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Supplemental Guarantor Information | 6 Months Ended
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May 31, 2018
Guarantees [Abstract] |
Supplemental Guarantor Information | Supplemental Guarantor Information Our obligations to pay principal, premium, if any, and interest on the senior notes and borrowings, if any, under the Credit Facility are guaranteed on a joint and several basis by certain of our subsidiaries (“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 the 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 the 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 May 31, 2018. Condensed Consolidating Statements of Operations (in thousands)
| Three Months Ended May 31, 2018
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Total revenues | $ | — |  |  | $ | 995,927 |  |  | $ | 105,496 |  |  | $ | — |  |  | $ | 1,101,423 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 995,927 |  |  | $ | 102,746 |  |  | $ | — |  |  | $ | 1,098,673 |
Construction and land costs | — |  |  | (821,077 | ) |  | (90,167 | ) |  | — |  |  | (911,244 | )
Selling, general and administrative expenses | (26,815 | ) |  | (76,986 | ) |  | (9,430 | ) |  | — |  |  | (113,231 | )
Operating income (loss) | (26,815 | ) |  | 97,864 |  |  | 3,149 |  |  | — |  |  | 74,198 |
Interest income | 1,181 |  |  | 4 |  |  | 93 |  |  | — |  |  | 1,278 |
Interest expense | (37,942 | ) |  | (634 | ) |  | (1,348 | ) |  | 39,924 |  |  | — |
Intercompany interest | 75,277 |  |  | (32,816 | ) |  | (2,537 | ) |  | (39,924 | ) |  | — |
Equity in loss of unconsolidated joint ventures | — |  |  | (321 | ) |  | (1 | ) |  | — |  |  | (322 | )
Homebuilding pretax income (loss) | 11,701 |  |  | 64,097 |  |  | (644 | ) |  | — |  |  | 75,154 |
Financial services pretax income | — |  |  | — |  |  | 3,154 |  |  | — |  |  | 3,154 |
Total pretax income | 11,701 |  |  | 64,097 |  |  | 2,510 |  |  | — |  |  | 78,308 |
Income tax expense | (2,400 | ) |  | (17,700 | ) |  | (900 | ) |  | — |  |  | (21,000 | )
Equity in net income of subsidiaries | 48,007 |  |  | — |  |  | — |  |  | (48,007 | ) |  | — |
Net income | $ | 57,308 |  |  | $ | 46,397 |  |  | $ | 1,610 |  |  | $ | (48,007 | ) |  | $ | 57,308 |
| Three Months Ended May 31, 2017
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Total revenues | $ | — |  |  | $ | 893,561 |  |  | $ | 109,233 |  |  | $ | — |  |  | $ | 1,002,794 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 893,561 |  |  | $ | 106,511 |  |  | $ | — |  |  | $ | 1,000,072 |
Construction and land costs | — |  |  | (751,172 | ) |  | (95,424 | ) |  | — |  |  | (846,596 | )
Selling, general and administrative expenses | (23,322 | ) |  | (70,929 | ) |  | (9,666 | ) |  | — |  |  | (103,917 | )
Operating income (loss) | (23,322 | ) |  | 71,460 |  |  | 1,421 |  |  | — |  |  | 49,559 |
Interest income | 198 |  |  | 2 |  |  | 2 |  |  | — |  |  | 202 |
Interest expense | (41,693 | ) |  | (426 | ) |  | (1,225 | ) |  | 43,344 |  |  | — |
Intercompany interest | 75,610 |  |  | (29,862 | ) |  | (2,404 | ) |  | (43,344 | ) |  | — |
Equity in loss of unconsolidated joint ventures | — |  |  | (595 | ) |  | (1 | ) |  | — |  |  | (596 | )
Homebuilding pretax income (loss) | 10,793 |  |  | 40,579 |  |  | (2,207 | ) |  | — |  |  | 49,165 |
Financial services pretax income | — |  |  | — |  |  | 2,817 |  |  | — |  |  | 2,817 |
Total pretax income | 10,793 |  |  | 40,579 |  |  | 610 |  |  | — |  |  | 51,982 |
Income tax expense | (2,500 | ) |  | (17,300 | ) |  | (400 | ) |  | — |  |  | (20,200 | )
Equity in net income of subsidiaries | 23,489 |  |  | — |  |  | — |  |  | (23,489 | ) |  | — |
