In one embodiment, a method for encoding sample adaptive offset (SAO) values in a video encoding process is provided, the method comprising: selecting an edge offset type; selecting one of one or more edge offset sub-classes; within at least one of the edge offset sub-classes, generating an interpolated pixel value that is related to a current pixel value; generating an offset value that is related to the interpolated pixel value; and optionally applying the offset value to at least the current pixel value to form an SAO compensated value.