Supplemental Guarantor Information (Tables)

6 Months Ended

May 31, 2016

Condensed Consolidated Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)



	Six Months Ended May 31, 2016
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	1,305,625		$	183,796		$	—		$	1,489,421
Homebuilding:
Revenues	$	—		$	1,305,625		$	178,579		$	—		$	1,484,204
Construction and land costs	—			(1,092,291		)	(165,241		)	—			(1,257,532		)
Selling, general and administrative expenses	(43,316		)	(116,342		)	(22,084		)	—			(181,742		)
Operating income (loss)	(43,316		)	96,992			(8,746		)	—			44,930
Interest income	240			42			4			—			286
Interest expense	(88,707		)	(3,802		)	—			86,842			(5,667		)
Intercompany interest	149,762			(56,149		)	(6,771		)	(86,842		)	—
Equity in loss of unconsolidated joint ventures	—			(1,425		)	(3		)	—			(1,428		)
Homebuilding pretax income (loss)	17,979			35,658			(15,516		)	—			38,121
Financial services pretax income	—			—			2,703			—			2,703
Total pretax income (loss)	17,979			35,658			(12,813		)	—			40,824
Income tax benefit (expense)	(2,100		)	(11,700		)	1,700			—			(12,100		)
Equity in net income of subsidiaries	12,845			—			—			(12,845		)	—
Net income (loss)	$	28,724		$	23,958		$	(11,113	)	$	(12,845	)	$	28,724



	Six Months Ended May 31, 2015
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	1,052,324		$	150,766		$	—		$	1,203,090
Homebuilding:
Revenues	$	—		$	1,052,324		$	146,368		$	—		$	1,198,692
Construction and land costs	—			(882,949		)	(133,879		)	—			(1,016,828		)
Selling, general and administrative expenses	(35,346		)	(94,290		)	(19,968		)	—			(149,604		)
Operating income (loss)	(35,346		)	75,085			(7,479		)	—			32,260
Interest income	251			4			—			—			255
Interest expense	(91,253		)	(2,949		)	—			80,746			(13,456		)
Intercompany interest	144,184			(55,025		)	(8,413		)	(80,746		)	—
Equity in loss of unconsolidated joint ventures	—			(756		)	(2		)	—			(758		)
Homebuilding pretax income (loss)	17,836			16,359			(15,894		)	—			18,301
Financial services pretax income	—			—			4,871			—			4,871
Total pretax income (loss)	17,836			16,359			(11,023		)	—			23,172
Income tax benefit (expense)	(3,400		)	(4,300		)	1,900			—			(5,800		)
Equity in net income of subsidiaries	2,936			—			—			(2,936		)	—
Net income (loss)	$	17,372		$	12,059		$	(9,123	)	$	(2,936	)	$	17,372



	Three Months Ended May 31, 2016
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	704,282		$	106,768		$	—		$	811,050
Homebuilding:
Revenues	$	—		$	704,282		$	104,180		$	—		$	808,462
Construction and land costs	—			(590,425		)	(98,289		)	—			(688,714		)
Selling, general and administrative expenses	(18,976		)	(63,206		)	(11,628		)	—			(93,810		)
Operating income (loss)	(18,976		)	50,651			(5,737		)	—			25,938
Interest income	106			24			4			—			134
Interest expense	(44,337		)	(1,921		)	—			44,288			(1,970		)
Intercompany interest	75,719			(28,086		)	(3,345		)	(44,288		)	—
Equity in loss of unconsolidated joint ventures	—			(822		)	(3		)	—			(825		)
Homebuilding pretax income (loss)	12,512			19,846			(9,081		)	—			23,277
Financial services pretax income	—			—			1,520			—			1,520
Total pretax income (loss)	12,512			19,846			(7,561		)	—			24,797
Income tax benefit (expense)	(2,800		)	(8,100		)	1,700			—			(9,200		)
Equity in net income of subsidiaries	5,885			—			—			(5,885		)	—
Net income (loss)	$	15,597		$	11,746		$	(5,861	)	$	(5,885	)	$	15,597



	Three Months Ended May 31, 2015
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	541,328		$	81,641		$	—		$	622,969
Homebuilding:
Revenues	$	—		$	541,328		$	79,476		$	—		$	620,804
Construction and land costs	—			(452,616		)	(71,794		)	—			(524,410		)
Selling, general and administrative expenses	(19,674		)	(48,665		)	(10,193		)	—			(78,532		)
Operating income (loss)	(19,674		)	40,047			(2,511		)	—			17,862
Interest income	150			1			1			—			152
Interest expense	(47,710		)	(1,489		)	—			41,081			(8,118		)
Intercompany interest	73,751			(28,388		)	(4,282		)	(41,081		)	—
Equity in loss of unconsolidated joint ventures	—			(409		)	(2		)	—			(411		)
Homebuilding pretax income (loss)	6,517			9,762			(6,794		)	—			9,485
Financial services pretax income	—			—			3,188			—			3,188
Total pretax income (loss)	6,517			9,762			(3,606		)	—			12,673
Income tax benefit (expense)	(1,200		)	(2,500		)	600			—			(3,100		)
Equity in net income of subsidiaries	4,256			—			—			(4,256		)	—
Net income (loss)	$	9,573		$	7,262		$	(3,006	)	$	(4,256	)	$	9,573

Condensed Consolidated Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)



	May 31, 2016
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	195,383	$	64,648	$	14,818	$	—		$	274,849
Restricted cash	3,517		—		—		—			3,517
Receivables	2,828		144,716		3,522		—			151,066
Inventories	—		3,206,733		318,356		—			3,525,089
Investments in unconsolidated joint ventures	—		62,714		2,499		—			65,213
Deferred tax assets, net	188,699		489,471		92,226		—			770,396
Other assets	98,396		11,566		2,828		—			112,790
	488,823		3,979,848		434,249		—			4,902,920
Financial services	—		—		12,923		—			12,923
Intercompany receivables	3,809,514		—		100,819		(3,910,333		)	—
Investments in subsidiaries	38,683		—		—		(38,683		)	—
Total assets	$	4,337,020	$	3,979,848	$	547,991	$	(3,949,016	)	$	4,915,843
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	120,801	$	410,327	$	115,844	$	—		$	646,972
Notes payable	2,565,556		66,571		—		—			2,632,127
	2,686,357		476,898		115,844		—			3,279,099
Financial services	—		—		1,575		—			1,575
Intercompany payables	15,494		3,502,950		391,889		(3,910,333		)	—
Stockholders’ equity	1,635,169		—		38,683		(38,683		)	1,635,169
Total liabilities and stockholders’ equity	$	4,337,020	$	3,979,848	$	547,991	$	(3,949,016	)	$	4,915,843



	November 30, 2015
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	444,850	$	98,281	$	15,911	$	—		$	559,042
Restricted cash	9,344		—		—		—			9,344
Receivables	39		148,338		4,305		—			152,682
Inventories	—		2,979,617		334,130		—			3,313,747
Investments in unconsolidated joint ventures	—		69,057		2,501		—			71,558
Deferred tax assets, net	190,770		501,454		89,972		—			782,196
Other assets	97,590		11,783		3,401		—			112,774
	742,593		3,808,530		450,220		—			5,001,343
Financial services	—		—		14,028		—			14,028
Intercompany receivables	3,627,150		—		102,103		(3,729,253		)	—
Investments in subsidiaries	39,383		—		—		(39,383		)	—
Total assets	$	4,409,126	$	3,808,530	$	566,351	$	(3,768,636	)	$	5,015,371
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	136,352	$	442,529	$	118,303	$	—		$	697,184
Notes payable	2,564,762		60,774		—		—			2,625,536
	2,701,114		503,303		118,303		—			3,322,720
Financial services	—		—		1,817		—			1,817
Intercompany payables	17,178		3,305,227		406,848		(3,729,253		)	—
Stockholders’ equity	1,690,834		—		39,383		(39,383		)	1,690,834
Total liabilities and stockholders’ equity	$	4,409,126	$	3,808,530	$	566,351	$	(3,768,636	)	$	5,015,371

Condensed Consolidated Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)



	Six Months Ended May 31, 2016
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	6,508		$	(179,676	)	$	5,709		$	—		$	(167,459	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(750		)	—			—			(750		)
Purchases of property and equipment, net	(2,437		)	(331		)	(108		)	—			(2,876		)
Intercompany	(167,470		)	—			—			167,470			—
Net cash used in investing activities	(169,907		)	(1,081		)	(108		)	167,470			(3,626		)
Cash flows from financing activities:
Change in restricted cash	5,827			—			—			—			5,827
Payments on mortgages and land contracts due to land sellers and other loans	—			(26,639		)	—			—			(26,639		)
Payments of cash dividends	(4,364		)	—			—			—			(4,364		)
Stock repurchases	(87,531		)	—			—			—			(87,531		)
Intercompany	—			173,763			(6,293		)	(167,470		)	—
Net cash provided by (used in) financing activities	(86,068		)	147,124			(6,293		)	(167,470		)	(112,707		)
Net decrease in cash and cash equivalents	(249,467		)	(33,633		)	(692		)	—			(283,792		)
Cash and cash equivalents at beginning of period	444,850			98,281			17,210			—			560,341
Cash and cash equivalents at end of period	$	195,383		$	64,648		$	16,518		$	—		$	276,549



	Six Months Ended May 31, 2015
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	17,630		$	(119,782	)	$	(33,748	)	$	—		$	(135,900	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(13,244		)	—			—			(13,244		)
Purchases of property and equipment, net	(399		)	(1,135		)	(56		)	—			(1,590		)
Intercompany	(187,947		)	—			—			187,947			—
Net cash used in investing activities	(188,346		)	(14,379		)	(56		)	187,947			(14,834		)
Cash flows from financing activities:
Change in restricted cash	22			—			—			—			22
Proceeds from issuance of debt	250,000			—			—			—			250,000
Payment of debt issuance costs	(3,337		)	—			—			—			(3,337		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(7,757		)	—			—			(7,757		)
Issuance of common stock under employee stock plans	25			—			—			—			25
Payments of cash dividends	(4,599		)	—			—			—			(4,599		)
Stock repurchases	(300		)	—			—			—			(300		)
Intercompany	—			160,114			27,833			(187,947		)	—
Net cash provided by financing activities	241,811			152,357			27,833			(187,947		)	234,054
Net increase (decrease) in cash and cash equivalents	71,095			18,196			(5,971		)	—			83,320
Cash and cash equivalents at beginning of period	303,280			37,112			18,376			—			358,768
Cash and cash equivalents at end of period	$	374,375		$	55,308		$	12,405		$	—		$	442,088