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Restructuring, Repositioning, And Efficiency | 3 Months Ended
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Mar. 31, 2014
Restructuring And Related Activities [Abstract] |
Restructuring, Repositioning, And Efficiency | Note 18 – Restructuring, Repositioning, and Efficiency Beginning in 2007, FHN conducted a company-wide review of business practices with the goal of improving its overall profitability and productivity. Such reviews continue throughout the organization. Since 2007, in order to redeploy capital to higher-return businesses, FHN exited or sold non-strategic businesses, eliminated layers of management, and consolidated functional areas. Generally, restructuring, repositioning, and efficiency charges related to exited businesses are included in the non-strategic segment while charges related to corporate-driven actions are included in the corporate segment. Net charges recognized by FHN during the three months ended March 31, 2014 related to restructuring, repositioning, and efficiency activities were $5.7 million. Of this amount, $5.5 million represent e xit costs that were accounted for in accordance with the Exit of Disposal Cost Obligations Topic of the FASB Accounting Standards Codification (“ASC 420”). Significant expenses recognized during the three months ended March 31, 2014 resulted from the following action s: Lease abandonment expenses of $4.6 million primarily related to efficiency initiatives within corporate and bank services functions which are classified as Occupancy within noninterest expense. During the three months ended March 31, 2013, FHN recognized a net c ost of $.5 million related to restructuring, repositioning, and efficiency activities. Include d in this amount is $1.3 million represent ing exit costs that were accounted for in accordance with ASC 420. There were no individually significant expenses recog n ized during first quarter 2013. Settlement of the obligations arising from current initiatives will be funded from operating cash flows. The effect of suspending depreciation on assets held-for-sale was immaterial to FHN's results of operations for all periods. Due to the broad nature of the actions being taken, substantially all co mponents of expense have benefi ted from past efficiency initiatives and are expected to benefit from the current efficiency initiatives.
Activity in the restructuring and repositioning liability for the three months ended March 31, 2014 and 2013, is presented in the following table, along with other restructuring and repositioning expenses recognized.
|  | Three Months Ended |
|  | March 31 |
|  | 2014 |  | 2013 |
(Dollars in thousands) | Expense |  | Liability |  | Expense |  | Liability |
Beginning balance |  |  |  | $ | 3,126 |  |  |  |  | $ | 19,775 |
Severance and other employee related costs | $ | 914 |  |  | 914 |  | $ | 819 |  |  | 819 |
Facility consolidation costs |  | 4,597 |  |  | 4,597 |  |  | 438 |  |  | 438 |
Total accrued |  | 5,511 |  |  | 8,637 |  |  | 1,257 |  |  | 21,032 |
Payments related to: |  |  |  |  |  |  |  |  |  |  |  |
| Severance and other employee related costs |  |  |  |  | 571 |  |  |  |  |  | 6,038 |
| Facility consolidation costs |  |  |  |  | 229 |  |  |  |  |  | 417 |
Accrual reversals |  |  |  |  | 30 |  |  |  |  |  | 96 |
| Restructuring and repositioning reserve balance |  |  |  | $ | 7,807 |  |  |  |  | $ | 14,481 |
Other restructuring and repositioning expense: |  |  |  |  |  |  |  |  |  |  |  |
| (Gains)/losses on divestitures |  | - |  |  |  |  |  | (639) |  |  |  |
| Impairment of premises and equipment |  | 222 |  |  |  |  |  | - |  |  |  |
| Other |  | - |  |  |  |  |  | (96) |  |  |  |
| Total other restructuring and repositioning expense |  | 222 |  |  |  |  |  | (735) |  |  |  |
Total restructuring and repositioning charges | $ | 5,733 |  |  |  |  | $ | 522 |  |  |  |
FHN began initiatives related to restructuring in second quarter 2007. Consequently, the following table presents cumulative amounts incurred to date through March 31, 2014, for costs associated with FHN’s restructuring, repositioning, and efficiency initiatives:
(Dollars in thousands) | Total Expense |
Severance and other employee related costs |  | $ | 105,298 |
Facility consolidation costs |  |  | 45,424 |
Other exit costs, professional fees, and other |  |  | 19,165 |
Other restructuring and repositioning expense: |  |  |  |
| Loan portfolio divestiture |  |  | 7,672 |
| Mortgage banking expense on servicing sales |  |  | 26,002 |
| (Gains)/losses on divestitures |  |  | (718) |
| Impairment of premises and equipment |  |  | 23,004 |
| Impairment of intangible assets |  |  | 48,231 |
| Impairment of other assets |  |  | 40,504 |
| Other |  |  | 7,478 |
Total restructuring and repositioning charges incurred to date as of March 31, 2014 |  | $ | 322,060 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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