diff --git a/org.eclipse.jdt.core.tests.compiler/src/org/eclipse/jdt/core/tests/compiler/regression/TryWithResourcesStatementTest.java b/org.eclipse.jdt.core.tests.compiler/src/org/eclipse/jdt/core/tests/compiler/regression/TryWithResourcesStatementTest.java
index f21a57f..0330547 100644
--- a/org.eclipse.jdt.core.tests.compiler/src/org/eclipse/jdt/core/tests/compiler/regression/TryWithResourcesStatementTest.java
+++ b/org.eclipse.jdt.core.tests.compiler/src/org/eclipse/jdt/core/tests/compiler/regression/TryWithResourcesStatementTest.java
@@ -14,8 +14,13 @@
  *******************************************************************************/
 package org.eclipse.jdt.core.tests.compiler.regression;
 
+import java.io.IOException;
+import java.net.URL;
 import java.util.Map;
 
+import org.eclipse.core.runtime.FileLocator;
+import org.eclipse.core.runtime.Path;
+import org.eclipse.core.runtime.Platform;
 import org.eclipse.jdt.core.JavaCore;
 import org.eclipse.jdt.internal.compiler.impl.CompilerOptions;
 
@@ -23,7 +28,7 @@
 public class TryWithResourcesStatementTest extends AbstractRegressionTest {
 
 static {
-//	TESTS_NAMES = new String[] { "test056throw"};
+//	TESTS_NAMES = new String[] { "test061"};
 //	TESTS_NUMBERS = new int[] { 50 };
 //	TESTS_RANGE = new int[] { 11, -1 };
 }
@@ -5354,7 +5359,373 @@
 		"X::~X\n" + 
 		"true");
 }
-
+// Bug 358903 - Filter practically unimportant resource leak warnings
+// Bug 360908 - Avoid resource leak warning when the underlying/chained resource is closed explicitly
+// a resource wrapper is not closed but the underlying resource is
+public void test061a() {
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	this.runConformTest(
+		new String[] {
+			"X.java",
+			"import java.io.File;\n" +
+			"import java.io.BufferedInputStream;\n" +
+			"import java.io.FileInputStream;\n" +
+			"import java.io.IOException;\n" +
+			"public class X {\n" +
+			"    void foo() throws IOException {\n" +
+			"        File file = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream  = new FileInputStream(file);\n" +
+			"        BufferedInputStream bis = new BufferedInputStream(fileStream);\n" +
+			"        BufferedInputStream doubleWrap = new BufferedInputStream(bis);\n" +
+			"        System.out.println(bis.available());\n" +
+			"        fileStream.close();\n" +
+			"    }\n" +
+			"    void inline() throws IOException {\n" +
+			"        File file = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream;\n" +
+			"        BufferedInputStream bis = new BufferedInputStream(fileStream = new FileInputStream(file));\n" +
+			"        System.out.println(bis.available());\n" +
+			"        fileStream.close();\n" +
+			"    }\n" +
+			"    public static void main(String[] args) throws IOException {\n" +
+			"        try {\n" +
+			"            new X().foo();\n" +
+			"        } catch (IOException ex) {" +
+			"            System.out.println(\"Got IO Exception\");\n" +
+			"        }\n" +
+			"    }\n" +
+			"}\n"
+		},
+		"Got IO Exception",
+		null,
+		true,
+		null,
+		options,
+		null);
+}
+// Bug 358903 - Filter practically unimportant resource leak warnings
+// a closeable without OS resource is not closed
+public void test061b() {
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	this.runConformTest(
+		new String[] {
+			"X.java",
+			"import java.io.StringReader;\n" +
+			"import java.io.IOException;\n" +
+			"public class X {\n" +
+			"    void foo() throws IOException {\n" +
+			"        StringReader string  = new StringReader(\"content\");\n" +
+			"        System.out.println(string.read());\n" +
+			"    }\n" +
+			"    public static void main(String[] args) throws IOException {\n" +
+			"        new X().foo();\n" +
+			"    }\n" +
+			"}\n"
+		},
+		"99", // character 'c'
+		null,
+		true,
+		null,
+		options,
+		null);
+}
+// Bug 358903 - Filter practically unimportant resource leak warnings
+// a resource wrapper is not closed but the underlying closeable is resource-free
+public void test061c() {
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	this.runConformTest(
+		new String[] {
+			"X.java",
+			"import java.io.BufferedReader;\n" +
+			"import java.io.StringReader;\n" +
+			"import java.io.IOException;\n" +
+			"public class X {\n" +
+			"    void foo() throws IOException {\n" +
+			"        StringReader input = new StringReader(\"content\");\n" +
+			"        BufferedReader br = new BufferedReader(input);\n" +
+			"        BufferedReader doubleWrap = new BufferedReader(br);\n" +
+			"        System.out.println(br.read());\n" +
+			"    }\n" +
+			"    void inline() throws IOException {\n" +
+			"        BufferedReader br = new BufferedReader(new StringReader(\"content\"));\n" +
+			"        System.out.println(br.read());\n" +
+			"    }\n" +
+			"    public static void main(String[] args) throws IOException {\n" +
+			"        new X().foo();\n" +
+			"    }\n" +
+			"}\n"
+		},
+		"99",
+		null,
+		true,
+		null,
+		options,
+		null);
+}
+// Bug 358903 - Filter practically unimportant resource leak warnings
+// a resource wrapper is not closed neither is the underlying resource
+public void test061d() {
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.WARNING);
+	this.runNegativeTest(
+		new String[] {
+			"X.java",
+			"import java.io.File;\n" +
+			"import java.io.BufferedInputStream;\n" +
