Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Entity Registrant Name | KIEWIT ROYALTY TRUST |
Entity Central Index Key | 0000711477 |
Document Type | 10-K |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Public Float | $ | $ 0 |
Entity Common Stock, Shares Outstanding | shares | 0 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
STATEMENTS OF ASSETS, LIABILITI
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 396,526 | $ 735,748 |
Royalty and overriding royalty interests in coal leases | 167,817 | 167,817 |
Less accumulated amortization | (167,817) | (167,817) |
Total assets | 396,526 | 735,748 |
Liabilities | ||
Distributions payable to unit holders | 396,526 | 735,748 |
Total liabilities and trust corpus | $ 396,526 | $ 735,748 |
STATEMENTS OF ASSETS, LIABILI_2
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Beneficial interest units, authorized (in shares) | 12,633,432 | 12,633,432 |
Beneficial interest units, issued (in shares) | 12,633,432 | 12,633,432 |
Beneficial interest units, outstanding (in shares) | 12,633,432 | 12,633,432 |
STATEMENTS OF DISTRIBUTABLE INC
STATEMENTS OF DISTRIBUTABLE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Royalty income | $ 1,183,904 | $ 1,464,943 |
Interest income | 7,409 | 7,562 |
Trust expenses | (188,398) | (209,789) |
Distributable income | $ 1,002,915 | $ 1,262,716 |
Distributable income per unit (in dollars per unit) | $ 0.079386 | $ 0.099950 |
STATEMENTS OF CHANGES IN TRUST
STATEMENTS OF CHANGES IN TRUST CORPUS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Distributable income | $ 1,002,915 | $ 1,262,716 |
Distributions payable to unit holders | $ (1,002,915) | $ (1,262,716) |
Summary of Significant Accounti
Summary of Significant Accounting Policies: | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies: | 1 . Summary of Significant Accounting Policies: (a) The financial statements of the Trust, as prepared on the modified cash basis, reflect the Trust's assets, liabilities, trust corpus, and distributable income as follows: 1. Royalty income and interest income are recognized in the month in which amounts are received by the Trust. 2. Trust expenses, consisting principally of routine general and administrative costs, include payments made during the accounting period. 3. Reserves for liabilities that are contingent or uncertain in amount may also be established if considered necessary. 4. Net royalty and overriding royalty interests that are producing properties are amortized using the unit-of-production method. This amortization is shown as a reduction of trust corpus. 5. Distributions to Unit Holders are recognized when declared by the Trustee. 6. Production withholding taxes withheld from Unit Holder distributions and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from royalty income in the statement of distributable income. These statements differ from financial statements prepared in accordance with GAAP and were prepared on the modified cash basis of reporting, which is considered to be the most meaningful because Distributions to Unit Holders are based on net cash receipts. This comprehensive basis of accounting, other than GAAP, corresponds to the accounting permitted for royalty trusts by the U.S. Securities and Exchange Commission as specified by Staff Accounting Bulletin Topic 12E, Financial Statements of Royalty Trusts . The financial statements of the Trust differ from financial statements prepared in conformity with United States generally accepted accounting principles (GAAP) because of the following: · Royalty income and interest income are recognized in the month received rather than in the month of production. · Expenses generally are not accrued. · Amortization of the net royalty and overriding royalty interests is shown as a reduction to Trust corpus and not as a charge to operating results. · Reserves may be established for contingencies that would not be recorded under GAAP. (b) The Trust considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents. (c) The Trust was organized to provide an efficient, orderly and practical means of administering the income received from royalty interests and is administered by U.S. Bank National Association, as the sole trustee (the "Trustee"). Pursuant to the terms of the Trust Indenture, the Trust paid the Trustee an annual fee of $100,000 for fiscal years 2019 and 2018, payable each quarter in the amount of $25,000. The Trustee may adjust this fee annually in its sole discretion. The Trust pays a Trustee fee each quarter as long as the Trust has sufficient royalty income to make such payments. (d) We have evaluated the Trust activity and have concluded that there are no material subsequent events requiring additional disclosure or recognition in these financial statements. |
Trust Organization and Provisio
Trust Organization and Provisions: | 12 Months Ended |
Dec. 31, 2019 | |
