RESTRUCTURING

3 Months Ended

Mar. 31, 2013

Restructuring and Related Activities [Abstract]

NOTE K – RESTRUCTURING

On May 8, 2013, our Board of Directors approved a restructuring of our vascular access manufacturing operations. This primarily includes our introducer and guidewire products produced under our Galt brand and produced for our OEM and distributor customers. We intend to retain the Galt brand and the full line of Galt labeled products, private label products, and bulk non-sterile products currently being produced at our Garland, Texas facility.

Commencing in the second quarter of 2013 and through December 2014, we will begin to transfer a significant portion of our vascular access manufacturing to independent suppliers located in Latin America. A small portion of the current production will be transferred to our specialty needle manufacturing facility located in North Attleboro, Massachusetts. By the end of 2014, we expect this transition to be completed and our manufacturing plant located in Garland, Texas to be closed.

This restructuring plan is expected to be implemented over the 20 month period through December 2014. Expected expenses and savings are as follows:

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Incremental expenses of $3.7 to $4.1 million, consisting primarily of severance related expenses and project implementation costs. The operations at our Garland, Texas plant will be transitioned out over the 20 month period. Accordingly, these incremental expenses related to the restructuring will be recorded over the 20 month restructuring period. No significant non-cash charges are expected to be recorded related to this restructuring.

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Capital expenditures of approximately $2.5 to $2.7 million. We will own this new capital equipment located in Latin America at our independent suppliers’ facilities. We will also transfer our existing equipment from our Garland, Texas facility to our independent suppliers and to our facility in North Attleboro, Massachusetts.

- 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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