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Supplemental Guarantor Information | 3 Months Ended
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Feb. 28, 2013
Guarantees [Abstract] |
Supplemental Guarantor Information | Supplemental Guarantor Information Our obligations to pay principal, premium, if any, and interest under our senior notes and the $230 Million Convertible 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 us. Pursuant to the terms of the indenture governing our senior notes and the $230 Million Convertible Senior Notes, if any of the Guarantor Subsidiaries ceases to be a “significant subsidiary” as defined by Rule 1-02 of Regulation S-X (as in effect on June 1, 1996), it will be automatically and unconditionally released and discharged from its guaranty of our senior notes and $230 Million Convertible Senior Notes so long as all guarantees by such Guarantor Subsidiary of any other of our or our subsidiaries’ indebtedness are terminated at or prior to the time of such release. We have 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 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 considered to be Guarantor Subsidiaries. Condensed Consolidated Statements of Operations Three Months Ended February 28, 2013 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Revenues | $ | — |  |  | $ | 273,432 |  |  | $ | 131,787 |  |  | $ | — |  |  | $ | 405,219 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 273,432 |  |  | $ | 129,384 |  |  | $ | — |  |  | $ | 402,816 |
Construction and land costs | — |  |  | (231,720 | ) |  | (111,545 | ) |  | — |  |  | (343,265 | )
Selling, general and administrative expenses | (14,823 | ) |  | (26,894 | ) |  | (17,380 | ) |  | — |  |  | (59,097 | )
Operating income (loss) | (14,823 | ) |  | 14,818 |  |  | 459 |  |  | — |  |  | 454 |
Interest income | 201 |  |  | — |  |  | 3 |  |  | — |  |  | 204 |
Interest expense | 13,509 |  |  | (19,302 | ) |  | (9,447 | ) |  | — |  |  | (15,240 | )
Equity in income (loss) of unconsolidated joint ventures | — |  |  | (558 | ) |  | 123 |  |  | — |  |  | (435 | )
Homebuilding pretax loss | (1,113 | ) |  | (5,042 | ) |  | (8,862 | ) |  | — |  |  | (15,017 | )
Financial services pretax income | — |  |  | — |  |  | 2,659 |  |  | — |  |  | 2,659 |
Total pretax loss | (1,113 | ) |  | (5,042 | ) |  | (6,203 | ) |  | — |  |  | (12,358 | )
Income tax expense | — |  |  | — |  |  | (100 | ) |  | — |  |  | (100 | )
Equity in net loss of subsidiaries | (11,345 | ) |  | — |  |  | — |  |  | 11,345 |  |  | — |
Net loss | $ | (12,458 | ) |  | $ | (5,042 | ) |  | $ | (6,303 | ) |  | $ | 11,345 |  |  | $ | (12,458 | )
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 | — |  |  | (137,099 | ) |  | (94,733 | ) |  | — |  |  | (231,832 | )
Selling, general and administrative expenses | (14,000 | ) |  | (19,055 | ) |  | (18,157 | ) |  | — |  |  | (51,212 | )
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 | )
Condensed Consolidated Balance Sheets February 28, 2013 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Assets |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 554,547 |  |  | $ | 28,625 |  |  | $ | 40,872 |  |  | $ | — |  |  | $ | 624,044 |
Restricted cash | 44,619 |  |  | — |  |  | — |  |  | — |  |  | 44,619 |
Receivables | 91 |  |  | 50,839 |  |  | 14,700 |  |  | — |  |  | 65,630 |
Inventories | — |  |  | 1,132,565 |  |  | 805,209 |  |  | — |  |  | 1,937,774 |