+			"import java.io.FileInputStream;\n" +
+			"import java.io.IOException;\n" +
+			"public class X {\n" +
+			"    void foo() throws IOException {\n" +
+			"        File file = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream  = new FileInputStream(file);\n" +
+			"        BufferedInputStream bis = new BufferedInputStream(fileStream);\n" +
+			"        BufferedInputStream doubleWrap = new BufferedInputStream(bis);\n" +
+			"        System.out.println(bis.available());\n" +
+			"    }\n" +
+			"    void inline() throws IOException {\n" +
+			"        File file = new File(\"somefile\");\n" +
+			"        BufferedInputStream bis2 = new BufferedInputStream(new FileInputStream(file));\n" +
+			"        System.out.println(bis2.available());\n" +
+			"    }\n" +
+			"    public static void main(String[] args) throws IOException {\n" +
+			"        try {\n" +
+			"            new X().foo();\n" +
+			"        } catch (IOException ex) {" +
+			"            System.out.println(\"Got IO Exception\");\n" +
+			"        }\n" +
+			"    }\n" +
+			"}\n"
+		},
+		"----------\n" + 
+		"1. ERROR in X.java (at line 10)\n" + 
+		"	BufferedInputStream doubleWrap = new BufferedInputStream(bis);\n" + 
+		"	                    ^^^^^^^^^^\n" + 
+		"Resource leak: \'doubleWrap\' is never closed\n" + 
+		"----------\n" + 
+		"2. ERROR in X.java (at line 15)\n" + 
+		"	BufferedInputStream bis2 = new BufferedInputStream(new FileInputStream(file));\n" + 
+		"	                    ^^^^\n" + 
+		"Resource leak: \'bis2\' is never closed\n" + 
+		"----------\n",
+		null,
+		true,
+		options);
+}
+// Bug 358903 - Filter practically unimportant resource leak warnings
+// Bug 361073 - Avoid resource leak warning when the top level resource is closed explicitly
+//a resource wrapper is closed closing also the underlying resource
+public void test061e() {
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	this.runConformTest(
+		new String[] {
+			"X.java",
+			"import java.io.File;\n" +
+			"import java.io.BufferedInputStream;\n" +
+			"import java.io.FileInputStream;\n" +
+			"import java.io.IOException;\n" +
+			"public class X {\n" +
+			"    FileInputStream fis;" +
+			"    void foo() throws IOException {\n" +
+			"        File file = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream  = new FileInputStream(file);\n" +
+			"        BufferedInputStream bis = new BufferedInputStream(fileStream);\n" +
+			"        BufferedInputStream doubleWrap = new BufferedInputStream(bis);\n" +
+			"        System.out.println(bis.available());\n" +
+			"        bis.close();\n" +
+			"    }\n" +
+			"    void inline() throws IOException {\n" +
+			"        File file = new File(\"somefile\");\n" +
+			"        BufferedInputStream bis2 = new BufferedInputStream(fis = new FileInputStream(file));\n" + // field assignment
+			"        System.out.println(bis2.available());\n" +
+			"        bis2.close();\n" +
+			"        FileInputStream fileStream  = null;\n" +
+			"        BufferedInputStream bis3 = new BufferedInputStream(fileStream = new FileInputStream(file));\n" +
+			"        System.out.println(bis3.available());\n" +
+			"        bis3.close();\n" +
+			"    }\n" +
+			"    public static void main(String[] args) throws IOException {\n" +
+			"        try {\n" +
+			"            new X().foo();\n" +
+			"        } catch (IOException ex) {" +
+			"            System.out.println(\"Got IO Exception\");\n" +
+			"        }\n" +
+			"    }\n" +
+			"}\n"
+		},
+		"Got IO Exception",
+		null,
+		true,
+		null,
+		options,
+		null);
+}
+// Bug 358903 - Filter practically unimportant resource leak warnings
+// Bug 361073 - Avoid resource leak warning when the top level resource is closed explicitly
+// a resource wrapper is closed closing also the underlying resource - original test case
+public void test061f() throws IOException {
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	URL url = FileLocator.toFileURL(FileLocator.find(Platform.getBundle("org.eclipse.jdt.core.tests.compiler"), new Path("META-INF/MANIFEST.MF"), null));
+	this.runConformTest(
+		new String[] {
+			"X.java",
+			"import java.io.InputStream;\n" +
+			"import java.io.InputStreamReader;\n" +
+			"import java.io.BufferedReader;\n" +
+			"import java.io.IOException;\n" +
+			"import java.net.URL;\n" +
+			"public class X {\n" +
+			"    boolean loadURL(final URL url) throws IOException {\n" + 
+			"    InputStream stream = null;\n" + 
+			"        BufferedReader reader = null;\n" + 
+			"        try {\n" + 
+			"            stream = url.openStream();\n" + 
+			"            reader = new BufferedReader(new InputStreamReader(stream));\n" + 
+			"            System.out.println(reader.readLine());\n" +
+			"        } finally {\n" + 
+			"            try {\n" + 
+			"                if (reader != null)\n" + 
+			"                    reader.close();\n" + 
+			"            } catch (IOException x) {\n" + 
+			"            }\n" + 
+			"        }\n" + 
+			"        return false; // 'stream' may not be closed at this location\n" + 
+			"    }\n" + 
+			"    public static void main(String[] args) throws IOException {\n" +
+			"        try {\n" +
+			"            new X().loadURL(new URL(\""+url.toString()+"\"));\n" +
+			"        } catch (IOException ex) {\n" +
+			"            System.out.println(\"Got IO Exception\"+ex);\n" +
+			"        }\n" +
+			"    }\n" +
