Special Charges (Notes)

3 Months Ended

Apr. 30, 2015

Restructuring and Related Activities [Abstract]

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



	Three months ended April 30,
	2015		2014
Voluntary early retirement program	$	25,435	$	—
Employee severance and related costs	9,863		1,125
Litigation costs	1,575		3,958
Other costs, net	104		843
Total special charges	$	36,977	$	5,926

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 during the three months ended April 30, 2015. Approximately 110 employees in North America elected to participate. The costs presented here are for severance benefits. Approximately 82% of these costs were paid during the period. 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 16% of the employee severance and related costs for the three months ended April 30, 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 three months ended April 30, 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 three months ended April 30, 2015:



	Accrued special charges as of		Charges during the three months ended		Payments during the three months ended			Accrued special charges as of
	January 31, 2015		April 30, 2015		April 30, 2015			April 30, 2015		(1	)
Voluntary early retirement program	$	—	$	25,435	$	(20,755	)	$	4,680
Employee severance and related costs	370		9,863		(1,785		)	8,448
Litigation costs	3,406		1,575		(1,946		)	3,035
Other costs, net	741		104		(265		)	580
Total accrued special charges	$	4,517	$	36,977	$	(24,751	)	$	16,743


⁽¹⁾	Of the $16,743 total accrued special charges as of April 30, 2015, $167 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income. The remaining balance of $16,576 represents the short-term portion of accrued special charges.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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