Net income | $ | 31,782 |  |  | $ | 23,279 |  |  | $ | 210 |  |  | $ | (23,489 | ) |  | $ | 31,782 |
| Six Months Ended May 31, 2018
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Total revenues | $ | — |  |  | $ | 1,771,622 |  |  | $ | 201,424 |  |  | $ | — |  |  | $ | 1,973,046 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 1,771,622 |  |  | $ | 196,256 |  |  | $ | — |  |  | $ | 1,967,878 |
Construction and land costs | — |  |  | (1,469,196 | ) |  | (171,526 | ) |  | — |  |  | (1,640,722 | )
Selling, general and administrative expenses | (48,981 | ) |  | (142,827 | ) |  | (17,147 | ) |  | — |  |  | (208,955 | )
Operating income (loss) | (48,981 | ) |  | 159,599 |  |  | 7,583 |  |  | — |  |  | 118,201 |
Interest income | 2,179 |  |  | 9 |  |  | 93 |  |  | — |  |  | 2,281 |
Interest expense | (75,914 | ) |  | (1,323 | ) |  | (2,631 | ) |  | 79,868 |  |  | — |
Intercompany interest | 148,123 |  |  | (63,315 | ) |  | (4,940 | ) |  | (79,868 | ) |  | — |
Equity in loss of unconsolidated joint ventures | — |  |  | (1,166 | ) |  | (1 | ) |  | — |  |  | (1,167 | )
Homebuilding pretax income | 25,407 |  |  | 93,804 |  |  | 104 |  |  | — |  |  | 119,315 |
Financial services pretax income | — |  |  | — |  |  | 5,038 |  |  | — |  |  | 5,038 |
Total pretax income | 25,407 |  |  | 93,804 |  |  | 5,142 |  |  | — |  |  | 124,353 |
Income tax expense | (47,100 | ) |  | (65,800 | ) |  | (25,400 | ) |  | — |  |  | (138,300 | )
Equity in net income of subsidiaries | 7,746 |  |  | — |  |  | — |  |  | (7,746 | ) |  | — |
Net income (loss) | $ | (13,947 | ) |  | $ | 28,004 |  |  | $ | (20,258 | ) |  | $ | (7,746 | ) |  | $ | (13,947 | )
| Six Months Ended May 31, 2017
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Total revenues | $ | — |  |  | $ | 1,623,488 |  |  | $ | 197,902 |  |  | $ | — |  |  | $ | 1,821,390 |
Homebuilding: |  |  |  |  |  |  |  |  |
Revenues | $ | — |  |  | $ | 1,623,488 |  |  | $ | 192,830 |  |  | $ | — |  |  | $ | 1,816,318 |
Construction and land costs | — |  |  | (1,369,624 | ) |  | (175,052 | ) |  | — |  |  | (1,544,676 | )
Selling, general and administrative expenses | (45,589 | ) |  | (133,827 | ) |  | (17,390 | ) |  | — |  |  | (196,806 | )
Operating income (loss) | (45,589 | ) |  | 120,037 |  |  | 388 |  |  | — |  |  | 74,836 |
Interest income | 395 |  |  | 3 |  |  | 2 |  |  | — |  |  | 400 |
Interest expense | (90,042 | ) |  | (994 | ) |  | (2,387 | ) |  | 87,116 |  |  | (6,307 | )
Intercompany interest | 149,103 |  |  | (56,465 | ) |  | (5,522 | ) |  | (87,116 | ) |  | — |
Equity in income (loss) of unconsolidated joint ventures | — |  |  | 136 |  |  | (1 | ) |  | — |  |  | 135 |
Homebuilding pretax income (loss) | 13,867 |  |  | 62,717 |  |  | (7,520 | ) |  | — |  |  | 69,064 |
Financial services pretax income | — |  |  | — |  |  | 4,377 |  |  | — |  |  | 4,377 |
Total pretax income (loss) | 13,867 |  |  | 62,717 |  |  | (3,143 | ) |  | — |  |  | 73,441 |
Income tax expense | (1,200 | ) |  | (26,100 | ) |  | (100 | ) |  | — |  |  | (27,400 | )
Equity in net income of subsidiaries | 33,374 |  |  | — |  |  | — |  |  | (33,374 | ) |  | — |
Net income (loss) | $ | 46,041 |  |  | $ | 36,617 |  |  | $ | (3,243 | ) |  | $ | (33,374 | ) |  | $ | 46,041 |
Condensed Consolidating Balance Sheets (in thousands)
| May 31, 2018
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Assets |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 542,126 |  |  | $ | 93,948 |  |  | $ | 33,724 |  |  | $ | — |  |  | $ | 669,798 |
Receivables | 7,486 |  |  | 189,853 |  |  | 78,281 |  |  | — |  |  | 275,620 |
Inventories | — |  |  | 3,122,164 |  |  | 341,838 |  |  | — |  |  | 3,464,002 |
Investments in unconsolidated joint ventures | — |  |  | 66,512 |  |  | 2,503 |  |  | — |  |  | 69,015 |
