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Supplemental Guarantor Information | 9 Months Ended
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Aug. 31, 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 and borrowings, if any, under the Credit Facility 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, and the terms of the Credit Facility, 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) using a 5% rather than a 10% threshold (provided that the assets of our non-guarantor subsidiaries do not in the aggregate exceed 10% of an adjusted measure of our consolidated total assets), it will be automatically and unconditionally released and discharged from its guaranty of our senior notes, the $230 Million Convertible Senior Notes and the Credit Facility 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 all periods presented below reflects the relevant subsidiaries that were Guarantor Subsidiaries as of August 31, 2013 and the revisions/reclassifications discussed in Note 1. Basis of Presentation and Significant Accounting Policies. Condensed Consolidating Statement of Operations Nine Months Ended August 31, 2013 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Revenues | $ | — |  |  | $ | 1,306,981 |  |  | $ | 171,618 |  |  | $ | — |  |  | $ | 1,478,599 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 1,306,981 |  |  | $ | 163,423 |  |  | $ | — |  |  | $ | 1,470,404 |
Construction and land costs | — |  |  | (1,092,603 | ) |  | (140,041 | ) |  | — |  |  | (1,232,644 | )
Selling, general and administrative expenses | (45,355 | ) |  | (122,817 | ) |  | (24,480 | ) |  | — |  |  | (192,652 | )
Operating income (loss) | (45,355 | ) |  | 91,561 |  |  | (1,098 | ) |  | — |  |  | 45,108 |
Interest income | 607 |  |  | 17 |  |  | 5 |  |  | — |  |  | 629 |
Interest expense | 49,253 |  |  | (85,644 | ) |  | (4,682 | ) |  | — |  |  | (41,073 | )
Equity in loss of unconsolidated joint ventures | — |  |  | (1,656 | ) |  | (2 | ) |  | — |  |  | (1,658 | )
Homebuilding pretax income (loss) | 4,505 |  |  | 4,278 |  |  | (5,777 | ) |  | — |  |  | 3,006 |
Financial services pretax income | — |  |  | — |  |  | 7,041 |  |  | — |  |  | 7,041 |
Total pretax income | 4,505 |  |  | 4,278 |  |  | 1,264 |  |  | — |  |  | 10,047 |
Income tax benefit | 800 |  |  | 800 |  |  | 200 |  |  | — |  |  | 1,800 |
Equity in net income of subsidiaries | 6,542 |  |  | — |  |  | — |  |  | (6,542 | ) |  | — |
Net income | $ | 11,847 |  |  | $ | 5,078 |  |  | $ | 1,464 |  |  | $ | (6,542 | ) |  | $ | 11,847 |
Revised Condensed Consolidating Statement of Operations Nine Months Ended August 31, 2012 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Revenues | $ | — |  |  | $ | 869,357 |  |  | $ | 112,557 |  |  | $ | — |  |  | $ | 981,914 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 869,357 |  |  | $ | 104,698 |  |  | $ | — |  |  | $ | 974,055 |
Construction and land costs | — |  |  | (746,456 | ) |  | (89,773 | ) |  | — |  |  | (836,229 | )
Selling, general and administrative expenses | (45,480 | ) |  | (107,471 | ) |  | (20,693 | ) |  | — |  |  | (173,644 | )
Operating income (loss) | (45,480 | ) |  | 15,430 |  |  | (5,768 | ) |  | — |  |  | (35,818 | )
Interest income | 332 |  |  | 5 |  |  | 26 |  |  | — |  |  | 363 |
