Supplemental Guarantor Information (Tables)

12 Months Ended

Nov. 30, 2012

Condensed Consolidated Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(In Thousands)



	Year Ended November 30, 2012
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Revenues	$	—		$	978,064		$	582,051		$	—	$	1,560,115
Homebuilding:
Revenues	$	—		$	978,064		$	570,368		$	—	$	1,548,432
Construction and land costs	—			(844,982		)	(472,547		)	—		(1,317,529		)
Selling, general and administrative expenses	(60,101		)	(119,431		)	(71,627		)	—		(251,159		)
Operating income (loss)	(60,101		)	13,651			26,194			—		(20,256		)
Interest income	480			—			38			—		518
Interest expense	49,686			(78,879		)	(40,611		)	—		(69,804		)
Equity in income (loss) of unconsolidated joint ventures	—			(983		)	589			—		(394		)
Homebuilding pretax loss	(9,935		)	(66,211		)	(13,790		)	—		(89,936		)
Financial services pretax income	—			—			10,883			—		10,883
Total pretax loss	(9,935		)	(66,211		)	(2,907		)	—		(79,053		)
Income tax benefit	2,500			16,900			700			—		20,100
Equity in net loss of subsidiaries	(51,518		)	—			—			51,518		—
Net loss	$	(58,953	)	$	(49,311	)	$	(2,207	)	$	51,518	$	(58,953	)



	Year Ended November 30, 2011
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Revenues	$	—		$	745,965		$	569,901		$	—	$	1,315,866
Homebuilding:
Revenues	$	—		$	745,965		$	559,597		$	—	$	1,305,562
Construction and land costs	—			(638,802		)	(491,183		)	—		(1,129,985		)
Selling, general and administrative expenses	(52,784		)	(93,288		)	(101,814		)	—		(247,886		)
Loss on loan guaranty	—			(30,765		)	—			—		(30,765		)
Operating loss	(52,784		)	(16,890		)	(33,400		)	—		(103,074		)
Interest income	715			36			120			—		871
Interest expense	51,957			(69,309		)	(31,852		)	—		(49,204		)
Equity in loss of unconsolidated joint ventures	—			(55,831		)	(8		)	—		(55,839		)
Homebuilding pretax loss	(112		)	(141,994		)	(65,140		)	—		(207,246		)
Financial services pretax income	—			—			26,078			—		26,078
Total pretax loss	(112		)	(141,994		)	(39,062		)	—		(181,168		)
Income tax benefit	—			1,900			500			—		2,400
Equity in net loss of subsidiaries	(178,656		)	—			—			178,656		—
Net loss	$	(178,768	)	$	(140,094	)	$	(38,562	)	$	178,656	$	(178,768	)



	Year Ended November 30, 2010
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Revenues	$	—		$	429,917		$	1,160,079		$	—	$	1,589,996
Homebuilding:
Revenues	$	—		$	429,917		$	1,151,846		$	—	$	1,581,763
Construction and land costs	—			(360,450		)	(947,838		)	—		(1,308,288		)
Selling, general and administrative expenses	(68,149		)	(48,233		)	(173,138		)	—		(289,520		)
Operating income (loss)	(68,149		)	21,234			30,870			—		(16,045		)
Interest income	1,770			30			298			—		2,098
Interest expense	20,353			(41,686		)	(46,974		)	—		(68,307		)
Equity in loss of unconsolidated joint ventures	—			(186		)	(6,071		)	—		(6,257		)
Homebuilding pretax loss	(46,026		)	(20,608		)	(21,877		)	—		(88,511		)
Financial services pretax income	—			—			12,143			—		12,143
Total pretax loss	(46,026		)	(20,608		)	(9,734		)	—		(76,368		)
Income tax benefit	4,200			1,900			900			—		7,000
Equity in net loss of subsidiaries	(27,542		)	—			—			27,542		—
Net loss	$	(69,368	)	$	(18,708	)	$	(8,834	)	$	27,542	$	(69,368	)

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

(In Thousands)



