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Supplemental Guarantor Information | 3 Months Ended
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Feb. 29, 2012
Supplemental Guarantor Information [Abstract] |
Supplemental Guarantor Information |
19. |  | Supplemental Guarantor Information
The Company’s obligations to pay principal, premium, if any, and interest under its senior notes are guaranteed on a joint and several basis by the Guarantor Subsidiaries. The guarantees are full and unconditional and the Guarantor Subsidiaries are 100% owned by the Company. The Company has determined that separate, full financial statements of the Guarantor Subsidiaries would not be material to investors and, accordingly, supplemental financial information for the Guarantor Subsidiaries is presented. The supplemental financial information for the periods presented below reflects the relevant subsidiaries of the Company that were Guarantor Subsidiaries as of and for the respective periods then ended. Accordingly, information for any period presented does not reflect subsequent changes, if any, in the subsidiaries of the Company considered to be Guarantor Subsidiaries. Condensed Consolidated Statements of Operations Three Months Ended February 29, 2012 (in thousands)
|  | KB Home Corporate |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Consolidating Adjustments |  |  | Total |
Revenues |  | $ | — |  |  | $ | 146,489 |  |  | $ | 108,069 |  |  | $ | — |  |  | $ | 254,558 |
Homebuilding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | — |  |  | $ | 146,489 |  |  | $ | 105,406 |  |  | $ | — |  |  | $ | 251,895 |
Construction and land costs |  |  | — |  |  |  | (134,982 | ) |  |  | (92,376 | ) |  |  | — |  |  |  | (227,358 | )
Selling, general and administrative expenses |  |  | (14,000 | ) |  |  | (21,172 | ) |  |  | (20,514 | ) |  |  | — |  |  |  | (55,686 | )
Operating loss |  |  | (14,000 | ) |  |  | (9,665 | ) |  |  | (7,484 | ) |  |  | — |  |  |  | (31,149 | )
Interest income |  |  | 125 |  |  |  | 1 |  |  |  | 9 |  |  |  | — |  |  |  | 135 |
Interest expense |  |  | 14,120 |  |  |  | (23,882 | ) |  |  | (6,524 | ) |  |  | — |  |  |  | (16,286 | )
Equity in loss of unconsolidated joint ventures |  |  | — |  |  |  | (51 | ) |  |  | (21 | ) |  |  | — |  |  |  | (72 | )
Homebuilding pretax income (loss) |  |  | 245 |  |  |  | (33,597 | ) |  |  | (14,020 | ) |  |  | — |  |  |  | (47,372 | )
Financial services pretax income |  |  | — |  |  |  | — |  |  |  | 1,970 |  |  |  | — |  |  |  | 1,970 |
Total pretax income (loss) |  |  | 245 |  |  |  | (33,597 | ) |  |  | (12,050 | ) |  |  | — |  |  |  | (45,402 | )
Income tax expense |  |  | — |  |  |  | (300 | ) |  |  | (100 | ) |  |  | — |  |  |  | (400 | )
Equity in net loss of subsidiaries |  |  | (46,047 | ) |  |  | — |  |  |  | — |  |  |  | 46,047 |  |  |  | — |
Net loss |  | $ | (45,802 | ) |  | $ | (33,897 | ) |  | $ | (12,150 | ) |  | $ | 46,047 |  |  | $ | (45,802 | )
Three Months Ended February 28, 2011 (in thousands) |
|  | KB Home Corporate |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Consolidating Adjustments |  |  | Total |
Revenues |  | $ | — |  |  | $ | 49,207 |  |  | $ | 147,733 |  |  | $ | — |  |  | $ | 196,940 |
Homebuilding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | — |  |  | $ | 49,207 |  |  | $ | 146,094 |  |  | $ | — |  |  | $ | 195,301 |
Construction and land costs |  |  | — |  |  |  | (46,577 | ) |  |  | (124,219 | ) |  |  | — |  |  |  | (170,796 | )
Selling, general and administrative expenses |  |  | (18,670 | ) |  |  | 1,125 |  |  |  | (32,060 | ) |  |  | — |  |  |  | (49,605 | )
Loss on loan guaranty |  |  | — |  |  |  | — |  |  |  | (22,758 | ) |  |  | — |  |  |  | (22,758 | )
Operating income (loss) |  |  | (18,670 | ) |  |  | 3,755 |  |  |  | (32,943 | ) |  |  | — |  |  |  | (47,858 | )
Interest income |  |  | 313 |  |  |  | 4 |  |  |  | 66 |  |  |  | — |  |  |  | 383 |
