Tellurian Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2013

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents information about significant unobservable inputs to the Company's Level 3 financial liability measured at fair value on a recurring basis as follows:



Description	Valuation technique	Significant unobservable inputs	September 30, 2013	June 30, 2013
Contingent consideration payable	Discounted cash flow model	Discount rate	8.0%	8.0%
		First production payout	December 31, 2015	December 31, 2015
		Second production payout	December 31, 2016	December 31, 2016

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents items required to be measured at fair value on a recurring basis by the level in which they are classified within the valuation hierarchy as follows:



	September 30, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents ⁽¹⁾	$	25,647	$	—	$	—	$	25,647
Securities available for sale ⁽²⁾	67		—		—		67
	$	25,714	$	—	$	—	$	25,714
Liabilities:
Contingent consideration payable ⁽³⁾	$	—	$	—	$	4,017	$	4,017

	June 30, 2013
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents ⁽¹⁾	$	26,270	$	—	$	—	$	26,270
Securities available for sale ⁽²⁾	44		—		—		44
	$	26,314	$	—	$	—	$	26,314
Liabilities:
Contingent consideration payable ⁽³⁾	$	—	$	—	$	3,940	$	3,940

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

Adjustments to the fair value of the contingent consideration payable are recorded in the unaudited condensed consolidated statements of operations under net interest income. The following table presents a roll forward of the contingent consideration payable for the three months ended September 30, 2013:



	Total
	(In thousands)
Fiscal year beginning balance	$	3,940
Accretion of contingent consideration payable	77
September 30, 2013	$	4,017

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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