Supplemental Guarantor Information (Tables)

3 Months Ended

Feb. 28, 2017

Condensed Consolidating Statements of Operations (in thousands)



	Three Months Ended February 28, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	729,927		$	88,669		$	—		$	818,596
Homebuilding:
Revenues	$	—		$	729,927		$	86,319		$	—		$	816,246
Construction and land costs	—			(618,452		)	(79,628		)	—			(698,080		)
Selling, general and administrative expenses	(22,267		)	(62,898		)	(7,724		)	—			(92,889		)
Operating income (loss)	(22,267		)	48,577			(1,033		)	—			25,277
Interest income	197			1			—			—			198
Interest expense	(48,349		)	(568		)	(1,162		)	43,772			(6,307		)
Intercompany interest	73,493			(26,603		)	(3,118		)	(43,772		)	—
Equity in income of unconsolidated joint ventures	—			731			—			—			731
Homebuilding pretax income (loss)	3,074			22,138			(5,313		)	—			19,899
Financial services pretax income	—			—			1,560			—			1,560
Total pretax income (loss)	3,074			22,138			(3,753		)	—			21,459
Income tax benefit (expense)	1,300			(8,800		)	300			—			(7,200		)
Equity in net income of subsidiaries	9,885			—			—			(9,885		)	—
Net income (loss)	$	14,259		$	13,338		$	(3,453	)	$	(9,885	)	$	14,259



	Three Months Ended February 29, 2016
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	601,343		$	77,028		$	—		$	678,371
Homebuilding:
Revenues	$	—		$	601,343		$	74,399		$	—		$	675,742
Construction and land costs	—			(500,964		)	(67,854		)	—			(568,818		)
Selling, general and administrative expenses	(24,340		)	(53,464		)	(10,128		)	—			(87,932		)
Operating income (loss)	(24,340		)	46,915			(3,583		)	—			18,992
Interest income	134			18			—			—			152
Interest expense	(44,370		)	(820		)	(1,061		)	42,554			(3,697		)
Intercompany interest	74,043			(27,508		)	(3,981		)	(42,554		)	—
Equity in loss of unconsolidated joint ventures	—			(603		)	—			—			(603		)
Homebuilding pretax income (loss)	5,467			18,002			(8,625		)	—			14,844
Financial services pretax income	—			—			1,183			—			1,183
Total pretax income (loss)	5,467			18,002			(7,442		)	—			16,027
Income tax benefit (expense)	700			(3,900		)	300			—			(2,900		)
Equity in net income of subsidiaries	6,960			—			—			(6,960		)	—
Net income (loss)	$	13,127		$	14,102		$	(7,142	)	$	(6,960	)	$	13,127

Condensed Consolidating Balance Sheets (in thousands)



	February 28, 2017
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	257,656	$	83,677	$	10,547	$	—		$	351,880
Receivables	4,833		143,517		90,008		—			238,358
Inventories	—		3,072,225		351,119		—			3,423,344
Investments in unconsolidated joint ventures	—		62,417		2,499		—			64,916
Deferred tax assets, net	277,977		309,378		144,530		—			731,885
Other assets	85,433		8,728		2,518		—			96,679
	625,899		3,679,942		601,221		—			4,907,062
Financial services	—		—		15,518		—			15,518
Intercompany receivables	3,654,435		—		93,065		(3,747,500		)	—
Investments in subsidiaries	55,813		—		—		(55,813		)	—
Total assets	$	4,336,147	$	3,679,942	$	709,804	$	(3,803,313	)	$	4,922,580
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	134,143	$	327,181	$	219,069	$	—		$	680,393
Notes payable	2,450,026		28,393		26,030		—			2,504,449
	2,584,169		355,574		245,099		—			3,184,842
Financial services	—		—		1,278		—			1,278
Intercompany payables	15,518		3,302,230		429,752		(3,747,500		)	—
Stockholders’ equity	1,736,460		22,138		33,675		(55,813		)	1,736,460
Total liabilities and stockholders’ equity	$	4,336,147	$	3,679,942	$	709,804	$	(3,803,313	)	$	4,922,580



	November 30, 2016
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	463,100	$	100,439	$	28,547	$	—		$	592,086
Receivables	4,807		135,915		90,943		—			231,665
Inventories	—		3,048,132		355,096		—			3,403,228
Investments in unconsolidated joint ventures	—		61,517		2,499		—			64,016
Deferred tax assets, net	276,737		318,077		144,171		—			738,985
Other assets	79,526		9,177		2,442		—			91,145
	824,170		3,673,257		623,698		—			5,121,125
Financial services	—		—		10,499		—			10,499
Intercompany receivables	3,559,012		—		97,062		(3,656,074		)	—
Investments in subsidiaries	35,965		—		—		(35,965		)	—
Total assets	$	4,419,147	$	3,673,257	$	731,259	$	(3,692,039	)	$	5,131,624
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	131,530	$	397,605	$	237,192	$	—		$	766,327
Notes payable	2,548,112		66,927		25,110		—			2,640,149
	2,679,642		464,532		262,302		—			3,406,476
Financial services	—		—		2,003		—			2,003
Intercompany payables	16,360		3,208,725		430,989		(3,656,074		)	—
Stockholders’ equity	1,723,145		—		35,965		(35,965		)	1,723,145
Total liabilities and stockholders’ equity	$	4,419,147	$	3,673,257	$	731,259	$	(3,692,039	)	$	5,131,624

Condensed Consolidating Statements of Cash Flows (in thousands)



	Three Months Ended February 28, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	11,773		$	(71,130	)	$	(17,685	)	$	—		$	(77,042	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(3,500		)	(5,250		)	—			(8,750		)
Return of investments in unconsolidated joint ventures	—			1,107			—			—			1,107
Purchases of property and equipment, net	(892		)	(113		)	(10		)	—			(1,015		)
Intercompany	(106,903		)	—			—			106,903			—
Net cash used in investing activities	(107,795		)	(2,506		)	(5,260		)	106,903			(8,658		)
Cash flows from financing activities:
Repayment of senior notes	(105,326		)	—			—			—			(105,326		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(45,428		)	—			—			(45,428		)
Issuance of common stock under employee stock plans	662			—			—			—			662
Payments of cash dividends	(2,215		)	—			—			—			(2,215		)
Stock repurchases	(2,543		)	—			—			—			(2,543		)
Intercompany	—			102,302			4,601			(106,903		)	—
Net cash provided by (used in) financing activities	(109,422		)	56,874			4,601			(106,903		)	(154,850		)
Net decrease in cash and cash equivalents	(205,444		)	(16,762		)	(18,344		)	—			(240,550		)
Cash and cash equivalents at beginning of period	463,100			100,439			29,461			—			593,000
Cash and cash equivalents at end of period	$	257,656		$	83,677		$	11,117		$	—		$	352,450



	Three Months Ended February 29, 2016
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	13,908		$	(137,158	)	$	(20,063	)	$	—		$	(143,313	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(291		)	—			—			(291		)
Purchases of property and equipment, net	(1,129		)	(265		)	(19		)	—			(1,413		)
Intercompany	(115,459		)	—			—			115,459			—
Net cash used in investing activities	(116,588		)	(556		)	(19		)	115,459			(1,704		)
Cash flows from financing activities:
Change in restricted cash	4,987			—			—			—			4,987
Payments on mortgages and land contracts due to land sellers and other loans	—			(5,659		)	—			—			(5,659		)
Payments of cash dividends	(2,270		)	—			—			—			(2,270		)
Stock repurchases	(87,526		)	—			—			—			(87,526		)
Intercompany	—			104,452			11,007			(115,459		)	—
Net cash provided by (used in) financing activities	(84,809		)	98,793			11,007			(115,459		)	(90,468		)
Net decrease in cash and cash equivalents	(187,489		)	(38,921		)	(9,075		)	—			(235,485		)
Cash and cash equivalents at beginning of period	444,850			96,741			18,750			—			560,341
Cash and cash equivalents at end of period	$	257,361		$	57,820		$	9,675		$	—		$	324,856