Special Charges (Notes)

6 Months Ended

Jul. 31, 2015

Restructuring and Related Activities [Abstract]

The following is a summary of the components of special charges:



	Three months ended July 31,				Six months ended July 31,
	2015		2014		2015		2014
Voluntary early retirement program	$	—	$	—	$	25,435	$	—
Employee severance and related costs	840		575		10,703		1,700
Litigation costs	944		4,231		2,519		8,189
Other costs, net	402		302		506		1,145
Total special charges	$	2,186	$	5,108	$	39,163	$	11,034

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

We offered the voluntary early retirement program in North America during the three months ended April 30, 2015 and 110 employees elected to participate. The costs presented here are for severance benefits. Approximately 93% of these costs were paid during the six months ended July 31, 2015. We expect to pay the remainder during the fiscal year ending January 31, 2016.

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 benefit amounts based on employee status, years of service, and local statutory requirements. We record the charge for estimated severance benefits in the quarter that the rebalance plan is approved.

Approximately 61% of the employee severance and related costs for the six months ended July 31, 2015 were paid during the period. We expect to pay the remainder during the fiscal year ending January 31, 2016. Substantially all of the employee severance and related costs for the six months ended July 31, 2014 were paid during the fiscal year ending January 31, 2015. There were no significant modifications to the amount of those charges.

Litigation costs consist of professional service fees for services rendered, related to patent litigation involving us, EVE, and Synopsys regarding emulation technology.

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, 2015:



	Accrued special charges as of		Charges during the six months ended		Payments during the six months ended			Accrued special charges as of
	January 31, 2015		July 31, 2015		July 31, 2015			July 31, 2015		(1	)
Voluntary early retirement program	$	—	$	25,435	$	(23,730	)	$	1,705
Employee severance and related costs	370		10,703		(6,827		)	4,246
Litigation costs	3,406		2,519		(5,087		)	838
Other costs, net	741		506		(371		)	876
Total accrued special charges	$	4,517	$	39,163	$	(36,015	)	$	7,665


⁽¹⁾	Of the $7,665 total accrued special charges as of July 31, 2015, $588 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income. The remaining balance of $7,077 represents the short-term portion of accrued special charges.