Trust Organization and Provisions: | 2. Trust Organization and Provisions: The Trust was established on May 17, 1982. Units of beneficial interest ("Units") in the Trust were distributed on June 23, 1982 to Class B and Class C shareholders of record of Peter Kiewit Sons', Inc. (now known as Level 3 Communications, Inc.) (the "Trustor"), as of June 10, 1982. These shareholders received one Unit in the Trust for each share of the Trustor's stock held. On June 28, 1982, the Trustor conveyed to the Trust royalty and overriding royalty interests owned by the Trustor's subsidiaries in certain coal properties in the States of Montana and Wyoming. The terms of the Trust Indenture provide, among other things, that: (a) the Trust shall not engage in any business or investment activity of any kind or acquire any assets other than those initially conveyed to the Trust; (b) the Trustee may not sell all or any part of the royalty interests unless approved by a majority of Unit Holders outstanding, in which case the sale must be for cash and the proceeds promptly distributed; (c) the Trustee may establish a cash reserve for the payment of any liability which is contingent or uncertain in amount; (d) the Trustee will make cash distributions to the Unit Holders in January and July of each year as discussed in Note 4; and (e) in September 1994, the Trust Indenture was amended to authorize the Trustee to invest funds in government obligations, government-secured obligations and funds registered pursuant to the Investment Company Act of 1940. Pursuant to the terms of the Trust Indenture, the Trust shall terminate upon the first to occur of the following events: (i) at such time that the Trust's net revenues for each of the three successive years are less than $1 million per year, (ii) the Unit Holders vote in favor of termination at a meeting, or (iii) the expiration of twenty-one years after the death of the last survivor of the issue in being on May 17,1982 of any member of the Board of Directors of Peter Kiewit Sons', Inc. on May 17, 1982. As of the date of this report, none of these termination provisions has been triggered. |
Royalty and Overriding Royalty
Royalty and Overriding Royalty Interests: | 12 Months Ended |
Dec. 31, 2019 | |
Royalty and Overriding Royalty Interests: | 3. Royalty and Overriding Royalty Interests: The cash received by the Trustee from the royalty interests will consist of a specified amount per ton or a specified fraction of the value of the total production of the property, free of the expense of development and operation. Net royalty and overriding royalty interests that are producing properties are amortized using the unit-of-production method. This amortization is shown as a reduction of Trust corpus. The royalty interests are fully amortized. The initial carrying value of the royalty and overriding royalty interests in coal leases of $167,817 represents the Trustor's historical net book value at the date of the transfer to the Trust. |
Distributions to Unit Holders_
Distributions to Unit Holders: | 12 Months Ended |
Dec. 31, 2019 | |
Distributions to Unit Holders: | 4. Distributions to Unit Holders: The Trust determines distributions after the second and fourth quarters. The distribution amount is the excess of (i) the cash received during the applicable period which is attributable to royalties plus any decrease in cash reserves, plus any other cash receipts of the Trust during the period over (ii) the liabilities of the Trust paid during the period, plus any increase in cash reserves. The distribution amount is payable to Unit Holders of record as of the last business day of each period. If paid, the cash distributions are made biannually within the first ten days of January and July. Historically, the Trust made quarterly distributions to the extent funds were available. On August 16, 2016, the Court approved modifications to the Trust Indenture, which included permitting biannual distributions within ten days after June 30 and December 31 of each year to the extent funds are available. Commencing with the third quarter of 2016, the Trust ceased making quarterly distributions and now makes biannual distributions within 10 days after the quarters ending June 30 and December 31. |
Income Taxes_
Income Taxes: | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes: | 5. Income Taxes: Provision for federal and state income taxes has not been made in the financial statements since the Trust has been recognized by the IRS as a "grantor trust" which is not a taxable entity. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited): | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Data (Unaudited): | 6. Selected Quarterly Financial Data (Unaudited): The following is a summary of the unaudited quarterly financial information: Distributable Distributable Royalty Income Income Income Per Unit For the year ended December 31, 2019: March 31, 2019 $ 658,972 $ — $ — June 30, 2019 26,040 606,389 0.047999 September 30, 2019 457,911 — — December 31, 2019 40,981 396,526 0.031387 $ 1,183,904 $ 1,002,915 $ 0.079386 Distributable Distributable Royalty Income Income Income Per Unit For the year ended December 31, 2018: March 31, 2018 $ 542,042 $ — $ — June 30, 2018 87,261 526,968 0.041712 September 30, 2018 771,106 — — December 31, 2018 64,534 735,748 0.058238 $ 1,464,943 $ 1,262,716 $ 0.099950 |
Subsequent Events_