Interest expense |  |  | 9,850 |  |  |  | (8,307 | ) |  |  | (12,982 | ) |  |  | — |  |  |  | (11,439 | )
Equity in loss of unconsolidated joint ventures |  |  | — |  |  |  | (43 | ) |  |  | (55,794 | ) |  |  | — |  |  |  | (55,837 | )
Homebuilding pretax loss |  |  | (8,507 | ) |  |  | (4,591 | ) |  |  | (101,653 | ) |  |  | — |  |  |  | (114,751 | )
Financial services pretax income |  |  | — |  |  |  | — |  |  |  | 625 |  |  |  | — |  |  |  | 625 |
Total pretax loss |  |  | (8,507 | ) |  |  | (4,591 | ) |  |  | (101,028 | ) |  |  | — |  |  |  | (114,126 | )
Income tax expense |  |  | — |  |  |  | — |  |  |  | (400 | ) |  |  | — |  |  |  | (400 | )
Equity in net loss of subsidiaries |  |  | (106,019 | ) |  |  | — |  |  |  | — |  |  |  | 106,019 |  |  |  | — |
Net loss |  | $ | (114,526 | ) |  | $ | (4,591 | ) |  | $ | (101,428 | ) |  | $ | 106,019 |  |  | $ | (114,526 | )
Condensed Consolidated Balance Sheets February 29, 2012 (in thousands)
|  | KB Home Corporate |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Consolidating Adjustments |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 259,419 |  |  | $ | 24,385 |  |  | $ | 20,367 |  |  | $ | — |  |  | $ | 304,171 |
Restricted cash |  |  | 63,884 |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | 63,890 |
Receivables |  |  | 820 |  |  |  | 31,369 |  |  |  | 40,253 |  |  |  | — |  |  |  | 72,442 |
Inventories |  |  | — |  |  |  | 1,260,358 |  |  |  | 488,019 |  |  |  | — |  |  |  | 1,748,377 |
Investments in unconsolidated joint ventures |  |  | — |  |  |  | 107,321 |  |  |  | 13,986 |  |  |  | — |  |  |  | 121,307 |
Other assets |  |  | 79,414 |  |  |  | 690 |  |  |  | 7,844 |  |  |  | — |  |  |  | 87,948 |
|  |  | 403,537 |  |  |  | 1,424,129 |  |  |  | 570,469 |  |  |  | — |  |  |  | 2,398,135 |
Financial services |  |  | — |  |  |  | — |  |  |  | 7,938 |  |  |  | — |  |  |  | 7,938 |
Investments in subsidiaries |  |  | (35,592 | ) |  |  | — |  |  |  | — |  |  |  | 35,592 |  |  |  | — |
Total assets |  | $ | 367,945 |  |  | $ | 1,424,129 |  |  | $ | 578,407 |  |  | $ | 35,592 |  |  | $ | 2,406,073 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities |  | $ | 113,316 |  |  | $ | 147,364 |  |  | $ | 158,006 |  |  | $ | — |  |  | $ | 418,686 |
Mortgages and notes payable |  |  | 1,539,035 |  |  |  | 44,281 |  |  |  | 4,098 |  |  |  | — |  |  |  | 1,587,414 |
|  |  | 1,652,351 |  |  |  | 191,645 |  |  |  | 162,104 |  |  |  | — |  |  |  | 2,006,100 |
Financial services |  |  | — |  |  |  | — |  |  |  | 6,105 |  |  |  | — |  |  |  | 6,105 |
Intercompany |  |  | (1,678,274 | ) |  |  | 1,266,081 |  |  |  | 412,193 |  |  |  | — |  |  |  | — |
Stockholders’ equity |  |  | 393,868 |  |  |  | (33,597 | ) |  |  | (1,995 | ) |  |  | 35,592 |  |  |  | 393,868 |
Total liabilities and stockholders’ equity |  | $ | 367,945 |  |  | $ | 1,424,129 |  |  | $ | 578,407 |  |  | $ | 35,592 |  |  | $ | 2,406,073 |
November 30, 2011 (in thousands)
|  | KB Home Corporate |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Consolidating Adjustments |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 340,957 |  |  | $ | 32,876 |  |  | $ | 41,217 |  |  | $ | — |  |  | $ | 415,050 |
Restricted cash |  |  | 64,475 |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | 64,481 |
Receivables |  |  | 801 |  |  |  | 29,250 |  |  |  | 36,128 |  |  |  | — |  |  |  | 66,179 |
Inventories |  |  | — |  |  |  | 1,256,468 |  |  |  | 475,161 |  |  |  | — |  |  |  | 1,731,629 |
Investments in unconsolidated joint ventures |  |  | — |  |  |  | 113,921 |  |  |  | 14,005 |  |  |  | — |  |  |  | 127,926 |
Other assets |  |  | 67,059 |  |  |  | 730 |  |  |  | 7,315 |  |  |  | — |  |  |  | 75,104 |
|  |  | 473,292 |  |  |  | 1,433,251 |  |  |  | 573,826 |  |  |  | — |  |  |  | 2,480,369 |
Financial services |  |  | — |  |  |  | — |  |  |  | 32,173 |  |  |  | — |  |  |  | 32,173 |
