XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Inventory Impairments and Land Option Contract Abandonments | 3 Months Ended
--- | ---
Feb. 29, 2016
Inventory Impairments and Land Option Contract Abandonments [Abstract] |
Inventory Impairments and Land Option Contract Abandonments | Inventory Impairments and Land Option Contract Abandonments Each community or land parcel in our owned inventory is assessed on a quarterly basis to determine if indicators of potential impairment exist. We record an inventory impairment charge when indicators of potential impairment exist and the carrying value of a real estate asset is greater than the undiscounted future net cash flows the asset is expected to generate. These real estate assets are written down to fair value, which is primarily based on the estimated future net cash flows discounted for inherent risk associated with each such asset. We evaluated 20 communities or land parcels for recoverability during both the three months ended February 29, 2016 and February 28, 2015. The carrying value of the communities or land parcels evaluated during the three months ended February 29, 2016 and February 28, 2015 was $179.4 million and $165.1 million, respectively. Based on the results of our evaluations, we recognized inventory impairment charges of $1.3 million for the three months ended February 29, 2016. Of these charges, $.6 million related to a property in Florida where we decided to change our operational and marketing strategy in order to monetize our investment more quickly by accelerating the overall timing for selling, building and delivering homes on land that had been held for future development. Significant quantitative unobservable inputs used in our fair value measurement with respect to this community included an average selling price of $310,000; one delivery per month; and a discount rate of 17%. The remainder of the impairment charges related to the planned future sales of our last remaining land parcels in the Rio Grande Valley area of Texas, where we decided to change our strategy and monetize our investment through land sales rather than build and sell homes on the parcels as previously intended. The estimated fair value of these parcels was based on executed contracts. As of February 29, 2016, the aggregate carrying value of our inventory that had been impacted by inventory impairment charges was $250.4 million, representing 28 communities and various other land parcels. As of November 30, 2015, the aggregate carrying value of our inventory that had been impacted by inventory impairment charges was $254.2 million, representing 28 communities and various other land parcels. Our inventory controlled under land option contracts and other similar contracts is assessed on a quarterly basis to determine whether it continues to meet our internal investment and marketing standards. When a decision is made not to exercise certain land option contracts and other similar contracts due to market conditions and/or changes in our strategy, we write off the related inventory costs, including non-refundable deposits and unrecoverable pre-acquisition costs. Based on the results of our assessments, we recognized land option contract abandonment charges of $.6 million corresponding to 180 lots for the three months ended February 29, 2016, and $.4 million of such charges corresponding to 312 lots for the three months ended February 28, 2015. We sometimes abandon land option contracts and other similar contracts when we have incurred costs of less than $100,000; the lots and costs associated with such contracts are not included in the amounts above. Due to the judgment and assumptions applied in our inventory impairment and land option contract abandonment assessment processes, it is possible that actual results could differ substantially from those estimated.

X
- Definition Inventory impairments and land option contract abandonments. + References No definition available. + Details
Name: | kbh_InventoryImpairmentsAndLandOptionContractAbandonmentsAbstract
Namespace Prefix: | kbh_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Inventory impairments and land option contract abandonments. + References No definition available. + Details
Name: | kbh_InventoryImpairmentsAndLandOptionContractAbandonmentsTextBlock
Namespace Prefix: | kbh_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration