Supplemental Guarantor Information (Tables)

6 Months Ended

May 31, 2017

Condensed Consolidated Statements of Operations



	Three Months Ended May 31, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	893,561		$	109,233		$	—		$	1,002,794
Homebuilding:
Revenues	$	—		$	893,561		$	106,511		$	—		$	1,000,072
Construction and land costs	—			(751,172		)	(95,424		)	—			(846,596		)
Selling, general and administrative expenses	(23,322		)	(70,929		)	(9,666		)	—			(103,917		)
Operating income (loss)	(23,322		)	71,460			1,421			—			49,559
Interest income	198			2			2			—			202
Interest expense	(41,693		)	(426		)	(1,225		)	43,344			—
Intercompany interest	75,610			(29,862		)	(2,404		)	(43,344		)	—
Equity in loss of unconsolidated joint ventures	—			(595		)	(1		)	—			(596		)
Homebuilding pretax income (loss)	10,793			40,579			(2,207		)	—			49,165
Financial services pretax income	—			—			2,817			—			2,817
Total pretax income	10,793			40,579			610			—			51,982
Income tax expense	(2,500		)	(17,300		)	(400		)	—			(20,200		)
Equity in net income of subsidiaries	23,489			—			—			(23,489		)	—
Net income	$	31,782		$	23,279		$	210		$	(23,489	)	$	31,782



	Three Months Ended May 31, 2016
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	700,768		$	110,282		$	—		$	811,050
Homebuilding:
Revenues	$	—		$	700,768		$	107,694		$	—		$	808,462
Construction and land costs	—			(586,807		)	(101,907		)	—			(688,714		)
Selling, general and administrative expenses	(18,976		)	(64,010		)	(10,824		)	—			(93,810		)
Operating income (loss)	(18,976		)	49,951			(5,037		)	—			25,938
Interest income	106			24			4			—			134
Interest expense	(44,337		)	(821		)	(1,100		)	44,288			(1,970		)
Intercompany interest	75,719			(27,479		)	(3,952		)	(44,288		)	—
Equity in loss of unconsolidated joint ventures	—			(822		)	(3		)	—			(825		)
Homebuilding pretax income (loss)	12,512			20,853			(10,088		)	—			23,277
Financial services pretax income	—			—			1,520			—			1,520
Total pretax income (loss)	12,512			20,853			(8,568		)	—			24,797
Income tax benefit (expense)	(2,800		)	(8,400		)	2,000			—			(9,200		)
Equity in net income of subsidiaries	5,885			—			—			(5,885		)	—
Net income (loss)	$	15,597		$	12,453		$	(6,568	)	$	(5,885	)	$	15,597



	Six Months Ended May 31, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	1,623,488		$	197,902		$	—		$	1,821,390
Homebuilding:
Revenues	$	—		$	1,623,488		$	192,830		$	—		$	1,816,318
Construction and land costs	—			(1,369,624		)	(175,052		)	—			(1,544,676		)
Selling, general and administrative expenses	(45,589		)	(133,827		)	(17,390		)	—			(196,806		)
Operating income (loss)	(45,589		)	120,037			388			—			74,836
Interest income	395			3			2			—			400
Interest expense	(90,042		)	(994		)	(2,387		)	87,116			(6,307		)
Intercompany interest	149,103			(56,465		)	(5,522		)	(87,116		)	—
Equity in income (loss) of unconsolidated joint ventures	—			136			(1		)	—			135
Homebuilding pretax income (loss)	13,867			62,717			(7,520		)	—			69,064
Financial services pretax income	—			—			4,377			—			4,377
Total pretax income (loss)	13,867			62,717			(3,143		)	—			73,441
Income tax expense	(1,200		)	(26,100		)	(100		)	—			(27,400		)
Equity in net income of subsidiaries	33,374			—			—			(33,374		)	—
Net income (loss)	$	46,041		$	36,617		$	(3,243	)	$	(33,374	)	$	46,041



