Description of the Company and Basis of Presentation

9 Months Ended

Jun. 30, 2011

Description of the Company and Basis of Presentation

Description of the Company and Basis of Presentation

Note 1. Description of the Company and Basis of Presentation

Throughout these financial statements Concur Technologies, Inc. is referred to as "Concur," "we," "us" and "our." We report our operating results on the basis of a fiscal year that starts October 1 and ends September 30. We refer to our fiscal years ended September 30, 2008, 2009, 2010 and 2011, as "2008", "2009," "2010" and "2011." All dollar, option and share amounts are reported in thousands, unless otherwise noted.

Description of the Company

We are a leading global provider of on-demand Employee Spend Management solutions. Our integrated travel and expense software solutions enable organizations to control costs by automating the processes used to manage employee spending. Our solutions unite online travel procurement with automated expense reporting, streamline corporate event management, and optimize the process of managing vendor payments, employee check requests and direct reimbursements. Our unified approach to managing these processes provides our customers with visibility into their employee spending, which helps them analyze trends, influence budget decisions, improve forecasting, and monitor and enforce compliance with their corporate policies and external regulations, such as the Sarbanes-Oxley Act of 2002.

Our core mission is to continuously innovate to reduce the costs of Employee Spend Management for our customers. We work closely with our customers to identify opportunities to increase the value of our solutions by streamlining the travel procurement, expense reporting and vendor payment processes, reducing operating costs, improving internal controls, enhancing the overall user experience and user adoption rates, and enabling customers to gain greater insight into their spending patterns through comprehensive analytics.

We sell our solutions primarily as subscription services. We market and sell our solutions worldwide through our direct sales organization and through indirect distribution channels such as strategic resellers.

Concur^®, Concur^® Expense, Concur^® Travel & Expense, Concur^® Cliqbook Travel, Concur^® Invoice, Concur^® Connect, Concur^® ExpenseLink, Concur^® Advantage, Concur Premier, Concur^® Breeze, and TripIt are among the registered trademarks and registered service marks of Concur or our subsidiaries, in the United States and other countries. Other parties' trademarks and service marks are the property of their respective owners and should be treated as such.

Basis of Presentation

The accompanying financial statements present our income statements, balance sheets and cash flow statements on a consolidated basis. These unaudited financial statements include the accounts of Concur and our subsidiaries. We have eliminated all intercompany accounts and transactions in these financial statements.

In addition, we hold a controlling interest (75 percent voting interest) in Concur (Japan) Ltd., ("Concur Japan"), a Japanese joint venture as of June 30, 2011. We have consolidated the accounts of Concur Japan with the accounts of Concur, and we have recorded the noncontrolling interest for the minority investors' interests in the equity and operations of Concur Japan.

We have prepared the accompanying unaudited financial statements in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. In our opinion, we have included all adjustments necessary for a fair presentation. These adjustments consist of normal recurring items. Our unaudited financial statements are not necessarily indicative of results that may be expected for any other interim period or for the full year. These unaudited financial statements should be read in conjunction with the financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2010, filed with the Securities and Exchange Commission on November 18, 2010.

Reclassifications

Certain amounts previously presented for prior periods have been reclassified to conform to current presentation. The reclassifications had no effect on net income or total stockholders' equity. Also see Note 10 for further information about the prior period correction related to income taxes.