Tellurian Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Employee Severance Costs

Employee Severance Costs

12 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

Note 16 - Employee Severance Costs

The Company is required to record charges for one-time employee severance benefits and other associated costs as incurred. In July 2012, the Company incurred severance costs payable in connection with the termination of the employment of certain employees pursuant to the terms of their employment agreements. For the fiscal year ended June 30, 2013, the Company expensed total employee-related severance costs of $0.8 million to general and administrative expense in the consolidated statements of operations.

On March 31, 2014, the Company sold its interests in Palm Valley and Dingo to Central. Pursuant to the Sale Deed, the Company incurred severance costs payable in connection with the termination of certain MPA employees. For the fiscal year ended June 30, 2014, the Company expensed total employee-related severance costs of $1.2 million to loss from discontinued operations, net of tax, in the consolidated statement of operations.

The Company does not expect any additional benefits or other associated costs related to the terminations of employment as discussed above. The liability related to these severance costs, as of June 30, 2013, is included in the consolidated balance sheets under accrued and other liabilities. A reconciliation of the beginning and ending liability balance for charges to the consolidated statements of operations and cash payments is as follows for the fiscal years ended:



	June 30,
	2014						2013
	Severance - Discontinued Operations			Severance - Termination Benefits			Severance - Termination Benefits
	(In thousands)
Fiscal year beginning balance	$	—		$	418		$	—
Charges to general and administrative expense	—			—			837
Charges to loss from discontinued operations, net of tax	1,210			—			—
Cash payments	(1,210		)	(418		)	(419		)
Fiscal year closing balance	$	—		$	—		$	418

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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