Interest expense | 37,026 |  |  | (86,597 | ) |  | (4,244 | ) |  | — |  |  | (53,815 | )
Equity in loss of unconsolidated joint ventures | — |  |  | (36 | ) |  | (1 | ) |  | — |  |  | (37 | )
Homebuilding pretax loss | (8,122 | ) |  | (71,198 | ) |  | (9,987 | ) |  | — |  |  | (89,307 | )
Financial services pretax income | — |  |  | — |  |  | 7,830 |  |  | — |  |  | 7,830 |
Total pretax loss | (8,122 | ) |  | (71,198 | ) |  | (2,157 | ) |  | — |  |  | (81,477 | )
Income tax benefit | 1,600 |  |  | 12,800 |  |  | 400 |  |  | — |  |  | 14,800 |
Equity in net loss of subsidiaries | (60,155 | ) |  | — |  |  | — |  |  | 60,155 |  |  | — |
Net loss | $ | (66,677 | ) |  | $ | (58,398 | ) |  | $ | (1,757 | ) |  | $ | 60,155 |  |  | $ | (66,677 | )
Condensed Consolidating Statement of Operations Three Months Ended August 31, 2013 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Revenues | $ | — |  |  | $ | 480,069 |  |  | $ | 68,905 |  |  | $ | — |  |  | $ | 548,974 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 480,069 |  |  | $ | 65,731 |  |  | $ | — |  |  | $ | 545,800 |
Construction and land costs | — |  |  | (390,567 | ) |  | (55,814 | ) |  | — |  |  | (446,381 | )
Selling, general and administrative expenses | (11,203 | ) |  | (43,691 | ) |  | (8,562 | ) |  | — |  |  | (63,456 | )
Operating income (loss) | (11,203 | ) |  | 45,811 |  |  | 1,355 |  |  | — |  |  | 35,963 |
Interest income | 178 |  |  | 15 |  |  | — |  |  | — |  |  | 193 |
Interest expense | 19,646 |  |  | (28,778 | ) |  | (2,194 | ) |  | — |  |  | (11,326 | )
Equity in income (loss) of unconsolidated joint ventures | — |  |  | (657 | ) |  | 1 |  |  | — |  |  | (656 | )
Homebuilding pretax income (loss) | 8,621 |  |  | 16,391 |  |  | (838 | ) |  | — |  |  | 24,174 |
Financial services pretax income | — |  |  | — |  |  | 2,404 |  |  | — |  |  | 2,404 |
Total pretax income | 8,621 |  |  | 16,391 |  |  | 1,566 |  |  | — |  |  | 26,578 |
Income tax benefit | 200 |  |  | 500 |  |  | — |  |  | — |  |  | 700 |
Equity in net income of subsidiaries | 18,457 |  |  | — |  |  | — |  |  | (18,457 | ) |  | — |
Net income | $ | 27,278 |  |  | $ | 16,891 |  |  | $ | 1,566 |  |  | $ | (18,457 | ) |  | $ | 27,278 |
Revised Condensed Consolidating Statement of Operations Three Months Ended August 31, 2012 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Revenues | $ | — |  |  | $ | 380,165 |  |  | $ | 44,339 |  |  | $ | — |  |  | $ | 424,504 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 380,165 |  |  | $ | 41,390 |  |  | $ | — |  |  | $ | 421,555 |
Construction and land costs | — |  |  | (313,469 | ) |  | (37,887 | ) |  | — |  |  | (351,356 | )
Selling, general and administrative expenses | (16,546 | ) |  | (37,705 | ) |  | (5,081 | ) |  | — |  |  | (59,332 | )
Operating income (loss) | (16,546 | ) |  | 28,991 |  |  | (1,578 | ) |  | — |  |  | 10,867 |
Interest income | 107 |  |  | (1,925 | ) |  | 1,935 |  |  | — |  |  | 117 |
Interest expense | 6,096 |  |  | (27,616 | ) |  | (1,540 | ) |  | — |  |  | (23,060 | )
Equity in income of unconsolidated joint ventures | — |  |  | 277 |  |  | 1 |  |  | — |  |  | 278 |
Homebuilding pretax loss | (10,343 | ) |  | (273 | ) |  | (1,182 | ) |  | — |  |  | (11,798 | )
Financial services pretax income | — |  |  | — |  |  | 4,359 |  |  | — |  |  | 4,359 |
