Supplemental Guarantor Information (Tables)

9 Months Ended

Aug. 31, 2018

Guarantees [Abstract]

Condensed Consolidated Statements of Operations

	Three Months Ended August 31, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	1,115,373		$	109,974		$	—		$	1,225,347
Homebuilding:
Revenues	$	—		$	1,115,373		$	106,502		$	—		$	1,221,875
Construction and land costs	—			(907,027		)	(94,482		)	—			(1,001,509		)
Selling, general and administrative expenses	(24,688		)	(80,196		)	(9,869		)	—			(114,753		)
Operating income (loss)	(24,688		)	128,150			2,151			—			105,613
Interest income	380			—			78			—			458
Interest expense	(33,319		)	(669		)	(1,240		)	35,228			—
Intercompany interest	78,519			(39,896		)	(3,395		)	(35,228		)	—
Equity in income of unconsolidated joint ventures	—			3,493			—			—			3,493
Homebuilding pretax income (loss)	20,892			91,078			(2,406		)	—			109,564
Financial services pretax income	—			—			5,112			—			5,112
Total pretax income	20,892			91,078			2,706			—			114,676
Income tax expense	(3,500		)	(22,700		)	(1,000		)	—			(27,200		)
Equity in net income of subsidiaries	70,084			—			—			(70,084		)	—
Net income	$	87,476		$	68,378		$	1,706		$	(70,084	)	$	87,476

	Three Months Ended August 31, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	1,048,045		$	95,956		$	—		$	1,144,001
Homebuilding:
Revenues	$	—		$	1,048,045		$	92,742		$	—		$	1,140,787
Construction and land costs	—			(871,350		)	(83,651		)	—			(955,001		)
Selling, general and administrative expenses	(23,220		)	(72,686		)	(13,189		)	—			(109,095		)
Operating income (loss)	(23,220		)	104,009			(4,098		)	—			76,691
Interest income	345			2			—			—			347
Interest expense	(41,746		)	(434		)	(1,254		)	43,434			—
Intercompany interest	77,367			(31,059		)	(2,874		)	(43,434		)	—
Equity in loss of unconsolidated joint ventures	—			(814		)	—			—			(814		)
Homebuilding pretax income (loss)	12,746			71,704			(8,226		)	—			76,224
Financial services pretax income	—			—			2,984			—			2,984
Total pretax income (loss)	12,746			71,704			(5,242		)	—			79,208
Income tax benefit (expense)	(3,700		)	(26,200		)	900			—			(29,000		)
Equity in net income of subsidiaries	41,162			—			—			(41,162		)	—
Net income (loss)	$	50,208		$	45,504		$	(4,342	)	$	(41,162	)	$	50,208

	Nine Months Ended August 31, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	2,886,995		$	311,398		$	—		$	3,198,393
Homebuilding:
Revenues	$	—		$	2,886,995		$	302,758		$	—		$	3,189,753
Construction and land costs	—			(2,376,223		)	(266,008		)	—			(2,642,231		)
Selling, general and administrative expenses	(73,669		)	(223,023		)	(27,016		)	—			(323,708		)
Operating income (loss)	(73,669		)	287,749			9,734			—			223,814
Interest income	2,559			9			171			—			2,739
Interest expense	(109,233		)	(1,992		)	(3,871		)	115,096			—
Intercompany interest	226,642			(103,211		)	(8,335		)	(115,096		)	—
Equity in income (loss) of unconsolidated joint ventures	—			2,327			(1		)	—			2,326
Homebuilding pretax income (loss)	46,299			184,882			(2,302		)	—			228,879
Financial services pretax income	—			—			10,150			—			10,150
Total pretax income	46,299			184,882			7,848			—			239,029
Income tax expense	(50,600		)	(88,500		)	(26,400		)	—			(165,500		)
Equity in net income of subsidiaries	77,830			—			—			(77,830		)	—
Net income (loss)	$	73,529		$	96,382		$	(18,552	)	$	(77,830	)	$	73,529

	Nine Months Ended August 31, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	2,671,533		$	293,858		$	—		$	2,965,391
Homebuilding:
Revenues	$	—		$	2,671,533		$	285,572		$	—		$	2,957,105
Construction and land costs	—			(2,240,974		)	(258,703		)	—			(2,499,677		)
Selling, general and administrative expenses	(68,809		)	(206,513		)	(30,579		)	—			(305,901		)
Operating income (loss)	(68,809		)	224,046			(3,710		)	—			151,527
Interest income	740			5			2			—			747
Interest expense	(131,788		)	(1,428		)	(3,641		)	130,550			(6,307		)
Intercompany interest	226,470			(87,524		)	(8,396		)	(130,550		)	—
Equity in loss of unconsolidated joint ventures	—			(678		)	(1		)	—			(679		)
Homebuilding pretax income (loss)	26,613			134,421			(15,746		)	—			145,288
Financial services pretax income	—			—			7,361			—			7,361
Total pretax income (loss)	26,613			134,421			(8,385		)	—			152,649
Income tax benefit (expense)	(4,900		)	(52,300		)	800			—			(56,400		)
Equity in net income of subsidiaries	74,536			—			—			(74,536		)	—
Net income (loss)	$	96,249		$	82,121		$	(7,585	)	$	(74,536	)	$	96,249

Condensed Consolidated Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)

