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)

9 Months Ended

Mar. 31, 2015

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:



	March 31, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Securities available-for-sale	$	4,122	$	—	$	—	$	4,122

	June 30, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Securities available-for-sale	$	11,935	$	—	$	—	$	11,935

Liabilities:
Contingent consideration payable ⁽¹⁾	$	—	$	—	$	1,852	$	1,852

⁽¹⁾ See Note 15 - Commitments and Contingencies, below for additional information about this item.

Fair Value Inputs, Assets, Quantitative Information

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	March 31, 2015	June 30, 2014
Contingent consideration payable	Discounted cash flow model	Discount rate	N/A	8.0%
		First production payout	N/A	June 30, 2015
		Second production payout	N/A	N/A

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 other (expense) income. The following table presents a roll forward of the contingent consideration payable for the nine months ended March 31, 2015:



	Total
	(In thousands)
Fiscal year opening balance	$	1,852
Accretion expense of contingent consideration payable	36
Fair value revision of contingent consideration payable	(1,888		)
Balance at March 31, 2015	$	—

- 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.

+ References + Details