Total pretax income (loss) | (10,343 | ) |  | (273 | ) |  | 3,177 |  |  | — |  |  | (7,439 | )
Income tax benefit (expense) | 14,900 |  |  | 400 |  |  | (4,600 | ) |  | — |  |  | 10,700 |
Equity in net loss of subsidiaries | (1,296 | ) |  | — |  |  | — |  |  | 1,296 |  |  | — |
Net income (loss) | $ | 3,261 |  |  | $ | 127 |  |  | $ | (1,423 | ) |  | $ | 1,296 |  |  | $ | 3,261 |
Condensed Consolidating Balance Sheet August 31, 2013 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Assets |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 306,955 |  |  | $ | 63,968 |  |  | $ | 12,391 |  |  | $ | — |  |  | $ | 383,314 |
Restricted cash | 41,631 |  |  | — |  |  | — |  |  | — |  |  | 41,631 |
Receivables | 167 |  |  | 70,719 |  |  | 1,459 |  |  | — |  |  | 72,345 |
Inventories | — |  |  | 2,046,106 |  |  | 183,614 |  |  | — |  |  | 2,229,720 |
Investments in unconsolidated joint ventures | — |  |  | 124,049 |  |  | 2,500 |  |  | — |  |  | 126,549 |
Other assets | 91,083 |  |  | 8,718 |  |  | 1,446 |  |  | — |  |  | 101,247 |
| 439,836 |  |  | 2,313,560 |  |  | 201,410 |  |  | — |  |  | 2,954,806 |
Financial services | — |  |  | — |  |  | 10,035 |  |  | — |  |  | 10,035 |
Intercompany receivables | 2,037,313 |  |  | — |  |  | — |  |  | (2,037,313 | ) |  | — |
Investments in subsidiaries | 33,771 |  |  | — |  |  | — |  |  | (33,771 | ) |  | — |
Total assets | $ | 2,510,920 |  |  | $ | 2,313,560 |  |  | $ | 211,445 |  |  | $ | (2,071,084 | ) |  | $ | 2,964,841 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities | $ | 136,473 |  |  | $ | 258,175 |  |  | $ | 132,265 |  |  | $ | — |  |  | $ | 526,913 |
Mortgages and notes payable | 1,876,441 |  |  | 60,616 |  |  | — |  |  | — |  |  | 1,937,057 |
| 2,012,914 |  |  | 318,791 |  |  | 132,265 |  |  | — |  |  | 2,463,970 |
Financial services | — |  |  | — |  |  | 2,865 |  |  | — |  |  | 2,865 |
Intercompany payables | — |  |  | 1,978,378 |  |  | 58,935 |  |  | (2,037,313 | ) |  | — |
Stockholders’ equity | 498,006 |  |  | 16,391 |  |  | 17,380 |  |  | (33,771 | ) |  | 498,006 |
Total liabilities and stockholders’ equity | $ | 2,510,920 |  |  | $ | 2,313,560 |  |  | $ | 211,445 |  |  | $ | (2,071,084 | ) |  | $ | 2,964,841 |
Revised Condensed Consolidating Balance Sheet November 30, 2012 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Assets |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 457,007 |  |  | $ | 52,933 |  |  | $ | 14,825 |  |  | $ | — |  |  | $ | 524,765 |
Restricted cash | 42,362 |  |  | — |  |  | — |  |  | — |  |  | 42,362 |
Receivables | 121 |  |  | 63,600 |  |  | 1,100 |  |  | — |  |  | 64,821 |
Inventories | — |  |  | 1,572,999 |  |  | 133,572 |  |  | — |  |  | 1,706,571 |
Investments in unconsolidated joint ventures | — |  |  | 114,292 |  |  | 9,382 |  |  | — |  |  | 123,674 |
Other assets | 85,901 |  |  | 15,638 |  |  | (6,489 | ) |  | — |  |  | 95,050 |
| 585,391 |  |  | 1,819,462 |  |  | 152,390 |  |  | — |  |  | 2,557,243 |
Financial services | — |  |  | — |  |  | 4,455 |  |  | — |  |  | 4,455 |
Intercompany receivables | 1,559,712 |  |  | — |  |  | — |  |  | (1,559,712 | ) |  | — |
Investments in subsidiaries | 11,411 |  |  | — |  |  | — |  |  | (11,411 | ) |  | — |
