Supplemental Guarantor Information (Tables)

3 Months Ended

Feb. 28, 2015

Condensed Consolidating Statement of Operations

Three Months Ended February 28, 2015 (in thousands)



	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	534,276		$	45,845		$	—		$	580,121
Homebuilding:
Revenues	$	—		$	534,276		$	43,612		$	—		$	577,888
Construction and land costs	—			(451,140		)	(41,278		)	—			(492,418		)
Selling, general and administrative expenses	(15,672		)	(48,504		)	(6,896		)	—			(71,072		)
Operating income (loss)	(15,672		)	34,632			(4,562		)	—			14,398
Interest income	101			1			1			—			103
Interest expense	(43,580		)	(1,460		)	—			39,702			(5,338		)
Intercompany interest	70,468			(28,406		)	(2,360		)	(39,702		)	—
Equity in loss of unconsolidated joint ventures	—			(347		)	—			—			(347		)
Homebuilding pretax income (loss)	11,317			4,420			(6,921		)	—			8,816
Financial services pretax income	—			—			1,683			—			1,683
Total pretax income (loss)	11,317			4,420			(5,238		)	—			10,499
Income tax benefit (expense)	200			(3,100		)	200			—			(2,700		)
Equity in net loss of subsidiaries	(3,718		)	—			—			3,718			—
Net income (loss)	$	7,799		$	1,320		$	(5,038	)	$	3,718		$	7,799

Condensed Consolidating Statement of Operations

Three Months Ended February 28, 2014 (in thousands)



	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	392,178		$	58,509		$	—		$	450,687
Homebuilding:
Revenues	$	—		$	392,178		$	56,089		$	—		$	448,267
Construction and land costs	—			(321,352		)	(47,922		)	—			(369,274		)
Selling, general and administrative expenses	(15,744		)	(37,081		)	(8,449		)	—			(61,274		)
Operating income (loss)	(15,744		)	33,745			(282		)	—			17,719
Interest income	167			1			—			—			168
Interest expense	(38,008		)	(1,272		)	—			28,004			(11,276		)
Intercompany interest	59,722			(30,074		)	(1,644		)	(28,004		)	—
Equity in income (loss) of unconsolidated joint ventures	—			(703		)	3,293			—			2,590
Homebuilding pretax income	6,137			1,697			1,367			—			9,201
Financial services pretax income	—			—			1,562			—			1,562
Total pretax income	6,137			1,697			2,929			—			10,763
Income tax expense	—			(200		)	—			—			(200		)
Equity in net income of subsidiaries	4,426			—			—			(4,426		)	—
Net income	$	10,563		$	1,497		$	2,929		$	(4,426	)	$	10,563

Condensed Consolidating Balance Sheet

February 28, 2015 (in thousands)



	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	472,130	$	66,305	$	7,206	$	—		$	545,641
Restricted cash	27,984		—		—		—			27,984
Receivables	293		140,849		2,555		—			143,697
Inventories	—		2,999,424		246,959		—			3,246,383
Investments in unconsolidated joint ventures	—		73,502		—		—			73,502
Deferred tax assets, net	216,092		549,546		56,994		—			822,632
Other assets	104,420		13,558		1,895		—			119,873
	820,919		3,843,184		315,609		—			4,979,712
Financial services	—		—		10,145		—			10,145
Intercompany receivables	3,660,500		—		109,129		(3,769,629		)	—
Investments in subsidiaries	37,488		—		—		(37,488		)	—
Total assets	$	4,518,907	$	3,843,184	$	434,883	$	(3,807,117	)	$	4,989,857
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	131,682	$	327,964	$	99,501	$	—		$	559,147
Notes payable	2,763,532		60,638		—		—			2,824,170
	2,895,214		388,602		99,501		—			3,383,317
Financial services	—		—		1,970		—			1,970
Intercompany payables	19,123		3,453,262		297,244		(3,769,629		)	—
Stockholders’ equity	1,604,570		1,320		36,168		(37,488		)	1,604,570
Total liabilities and stockholders’ equity	$	4,518,907	$	3,843,184	$	434,883	$	(3,807,117	)	$	4,989,857