+			"}\n"
+		},
+		"Manifest-Version: 1.0",
+		null,
+		true,
+		null,
+		options,
+		null);
+}
+// Bug 358903 - Filter practically unimportant resource leak warnings
+// Bug 360908 - Avoid resource leak warning when the underlying/chained resource is closed explicitly
+// Different points in a resource chain are closed
+public void test061g() {
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	this.runNegativeTest(
+		new String[] {
+			"X.java",
+			"import java.io.File;\n" +
+			"import java.io.BufferedInputStream;\n" +
+			"import java.io.FileInputStream;\n" +
+			"import java.io.IOException;\n" +
+			"public class X {\n" +
+			"    void closeMiddle() throws IOException {\n" +
+			"        File file = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream  = new FileInputStream(file);\n" +
+			"        BufferedInputStream bis = new BufferedInputStream(fileStream);\n" +
+			"        BufferedInputStream doubleWrap = new BufferedInputStream(bis);\n" +
+			"        System.out.println(bis.available());\n" +
+			"        bis.close();\n" +
+			"    }\n" +
+			"    void closeOuter() throws IOException {\n" +
+			"        File file2 = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream2  = new FileInputStream(file2);\n" +
+			"        BufferedInputStream bis2 = new BufferedInputStream(fileStream2);\n" +
+			"        BufferedInputStream doubleWrap2 = new BufferedInputStream(bis2);\n" +
+			"        System.out.println(bis2.available());\n" +
+			"        doubleWrap2.close();\n" +
+			"    }\n" +
+			"    void neverClosed() throws IOException {\n" +
+			"        File file3 = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream3  = new FileInputStream(file3);\n" +
+			"        BufferedInputStream bis3 = new BufferedInputStream(fileStream3);\n" +
+			"        BufferedInputStream doubleWrap3 = new BufferedInputStream(bis3);\n" +
+			"        System.out.println(doubleWrap3.available());\n" +
+			"    }\n" +
+			"}\n"
+		},
+		"----------\n" + 
+		"1. ERROR in X.java (at line 26)\n" + 
+		"	BufferedInputStream doubleWrap3 = new BufferedInputStream(bis3);\n" + 
+		"	                    ^^^^^^^^^^^\n" + 
+		"Resource leak: \'doubleWrap3\' is never closed\n" + 
+		"----------\n",
+		null,
+		true,
+		options);
+}
+// Bug 358903 - Filter practically unimportant resource leak warnings
+// Bug 360908 - Avoid resource leak warning when the underlying/chained resource is closed explicitly
+// Different points in a resource chain are potentially closed
+public void test061h() {
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	this.runNegativeTest(
+		new String[] {
+			"X.java",
+			"import java.io.File;\n" +
+			"import java.io.BufferedInputStream;\n" +
+			"import java.io.FileInputStream;\n" +
+			"import java.io.IOException;\n" +
+			"public class X {\n" +
+			"    void closeMiddle(boolean b) throws IOException {\n" +
+			"        File file = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream  = new FileInputStream(file);\n" +
+			"        BufferedInputStream bis = new BufferedInputStream(fileStream);\n" +
+			"        BufferedInputStream doubleWrap = new BufferedInputStream(bis);\n" +
+			"        System.out.println(bis.available());\n" +
+			"        if (b)\n" +
+			"            bis.close();\n" +
+			"    }\n" +
+			"    void closeOuter(boolean b) throws IOException {\n" +
+			"        File file2 = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream2  = new FileInputStream(file2);\n" +
+			"        BufferedInputStream bis2 = new BufferedInputStream(fileStream2);\n" +
+			"        BufferedInputStream doubleWrap2 = new BufferedInputStream(bis2);\n" +
+			"        System.out.println(bis2.available());\n" +
+			"        if (b)\n" +
+			"            doubleWrap2.close();\n" +
+			"    }\n" +
+			"    void potAndDef(boolean b) throws IOException {\n" +
+			"        File file3 = new File(\"somefile\");\n" +
+			"        FileInputStream fileStream3  = new FileInputStream(file3);\n" +
+			"        BufferedInputStream bis3 = new BufferedInputStream(fileStream3);\n" +
+			"        BufferedInputStream doubleWrap3 = new BufferedInputStream(bis3);\n" +
+			"        System.out.println(doubleWrap3.available());\n" +
+			"        if (b) bis3.close();\n" +
+			"        fileStream3.close();\n" +
+			"    }\n" +
+			"}\n"
+		},
+		"----------\n" + 
+		"1. ERROR in X.java (at line 10)\n" + 
+		"	BufferedInputStream doubleWrap = new BufferedInputStream(bis);\n" + 
+		"	                    ^^^^^^^^^^\n" + 
+		"Potential resource leak: \'doubleWrap\' may not be closed\n" + 
+		"----------\n" + 
+		"2. ERROR in X.java (at line 19)\n" + 
+		"	BufferedInputStream doubleWrap2 = new BufferedInputStream(bis2);\n" + 
+		"	                    ^^^^^^^^^^^\n" + 
+		"Potential resource leak: \'doubleWrap2\' may not be closed\n" + 
+		"----------\n",
+		null,
+		true,
+		options);
+}
 public static Class testClass() {
 	return TryWithResourcesStatementTest.class;
 }
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/AllocationExpression.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/AllocationExpression.java
index e811ea9..0a64324 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/AllocationExpression.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/AllocationExpression.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2000, 2011 IBM Corporation and others.
+ * Copyright (c) 2000, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -45,7 +45,7 @@
 	if (this.arguments != null) {
 		for (int i = 0, count = this.arguments.length; i < count; i++) {
 			// if argument is an AutoCloseable insert info that it *may* be closed (by the target method, i.e.)
-			flowInfo = FakedTrackingVariable.markPassedToOutside(currentScope, this.arguments[i], flowInfo);
+			flowInfo = FakedTrackingVariable.markPassedToOutside(currentScope, this.arguments[i], flowInfo, this.resolvedType);
 			flowInfo =
 				this.arguments[i]
 					.analyseCode(currentScope, flowContext, flowInfo)
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/Assignment.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/Assignment.java
index 970fc24..ebf4e92 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/Assignment.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/Assignment.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2000, 2011 IBM Corporation and others.
+ * Copyright (c) 2000, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -50,14 +50,14 @@
 		.analyseAssignment(currentScope, flowContext, flowInfo, this, false)
 		.unconditionalInits();
 	if (local != null) {
-		LocalVariableBinding previousTrackerBinding = null;
+		FakedTrackingVariable previousTracker = null;
 		if (local.closeTracker != null) {
 			// Assigning to a variable already holding an AutoCloseable, has it been closed before?
-			previousTrackerBinding = local.closeTracker.binding;
+			previousTracker = local.closeTracker;
 			if (!flowInfo.isDefinitelyNull(local)) // only if previous value may be non-null
-				local.closeTracker.recordErrorLocation(this, flowInfo.nullStatus(previousTrackerBinding));
+				local.closeTracker.recordErrorLocation(this, flowInfo.nullStatus(previousTracker.binding));
 		}
-		FakedTrackingVariable.handleResourceAssignment(flowInfo, this, this.expression, local, previousTrackerBinding);
+		FakedTrackingVariable.handleResourceAssignment(flowInfo, this, this.expression, local, previousTracker);
 	}
 	int nullStatus = this.expression.nullStatus(flowInfo);
 	if (local != null && (local.type.tagBits & TagBits.IsBaseType) == 0) {
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/FakedTrackingVariable.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/FakedTrackingVariable.java
index ee13047..60053e3 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/FakedTrackingVariable.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/FakedTrackingVariable.java
@@ -48,9 +48,11 @@
 	private static final int CLOSED_IN_NESTED_METHOD = 4;
 	// a location independent issue has been reported already against this resource:
 	private static final int REPORTED = 8;
+	// a resource is wrapped in another resource:
+	private static final int WRAPPED = 16;
 	
 	/**
-	 * Bitset of {@link #CLOSE_SEEN}, {@link #PASSED_TO_OUTSIDE}, {@link #CLOSED_IN_NESTED_METHOD} and {@link #REPORTED}.
+	 * Bitset of {@link #CLOSE_SEEN}, {@link #PASSED_TO_OUTSIDE}, {@link #CLOSED_IN_NESTED_METHOD}, {@link #REPORTED} and {@link #WRAPPED}.
 	 */
 	private int globalClosingState = 0;
 
@@ -58,10 +60,12 @@
 	
 	public LocalVariableBinding originalBinding; // the real local being tracked
 	
-	HashMap recordedLocations; // initially null, ASTNode -> Integer 
+	HashMap recordedLocations; // initially null, ASTNode -> Integer
+
+	public FakedTrackingVariable innerTracker; // chained tracking variable of a chained (wrapped) resource
 
 
-	public FakedTrackingVariable(LocalVariableBinding original, Statement location) {
+	public FakedTrackingVariable(LocalVariableBinding original, ASTNode location) {
 		super(original.name, location.sourceStart, location.sourceEnd);
 		this.type = new SingleTypeReference(
 				TypeConstants.OBJECT,
@@ -131,8 +135,8 @@
 	 * Check if the rhs of an assignment or local declaration is an (Auto)Closeable.
 	 * If so create or re-use a tracking variable, and wire and initialize everything. 
 	 */
-	public static void handleResourceAssignment(FlowInfo flowInfo, Statement location, Expression rhs, LocalVariableBinding local,
-				LocalVariableBinding previousTrackerBinding) 
+	public static void handleResourceAssignment(FlowInfo flowInfo, ASTNode location, Expression rhs, LocalVariableBinding local,
+				FakedTrackingVariable previousTracker) 
 	{
 		if (isAutoCloseable(rhs.resolvedType)) {
 			// new value is AutoCloseable, start tracking, possibly re-using existing tracker var:
@@ -141,11 +145,15 @@
 			if (rhsTrackVar != null) {								// 1. share tracking variable with RHS?
 				local.closeTracker = rhsTrackVar;
 				// keep null-status unchanged across this assignment
-			} else if (previousTrackerBinding != null) {			// 2. re-use tracking variable from the LHS?
+			} else if (previousTracker != null) {					// 2. re-use tracking variable from the LHS?