Total assets | $ | 2,156,514 |  |  | $ | 1,819,462 |  |  | $ | 156,845 |  |  | $ | (1,571,123 | ) |  | $ | 2,561,698 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities | $ | 134,314 |  |  | $ | 207,641 |  |  | $ | 116,934 |  |  | $ | — |  |  | $ | 458,889 |
Mortgages and notes payable | 1,645,394 |  |  | 77,421 |  |  | — |  |  | — |  |  | 1,722,815 |
| 1,779,708 |  |  | 285,062 |  |  | 116,934 |  |  | — |  |  | 2,181,704 |
Financial services | — |  |  | — |  |  | 3,188 |  |  | — |  |  | 3,188 |
Intercompany payables | — |  |  | 1,534,400 |  |  | 25,312 |  |  | (1,559,712 | ) |  | — |
Stockholders’ equity | 376,806 |  |  | — |  |  | 11,411 |  |  | (11,411 | ) |  | 376,806 |
Total liabilities and stockholders’ equity | $ | 2,156,514 |  |  | $ | 1,819,462 |  |  | $ | 156,845 |  |  | $ | (1,571,123 | ) |  | $ | 2,561,698 |
Condensed Consolidating Statement of Cash Flows Nine Months Ended August 31, 2013 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Cash flows from operating activities: |  |  |  |  |  |  |  |  |
Net income | $ | 11,847 |  |  | $ | 5,078 |  |  | $ | 1,464 |  |  | $ | (6,542 | ) |  | $ | 11,847 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |  |  |  |  |
Equity in (income) loss of unconsolidated joint ventures | — |  |  | 1,655 |  |  | (1,078 | ) |  | — |  |  | 577 |
Land option contract abandonments | — |  |  | 284 |  |  | — |  |  | — |  |  | 284 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |
Receivables | (46 | ) |  | (7,119 | ) |  | 164 |  |  | — |  |  | (7,001 | )
Inventories | — |  |  | (445,791 | ) |  | (45,211 | ) |  | — |  |  | (491,002 | )
Accounts payable, accrued expenses and other liabilities | 10,505 |  |  | 50,534 |  |  | 11,276 |  |  | — |  |  | 72,315 |
Other, net | 9,893 |  |  | 1,304 |  |  | 324 |  |  | — |  |  | 11,521 |
Net cash provided by (used in) operating activities | 32,199 |  |  | (394,055 | ) |  | (33,061 | ) |  | (6,542 | ) |  | (401,459 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Contributions to unconsolidated joint ventures | — |  |  | (5,064 | ) |  | (4,992 | ) |  | — |  |  | (10,056 | )
Purchases of property and equipment, net | (346 | ) |  | (735 | ) |  | (278 | ) |  | — |  |  | (1,359 | )
Net cash used in investing activities | (346 | ) |  | (5,799 | ) |  | (5,270 | ) |  | — |  |  | (11,415 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Change in restricted cash | 731 |  |  | — |  |  | — |  |  | — |  |  | 731 |
Proceeds from issuance of debt | 230,000 |  |  | — |  |  | — |  |  | — |  |  | 230,000 |
Payment of debt issuance costs | (10,086 | ) |  | — |  |  | — |  |  | — |  |  | (10,086 | )
Payments on mortgages and land contracts due to land sellers and other loans | — |  |  | (44,405 | ) |  | — |  |  | — |  |  | (44,405 | )
Proceeds from issuance of common stock, net | 109,503 |  |  | — |  |  | — |  |  | — |  |  | 109,503 |
Issuance of common stock under employee stock plans | 2,147 |  |  | — |  |  | — |  |  | — |  |  | 2,147 |
Payments of cash dividends | (6,272 | ) |  | — |  |  | — |  |  | — |  |  | (6,272 | )
Stock repurchases | (7,967 | ) |  | — |  |  | — |  |  | — |  |  | (7,967 | )
Intercompany | (499,961 | ) |  | 455,294 |  |  | 38,125 |  |  | 6,542 |  |  | — |
Net cash provided by (used in) financing activities | (181,905 | ) |  | 410,889 |  |  | 38,125 |  |  | 6,542 |  |  | 273,651 |