	November 30, 2012
	KB Home Corporate			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	457,007		$	22,642	$	45,116	$	—		$	524,765
Restricted cash	42,362			—		—		—			42,362
Receivables	121			49,518		15,182		—			64,821
Inventories	—			1,075,011		631,560		—			1,706,571
Investments in unconsolidated joint ventures	—			109,346		14,328		—			123,674
Other assets	85,901			7,491		1,658		—			95,050
	585,391			1,264,008		707,844		—			2,557,243
Financial services	—			—		4,455		—			4,455
Investments in subsidiaries	11,411			—		—		(11,411		)	—
Total assets	$	596,802		$	1,264,008	$	712,299	$	(11,411	)	$	2,561,698
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	134,314		$	147,563	$	177,012	$	—		$	458,889
Mortgages and notes payable	1,645,394			69,596		7,825		—			1,722,815
	1,779,708			217,159		184,837		—			2,181,704
Financial services	—			—		3,188		—			3,188
Intercompany	(1,559,712		)	1,046,849		512,863		—			—
Stockholders’ equity	376,806			—		11,411		(11,411		)	376,806
Total liabilities and stockholders’ equity	$	596,802		$	1,264,008	$	712,299	$	(11,411	)	$	2,561,698



	November 30, 2011
	KB Home Corporate			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	340,957		$	32,876	$	41,217	$	—		$	415,050
Restricted cash	64,475			6		—		—			64,481
Receivables	801			29,250		36,128		—			66,179
Inventories	—			1,256,468		475,161		—			1,731,629
Investments in unconsolidated joint ventures	—			113,921		14,005		—			127,926
Other assets	67,059			730		7,315		—			75,104
	473,292			1,433,251		573,826		—			2,480,369
Financial services	—			—		32,173		—			32,173
Investments in subsidiaries	34,235			—		—		(34,235		)	—
Total assets	$	507,527		$	1,433,251	$	605,999	$	(34,235	)	$	2,512,542
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	121,572		$	181,835	$	175,413	$	—		$	478,820
Mortgages and notes payable	1,533,477			45,925		4,169		—			1,583,571
	1,655,049			227,760		179,582		—			2,062,391
Financial services	—			—		7,494		—			7,494
Intercompany	(1,590,179		)	1,205,491		384,688		—			—
Stockholders’ equity	442,657			—		34,235		(34,235		)	442,657
Total liabilities and stockholders’ equity	$	507,527		$	1,433,251	$	605,999	$	(34,235	)	$	2,512,542

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In Thousands)



	Year Ended November 30, 2012
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net loss	$	(58,953	)	$	(49,311	)	$	(2,207	)	$	51,518		$	(58,953	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity in (income) loss of unconsolidated joint ventures	—			983			(2,780		)	—			(1,797		)
Inventory impairments and land option contract abandonments	—			10,417			18,116			—			28,533
Changes in assets and liabilities:
Receivables	680			(7,716		)	32,030			—			24,994
Inventories	—			(59,875		)	90,222			—			30,347
Accounts payable, accrued expenses and other liabilities	11,281			20,858			(34,282		)	—			(2,143		)
Other, net	6,507			660			6,469			—			13,636
Net cash provided by (used in) operating activities	(40,485		)	(83,984		)	107,568			51,518			34,617
Cash flows from investing activities:
Return of investments in (contributions to) unconsolidated joint ventures	—			1,656			(667		)	—			989
Purchases of property and equipment, net	(175		)	(855		)	(719		)	—			(1,749		)
Net cash provided by (used in) investing activities	(175		)	801			(1,386		)	—			(760		)
Cash flows from financing activities:
Change in restricted cash	22,119			—			—			—			22,119
Proceeds from issuance of senior notes	694,831			—			—			—			694,831
Payment of senior notes issuance costs	(12,445		)	—			—			—			(12,445		)
Repayment of senior notes	(592,645		)	—			—			—			(592,645		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(26,298		)	—			—			(26,298		)
Issuance of common stock under employee stock plans	593			—			—			—			593
Payments of cash dividends	(10,599		)	—			—			—			(10,599		)
Stock repurchases	(1,799		)	—			—			—			(1,799		)
Intercompany	56,655			103,275			(108,412		)	(51,518		)	—
Net cash provided by (used in) financing activities	156,710			76,977			(108,412		)	(51,518		)	73,757
Net increase (decrease) in cash and cash equivalents	116,050			(6,206		)	(2,230		)	—			107,614
Cash and cash equivalents at beginning of year	340,957			28,848			48,269			—			418,074
Cash and cash equivalents at end of year	$	457,007		$	22,642		$	46,039		$	—		$	525,688



