0000795266-20-000060.txt : 20200612 0000795266-20-000060.hdr.sgml : 20200612 20200612171734 ACCESSION NUMBER: 0000795266-20-000060 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20191231 FILED AS OF DATE: 20200612 DATE AS OF CHANGE: 20200612 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KB HOME CENTRAL INDEX KEY: 0000795266 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 953666267 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09195 FILM NUMBER: 20961121 BUSINESS ADDRESS: STREET 1: 10990 WILSHIRE BLVD CITY: LOS ANGELES STATE: CA ZIP: 90024 BUSINESS PHONE: 3102314000 MAIL ADDRESS: STREET 1: 10990 WILSHIRE BLVD CITY: LOS ANGELES STATE: CA ZIP: 90024 FORMER COMPANY: FORMER CONFORMED NAME: KAUFMAN & BROAD HOME CORP DATE OF NAME CHANGE: 19920703 11-K 1 kbh-123119x11xk.htm 11-K Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 11-K


þ
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019

OR

¨
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________
Commission File No. 1-09195

KB HOME 401(k) SAVINGS PLAN

(Full title of the plan)

KB HOME
10990 Wilshire Boulevard
Los Angeles, California 90024

(Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office)














FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
KB Home 401(k) Savings Plan
December 31, 2019 and 2018






KB Home 401(k) Savings Plan
Audited Financial Statements and Supplemental Schedule
As of December 31, 2019 and 2018, and
For the Year Ended December 31, 2019

Contents










Report of Independent Registered Public Accounting Firm


To the Plan Participants and Administrative Committee, as Plan Administrator,
of KB Home 401(k) Savings Plan
Opinion on the Financial Statements    
We have audited the accompanying statements of net assets available for benefits of KB Home 401(k) Savings Plan (the Plan) as of December 31, 2019 and 2018, and the related statement of changes in net assets available for benefits for the year ended December 31, 2019, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2019 and 2018, and the changes in its net assets available for benefits for the year ended December 31, 2019, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Supplemental Schedule
The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2019, has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The information in the supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information reconciles to the financial statements or the underlying

1



accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the information, we evaluated whether such information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.
/s/ Ernst & Young LLP
We have served as the Plan’s auditor since 1991.
Los Angeles, California
June 12, 2020

2



KB Home 401(k) Savings Plan
Statements of Net Assets Available for Benefits


 
December 31,
 
2019
 
2018
Assets
 
 
 
Investments, at fair value
$
255,617,326

 
$
198,775,152

 
 
 
 
Receivables:
 
 
 
Notes receivable from participants
4,367,793

 
4,056,204

Net assets available for benefits
$
259,985,119

 
$
202,831,356


See accompanying notes to financial statements.




3



KB Home 401(k) Savings Plan
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2019


Additions (Deductions)
 
Contributions:
 
Plan participants
$
13,677,770

Employer, net of forfeitures
6,814,150

Rollovers
3,108,678

 
23,600,598

Investment income:
 
Interest and dividends
12,693,521

Net appreciation in fair value of investments
36,529,675

 
49,223,196

 
 
Interest on notes receivable from participants
223,220

Benefits paid to participants
(16,044,255
)
Other, net
151,004

 
 
Net increase in net assets available for benefits
57,153,763

Net assets available for benefits
 
Beginning of year
202,831,356

End of year
$
259,985,119


See accompanying notes to financial statements.



4



KB Home 401(k) Savings Plan
Notes to Financial Statements
1.
Description of the Plan

General

The following description of the KB Home 401(k) Savings Plan (Plan) provides only general information. Eligible employees of KB Home (Company) who elect to participate in the Plan (each, a Participant) should refer to the governing Plan document for a more complete description of the Plan’s provisions.

The Plan is a defined contribution plan in which all eligible employees of the Company may participate beginning on the first day of the month following their date of hire. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).