Subsequent Events: | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events: | 7. Subsequent Events: On March 11, 2020 the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The Trust cannot reasonably estimate the length or severity of this pandemic, and the Trust currently cannot anticipate the impact on its financial results or results of operations for fiscal 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Accounting: | (a) The financial statements of the Trust, as prepared on the modified cash basis, reflect the Trust's assets, liabilities, trust corpus, and distributable income as follows: 1. Royalty income and interest income are recognized in the month in which amounts are received by the Trust. 2. Trust expenses, consisting principally of routine general and administrative costs, include payments made during the accounting period. 3. Reserves for liabilities that are contingent or uncertain in amount may also be established if considered necessary. 4. Net royalty and overriding royalty interests that are producing properties are amortized using the unit-of-production method. This amortization is shown as a reduction of trust corpus. 5. Distributions to Unit Holders are recognized when declared by the Trustee. 6. Production withholding taxes withheld from Unit Holder distributions and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from royalty income in the statement of distributable income. These statements differ from financial statements prepared in accordance with GAAP and were prepared on the modified cash basis of reporting, which is considered to be the most meaningful because Distributions to Unit Holders are based on net cash receipts. This comprehensive basis of accounting, other than GAAP, corresponds to the accounting permitted for royalty trusts by the U.S. Securities and Exchange Commission as specified by Staff Accounting Bulletin Topic 12E, Financial Statements of Royalty Trusts . The financial statements of the Trust differ from financial statements prepared in conformity with United States generally accepted accounting principles (GAAP) because of the following: · Royalty income and interest income are recognized in the month received rather than in the month of production. · Expenses generally are not accrued. · Amortization of the net royalty and overriding royalty interests is shown as a reduction to Trust corpus and not as a charge to operating results. · Reserves may be established for contingencies that would not be recorded under GAAP. |
Cash and Cash Equivalents: | (b) The Trust considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents. |
Related Party: | (c) The Trust was organized to provide an efficient, orderly and practical means of administering the income received from royalty interests and is administered by U.S. Bank National Association, as the sole trustee (the "Trustee"). Pursuant to the terms of the Trust Indenture, the Trust paid the Trustee an annual fee of $100,000 for fiscal years 2019 and 2018, payable each quarter in the amount of $25,000. The Trustee may adjust this fee annually in its sole discretion. The Trust pays a Trustee fee each quarter as long as the Trust has sufficient royalty income to make such payments. |
Subsequent Events: | (d) We have evaluated the Trust activity and have concluded that there are no material subsequent events requiring additional disclosure or recognition in these financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | |
Related Party: | ||
Trust pays to Trustee | $ 100,000 | $ 100,000 |
Quarterly Trustee Fee | $ 25,000 | |
Subsequent Events: | ||
Number of material subsequent events | item | 0 |
Trust Organization and Provis_2
Trust Organization and Provisions: (Details) $ in Millions | Jun. 23, 1982shares | Dec. 31, 2019USD ($)item |
Number of units issued for each share of the Trustor's stock held | shares | 1 | |
Successive period for which threshold net revenues is to be maintained to avoid termination of the Trust | 3 years | |
Minimum net revenues to be maintained per year to avoid termination of the Trust | $ | $ 1 | |
Period after the death of the last survivor of the issue in being on May 17, 1982 for termination of trust | 21 years | |
Number of termination provisions that has been triggered as of reporting date | item | 0 |
Royalty and Overriding Royalt_2
Royalty and Overriding Royalty Interests: (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Initial carrying value of royalty and overriding royalty interests in coal leases | $ 167,817 | $ 167,817 |
Distributions to Unit Holders_
Distributions to Unit Holders: (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Number of business days from the first day of the quarter which quarterly cash distributions are made | 10 days |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited): (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Royalty Income | $ 40,981 | $ 457,911 | $ 26,040 | $ 658,972 | $ 64,534 | $ 771,106 | $ 87,261 | $ 542,042 | $ 1,183,904 | $ 1,464,943 |
Distributable Income | $ 396,526 | $ 606,389 | $ 735,748 | $ 526,968 | $ 1,002,915 | $ 1,262,716 | ||||
Distributable Income Per Unit (in dollars per unit) | $ 0.031387 | $ 0.047999 | $ 0.058238 | $ 0.041712 | $ 0.079386 | $ 0.099950 |