0001104659-18-050903.txt : 20180809 0001104659-18-050903.hdr.sgml : 20180809 20180809144423 ACCESSION NUMBER: 0001104659-18-050903 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 23 CONFORMED PERIOD OF REPORT: 20180630 FILED AS OF DATE: 20180809 DATE AS OF CHANGE: 20180809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KIEWIT ROYALTY TRUST CENTRAL INDEX KEY: 0000711477 STANDARD INDUSTRIAL CLASSIFICATION: MINERAL ROYALTY TRADERS [6795] IRS NUMBER: 476131402 STATE OF INCORPORATION: NE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10810 FILM NUMBER: 181004565 BUSINESS ADDRESS: STREET 1: 17TH & FARNAM ST STREET 2: FIRSTIER BANK NA OMAHA - TRUST DIV CITY: OMAHA STATE: NE ZIP: 68102 BUSINESS PHONE: 4023486000 MAIL ADDRESS: STREET 1: FIRSTIER BANK NA OMAHA STREET 2: 17TH & FARNAM ST CITY: OMAHA STATE: NE ZIP: 68102 10-Q 1 a18-14059_110q.htm 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 000-10810

KIEWIT ROYALTY TRUST

(Exact name of registrant as specified in its charter)

Nebraska
(State or other jurisdiction of
incorporation or organization)

47-6131402
(I.R.S. Employer Identification No.)

Trust Division
U.S. Bank National Association
1700 Farnam Street
Omaha, Nebraska 68102
(Address of principal executive offices and zip code)

(402) 536-5100
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer o	Non-accelerated filer o	Smaller reporting company x
		(Do not check if a smaller
		reporting company)	Emerging growth company o

If an emerging growth company, indicate by check mark it the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o No x

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KIEWIT ROYALTY TRUST

FORM 10-Q

For the Three and Six Months Ended June 30, 2018

INDEX

		Page

Part I. FINANCIAL INFORMATION		1

Item 1. Financial Statements		1

Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations		5

Item 4. Controls and Procedures		6

Part II. OTHER INFORMATION		7

Item 1. Legal Proceedings		7

Item 6. Exhibits		7

Forward-Looking Statements

This Form 10-Q, including specifically the section entitled “Trustee’s Discussion and Analysis of Financial Condition and Results of Operations,” includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created thereby. All statements, other than statements of historical fact, included in this Form 10-Q are forward-looking statements. Such statements include, without limitation, certain statements regarding the Trust’s financial position, industry conditions and other matters contained in this Form 10-Q. Although the Trustee believes that the expectations reflected in such forward-looking statements are reasonable, such expectations are subject to numerous risks and uncertainties, and the Trustee can give no assurance that they will prove to be correct. There are many factors, none of which is within the Trustee’s control, that may cause such expectations not to be realized, including, among other things, factors identified in the Trust’s Form 10-K for the year ended December 31, 2017.

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

KIEWIT ROYALTY TRUST
CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

June 30, 2018 and

December 31, 2017

(unaudited)

	June 30, 2018			December 31, 2017
Assets
Cash and cash equivalents	$	526,968		$	651,510
Royalty and overriding royalty interests in coal leases	167,817			167,817
Less accumulated amortization	(167,817		)	(167,817		)

Net royalty and overriding royalty interests in coal leases	—			—

Total assets	$	526,968		$	651,510

Liabilities
Distributions payable to unit holders	$	526,968		$	651,510

Trust Corpus: 12,633,432 units of beneficial interest authorized, issued and outstanding	—			—

Total liabilities and trust corpus	$	526,968		$	651,510

The accompanying notes are an integral part of the condensed financial statements.

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KIEWIT ROYALTY TRUST
CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME
For the three and six months ended June 30, 2018 and 2017
(unaudited)

	Three Months Ended June 30,
	2018			2017

Royalty income	$	87,261		$	98,285
Interest income	1,648			385
Trust expenses	(61,629		)	(57,032		)

Distributable income	$	27,280		$	41,638

Distributable income per unit	$	0.0021593		$	0.0032959

	Six Months Ended June 30,
	2018			2017

Royalty income	$	629,303		$	502,891
Interest income	2,294			481
Trust expenses	(104,629		)	(87,023		)

Distributable income	$	526,968		$	416,349

Distributable income per unit	$	0.0417122		$	0.0329561

CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS
For the six months ended June 30, 2018 and 2017
(unaudited)

	Six Months Ended June 30,
	2018			2017

Trust corpus, beginning of year	$	—		$	—
Distributable income	526,968			416,349
Distributions payable to unit holders	(526,968		)	(416,349		)

Trust corpus	$	—		$	—

The accompanying notes are an integral part of the condensed financial statements.

