Supplemental Guarantor Information (Tables)

12 Months Ended

Nov. 30, 2019

Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)



	Year Ended November 30, 2019
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	4,161,511		$	391,236		$	—		$	4,552,747
Homebuilding:
Revenues	$	—		$	4,161,511		$	376,147		$	—		$	4,537,658
Construction and land costs	—			(3,362,386		)	(346,542		)	—			(3,708,928		)
Selling, general and administrative expenses	(100,630		)	(375,199		)	(21,521		)	—			(497,350		)
Operating income (loss)	(100,630		)	423,926			8,084			—			331,380
Interest income	1,926			23			209			—			2,158
Interest expense	(137,327		)	(746		)	(5,339		)	143,412			—
Intercompany interest	328,361			(173,374		)	(11,575		)	(143,412		)	—
Equity in loss of unconsolidated joint ventures	—			(1,549		)	—			—			(1,549		)
Loss on early extinguishment of debt	(6,800		)	—			—			—			(6,800		)
Homebuilding pretax income (loss)	85,530			248,280			(8,621		)	—			325,189
Financial services pretax income	—			—			22,986			—			22,986
Total pretax income	85,530			248,280			14,365			—			348,175
Income tax expense	(16,300		)	(58,100		)	(5,000		)	—			(79,400		)
Equity in net income of subsidiaries	88,639			—			—			(88,639		)	—
Net income	$	157,869		$	190,180		$	9,365		$	(88,639	)	$	268,775



	Year Ended November 30, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	4,198,969		$	348,033		$	—		$	4,547,002
Homebuilding:
Revenues	$	—		$	4,198,969		$	334,826		$	—		$	4,533,795
Construction and land costs	—			(3,435,058		)	(308,862		)	—			(3,743,920		)
Selling, general and administrative expenses	(101,152		)	(311,815		)	(31,187		)	—			(444,154		)
Operating income (loss)	(101,152		)	452,096			(5,223		)	—			345,721
Interest income	3,273			11			230			—			3,514
Interest expense	(141,812		)	(2,624		)	(5,262		)	149,698			—
Intercompany interest	302,253			(142,882		)	(9,673		)	(149,698		)	—
Equity in income of unconsolidated joint ventures	—			2,066			—			—			2,066
Homebuilding pretax income (loss)	62,562			308,667			(19,928		)	—			351,301
Financial services pretax income	—			—			16,664			—			16,664
Total pretax income (loss)	62,562			308,667			(3,264		)	—			367,965
Income tax expense	(62,100		)	(101,200		)	(34,300		)	—			(197,600		)
Equity in net income of subsidiaries	169,903			—			—			(169,903		)	—
Net income (loss)	$	170,365		$	207,467		$	(37,564	)	$	(169,903	)	$	170,365



	Year Ended November 30, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	4,034,057		$	334,472		$	—		$	4,368,529
Homebuilding:
Revenues	$	—		$	4,034,057		$	322,208		$	—		$	4,356,265
Construction and land costs	—			(3,342,617		)	(303,851		)	—			(3,646,468		)
Selling, general and administrative expenses	(91,120		)	(298,498		)	(36,776		)	—			(426,394		)
Operating income (loss)	(91,120		)	392,942			(18,419		)	—			283,403
Interest income	1,232			8			—			—			1,240
Interest expense	(166,417		)	(1,635		)	(3,434		)	170,864			(622		)
Intercompany interest	266,784			(118,138		)	22,218			(170,864		)	—
Equity in loss of unconsolidated joint ventures	—			(1,407		)	(2		)	—			(1,409		)
Loss on early extinguishment of debt	(5,685		)	—			—			—			(5,685		)
Homebuilding pretax income	4,794			271,770			363			—			276,927
Financial services pretax income	—			—			13,068			—			13,068
Total pretax income	4,794			271,770			13,431			—			289,995
Income tax expense	(8,800		)	(100,000		)	(600		)	—			(109,400		)
Equity in net income of subsidiaries	184,601			—			—			(184,601		)	—
Net income	$	180,595		$	171,770		$	12,831		$	(184,601	)	$	180,595

