SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15 (d)
of the Securities Exchange Act of 1934
for the year ended December 31, 2000
TRUMP CAPITAL ACCUMULATION PLAN
(Full title of the Plan)
TRUMP HOTELS AND CASINO RESORTS, INC.
(Name of Issuer of the securities held pursuant to the Plan)
1000 Boardwalk
Atlantic City, New Jersey 08401
(Address of principal executive office)
================================================================================
TRUMP CAPITAL ACCUMULATION PLAN
FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2000 AND 1999
TOGETHER WITH AUDITORS' REPORT
INDEX
Page
----
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 1
FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits as of December 31, 2000 and 1999 2
Statement of Changes in Net Assets Available for Benefits for the Year Ended
December 31, 2000 3
NOTES TO FINANCIAL STATEMENTS 4-7
SUPPLEMENTAL SCHEDULE:
I -- Schedule of Assets Held for Investment Purposes as of December 31, 2000 8-9
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Benefits Committee of the
Trump Capital Accumulation Plan:
We have audited the accompanying statements of net assets available for benefits
of the Trump Capital Accumulation Plan (the "Plan") as of December 31, 2000 and
1999, and the related statement of changes in net assets available for benefits
for the year ended December 31, 2000. These financial statements and the
schedule referred to below are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements and
schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2000 and 1999, and the changes in its net assets available for
benefits for the year ended December 31, 2000, in conformity with accounting
principles generally accepted in the United States.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental schedule of assets held for
investment purposes is presented for the purpose of additional analysis and is
not a required part of the basic financial statements but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedule has been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
ARTHUR ANDERSEN LLP
Roseland, New Jersey
June 4, 2001
1
TRUMP CAPITAL ACCUMULATION PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2000 AND 1999
2000 1999
------------ ------------
ASSETS:
Investments $113,985,298 $118,697,694
------------ ------------
RECEIVABLES:
Participant contributions 454,751 587,460
------------ ------------
Total receivables 454,751 587,460
------------ ------------
OTHER 15,463 77,836
------------ ------------
Net assets available for
benefits $114,455,512 $119,362,990
============ ============
The accompanying notes to financial statements are an integral part of these
statements.
2
TRUMP CAPITAL ACCUMULATION PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2000
ADDITIONS:
Additions to net assets attributed to-
Investment income-
Interest income $ 934,961
Dividend income 10,954,217
------------
11,889,178
------------
Contributions-
Participant 11,314,490
Employer, net of forfeitures 3,093,206
Rollover 266,794
------------
14,674,490
------------
Total additions 26,563,668
------------
Deductions-
Deductions from net assets attributed to-
Net depreciation in fair value of
investments 22,419,090
Benefits paid to participants 8,782,548
Transfers to related plans 236,303
Administrative expenses 33,205
------------
Total deductions 31,471,146
------------
Net decrease (4,907,478)
Net assets available for benefits:
Beginning of year 119,362,990
------------
End of year $114,455,512
============
The accompanying notes to financial statements are an integral part of this
statement.
3
TRUMP CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
1. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
-------------------
Basis of Accounting
-------------------
The accompanying financial statements of the Trump Capital Accumulation Plan
(the "Plan") have been prepared on the accrual basis of accounting.
Plan Expenses
-------------
Expenses related to the administration of the Plan have been paid by Trump Taj
Mahal Associates (the "Plan Sponsor") and Trump Castle Associates (collectively
the "Companies"). The Companies pay all administrative expenses of the Plan,
except for the administrative costs of mutual funds and loan processing fees.
The Companies costs represent trustee fees and professional services and
amounted to approximately $75,000 in 2000.
Investments
-----------
The investments included in the statements of net assets available for benefits
are stated at market value. Market value is the unit valuation of the security
at the plan year-end as determined by Merrill Lynch Trust Company ("Merrill
Lynch"), the trustee of the Plan (the "Trustee"). Accounting records are
maintained on the accrual basis, investment transactions are recorded on the
trade date basis and gains and losses are calculated based upon an aggregate
participant cost that is maintained on an average unit cost basis.