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KIEWIT ROYALTY TRUST
NOTES TO CONDENSED FINANCIAL STATEMENTS
(unaudited)

Basis of Presentation

The accompanying condensed financial statements have been prepared in accordance with the instructions for Form 10-Q and do not necessarily include all of the information and footnotes required by U.S. generally accepted accounting principles (GAAP) for complete financial statements. In the opinion of U.S. Bank National Association, as sole trustee of the Trust (the “Trustee”), all adjustments necessary for a fair presentation have been included. For further information, refer to the financial statements and footnotes included in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2017.

Summary of Significant Accounting Policies

(a) Basis of Accounting:

The condensed 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 condensed statement of distributable income.

These condensed 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 condensed 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.

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(b) Cash and Cash Equivalents:

The Trust considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents.

(c) Related Party:

The Trust was organized to provide an efficient, orderly and practical means of administering the income received from royalty interests and is administered by the Trustee. Pursuant to the terms of the Trust Indenture, the Trust pays the Trustee an annual fee of $100,000. The Trustee may adjust this fee annually in its sole discretion. The Trust pays a Trustee fee of $25,000 per quarter as long as the Trust has sufficient royalty income to make such payments.

(d) Subsequent Events:

We have evaluated the Trust activity and have concluded that there are no material subsequent events requiring additional disclosure or recognition in these condensed financial statements.

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Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview.

Kiewit Royalty Trust (the “Trust”) is a royalty trust with royalty and overriding royalty interests in certain coal leases. The Trust was formed for the purposes of administering the income received from such coal leases and distributing such income (together with interest earned thereon, if any, less payment of or provision for obligations) to the holders of the units of beneficial interest.

During the three month and six month periods ended June 30, 2018, the Trust received a total of $87,261 and $629,303, respectively, of royalty and overriding royalty payments, net of production expenses. The following table reflects the royalty and overriding royalty payments, net of production expenses, received by the Trust at the following mines:

	Three Months Ended June 30,
	2018		2017

Decker Mine	$	37,261	$	48,285
Spring Creek Mine	50,000		50,000
Total Royalty Income	$	87,261	$	98,285

	Six Months Ended June 30,
	2018		2017
Decker Mine	$	579,303	$	452,891
Spring Creek Mine	50,000		50,000
Total Royalty Income	$	629,303	$	502,891

Decker Mine. Royalty and overriding royalty amounts received by the Trust from the Decker Mine decreased to $37,261 during the second quarter of 2018, as compared to $48,285 received during the same period in 2017. The Decker Mine includes West Decker and East Decker Mine leases. Of the Decker Mines, the primary producer currently is an East Decker Mine. During the six month period ended June 30, 2018, the royalty amounts increased by $126,412, or approximately 28%, as compared to the same period in 2017. The changes during the period were the net result of changes in the relative amounts of coal mined, which was a normal result of the execution of a mining plan encompassing several coal leases, and increasing coal prices. For the first six months of 2018, the Decker Mines sold 1,858,650 tons of coal as compared to 1,216,573 tons of coal for the first six months of 2017. Seasonal fluctuations occur in the relative amounts of coal mined under the leases with a majority of the royalty payments being received during the first and third calendar quarters of the year.

Spring Creek Mine. A royalty payment of $50,000 was received by the Trust from the Spring Creek Mine during the first six months of 2018 and a payment in the same amount was also received during the first six months of 2017. Royalties with respect to this mine are typically paid during the second half of each calendar year but the timing of the first payment varies, and it can be received at the end of the second quarter or beginning of the third quarter.

Interest Income. The Trust generally earns interest on the royalty payments prior to the distribution to the Unit Holders. During the six months ended June 30, 2018, the Trust earned $2,294 of interest compared to $481 of interest earned during the six months ended June 30, 2017. The increase in interest

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resulted from the trust reserve amount being held in the account during this period as well as from the rising interest rates.

Trust Expenses. Trust expenses increased to $104,629 for the first six months of 2018, as compared to $87,023 for the same period in 2017. Trust expenses included fees of the Trustee, accountants, attorneys, and other professionals that the Trustee employs in the administration of the Trust. Trust expenses increased to $61,629 for the three month period ending June 30, 2018, as compared to $57,032 for the same period in 2017. This increase was due to timing of when the Trust paid its expenses, the increase in Trustee fees, and the general increase of fees for other professionals.

Liquidity and Capital Resources. The Trust’s primary source of liquidity is the royalty payments. In accordance with the provisions of the Trust Indenture, generally all income received by the Trust, net of Trust expenses and any amounts placed in reserves, is distributed to the Unit Holders on a quarterly basis as long as the Trust has sufficient income.

Trust Reserves. The Trust did not establish any trust reserves in the second quarter of 2017 or 2018. During the first quarter of 2018, the Trust established a reserve in the amount of $499,688, and during the first quarter of 2017, the Trust established a reserve in the amount of $374,712. These reserves were established to hold the funds until the next biannual payment anticipated at the end of the second quarter. The Trust currently pays biannual distributions within 10 days after June 30 and December 31 of each year to the extent funds are available.

