Supplemental Guarantor Information (Tables)

6 Months Ended

May 31, 2014

Guarantees [Abstract]

Condensed Consolidated Statements of Operations

Condensed Consolidating Statement of Operations

Six Months Ended May 31, 2014 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	988,256		$	27,438		$	—		$	1,015,694
Homebuilding:
Revenues	$	—		$	988,256		$	22,407		$	—		$	1,010,663
Construction and land costs	—			(804,822		)	(21,012		)	—			(825,834		)
Selling, general and administrative expenses	(31,495		)	(93,775		)	(7,548		)	—			(132,818		)
Operating income (loss)	(31,495		)	89,659			(6,153		)	—			52,011
Interest income	276			6			1			—			283
Interest expense	(79,679		)	(2,760		)	—			62,605			(19,834		)
Intercompany interest	130,431			(67,533		)	(293		)	(62,605		)	—
Equity in income of unconsolidated joint ventures	—			1,912			—			—			1,912
Homebuilding pretax income (loss)	19,533			21,284			(6,445		)	—			34,372
Financial services pretax income	—			—			3,315			—			3,315
Total pretax income (loss)	19,533			21,284			(3,130		)	—			37,687
Income tax expense	(200		)	(300		)	—			—			(500		)
Equity in net income of subsidiaries	17,854			—			—			(17,854		)	—
Net income (loss)	$	37,187		$	20,984		$	(3,130	)	$	(17,854	)	$	37,187

Condensed Consolidating Statement of Operations

Six Months Ended May 31, 2013 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	901,243		$	28,382		$	—		$	929,625
Homebuilding:
Revenues	$	—		$	901,243		$	23,361		$	—		$	924,604
Construction and land costs	—			(765,166		)	(21,097		)	—			(786,263		)
Selling, general and administrative expenses	(34,152		)	(87,997		)	(7,047		)	—			(129,196		)
Operating income (loss)	(34,152		)	48,080			(4,783		)	—			9,145
Interest income	429			3			4			—			436
Interest expense	(64,951		)	(2,961		)	—			38,165			(29,747		)
Intercompany interest	94,558			(57,424		)	1,031			(38,165		)	—
Equity in loss of unconsolidated joint ventures	—			(1,002		)	—			—			(1,002		)
Homebuilding pretax loss	(4,116		)	(13,304		)	(3,748		)	—			(21,168		)
Financial services pretax income	—			—			4,637			—			4,637
Total pretax income (loss)	(4,116		)	(13,304		)	889			—			(16,531		)
Income tax benefit	300			800			—			—			1,100
Equity in net loss of subsidiaries	(11,615		)	—			—			11,615			—
Net income (loss)	$	(15,431	)	$	(12,504	)	$	889		$	11,615		$	(15,431	)

Condensed Consolidating Statement of Operations

Three Months Ended May 31, 2014 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	552,407		$	12,600		$	—		$	565,007
Homebuilding:
Revenues	$	—		$	552,407		$	9,989		$	—		$	562,396
Construction and land costs	—			(446,730		)	(9,830		)	—			(456,560		)
Selling, general and administrative expenses	(15,751		)	(51,803		)	(3,990		)	—			(71,544		)
Operating income (loss)	(15,751		)	53,874			(3,831		)	—			34,292
Interest income	109			5			1			—			115
Interest expense	(41,671		)	(1,488		)	—			34,601			(8,558		)
Intercompany interest	70,709			(35,437		)	(671		)	(34,601		)	—
Equity in loss of unconsolidated joint ventures	—			(678		)	—			—			(678		)
Homebuilding pretax income (loss)	13,396			16,276			(4,501		)	—			25,171
Financial services pretax income	—			—			1,753			—			1,753
Total pretax income (loss)	13,396			16,276			(2,748		)	—			26,924
Income tax expense	(100		)	(200		)	—			—			(300		)
Equity in net income of subsidiaries	13,328			—			—			(13,328		)	—
Net income (loss)	$	26,624		$	16,076		$	(2,748	)	$	(13,328	)	$	26,624

Condensed Consolidating Statement of Operations

Three Months Ended May 31, 2013 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	508,015		$	16,391		$	—		$	524,406
Homebuilding:
Revenues	$	—		$	508,015		$	13,773		$	—		$	521,788
Construction and land costs	—			(430,669		)	(12,329		)	—			(442,998		)
Selling, general and administrative expenses	(19,329		)	(47,188		)	(3,582		)	—			(70,099		)
Operating income (loss)	(19,329		)	30,158			(2,138		)	—			8,691
Interest income	228			2			2			—			232
Interest expense	(33,103		)	(1,387		)	—			19,983			(14,507		)
Intercompany interest	49,201			(29,292		)	74			(19,983		)	—
Equity in loss of unconsolidated joint ventures	—			(567		)	—			—			(567		)
Homebuilding pretax loss	(3,003		)	(1,086		)	(2,062		)	—			(6,151		)
Financial services pretax income	—			—			1,978			—			1,978
Total pretax loss	(3,003		)	(1,086		)	(84		)	—			(4,173		)
Income tax benefit	1,000			200			—			—			1,200
Equity in net loss of subsidiaries	(970		)	—			—			970			—
Net loss	$	(2,973	)	$	(886	)	$	(84	)	$	970		$	(2,973	)

Condensed Consolidated Balance Sheets

Condensed Consolidating Balance Sheet

May 31, 2014 (in thousands)

