XML 24 R12.htm IDEA: XBRL DOCUMENT v3.5.0.2
Restructuring Charges
 6 Months Ended
Jun. 30, 2016
Restructuring Charges [Abstract]  
Restructuring Charges
Note 4 - Restructuring Charges
For the six and three months ended June 30, 2016 and 2015, total restructuring charges consist of the following components:
 
Six Months Ended June 30,
 
Three Months Ended June 30,
(in thousands)
2016
 
2015
 
2016
 
2015
Lease termination charges
$
31

 
(4
)
 
$
(13
)
 
(4
)
Asset impairment charges
6,866

 
—

 
5,821

 
—

Loss (gain) on sale of assets held for sale, net
13

 
(157
)
 
13

 
—

Professional fees and other charges
71

 
59

 
20

 
9

Total restructuring charges, net
$
6,981

 
(102
)
 
$
5,841

 
5

 
 
 
 
 
 
 
 

For the three months ended June 30, 2016, Synovus recorded restructuring charges of $5.8 million with $4.8 million of these charges related to Synovus' continued corporate real estate optimization activities. Synovus continues to evaluate its branch network while deploying additional digital and on-line capabilities to increase convenience for customers while lowering transaction costs, and identified during the second quarter three branch closures to be completed by year-end, which will be in addition to the four branches closed earlier this year.   Restructuring charges associated with branch closures identified during 2016 totaled $1.0 million and $1.1 million during the second and first quarter of 2016, respectively. After these closures, the branch network will consist of 250 locations by year-end, which will represent a 22.6% reduction from year-end 2010.  
During the six months ended June 30, 2015, Synovus recorded net gains of $157 thousand on the sale of certain branch locations.
The following tables present aggregate activity within the accrual for restructuring charges for the six and three months ended June 30, 2016 and 2015:
(in thousands)
Severance Charges
 
Lease Termination Charges
 
Total
Balance at December 31, 2015
$
1,930

 
4,687

 
6,617

Accruals for efficiency initiatives
—

 
31

 
31

Payments
(1,337
)
 
(343
)
 
(1,680
)
Balance at June 30, 2016
$
593

 
4,375

 
4,968

 
 
 
 
 
 
Balance at April 1, 2016
1,533

 
4,545

 
6,078

Accruals for efficiency initiatives
—

 
(13
)
 
(13
)
Payments
(940
)
 
(157
)
 
(1,097
)
Balance at June 30, 2016
$
593

 
4,375

 
4,968

 
 
 
 
 
 

(in thousands)
Severance Charges
 
Lease Termination Charges
 
Total
Balance at December 31, 2014
$
3,291

 
5,539

 
8,830

Accruals for efficiency initiatives
—

 
(4
)
 
(4
)
Payments
(1,038
)
 
(411
)
 
(1,449
)
Balance at June 30, 2015
$
2,253

 
5,124

 
7,377

 
 
 
 
 
 
Balance at April 1, 2015
2,770

 
5,318

 
8,088

Accruals for efficiency initiatives
—

 
(4
)
 
(4
)
Payments
(517
)
 
(190
)
 
(707
)
Balance at June 30, 2015
$
2,253

 
5,124

 
7,377

 
 
 
 
 
 

All professional fees and other charges were paid in the quarters that they were incurred. No other restructuring charges resulted in payment accruals.