Supplemental Guarantor Information (Tables)

3 Months Ended

Feb. 29, 2020

Guarantees [Abstract]

Condensed Consolidated Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)

	Three Months Ended February 29, 2020
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	992,545		$	83,390		$	—		$	1,075,935
Homebuilding:
Revenues	$	—		$	992,545		$	79,837		$	—		$	1,072,382
Construction and land costs	—			(815,558		)	(70,495		)	—			(886,053		)
Selling, general and administrative expenses	(27,650		)	(93,012		)	(5,472		)	—			(126,134		)
Operating income (loss)	(27,650		)	83,975			3,870			—			60,195
Interest income	884			—			51			—			935
Interest expense	(29,555		)	—			(1,407		)	30,962			—
Intercompany interest	80,580			(45,836		)	(3,782		)	(30,962		)	—
Equity in income of unconsolidated joint ventures	—			1,905			—			—			1,905
Homebuilding pretax income (loss)	24,259			40,044			(1,268		)	—			63,035
Financial services pretax income	—			—			5,813			—			5,813
Total pretax income	24,259			40,044			4,545			—			68,848
Income tax expense	(3,100		)	(5,100		)	(900		)	—			(9,100		)
Equity in net income of subsidiaries	38,589			—			—			(38,589		)	—
Net income	$	59,748		$	34,944		$	3,645		$	(38,589	)	$	59,748

	Three Months Ended February 28, 2019
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Total revenues	$	—		$	744,453		$	67,030		$	—		$	811,483
Homebuilding:
Revenues	$	—		$	744,453		$	64,335		$	—		$	808,788
Construction and land costs	—			(611,041		)	(59,814		)	—			(670,855		)
Selling, general and administrative expenses	(25,382		)	(75,540		)	(5,672		)	—			(106,594		)
Operating income (loss)	(25,382		)	57,872			(1,151		)	—			31,339
Interest income	1,014			—			91			—			1,105
Interest expense	(33,195		)	(321		)	(1,272		)	34,788			—
Intercompany interest	77,972			(41,738		)	(1,446		)	(34,788		)	—
Equity in loss of unconsolidated joint ventures	—			(406		)	—			—			(406		)
Homebuilding pretax income (loss)	20,409			15,407			(3,778		)	—			32,038
Financial services pretax income	—			—			2,473			—			2,473
Total pretax income (loss)	20,409			15,407			(1,305		)	—			34,511
Income tax expense	(700		)	(3,400		)	(400		)	—			(4,500		)
Equity in net income of subsidiaries	10,302			—			—			(10,302		)	—
Net income (loss)	$	30,011		$	12,007		$	(1,705	)	$	(10,302	)	$	30,011

Condensed Consolidated Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)

	February 29, 2020
	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	309,983	$	92,853	$	26,870	$	—		$	429,706
Receivables	44,583		184,288		68,344		—			297,215
Inventories	—		3,391,612		337,004		—			3,728,616
Investments in unconsolidated joint ventures	—		57,147		—		—			57,147
Property and equipment, net	25,185		36,047		3,221		—			64,453
Deferred tax assets, net	93,510		203,661		14,995		—			312,166
Other assets	102,826		19,198		7,695		—			129,719
	576,087		3,984,806		458,129		—			5,019,022
Financial services	—		—		33,812		—			33,812
Intercompany receivables	3,630,262		—		196,703		(3,826,965		)	—
Investments in subsidiaries	162,105		—		—		(162,105		)	—
Total assets	$	4,368,454	$	3,984,806	$	688,644	$	(3,989,070	)	$	5,052,834
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	137,855	$	429,680	$	291,004	$	—		$	858,539
Notes payable	1,716,149		7,889		25,110		—			1,749,148
	1,854,004		437,569		316,114		—			2,607,687
Financial services	—		—		2,043		—			2,043
Intercompany payables	71,346		3,507,195		248,424		(3,826,965		)	—
Stockholders’ equity	2,443,104		40,042		122,063		(162,105		)	2,443,104
Total liabilities and stockholders’ equity	$	4,368,454	$	3,984,806	$	688,644	$	(3,989,070	)	$	5,052,834

	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

Condensed Consolidated Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)

	Three Months Ended February 29, 2020
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	(21,949	)	$	31,705		$	(19,622	)	$	—		$	(9,866	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(1,668		)	—			—			(1,668		)
Return of investments in unconsolidated joint ventures	—			500			—			—			500
Purchases of property and equipment, net	(1,048		)	(4,432		)	(1,191		)	—			(6,671		)
Intercompany	(18,760		)	—			—			18,760			—
Net cash used in investing activities	(19,808		)	(5,600		)	(1,191		)	18,760			(7,839		)
Cash flows from financing activities:
Issuance of common stock under employee stock plans	8,226			—			—			—			8,226
Tax payments associated with stock-based compensation awards	(6,219		)	—			—			—			(6,219		)
Payments of cash dividends	(8,233		)	—			—			—			(8,233		)
Intercompany	—			1,314			17,446			(18,760		)	—
Net cash provided by (used in) financing activities	(6,226		)	1,314			17,446			(18,760		)	(6,226		)
Net increase (decrease) in cash and cash equivalents	(47,983		)	27,419			(3,367		)	—			(23,931		)
Cash and cash equivalents at beginning of period	357,966			65,434			31,458			—			454,858
Cash and cash equivalents at end of period	$	309,983		$	92,853		$	28,091		$	—		$	430,927

	Three Months Ended February 28, 2019
	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	13,062		$	(337,286	)	$	126,014		$	—		$	(198,210	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(2,527		)	—			—			(2,527		)
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	(2,068		)	(2,032		)	(5,925		)	—			(10,025		)
Intercompany	(190,765		)	—			—			190,765			—
Net cash provided by (used in) investing activities	(192,833		)	6,246			(5,925		)	190,765			(1,747		)
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	(230,000		)	—			—			—			(230,000		)
Borrowings under revolving credit facility	140,000			—			—			—			140,000
Repayments under revolving credit facility	(140,000		)	—			—			—			(140,000		)
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	832			—			—			—			832
Tax payments associated with stock-based compensation awards	(3,342		)	—			—			—			(3,342		)
Payments of cash dividends	(2,266		)	—			—			—			(2,266		)
Intercompany	—			325,137			(134,372		)	(190,765		)	—
Net cash provided by (used in) financing activities	165,265			297,117			(134,372		)	(190,765		)	137,245
Net decrease in cash and cash equivalents	(14,506		)	(33,923		)	(14,283		)	—			(62,712		)
Cash and cash equivalents at beginning of period	429,977			114,269			30,873			—			575,119
Cash and cash equivalents at end of period	$	415,471		$	80,346		$	16,590		$	—		$	512,407