Supplemental Guarantor Information (Tables)

3 Months Ended

Feb. 28, 2014

Condensed Consolidating Statement of Operations

Three Months Ended February 28, 2014 (in thousands)



	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	435,849		$	14,838		$	—		$	450,687
Homebuilding:
Revenues	$	—		$	435,849		$	12,418		$	—		$	448,267
Construction and land costs	—			(358,092		)	(11,182		)	—			(369,274		)
Selling, general and administrative expenses	(15,744		)	(41,972		)	(3,558		)	—			(61,274		)
Operating income (loss)	(15,744		)	35,785			(2,322		)	—			17,719
Interest income	167			1			—			—			168
Interest expense	(38,008		)	(1,272		)	—			28,004			(11,276		)
Intercompany interest	59,722			(32,096		)	378			(28,004		)	—
Equity in income of unconsolidated joint ventures	—			2,590			—			—			2,590
Homebuilding pretax income (loss)	6,137			5,008			(1,944		)	—			9,201
Financial services pretax income	—			—			1,562			—			1,562
Total pretax income (loss)	6,137			5,008			(382		)	—			10,763
Income tax expense	(100		)	(100		)	—			—			(200		)
Equity in net income of subsidiaries	4,526			—			—			(4,526		)	—
Net income (loss)	$	10,563		$	4,908		$	(382	)	$	(4,526	)	$	10,563

Condensed Consolidating Statement of Operations

Three Months Ended February 28, 2013 (in thousands)



	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	393,228		$	11,991		$	—		$	405,219
Homebuilding:
Revenues	$	—		$	393,228		$	9,588		$	—		$	402,816
Construction and land costs	—			(334,498		)	(8,767		)	—			(343,265		)
Selling, general and administrative expenses	(14,823		)	(40,809		)	(3,465		)	—			(59,097		)
Operating income (loss)	(14,823		)	17,921			(2,644		)	—			454
Interest income	201			1			2			—			204
Interest expense	(31,847		)	(1,575		)	—			18,182			(15,240		)
Intercompany interest	45,356			(28,134		)	960			(18,182		)	—
Equity in loss of unconsolidated joint ventures	—			(435		)	—			—			(435		)
Homebuilding pretax loss	(1,113		)	(12,222		)	(1,682		)	—			(15,017		)
Financial services pretax income	—			—			2,659			—			2,659
Total pretax income (loss)	(1,113		)	(12,222		)	977			—			(12,358		)
Income tax expense	—			(100		)	—			—			(100		)
Equity in net loss of subsidiaries	(11,345		)	—			—			11,345			—
Net income (loss)	$	(12,458	)	$	(12,322	)	$	977		$	11,345		$	(12,458	)

Condensed Consolidating Balance Sheet

February 28, 2014 (in thousands)



	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	234,234	$	61,043	$	7,992	$	—		$	303,269
Restricted cash	42,083		—		—		—			42,083
Receivables	1,446		85,659		250		—			87,355
Inventories	—		2,600,119		34,825		—			2,634,944
Investments in unconsolidated joint ventures	—		60,648		—		—			60,648
Other assets	97,477		11,574		1,436		—			110,487
	375,240		2,819,043		44,503		—			3,238,786
Financial services	—		—		9,386		—			9,386
Intercompany receivables	2,397,174		—		113,059		(2,510,233		)	—
Investments in subsidiaries	42,004		—		—		(42,004		)	—
Total assets	$	2,814,418	$	2,819,043	$	166,948	$	(2,552,237	)	$	3,248,172
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	134,679	$	295,212	$	94,407	$	—		$	524,298
Mortgages and notes payable	2,112,110		63,080		—		—			2,175,190
	2,246,789		358,292		94,407		—			2,699,488
Financial services	—		—		2,350		—			2,350
Intercompany payables	21,295		2,455,743		33,195		(2,510,233		)	—
Stockholders’ equity	546,334		5,008		36,996		(42,004		)	546,334
Total liabilities and stockholders’ equity	$	2,814,418	$	2,819,043	$	166,948	$	(2,552,237	)	$	3,248,172