Condensed Consolidating Statements of Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income (Loss) (in thousands)



	Year Ended November 30, 2019
	KB Home Corporate			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income	$	157,869		$	190,180	$	9,365		$	(88,639	)	$	268,775
Other comprehensive loss:
Postretirement benefit plan adjustments	(8,138		)	—		—			—			(8,138		)
Other comprehensive loss before tax	(8,138		)	—		—			—			(8,138		)
Income tax benefit related to items of other comprehensive loss	2,197			—		—			—			2,197
Other comprehensive loss, net of tax	(5,941		)	—		—			—			(5,941		)
Comprehensive income	$	151,928		$	190,180	$	9,365		$	(88,639	)	$	262,834

	Year Ended November 30, 2018
	KB Home Corporate			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	170,365		$	207,467	$	(37,564	)	$	(169,903	)	$	170,365
Other comprehensive income:
Postretirement benefit plan adjustments	10,108			—		—			—			10,108
Other comprehensive income before tax	10,108			—		—			—			10,108
Income tax expense related to items of other comprehensive income	(2,749		)	—		—			—			(2,749		)
Other comprehensive income, net of tax	7,359			—		—			—			7,359
Comprehensive income (loss)	$	177,724		$	207,467	$	(37,564	)	$	(169,903	)	$	177,724



	Year Ended November 30, 2017
	KB Home Corporate			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Net income	$	180,595		$	171,770	$	12,831	$	(184,601	)	$	180,595
Other comprehensive loss:
Postretirement benefit plan adjustments	(1,445		)	—		—		—			(1,445		)
Other comprehensive loss before tax	(1,445		)	—		—		—			(1,445		)
Income tax benefit related to items of other comprehensive loss	578			—		—		—			578
Other comprehensive loss, net of tax	(867		)	—		—		—			(867		)
Comprehensive income	$	179,728		$	171,770	$	12,831	$	(184,601	)	$	179,728

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)



	November 30, 2019
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	357,966	$	65,434	$	30,414	$	—		$	453,814
Receivables	1,934		181,047		66,074		—			249,055
Inventories	—		3,400,307		304,295		—			3,704,602
Investments in unconsolidated joint ventures	—		57,038		—		—			57,038
Property and equipment, net	24,250		37,539		3,254		—			65,043
Deferred tax assets, net	96,301		237,877		30,315		—			364,493
Other assets	78,686		2,666		1,689		—			83,041
	559,137		3,981,908		436,041		—			4,977,086
Financial services	—		—		38,396		—			38,396
Intercompany receivables	3,624,081		—		186,022		(3,810,103		)	—
Investments in subsidiaries	115,753		—		—		(115,753		)	—
Total assets	$	4,298,971	$	3,981,908	$	660,459	$	(3,925,856	)	$	5,015,482
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	139,137	$	453,929	$	288,489	$	—		$	881,555
Notes payable	1,715,748		7,889		25,110		—			1,748,747
	1,854,885		461,818		313,599		—			2,630,302
Financial services	—		—		2,058		—			2,058
Intercompany payables	60,964		3,520,090		229,049		(3,810,103		)	—
Stockholders’ equity	2,383,122		—		115,753		(115,753		)	2,383,122
Total liabilities and stockholders’ equity	$	4,298,971	$	3,981,908	$	660,459	$	(3,925,856	)	$	5,015,482



	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		5,522		311		—			24,283
Deferred tax assets, net	84,564		303,669		53,587		—			441,820
Other assets	77,288		4,008		1,804		—			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 Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)