Use of Estimates
----------------
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amount of net assets and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Risks and Uncertainties
-----------------------
The Plan provides for various investment options in investment securities.
Investment securities are exposed to various risks, such as interest rate,
market and credit. Due to the level of risk associated with certain investment
securities and the level of uncertainty related to changes in the value of
investment securities, it is at least reasonably possible that changes in risks
in the near term could materially affect participant's account balances and the
amounts reported in the statements of net assets available for benefits and the
statement of changes in net assets available for benefits.
2. PLAN DESCRIPTION
----------------
The following description of the Plan provides only general information.
Participants should refer to the Plan document for a more complete description
of the Plan's provisions.
4
TRUMP CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
General
-------
The Plan is a 401(k) Savings Plan, which was established by the Plan Sponsor and
became effective on January 1, 1989. All full or part-time non-union employees
become eligible for participation in the Plan on the enrollment date immediately
following the completion of 12 months of service and the attainment of age 18.
In addition, union employees covered by a collective bargaining agreement that
provides for participation in the Plan may enroll upon meeting the same
requirements as non-union employees.
The Plan is administered by a committee appointed by the Plan Sponsor (the "Plan
Administrator"). Merrill Lynch Trust Company was appointed as the trustee of
the Plan by the Plan Administrator.
Contributions
-------------
Participants
------------
Non-highly compensated participants, as defined, are eligible to voluntarily
contribute to the Plan up to 20% of their annual compensation, as defined.
Highly compensated participants, as defined, are eligible to voluntarily
contribute to the Plan up to 7% of their annual compensation, as defined. Tax
deferred contributions are subject to a limit by the Internal Revenue Code. The
2000 limit was $10,500 per participant. Contributions to the Plan are invested
by the Trustee, as designated by the participant, in increments of 5%.
Plan Sponsor
------------
The Plan Sponsor contributes to the Plan 50% of each participant's
contributions, not to exceed 3% of the participant's annual compensation, as
defined. Plan Sponsor contributions are allocated between funds as determined by
the employee.
Participant Rollovers
---------------------
The Plan permits eligible participants, as defined, to rollover cash or other
property acceptable to the Plan Administrator from another qualified plan in
addition to qualified voluntary participant contributions.
Distributions to Participants
-----------------------------
Each participant has a fully vested interest in the amount of his or her
contributions together with the allocable Plan earnings. Contributions from the
Plan Sponsor vest based on the vesting schedule described below. The full value
of the participant's vested interest in his or her account in the Plan will be
distributed upon termination of the participant's employment. The normal form
of payment is by lump sum; however, if a participant's vested benefit from all
contributions exceeds $5,000, a participant has the right to receive payment in
equal periodic monthly, quarterly, semi-annual or annual installments over a
period not to exceed ten years.
A participant may also withdraw all or part of his or her account upon
attainment of age 59-1/2 or financial hardship, as defined in the Plan.
Upon termination of employment prior to eligibility for retirement, a
participant is eligible to receive the vested balance in his or her account.
There were no payments due to participants who have requested to withdraw their
funds prior to December 31, 2000 or 1999.
5
TRUMP CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
Vesting
-------
Voluntary contributions are fully vested at all times and are not subject to
forfeiture.
The Plan Sponsor's contributions vest based upon the participant's years of
continuous service as follows-
Years of Continuous Service Percentage Vested
--------------------------- -----------------
Less than two years 0%
Two years 25%
Three years 50%
Four years 75%
Five years or more 100%
Forfeitures
-----------
The portion of a former participant's account which is not distributed because
of the vesting provision will reduce the amount of the Plan Sponsor's future
contributions. During 2000, $124,737 was used to reduce Plan Sponsor
contributions. As of December 31, 2000 and 1999, $928 and $107 were available
to reduce future Plan Sponsor contributions, respectively.
