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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
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Dec. 31, 2012
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] |
Estimated Useful Lives and Components of Property and Equipment | Land, buildings, improvements, machinery and equipment are carried at cost. Depreciation of buildings, improvements, machinery and equipment is provided principally by the straight-line method over estimated useful lives ranging from 3 to 45 years. Following is a breakdown of the lives over which assets are depreciated:
Machinery and Equipment: |
| Office Equipment | 3 to 5 years
| Aircraft | 15 years
| Field Tools and Hand Equipment | 5 to 7 years
| Vehicles and Trucks | 3 to 7 years
| Heavy Equipment | 7 to 10 years
Buildings and Improvements: |
| Service Buildings | 20 years
| Corporate Headquarter Building | 45 years
Components of Property and Equipment | Components of Property and Equipment as of December 31, 2012 and 2011 are as follows:
|  | (In thousands) |
|  | December 31, |  |  | December 31, |
|  | 2012 |  |  | 2011 |
Oil & Gas properties |  |  |  |  |  |
Unproved |  | $ | 9,169 |  |  | $ | 17,098 |
Wells in progress |  |  | - |  |  |  | 2,909 |
Proved |  |  | 119,919 |  |  |  | 99,496 |
|  |  | 129,088 |  |  |  | 119,503 |
Less accumulated depreciation |  |  |  |  |  |  |  |
depletion and amortization |  |  | (43,454 | ) |  |  | (28,561 | )
Net book value |  |  | 85,634 |  |  |  | 90,942 |
Mining properties |  |  | 20,739 |  |  |  | 20,739 |
Building, land and equipment |  |  | 8,469 |  |  |  | 8,474 |
Less accumulated depreciation |  |  | (4,034 | ) |  |  | (3,746 | )
Net book value |  |  | 4,435 |  |  |  | 4,728 |
Totals |  | $ | 110,808 |  |  | $ | 116,409 |
Mineral Properties | Mineral properties at December 31, 2012 and 2011 reflect capitalized costs associated with our Mt. Emmons molybdenum property near Crested Butte, Colorado. Our carrying balance in the Mt. Emmons property at December 31, 2012 and 2011 is as follows:
| (In thousands) |
| December 31, |  | December 31, |
| 2012 |  | 2011 |
Costs associated with Mount Emmons |  |  |  |
beginning of year |  | $ | 20,739 |  |  | $ | 21,077 |
Development costs |  |  | -- |  |  |  | 16 |
Option payment from Thompson Creek |  |  | -- |  |  |  | (354 | )
Costs at the end of the period |  | $ | 20,739 |  |  | $ | 20,739 |
Assets Held For Sale | In January 2011, we made the decision to sell our Remington Village multifamily project in Gillette, Wyoming and in September 2012, we made the decision to sell our corporate aircraft and related facilities to reduce overhead costs. We plan to use the proceeds to further the development of our oil and gas business, reduction of debt or for general corporate purposes. Operations related to Remington Village are shown in discontinued operations on the accompanying consolidated statements of operations. For additional discussion on assets held for sale, please refer to Note H – Assets Held for Sale.
|  | (In thousands) |
|  | December 31, |  |  | December 31, |
|  | 2012 |  |  | 2011 |
Assets held for sale |  |  |  |  |  |
Remington Village |  | $ | 15,167 |  |  | $ | 18,132 |
Corporate aircraft and facilities |  |  | 1,884 |  |  |  | 4,468 |
|  | $ | 17,051 |  |  | $ | 22,600 |
Reconciliation of the Total Liability for Asset Retirement Obligations | The following is a reconciliation of the total liability for asset retirement obligations:
|  | (In thousands) |
|  | December 31, |  |  | December 31, |
|  | 2012 |  |  | 2011 |
Beginning asset retirement obligation |  | $ | 510 |  |  | $ | 303 |
Accretion of discount |  |  | 34 |  |  |  | 23 |
Liabilities incurred |  |  | 142 |  |  |  | 187 |
Liabilities sold |  |  | -- |  |  |  | (3 | )
Ending asset retirement obligation |  | $ | 686 |  |  | $ | 510 |
Mining properties |  | $ | 162 |  |  | $ | 149 |
Oil & Gas wells |  |  | 524 |  |  |  | 361 |
Ending asset retirement obligation |  | $ | 686 |  |  | $ | 510 |
Stock Based Compensation, Weighted Average Assumptions | USE measures the cost of employee and director services received in exchange for all equity awards granted, including stock options, based on the fair market value of the award as of the grant date. USE computes the fair values of its options granted to employees using the Black Scholes pricing model and the following weighted average assumptions:
| Year Ended December 31,
| 2012 | 2011 | 2010
Risk-free interest rate | 0.82% to 1.41% | 1.77% | 2.24%
Expected lives (years) | 5.0 to 6.0 | 6.0 | 6.0
Expected volatility | 61.87% to 63.59% | 59.64% | 63.79%
Expected dividend yield | -- | -- | --

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- Definition Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph b -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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