Special Charges

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



Fiscal year ended January 31,	2017		2016		2015
Employee severance and related costs	$	6,791	$	13,496	$	3,535
Merger costs	5,553		—		—
Litigation costs	1,465		4,118		18,408
Other costs, net	1,960		2,235		1,547
Voluntary early retirement program	—		25,232		—
Total special charges	$	15,769	$	45,081	$	23,490

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

Employee severance and related costs include severance benefits and notice pay. 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 42% of the employee severance and related costs for fiscal year 2017 were paid during fiscal year 2017. We expect to pay the remainder during fiscal year 2018. Approximately 86% of the employee severance and related costs for fiscal year 2016 were paid during fiscal year 2016. Costs remaining as of January 31, 2016 were paid in fiscal year 2017. Approximately 90% of the employee severance and related costs for fiscal year 2015 were paid during fiscal year 2015. Costs remaining as of January 31, 2015 were paid in fiscal year 2016. There have been no significant modifications to the amount of these charges.

Merger costs for fiscal year 2017 primarily consisted of costs incurred related to advisory fees and legal costs associated with the potential merger with Siemens and Meadowlark Subsidiary Corporation, a wholly-owned subsidiary of Siemens.

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

We offered the voluntary early retirement program in North America during the three months ended April 30, 2015 in which 110 employees elected to participate. The costs presented here are for severance benefits. All of these costs were paid during the fiscal year ending January 31, 2016.

Accrued special charges are included in accrued and other liabilities and other long-term liabilities in the consolidated balance sheet. The following table shows changes in accrued special charges during the fiscal year ended January 31, 2017:



	Accrued special charges as of		Charges during the fiscal year ended		Payments during the fiscal year ended			Accrued special charges as of
	January 31, 2016		January 31, 2017		January 31, 2017			January 31, 2017		⁽¹⁾
Employee severance and related costs	$	1,935	$	6,791	$	(4,587	)	$	4,139
Merger costs	—		5,553		(4,168		)	1,385
Litigation costs	311		1,465		(1,381		)	395
Other costs, net	760		1,960		(2,232		)	488
Accrued special charges	$	3,006	$	15,769	$	(12,368	)	$	6,407


⁽¹⁾	The balance of $6,407 represents short-term accrued special charges.

The following table shows changes in accrued special charges during the fiscal year ended January 31, 2016:



	Accrued special charges as of		Charges during the fiscal year ended		Payments during the fiscal year ended			Accrued special charges as of
	January 31, 2015		January 31, 2016		January 31, 2016			January 31, 2016		⁽¹⁾
Employee severance and related costs	$	370	$	13,496	$	(11,931	)	$	1,935
Litigation costs	3,406		4,118		(7,213		)	311
Other costs, net	741		2,235		(2,216		)	760
Voluntary early retirement program	—		25,232		(25,232		)	—
Accrued special charges	$	4,517	$	45,081	$	(46,592	)	$	3,006


⁽¹⁾	The balance of $3,006 represents short-term accrued special charges.

The following table shows changes in accrued special charges during the fiscal year ended January 31, 2015:



	Accrued special charges as of		Charges during the fiscal year ended		Payments during the fiscal year ended			Accrued special charges as of
	January 31, 2014		January 31, 2015		January 31, 2015			January 31, 2015		⁽¹⁾
Employee severance and related costs	$	1,004	$	3,535	$	(4,169	)	$	370
Litigation costs	4,855		18,408		(19,857		)	3,406
Other costs, net	1,987		1,547		(2,793		)	741
Accrued special charges	$	7,846	$	23,490	$	(26,819	)	$	4,517


⁽¹⁾	Of the $4,517 total accrued special charges as of January 31, 2015, $252 represents the long-term portion, which primarily includes accrued lease termination fees and other facility costs, net of sublease income. The remaining balance of $4,265 represents the short-term portion of accrued special charges.