Postretirement Benefits

12 Months Ended

Nov. 30, 2024

Retirement Benefits [Abstract]

Postretirement Benefits

Postretirement Benefits

We have a supplemental non-qualified, unfunded retirement plan, the KB Home Retirement Plan (“Retirement Plan”),

effective as of July 11, 2002, pursuant to which we have offered to pay supplemental pension benefits to certain designated

individuals (consisting of current and former employees) in connection with their retirement.  The Retirement Plan was closed

to new participants in 2004.  We also have an unfunded death benefit plan, the KB Home Death Benefit Only Plan (“DBO

Plan”), implemented on November 1, 2001, for certain designated individuals (consisting of current and former employees). 

The DBO Plan was closed to new participants in 2006.

In connection with these plans and two other minor benefit programs, we have purchased cost recovery life insurance

contracts on the lives of the designated individuals.  The insurance contracts associated with the Retirement Plan and DBO Plan

are held by a trust.  The trust is the owner and beneficiary of such insurance contracts.  The amount of the insurance coverage

under the contracts is designed to provide sufficient funds to cover all costs of the plans if assumptions made as to employment

term, mortality experience, policy earnings and other factors, as applicable, are realized.  The cash surrender value of the

Retirement Plan life insurance contracts was $31.4 million at November 30, 2024 and $33.1 million at November 30, 2023.  We

recognized investment gains on the cash surrender value of the Retirement Plan life insurance contracts of $.8 million in 2024

and $.1 million in 2023, and an investment loss of $3.1 million in 2022.  In 2024, 2023 and 2022, we paid $2.4 million, $2.3

million and $2.0 million, respectively, in benefits under the Retirement Plan to eligible former employees.  The cash surrender

value of the DBO Plan life insurance contracts was $17.3 million at November 30, 2024 and $16.9 million at November 30,

2023.  We recognized investment gains on the cash surrender value of the DBO Plan life insurance contracts of $.5 million in

2024 and $.1 million in 2023, and an investment loss of $1.5 million in 2022.  In 2024 and 2022, we paid $.3 million and $.7

million, respectively, in benefits under the DBO Plan.  We paid no benefits under the DBO Plan in 2023.

The net periodic benefit cost of our Retirement Plan and DBO Plan is included in selling, general and administrative

expenses in our consolidated statements of operations and consisted of the following (in thousands):

	Years Ended November 30,
	2024	2023	2022
Interest cost	$3,042	$2,884	$1,853
Service cost	695	720	1,132
Amortization of net actuarial (gain) loss	(438)	(112)	998
Total	$3,299	$3,492	$3,983

The liabilities related to these plans were $60.8 million at November 30, 2024 and $60.1 million at November 30, 2023,

and are included in accrued expenses and other liabilities in the consolidated balance sheets.  For the years ended November 30,

2024 and 2023, the discount rates we used for the plans were approximately 4.9% and 5.2%, respectively.

Benefit payments under our Retirement Plan and DBO Plan are expected to be paid during each year ending November 30

as follows: 2025 — $3.3 million; 2026 — $3.5 million; 2027 — $4.1 million; 2028 — $4.7 million; 2029 — $4.9 million; and

for the five years ended November 30, 2034 — $23.7 million in the aggregate.