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

Quarterly report pursuant to Section 13 or 15(d)

Severance Costs

Severance Costs

3 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Note 17 - Employee Severance Costs

On August 31, 2014, the Company provided a notice of termination to the only remaining employee of its MPA subsidiary. As a result, for the three months ended September 30, 2014, the Company expensed total employee-related severance costs of $475 thousand. The liability related to these severance costs is included in the unaudited condensed consolidated balance sheets under accrued and other liabilities. A reconciliation of the beginning and ending liability balance for charges to general and administrative expense and cash payments for the three months ended September 30, 2014, is as follows:



	Severance - Termination Benefits
	(In thousands)
Fiscal year opening balance	$	—
Charges to general and administrative expense	475
Transfer of opening accrued vacation balance	44
Cash payments	—
Balance at September 30, 2014	$	519

The Company does not expect any additional benefits or other associated costs related to this termination, and severance and accrued vacation described in the above table were paid in cash to the employee on October 31, 2014.

Post termination, this individual is continuing a formal relationship with Magellan by virtue of his continuing status as a resident Australian national board member for each of the Company's three Australian subsidiary entities. Furthermore, the Company expects to enter into a consultancy agreement with this individual in November 2014 under which this individual will provide ongoing consulting services to Magellan with respect to its Australian subsidiaries, including matters related to NT/P82.

- Definition

The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

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