	Year Ended November 30, 2011
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net loss	$	(178,768	)	$	(140,094	)	$	(38,562	)	$	178,656		$	(178,768	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in (income) loss/(gain) on wind down of unconsolidated joint ventures	—			55,831			(19,278		)	—			36,553
Loss on loan guaranty	—			30,765			—			—			30,765
Gain on sale of operating property	—			(8,825		)	—			—			(8,825		)
Inventory impairments and land option contract abandonments	—			21,511			4,280			—			25,791
Changes in assets and liabilities:
Receivables	3,404			(9,726		)	4,102			—			(2,220		)
Inventories	—			(40,973		)	28,628			—			(12,345		)
Accounts payable, accrued expenses and other liabilities	(3,035		)	(247,292		)	(3,220		)	—			(253,547		)
Other, net	9,186			4,277			1,588			—			15,051
Net cash used in operating activities	(169,213		)	(334,526		)	(22,462		)	178,656			(347,545		)
Cash flows from investing activities:
Return of investments in (contributions to) unconsolidated joint ventures	—			(77,090		)	9,830			—			(67,260		)
Proceeds from sale of operating property	—			80,600			—			—			80,600
Sales (purchases) of property and equipment, net	(200		)	(202		)	160			—			(242		)
Net cash provided by (used in) investing activities	(200		)	3,308			9,990			—			13,098
Cash flows from financing activities:
Change in restricted cash	24,239			26,757			—			—			50,996
Repayment of senior notes	(100,000		)	—			—			—			(100,000		)
Payments on mortgages and land contracts due to land sellers and other loans	3,397			(87,941		)	(4,917		)	—			(89,461		)
Issuance of common stock under employee stock plans	1,796			—			—			—			1,796
Payments of cash dividends	(19,240		)	—			—			—			(19,240		)
Intercompany	(170,425		)	411,309			(62,228		)	(178,656		)	—
Net cash provided by (used in) financing activities	(260,233		)	350,125			(67,145		)	(178,656		)	(155,909		)
Net increase (decrease) in cash and cash equivalents	(429,646		)	18,907			(79,617		)	—			(490,356		)
Cash and cash equivalents at beginning of year	770,603			13,969			123,858			—			908,430
Cash and cash equivalents at end of year	$	340,957		$	32,876		$	44,241		$	—		$	418,074



	Year Ended November 30, 2010
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net loss	$	(69,368	)	$	(18,708	)	$	(8,834	)	$	27,542		$	(69,368	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity in (income) loss of unconsolidated joint ventures	—			186			(958		)	—			(772		)
Inventory impairments and land option contract abandonments	—			1,980			17,945			—			19,925
Changes in assets and liabilities:
Receivables	187,542			3,557			20,219			—			211,318
Inventories	—			(99,216		)	(30,118		)	—			(129,334		)
Accounts payable, accrued expenses and other liabilities	(16,973		)	(65,878		)	(116,354		)	—			(199,205		)
Other, net	(8,461		)	1,608			40,325			—			33,472
Net cash provided by (used in) operating activities	92,740			(176,471		)	(77,775		)	27,542			(133,964		)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(517		)	(15,152		)	—			(15,669		)
Purchases of property and equipment, net	(229		)	(70		)	(121		)	—			(420		)
Net cash used in investing activities	(229		)	(587		)	(15,273		)	—			(16,089		)
Cash flows from financing activities:
Change in restricted cash	25,578			—			(26,763		)	—			(1,185		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(81,041		)	(20,113		)	—			(101,154		)
Issuance of common stock under employee stock plans	1,851			—			—			—			1,851
Excess tax benefit associated with exercise of stock options	583			—			—			—			583
Payments of cash dividends	(19,223		)	—			—			—			(19,223		)
Stock repurchases	(350		)	—			—			—			(350		)
Intercompany	(325,469		)	217,240			135,771			(27,542		)	—
Net cash provided by (used in) financing activities	(317,030		)	136,199			88,895			(27,542		)	(119,478		)
Net decrease in cash and cash equivalents	(224,519		)	(40,859		)	(4,153		)	—			(269,531		)
Cash and cash equivalents at beginning of year	995,122			44,478			138,361			—			1,177,961
Cash and cash equivalents at end of year	$	770,603		$	3,619		$	134,208		$	—		$	908,430