Supplemental Guarantor Information (Tables)

9 Months Ended

Aug. 31, 2013

Guarantees [Abstract]

Schedule of Financial Services Income (Loss)

Condensed Consolidating Statement of Operations

Nine Months Ended August 31, 2013 (in thousands) 

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	1,306,981		$	171,618		$	—		$	1,478,599
Homebuilding:
Revenues	$	—		$	1,306,981		$	163,423		$	—		$	1,470,404
Construction and land costs	—			(1,092,603		)	(140,041		)	—			(1,232,644		)
Selling, general and administrative expenses	(45,355		)	(122,817		)	(24,480		)	—			(192,652		)
Operating income (loss)	(45,355		)	91,561			(1,098		)	—			45,108
Interest income	607			17			5			—			629
Interest expense	49,253			(85,644		)	(4,682		)	—			(41,073		)
Equity in loss of unconsolidated joint ventures	—			(1,656		)	(2		)	—			(1,658		)
Homebuilding pretax income (loss)	4,505			4,278			(5,777		)	—			3,006
Financial services pretax income	—			—			7,041			—			7,041
Total pretax income	4,505			4,278			1,264			—			10,047
Income tax benefit	800			800			200			—			1,800
Equity in net income of subsidiaries	6,542			—			—			(6,542		)	—
Net income	$	11,847		$	5,078		$	1,464		$	(6,542	)	$	11,847

Revised Condensed Consolidating Statement of Operations

Nine Months Ended August 31, 2012 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Revenues	$	—		$	869,357		$	112,557		$	—	$	981,914
Homebuilding:
Revenues	$	—		$	869,357		$	104,698		$	—	$	974,055
Construction and land costs	—			(746,456		)	(89,773		)	—		(836,229		)
Selling, general and administrative expenses	(45,480		)	(107,471		)	(20,693		)	—		(173,644		)
Operating income (loss)	(45,480		)	15,430			(5,768		)	—		(35,818		)
Interest income	332			5			26			—		363
Interest expense	37,026			(86,597		)	(4,244		)	—		(53,815		)
Equity in loss of unconsolidated joint ventures	—			(36		)	(1		)	—		(37		)
Homebuilding pretax loss	(8,122		)	(71,198		)	(9,987		)	—		(89,307		)
Financial services pretax income	—			—			7,830			—		7,830
Total pretax loss	(8,122		)	(71,198		)	(2,157		)	—		(81,477		)
Income tax benefit	1,600			12,800			400			—		14,800
Equity in net loss of subsidiaries	(60,155		)	—			—			60,155		—
Net loss	$	(66,677	)	$	(58,398	)	$	(1,757	)	$	60,155	$	(66,677	)

Condensed Consolidating Statement of Operations

Three Months Ended August 31, 2013 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	480,069		$	68,905		$	—		$	548,974
Homebuilding:
Revenues	$	—		$	480,069		$	65,731		$	—		$	545,800
Construction and land costs	—			(390,567		)	(55,814		)	—			(446,381		)
Selling, general and administrative expenses	(11,203		)	(43,691		)	(8,562		)	—			(63,456		)
Operating income (loss)	(11,203		)	45,811			1,355			—			35,963
Interest income	178			15			—			—			193
Interest expense	19,646			(28,778		)	(2,194		)	—			(11,326		)
Equity in income (loss) of unconsolidated joint ventures	—			(657		)	1			—			(656		)
Homebuilding pretax income (loss)	8,621			16,391			(838		)	—			24,174
Financial services pretax income	—			—			2,404			—			2,404
Total pretax income	8,621			16,391			1,566			—			26,578
Income tax benefit	200			500			—			—			700
Equity in net income of subsidiaries	18,457			—			—			(18,457		)	—
Net income	$	27,278		$	16,891		$	1,566		$	(18,457	)	$	27,278