Loans
-----
The Plan permits participants to borrow from their accounts at terms established
by the Plan Administrator. Participants may borrow up to the lesser of $50,000
or 50% of their vested account balance for specific reasons, as defined by the
Plan. Each loan is secured by the borrower's vested interest in the Plan and is
subject to other requirements, as defined. Interest on loans is charged at a
rate that is comparable to similar loans made by commercial lenders. Loans
outstanding as of December 31, 2000 had interest rates ranging from 8.75% to
12.00%. Loan repayment terms range up to five years (fifteen years if the loan
was used to purchase a primary residence). A small administrative fee is
required to process all loans.
3. INVESTMENTS
-----------
The fair value of individual investments that represent 5% or more of the Plan's
net assets are as follows-
December 31,
------------------------
2000 1999
----------- -----------
Merrill Lynch Pacific Fund $ 6,870,649 $11,281,054
Merrill Lynch Capital Fund 11,534,368 14,310,921
Merrill Lynch Basic Value Fund 16,641,993 22,457,137
Merrill Lynch Growth Fund 5,363,650 7,076,519
Davis New York Venture Fund 8,214,433 8,204,376
Merrill Lynch Ready Assets Trust Fund 10,581,412 11,039,031
6
TRUMP CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
During 2000, the Plan's investments (including gains and losses on investments
bought and sold, as well as held during the year) depreciated in value by
$22,419,090 as follows-
Mutual Funds $(21,311,474)
Common Stock (1,107,616)
-------------
$(22,419,090)
-------------
4. TAX STATUS
----------
The Plan obtained its latest determination letter on February 18, 2000, which
covered all amendments through December 31, 1999, in which the Internal Revenue
Service stated that the Plan, as then designed, was in compliance with the
applicable requirements of the Internal Revenue Code.
5. PLAN TERMINATION
----------------
Effective August 31, 1999 the Plan was formed by the merger of the Trump Marina
Hotel & Casino Savings Plan into the Trump Taj Mahal Hotel & Casino Savings Plan
("Taj Plan"). The Taj Plan was renamed the Trump Capital Accumulation Plan.
While the Plan Sponsor has not expressed any intent to terminate the Plan, the
Plan Sponsor may do so at any time subject to the provisions of the Employee
Retirement Income Security Act of 1974. In the event of termination, each
participant is entitled to the value in his or her separate account.
6. RELATED PARTY
TRANSACTIONS
------------
Certain Plan investments are shares of mutual funds managed by Merrill Lynch.
Merrill Lynch is the Trustee as defined by the Plan and, therefore, these
transactions qualify as party-in-interest.
Certain Plan investments include shares of THCR common stock ("Common Stock")
and, therefore, these transactions qualify as party-in-interest. As of December
31, 2000 and 1999, the Plan holds Common Stock with a market value of $1,618,656
and $2,139,428, respectively. During the year ended December 31, 2000, Common
Stock was acquired at a cost of $1,228,264; and Common Stock was sold with an
original cost basis of $807,944.
The Plan Sponsor has sister companies that also sponsor a similar Savings Plan.
During 2000, net transfers to related plans amounted to $236,303.
