Uncertain Tax Positions

9 Months Ended

Sep. 30, 2011

Uncertain Tax Positions [Abstract]

Uncertain Tax Positions

16. Uncertain Tax Positions

As of December 31, 2010, the Company had approximately $1.8 million of total gross unrecognized tax benefits.  If these benefits were recognized, they would favorably affect the net effective income tax rate in any future period.  As of September 30, 2011, the Company had approximately $2.6 million of total gross unrecognized tax benefits.  If recognized, these benefits would favorably affect the net effective income tax rate in any future period. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands of dollars):

(Thousands of dollars)
Balance at January 1, 2011	$	1,838
Gross increases- current year tax positions		763
Gross increases- tax positions from prior periods		109
Gross decreases- tax positions from prior periods		(108	)
Balance at September 30, 2011	$	2,602

The Company has unrecongnized tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. The unrecongnized tax benefits relate to tax credits and other various deductions. The Company estimates the change to be approximately $1.0 million.

The Company's continuing practice is to recognize interest and penalties related to income tax matters in administrative costs.  The Company had $0.2 million accrued for interest and penalties at December 31, 2010.  Negligible interest and penalties were accrued during the three and nine months ended September 30, 2011.