Supplemental Guarantor Information (Tables)

6 Months Ended

May 31, 2019

Guarantees [Abstract]

Condensed Consolidated Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)

	Three Months Ended May 31, 2019
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	932,945		$	88,858		$	—		$	1,021,803
Homebuilding:
Revenues	$	—		$	932,945		$	85,726		$	—		$	1,018,671
Construction and land costs	—			(756,055		)	(87,689		)	—			(843,744		)
Selling, general and administrative expenses	(27,506		)	(97,590		)	2,268			—			(122,828		)
Operating income (loss)	(27,506		)	79,300			305			—			52,099
Interest income	395			—			44			—			439
Interest expense	(35,080		)	(134		)	(1,330		)	36,544			—
Intercompany interest	82,238			(42,578		)	(3,116		)	(36,544		)	—
Equity in loss of unconsolidated joint ventures	—			(369		)	—			—			(369		)
Homebuilding pretax income (loss)	20,047			36,219			(4,097		)	—			52,169
Financial services pretax income	—			—			4,592			—			4,592
Total pretax income	20,047			36,219			495			—			56,761
Income tax expense	(2,800		)	(3,000		)	(3,500		)	—			(9,300		)
Equity in net income of subsidiaries	30,214			—			—			(30,214		)	—
Net income (loss)	$	47,461		$	33,219		$	(3,005	)	$	(30,214	)	$	47,461

	Three Months Ended May 31, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	1,026,887		$	74,536		$	—		$	1,101,423
Homebuilding:
Revenues	$	—		$	1,026,887		$	71,786		$	—		$	1,098,673
Construction and land costs	—			(844,637		)	(66,607		)	—			(911,244		)
Selling, general and administrative expenses	(26,815		)	(78,823		)	(7,593		)	—			(113,231		)
Operating income (loss)	(26,815		)	103,427			(2,414		)	—			74,198
Interest income	1,181			4			93			—			1,278
Interest expense	(37,942		)	(634		)	(1,348		)	39,924			—
Intercompany interest	75,277			(32,791		)	(2,562		)	(39,924		)	—
Equity in loss of unconsolidated joint ventures	—			(321		)	(1		)	—			(322		)
Homebuilding pretax income (loss)	11,701			69,685			(6,232		)	—			75,154
Financial services pretax income	—			—			3,154			—			3,154
Total pretax income (loss)	11,701			69,685			(3,078		)	—			78,308
Income tax expense	(2,400		)	(17,700		)	(900		)	—			(21,000		)
Equity in net income of subsidiaries	48,007			—			—			(48,007		)	—
Net income (loss)	$	57,308		$	51,985		$	(3,978	)	$	(48,007	)	$	57,308

Condensed Consolidated Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)

	May 31, 2019
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	94,391	$	71,436	$	13,049	$	—		$	178,876
Receivables	4,192		225,448		70,068		—			299,708
Inventories	—		3,496,318		284,535		—			3,780,853
Investments in unconsolidated joint ventures	—		56,446		—		—			56,446
Property and equipment, net	21,382		36,420		3,419		—			61,221
Deferred tax assets, net	78,039		296,769		49,587		—			424,395
Other assets	82,905		2,889		1,940		—			87,734
	280,909		4,185,726		422,598		—			4,889,233
Financial services	—		—		30,720		—			30,720
Intercompany receivables	3,802,227		—		177,745		(3,979,972		)	—
Investments in subsidiaries	95,776		—		—		(95,776		)	—
Total assets	$	4,178,912	$	4,185,726	$	631,063	$	(4,075,748	)	$	4,919,953
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	114,162	$	484,752	$	269,822	$	—		$	868,736
Notes payable	1,817,428		12,018		25,110		—			1,854,556
	1,931,590		496,770		294,932		—			2,723,292
Financial services	—		—		1,451		—			1,451
Intercompany payables	52,112		3,688,956		238,904		(3,979,972		)	—
Stockholders’ equity	2,195,210		—		95,776		(95,776		)	2,195,210
Total liabilities and stockholders’ equity	$	4,178,912	$	4,185,726	$	631,063	$	(4,075,748	)	$	4,919,953

	November 30, 2018
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	429,977	$	114,269	$	30,113	$	—		$	574,359
Receivables	5,135		198,465		89,230		—			292,830
Inventories	—		3,314,386		268,453		—			3,582,839
Investments in unconsolidated joint ventures	—		61,960		—		—			61,960
Property and equipment, net	18,450		5,523		310		—			24,283
Deferred tax assets, net	84,564		303,669		53,587		—			441,820
Other assets	77,288		4,007		1,805		—			83,100
	615,414		4,002,279		443,498		—			5,061,191
Financial services	—		—		12,380		—			12,380
Intercompany receivables	3,569,422		—		158,760		(3,728,182		)	—
Investments in subsidiaries	67,657		—		—		(67,657		)	—
Total assets	$	4,252,493	$	4,002,279	$	614,638	$	(3,795,839	)	$	5,073,571
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	126,176	$	584,321	$	213,816	$	—		$	924,313
Notes payable	1,995,115		40,038		25,110		—			2,060,263
	2,121,291		624,359		238,926		—			2,984,576
Financial services	—		—		1,495		—			1,495
Intercompany payables	43,702		3,377,920		306,560		(3,728,182		)	—
Stockholders’ equity	2,087,500		—		67,657		(67,657		)	2,087,500
Total liabilities and stockholders’ equity	$	4,252,493	$	4,002,279	$	614,638	$	(3,795,839	)	$	5,073,571

Condensed Consolidated Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)

	Six Months Ended May 31, 2019
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	35,547		$	(308,291	)	$	92,410		$	—		$	(180,334	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(4,245		)	—			—			(4,245		)
Return of investments in unconsolidated joint ventures	—			5,001			—			—			5,001
Proceeds from sale of building	—			5,804			—			—			5,804
Purchases of property and equipment, net	(3,241		)	(11,360		)	(7,663		)	—			(22,264		)
Intercompany	(196,595		)	—			—			196,595			—
Net cash used in investing activities	(199,836		)	(4,800		)	(7,663		)	196,595			(15,704		)
Cash flows from financing activities:
Proceeds from issuance of debt	405,250			—			—			—			405,250
Payment of debt issuance costs	(5,209		)	—			—			—			(5,209		)
Repayment of senior notes	(630,000		)	—			—			—			(630,000		)
Borrowings under revolving credit facility	330,000			—			—			—			330,000
Repayments under revolving credit facility	(280,000		)	—			—			—			(280,000		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(28,020		)	—			—			(28,020		)
Issuance of common stock under employee stock plans	16,462			—			—			—			16,462
Tax payments associated with stock-based compensation awards	(3,345		)	—			—			—			(3,345		)
Payments of cash dividends	(4,455		)	—			—			—			(4,455		)
Intercompany	—			298,278			(101,683		)	(196,595		)	—
Net cash provided by (used in) financing activities	(171,297		)	270,258			(101,683		)	(196,595		)	(199,317		)
Net decrease in cash and cash equivalents	(335,586		)	(42,833		)	(16,936		)	—			(395,355		)
Cash and cash equivalents at beginning of period	429,977			114,269			30,873			—			575,119
Cash and cash equivalents at end of period	$	94,391		$	71,436		$	13,937		$	—		$	179,764

	Six Months Ended May 31, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	18,931		$	(15,092	)	$	(23,208	)	$	—		$	(19,369	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(11,600		)	—			—			(11,600		)
Return of investments in unconsolidated joint ventures	—			1,099			—			—			1,099
Sale (purchases) of property and equipment, net	(3,102		)	(329		)	4			—			(3,427		)
Intercompany	(42,380		)	—			—			42,380			—
Net cash provided by (used in) investing activities	(45,482		)	(10,830		)	4			42,380			(13,928		)
Cash flows from financing activities:
Payments on mortgages and land contracts due to land sellers and other loans	—			(9,574		)	(920		)	—			(10,494		)
Issuance of common stock under employee stock plans	4,771			—			—			—			4,771
Tax payments associated with stock-based compensation awards	(6,787		)	—			—			—			(6,787		)
Payments of cash dividends	(4,500		)	—			—			—			(4,500		)
Intercompany	—			26,807			15,573			(42,380		)	—
Net cash provided by (used in) financing activities	(6,516		)	17,233			14,653			(42,380		)	(17,010		)
Net decrease in cash and cash equivalents	(33,067		)	(8,689		)	(8,551		)	—			(50,307		)
Cash and cash equivalents at beginning of period	575,193			104,120			41,548			—			720,861
Cash and cash equivalents at end of period	$	542,126		$	95,431		$	32,997		$	—		$	670,554