Supplemental Guarantor Information (Tables)

9 Months Ended

Aug. 31, 2019

Guarantees [Abstract]

Condensed Consolidated Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)

	Three Months Ended August 31, 2019
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	1,061,698		$	99,088		$	—		$	1,160,786
Homebuilding:
Revenues	$	—		$	1,061,698		$	95,157		$	—		$	1,156,855
Construction and land costs	—			(859,733		)	(84,021		)	—			(943,754		)
Selling, general and administrative expenses	(23,619		)	(95,376		)	(8,631		)	—			(127,626		)
Operating income (loss)	(23,619		)	106,589			2,505			—			85,475
Interest income	140			20			41			—			201
Interest expense	(34,488		)	(175		)	(1,361		)	36,024			—
Intercompany interest	84,880			(45,826		)	(3,030		)	(36,024		)	—
Equity in loss of unconsolidated joint ventures	—			(384		)	—			—			(384		)
Homebuilding pretax income (loss)	26,913			60,224			(1,845		)	—			85,292
Financial services pretax income	—			—			6,644			—			6,644
Total pretax income	26,913			60,224			4,799			—			91,936
Income tax expense	(6,900		)	(14,900		)	(2,000		)	—			(23,800		)
Equity in net income of subsidiaries	48,123			—			—			(48,123		)	—
Net income	$	68,136		$	45,324		$	2,799		$	(48,123	)	$	68,136

	Three Months Ended August 31, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	1,144,253		$	81,094		$	—		$	1,225,347
Homebuilding:
Revenues	$	—		$	1,144,253		$	77,622		$	—		$	1,221,875
Construction and land costs	—			(927,346		)	(74,163		)	—			(1,001,509		)
Selling, general and administrative expenses	(24,688		)	(81,540		)	(8,525		)	—			(114,753		)
Operating income (loss)	(24,688		)	135,367			(5,066		)	—			105,613
Interest income	380			—			78			—			458
Interest expense	(33,319		)	(669		)	(1,240		)	35,228			—
Intercompany interest	78,519			(40,675		)	(2,616		)	(35,228		)	—
Equity in income of unconsolidated joint ventures	—			3,493			—			—			3,493
Homebuilding pretax income (loss)	20,892			97,516			(8,844		)	—			109,564
Financial services pretax income	—			—			5,112			—			5,112
Total pretax income (loss)	20,892			97,516			(3,732		)	—			114,676
Income tax expense	(3,500		)	(22,700		)	(1,000		)	—			(27,200		)
Equity in net income of subsidiaries	70,084			—			—			(70,084		)	—
Net income (loss)	$	87,476		$	74,816		$	(4,732	)	$	(70,084	)	$	87,476

Condensed Consolidated Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)

	August 31, 2019
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	67,247	$	104,043	$	12,504	$	—		$	183,794
Receivables	2,368		226,063		63,061		—			291,492
Inventories	—		3,623,232		295,844		—			3,919,076
Investments in unconsolidated joint ventures	—		57,168		—		—			57,168
Property and equipment, net	22,732		38,024		3,363		—			64,119
Deferred tax assets, net	71,939		282,066		48,090		—			402,095
Other assets	81,192		2,773		1,550		—			85,515
	245,478		4,333,369		424,412		—			5,003,259
Financial services	—		—		31,911		—			31,911
Intercompany receivables	3,869,512		—		183,833		(4,053,345		)	—
Investments in subsidiaries	159,161		—		—		(159,161		)	—
Total assets	$	4,274,151	$	4,333,369	$	640,156	$	(4,212,506	)	$	5,035,170
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	135,855	$	507,361	$	267,807	$	—		$	911,023
Notes payable	1,818,169		16,856		25,110		—			1,860,135
	1,954,024		524,217		292,917		—			2,771,158
Financial services	—		—		1,783		—			1,783
Intercompany payables	57,898		3,748,931		246,516		(4,053,345		)	—
Stockholders’ equity	2,262,229		60,221		98,940		(159,161		)	2,262,229
Total liabilities and stockholders’ equity	$	4,274,151	$	4,333,369	$	640,156	$	(4,212,506	)	$	5,035,170

	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)

	Nine Months Ended August 31, 2019
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	92,935		$	(335,428	)	$	90,349		$	—		$	(152,144	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(7,656		)	—			—			(7,656		)
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	(4,728		)	(18,252		)	(9,231		)	—			(32,211		)
Intercompany	(274,010		)	—			—			274,010			—
Net cash used in investing activities	(278,738		)	(15,103		)	(9,231		)	274,010			(29,062		)
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	460,000			—			—			—			460,000
Repayments under revolving credit facility	(410,000		)	—			—			—			(410,000		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(32,149		)	—			—			(32,149		)
Issuance of common stock under employee stock plans	18,729			—			—			—			18,729
Tax payments associated with stock-based compensation awards	(3,345		)	—			—			—			(3,345		)
Payments of cash dividends	(12,352		)	—			—			—			(12,352		)
Intercompany	—			372,454			(98,444		)	(274,010		)	—
Net cash provided by (used in) financing activities	(176,927		)	340,305			(98,444		)	(274,010		)	(209,076		)
Net decrease in cash and cash equivalents	(362,730		)	(10,226		)	(17,326		)	—			(390,282		)
Cash and cash equivalents at beginning of period	429,977			114,269			30,873			—			575,119
Cash and cash equivalents at end of period	$	67,247		$	104,043		$	13,547		$	—		$	184,837

	Nine Months Ended August 31, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	50,507		$	(78,593	)	$	(21,422	)	$	—		$	(49,508	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(15,640		)	—			—			(15,640		)
Return of investments in unconsolidated joint ventures	—			9,934			—			—			9,934
Purchases of property and equipment, net	(3,508		)	(520		)	(109		)	—			(4,137		)
Intercompany	(80,955		)	—			—			80,955			—
Net cash used in investing activities	(84,463		)	(6,226		)	(109		)	80,955			(9,843		)
Cash flows from financing activities:
Repayment of senior notes	(300,000		)	—			—			—			(300,000		)
Borrowings under revolving credit facility	70,000			—			—			—			70,000
Repayments under revolving credit facility	(70,000		)	—			—			—			(70,000		)
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	17,433			—			—			—			17,433
Tax payments associated with stock-based compensation awards	(6,787		)	—			—			—			(6,787		)
Payments of cash dividends	(6,686		)	—			—			—			(6,686		)
Intercompany	—			83,560			(2,605		)	(80,955		)	—
Net cash provided by (used in) financing activities	(296,040		)	73,986			(3,525		)	(80,955		)	(306,534		)
Net decrease in cash and cash equivalents	(329,996		)	(10,833		)	(25,056		)	—			(365,885		)
Cash and cash equivalents at beginning of period	575,193			104,120			41,548			—			720,861
Cash and cash equivalents at end of period	$	245,197		$	93,287		$	16,492		$	—		$	354,976