Note 4 — Restructuring and other impairment charges

The amounts recognized in restructuring and other impairment charges for the three and nine months ended September 30, 2012 and September 25, 2011 consisted of the following:


	Three Months Ended						Nine Months Ended
	September 30, 2012			September 25, 2011			September 30, 2012			September 25, 2011
	(Dollars in thousands)
2012 restructuring charges	$	1,107		$	—		$	1,978		$	—
2011 restructuring program		(60	)		—			(60	)		—
2007 Arrow integration program		41			(173	)		(1,834	)		537
Impairment charges		—			—			—			3,061

Restructuring and other impairment charges	$	1,088		$	(173	)	$	84		$	3,598

2012 Restructuring Charges

The Company regularly evaluates opportunities to consolidate facilities, lower costs and optimize operating efficiencies. As a result the Company has identified an opportunity to improve its supply chain strategy by consolidating its three North American warehouses into one centralized warehouse. This project will entail termination benefits related to a reduction in force, contract termination costs related to a lease, and facility closure costs. During the three months ended September 30, 2012, the Company incurred restructuring charges of $1.1 million for this project. The Company expects to complete the project over a one year period and anticipates incurring additional charges of $1.6 million related to this initiative. During the nine months ended September 30, 2012, the Company incurred restructuring charges of $2.0 million, primarily related to the warehouse consolidation as noted above and charges related to the termination of certain distributor agreements in Europe.

2011 Restructuring Program

During 2011, the Company initiated a restructuring program at three facilities to consolidate operations and reduce costs. During the third quarter of 2012, the Company reversed $0.1 million of restructuring reserves that were determined to be no longer required. The Company expects to incur additional contract termination costs of approximately $2.7 million when it has completely exited a leased facility. All of the employee termination benefits will be paid in 2012. The payment of the lease contract termination costs will continue until 2015.

2007 Arrow Integration Program

In connection with the Company’s acquisition of Arrow International, Inc. (“Arrow”), the Company implemented a program in 2007 to integrate Arrow’s businesses into the Company’s other businesses. The aspects of this program that affect Teleflex employees and facilities (such aspects being referred to as the “2007 Arrow integration program”) are charged to earnings and classified as restructuring and impairment charges. The following table provides information relating to the charges associated with the 2007 Arrow integration program that were included in restructuring and other impairment charges in the condensed consolidated statements of income for the periods presented:


	Three Months Ended					Nine Months Ended
	September 30, 2012		September 25, 2011			September 30, 2012			September 25, 2011
	(Dollars in thousands)
Termination benefits	$	—	$	—		$	—		$	11
Facility closure costs		41		40			189			114
Contract termination costs		—		(213	)		(2,023	)		412

	$	41	$	(173	)	$	(1,834	)	$	537

The following table provides information relating to changes in the accrued liability associated with the 2007 Arrow integration program during the nine months ended September 30, 2012:


	Balance at December 31, 2011		Subsequent Accruals			Payments			Translation			Balance at September 30, 2012
	(Dollars in thousands)
Termination benefits	$	320	$	—		$	(4	)	$	(2	)	$	314
Facility closure costs		—		189			(189	)		—			—
Contract termination costs		2,133		(2,023	)		—			(1	)		109
Other restructuring costs		21		—			—			—			21

	$	2,474	$	(1,834	)	$	(193	)	$	(3	)	$	444

The reduction in the accrual for contract termination costs relates to a revised estimate for the settlement of a dispute involving the termination of a European distributor agreement that was established in connection with the acquisition of Arrow in 2007.

As of September 30, 2012, the Company expects future restructuring expenses associated with the 2007 Arrow integration program, if any, to be nominal.

Impairment Charges

In the second quarter of 2011, the Company recognized impairment charges of $3.1 million related to the decline in value of its investments in affiliates that are considered to be other than temporary. In making this determination, the Company considered multiple factors, including its intent and ability to hold investments, operating losses of investees that demonstrate an inability to recover the carrying value of the investments, the investee’s liquidity and cash position and level of market acceptance of the investee’s products and services.