Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2012

Financial Assets and Liabilities Measured at Fair Value

Our financial assets and liabilities measured at fair value as of December 31, 2012, are summarized below:



	Fair Value Measurement Using						Assets/Liabilities at Fair Value
	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Assets:
Cash equivalents ⁽¹⁾:
Time deposits	$	44,992	$	—	$	—	$	44,992
Commercial paper	—		102,113		—		102,113
Total cash and cash equivalents	44,992		102,113		—		147,105
Short-term investments:
Commercial paper	—		109,170		—		109,170
Certificates of deposit	—		108,525		—		108,525
Other fixed income securities	—		34,650		—		34,650
Total short-term investments	—		252,345		—		252,345
Liabilities:
Acquisition-related contingent consideration	$	—	$	—	$	27,056	$	27,056

⁽¹⁾ Included in cash and cash equivalents in the consolidated balance sheets as of December 31, 2012, in addition to $85.1 million of cash.

Our financial assets and liabilities measured at fair value as of September 30, 2012, are summarized below:



	Fair Value Measurement Using						Assets/Liabilities at Fair Value
	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Assets:
Cash equivalents ⁽¹⁾:
Time deposits	$	45,323	$	—	$	—	$	45,323
Commercial paper	—		136,072		—		136,072
Other fixed income securities	—		7,074		—		7,074
Total cash and cash equivalents	45,323		143,146		—		188,469
Short-term investments:
Commercial paper	—		86,963		—		86,963
Certificates of deposit	—		79,503		—		79,503
Other fixed income securities	—		34,596		—		34,596
Total short-term investments	—		201,062		—		201,062
Liabilities:
Acquisition-related contingent consideration	$	—	$	—	$	22,692	$	22,692

⁽¹⁾ Included in cash and cash equivalents in the consolidated balance sheets as of September 30, 2012, in addition to $113.8 million of cash.

Reconciliation for Liabilities Measured at Fair Value

The following table presents a reconciliation of TripIt contingent consideration liability measured at fair value using significant unobservable inputs (Level 3) as of December 31, 2012:



Balance as of September 30, 2012	$	22,692
Total losses:
Recorded as revaluation of contingent consideration	2,809
Recorded as compensation expense	1,555
Balance as of December 31, 2012	$	27,056

The following table presents a reconciliation of TripIt contingent consideration liability measured at fair value using significant unobservable inputs (Level 3) as of December 31, 2011:



Balance as of September 30, 2011	$	30,972
Total (gains) and losses:
Recorded as revaluation of contingent consideration	(2,790		)
Recorded as compensation expense	1,915
Balance as of December 31, 2011	$	30,097

GlobalExpense Contingent Consideration

In the fourth quarter of 2011, we completed the acquisition of GlobalExpense Limited (“GlobalExpense Acquisition”). As part of the GlobalExpense Acquisition, we agreed to pay additional cash consideration totaling up to £2.0 million (USD $3.2 million), based on the achievement of certain revenue targets through September 30, 2012. We re-measured the fair value of the contingent consideration each reporting period based on GlobalExpense’s achievement of revenue targets. The change in fair value of contingent consideration was recorded in the consolidated statements of operations. The fair value of the contingent consideration was estimated by applying a probability-based model, which utilized significant inputs that are unobservable in the market. Key assumptions included a weighted probability of achieving certain revenue targets through September 30, 2012 at each reporting period. As of September 30, 2012, the revenue targets were fully met. The additional contingent consideration of £2.0 million (USD $3.2 million) was recorded as acquisition-related liabilities in the consolidated balance sheets.

The following table presents a reconciliation of the contingent consideration measured at fair value using significant unobservable inputs (Level 3) as of December 31, 2011:



Balance as of September 30, 2011	$	2,518
Total (gains) and losses:
Recorded as revaluation of contingent consideration	351
Foreign currency translation	(124		)
Balance as of December 31, 2011	$	2,745

- 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