Change in Trust Corpus. During the first six months of 2018 and 2017, the trust corpus remained unchanged.

Off-Balance Sheet Arrangements. As required by the Trust Indenture, the Trust is intended to be passive in nature and the Trustee does not have any control over or any responsibility relating to the operation of the mines under which the Trust has any royalty interests and overriding royalty interests. The Trustee has powers to collect and distribute proceeds received by the Trust and pay Trust liabilities and expenses and its actions have been limited to those activities. As a result, the Trust has not engaged in any off-balance sheet arrangements.

Critical Accounting Policies and Estimates. The Trust’s condensed financial statements are prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America, and as such there are no critical accounting policies or estimates.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this Form 10-Q, the officer of the Trustee conducted an evaluation of the Trust’s disclosure controls and procedures (as defined in Rules 13a-15(e) of the Securities Exchange Act of 1934). Based upon this evaluation, the officer of the Trustee concluded that the Trust’s disclosure controls and procedures were effective in timely alerting him of any material information relating to the Trust that is required to be disclosed by the Trust in the reports it files or submits under the Securities Exchange Act of 1934.

Changes in Internal Control Over Financial Reporting. There were no changes in the Trust’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) that occurred during the Trust’s most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Trust’s internal control over financial reporting.

Limitations on Controls. The Trustee does not expect that the Trust’s disclosure controls and procedures or the Trust’s internal control over financial reporting will prevent or detect all error and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of

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controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Trust have been detected.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

There are no material legal proceedings to which the Trust is a party.

Item 6. Exhibits.

4.1		Kiewit Royalty Trust Indenture dated May 17, 1982, as amended June 9, 1982 and June 23, 1982 (filed as Exhibit 4.1 to the Trust’s Form 10-K filed with the Securities and Exchange Commission on March 28, 2002, and incorporated herein by reference).

4.2		Order dated September 23, 1994, of the County Court of Douglas County, Nebraska (filed as Exhibit 4.2 to the Trust’s Form 10-K filed with the Securities and Exchange Commission on March 28, 2002, and incorporated herein by reference).

4.3		Order dated August 16, 2016, of the County Court of Douglas County, Nebraska (filed as Exhibit 4.3 for the Trust’s Form 10-Q with the Securities and Exchange Commission on November 14, 2016 and incorporated herein by reference).

31*		Certification of Senior Managing Director pursuant to Rule 13a-14 of the Securities Exchange Act of 1934.

32**		Certification of Senior Managing Director pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


101.INS***		XBRL Instance Document

101.SCH***		XBRL Taxonomy Extension Schema Document

101.CAL***		XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB***		XBRL Taxonomy Extension Label Linkbase Document

101.PRE***		XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF***		XBRL Taxonomy Extension Definition Linkbase Document

* Filed herewith

** Furnished herewith

*** Furnished herewith. Pursuant to applicable federal securities rules and regulations, the Trust has complied with the reporting obligation relating to the submission of interactive data files in such exhibits. Therefore, the Trust is not subject to liability under any anti-fraud provisions of the federal securities laws if the Trust (i) makes a good faith attempt to comply with the interactive data file submission and posting requirements and (ii) upon becoming aware that any such data file fails to comply with such requirements, promptly amends any noncompliant data file. The Trust is also not subject to the liability and anti-fraud provisions of the federal securities laws if an error or omission in an electronic filing results solely from electronic transmission errors beyond the filer’s control and, upon becoming aware of such error or omission, the filer corrects the error or omission by filing an electronic amendment as soon as reasonably practicable. Users of this data are advised that the interactive data files are furnished and not filed, are not part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Exchange Act, as amended, and otherwise are not subject to liability under those sections.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	KIEWIT ROYALTY TRUST


	By:	U.S. Bank National Association in its
		capacity as Trustee and not in its
		individual capacity or otherwise

Dated: August 9, 2018

		By:	/s/ Wood Hull
			Wood Hull, Senior Managing Director

(The Trust does not have a principal financial or chief accounting officer or any other officers.)

EX-31 2 a18-14059_1ex31.htm EX-31

Exhibit 31

CERTIFICATION

I, Wood Hull, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Kiewit Royalty Trust, for which U.S. Bank National Association acts as Trustee;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, distributable income and changes in trust corpus of the registrant as of, and for, the periods presented in this quarterly report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), or for causing such procedures to be established and maintained, for the registrant and I have:

(a) designed such disclosure controls and procedures, or caused such controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report, based on my evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors:

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2018


/s/ Wood Hull
Wood Hull, Senior Managing Director
U.S. Bank National Association, as Trustee

EX-32 3 a18-14059_1ex32.htm EX-32

Exhibit 32

Certification Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q for the period ended June 30, 2018 (the “Report”) of Kiewit Royalty Trust (the “Trust”), as filed with the Securities and Exchange Commission on the date hereof, I, Wood Hull, Senior Managing Director of U.S. Bank National Association, the trustee of the Trust, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.