Contributions

Each Participant may contribute up to 25% of their annual eligible compensation on a pretax basis and/or into a designated Roth 401(k) account on an after-tax basis. Participants may also contribute up to an additional 15% of their annual eligible compensation on an after-tax basis. All contributions are made in whole percentages through payroll deductions. Pretax contributions are eligible for tax deferred treatment, and each Participant may make aggregate annual pretax and after-tax contributions, up to the applicable limits provided by the Internal Revenue Code (Code).

Each Participant whose designated per payroll period contribution rate is at least 6%, who has attained (or will attain) age 50 before the close of a Plan year and whose contributions for the Plan year will exceed the limits of Code Section 402(g) or other Plan limits, is eligible to make a catch-up contribution in accordance with, and subject to the limitations of, Code Section 414(v). Catch-up contributions may be made as pre-tax contributions, Roth contributions or a combination of these types of contributions.

Unless otherwise determined by its Board of Directors, the Company matches 100% of a Participant’s pretax and/or after-tax Roth 401(k) account contributions up to 6% of eligible compensation for that payroll period (for Participants who are sales representatives, the Company matches 100% of pretax and/or after-tax Roth 401(k) account contributions up to 6% of eligible compensation for that payroll period on up to $50,000 of such eligible compensation per year).

The Plan accepts rollover contributions from other qualified retirement plans or individual retirement accounts, subject to the applicable provisions of the Plan. In addition, Participants may directly convert all or a portion of their existing Plan account balances, as well as make rollover contributions from other qualified retirement plans or individual retirement accounts, into a designated Roth 401(k) account, subject to the applicable provisions of the Plan. Participants are responsible for paying applicable taxes on such conversions or rollover contributions.

Plan assets are held in trust by Fidelity Management Trust Company, Inc. (Trustee). Participants may direct the investment of their contributions among one or more of the several options offered under the Plan, and may elect to change the investment of their contributions or to transfer all or part of their individual Plan account balances among such options, subject in each case to applicable conditions and limitations established under the Plan. Contributions made by a Participant who does not make any investment elections are directed

5


to an investment option under the Plan that offers an adjustable asset allocation designed for a target retirement date (Target Date Funds) closest to the year in which the Participant turns (or turned) age 65.

A Participant can invest no more than 20% of new Plan contributions in the KB Home Stock Fund (as described below), and cannot transfer funds from another Plan investment option into the KB Home Stock Fund if the transfer would cause the proportionate value of the Participant’s overall Plan account balance that is invested in the KB Home Stock Fund to exceed 20%.

Participant Accounts

Each Participant’s account is credited with the participant’s contributions, applicable Company matching contributions, and investment earnings. Certain administrative expenses arising from a Participant’s individual investment elections or transactions under the Plan are charged to the individual Participant’s account.

Vesting

Participants are immediately vested in their contributions and the earnings thereon. Subject to applicable Internal Revenue Service (IRS) rules and regulations, Company matching contributions and the earnings thereon are 100% vested to Participants after five years of service, as defined in the Plan.

Target Date Funds

The Plan offers 13 Target Date Funds with a range of designated target dates up to 2065 that are managed by an affiliate of the Trustee and are mutual funds that allocate investments across a combination of equity, fixed income and short-term mutual funds. The Target Date Fund manager adjusts the asset allocation within each of these investment options over their designated timeframe, as applicable, with the allocation generally becoming more conservative as a relevant target date approaches by reducing equity mutual fund holdings.

KB Home Stock Fund

The Plan offers a real-time traded employer stock fund (KB Home Stock Fund). Participant Plan account balances in the KB Home Stock Fund represent investments in shares of the Company’s common stock. Participant contributions to, and transactions in, the KB Home Stock Fund are direct investments and transactions in shares of the Company’s common stock. Investments in the KB Home Stock Fund are valued at the then-current market price per share.

Participant-Directed Brokerage Account

The Plan offers a Participant-directed brokerage account as an investment option. If elected, a Participant-directed brokerage account, which is administered by an affiliate of the Trustee, allows a Participant to direct the investment of the Participant’s contributions to the Plan among various mutual fund options offered by such affiliate, including mutual funds that are not otherwise offered as investment options under the Plan, subject to certain minimum investment and withdrawal requirements and an overall investment limit of not more than 50% of the value of the Participant’s overall Plan account balance. Participant-directed brokerage accounts are not monitored or managed by the Company or the Plan.