	Six Months Ended May 31, 2016
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	1,302,111		$	187,310		$	—		$	1,489,421
Homebuilding:
Revenues	$	—		$	1,302,111		$	182,093		$	—		$	1,484,204
Construction and land costs	—			(1,087,771		)	(169,761		)	—			(1,257,532		)
Selling, general and administrative expenses	(43,316		)	(117,474		)	(20,952		)	—			(181,742		)
Operating income (loss)	(43,316		)	96,866			(8,620		)	—			44,930
Interest income	240			42			4			—			286
Interest expense	(88,707		)	(1,641		)	(2,161		)	86,842			(5,667		)
Intercompany interest	149,762			(54,987		)	(7,933		)	(86,842		)	—
Equity in loss of unconsolidated joint ventures	—			(1,425		)	(3		)	—			(1,428		)
Homebuilding pretax income (loss)	17,979			38,855			(18,713		)	—			38,121
Financial services pretax income	—			—			2,703			—			2,703
Total pretax income (loss)	17,979			38,855			(16,010		)	—			40,824
Income tax benefit (expense)	(2,100		)	(12,300		)	2,300			—			(12,100		)
Equity in net income of subsidiaries	12,845			—			—			(12,845		)	—
Net income (loss)	$	28,724		$	26,555		$	(13,710	)	$	(12,845	)	$	28,724

Condensed Consolidated Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)



	May 31, 2017
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	297,258	$	42,386	$	8,944	$	—		$	348,588
Receivables	4,293		145,851		84,568		—			234,712
Inventories	—		3,147,848		340,356		—			3,488,204
Investments in unconsolidated joint ventures	—		61,499		2,501		—			64,000
Deferred tax assets, net	275,558		292,017		144,310		—			711,885
Other assets	88,133		8,498		3,365		—			99,996
	665,242		3,698,099		584,044		—			4,947,385
Financial services	—		—		11,410		—			11,410
Intercompany receivables	3,666,867		—		100,359		(3,767,226		)	—
Investments in subsidiaries	40,811		—		—		(40,811		)	—
Total assets	$	4,372,920	$	3,698,099	$	695,813	$	(3,808,037	)	$	4,958,795
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	129,689	$	329,052	$	216,088	$	—		$	674,829
Notes payable	2,451,564		32,527		26,030		—			2,510,121
	2,581,253		361,579		242,118		—			3,184,950
Financial services	—		—		1,457		—			1,457
Intercompany payables	19,279		3,336,520		411,427		(3,767,226		)	—
Stockholders’ equity	1,772,388		—		40,811		(40,811		)	1,772,388
Total liabilities and stockholders’ equity	$	4,372,920	$	3,698,099	$	695,813	$	(3,808,037	)	$	4,958,795



	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 Consolidated Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)



	Six Months Ended May 31, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	24,724		$	(83,371	)	$	(5,933	)	$	—		$	(64,580	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(5,852		)	(5,253		)	—			(11,105		)
Return of investments in unconsolidated joint ventures	—			1,969			4,989			—			6,958
Purchases of property and equipment, net	(3,724		)	(344		)	(32		)	—			(4,100		)
Intercompany	(77,681		)	—			—			77,681			—
Net cash used in investing activities	(81,405		)	(4,227		)	(296		)	77,681			(8,247		)
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	—			(61,640		)	—			—			(61,640		)
Issuance of common stock under employee stock plans	3,049			—			—			—			3,049
Payments of cash dividends	(4,341		)	—			—			—			(4,341		)
Stock repurchases	(2,543		)	—			—			—			(2,543		)
Intercompany	—			91,185			(13,504		)	(77,681		)	—
Net cash provided by (used in) financing activities	(109,161		)	29,545			(13,504		)	(77,681		)	(170,801		)
Net decrease in cash and cash equivalents	(165,842		)	(58,053		)	(19,733		)	—			(243,628		)
Cash and cash equivalents at beginning of period	463,100			100,439			29,461			—			593,000
Cash and cash equivalents at end of period	$	297,258		$	42,386		$	9,728		$	—		$	349,372



	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		$	(215,372	)	$	41,405		$	—		$	(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	—			209,197			(41,727		)	(167,470		)	—
Net cash provided by (used in) financing activities	(86,068		)	182,558			(41,727		)	(167,470		)	(112,707		)
Net decrease in cash and cash equivalents	(249,467		)	(33,895		)	(430		)	—			(283,792		)
Cash and cash equivalents at beginning of period	444,850			96,741			18,750			—			560,341
Cash and cash equivalents at end of period	$	195,383		$	62,846		$	18,320		$	—		$	276,549