Date: August 9, 2018


/s/ Wood Hull
Wood Hull, Senior Managing Director
U.S. Bank National Association, as Trustee

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<div> <div>   (a)Basis of Accounting:   The condensed 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 condensed statement of distributable income.   These condensed 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 condensed financial statements of the Trust differ from financial statements prepared in conformity with United States generally accepted accounting principles (GAAP) because of the following:   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt;"> · </td><td style="width:1pt;"></td><td align="left" valign="top"> Royalty income and interest income are recognized in the month received rather than in the month of production.</td></tr></table></div>   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt;"> · </td><td style="width:1pt;"></td><td align="left" valign="top"> Expenses generally are not accrued.</td></tr></table></div>   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt;"> · </td><td style="width:1pt;"></td><td align="left" valign="top"> 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.</td></tr></table></div>   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt;"> · </td><td style="width:1pt;"></td><td align="left" valign="top"> Reserves may be established for contingencies that would not be recorded under GAAP.</td></tr></table></div>   <div /></div> </div>

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629303

87261

<div> <div>   Summary of Significant Accounting Policies   (a)Basis of Accounting:   The condensed 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 condensed statement of distributable income.   These condensed 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 condensed financial statements of the Trust differ from financial statements prepared in conformity with United States generally accepted accounting principles (GAAP) because of the following:   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt;"> · </td><td style="width:1pt;"></td><td align="left" valign="top"> Royalty income and interest income are recognized in the month received rather than in the month of production.</td></tr></table></div>   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt;"> · </td><td style="width:1pt;"></td><td align="left" valign="top"> Expenses generally are not accrued.</td></tr></table></div>   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt;"> · </td><td style="width:1pt;"></td><td align="left" valign="top"> 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.</td></tr></table></div>   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt;"> · </td><td style="width:1pt;"></td><td align="left" valign="top"> Reserves may be established for contingencies that would not be recorded under GAAP.</td></tr></table></div>   (b)Cash and Cash Equivalents:   The Trust considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents.   (c)Related Party:   The Trust was organized to provide an efficient, orderly and practical means of administering the income received from royalty interests and is administered by the Trustee.  Pursuant to the terms of the Trust Indenture, the Trust pays the Trustee an annual fee of $100,000.  The Trustee may adjust this fee annually in its sole discretion.  The Trust pays a Trustee fee of $25,000 per quarter as long as the Trust has sufficient royalty income to make such payments.   (d)Subsequent Events:   We have evaluated the Trust activity and have concluded that there are no material subsequent events requiring additional disclosure or recognition in these condensed financial statements.   <div /></div> </div>

100000

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Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2018 shares
Entity Registrant Name	KIEWIT ROYALTY TRUST
Entity Central Index Key	0000711477
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	0
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

XML 11 R2.htm IDEA: XBRL DOCUMENT

CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 526,968	$ 651,510
Royalty and overriding royalty interests in coal leases	167,817	167,817
Less accumulated amortization	(167,817)	(167,817)
Total assets	526,968	651,510
Liabilities
Distributions payable to unit holders	526,968	651,510
Total liabilities and trust corpus	$ 526,968	$ 651,510

XML 12 R3.htm IDEA: XBRL DOCUMENT

CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (Parenthetical) - shares	Jun. 30, 2018	Dec. 31, 2017
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

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CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME - USD ($)	3 Months Ended		6 Months Ended
CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Royalty income	$ 87,261	$ 98,285	$ 629,303	$ 502,891
Interest income	1,648	385	2,294	481
Trust expenses	(61,629)	(57,032)	(104,629)	(87,023)
Distributable income	$ 27,280	$ 41,638	$ 526,968	$ 416,349
Distributable income per unit (in dollars per unit)	$ 0.0021593	$ 0.0032959	$ 0.0417122	$ 0.0329561

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CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Distributable income	$ 526,968	$ 416,349
Distributions payable to unit holders	$ (526,968)	$ (416,349)

XML 15 R6.htm IDEA: XBRL DOCUMENT

Basis of Presentation

6 Months Ended

Jun. 30, 2018

Basis of Presentation

XML 16 R7.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies

(a)Basis of Accounting:

The condensed 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 condensed statement of distributable income.

The condensed 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)Cash and Cash Equivalents:

The Trust considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents.

(c)Related Party:

(d)Subsequent Events:

We have evaluated the Trust activity and have concluded that there are no material subsequent events requiring additional disclosure or recognition in these condensed financial statements.

XML 17 R8.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Basis of Accounting: