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 SAVINGS 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 SAVINGS 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 4-8
SUPPLEMENTAL SCHEDULE:
I -- Schedule of Assets Held for Investment Purposes as of December
31, 2000 9
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Benefits Committee of the Trump Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Trump Savings 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 SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2000 AND 1999
2000 1999
------------ ------------
ASSETS
Investments $ 76,410,029 $ 77,989,517
------------ ------------
RECEIVABLES:
Employer contribution 51,930 -
Participant contributions 233,881 141,821
------------ ------------
Total receivables 285,811 141,821
------------ ------------
ACCRUED DIVIDENDS 526,246 -
OTHER 281,587 598,641
------------ ------------
Net assets available for benefits $ 77,503,673 $ 78,729,979
============ ============
The accompanying notes to financial statements are an integral part
of these statements.
2
TRUMP SAVINGS 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 $ 669,315
Dividend income 3,924,460
------------
4,593,775
Contributions- ------------
Participant 6,509,403
Employer, net of forfeitures 1,874,621
Rollover 239,773
Transfers from related plans 236,303
------------
8,860,100
------------
Total additions 13,453,875
------------
Deductions-
Deductions from net assets attributed to-
Net depreciation in fair value of investments 7,787,752
Benefits paid to participants 6,809,519
Administrative expenses 82,910
------------
Total deductions 14,680,181
------------
Net decrease (1,226,306)
------------
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 78,729,979
------------
End of year $ 77,503,673
============
The accompanying notes to financial statements are an integral
part of this statement.
3
TRUMP SAVINGS 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 Savings 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 Plaza
Associates (the "Plan Sponsor"), Trump Casino Services, L.L.C. and Trump Indiana
Inc. (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 $46,000 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 The Chicago Trust Company, 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 SAVINGS 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, 1997. 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"). The Chicago 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 SAVINGS 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, $133,776 was used to reduce Plan Sponsor
contributions. As of December 31, 2000 and 1999, $156,000 and $121,000 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 7.00% to
10.50%. 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.
6
TRUMP SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
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
---------- -----------
Chicago Trust Stated Principal Value Investment Fund $ 8,696,219 $ 9,007,412
Massachusetts Investors Trust Fund 9,414,212 10,712,847
Oppenheimer Quest Opportunity Value Fund 3,989,129 5,153,831
Montag and Caldwell Growth Fund 12,899,960 16,682,538
Templeton Foreign Fund 4,416,322 5,057,337
Davis New York Venture Fund 5,181,847 1,907,755
Franklin Small Cap Growth Fund 5,646,479 2,608,361
Franklin California Growth Fund 6,053,405 -
Montag and Caldwell Balanced Fund 5,362,384 111,548
AIM Constellation Fund - 4,613,252
Oppenheimer Quest Capital Fund - 6,093,030
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
$7,787,752 as follows-
Mutual Funds $ (7,182,520)
Common Stock (605,232)
------------
$ (7,787,752)
============
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 September 3, 1999, the Plan was formed by the merger of the Trump
Plaza Hotel & Casino Savings Plan and Trump Indiana Savings Plan into the Trump
Casino Services Savings Plan (the "TCS Plan"). The TCS Plan was renamed the
Trump Savings 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 of his or her separate account.
6. RELATED PARTY TRANSACTIONS
--------------------------
Certain Plan investments are shares of a money market fund managed by The
Chicago Trust Company. The Chicago Trust Company is the Trustee as defined by
the Plan and, therefore, these transactions qualify as party-in-interest.
7
TRUMP SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
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 $821,885
and $1,345,410, respectively. During the year ended December 31, 2000, Common
Stock was acquired at a cost of $770,506; and Common Stock was sold with an
original cost basis of $925,197.
The Plan Sponsor has sister companies that also sponsor similar Savings Plans.
During 2000, net transfers from related plans amounted to $236,303.
8
TRUMP SAVINGS PLAN SCHEDULE I
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
EMPLOYER IDENTIFICATION #22-3446804, PLAN NUMBER 001
(b) Identity of issue, (c) Description of investment including maturity date,
borrower, lessor or rate of interest, collateral, (d) Market
(a) similar party par or maturity value Value
--- ------------------------ ----------------------------------------------------------------- -----------
* The Chicago Trust Stated Principal Value Investment Trust Fund, Money Market Funds,
Company 4,386,934 units of participation $ 8,696,220
-----------
MFS Funds Massachusetts Investors Trust Fund, Equity Securities, 470,240
units of participation 9,414,211
Oppenheimer Oppenheimer Quest Opportunity Value Fund, Equity and Debt
Securities, 118,057 units of participation 3,989,130
Montag Montag & Caldwell Growth Fund, Equity Securities, 463,527 units
of participation 12,899,960
Templeton Funds, Inc. Templeton Foreign Fund, Equity Securities, 427,110 units of
participation 4,416,322
Davis Funds, Inc. Davis New York Venture Fund, Equity Securities, 180,301 units of
participation 5,181,847
Franklin Funds, Inc. Franklin Small Cap Growth Fund, Equity Securities, 143,567 units of
participation 5,646,479
Montag Montag & Caldwell Balanced Fund, Equity and Debt Securities,
292,069 units of participation 5,362,385
Pimco Funds Pimco Total Return Fund, Equity and Debt Securities, 14,562 units
of participation 151,303
Vanguard Funds Vanguard Index 500 Fund, Equity Securities, 25,082 units of
participation 3,027,889
Oppenheimer Oppenheimer Global Growth and Income Fund, Equity and Debt
Securities, 60,394 units of participation 1,633,056
Franklin Funds, Inc. Franklin California Growth Fund, Equity Securities, 146,324 units
of participation 6,053,404
Pilgrim Pilgrim International Small Cap Growth Fund, Equity Securities,
12,381 units of participation 386,407
* The Chicago Trust Trump Technology Fund, Equity Securities, 222,578 units of
Company participation 715,356
-----------
Total investment in mutual funds 58,877,749
-----------
** Trump Hotels & Casino Trump Hotels & Casino Resorts, Inc. Common Stock, 438,339 shares 821,885
Resorts, Inc. -----------
Participants' Loans Interest rates ranging from 7.00% to 10.50% and maturities ranging
from 2001 through 2015 8,014,175
-----------
$76,410,029
===========
* 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.
Roseland, New Jersey
June 26, 2001