	Year Ended November 30, 2019
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by operating activities	$	118,542		$	32,864		$	99,636		$	—		$	251,042
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(11,290		)	—			—			(11,290		)
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	(6,365		)	(23,618		)	(10,476		)	—			(40,459		)
Intercompany	105,055			—			—			(105,055		)	—
Net cash provided by (used in) investing activities	98,690			(24,103		)	(10,476		)	(105,055		)	(40,944		)
Cash flows from financing activities:
Proceeds from issuance of debt	705,250			—			—			—			705,250
Repayment of senior notes	(986,231		)	—			—			—			(986,231		)
Payment of issuance costs	(11,128		)	—			—			—			(11,128		)
Borrowings under revolving credit facility	610,000			—			—			—			610,000
Repayments under revolving credit facility	(610,000		)	—			—			—			(610,000		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(41,116		)	—			—			(41,116		)
Issuance of common stock under employee stock plans	30,524			—			—			—			30,524
Tax payments associated with stock-based compensation awards	(7,288		)	—			—			—			(7,288		)
Payments of cash dividends	(20,370		)	—			—			—			(20,370		)
Intercompany	—			(16,480		)	(88,575		)	105,055			—
Net cash used in financing activities	(289,243		)	(57,596		)	(88,575		)	105,055			(330,359		)
Net increase (decrease) in cash and cash equivalents	(72,011		)	(48,835		)	585			—			(120,261		)
Cash and cash equivalents at beginning of year	429,977			114,269			30,873			—			575,119
Cash and cash equivalents at end of year	$	357,966		$	65,434		$	31,458		$	—		$	454,858



	Year Ended November 30, 2018
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	236,892		$	9,668		$	(25,048	)	$	—		$	221,512
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(22,672		)	1			—			(22,671		)
Return of investments in unconsolidated joint ventures	—			9,934			—			—			9,934
Purchases of property and equipment, net	(6,584		)	(674		)	(112		)	—			(7,370		)
Intercompany	(43,128		)	—			—			43,128			—
Net cash used in investing activities	(49,712		)	(13,412		)	(111		)	43,128			(20,107		)
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	—			(13,831		)	(920		)	—			(14,751		)
Issuance of common stock under employee stock plans	20,011			—			—			—			20,011
Stock repurchases	(35,039		)	—			—			—			(35,039		)
Tax payments associated with stock-based compensation awards	(8,476		)	—			—			—			(8,476		)
Payments of cash dividends	(8,892		)	—			—			—			(8,892		)
Intercompany	—			27,724			15,404			(43,128		)	—
Net cash provided by (used in) financing activities	(332,396		)	13,893			14,484			(43,128		)	(347,147		)
Net increase (decrease) in cash and cash equivalents	(145,216		)	10,149			(10,675		)	—			(145,742		)
Cash and cash equivalents at beginning of year	575,193			104,120			41,548			—			720,861
Cash and cash equivalents at end of year	$	429,977		$	114,269		$	30,873		$	—		$	575,119



	Year Ended November 30, 2017
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by operating activities	$	70,683		$	366,005		$	76,531		$	—		$	513,219
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(13,569		)	(5,125		)	—			(18,694		)
Return of investments in unconsolidated joint ventures	—			4,119			6,916			—			11,035
Purchases of property and equipment, net	(7,215		)	(809		)	(61		)	—			(8,085		)
Intercompany	311,857			—			—			(311,857		)	—
Net cash provided by (used in) investing activities	304,642			(10,259		)	1,730			(311,857		)	(15,744		)
Cash flows from financing activities:
Repayment of senior notes	(270,326		)	—			—			—			(270,326		)
Payment of issuance costs	(1,711		)	—			—			—			(1,711		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(106,382		)	—			—			(106,382		)
Issuance of common stock under employee stock plans	23,162			—			—			—			23,162
Excess tax benefits from stock-based compensation	958			—			—			—			958
Tax payments associated with stock-based compensation awards	(6,673		)	—			—			—			(6,673		)
Payments of cash dividends	(8,642		)	—			—			—			(8,642		)
Intercompany	—			(251,147		)	(60,710		)	311,857			—
Net cash used in financing activities	(263,232		)	(357,529		)	(60,710		)	311,857			(369,614		)
Net increase (decrease) in cash and cash equivalents	112,093			(1,783		)	17,551			—			127,861
Cash and cash equivalents at beginning of year	463,100			105,903			23,997			—			593,000
Cash and cash equivalents at end of year	$	575,193		$	104,120		$	41,548		$	—		$	720,861