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Postretirement Benefits | 12 Months Ended
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Nov. 30, 2014
Compensation and Retirement Disclosure [Abstract] |
Postretirement Benefits | Postretirement Benefits We have a supplemental non-qualified, unfunded retirement plan, the KB Home Retirement Plan, effective as of July 11, 2002, pursuant to which we have offered to pay supplemental pension benefits to certain designated individuals (consisting of current and former employees) in connection with their retirement. The plan was closed to new participants in 2004. In connection with the plan, we have purchased cost recovery life insurance contracts on the lives of the designated individuals. The insurance contracts associated with the plan are held by a trust, established as part of the plan to implement and carry out the provisions of the plan and to finance the benefits offered under the plan. The trust is the owner and beneficiary of such insurance contracts. The amount of the insurance coverage under the contracts is designed to provide sufficient funds to cover all costs of the plan if assumptions made as to employment term, mortality experience, policy earnings and other factors are realized. The cash surrender value of these insurance contracts was $48.1 million at November 30, 2014 and $47.4 million at November 30, 2013. We recognized an investment gain on the cash surrender value of these life insurance contracts of $1.8 million in 2014, $3.1 million in 2013 and $4.2 million in 2012. In 2014, 2013 and 2012, we paid $1.2 million, $1.1 million and $.5 million, respectively, in benefits under the plan to eligible former employees. We also have an unfunded death benefit plan, the KB Home Death Benefit Only Plan, implemented on November 1, 2001, for certain designated individuals (consisting of current and former employees). The plan was closed to new participants in 2006. In connection with the plan, we have purchased cost recovery life insurance contracts on the lives of the designated individuals. The insurance contracts associated with the plan are held by a trust, established as part of the plan to implement and carry out the provisions of the plan and to finance the benefits offered under the plan. The trust is the owner and beneficiary of such insurance contracts. The amount of the insurance coverage under the contracts is designed to provide sufficient funds to cover all costs of the plan if assumptions made as to employment term, mortality experience, policy earnings and other factors are realized. The cash surrender value of these insurance contracts was $17.1 million at November 30, 2014 and $16.2 million at November 30, 2013. We recognized an investment gain on the cash surrender value of these life insurance contracts of $.7 million in 2014, $1.4 million in 2013 and $1.1 million in 2012. We have not paid out any benefits under the plan. The net periodic benefit cost of our postretirement benefit plans for the year ended November 30, 2014 was $5.6 million, which included service cost of $1.1 million, interest cost of $2.5 million, amortization of net actuarial loss of $.4 million and amortization of prior service cost of $1.6 million. The net periodic benefit cost of these plans for the year ended November 30, 2013 was $6.9 million, which included service cost of $1.5 million, interest cost of $2.0 million, amortization of net actuarial loss of $1.8 million, and amortization of prior service cost of $1.6 million. For the year ended November 30, 2012, the net periodic benefit cost of these plans was $6.6 million, which included service cost of $1.3 million, interest cost of $2.3 million, amortization of net actuarial loss of $1.4 million, and amortization of prior service cost of $1.6 million. The liabilities related to these plans were $62.6 million at November 30, 2014 and $56.3 million at November 30, 2013, and are included in accrued expenses and other liabilities in the consolidated balance sheets. For the years ended November 30, 2014 and 2013, the discount rates we used for the plans were 3.5% and 4.4%, respectively. Benefit payments under our postretirement benefit plans are expected to be paid during each year ended November 30 as follows: 2015 — $1.6 million; 2016 — $1.8 million; 2017 — $2.0 million; 2018 — $2.8 million; 2019 — $3.3 million; and for the five years ended November 30, 2024 — $19.0 million in the aggregate.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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