XML 61 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6

Supplemental Guarantor Information

3 Months Ended

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

X

- Details

Name:	us-gaap_GuaranteesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_GuaranteesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration