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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
During 2009, Synovus established a valuation allowance for substantially all of its deferred tax assets, primarily due to the realization of significant losses, significant credit deterioration and negative trending in asset quality and uncertainty regarding the amount of future taxable income that the Company could forecast. At December 31, 2012, based upon the assessment of all positive and negative evidence, management concluded that it was more likely than not that $806.4 million of the net deferred tax asset would be realized based upon future taxable income and therefore reversed $806.4 million of the valuation allowance.
The valuation allowance for deferred tax assets was $20.1 million and $18.7 million at June 30, 2013 and December 31, 2012, respectively. The valuation allowance at June 30, 2013 is related to specific state income tax credits and specific state NOL carryforwards that have various expiration dates through the tax year 2018 and 2028, respectively, and are expected to expire before they can be utilized.  Management assesses the valuation allowance for deferred tax assets at each reporting period. The determination of whether a valuation allowance for deferred tax assets is appropriate is subject to considerable judgment and requires an evaluation of all the positive and negative evidence.  
At June 30, 2013, Synovus is in a three-year cumulative loss position (defined as a pre-tax loss for the three year period ended June 30, 2013; and amounting to $249.0 million), which represents negative evidence. Management currently forecasts that it will likely no longer be in a three-year cumulative loss position at September 30, 2013.  Based on the assessment of all the positive and negative evidence at June 30, 2013, management has concluded that it is more likely than not that $789.5 million of the net deferred tax asset will be realized based upon future taxable income. 
Synovus expects to realize the $789.5 million in net deferred tax assets well in advance of the statutory carryforward period. At June 30, 2013, $209.3 million of existing deferred tax assets are not related to net operating losses or credits and therefore, have no expiration dates. Approximately $485.5 million of the remaining deferred tax assets relate to federal net operating losses which expire in years beginning in 2028 through 2032. Additionally, $67.0 million of the deferred tax assets relate to state NOLs which will expire in installments annually beginning in 2013 through 2032. Tax credit carryforwards at June 30, 2013 include federal alternative minimum tax credits totaling $20.3 million which have an unlimited carryforward period. Other federal and state tax credits at June 30, 2013 total $27.5 million and will expire in years 2013 through 2033.
The valuation allowance could fluctuate in future periods based on the assessment of the positive and negative evidence. Management's conclusion at June 30, 2013 that it is more likely than not that the net deferred tax assets of $789.5 million will be realized is based upon management's estimate of future taxable income. Management's estimate of future taxable income is based on internal projections which consider historical performance, various internal estimates and assumptions, as well as certain external data all of which management believes to be reasonable although inherently subject to significant judgment. If actual results differ significantly from the current estimates of future taxable income, the valuation allowance may need to be increased. Such an increase to the deferred tax asset valuation allowance could have a material adverse effect on Synovus' financial condition or results of operations.
Synovus is subject to income taxation in the United States and various state jurisdictions.  Synovus' federal income tax return is filed on a consolidated basis, while state income tax returns are filed on both a consolidated and separate entity basis. Currently, no years for which Synovus filed a Federal income tax return are under examination by the IRS, and there are no state tax examinations currently in progress. Synovus is no longer subject to income tax examinations by the IRS for years before 2009, and excluding certain limited exceptions, Synovus is no longer subject to income tax examinations by state and local income tax authorities for years before 2008. Although Synovus is unable to determine the ultimate outcome of future examinations, Synovus believes that the liability recorded for uncertain tax positions is adequate.
At June 30, 2013 and December 31, 2012, unrecognized income tax benefits totaled $1.2 million and $1.1 million, respectively.