Deferred tax assets, net | 204,006 |  |  | 178,134 |  |  | 113,829 |  |  | — |  |  | 495,969 |
Other assets | 97,866 |  |  | 10,331 |  |  | 2,827 |  |  | — |  |  | 111,024 |
| 851,484 |  |  | 3,660,942 |  |  | 573,002 |  |  | — |  |  | 5,085,428 |
Financial services | — |  |  | — |  |  | 9,308 |  |  | — |  |  | 9,308 |
Intercompany receivables | 3,470,462 |  |  | — |  |  | 126,744 |  |  | (3,597,206 | ) |  | — |
Investments in subsidiaries | 55,834 |  |  | — |  |  | — |  |  | (55,834 | ) |  | — |
Total assets | $ | 4,377,780 |  |  | $ | 3,660,942 |  |  | $ | 709,054 |  |  | $ | (3,653,040 | ) |  | $ | 5,094,736 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities | $ | 135,927 |  |  | $ | 441,864 |  |  | $ | 247,230 |  |  | $ | — |  |  | $ | 825,021 |
Notes payable | 2,292,332 |  |  | 36,406 |  |  | 25,110 |  |  | — |  |  | 2,353,848 |
| 2,428,259 |  |  | 478,270 |  |  | 272,340 |  |  | — |  |  | 3,178,869 |
Financial services | — |  |  | — |  |  | 1,224 |  |  | — |  |  | 1,224 |
Intercompany payables | 34,878 |  |  | 3,182,672 |  |  | 379,656 |  |  | (3,597,206 | ) |  | — |
Stockholders’ equity | 1,914,643 |  |  | — |  |  | 55,834 |  |  | (55,834 | ) |  | 1,914,643 |
Total liabilities and stockholders’ equity | $ | 4,377,780 |  |  | $ | 3,660,942 |  |  | $ | 709,054 |  |  | $ | (3,653,040 | ) |  | $ | 5,094,736 |
| November 30, 2017
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Assets |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 575,193 |  |  | $ | 102,661 |  |  | $ | 42,776 |  |  | $ | — |  |  | $ | 720,630 |
Receivables | 24,815 |  |  | 144,076 |  |  | 75,322 |  |  | — |  |  | 244,213 |
Inventories | — |  |  | 2,929,466 |  |  | 333,920 |  |  | — |  |  | 3,263,386 |
Investments in unconsolidated joint ventures | — |  |  | 62,290 |  |  | 2,504 |  |  | — |  |  | 64,794 |
Deferred tax assets, net | 250,747 |  |  | 243,523 |  |  | 139,367 |  |  | — |  |  | 633,637 |
Other assets | 91,592 |  |  | 8,424 |  |  | 2,482 |  |  | — |  |  | 102,498 |
| 942,347 |  |  | 3,490,440 |  |  | 596,371 |  |  | — |  |  | 5,029,158 |
Financial services | — |  |  | — |  |  | 12,357 |  |  | — |  |  | 12,357 |
Intercompany receivables | 3,414,237 |  |  | — |  |  | 107,992 |  |  | (3,522,229 | ) |  | — |
Investments in subsidiaries | 49,776 |  |  | — |  |  | — |  |  | (49,776 | ) |  | — |
Total assets | $ | 4,406,360 |  |  | $ | 3,490,440 |  |  | $ | 716,720 |  |  | $ | (3,572,005 | ) |  | $ | 5,041,515 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |
Homebuilding: |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities | $ | 163,984 |  |  | $ | 371,909 |  |  | $ | 253,500 |  |  | $ | — |  |  | $ | 789,393 |
Notes payable | 2,289,532 |  |  | 9,283 |  |  | 26,030 |  |  | — |  |  | 2,324,845 |
| 2,453,516 |  |  | 381,192 |  |  | 279,530 |  |  | — |  |  | 3,114,238 |
Financial services | — |  |  | — |  |  | 966 |  |  | — |  |  | 966 |
Intercompany payables | 26,533 |  |  | 3,109,248 |  |  | 386,448 |  |  | (3,522,229 | ) |  | — |
Stockholders’ equity | 1,926,311 |  |  | — |  |  | 49,776 |  |  | (49,776 | ) |  | 1,926,311 |
Total liabilities and stockholders’ equity | $ | 4,406,360 |  |  | $ | 3,490,440 |  |  | $ | 716,720 |  |  | $ | (3,572,005 | ) |  | $ | 5,041,515 |
Condensed Consolidating Statements of Cash Flows (in thousands)
| Six Months Ended May 31, 2018
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Net cash provided by (used in) operating activities | $ | 18,931 |  |  | $ | (33,782 | ) |  | $ | (4,518 | ) |  | $ | — |  |  | $ | (19,369 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Contributions to unconsolidated joint ventures | — |  |  | (11,600 | ) |  | — |  |  | — |  |  | (11,600 | )
