Stockholders' Equity

9 Months Ended

Aug. 31, 2019

A summary of changes in stockholders’ equity is presented below (in thousands):



	Three Months Ended August 31, 2019 and 2018
	Number of Shares
	Common Stock	Grantor Stock Ownership Trust		Treasury Stock		Common Stock		Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Grantor Stock Ownership Trust			Treasury Stock			Total Stockholders’ Equity
Balance at May 31, 2019	120,350	(7,860	)	(24,264	)	$	120,350	$	775,693		$	1,981,795		$	(9,565	)	$	(85,246	)	$	(587,817	)	$	2,195,210
Net income	—	—		—		—		—			68,136			—			—			—			68,136
Dividends on common stock	—	—		—		—		—			(7,897		)	—			—			—			(7,897		)
Employee stock options/other	173	—		—		173		2,094			—			—			—			—			2,267
Stock-based compensation	—	—		—		—		4,513			—			—			—			—			4,513
Balance at August 31, 2019	120,523	(7,860	)	(24,264	)	$	120,523	$	782,300		$	2,042,034		$	(9,565	)	$	(85,246	)	$	(587,817	)	$	2,262,229

Balance at May 31, 2018	118,397	(8,460	)	(22,248	)	$	118,397	$	736,047		$	1,717,248		$	(16,924	)	$	(91,760	)	$	(548,365	)	$	1,914,643
Net income	—	—		—		—		—			87,476			—			—			—			87,476
Dividends on common stock	—	—		—		—		—			(2,186		)	—			—			—			(2,186		)
Employee stock options/other	652	—		—		652		12,010			—			—			—			—			12,662
Stock awards	—	—		47		—		(1,157		)	—			—			—			1,157			—
Stock-based compensation	—	—		—		—		3,354			—			—			—			—			3,354
Balance at August 31, 2018	119,049	(8,460	)	(22,201	)	$	119,049	$	750,254		$	1,802,538		$	(16,924	)	$	(91,760	)	$	(547,208	)	$	2,015,949

	Nine Months Ended August 31, 2019 and 2018
	Number of Shares
	Common Stock	Grantor Stock Ownership Trust		Treasury Stock		Common Stock		Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Grantor Stock Ownership Trust			Treasury Stock			Total Stockholders’ Equity
Balance at November 30, 2018	119,196	(8,157	)	(24,113	)	$	119,196	$	753,570		$	1,897,168		$	(9,565	)	$	(88,472	)	$	(584,397	)	$	2,087,500
Cumulative effect of adoption of ASC 606	—	—		—		—		—			11,610			—			—			—			11,610
Net income	—	—		—		—		—			145,608			—			—			—			145,608
Dividends on common stock	—	—		—		—		—			(12,352		)	—			—			—			(12,352		)
Employee stock options/other	1,271	—		—		1,271		17,458			—			—			—			—			18,729
Stock awards	56	297		(4	)	56		(3,207		)	—			—			3,226			(75		)	—
Stock-based compensation	—	—		—		—		14,479			—			—			—			—			14,479
Tax payments associated with stock-based compensation awards	—	—		(147	)	—		—			—			—			—			(3,345		)	(3,345		)
Balance at August 31, 2019	120,523	(7,860	)	(24,264	)	$	120,523	$	782,300		$	2,042,034		$	(9,565	)	$	(85,246	)	$	(587,817	)	$	2,262,229

Balance at November 30, 2017	117,946	(8,898	)	(22,021	)	$	117,946	$	727,483		$	1,735,695		$	(16,924	)	$	(96,509	)	$	(541,380	)	$	1,926,311
Net income	—	—		—		—		—			73,529			—			—			—			73,529
Dividends on common stock	—	—		—		—		—			(6,686		)	—			—			—			(6,686		)
Employee stock options/other	1,049	—		—		1,049		16,384			—			—			—			—			17,433
Stock awards	54	438		37		54		(5,762		)	—			—			4,749			959			—
Stock-based compensation	—	—		—		—		12,149			—			—			—			—			12,149
Tax payments associated with stock-based compensation awards	—	—		(217	)	—		—			—			—			—			(6,787		)	(6,787		)
Balance at August 31, 2018	119,049	(8,460	)	(22,201	)	$	119,049	$	750,254		$	1,802,538		$	(16,924	)	$	(91,760	)	$	(547,208	)	$	2,015,949

On February 15, 2019, the management development and compensation committee of our board of directors approved the payout of 297,260 shares of our common stock in connection with the vesting of PSUs that were granted to certain employees on October 8, 2015. The shares paid out under the PSUs reflected our achievement of certain performance measures that were based on average return on invested capital, cumulative earnings per share, and revenue growth relative to a peer group

of high-production public homebuilding companies over the three-year period from December 1, 2015 through November 30, 2018. Of the shares of common stock paid out, 147,382 shares or $3.3 million, were purchased by us in the 2019 first quarter to satisfy the recipients’ withholding taxes on the vesting of the PSUs. The shares purchased were not considered repurchases under the authorizations described below.

As of August 31, 2019, we were authorized to repurchase 2,193,947 shares of our common stock under a board of directors approved share repurchase program. We did not repurchase any of our common stock under this program in the nine months ended August 31, 2019.

Unrelated to the share repurchase program, our board of directors authorized in 2014 the repurchase of not more than 680,000 shares of our outstanding common stock, and also authorized potential future grants of up to 680,000 stock payment awards under the KB Home 2014 Equity Incentive Plan (“2014 Plan”), in each case solely as necessary to settle outstanding stock appreciation rights awards granted under our Non-Employee Directors Compensation Plan. As of August 31, 2019, we have not repurchased any shares and no stock payment awards have been granted under the 2014 Plan pursuant to the board of directors authorization.

During the three-month period ended August 31, 2019, our board of directors approved an increase in the quarterly cash dividend on our common stock to $.090 per share from $.025 per share, upon which they declared, and we paid, a quarterly cash dividend at the new higher rate. During the three-month period ended August 31, 2018, our board of directors declared, and we paid, a quarterly cash dividend of $.025 per share of common stock. Quarterly cash dividends declared and paid during the nine-month periods ended August 31, 2019 and 2018 totaled $.140 per share and $.075 per share of common stock, respectively.