XML 59 R18.htm IDEA: XBRL DOCUMENT
v2.4.1.9

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2014
INCOME TAXES [Abstract] |
INCOME TAXES | J. INCOME TAXES The provision for income taxes is composed of the following:
|  | (in thousands) |
|  | Years ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current income tax expense (benefit) |  |  |  |  |  |  |  |  |
Federal |  | $ | -- |  |  | $ | -- |  |  | $ | -- |
State |  |  | -- |  |  |  | -- |  |  |  | -- |
|  | $ | -- |  |  | $ | -- |  |  | $ | -- |
Deferred income tax expense (benefit) |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | -- |  |  | $ | -- |  |  | $ | (1,093 | )
State |  |  | -- |  |  |  | -- |  |  |  | (64 | )
|  | $ | -- |  |  | $ | -- |  |  | $ | (1,157 | )
The effective income tax rate differs from the U.S. Federal Statutory income tax rate due to the following:
|  | (in thousands) |
|  | Years ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Federal statutory income tax rate |  | $ | (711 | ) |  | $ | (2,509 | ) |  | $ | (4,164 | )
State income taxes, net of federal benefit |  |  | (34 | ) |  |  | (158 | ) |  |  | (245 | )
Incentive stock options |  |  | 79 |  |  |  | 43 |  |  |  | 12 |
Percent depletion carryover |  |  | (129 | ) |  |  | (174 | ) |  |  | (177 | )
Valuation analysis |  |  | 612 |  |  |  | 2,717 |  |  |  | 3,512 |
Other |  |  | 183 |  |  |  | 81 |  |  |  | (95 | )
|  | $ | -- |  |  | $ | -- |  |  | $ | (1,157 | )
The components of deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows:
|  | December 31, |
|  | 2014 |  |  | 2013 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss |  | $ | 10,382 |  |  | $ | 6,930 |
Derivative instruments |  |  | 0 |  |  |  | 96 |
Asset retirement obligation |  |  | 404 |  |  |  | 294 |
Stock based compensation |  |  | 248 |  |  |  | 228 |
Deferred compensation |  |  | 439 |  |  |  | 385 |
Alternative minimum tax credit |  |  | 706 |  |  |  | 706 |
Contribution carryover |  |  | 42 |  |  |  | 37 |
Equity investments |  |  | 629 |  |  |  | 643 |
Percentage depletion carryover |  |  | 2,402 |  |  |  | 2,421 |
|  | $ | 15,252 |  |  | $ | 11,740 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (8,351 | ) |  |  | (5,446 | )
State tax |  |  | (3 | ) |  |  | (9 | )
Marketable securities |  |  | -- |  |  |  | (16 | )
|  | $ | (8,354 | ) |  | $ | (5,471 | )
Net deferred tax assets (liabilities) |  |  | 6,898 |  |  |  | 6,269 |
Less: Valuation Allowance |  |  | (6,898 | ) |  |  | (6,269 | )
Deferred tax liability |  | $ | -- |  |  | $ | -- |
During the year ended December 31, 2014, deferred tax assets increased $3.5 million and deferred tax liabilities increased by $2.9 million. The change in net deferred tax assets was an increase of $629,000 compared to the previous year. This resulted in a net deferred asset of $6.9 million, which is fully offset by a valuation allowance. USE has net operating loss carryovers as of December 31, 2014 of $32.4 million for federal income tax purposes and $29.6 million for financial reporting purposes. The difference of $2.8 million relates to tax deductions for compensation expense for financial reporting purposes for which the benefit will not be recognized until the related deductions reduce taxes payable. The net operating loss carryovers may be carried back two years and forward twenty years from the year the net operating loss was generated. The net operating losses may be used to offset taxable income through 2033. In addition, USE has alternative minimum tax credit carry-forwards of $706,000 which are available to offset future federal income taxes over an indefinite period. The statute of limitations is closed for the tax years through 2010. USE adopted the applicable provisions of ASC 740 to recognize, measure, and disclose uncertain tax positions in the financial statements. Under ASC 740, tax positions must meet a "more-likely-than-not" recognition threshold to be recognized. During the year ended December 31, 2014, no adjustments were recognized for uncertain tax positions. USE recognizes interest and penalties related to uncertain tax positions in income tax expense (benefit). No interest or penalties related to uncertain tax positions have been accrued.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration