In a previous post I've been writing about the inability to clean the ARP cache due to cached CEF adjacencies. As it turns out, this behavior has another side effect: the router will automatically refresh all ARP entries (and CEF adjacencies) as they expire from the ARP cache. This might become a problem on high-end devices with a lot of directly connected hosts if you set the arp timeout to a low value.
Whenever a router running CEF switching has LAN interfaces (or any other multi-access interfaces), you'll find cached adjacencies for active directly attached IP neighbors in its CEF table. These adjacencies ensure the smooth traffic flow toward the LAN-attached next-hops (preventing the initial packet drop symptom once the next-hop becomes active).