6


Stable Value Fund

The Plan offers a stable value investment option (Stable Value Fund), which is intended to provide a stable return on investment and protection of principal from changes in market interest rates. The Stable Value Fund is a collective investment trust that invests in a group annuity contract (which has underlying investments in various guaranteed investment contracts, synthetic guaranteed investment contracts and securities) issued by the fund provider. Participant withdrawals from the Stable Value Fund are generally transacted at the fund’s per-share net asset value (NAV). Certain events prompting a withdrawal from the Stable Value Fund may be transacted at the fair value of its underlying investments, which may be less than the NAV. Participants are generally prohibited from transferring their respective balances (in whole or in any part) in the Stable Value Fund directly into other Plan investment options that are considered to be competing investment options. Instead, Participants must first transfer such balances into a non-competing Plan investment option for 90 days before transferring such balances into a competing Plan investment option. There were no unfunded commitments as of December 31, 2019.

Notes Receivable from Participants

Subject to the provisions of the Plan, a Participant may borrow up to 50% of the vested balance in the Participant’s Plan account not to exceed $50,000 in any one-year period. The minimum amount of any such loan is $1,000. Loans must be repaid within five years unless a loan is used to purchase a Participant’s principal residence, in which case the loan must be repaid within 15 years. The loans are secured by the vested balance in the borrowing Participant’s Plan account and bear interest at the prime rate plus 1% as of the last day of the preceding calendar quarter in which the loan was made. Loans are generally repaid through payroll deductions. Loans not repaid within the timeframe specified by the Plan are considered to be in default and treated as a distribution to the Participant.

Distributions and Withdrawals

Participants (or their beneficiaries) are generally eligible to receive distributions of their account balances upon the earlier of reaching 59 ½ years of age, death or termination of service, as defined in the Plan. In addition, Participants who terminate their service with the Company may elect to withdraw or rollover their account balances comprised of contributions, vested Company matching contributions and related earnings thereon. Vested Plan account balances totaling $1,000 or less will be distributed as a lump-sum payment, and vested Plan account balances totaling more than $1,000, but less than $5,000 will be rolled into an individual retirement account. Such distributions or rollovers may be processed without a formerly employed Participant’s consent. Vested Plan account balances totaling $5,000 or more may be kept in the Plan. Participants may take hardship or in-service withdrawals from their Plan account balances subject to the limitations and requirements of the Plan. Participants must pay any outstanding loans under the Plan in full upon their termination of service with the Company.

Forfeitures

Unvested Company matching contributions for formerly employed Participants are forfeited and used by the Company in the following order: a) to restore the employer match and profit-sharing subaccounts of former Participants, if any; b) to reduce matching contributions for the Plan year allocated to the Participants’ employer match subaccounts in the same manner as matching contributions are allocated for the Plan year; c) to add to the profit-sharing contributions for the Plan year, if any; and d) to pay expenses of the Plan. For the Plan year ended December 31, 2019, the Company used $560,329 of forfeitures to offset matching contributions. The

7


forfeiture balances available to offset future matching contributions were $1,639 and $915 at December 31, 2019 and 2018, respectively.

Other, net

Generally, certain administrative expenses of the Plan, such as recordkeeping fees, are paid directly by the Company, while expenses arising from Participants’ individual investment elections or transactions under the Plan are charged to the applicable Participants’ accounts, as discussed above. Under the trust agreement between the Trustee and the Company, the Trustee deposits revenue-sharing credits generated from arrangements between an affiliate of the Trustee and investment managers of certain Plan investment options into a revenue credit account (RCA). Credits in the RCA are used to offset ERISA-qualified administrative expenses of the Plan that would otherwise be paid directly by the Company and may be allocated to Participant accounts to offset Participant expenses under the Plan. At December 31, 2019 and 2018, the RCA had a total balance of $360,951 and $171,736, respectively, including interest. For the year ended December 31, 2019, no credits in the RCA were allocated to Participant accounts.

