Shareholders' Equity

9 Months Ended

Sep. 30, 2011

Shareholders' Equity, Capital Stock and Other Comprehensive Income Loss [Abstract]

Shareholders' Equity

Note 6 — Shareholders’ Equity

     A reconciliation of changes in shareholders’ equity at third quarter-end 2011 follows:

	Forestar		Noncontrolling
	Group Inc.		Interests			Total
			(In thousands)
Balance at year-end 2010	$	509,564	$	4,715		$	514,279
Net income		30,034		901			30,935
Distributions to noncontrolling interests		—		(2,901	)		(2,901	)
Contributions from noncontrolling interests		—		83			83
Other (primarily share-based compensation)		2,255		—			2,255
Balance at third quarter-end 2011	$	541,853	$	2,798		$	544,651

     In first nine months 2011, we issued 126,257 shares of our common stock as a result of stock option exercises and vesting of equity-settled restricted stock units.

     In addition, we repurchased 172,435 shares of our common stock at a cost of $2,126,000 in third quarter 2011. The repurchased shares are classified as treasury stock.