Investments in subsidiaries |  |  | 34,235 |  |  |  | — |  |  |  | — |  |  |  | (34,235 | ) |  |  | — |
Total assets |  | $ | 507,527 |  |  | $ | 1,433,251 |  |  | $ | 605,999 |  |  | $ | (34,235 | ) |  | $ | 2,512,542 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities |  | $ | 121,572 |  |  | $ | 181,835 |  |  | $ | 175,413 |  |  | $ | — |  |  | $ | 478,820 |
Mortgages and notes payable |  |  | 1,533,477 |  |  |  | 45,925 |  |  |  | 4,169 |  |  |  | — |  |  |  | 1,583,571 |
|  |  | 1,655,049 |  |  |  | 227,760 |  |  |  | 179,582 |  |  |  | — |  |  |  | 2,062,391 |
Financial services |  |  | — |  |  |  | — |  |  |  | 7,494 |  |  |  | — |  |  |  | 7,494 |
Intercompany |  |  | (1,590,179 | ) |  |  | 1,205,491 |  |  |  | 384,688 |  |  |  | — |  |  |  | — |
Stockholders’ equity |  |  | 442,657 |  |  |  | — |  |  |  | 34,235 |  |  |  | (34,235 | ) |  |  | 442,657 |
Total liabilities and stockholders’ equity |  | $ | 507,527 |  |  | $ | 1,433,251 |  |  | $ | 605,999 |  |  | $ | (34,235 | ) |  | $ | 2,512,542 |
Condensed Consolidated Statements of Cash Flows Three Months Ended February 29, 2012 (in thousands)
|  | KB Home Corporate |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Consolidating Adjustments |  |  | Total |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (45,802 | ) |  | $ | (33,897 | ) |  | $ | (12,150 | ) |  | $ | 46,047 |  |  | $ | (45,802 | )
Adjustments to reconcile net loss to net cash used by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in (income) loss of unconsolidated joint ventures |  |  | — |  |  |  | 51 |  |  |  | (121 | ) |  |  | — |  |  |  | (70 | )
Inventory impairments and land option contract abandonments |  |  | — |  |  |  | 6,572 |  |  |  | — |  |  |  | — |  |  |  | 6,572 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Receivables |  |  | (19 | ) |  |  | (2,119 | ) |  |  | 20,431 |  |  |  | — |  |  |  | 18,293 |
Inventories |  |  | — |  |  |  | (12,997 | ) |  |  | (12,859 | ) |  |  | — |  |  |  | (25,856 | )
Accounts payable, accrued expenses and other liabilities |  |  | (9,889 | ) |  |  | (31,936 | ) |  |  | (18,796 | ) |  |  | — |  |  |  | (60,621 | )
Other, net |  |  | (5,390 | ) |  |  | 189 |  |  |  | 3,101 |  |  |  | — |  |  |  | (2,100 | )
Net cash used by operating activities |  |  | (61,100 | ) |  |  | (74,137 | ) |  |  | (20,394 | ) |  |  | 46,047 |  |  |  | (109,584 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return of investment in (contributions to) unconsolidated joint ventures |  |  | — |  |  |  | 6,549 |  |  |  | (2 | ) |  |  | — |  |  |  | 6,547 |
Purchases of property and equipment, net |  |  | (21 | ) |  |  | (149 | ) |  |  | (259 | ) |  |  | — |  |  |  | (429 | )
Net cash provided (used) by investing activities |  |  | (21 | ) |  |  | 6,400 |  |  |  | (261 | ) |  |  | — |  |  |  | 6,118 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in restricted cash |  |  | 591 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 591 |
Proceeds from issuance of senior notes |  |  | 344,831 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 344,831 |
Payment of senior notes issuance costs |  |  | (5,816 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (5,816 | )
Repayment of senior notes |  |  | (340,481 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (340,481 | )
Payments on mortgages and land contracts due to land sellers and other loans |  |  | — |  |  |  | (1,644 | ) |  |  | (71 | ) |  |  | — |  |  |  | (1,715 | )
Issuance of common stock under employee stock plans |  |  | 175 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 175 |
Payments of cash dividends |  |  | (4,818 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4,818 | )
Intercompany |  |  | (14,899 | ) |  |  | 60,890 |  |  |  | 56 |  |  |  | (46,047 | ) |  |  | — |
Net cash provided (used) by financing activities |  |  | (20,417 | ) |  |  | 59,246 |  |  |  | (15 | ) |  |  | (46,047 | ) |  |  | (7,233 | )