Other, net for the year ended December 31, 2019 reflected $361,276 of revenue-sharing credits generated, partly offset by $185,302 of ERISA-qualified administrative expenses primarily paid through RCA credits and $24,970 of expenses charged to Participants’ accounts.

Plan Termination

As of the date of this report, the Company expects and intends to continue the Plan, but it reserves the right to amend, suspend or terminate the Plan (in whole or in part) at any time. In the event of Plan termination, the Plan account balances of the individuals who are Participants at that time, if not already so, shall become 100% vested and not subject to forfeiture.
2.
Summary of Significant Accounting Policies

Basis of Accounting

The Plan’s financial statements are prepared on the accrual basis of accounting.

The financial statements are based on information provided to Plan management by the Trustee. Certain adjustments have been made to the information provided by the Trustee in order for the financial statements to conform to the accrual basis of accounting and U.S. generally accepted accounting principles (GAAP).

Use of Estimates

The preparation of financial statements in conformity with GAAP requires Plan management to make informed estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Investment Valuation and Income Recognition

Investments held by the Plan are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The NAV per share used as a practical expedient for determining the fair value of the Stable Value Fund

8


is based on the value of the Stable Value Fund’s underlying investments, minus its liabilities, divided by the number of shares outstanding.

Purchases and sales of securities are recorded on a trade-date basis. Investment income (loss) is recorded as earned (incurred). Dividends are recorded on the ex-dividend date. The Plan’s net appreciation in the fair value of investments consists of realized gains and losses on investments that were bought and sold during the year, as well as unrealized appreciation (depreciation) of the investments held at the end of the year.

Notes Receivable from Participants

Notes receivable from Participants represent Participant loans that are recorded at their unpaid principal balance plus accrued but unpaid interest, if any. Interest income on notes receivable from Participants is recorded when earned.

Distributions

Distributions of Plan benefits to Participants who withdraw from the Plan are recorded when distributed.
3.
Fair Value Measurements

The fair value measurements of assets and liabilities are categorized based on the following hierarchy:

Level 1
Fair value determined based on quoted prices in active markets for identical assets or liabilities.

Level 2
Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means.

Level 3
Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.

The mutual funds and money market fund offered under the Plan as investment options are registered with the U.S. Securities and Exchange Commission (SEC) and valued at their daily closing price. As described in Note 1 – Description of the Plan, the Participant-directed brokerage account represents investments among various mutual fund options, including mutual funds that are not otherwise offered as investment options under the Plan. The KB Home Stock Fund represents investments in shares of the Company’s common stock.

The following table presents the Plan’s fair value hierarchy and its financial assets measured at fair value on a recurring basis as of December 31, 2019 and 2018:


9


 
 
Fair Value Hierarchy
 
December 31,
Description
 
 
2019
 
2018
Mutual funds
 
 
 
 
 
 
Target Date Funds
 
Level 1
 
$
168,376,530

 
$
136,273,369

Domestic Funds
 
Level 1
 
49,477,753

 
34,123,611

Bond Funds
 
Level 1
 
7,428,426

 
4,902,674

International Funds
 
Level 1
 
5,346,136

 
3,535,430

KB Home Stock Fund
 
Level 1
 
13,080,115

 
8,799,172

Money market fund
 
Level 1
 
8,126,718

 
7,542,927

Participant-directed brokerage account investments
 
Level 1
 
1,196,838

 
1,193,019

 
 
 
 
253,032,516

 
196,370,202

Stable Value Fund, at net asset value
 
 
 
2,584,810

 
2,404,950

Investments, at fair value
 
 
 
