Restructuring Charges

6 Months Ended

Jun. 30, 2014

Note 5 - Restructuring Charges

For the six and three months ended June 30, 2014 and 2013 total restructuring charges are as follows:



	Six Months Ended June 30,				Three Months Ended June 30,
(in thousands)	2014		2013		2014	2013
Severance charges	$	8,047	6,610		—	1,737
Asset impairment charges	7,358		—		7,358	—
Professional fees and other charges	888		(3	)	358	21
Total restructuring charges	$	16,293	6,607		7,716	1,758

In January 2014, Synovus announced the planned implementation during 2014 of new expense savings initiatives which are expected to result in annualized cost savings of $30 million. The initiatives include planned workforce reductions as well as planned reductions in occupancy expenses. Synovus began to implement these initiatives during the first quarter of 2014, undertaking the first targeted staff reductions. As a result of these actions, Synovus recorded aggregate restructuring charges of $8.6 million during the three months ended March 31, 2014, consisting primarily of $8.0 million in severance charges related to employees identified for involuntary termination. These termination benefits are provided under an ongoing benefit arrangement as defined in ASC 712, Compensation-Nonretirement Postemployment Benefits; accordingly, the charges were recorded pursuant to the liability recognition criteria of ASC 712. Additionally, during the second quarter of 2014, upon management's decision to close 13 branches across the five-state footprint during the fourth quarter of 2014, Synovus recorded asset impairment charges of $7.4 million. Restructuring charges for the fourth quarter of 2014 are expected to include approximately $6 million in charges related to lease exit costs associated with the planned branch closings (based upon the expectation that these leased facilities will cease to be used during the fourth quarter of 2014).

Severance charges recorded during the six months ended June 30, 2013 relate to involuntary terminations in connection with previously announced efficiency initiatives. These termination benefits were provided under a one-time benefit arrangement as defined in ASC 420, Exit or Disposal Costs or Obligations; accordingly, the charges were recorded pursuant to the liability recognition criteria of ASC 420.

At June 30, 2014, the liability for restructuring activities was $6.3 million, and consisted primarily of involuntary termination benefits (accounted for in accordance with ASC 712) which are expected to be paid in lump sums during the remainder of 2014.

- 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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