Net decrease in cash and cash equivalents |  |  | (81,538 | ) |  |  | (8,491 | ) |  |  | (20,670 | ) |  |  | — |  |  |  | (110,699 | )
Cash and cash equivalents at beginning of period |  |  | 340,957 |  |  |  | 32,876 |  |  |  | 44,241 |  |  |  | — |  |  |  | 418,074 |
Cash and cash equivalents at end of period |  | $ | 259,419 |  |  | $ | 24,385 |  |  | $ | 23,571 |  |  | $ | — |  |  | $ | 307,375 |
Three Months Ended February 28, 2011 (in thousands)
|  | KB Home Corporate |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Consolidating Adjustments |  |  | Total |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (114,526 | ) |  | $ | (4,591 | ) |  | $ | (101,428 | ) |  | $ | 106,019 |  |  | $ | (114,526 | )
Adjustments to reconcile net loss to net cash used by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in loss of unconsolidated joint ventures |  |  | — |  |  |  | 43 |  |  |  | 55,944 |  |  |  | — |  |  |  | 55,987 |
Loss on loan guaranty |  |  | — |  |  |  | — |  |  |  | 22,758 |  |  |  | — |  |  |  | 22,758 |
Gain on sale of operating property |  |  | — |  |  |  | (8,825 | ) |  |  | — |  |  |  | — |  |  |  | (8,825 | )
Inventory impairments and land option contract abandonments |  |  | — |  |  |  | 112 |  |  |  | 1,642 |  |  |  | — |  |  |  | 1,754 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Receivables |  |  | 307 |  |  |  | (743 | ) |  |  | 5,063 |  |  |  | — |  |  |  | 4,627 |
Inventories |  |  | — |  |  |  | (15,946 | ) |  |  | (48,994 | ) |  |  | — |  |  |  | (64,940 | )
Accounts payable, accrued expenses and other liabilities |  |  | (12,135 | ) |  |  | (11,222 | ) |  |  | (32,115 | ) |  |  | — |  |  |  | (55,472 | )
Other, net |  |  | (4,259 | ) |  |  | (3,160 | ) |  |  | 1,157 |  |  |  | — |  |  |  | (6,262 | )
Net cash used by operating activities |  |  | (130,613 | ) |  |  | (44,332 | ) |  |  | (95,973 | ) |  |  | 106,019 |  |  |  | (164,899 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contributions to unconsolidated joint ventures |  |  | — |  |  |  | (101 | ) |  |  | (510 | ) |  |  | — |  |  |  | (611 | )
Proceeds from sale of operating property |  |  | — |  |  |  | 80,600 |  |  |  | — |  |  |  | — |  |  |  | 80,600 |
Sales (purchase) of property and equipment, net |  |  | (240 | ) |  |  | (18 | ) |  |  | 184 |  |  |  | — |  |  |  | (74 | )
Net cash provided (used) by investing activities |  |  | (240 | ) |  |  | 80,481 |  |  |  | (326 | ) |  |  | — |  |  |  | 79,915 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in restricted cash |  |  | (5,710 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (5,710 | )
Payments on mortgages and land contracts due to land sellers and other loans |  |  | — |  |  |  | (70,501 | ) |  |  | — |  |  |  | — |  |  |  | (70,501 | )
Issuance of common stock under employee stock plans |  |  | 69 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 69 |
Payments of cash dividends |  |  | (4,806 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4,806 | )
Intercompany |  |  | (18,352 | ) |  |  | 34,114 |  |  |  | 90,257 |  |  |  | (106,019 | ) |  |  | — |
Net cash provided (used) by financing activities |  |  | (28,799 | ) |  |  | (36,387 | ) |  |  | 90,257 |  |  |  | (106,019 | ) |  |  | (80,948 | )
Net decrease in cash and cash equivalents |  |  | (159,652 | ) |  |  | (238 | ) |  |  | (6,042 | ) |  |  | — |  |  |  | (165,932 | )
Cash and cash equivalents at beginning of period |  |  | 770,603 |  |  |  | 3,619 |  |  |  | 134,208 |  |  |  | — |  |  |  | 908,430 |
Cash and cash equivalents at end of period |  | $ | 610,951 |  |  | $ | 3,381 |  |  | $ | 128,166 |  |  | $ | — |  |  | $ | 742,498 |

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- Details
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- Definition The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties. + References No definition available. + Details
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