 				// re-assigning from a fresh, mark as not-closed again:
-				flowInfo.markAsDefinitelyNull(previousTrackerBinding);
+				flowInfo.markAsDefinitelyNull(previousTracker.binding);
+				local.closeTracker = analyseCloseableExpression(flowInfo, local, location, rhs, previousTracker);
 			} else {												// 3. no re-use, create a fresh tracking variable:
-				local.closeTracker = new FakedTrackingVariable(local, location);
+				rhsTrackVar = analyseCloseableExpression(flowInfo, local, location, rhs, null);
+				if (rhsTrackVar == null)
+					return;
+				local.closeTracker = rhsTrackVar;
 				// a fresh resource, mark as not-closed:
 				flowInfo.markAsDefinitelyNull(local.closeTracker.binding);
 // TODO(stephan): this might be useful, but I could not find a test case for it: 
@@ -153,6 +161,115 @@
 //					flowContext.initsOnFinally.markAsDefinitelyNonNull(trackerBinding);
 			}
 		}
+	}
+	/**
+	 * analyze structure of a closeable expression, matching (chained) resources against our white lists.
+	 * See  Bug 358903 - Filter practically unimportant resource leak warnings
+	 * @param flowInfo used when recursing back into {@link #handleResourceAssignment}
+	 * @param local local variable to which the closeable is being assigned
+	 * @param location where to flag errors/warnings against
+	 * @param expression expression to be analyzed
+	 * @param previousTracker when analyzing a re-assignment we may already have a tracking variable for local,
+	 *  		which we should then re-use
+	 * @return a tracking variable associated with local or null if no need to track
+	 */
+	private static FakedTrackingVariable analyseCloseableExpression(FlowInfo flowInfo, 
+				LocalVariableBinding local, ASTNode location, Expression expression, FakedTrackingVariable previousTracker) 
+	{
+		if (expression.resolvedType instanceof ReferenceBinding) {
+			ReferenceBinding resourceType = (ReferenceBinding) expression.resolvedType;
+			
+			if (resourceType.hasTypeBit(TypeIds.BitResourceFreeCloseable)) {
+				// (a) resource-free closeable: -> null
+				return null;
+			}					
+			
+			if (resourceType.hasTypeBit(TypeIds.BitWrapperCloseable)) {
+				// (b) wrapper
+				Expression innerExpression = expression; 
+				if (innerExpression instanceof Assignment)
+					innerExpression = ((Assignment)innerExpression).expression;
+				if (innerExpression instanceof AllocationExpression) {
+					Expression[] args = ((AllocationExpression) innerExpression).arguments;
+					if (args != null && args.length == 1) {
+						// (b.1) wrapper allocation with argument
+						return analyseCloseableAllocationArgument(flowInfo, local, location, args[0], previousTracker);
+					}
+				}
+				LocalVariableBinding innerLocal = innerExpression.localVariableBinding();
+				if (innerLocal != null && innerLocal.closeTracker != null) {
+					FakedTrackingVariable outerTracker = previousTracker != null ? previousTracker : new FakedTrackingVariable(local, location); 
+					outerTracker.innerTracker = innerLocal.closeTracker;
+					innerLocal.closeTracker.globalClosingState |= WRAPPED;
+					return outerTracker;
+				}
+				// (b.2) wrapper with irrelevant inner: -> null
+				return null;
+			}
+		}
+		if (local.closeTracker != null)
+			// (c): inner has already been analysed: -> re-use track var
+			return local.closeTracker;
+		// (d): normal resource: -> normal tracking var
+		if (previousTracker != null)
+			return previousTracker; // (d.1): re-use existing tracking var
+		return new FakedTrackingVariable(local, location);
+	}
+
+	// an outer allocation expression has an argument, recursively analyze whether the arg is closeable 
+	// return (1) a possible nested tracker for the outer expression or (2) null signaling no relevant resource contained  
+	static FakedTrackingVariable analyseCloseableAllocationArgument(FlowInfo flowInfo, LocalVariableBinding outerLocal, ASTNode outerLocation, 
+			Expression arg, FakedTrackingVariable previousTracker)
+	{
+		if (arg instanceof Assignment) {
+			Assignment assign = (Assignment)arg;
+			LocalVariableBinding innerLocal = assign.localVariableBinding();
+			if (innerLocal != null) {
+				// recurse from the top for nested assignment:
+				handleResourceAssignment(flowInfo, assign, assign.expression, innerLocal, innerLocal.closeTracker);
+				return innerLocal.closeTracker; // FIXME do we need a nested tracker here?
+			} else {
+				arg = assign.expression; // unwrap assignment and fall through
+			}
+		}
+		if (arg instanceof SingleNameReference) {
+			SingleNameReference ref = (SingleNameReference) arg;
+			if (ref.binding instanceof LocalVariableBinding) {
+				// allocation arg is a reference to an existing closeable?