	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	412,811	$	67,208	$	4,453	$	—		$	484,472
Restricted cash	44,237		—		—		—			44,237
Receivables	1,464		97,956		359		—			99,779
Inventories	—		2,963,356		42,762		—			3,006,118
Investments in unconsolidated joint ventures	—		67,594		—		—			67,594
Other assets	102,898		12,334		1,326		—			116,558
	561,410		3,208,448		48,900		—			3,818,758
Financial services	—		—		9,268		—			9,268
Intercompany receivables	2,779,476		—		115,848		(2,895,324		)	—
Investments in subsidiaries	39,620		—		—		(39,620		)	—
Total assets	$	3,380,506	$	3,208,448	$	174,016	$	(2,934,944	)	$	3,828,026
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	137,208	$	311,139	$	94,172	$	—		$	542,519
Mortgages and notes payable	2,512,454		61,526		—		—			2,573,980
	2,649,662		372,665		94,172		—			3,116,499
Financial services	—		—		1,854		—			1,854
Intercompany payables	21,171		2,835,783		38,370		(2,895,324		)	—
Stockholders’ equity	709,673		—		39,620		(39,620		)	709,673
Total liabilities and stockholders’ equity	$	3,380,506	$	3,208,448	$	174,016	$	(2,934,944	)	$	3,828,026

Condensed Consolidating Balance Sheet

November 30, 2013 (in thousands)

	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	476,847	$	41,316	$	11,932	$	—		$	530,095
Restricted cash	41,906		—		—		—			41,906
Receivables	1,472		74,186		91		—			75,749
Inventories	—		2,263,034		35,543		—			2,298,577
Investments in unconsolidated joint ventures	—		130,192		—		—			130,192
Other assets	97,647		9,072		357		—			107,076
	617,872		2,517,800		47,923		—			3,183,595
Financial services	—		—		10,040		—			10,040
Intercompany receivables	2,129,729		—		117,829		(2,247,558		)	—
Investments in subsidiaries	39,955		—		—		(39,955		)	—
Total assets	$	2,787,556	$	2,517,800	$	175,792	$	(2,287,513	)	$	3,193,635
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	117,875	$	292,220	$	94,363	$	—		$	504,458
Mortgages and notes payable	2,111,773		38,725		—		—			2,150,498
	2,229,648		330,945		94,363		—			2,654,956
Financial services	—		—		2,593		—			2,593
Intercompany payables	21,822		2,186,855		38,881		(2,247,558		)	—
Stockholders’ equity	536,086		—		39,955		(39,955		)	536,086
Total liabilities and stockholders’ equity	$	2,787,556	$	2,517,800	$	175,792	$	(2,287,513	)	$	3,193,635

Condensed Consolidated Statements of Cash Flows

Condensed Consolidating Statement of Cash Flows

Six Months Ended May 31, 2014 (in thousands)

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	46,275		$	(578,445	)	$	(22,359	)	$	—		$	(554,529	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(16,242		)	—			—			(16,242		)
Proceeds from sale of investment in unconsolidated joint venture	—			10,110			—			—			10,110
Purchases of property and equipment, net	(84		)	(2,838		)	(90		)	—			(3,012		)
Intercompany	(635,123		)	—			—			635,123			—
Net cash used in investing activities	(635,207		)	(8,970		)	(90		)	635,123			(9,144		)
Cash flows from financing activities:
Change in restricted cash	(2,331		)	—			—			—			(2,331		)
Proceeds from issuance of debt	400,000			—			—			—			400,000
Payment of debt issuance costs	(5,448		)	—			—			—			(5,448		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(6,476		)	—			—			(6,476		)
Proceeds from issuance of common stock, net	137,045			—			—			—			137,045
Issuance of common stock under employee stock plans	64			—			—			—			64
Payments of cash dividends	(4,388		)	—			—			—			(4,388		)
Stock repurchases	(46		)	—			—			—			(46		)
Intercompany	—			619,783			15,340			(635,123		)	—
Net cash provided by financing activities	524,896			613,307			15,340			(635,123		)	518,420
Net increase (decrease) in cash and cash equivalents	(64,036		)	25,892			(7,109		)	—			(45,253		)
Cash and cash equivalents at beginning of period	476,847			41,316			14,360			—			532,523
Cash and cash equivalents at end of period	$	412,811		$	67,208		$	7,251		$	—		$	487,270

Condensed Consolidating Statement of Cash Flows

Six Months Ended May 31, 2013 (in thousands) 

	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	7,525		$	(259,083	)	$	(16,042	)	$	—		$	(267,600	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(656		)	(4,995		)	—			(5,651		)
Purchases of property and equipment, net	(166		)	(554		)	(32		)	—			(752		)
Intercompany	(311,062		)	—			—			311,062			—
Net cash used in investing activities	(311,228		)	(1,210		)	(5,027		)	311,062			(6,403		)
Cash flows from financing activities:
Change in restricted cash	40			—			—			—			40
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	—			(37,830		)	—			—			(37,830		)
Proceeds from issuance of common stock, net	109,503			—			—			—			109,503
Issuance of common stock under employee stock plans	2,106			—			—			—			2,106
Payments of cash dividends	(4,179		)	—			—			—			(4,179		)
Stock repurchases	(33		)	—			—			—			(33		)
Intercompany	—			295,385			15,677			(311,062		)	—
Net cash provided by financing activities	327,351			257,555			15,677			(311,062		)	289,521
Net increase (decrease) in cash and cash equivalents	23,648			(2,738		)	(5,392		)	—			15,518
Cash and cash equivalents at beginning of period	457,007			54,205			14,476			—			525,688
Cash and cash equivalents at end of period	$	480,655		$	51,467		$	9,084		$	—		$	541,206