Condensed Consolidating Balance Sheet

November 30, 2013 (in thousands)



	KB Home Corporate		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Homebuilding:
Cash and cash equivalents	$	476,847	$	41,316	$	11,932	$	—		$	530,095
Restricted cash	41,906		—		—		—			41,906
Receivables	1,472		74,186		91		—			75,749
Inventories	—		2,263,034		35,543		—			2,298,577
Investments in unconsolidated joint ventures	—		130,192		—		—			130,192
Other assets	97,647		9,072		357		—			107,076
	617,872		2,517,800		47,923		—			3,183,595
Financial services	—		—		10,040		—			10,040
Intercompany receivables	2,129,729		—		117,829		(2,247,558		)	—
Investments in subsidiaries	39,955		—		—		(39,955		)	—
Total assets	$	2,787,556	$	2,517,800	$	175,792	$	(2,287,513	)	$	3,193,635
Liabilities and stockholders’ equity
Homebuilding:
Accounts payable, accrued expenses and other liabilities	$	117,875	$	292,220	$	94,363	$	—		$	504,458
Mortgages and notes payable	2,111,773		38,725		—		—			2,150,498
	2,229,648		330,945		94,363		—			2,654,956
Financial services	—		—		2,593		—			2,593
Intercompany payables	21,822		2,186,855		38,881		(2,247,558		)	—
Stockholders’ equity	536,086		—		39,955		(39,955		)	536,086
Total liabilities and stockholders’ equity	$	2,787,556	$	2,517,800	$	175,792	$	(2,287,513	)	$	3,193,635

Condensed Consolidating Statement of Cash Flows

Three Months Ended February 28, 2014 (in thousands)



	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	25,225		$	(238,483	)	$	(7,805	)	$	—		$	(221,063	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(8,618		)	—			—			(8,618		)
Proceeds from sale of investment in unconsolidated joint venture	—			10,110			—			—			10,110
Purchases of property and equipment, net	(70		)	(1,455		)	(51		)	—			(1,576		)
Intercompany	(265,497		)	—			—			265,497			—
Net cash provided by (used in) investing activities	(265,567		)	37			(51		)	265,497			(84		)
Cash flows from financing activities:
Change in restricted cash	(177		)	—			—			—			(177		)
Payments on mortgages and land contracts due to land sellers and other loans	—			(2,655		)	—			—			(2,655		)
Payments of cash dividends	(2,094		)	—			—			—			(2,094		)
Intercompany	—			260,828			4,669			(265,497		)	—
Net cash provided by (used in) financing activities	(2,271		)	258,173			4,669			(265,497		)	(4,926		)
Net increase (decrease) in cash and cash equivalents	(242,613		)	19,727			(3,187		)	—			(226,073		)
Cash and cash equivalents at beginning of period	476,847			41,316			14,360			—			532,523
Cash and cash equivalents at end of period	$	234,234		$	61,043		$	11,173		$	—		$	306,450

Condensed Consolidating Statement of Cash Flows

Three Months Ended February 28, 2013 (in thousands)



	KB Home Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash provided by (used in) operating activities	$	8,208		$	(206,425	)	$	(12,815	)	$	—		$	(211,032	)
Cash flows from investing activities:
Contributions to unconsolidated joint ventures	—			(94		)	(210		)	—			(304		)
Purchases of property and equipment, net	(96		)	(318		)	(16		)	—			(430		)
Intercompany	(239,211		)	—			—			239,211			—
Net cash used in investing activities	(239,307		)	(412		)	(226		)	239,211			(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	—			(17,003		)	—			—			(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	—			230,182			9,029			(239,211		)	—
Net cash provided by financing activities	328,639			213,179			9,029			(239,211		)	311,636
Net increase (decrease) in cash and cash equivalents	97,540			6,342			(4,012		)	—			99,870
Cash and cash equivalents at beginning of period	457,007			54,205			14,476			—			525,688
Cash and cash equivalents at end of period	$	554,547		$	60,547		$	10,464		$	—		$	625,558