Supplemental Guarantor Information (Tables)

3 Months Ended

Feb. 28, 2018



	Three Months Ended February 28, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	775,695		$	95,928		$	—		$	871,623
Homebuilding:
Revenues	$	—		$	775,695		$	93,510		$	—		$	869,205
Construction and land costs	—			(648,119		)	(81,359		)	—			(729,478		)
Selling, general and administrative expenses	(22,166		)	(65,841		)	(7,717		)	—			(95,724		)
Operating income (loss)	(22,166		)	61,735			4,434			—			44,003
Interest income	998			5			—			—			1,003
Interest expense	(37,972		)	(689		)	(1,283		)	39,944			—
Intercompany interest	72,846			(30,499		)	(2,403		)	(39,944		)	—
Equity in loss of unconsolidated joint ventures	—			(845		)	—			—			(845		)
Homebuilding pretax income	13,706			29,707			748			—			44,161
Financial services pretax income	—			—			1,884			—			1,884
Total pretax income	13,706			29,707			2,632			—			46,045
Income tax expense	(44,700		)	(48,100		)	(24,500		)	—			(117,300		)
Equity in net loss of subsidiaries	(40,261		)	—			—			40,261			—
Net loss	$	(71,255	)	$	(18,393	)	$	(21,868	)	$	40,261		$	(71,255	)



	Three Months Ended February 28, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
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

Condensed Consolidating Balance Sheets (in thousands)



	February 28, 2018
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	455,629	$	72,731	$	31,895	$	—		$	560,255
Receivables	4,309		170,217		75,946		—			250,472
Inventories	—		3,100,304		341,270		—			3,441,574
Investments in unconsolidated joint ventures	—		65,672		2,504		—			68,176
Deferred tax assets, net	206,206		195,606		114,757		—			516,569
Other assets	97,950		8,109		2,439		—			108,498
	764,094		3,612,639		568,811		—			4,945,544
Financial services	—		—		11,557		—			11,557
Intercompany receivables	3,461,046		—		120,795		(3,581,841		)	—
Investments in subsidiaries	84,467		—		—		(84,467		)	—
Total assets	$	4,309,607	$	3,612,639	$	701,163	$	(3,666,308	)	$	4,957,101
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	136,816	$	364,322	$	242,774	$	—		$	743,912
Notes payable	2,290,922		43,541		25,107		—			2,359,570
	2,427,738		407,863		267,881		—			3,103,482
Financial services	—		—		897		—			897
Intercompany payables	29,147		3,175,070		377,624		(3,581,841		)	—
Stockholders’ equity	1,852,722		29,706		54,761		(84,467		)	1,852,722
Total liabilities and stockholders’ equity	$	4,309,607	$	3,612,639	$	701,163	$	(3,666,308	)	$	4,957,101



	November 30, 2017
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	575,193	$	102,661	$	42,776	$	—		$	720,630
Receivables	24,815		144,076		75,322		—			244,213
Inventories	—		2,929,466		333,920		—			3,263,386
Investments in unconsolidated joint ventures	—		62,290		2,504		—			64,794
Deferred tax assets, net	250,747		243,523		139,367		—			633,637
Other assets	91,592		8,424		2,482		—			102,498
	942,347		3,490,440		596,371		—			5,029,158
Financial services	—		—		12,357		—			12,357
Intercompany receivables	3,414,237		—		107,992		(3,522,229		)	—
Investments in subsidiaries	49,776		—		—		(49,776		)	—
Total assets	$	4,406,360	$	3,490,440	$	716,720	$	(3,572,005	)	$	5,041,515
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	163,984	$	371,909	$	253,500	$	—		$	789,393
Notes payable	2,289,532		9,283		26,030		—			2,324,845
	2,453,516		381,192		279,530		—			3,114,238
Financial services	—		—		966		—			966
Intercompany payables	26,533		3,109,248		386,448		(3,522,229		)	—
Stockholders’ equity	1,926,311		—		49,776		(49,776		)	1,926,311
Total liabilities and stockholders’ equity	$	4,406,360	$	3,490,440	$	716,720	$	(3,572,005	)	$	5,041,515

Condensed Consolidating Statements of Cash Flows (in thousands)



	Three Months Ended February 28, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	3,066		$	(134,364	)	$	(10,382	)	$	—		$	(141,680	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(8,025		)	—			—			(8,025		)
Return of investments in unconsolidated joint ventures	—			1,099			—			—			1,099
Purchases of property and equipment, net	(1,776		)	(125		)	(23		)	—			(1,924		)
Intercompany	(114,691		)	—			—			114,691			—
Net cash used in investing activities	(116,467		)	(7,051		)	(23		)	114,691			(8,850		)
Cash flows from financing activities:
Payments on mortgages and land contracts due to land sellers and other loans	—			(2,442		)	(920		)	—			(3,362		)
Issuance of common stock under employee stock plans	2,946			—			—			—			2,946
Payments of cash dividends	(2,322		)	—			—			—			(2,322		)
Stock repurchases	(6,787		)	—			—			—			(6,787		)
Intercompany	—			113,927			764			(114,691		)	—
Net cash provided by (used in) financing activities	(6,163		)	111,485			(156		)	(114,691		)	(9,525		)
Net decrease in cash and cash equivalents	(119,564		)	(29,930		)	(10,561		)	—			(160,055		)
Cash and cash equivalents at beginning of period	575,193			102,661			43,007			—			720,861
Cash and cash equivalents at end of period	$	455,629		$	72,731		$	32,446		$	—		$	560,806



	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