Revised Condensed Consolidating Statement of Operations

Three Months Ended August 31, 2012 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Revenues	$	—		$	380,165		$	44,339		$	—	$	424,504
Homebuilding:
Revenues	$	—		$	380,165		$	41,390		$	—	$	421,555
Construction and land costs	—			(313,469		)	(37,887		)	—		(351,356		)
Selling, general and administrative expenses	(16,546		)	(37,705		)	(5,081		)	—		(59,332		)
Operating income (loss)	(16,546		)	28,991			(1,578		)	—		10,867
Interest income	107			(1,925		)	1,935			—		117
Interest expense	6,096			(27,616		)	(1,540		)	—		(23,060		)
Equity in income of unconsolidated joint ventures	—			277			1			—		278
Homebuilding pretax loss	(10,343		)	(273		)	(1,182		)	—		(11,798		)
Financial services pretax income	—			—			4,359			—		4,359
Total pretax income (loss)	(10,343		)	(273		)	3,177			—		(7,439		)
Income tax benefit (expense)	14,900			400			(4,600		)	—		10,700
Equity in net loss of subsidiaries	(1,296		)	—			—			1,296		—
Net income (loss)	$	3,261		$	127		$	(1,423	)	$	1,296	$	3,261

Condensed Consolidated Balance Sheets

Condensed Consolidating Balance Sheet

August 31, 2013 (in thousands)

	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	306,955	$	63,968	$	12,391	$	—		$	383,314
Restricted cash	41,631		—		—		—			41,631
Receivables	167		70,719		1,459		—			72,345
Inventories	—		2,046,106		183,614		—			2,229,720
Investments in unconsolidated joint ventures	—		124,049		2,500		—			126,549
Other assets	91,083		8,718		1,446		—			101,247
	439,836		2,313,560		201,410		—			2,954,806
Financial services	—		—		10,035		—			10,035
Intercompany receivables	2,037,313		—		—		(2,037,313		)	—
Investments in subsidiaries	33,771		—		—		(33,771		)	—
Total assets	$	2,510,920	$	2,313,560	$	211,445	$	(2,071,084	)	$	2,964,841
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	136,473	$	258,175	$	132,265	$	—		$	526,913
Mortgages and notes payable	1,876,441		60,616		—		—			1,937,057
	2,012,914		318,791		132,265		—			2,463,970
Financial services	—		—		2,865		—			2,865
Intercompany payables	—		1,978,378		58,935		(2,037,313		)	—
Stockholders’ equity	498,006		16,391		17,380		(33,771		)	498,006
Total liabilities and stockholders’ equity	$	2,510,920	$	2,313,560	$	211,445	$	(2,071,084	)	$	2,964,841

Revised Condensed Consolidating Balance Sheet

November 30, 2012 (in thousands)

	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	457,007	$	52,933	$	14,825		$	—		$	524,765
Restricted cash	42,362		—		—			—			42,362
Receivables	121		63,600		1,100			—			64,821
Inventories	—		1,572,999		133,572			—			1,706,571
Investments in unconsolidated joint ventures	—		114,292		9,382			—			123,674
Other assets	85,901		15,638		(6,489		)	—			95,050
	585,391		1,819,462		152,390			—			2,557,243
Financial services	—		—		4,455			—			4,455
Intercompany receivables	1,559,712		—		—			(1,559,712		)	—
Investments in subsidiaries	11,411		—		—			(11,411		)	—
Total assets	$	2,156,514	$	1,819,462	$	156,845		$	(1,571,123	)	$	2,561,698
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	134,314	$	207,641	$	116,934		$	—		$	458,889
Mortgages and notes payable	1,645,394		77,421		—			—			1,722,815
	1,779,708		285,062		116,934			—			2,181,704
Financial services	—		—		3,188			—			3,188
Intercompany payables	—		1,534,400		25,312			(1,559,712		)	—
Stockholders’ equity	376,806		—		11,411			(11,411		)	376,806
Total liabilities and stockholders’ equity	$	2,156,514	$	1,819,462	$	156,845		$	(1,571,123	)	$	2,561,698

