Shareholders' Equity

6 Months Ended

Jul. 02, 2011

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 11 - Shareholders' Equity

A summary of changes in total shareholders' equity follows:

		First Six Months
		2011									2010
		Temple-Inland Inc. Shareholders' Equity			Noncontrolling Interest			Total Shareholders' Equity			Temple-Inland Inc. Shareholders' Equity			Noncontrolling Interest			Total Shareholders' Equity
		(In millions, except per share amounts)
Beginning of year	$	929		$	92		$	1,021		$	794		$	92		$	886
Comprehensive income, net of tax:
Net income (loss)		35			(1	)		34			16			(1	)		15
Defined benefit plans		9			--			9			10			--			10
Foreign currency translation adjustment		5			--			5			3			--			3
Total Comprehensive Income								48									28
Dividends paid on common stock - ($0.26 per share in 2011 and $0.22 per share in 2010)		(28	)		--			(28	)		(23	)		--			(23	)
Share-based compensation, net of distributions		15			--			15			9			--			9
Balance at second quarter-end	$	965		$	91		$	1,056		$	809		$	91		$	900

Comprehensive income was $26 million for second quarter 2011 and $24 million for second quarter 2010.  We issued 698,187 and 390,808 shares of common stock in first six months 2011 and 2010 to employees exercising options and for vesting of share-settled units.

In second quarter 2011, our Board of Directors adopted the Rights Plan and declared a dividend of one Right for each outstanding share of Temple-Inland common stock.  The Rights initially trade with, and are inseparable from, our common stock.  New Rights will accompany any new shares of common stock issued.  If a person or group acquires ten percent or more of our outstanding common stock, each Right will entitle its holder (other than such person or members of such group) to purchase, at the Right's then-current exercise price, a number of our common shares having a market value of twice the exercise price.  In addition, if Temple-Inland is acquired in a merger or other business combination transaction after a person has acquired ten percent of more of our outstanding common stock, each Right will entitle its holder to purchase, at the Right's then-current exercise price, a number of acquiring company's common shares having a market value of twice the exercise price.  The acquiring person will not be entitled to exercise the Rights.  Prior to exercise, the Rights do not give the holder any dividend, voting, or liquidation rights.  We will generally be entitled to redeem the Rights at $0.01 per Right at any time before a person or group obtains beneficial ownership of 10 percent or more of our common stock.  The Rights Plan should not interfere with any merger or other business combination approved by our Board of Directors.   The Rights will expire on June 7, 2016.