	August 31, 2018
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	245,197	$	86,201	$	22,963	$	—		$	354,361
Receivables	5,707		189,793		84,108		—			279,608
Inventories	—		3,317,712		371,143		—			3,688,855
Investments in unconsolidated joint ventures	—		59,932		2,504		—			62,436
Deferred tax assets, net	200,610		155,451		112,908		—			468,969
Other assets	97,542		8,670		2,707		—			108,919
	549,056		3,817,759		596,333		—			4,963,148
Financial services	—		—		11,541		—			11,541
Intercompany receivables	3,484,619		—		153,446		(3,638,065		)	—
Investments in subsidiaries	150,900		—		—		(150,900		)	—
Total assets	$	4,184,575	$	3,817,759	$	761,320	$	(3,788,965	)	$	4,974,689
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	137,171	$	530,309	$	226,933	$	—		$	894,413
Notes payable	1,993,722		44,295		25,110		—			2,063,127
	2,130,893		574,604		252,043		—			2,957,540
Financial services	—		—		1,200		—			1,200
Intercompany payables	37,733		3,152,077		448,255		(3,638,065		)	—
Stockholders’ equity	2,015,949		91,078		59,822		(150,900		)	2,015,949
Total liabilities and stockholders’ equity	$	4,184,575	$	3,817,759	$	761,320	$	(3,788,965	)	$	4,974,689

	November 30, 2017
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	575,193	$	102,661	$	42,776	$	—		$	720,630
Receivables	24,815		144,076		75,322		—			244,213
Inventories	—		2,929,466		333,920		—			3,263,386
Investments in unconsolidated joint ventures	—		62,290		2,504		—			64,794
Deferred tax assets, net	250,747		243,523		139,367		—			633,637
Other assets	91,592		8,424		2,482		—			102,498
	942,347		3,490,440		596,371		—			5,029,158
Financial services	—		—		12,357		—			12,357
Intercompany receivables	3,414,237		—		107,992		(3,522,229		)	—
Investments in subsidiaries	49,776		—		—		(49,776		)	—
Total assets	$	4,406,360	$	3,490,440	$	716,720	$	(3,572,005	)	$	5,041,515
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	163,984	$	371,909	$	253,500	$	—		$	789,393
Notes payable	2,289,532		9,283		26,030		—			2,324,845
	2,453,516		381,192		279,530		—			3,114,238
Financial services	—		—		966		—			966
Intercompany payables	26,533		3,109,248		386,448		(3,522,229		)	—
Stockholders’ equity	1,926,311		—		49,776		(49,776		)	1,926,311
Total liabilities and stockholders’ equity	$	4,406,360	$	3,490,440	$	716,720	$	(3,572,005	)	$	5,041,515

Condensed Consolidated Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)

	Nine Months Ended August 31, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	50,507		$	(38,248	)	$	(61,767	)	$	—		$	(49,508	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(15,640		)	—			—			(15,640		)
Return of investments in unconsolidated joint ventures	—			9,934			—			—			9,934
Purchases of property and equipment, net	(3,508		)	(457		)	(172		)	—			(4,137		)
Intercompany	(80,955		)	—			—			80,955			—
Net cash used in investing activities	(84,463		)	(6,163		)	(172		)	80,955			(9,843		)
Cash flows from financing activities:
Repayment of senior notes	(300,000		)	—			—			—			(300,000		)
Borrowings under revolving credit facility	70,000			—			—			—			70,000
Repayments under revolving credit facility	(70,000		)	—			—			—			(70,000		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(9,574		)	(920		)	—			(10,494		)
Issuance of common stock under employee stock plans	17,433			—			—			—			17,433
Payments of cash dividends	(6,686		)	—			—			—			(6,686		)
Tax payments associated with stock-based compensation awards	(6,787		)	—			—			—			(6,787		)
Intercompany	—			37,525			43,430			(80,955		)	—
Net cash provided by (used in) financing activities	(296,040		)	27,951			42,510			(80,955		)	(306,534		)
Net decrease in cash and cash equivalents	(329,996		)	(16,460		)	(19,429		)	—			(365,885		)
Cash and cash equivalents at beginning of period	575,193			102,661			43,007			—			720,861
Cash and cash equivalents at end of period	$	245,197		$	86,201		$	23,578		$	—		$	354,976

	Nine Months Ended August 31, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	82,480		$	30,480		$	(9,690	)	$	—		$	103,270
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(9,899		)	(5,255		)	—			(15,154		)
Return of investments in unconsolidated joint ventures	—			3,169			4,990			—			8,159
Purchases of property and equipment, net	(5,875		)	(719		)	(49		)	—			(6,643		)
Intercompany	(43,367		)	—			—			43,367			—
Net cash used in investing activities	(49,242		)	(7,449		)	(314		)	43,367			(13,638		)
Cash flows from financing activities:
Repayment of senior notes	(105,326		)	—			—			—			(105,326		)
Issuance costs for unsecured revolving credit facility	(1,711		)	—			—			—			(1,711		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(92,443		)	—			—			(92,443		)
Issuance of common stock under employee stock plans	20,677			—			—			—			20,677
Payments of cash dividends	(6,479		)	—			—			—			(6,479		)
Tax payments associated with stock-based compensation awards	(2,543		)	—			—			—			(2,543		)
Intercompany	—			51,595			(8,228		)	(43,367		)	—
Net cash used in financing activities	(95,382		)	(40,848		)	(8,228		)	(43,367		)	(187,825		)
Net decrease in cash and cash equivalents	(62,144		)	(17,817		)	(18,232		)	—			(98,193		)
Cash and cash equivalents at beginning of period	463,100			100,439			29,461			—			593,000
Cash and cash equivalents at end of period	$	400,956		$	82,622		$	11,229		$	—		$	494,807