Return of investments in unconsolidated joint ventures | — |  |  | 1,099 |  |  | — |  |  | — |  |  | 1,099 |
Purchases of property and equipment, net | (3,102 | ) |  | (277 | ) |  | (48 | ) |  | — |  |  | (3,427 | )
Intercompany | (42,380 | ) |  | — |  |  | — |  |  | 42,380 |  |  | — |
Net cash used in investing activities | (45,482 | ) |  | (10,778 | ) |  | (48 | ) |  | 42,380 |  |  | (13,928 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Payments on mortgages and land contracts due to land sellers and other loans | — |  |  | (9,574 | ) |  | (920 | ) |  | — |  |  | (10,494 | )
Issuance of common stock under employee stock plans | 4,771 |  |  | — |  |  | — |  |  | — |  |  | 4,771 |
Payments of cash dividends | (4,500 | ) |  | — |  |  | — |  |  | — |  |  | (4,500 | )
Stock repurchases | (6,787 | ) |  | — |  |  | — |  |  | — |  |  | (6,787 | )
Intercompany | — |  |  | 45,421 |  |  | (3,041 | ) |  | (42,380 | ) |  | — |
Net cash provided by (used in) financing activities | (6,516 | ) |  | 35,847 |  |  | (3,961 | ) |  | (42,380 | ) |  | (17,010 | )
Net decrease in cash and cash equivalents | (33,067 | ) |  | (8,713 | ) |  | (8,527 | ) |  | — |  |  | (50,307 | )
Cash and cash equivalents at beginning of period | 575,193 |  |  | 102,661 |  |  | 43,007 |  |  | — |  |  | 720,861 |
Cash and cash equivalents at end of period | $ | 542,126 |  |  | $ | 93,948 |  |  | $ | 34,480 |  |  | $ | — |  |  | $ | 670,554 |
| Six Months Ended May 31, 2017
| KB Home Corporate |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidating Adjustments |  | Total
Net cash provided by (used in) operating activities | $ | 24,724 |  |  | $ | (83,371 | ) |  | $ | (5,933 | ) |  | $ | — |  |  | $ | (64,580 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Contributions to unconsolidated joint ventures | — |  |  | (5,852 | ) |  | (5,253 | ) |  | — |  |  | (11,105 | )
Return of investments in unconsolidated joint ventures | — |  |  | 1,969 |  |  | 4,989 |  |  | — |  |  | 6,958 |
Purchases of property and equipment, net | (3,724 | ) |  | (344 | ) |  | (32 | ) |  | — |  |  | (4,100 | )
Intercompany | (77,681 | ) |  | — |  |  | — |  |  | 77,681 |  |  | — |
Net cash used in investing activities | (81,405 | ) |  | (4,227 | ) |  | (296 | ) |  | 77,681 |  |  | (8,247 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Repayment of senior notes | (105,326 | ) |  | — |  |  | — |  |  | — |  |  | (105,326 | )
Payments on mortgages and land contracts due to land sellers and other loans | — |  |  | (61,640 | ) |  | — |  |  | — |  |  | (61,640 | )
Issuance of common stock under employee stock plans | 3,049 |  |  | — |  |  | — |  |  | — |  |  | 3,049 |
Payments of cash dividends | (4,341 | ) |  | — |  |  | — |  |  | — |  |  | (4,341 | )
Stock repurchases | (2,543 | ) |  | — |  |  | — |  |  | — |  |  | (2,543 | )
Intercompany | — |  |  | 91,185 |  |  | (13,504 | ) |  | (77,681 | ) |  | — |
Net cash provided by (used in) financing activities | (109,161 | ) |  | 29,545 |  |  | (13,504 | ) |  | (77,681 | ) |  | (170,801 | )
Net decrease in cash and cash equivalents | (165,842 | ) |  | (58,053 | ) |  | (19,733 | ) |  | — |  |  | (243,628 | )
Cash and cash equivalents at beginning of period | 463,100 |  |  | 100,439 |  |  | 29,461 |  |  | — |  |  | 593,000 |
Cash and cash equivalents at end of period | $ | 297,258 |  |  | $ | 42,386 |  |  | $ | 9,728 |  |  | $ | — |  |  | $ | 349,372 |

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- References No definition available. + Details
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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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -URI http://asc.fasb.org/topic&trid=2155896 + Details
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