Condensed Consolidating Balance Sheet

November 30, 2014 (in thousands)



	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	303,280	$	38,124	$	14,962	$	—		$	356,366
Restricted cash	27,235		—		—		—			27,235
Receivables	15		123,024		2,449		—			125,488
Inventories	—		2,980,056		238,331		—			3,218,387
Investments in unconsolidated joint ventures	—		79,441		—		—			79,441
Deferred tax assets, net	215,923		552,653		56,656		—			825,232
Other assets	99,099		13,922		1,894		—			114,915
	645,552		3,787,220		314,292		—			4,747,064
Financial services	—		—		10,486		—			10,486
Intercompany receivables	3,582,612		—		112,919		(3,695,531		)	—
Investments in subsidiaries	39,356		—		—		(39,356		)	—
Total assets	$	4,267,520	$	3,787,220	$	437,697	$	(3,734,887	)	$	4,757,550
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	138,298	$	331,361	$	112,939	$	—		$	582,598
Notes payable	2,513,165		63,360		—		—			2,576,525
	2,651,463		394,721		112,939		—			3,159,123
Financial services	—		—		2,517		—			2,517
Intercompany payables	20,147		3,392,499		282,885		(3,695,531		)	—
Stockholders’ equity	1,595,910		—		39,356		(39,356		)	1,595,910
Total liabilities and stockholders’ equity	$	4,267,520	$	3,787,220	$	437,697	$	(3,734,887	)	$	4,757,550

Condensed Consolidating Statement of Cash Flows

Three Months Ended February 28, 2015 (in thousands)



	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	5,369		$	(30,016	)	$	(24,262	)	$	—		$	(48,909	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(2,414		)	—			—			(2,414		)
Purchases of property and equipment, net	(37		)	(528		)	(21		)	—			(586		)
Intercompany	(83,524		)	—			—			83,524			—
Net cash used in investing activities	(83,561		)	(2,942		)	(21		)	83,524			(3,000		)
Cash flows from financing activities:
Change in restricted cash	(749		)	—			—			—			(749		)
Proceeds from issuance of debt	250,000			—			—			—			250,000
Payment of debt issuance costs	(2,989		)	—			—			—			(2,989		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(2,722		)	—			—			(2,722		)
Payments of cash dividends	(2,299		)	—			—			—			(2,299		)
Stock repurchases	(21		)	—			—			—			(21		)
Intercompany	—			66,961			16,563			(83,524		)	—
Net cash provided by financing activities	243,942			64,239			16,563			(83,524		)	241,220
Net increase (decrease) in cash and cash equivalents	165,750			31,281			(7,720		)	—			189,311
Cash and cash equivalents at beginning of period	303,280			38,124			17,364			—			358,768
Cash and cash equivalents at end of period	$	469,030		$	69,405		$	9,644		$	—		$	548,079

Condensed Consolidating Statement of Cash Flows

Three Months Ended February 28, 2014 (in thousands)



	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	25,325		$	(238,244	)	$	(8,144	)	$	—		$	(221,063	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(8,370		)	(248		)	—			(8,618		)
Proceeds from sale of investment in unconsolidated joint venture	—			—			10,110			—			10,110
Purchases of property and equipment, net	(70		)	(1,107		)	(399		)	—			(1,576		)
Intercompany	(265,597		)	—			—			265,597			—
Net cash provided by (used in) investing activities	(265,667		)	(9,477		)	9,463			265,597			(84		)

Cash flows from financing activities:
Change in restricted cash	(177		)	—			—			—			(177		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(2,655		)	—			—			(2,655		)
Payments of cash dividends	(2,094		)	—			—			—			(2,094		)
Intercompany	—			268,173			(2,576		)	(265,597		)	—
Net cash provided by (used in) financing activities	(2,271		)	265,518			(2,576		)	(265,597		)	(4,926		)
Net increase (decrease) in cash and cash equivalents	(242,613		)	17,797			(1,257		)	—			(226,073		)
Cash and cash equivalents at beginning of period	476,847			39,952			15,724			—			532,523
Cash and cash equivalents at end of period	$	234,234		$	57,749		$	14,467		$	—		$	306,450