$
255,617,326

 
$
198,775,152


The fair values of the mutual funds, the KB Home Stock Fund, money market fund, and Participant-directed brokerage account investments are determined based on quoted market prices in active markets and considered Level 1 assets under the above hierarchy as of December 31, 2019 and 2018. The fair value of the Stable Value Fund is measured using the NAV per share practical expedient and has not been categorized in the fair value hierarchy. The fair value amounts presented in the table above are intended to reconcile the fair value hierarchy table to the amounts presented in the accompanying Statements of Net Assets Available for Benefits.
4.
Risks and Uncertainties

The Plan’s concentrations of credit and market risk are dictated by its terms, as well as by ERISA, and the investments directed by individual Participants in various mutual funds and other securities. These investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect Participants’ individual Plan account balances and the amounts reported in the Plan’s financial statements.
5.
Tax Status of the Plan

The Plan received a determination letter from the IRS dated March 24, 2014 stating that the Plan is qualified under Code Section 401(a) and, therefore, the related trust is exempt from taxation. The Plan was amended subsequent to this determination letter from the IRS. Once qualified, the Plan is required to operate in conformity with the Code to maintain its status. The Plan administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, that the Plan, as amended, is qualified and the related trust is tax-exempt.

GAAP requires Plan management to evaluate uncertain tax positions taken by the Plan and recognize a tax liability if Plan management believes it is more likely than not that the Plan has taken a position that, based on the technical merits, would not be sustained upon examination by the IRS. Plan management has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2019 and 2018, there were no

10


uncertain positions taken or expected to be taken. The Plan is subject to routine audits by taxing jurisdictions; however, there are no audits for any tax periods in progress.
6.
Related Party and Party-in-Interest Transactions

Investments held by the Plan include shares of mutual funds managed by an affiliate of the Trustee. The Trustee acts as a trustee for only those investments held by the Plan. An investment option under the Plan includes the Company’s common stock. The transactions associated with these investments qualify as exempt party-in-interest transactions under ERISA.
7.
Subsequent Events

On March 11, 2020, the World Health Organization characterized the outbreak of the coronavirus disease known as COVID-19 as a global pandemic and recommended containment and mitigation measures. The deadliness of COVID-19, uncertainty about its prevalence and possible treatment, and the prolonged nature of the responsive actions taken by public health and governmental authorities to contain and combat the outbreak have negatively impacted the global economy and created volatility in financial markets. Because the values of the Plan’s individual investment options have and will fluctuate in response to changing market conditions, the COVID-19 pandemic’s impact on the Plan’s financial statements in future periods, if any, cannot be estimated at this time.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to provide economic and other relief as a result of the COVID-19 pandemic. Certain provisions of the CARES Act allow for temporary waivers of retirement plan rules related to required distributions, early withdrawals and loans. The extent to which Plan participants will use the particular CARES Act provisions that the Plan has adopted, if at all, is currently unknown; therefore, the impact on the Plan’s financial statements cannot be estimated as of the date of this report.



11











Supplemental Schedule







12



KB Home 401(k) Savings Plan
EIN: 95-3666267 Plan Number: 001
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year)
December 31, 2019
Identity of Issuer,
Borrower, Lessor,
or Similar Party
Description of Investment Including
Maturity Date, Rate of Interest,
Collateral, Par, or Maturity Value
Shares/
Units
Cost
Current
Value
 
 
 
 
 
American Beacon Advisors
American Beacon International Equity Fund Institutional Class
16,877.179
**
$
311,553

American Beacon Advisors
American Beacon Small Cap Value Fund Class Institutional
58,177.613
**
1,415,461

Dimensional Fund Advisors
DFA Emerging Markets Core Equity Portfolio Institutional Class
63,907.990
**
1,391,277

Dimensional Fund Advisors
DFA Five-Year Global Fixed Income Portfolio Institutional Class
72,878.458
**
781,986

Dimensional Fund Advisors
DFA International Small Company Portfolio Institutional Class
32,861.168
**
621,076

Dimensional Fund Advisors
DFA US Large Cap Value Portfolio Institutional Class
135,006.570
**
5,222,054

Dimensional Fund Advisors
DFA US Small Cap Portfolio Institutional Class
103,483.429
**
3,625,025