+				return getTrackingVarForNested(flowInfo, outerLocal, outerLocation, (LocalVariableBinding)ref.binding, ref, ref, previousTracker);
+			}
+		} else if (arg instanceof AllocationExpression && arg.resolvedType instanceof ReferenceBinding) {
+			// nested allocation
+			ReferenceBinding innerType = (ReferenceBinding)arg.resolvedType;
+			if (innerType.hasTypeBit(TypeIds.BitResourceFreeCloseable)) {
+				return null; // leaf of wrapper-chain is irrelevant
+			} else if (innerType.hasTypeBit(TypeIds.BitWrapperCloseable)) {
+				// nested wrapper, nested tracking variables may skip this level as it is not bound to a local variable
+				Expression[] args = ((AllocationExpression) arg).arguments;
+				if (args != null && args.length > 0)
+					return analyseCloseableAllocationArgument(flowInfo, outerLocal, arg, args[0], previousTracker);
+				return null; // wrapper with no arg? shouldn't occur actually
+			} else {
+				// (c) wrapper alloc with direct nested alloc of regular: -> normal track var (no local represents inner)
+				return previousTracker != null ? previousTracker : new FakedTrackingVariable(outerLocal, outerLocation);
+			}
+		}
+		return null;
+	}
+	
+	// an outer allocation expression has an argument, create/link outer and inner tracking variable and return the outer
+	// return null if inner is not tracked
+	private static FakedTrackingVariable getTrackingVarForNested(FlowInfo flowInfo, LocalVariableBinding outerLocal, ASTNode outerLocation, 
+			LocalVariableBinding innerLocal, ASTNode innerLocation, Expression innerExpression, FakedTrackingVariable previousTracker)
+	{
+		FakedTrackingVariable innerTracker = analyseCloseableExpression(flowInfo, innerLocal, innerLocation, innerExpression, null);
+		if (innerTracker != null) {
+			FakedTrackingVariable outerTracker = previousTracker != null ? previousTracker : new FakedTrackingVariable(outerLocal, outerLocation); 
+			outerTracker.innerTracker = innerTracker;
+			innerTracker.globalClosingState |= WRAPPED;
+			return outerTracker;
+		}
+		return null;
 	}
 
 	/** Answer wither the given type binding is a subtype of java.lang.AutoCloseable. */
@@ -180,7 +297,11 @@
 	 * (as argument to a method/ctor call or as a return value from the current method), 
 	 * and thus should be considered as potentially closed.
 	 */
-	public static FlowInfo markPassedToOutside(BlockScope scope, Expression expression, FlowInfo flowInfo) {
+	public static FlowInfo markPassedToOutside(BlockScope scope, Expression expression, FlowInfo flowInfo, TypeBinding allocatedType) {	
+		if ((allocatedType instanceof ReferenceBinding) 
+				&& ((ReferenceBinding) allocatedType).hasTypeBit(TypeIds.BitWrapperCloseable))
+			return flowInfo; // wrapped closeables are analyzed separately:
+		
 		FakedTrackingVariable trackVar = getCloseTrackingVariable(expression);
 		if (trackVar != null) {
 			trackVar.globalClosingState |= PASSED_TO_OUTSIDE;
@@ -201,9 +322,14 @@
 	}
 
 	public boolean reportRecordedErrors(Scope scope) {
-		if (this.globalClosingState == 0) {
-			reportError(scope.problemReporter(), null, FlowInfo.NULL);
-			return true;
+		FakedTrackingVariable current = this;
+		while (current.globalClosingState == 0) {
+			current = current.innerTracker;
+			if (current == null) {
+				// no relevant state found -> report:
+				reportError(scope.problemReporter(), null, FlowInfo.NULL);
+				return true;
+			}
 		}
 		boolean hasReported = false;
 		if (this.recordedLocations != null) {
@@ -218,6 +344,8 @@
 	}
 	
 	public void reportError(ProblemReporter problemReporter, ASTNode location, int nullStatus) {
+		if ((this.globalClosingState & WRAPPED) != 0)
+			return;
 		if (nullStatus == FlowInfo.NULL) {
 			if ((this.globalClosingState & CLOSED_IN_NESTED_METHOD) != 0)
 				problemReporter.potentiallyUnclosedCloseable(this, location);
@@ -225,7 +353,7 @@
 				problemReporter.unclosedCloseable(this, location);
 		} else if (nullStatus == FlowInfo.POTENTIALLY_NULL) {
 			problemReporter.potentiallyUnclosedCloseable(this, location);
-		}		
+		}
 	}
 
 	public void reportExplicitClosing(ProblemReporter problemReporter) {
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/MessageSend.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/MessageSend.java
index 46d4540..eae974b 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/MessageSend.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/MessageSend.java
@@ -97,7 +97,7 @@
 				this.arguments[i].checkNPE(currentScope, flowContext, flowInfo);
 			}
 			// if argument is an AutoCloseable insert info that it *may* be closed (by the target method, i.e.)
-			flowInfo = FakedTrackingVariable.markPassedToOutside(currentScope, this.arguments[i], flowInfo);
+			flowInfo = FakedTrackingVariable.markPassedToOutside(currentScope, this.arguments[i], flowInfo, null);
 			flowInfo = this.arguments[i].analyseCode(currentScope, flowContext, flowInfo).unconditionalInits();
 		}
 		analyseArguments(currentScope, flowContext, flowInfo, this.binding, this.arguments);
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/QualifiedAllocationExpression.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/QualifiedAllocationExpression.java
index 3a2a0ed..7169032 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/QualifiedAllocationExpression.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/QualifiedAllocationExpression.java
@@ -81,7 +81,7 @@
 		if (this.arguments != null) {
 			for (int i = 0, count = this.arguments.length; i < count; i++) {
 				// if argument is an AutoCloseable insert info that it *may* be closed (by the target method, i.e.)
