Nucor 2011 Annual Report Download - page 62

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61
A reconciliation of the beginning and ending amounts of unrecognized tax benefits recorded in deferred credits and other liabilities is as follows:
(in thousands)
Year Ended December 31, 2 011 2010 2009
Balance at beginning of year $92,752 $108,587 $ 87,734
Additions based on tax positions related to current year 6,733 1,983 2,422
Reductions based on tax positions related to current year (3,160) (1,358) —
Additions based on tax positions related to prior years 937 5,705 858
Reductions based on tax positions related to prior years (2,169) (4,046) (15,540)
Additions due to settlements with taxing authorities — 2,363 36,317
Reductions due to settlements with taxing authorities (958) (3,246) (1,288)
Reductions due to statute of limitations lapse (13,238) (17,236) (1,916)
Balance at end of year $80,897 $ 92,752 $108,587
We estimate that in the next twelve months, our gross uncertain tax positions, exclusive of interest, could decrease by as much as
$15.5 million, as a result of the expiration of the statute of limitations.
During 2011, Nucor recognized $3.6 million of expense in interest and penalties ($5.3 million of benefit in 2010 and $9.9 million
of expense in 2009). As of December 31, 2011, Nucor had approximately $34.3 million of accrued interest and penalties related to
uncertain tax positions ($30.6 at December 31, 2010).
Nucor has concluded U.S. federal income tax matters for years through 2006. The 2008 to 2011 tax years are open to examination
by the Internal Revenue Service. The years 2004 and 2007 are open to the extent net operating losses were carried back. In 2011 the
Canada Revenue Agency completed an audit examination for the periods 2006 to 2008 for Harris Steel Group Inc. and subsidiaries
with immaterial adjustments to the income tax returns. The tax years 2008 through 2011 remain open to examination by other major
taxing jurisdictions to which Nucor is subject (primarily Canada and other state and local jurisdictions).