Fidelity Investments*
Fidelity 500 Index Fund
119,805.204
**
13,420,579

Fidelity Investments*
Fidelity BrokerageLink
242,720.891
**
1,196,838

Fidelity Investments*
Fidelity Contrafund – Class K
1,547,597.991
**
21,248,521

Fidelity Investments*
Fidelity Extended Market Index Fund
69,843.490
**
4,546,113

Fidelity Investments*
Fidelity International Index Fund
70,349.861
**
3,022,230

Fidelity Investments*
Fidelity Freedom Income Fund – Class K
65,358.517
**
764,695

Fidelity Investments*
Fidelity Freedom 2010 Fund – Class K
136,700.786
**
2,131,165

Fidelity Investments*
Fidelity Freedom 2015 Fund – Class K
304,966.107
**
3,921,864

Fidelity Investments*
Fidelity Freedom 2020 Fund – Class K
950,235.071
**
15,393,808

Fidelity Investments*
Fidelity Freedom 2025 Fund – Class K
2,223,304.158
**
31,793,249

Fidelity Investments*
Fidelity Freedom 2030 Fund – Class K
1,808,178.511
**
32,185,578

Fidelity Investments*
Fidelity Freedom 2035 Fund – Class K
1,909,683.202
**
28,778,926

Fidelity Investments*
Fidelity Freedom 2040 Fund – Class K
2,363,048.235
**
25,001,050

Fidelity Investments*
Fidelity Freedom 2045 Fund – Class K
1,523,314.718
**
18,310,243

Fidelity Investments*
Fidelity Freedom 2050 Fund – Class K
493,846.017
**
5,975,537

Fidelity Investments*
Fidelity Freedom 2055 Fund – Class K
266,841.816
**
3,685,086

Fidelity Investments*
Fidelity Freedom 2060 Fund – Class K
34,881.856
**
433,581

Fidelity Investments*
Fidelity Freedom 2065 Fund – Class K
162.623
**
1,748

Fidelity Investments*
Fidelity Government Money Market Fund
8,126,717.810
**
8,126,718

Fidelity Investments*
Fidelity US Bond Index Fund
186,013.831
**
2,215,425

Metropolitan West Asset Management
Metropolitan West Total Return Bond Fund Class I
277,367.046
**
3,031,622

Reliance Trust Company
Reliance Trust New York Life Anchor Account Series I Class 0
4,560.518
**
2,584,810

Vanguard Group
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares
56,678.552
**
1,399,393

KB Home*
KB Home Stock Fund
381,626.802
**
13,080,115

Notes receivable from
Participants*
Individual notes receivable from Participants with interest rates ranging from 4.25% to 9.25% and maturity dates through 2034
 
 
4,367,793

Total
 
 
 
$
259,985,119

*
Party-in-interest to the Plan.
**
Participant-directed investments, cost information omitted.

13



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.




 
 
 
 
KB Home 401(k) Savings Plan
By: KB Home
Plan Administrator
 
 
 
 
 
Dated:
June 12, 2020
 
By: /s/ WILLIAM R. HOLLINGER
 
 
 
 
William R. Hollinger
 
 
 
 
Senior Vice President and Chief Accounting Officer








14



INDEX OF EXHIBITS



Exhibit No.
 
Description
 
Sequentially Numbered Page
 
 
 
 
 
23.1
 
 
 
 
 
 
 
 
 
 
 
 






15
EX-23.1 2 a11k123119-exh231.htm EXHIBIT 23.1 Exhibit



Exhibit 23.1






Consent of Independent Registered Public Accounting Firm


We consent to the incorporation by reference in the Registration Statements (Form S-8 Nos. 333-129273, 333-168179, 333-197521 and 333-212521) pertaining to the 401(k) Savings Plan of KB Home of our report dated June 12, 2020, with respect to the financial statements and schedule of the KB Home 401(k) Savings Plan included in this Annual Report (Form 11-K) for the year ended December 31, 2019.




/s/ Ernst & Young LLP

Los Angeles, California
June 12, 2020


16