-				flowInfo = FakedTrackingVariable.markPassedToOutside(currentScope, this.arguments[i], flowInfo);
+				flowInfo = FakedTrackingVariable.markPassedToOutside(currentScope, this.arguments[i], flowInfo, null);
 				flowInfo = this.arguments[i].analyseCode(currentScope, flowContext, flowInfo);
 				if ((this.arguments[i].implicitConversion & TypeIds.UNBOXING) != 0) {
 					this.arguments[i].checkNPE(currentScope, flowContext, flowInfo);
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/BinaryTypeBinding.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/BinaryTypeBinding.java
index 9294726..d082d29 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/BinaryTypeBinding.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/BinaryTypeBinding.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2000, 2011 IBM Corporation and others.
+ * Copyright (c) 2000, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -1275,7 +1275,9 @@
 			this.environment.mayTolerateMissingType = wasToleratingMissingTypeProcessingAnnotations;
 		}
 	}
-	this.typeBits |= this.superclass.typeBits;
+	this.typeBits |= (this.superclass.typeBits & TypeIds.InheritableBits);
+	if (this.hasTypeBit(TypeIds.BitAutoCloseable|TypeIds.BitCloseable))
+		this.typeBits |= applyCloseableWhitelists();
 	return this.superclass;
 }
 // NOTE: superInterfaces of binary types are resolved when needed
@@ -1298,7 +1300,7 @@
 				this.environment.mayTolerateMissingType = wasToleratingMissingTypeProcessingAnnotations;
 			}	
 		}
-		this.typeBits |= this.superInterfaces[i].typeBits;
+		this.typeBits |= (this.superInterfaces[i].typeBits & TypeIds.InheritableBits);
 	}
 	this.tagBits &= ~TagBits.HasUnresolvedSuperinterfaces;
 	return this.superInterfaces;
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/BlockScope.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/BlockScope.java
index c93c9d9..0187139 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/BlockScope.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/BlockScope.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2000, 2011 IBM Corporation and others.
+ * Copyright (c) 2000, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -1003,10 +1003,25 @@
 		FakedTrackingVariable trackingVar = (FakedTrackingVariable) this.trackingVariables.get(i);
 		if (location != null && trackingVar.originalBinding != null && flowInfo.isDefinitelyNull(trackingVar.originalBinding))
 			continue; // reporting against a specific location, resource is null at this flow, don't complain
-		int status = getNullStatusAggressively(trackingVar.binding, flowInfo);
-		// try to improve info if a close() inside finally was observed:
-		if (locationScope != null) // only check at method exit points
-			status = locationScope.mergeCloseStatus(status, trackingVar.binding, this);
+		
+		// compute the most specific null status for this resource,
+		// consider wrappers (per white list) encapsulating an inner resource.
+		int status = FlowInfo.UNKNOWN;
+		FakedTrackingVariable currentTracker = trackingVar;
+		while (currentTracker != null) {
+			LocalVariableBinding currentVar = currentTracker.binding;
+			int currentStatus = getNullStatusAggressively(currentVar, flowInfo);
+			if (locationScope != null) // only check at method exit points
+				currentStatus = locationScope.mergeCloseStatus(currentStatus, currentVar, this);
+			if (currentStatus == FlowInfo.NON_NULL) {
+				status = currentStatus;
+				break; // closed -> stop searching
+			} else if (status == FlowInfo.NULL || status == FlowInfo.UNKNOWN) {
+				status = currentStatus; // improved although not yet safe -> keep searching for better
+			}
+			currentTracker = currentTracker.innerTracker;
+		}
+		
 		if (status == FlowInfo.NULL) {
 			// definitely unclosed: highest priority
 			reportResourceLeak(trackingVar, location, status);
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/ClassScope.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/ClassScope.java
index 3eb3cca..2b32dc2 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/ClassScope.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/ClassScope.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2000, 2011 IBM Corporation and others.
+ * Copyright (c) 2000, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -909,7 +909,10 @@
 			} else {
 				// only want to reach here when no errors are reported
 				sourceType.superclass = superclass;
-				sourceType.typeBits |= superclass.typeBits;
+				sourceType.typeBits |= (superclass.typeBits & TypeIds.InheritableBits);
+				// further analysis against white lists for the unlikely case we are compiling java.io.*:
+				if (sourceType.hasTypeBit(TypeIds.BitAutoCloseable|TypeIds.BitCloseable))
+					sourceType.typeBits |= sourceType.applyCloseableWhitelists();
 				return true;
 			}
 		}
@@ -1025,7 +1028,7 @@
 				noProblems &= superInterfaceRef.resolvedType.isValidBinding();
 			}
 			// only want to reach here when no errors are reported
-			sourceType.typeBits |= superInterface.typeBits;
+			sourceType.typeBits |= (superInterface.typeBits & TypeIds.InheritableBits);
 			interfaceBindings[count++] = superInterface;
 		}
 		// hold onto all correctly resolved superinterfaces
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/ReferenceBinding.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/ReferenceBinding.java
index 75de854..057fb4f 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/ReferenceBinding.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/ReferenceBinding.java
@@ -1469,4 +1469,31 @@
 public FieldBinding[] unResolvedFields() {
 	return Binding.NO_FIELDS;
 }
+
+/*
+ * If a type - known to be a Closeable - is mentioned in one of our white lists
+ * answer the typeBit for the white list (BitWrapperCloseable or BitResourceFreeCloseable).