Net increase (decrease) in cash and cash equivalents | (150,052 | ) |  | 11,035 |  |  | (206 | ) |  | — |  |  | (139,223 | )
Cash and cash equivalents at beginning of period | 457,007 |  |  | 52,933 |  |  | 15,748 |  |  | — |  |  | 525,688 |
Cash and cash equivalents at end of period | $ | 306,955 |  |  | $ | 63,968 |  |  | $ | 15,542 |  |  | $ | — |  |  | $ | 386,465 |
Revised Condensed Consolidating Statement of Cash Flows Nine Months Ended August 31, 2012 (in thousands)
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Cash flows from operating activities: |  |  |  |  |  |  |  |  |
Net loss | $ | (66,677 | ) |  | $ | (58,398 | ) |  | $ | (1,757 | ) |  | $ | 60,155 |  |  | $ | (66,677 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |  |
Equity in (income) loss of unconsolidated joint ventures | — |  |  | 35 |  |  | (2,206 | ) |  | — |  |  | (2,171 | )
Inventory impairments | — |  |  | 22,912 |  |  | — |  |  | — |  |  | 22,912 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |
Receivables | (26,660 | ) |  | (1,577 | ) |  | 23,735 |  |  | — |  |  | (4,502 | )
Inventories | — |  |  | 10,157 |  |  | (20,719 | ) |  | — |  |  | (10,562 | )
Accounts payable, accrued expenses and other liabilities | (347 | ) |  | (17,309 | ) |  | (13,610 | ) |  | — |  |  | (31,266 | )
Other, net | 9,796 |  |  | 539 |  |  | 6,131 |  |  | — |  |  | 16,466 |
Net cash used in operating activities | (83,888 | ) |  | (43,641 | ) |  | (8,426 | ) |  | 60,155 |  |  | (75,800 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Return of investments in (contributions to) unconsolidated joint ventures | — |  |  | 3,801 |  |  | (936 | ) |  | — |  |  | 2,865 |
Sales (purchases) of property and equipment, net | (65 | ) |  | (989 | ) |  | 2 |  |  | — |  |  | (1,052 | )
Net cash provided by (used in) investing activities | (65 | ) |  | 2,812 |  |  | (934 | ) |  | — |  |  | 1,813 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Change in restricted cash | 18,368 |  |  | — |  |  | — |  |  | — |  |  | 18,368 |
Proceeds from issuance of debt | 694,831 |  |  | — |  |  | — |  |  | — |  |  | 694,831 |
Payment of debt issuance costs | (12,195 | ) |  | — |  |  | — |  |  | — |  |  | (12,195 | )
Repayment of senior notes | (592,645 | ) |  | — |  |  | — |  |  | — |  |  | (592,645 | )
Payments on mortgages and land contracts due to land sellers and other loans | — |  |  | (21,099 | ) |  | — |  |  | — |  |  | (21,099 | )
Issuance of common stock under employee stock plans | 451 |  |  | — |  |  | — |  |  | — |  |  | 451 |
Payments of cash dividends | (8,674 | ) |  | — |  |  | — |  |  | — |  |  | (8,674 | )
Intercompany | 3,687 |  |  | 58,590 |  |  | (2,122 | ) |  | (60,155 | ) |  | — |
Net cash provided by (used in) financing activities | 103,823 |  |  | 37,491 |  |  | (2,122 | ) |  | (60,155 | ) |  | 79,037 |
Net increase (decrease) in cash and cash equivalents | 19,870 |  |  | (3,338 | ) |  | (11,482 | ) |  | — |  |  | 5,050 |
Cash and cash equivalents at beginning of period | 340,957 |  |  | 46,375 |  |  | 30,742 |  |  | — |  |  | 418,074 |
Cash and cash equivalents at end of period | $ | 360,827 |  |  | $ | 43,037 |  |  | $ | 19,260 |  |  | $ | — |  |  | $ | 423,124 |

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