7
TRUMP CAPITAL ACCUMULATION PLAN SCHEDULE I
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
EMPLOYER IDENTIFICATION #22-3136368, PLAN NUMBER 001
(b) Identity of issue, (c) Description of investment including maturity
borrower, lessor or date, rate of interest, collateral, (d) Market
(a) similar party par or maturity value Value
----- ---------------------- ----------------------------------------------------- -----------
* Merrill Lynch Pacific Fund, Overseas Equity Securities, 341,823 units of
participation $ 6,870,649
* Merrill Lynch Federal Securities Fund, U. S. Government Agencies,
519,171 units of participation 5,051,534
* Merrill Lynch Capital Fund, Equity Securities, 379,795 units of participation 11,534,368
* Merrill Lynch Basic Value Fund, Equity and Debt Securities, 507,069 units
of participation 16,641,993
* Merrill Lynch Growth Fund, Equity Securities, 257,992 units of participation 5,363,650
* Merrill Lynch Global Allocation Fund, U. S. and Foreign Equity and Debt
Securities, 184,741 units of participation 2,423,804
Templeton Funds, Inc. Templeton Foreign Fund, Foreign Equity and Debt Securities,
116,901 units of participation 1,208,754
MFS Funds MFS Emerging Growth Fund, Equity Securities, 112,461 units
of participation 5,036,024
Davis Funds, Inc. Davis New York Venture Fund, Foreign Equity Securities,
285,819 units of participation 8,214,433
Delaware Group Delaware Trend Fund, Equity Securities, 245,919 units of
participation 5,294,626
Pimco Total Return Fund, Equity and Debt Securities, 24,933 units
of participation 259,052
* Merrill Lynch Equity Index Trust Fund, Equity Securities,
21,641 units of participation 1,985,986
Federated High Income Bond Fund, Equity and Debt Securities, 3,939
units of participation 33,557
MFS Funds Utilities Fund, Equity and Debt Securities,
60,485 units of participation 717,959
Massachusetts Growth Fund, Equity and Debt Securities, 99,683 units of
Investors participation 1,708,562
Massachusetts Trust Fund, Equity Securities, 26,356 units of participation 527,656
Investors
8
SCHEDULE I
(Continued)
TRUMP CAPITAL ACCUMULATION PLAN SCHEDULE I
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
EMPLOYER IDENTIFICATION #22-3136368, PLAN NUMBER 001
(b) Identity of issue, (c) Description of investment including maturity
borrower, lessor or date, rate of interest, collateral, (d) Market
(a) similar party par or maturity value Value
----- ---------------------- ------------------------------------------------- -----------
* Merrill Lynch Healthcare Fund, Equity Securities,
192,534 units of participation 1,401,645
Alliance Premier Growth Fund, Equity Securities,
73,106 units of participation 1,952,664
Seligman Communications Fund, Equity Securities,
164,807 units of participation 4,169,620
Davis Funds, Inc. Davis Series Financial Fund, Equity
Securities, 11,496 units of participation 417,292
GAM GAM International Fund, Equity Securities,
3,178 units of participation 63,615
Pioneer Growth Shares Fund, Equity Securities,
40,626 units of participation 699,167
* Merrill Lynch Eurofund Fund, Equity Securities, 11,081
units of participation 169,092
Pimco Innovation Fund, Equity Securities,
60,055 units of participation 2,472,454
Munder Net Net Fund, Equity Securities, 49,911
units of participation 1,733,403
Van Kampen Emerging Growth Fund, Equity Securities,
24,525 units of participation 1,539,650
------------
Total investment in mutual funds 87,491,209
------------
** Trump Hotels & Casino Trump Hotels & Casino Resorts, Inc.
Resorts, Inc. Common Stock, 863,283 shares 1,618,656
------------
* Merrill Lynch Retirement Preservation Trust Fund,
Money Market Funds, 2,455,283 units of
participation 2,455,283
* Merrill Lynch Ready Assets Trust Fund, Money Market 10,581,412
Funds, 10,581,412 units of participation ------------
Total investment in money market funds 13,036,695
------------
Participants' Loans Interest rates ranging from 8.75% to 12.00%
and maturities ranging from 2001 through 2015 11,838,738
------------
$113,985,298
============
*Denotes party-in-interest
**Denotes related party
The accompanying notes to financial statements are an integral part of this
schedule.
9
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation of our
report included in this Form 11-K into the Trump Hotels & Casino Resorts, Inc.
previously filed Form S-8 Registration Statement No.333-2201.
ARTHUR ANDERSEN LLP
Roseland, New Jersey
June 26, 2001