Investments in unconsolidated joint ventures | — |  |  | 109,102 |  |  | 14,108 |  |  | — |  |  | 123,210 |
Other assets | 93,196 |  |  | 7,075 |  |  | 2,307 |  |  | — |  |  | 102,578 |
| 692,453 |  |  | 1,328,206 |  |  | 877,196 |  |  | — |  |  | 2,897,855 |
Financial services | — |  |  | — |  |  | 2,782 |  |  | — |  |  | 2,782 |
Investments in subsidiaries | (2,947 | ) |  | — |  |  | — |  |  | 2,947 |  |  | — |
Total assets | $ | 689,506 |  |  | $ | 1,328,206 |  |  | $ | 879,978 |  |  | $ | 2,947 |  |  | $ | 2,900,637 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities | $ | 142,672 |  |  | $ | 139,150 |  |  | $ | 179,633 |  |  | $ | — |  |  | $ | 461,455 |
Mortgages and notes payable | 1,875,735 |  |  | 63,918 |  |  | 24,100 |  |  | — |  |  | 1,963,753 |
| 2,018,407 |  |  | 203,068 |  |  | 203,733 |  |  | — |  |  | 2,425,208 |
Financial services | — |  |  | — |  |  | 2,294 |  |  | — |  |  | 2,294 |
Intercompany | (1,802,036 | ) |  | 1,130,180 |  |  | 671,856 |  |  | — |  |  | — |
Stockholders’ equity | 473,135 |  |  | (5,042 | ) |  | 2,095 |  |  | 2,947 |  |  | 473,135 |
Total liabilities and stockholders’ equity | $ | 689,506 |  |  | $ | 1,328,206 |  |  | $ | 879,978 |  |  | $ | 2,947 |  |  | $ | 2,900,637 |
November 30, 2012 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Assets |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 457,007 |  |  | $ | 22,642 |  |  | $ | 45,116 |  |  | $ | — |  |  | $ | 524,765 |
Restricted cash | 42,362 |  |  | — |  |  | — |  |  | — |  |  | 42,362 |
Receivables | 121 |  |  | 49,518 |  |  | 15,182 |  |  | — |  |  | 64,821 |
Inventories | — |  |  | 1,075,011 |  |  | 631,560 |  |  | — |  |  | 1,706,571 |
Investments in unconsolidated joint ventures | — |  |  | 109,346 |  |  | 14,328 |  |  | — |  |  | 123,674 |
Other assets | 85,901 |  |  | 7,491 |  |  | 1,658 |  |  | — |  |  | 95,050 |
| 585,391 |  |  | 1,264,008 |  |  | 707,844 |  |  | — |  |  | 2,557,243 |
Financial services | — |  |  | — |  |  | 4,455 |  |  | — |  |  | 4,455 |
Investments in subsidiaries | 11,411 |  |  | — |  |  | — |  |  | (11,411 | ) |  | — |
Total assets | $ | 596,802 |  |  | $ | 1,264,008 |  |  | $ | 712,299 |  |  | $ | (11,411 | ) |  | $ | 2,561,698 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities | $ | 134,314 |  |  | $ | 147,563 |  |  | $ | 177,012 |  |  | $ | — |  |  | $ | 458,889 |
Mortgages and notes payable | 1,645,394 |  |  | 69,596 |  |  | 7,825 |  |  | — |  |  | 1,722,815 |
| 1,779,708 |  |  | 217,159 |  |  | 184,837 |  |  | — |  |  | 2,181,704 |
Financial services | — |  |  | — |  |  | 3,188 |  |  | — |  |  | 3,188 |
Intercompany | (1,559,712 | ) |  | 1,046,849 |  |  | 512,863 |  |  | — |  |  | — |
Stockholders’ equity | 376,806 |  |  | — |  |  | 11,411 |  |  | (11,411 | ) |  | 376,806 |
Total liabilities and stockholders’ equity | $ | 596,802 |  |  | $ | 1,264,008 |  |  | $ | 712,299 |  |  | $ | (11,411 | ) |  | $ | 2,561,698 |
Condensed Consolidated Statements of Cash Flows Three Months Ended February 28, 2013 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Cash flows from operating activities: |  |  |  |  |  |  |  |  |
Net loss | $ | (12,458 | ) |  | $ | (5,042 | ) |  | $ | (6,303 | ) |  | $ | 11,345 |  |  | $ | (12,458 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |  |
Equity in (income) loss of unconsolidated joint ventures | — |  |  | 558 |  |  | (1,214 | ) |  | — |  |  | (656 | )
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |
Receivables | 30 |  |  | (1,321 | ) |  | 1,617 |  |  | — |  |  | 326 |
Inventories | — |  |  | (57,554 | ) |  | (141,207 | ) |  | — |  |  | (198,761 | )
Accounts payable, accrued expenses and other liabilities | 8,010 |  |  | (8,413 | ) |  | (2,010 | ) |  | — |  |  | (2,413 | )
Other, net | 1,281 |  |  | 540 |  |  | 1,109 |  |  | — |  |  | 2,930 |
Net cash used in operating activities | (3,137 | ) |  | (71,232 | ) |  | (148,008 | ) |  | 11,345 |  |  | (211,032 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Return of investments in (contributions to) unconsolidated joint ventures | — |  |  | (314 | ) |  | 10 |  |  | — |  |  | (304 | )
Purchases of property and equipment, net | (96 | ) |  | (129 | ) |  | (205 | ) |  | — |  |  | (430 | )
Net cash used in investing activities | (96 | ) |  | (443 | ) |  | (195 | ) |  | — |  |  | (734 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Change in restricted cash | (2,257 | ) |  | — |  |  | — |  |  | — |  |  | (2,257 | )
Proceeds from issuance of debt | 230,000 |  |  | — |  |  | — |  |  | — |  |  | 230,000 |
Payment of debt issuance costs | (6,878 | ) |  | — |  |  | — |  |  | — |  |  | (6,878 | )
Payments on mortgages and land contracts due to land sellers and other loans | — |  |  | (5,678 | ) |  | (11,325 | ) |  | — |  |  | (17,003 | )
Proceeds from issuance of common stock, net | 109,811 |  |  | — |  |  | — |  |  | — |  |  | 109,811 |
Issuance of common stock under employee stock plans | 52 |  |  | — |  |  | — |  |  | — |  |  | 52 |
Payments of cash dividends | (2,089 | ) |  | — |  |  | — |  |  | — |  |  | (2,089 | )
Intercompany | (227,866 | ) |  | 83,336 |  |  | 155,875 |  |  | (11,345 | ) |  | — |
Net cash provided by financing activities | 100,773 |  |  | 77,658 |  |  | 144,550 |  |  | (11,345 | ) |  | 311,636 |
Net increase (decrease) in cash and cash equivalents | 97,540 |  |  | 5,983 |  |  | (3,653 | ) |  | — |  |  | 99,870 |
Cash and cash equivalents at beginning of period | 457,007 |  |  | 22,642 |  |  | 46,039 |  |  | — |  |  | 525,688 |
Cash and cash equivalents at end of period | $ | 554,547 |  |  | $ | 28,625 |  |  | $ | 42,386 |  |  | $ | — |  |  | $ | 625,558 |
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 in operating activities: |  |  |  |  |  |  |  |  |
Equity in (income) loss of unconsolidated joint ventures | — |  |  | 51 |  |  | (121 | ) |  | — |  |  | (70 | )
Inventory impairments | — |  |  | 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 in operating activities | (61,100 | ) |  | (74,137 | ) |  | (20,394 | ) |  | 46,047 |  |  | (109,584 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Return of investments in (contributions to) unconsolidated joint ventures | — |  |  | 6,549 |  |  | (2 | ) |  | — |  |  | 6,547 |
Purchases of property and equipment, net | (21 | ) |  | (149 | ) |  | (259 | ) |  | — |  |  | (429 | )
Net cash provided by (used in) investing activities | (21 | ) |  | 6,400 |  |  | (261 | ) |  | — |  |  | 6,118 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Change in restricted cash | 591 |  |  | — |  |  | — |  |  | — |  |  | 591 |
Proceeds from issuance of debt | 344,831 |  |  | — |  |  | — |  |  | — |  |  | 344,831 |
Payment of debt 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 by (used in) 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 |

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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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