,400,185
|
—
|
—
|
||||||||||||
BAT Stock Fund:
|
||||||||||||||||
BAT American Depository Shares
|
133,101,733
|
133,101,733
|
—
|
—
|
||||||||||||
Fidelity money market fund
|
1,252,905
|
1,252,905
|
—
|
—
|
||||||||||||
Total BAT Stock Fund
|
134,354,638
|
134,354,638
|
—
|
—
|
||||||||||||
Stable value collective trust fund
|
378,328,487
|
—
|
378,328,487
|
—
|
||||||||||||
Total investments at fair value
|
$
|
1,755,824,436
|
$
|
926,252,289
|
$
|
829,572,147
|
$
|
—
|
(4) |
Related Party Transactions and Party in Interest Transactions
|
(5) |
Nonexempt Party-In-Interest Transactions
|
(6) |
Income Tax Status
|
(7) |
Plan Termination
|
(8) |
Subsequent Events
|
Year ended |
Participant
contributions
transferred
late to
the Plan *
|
Contributions
not corrected
|
Contributions
corrected
outside VFCP
|
Contributions
pending
correction
in VFCP
|
Total fully
corrected
under VFCP
and PTE 2002-51
|
||||||||||||||
December 31, 2018
|
$
|
843
|
$
|
—
|
$
|
843
|
$
|
—
|
$
|
—
|
|||||||||
December 31, 2019
|
$
|
587
|
$
|
587
|
$
|
—
|
$
|
—
|
$
|
—
|
*
|
For the year ended December 31, 2018, the Company identified late remittances in the aggregate amount of $842.82, which included participant contributions and participant loan repayments. The late remittances were remitted to the Plan in February 2019. The lost earnings of $39.18 pertaining to the contributions were deposited into the trust in 2019. |
|
|
*
|
For the year ended December 31, 2019, the Company identified late remittances in the aggregate amount of $586.74, which included participant contributions and participant loan repayments. The late remittances were remitted to the Plan in March and April of 2019. The lost earnings pertaining to the contributions will be deposited in 2020. |
|
|
See accompanying report of independent registered public accounting firm. |
Identity of issue | Maturity | Cost** |
Par value or
number of
units
|
Current value | |||||
Unitized Company Stock Fund:
|
|||||||||
* BAT Stock Fund-BAT American Depository Shares
|
4,118,649
|
|
$ |
174,882,140
|
|||||
Mutual funds:
|
|||||||||
PIMCO Income Fund Institutional Class
|
4,587,694
|
55,235,835
|
|||||||
Vanguard Total International Stock IS
|
355,773
|
42,504,167
|
|||||||
PIMCO Total Return Fund
|
3,418,884
|
35,351,265
|
|||||||
Vanguard Total Stock Fund
|
4,968,527
|
341,139,094
|
|||||||
JOHCM GLB EM OPS IS
|
893,464
|
9,935,319
|
|||||||
TRP GlOBAL GR STK I
|
1,423,255
|
43,338,109
|
|||||||
Vanguard Total Bond Market Index Fund
|
2,692,036
|
29,746,994
|
|||||||
Dodge and Cox International Stock
|
715,583
|
31,199,415
|
|||||||
JP Morgan Disciplined Equity Fund Class R6
|
6,314,377
|
173,392,787
|
|||||||
PIF DVRSD REAL AST I
|
424,063
|
4,936,095
|
|||||||
Total mutual funds
|
766,779,080
|
||||||||
Cash management accounts:
|
|||||||||
Money market funds:
|
|||||||||
* BAT Stock Fund-Fidelity Money Market Fund
|
4,298,659
|
4,298,659
|
|||||||
* Fidelity Retirement Money Market Fund
|
272,833
|
272,833
|
|||||||
Total money market funds
|
4,571,492
|
||||||||
Self-Directed Brokerage Accounts
|
152,882,836
|
93,173,404
|
|||||||
Common/collective investment trusts:
|
|||||||||
BTC Lifepath Retirement Growth
|
7,012,575
|
110,405,277
|
|||||||
BTC Lifepath 2025 G
|
5,627,001
|
101,182,480
|
|||||||
BTC Lifepath 2030 G
|
4,062,167
|
77,123,492
|
|||||||
BTC Lifepath 2035 G
|
3,182,561
|
63,526,776
|
|||||||
BTC Lifepath 2040 G
|
2,888,816
|
60,234,989
|
|||||||
BTC Lifepath 2045 G
|
2,858,285
|
61,514,859
|
|||||||
BTC Lifepath 2050 G
|
2,784,535
|
61,359,176
|
|||||||
BTC Lifepath 2055 G
|
944,677
|
21,154,160
|
|||||||
BTC Lifepath 2060 G
|
309,318
|
4,704,939
|
|||||||
BTC Lifepath 2065 G
|
264
|
2,737
|
|||||||
RTHCHD US SMCP CR 2
|
4,998,709
|
67,182,651
|
|||||||
Wells Fargo Stable Return Fund W (Interest Income Fund)
|
5,950,455 | 341,016,714 | |||||||
Total common/collective investment trusts
|
969,408,250 | ||||||||
Total investments
|
2,008,814,366 | ||||||||
* Notes receivable from participants (1,768 loans with interest rates ranging from 4.25% to 9.25% and maturity dates ranging from 1/1/2020-12/07/2034).
|
20,387,710
|
||||||||
Total assets
|
$ |
2,029,202,076 |
*
|
Denotes a party-in-interest. |
|
|
**
|
Cost information is not required for participant-directed investments and therefore, is not included. |
|
|
See accompanying report of independent registered public accounting firm. |