Percival Lowell Trust UW

“The endowment funds are used for support of lowell observatory and for reinvestment. During 2017, the sole trustee successfully petitioned the courts to remove the perpetual restrictions on the trust assets. The trust assets were reclassified to temporarily restricted net assets.”

“The following disclosure is related to the combined financial statements of the lowell observatory, trust u/w of percival lowell, and the lowell observatory foundation: the observatory and the foundation are exempt from income taxes under both internal revenue code (irc) section 501(c)(3) and arizona income tax laws. The observatory is classified as other than a private foundation under irc section 509(a)(1). The foundation is classified as other than a private foundation under irc section 509(a)(3) as a supporting organization of the observatory. The trust qualifies as an irc section 509(a)(3) supporting organization of the observatory. No provision for federal and state income taxes has been made. Income from certain activities not directly related to the organization's tax-exempt purpose, however, may be subject to taxation as unrelated business taxable income (ubti). Gaap requires management to perform an evaluation of all tax positions taken or expected to be taken in the course of preparing the organization's tax returns to determine whether the tax positions meet a "more likely than not" standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes. The organization is only subject to income taxes on ubti as applicable. The organization is required to file informational returns for federal and state purposes and, if it has ubti, federal and state income tax returns. Management has performed its evaluation of tax positions taken on all open tax returns and has determined that there were no positions taken that do not meet the "more likely than not" standard. From time to time, the organization may be subject to penalties and interest assessed by various taxing authorities, which are classified as general and administrative expenses if they occur.”

“Calculation of current year investment gains/(losses): net unrealized gains: 1,262,071 net realized gains: 1,568,382 interest income: 189,771 dividend income: 885,602 net investment income: 3,905,826”