Special Charges—The following is a summary of the components of special charges:



	Three months ended July 31,					Six months ended July 31,
	2013			2012		2013		2012
Employee severance and related costs	$	631		$	1,029	$	2,710	$	2,017
Litigation costs	3,231			1,236		5,171		1,777
Other costs, net	(3		)	478		1		637
Total special charges	$	3,859		$	2,743	$	7,882	$	4,431

Special charges may include expenses incurred related to employee severance, acquisitions, excess facility costs, certain litigation costs, and asset related charges.

Employee severance and related costs include costs incurred for employee terminations due to a reduction of personnel resources driven by modifications of business strategy or business emphasis. Employee severance and related costs include severance benefits, notice pay, and outplacement services. These rebalance charges generally represent the aggregate of numerous unrelated rebalance plans which impact several employee groups, none of which is individually material to our financial position or results of operations. We determine termination benefits based on employee status, years of service, and local statutory requirements. We communicate termination benefits to the affected employees prior to the end of the quarter in which we record the charge.

Approximately 78% of the employee severance and related costs for the six months ended July 31, 2013 were paid during the period. We expect to pay the remainder during the fiscal year ending January 31, 2014. Substantially all of the employee severance and related costs for the six months ended July 31, 2012 were paid during the fiscal year ending January 31, 2013. There have been no significant modifications to the amount of these charges.

Litigation costs consist of professional service fees related to patent litigation involving us, EVE, and Synopsys regarding emulation technology. For the three and six months ended July 31, 2012, these costs have been reclassified from general and administration to special charges as further described in Note 3. "Reclassifications."

Accrued special charges are included in accrued and other liabilities and other long-term liabilities in the condensed consolidated balance sheets. The following table shows changes in accrued special charges during the six months ended July 31, 2013:



	Accrued special charges as of		Charges during the six months ended		Adjustments (payments) during the six months ended			Accrued special charges as of
	January 31, 2013		July 31, 2013		July 31, 2013			July 31, 2013		(1	)
Employee severance and related costs	$	2,028	$	2,710	$	(3,781	)	$	957
Litigation costs	624		5,171		(2,155		)	3,640
Other costs, net	2,889		1		(359		)	2,531
Total accrued special charges	$	5,541	$	7,882	$	(6,295	)	$	7,128


⁽¹⁾	Of the $7,128 total accrued special charges as of July 31, 2013, $998 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income and other long-term costs. The remaining balance of $6,130 represents the short-term portion of accrued special charges.