+ */
+protected int applyCloseableWhitelists() {
+	switch (this.compoundName.length) {
+		case 3:
+			if (CharOperation.equals(TypeConstants.JAVA, this.compoundName[0])) {
+				if (CharOperation.equals(TypeConstants.IO, this.compoundName[1])) {
+					char[] simpleName = this.compoundName[2];
+					int l = TypeConstants.JAVA_IO_WRAPPER_CLOSEABLES.length;
+					for (int i = 0; i < l; i++) {
+						if (CharOperation.equals(simpleName, TypeConstants.JAVA_IO_WRAPPER_CLOSEABLES[i]))
+							return TypeIds.BitWrapperCloseable;
+					}
+					l = TypeConstants.JAVA_IO_RESOURCE_FREE_CLOSEABLES.length;
+					for (int i = 0; i < l; i++) {
+						if (CharOperation.equals(simpleName, TypeConstants.JAVA_IO_RESOURCE_FREE_CLOSEABLES[i]))
+							return TypeIds.BitResourceFreeCloseable;
+					}
+				}
+			}
+			break;
+	}
+	return 0;
+}
 }
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeConstants.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeConstants.java
index 0bbef47..ef77f4c 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeConstants.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeConstants.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2000, 2011 IBM Corporation and others.
+ * Copyright (c) 2000, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -154,6 +154,23 @@
 	};
 	char[][] JAVA_LANG_AUTOCLOSEABLE =  {JAVA, LANG, "AutoCloseable".toCharArray()}; //$NON-NLS-1$
 	char[] CLOSE = "close".toCharArray(); //$NON-NLS-1$
+	// white lists of closeables:
+	char[][] JAVA_IO_WRAPPER_CLOSEABLES = new char[][] {
+		"BufferedInputStream".toCharArray(), //$NON-NLS-1$
+		"BufferedOutputStream".toCharArray(), //$NON-NLS-1$
+		"BufferedReader".toCharArray(), //$NON-NLS-1$
+		"BufferedWriter".toCharArray(), //$NON-NLS-1$
+		"InputStreamReader".toCharArray(), //$NON-NLS-1$
+		"PrintWriter".toCharArray(),  //$NON-NLS-1$
+	};
+	char[][] JAVA_IO_RESOURCE_FREE_CLOSEABLES = new char[][] {			
+		"StringReader".toCharArray(), //$NON-NLS-1$
+		"StringWriter".toCharArray(), //$NON-NLS-1$
+		"ByteArrayInputStream".toCharArray(), //$NON-NLS-1$
+		"ByteArrayOutputStream".toCharArray(), //$NON-NLS-1$
+		"CharArrayReader".toCharArray(), //$NON-NLS-1$
+		"CharArrayWriter".toCharArray(), //$NON-NLS-1$
+	};
 
 	// Constraints for generic type argument inference
 	int CONSTRAINT_EQUAL = 0;		// Actual = Formal
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeIds.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeIds.java
index 7fff434..d6ec945 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeIds.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeIds.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2000, 2011 IBM Corporation and others.
+ * Copyright (c) 2000, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -207,4 +207,19 @@
 	 * @see ReferenceBinding#hasTypeBit(int)
 	 */
 	final int BitCloseable = 2;
+	/**
+	 * Bit for members of a white list:
+	 * Subtypes of Closeable that wrap another resource without directly holding any OS resources. 
+	 */
+	final int BitWrapperCloseable = 4;
+	/**
+	 * Bit for members of a white list:
+	 * Subtypes of Closeable that do not hold an OS resource that needs to be released.
+	 */
+	final int BitResourceFreeCloseable = 8;
+	
+	/**
+	 * Set of type bits that should be inherited by any sub types.
+	 */
+	final int InheritableBits = BitAutoCloseable | BitCloseable;
 }
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeVariableBinding.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeVariableBinding.java
index 995f30e..bd698f3 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeVariableBinding.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/TypeVariableBinding.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2000, 2011 IBM Corporation and others.
+ * Copyright (c) 2000, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -316,11 +316,11 @@
 			// initialize from bounds
 			this.typeBits = 0;
 			if (this.superclass != null && this.superclass.hasTypeBit(~TypeIds.BitUninitialized))
-				this.typeBits |= this.superclass.typeBits;
+				this.typeBits |= (this.superclass.typeBits & TypeIds.InheritableBits);
 			if (this.superInterfaces != null)
 				for (int i = 0, l = this.superInterfaces.length; i < l; i++)
 					if (this.superInterfaces[i].hasTypeBit(~TypeIds.BitUninitialized))
-						this.typeBits |= this.superInterfaces[i].typeBits;
+						this.typeBits |= (this.superInterfaces[i].typeBits & TypeIds.InheritableBits);
 		}
 		return (this.typeBits & bit) != 0;
 	}
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/WildcardBinding.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/WildcardBinding.java
index 01f369e..b887196 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/WildcardBinding.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/lookup/WildcardBinding.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2005, 2011 IBM Corporation and others.
+ * Copyright (c) 2005, 2012 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -429,11 +429,11 @@
 			// initialize from upper bounds
 			this.typeBits = 0;
 			if (this.superclass != null && this.superclass.hasTypeBit(~TypeIds.BitUninitialized))
-				this.typeBits |= this.superclass.typeBits;
+				this.typeBits |= (this.superclass.typeBits & TypeIds.InheritableBits);
 			if (this.superInterfaces != null)
 				for (int i = 0, l = this.superInterfaces.length; i < l; i++)
 					if (this.superInterfaces[i].hasTypeBit(~TypeIds.BitUninitialized))
-						this.typeBits |= this.superInterfaces[i].typeBits;
+						this.typeBits |= (this.superInterfaces[i].typeBits & TypeIds.InheritableBits);
 		}
 		return (this.typeBits & bit) != 0;
 	}