Condensed Consolidated Statements of Cash Flows

Condensed Consolidating Statement of Cash Flows

Nine Months Ended August 31, 2013 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net income	$	11,847		$	5,078		$	1,464		$	(6,542	)	$	11,847
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in (income) loss of unconsolidated joint ventures	—			1,655			(1,078		)	—			577
Land option contract abandonments	—			284			—			—			284
Changes in assets and liabilities:
Receivables	(46		)	(7,119		)	164			—			(7,001		)
Inventories	—			(445,791		)	(45,211		)	—			(491,002		)
Accounts payable, accrued expenses and other liabilities	10,505			50,534			11,276			—			72,315
Other, net	9,893			1,304			324			—			11,521
Net cash provided by (used in) operating activities	32,199			(394,055		)	(33,061		)	(6,542		)	(401,459		)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(5,064		)	(4,992		)	—			(10,056		)
Purchases of property and equipment, net	(346		)	(735		)	(278		)	—			(1,359		)
Net cash used in investing activities	(346		)	(5,799		)	(5,270		)	—			(11,415		)
Cash flows from financing activities:
Change in restricted cash	731			—			—			—			731
Proceeds from issuance of debt	230,000			—			—			—			230,000
Payment of debt issuance costs	(10,086		)	—			—			—			(10,086		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(44,405		)	—			—			(44,405		)
Proceeds from issuance of common stock, net	109,503			—			—			—			109,503
Issuance of common stock under employee stock plans	2,147			—			—			—			2,147
Payments of cash dividends	(6,272		)	—			—			—			(6,272		)
Stock repurchases	(7,967		)	—			—			—			(7,967		)
Intercompany	(499,961		)	455,294			38,125			6,542			—
Net cash provided by (used in) financing activities	(181,905		)	410,889			38,125			6,542			273,651
Net increase (decrease) in cash and cash equivalents	(150,052		)	11,035			(206		)	—			(139,223		)
Cash and cash equivalents at beginning of period	457,007			52,933			15,748			—			525,688
Cash and cash equivalents at end of period	$	306,955		$	63,968		$	15,542		$	—		$	386,465

Revised Condensed Consolidating Statement of Cash Flows

Nine Months Ended August 31, 2012 (in thousands) 

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net loss	$	(66,677	)	$	(58,398	)	$	(1,757	)	$	60,155		$	(66,677	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in (income) loss of unconsolidated joint ventures	—			35			(2,206		)	—			(2,171		)
Inventory impairments	—			22,912			—			—			22,912
Changes in assets and liabilities:
Receivables	(26,660		)	(1,577		)	23,735			—			(4,502		)
Inventories	—			10,157			(20,719		)	—			(10,562		)
Accounts payable, accrued expenses and other liabilities	(347		)	(17,309		)	(13,610		)	—			(31,266		)
Other, net	9,796			539			6,131			—			16,466
Net cash used in operating activities	(83,888		)	(43,641		)	(8,426		)	60,155			(75,800		)
Cash flows from investing activities:
Return of investments in (contributions to) unconsolidated joint ventures	—			3,801			(936		)	—			2,865
Sales (purchases) of property and equipment, net	(65		)	(989		)	2			—			(1,052		)
Net cash provided by (used in) investing activities	(65		)	2,812			(934		)	—			1,813
Cash flows from financing activities:
Change in restricted cash	18,368			—			—			—			18,368
Proceeds from issuance of debt	694,831			—			—			—			694,831
Payment of debt issuance costs	(12,195		)	—			—			—			(12,195		)
Repayment of senior notes	(592,645		)	—			—			—			(592,645		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(21,099		)	—			—			(21,099		)
Issuance of common stock under employee stock plans	451			—			—			—			451
Payments of cash dividends	(8,674		)	—			—			—			(8,674		)
Intercompany	3,687			58,590			(2,122		)	(60,155		)	—
Net cash provided by (used in) financing activities	103,823			37,491			(2,122		)	(60,155		)	79,037
Net increase (decrease) in cash and cash equivalents	19,870			(3,338		)	(11,482		)	—			5,050
Cash and cash equivalents at beginning of period	340,957			46,375			30,742			—			418,074
Cash and cash equivalents at end of period	$	360,827		$	43,037		$	19,260		$	—		$	423,124