Contractual Obligations

12 Months Ended

Sep. 30, 2012

Our future minimum commitments under non-cancelable contractual obligations are as follows:



Year Ended September 30,	Senior Convertible Notes, including Interest		Operating Leases		Purchase Obligations
2013	$	7,188	$	6,497	$	7,225
2014	7,188		7,724		4,834
2015	294,687		6,907		3,730
2016	—		6,575		3,648
2017	—		5,563		1,921
Thereafter	—		31,523		—
Total	$	309,063	$	64,789	$	21,358

Senior Convertible Notes

As of September 30, 2012, investors may require us to repurchase all or a portion of their Notes at a purchase price in cash equal to the full principle amount of the Notes plus any accrued and unpaid interest on or after January 15, 2015, or upon the occurrence of certain events including specified corporate events or trading. For further information, see Note 10 above.

Operating Leases

We lease office space and equipment under non-cancelable operating leases. We lease our current headquarters in Redmond, Washington under an operating lease that expires on May 31, 2013.

On June 13, 2012, we entered into a lease agreement for our future corporate headquarters with Kilroy Realty, L.P. for office space located at 601 108th Avenue Northeast, Bellevue, Washington. Under this lease, which provides for an initial ten-year term with an option to renew the lease for an additional five years, Concur will pay approximately $3.6 million in base rent per year over the initial term of the lease, subject to an annual increase equal to three percent of the then-current base rent. This lease will expire ten years after the lease commencement date, unless renewed or extended pursuant to its terms. We will take possession of the premises in May 2013. Amounts for both rent and common area maintenance are included in our contractual obligation in the table above.

We also lease office space in the United States in the states of Arizona, California, Georgia, Illinois, Massachusetts, New Jersey, Texas and Virginia, and internationally in Australia, Canada, China (Hong Kong), Czech Republic, France, Germany, India, Italy, Japan, Mexico, Netherlands, Philippines, Singapore, and the United Kingdom. We do not include amounts for certain operating expenses under these leases such as common area maintenance.

Purchase Obligations

We have future minimum purchase obligations under arrangements with third parties that are enforceable and legally binding. Future purchase obligations are related to services to support operations and sales and marketing and are based on contracted commitments.

Acquisition-related Contingent Consideration

Contingent consideration is recorded at fair value as of the acquisition date, and remeasured to fair value each reporting period, with any change in the value recorded as income or expense. As of September 30, 2012, we recorded $22.7 million current acquisition-related contingent consideration associated with the acquisition of TripIt. Final payout may vary from our accrual as of September 30, 2012.

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

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