þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 . |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 . |
Delaware | 95-3666267 | |
(State of incorporation) | (IRS employer identification number) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company)
|
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Item 1.
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
835,994
$
1,139,033
$
367,316
$
501,003
$
829,816
$
1,133,846
$
364,532
$
498,821
(724,085
)
(945,196
)
(302,908
)
(411,813
)
(172,310
)
(233,795
)
(60,185
)
(78,602
)
(37,330
)
(103,909
)
(45,145
)
1,439
8,406
776
1,628
123
603
(36,902
)
(52,108
)
(12,342
)
(16,183
)
(55,865
)
(4,679
)
64
(1,947
)
(195,900
)
(100,304
)
(10,716
)
(9,121
)
6,178
5,187
2,784
2,182
(2,481
)
(2,639
)
(829
)
(754
)
(376
)
5,946
(888
)
996
3,321
8,494
1,067
2,424
(192,579
)
(91,810
)
(9,649
)
(6,697
)
(100
)
5,000
5,300
$
(192,679
)
$
(86,810
)
$
(9,649
)
$
(1,397
)
$
(2.50
)
$
(1.13
)
$
(.13
)
$
(.02
)
77,004
76,866
77,047
76,909
$
.1875
$
.1875
$
.0625
$
.0625
Table of Contents
August 31,
November 30,
2011
2010
$
477,406
$
904,401
113,186
115,477
79,180
108,048
1,900,580
1,696,721
51,255
105,583
78,382
150,076
2,699,989
3,080,306
21,828
29,443
$
2,721,817
$
3,109,749
$
117,593
$
233,217
582,233
466,505
1,586,703
1,775,529
2,286,529
2,475,251
3,321
2,620
115,149
115,149
878,962
873,519
510,750
717,852
(22,657
)
(22,657
)
(118,694
)
(120,442
)
(931,543
)
(931,543
)
431,967
631,878
$
2,721,817
$
3,109,749
Table of Contents
Nine Months Ended August 31,
2011
2010
$
(192,679
)
$
(86,810
)
56,241
(1,267
)
6,312
10,000
37,330
(8,825
)
1,660
1,605
1,636
2,628
(3,612
)
1,802
1,599
5,765
5,975
23,507
16,739
(10,940
)
182,762
(177,770
)
(149,021
)
(46,953
)
(147,323
)
(1,611
)
(2,832
)
(309,939
)
(164,143
)
(1,974
)
(1,533
)
80,600
(74
)
(642
)
78,552
(2,175
)
2,291
(2,092
)
(100,000
)
(86,064
)
(73,371
)
1,426
1,609
583
(14,423
)
(14,415
)
(350
)
(196,770
)
(88,036
)
(428,157
)
(254,354
)
908,430
1,177,961
$
480,273
$
923,607
Table of Contents
1.
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
(192,679
)
$
(86,810
)
$
(9,649
)
$
(1,397
)
77,004
76,866
77,047
76,909
$
(2.50
)
$
(1.13
)
$
(.13
)
$
(.02
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.
2.
Weighted
Average Exercise
Options
Price
8,798,613
$
24.19
20,000
9.54
(275,363
)
21.44
8,543,250
24.24
6,123,062
28.46
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
2.
3.
Southwest: Arizona and Nevada
Central: Colorado and Texas
Southeast: Florida, Maryland, North Carolina and Virginia
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
3.
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
354,348
$
483,383
$
175,434
$
211,294
91,411
149,364
39,479
55,914
247,492
314,786
102,702
140,035
136,565
186,313
46,917
91,578
829,816
1,133,846
364,532
498,821
6,178
5,187
2,784
2,182
$
835,994
$
1,139,033
$
367,316
$
501,003
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
3.
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
9,927
$
31,080
$
3,336
$
15,024
(113,620
)
(11,799
)
3,201
(1,802
)
(12,389
)
(3,666
)
(2,187
)
5,441
(30,177
)
(42,114
)
(7,156
)
(10,853
)
(49,641
)
(73,805
)
(7,910
)
(16,931
)
(195,900
)
(100,304
)
(10,716
)
(9,121
)
3,321
8,494
1,067
2,424
$
(192,579
)
$
(91,810
)
$
(9,649
)
$
(6,697
)
$
50
$
877
$
67
$
230
(55,902
)
(6,457
)
(2,177
)
(13
)
901
(3
)
$
(55,865
)
$
(4,679
)
$
64
$
(1,947
)
$
1,679
$
2,630
$
328
$
1,434
18,715
962
51
969
4,677
$
21,414
$
8,269
$
328
$
1,434
$
112
$
722
$
$
722
296
1,074
6,340
834
611
1,408
1,221
$
2,093
$
8,470
$
834
$
1,943
$
$
$
$
53,727
$
53,727
$
$
$
(a)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
3.
August 31,
November 30,
2011
2010
$
1,082,087
$
965,323
315,847
376,234
355,638
328,938
356,830
372,611
589,587
1,037,200
2,699,989
3,080,306
21,828
29,443
$
2,721,817
$
3,109,749
$
38,216
$
37,830
4,186
59,191
8,853
8,562
$
51,255
$
105,583
4.
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
7
$
4
$
2
$
2
1,329
736
526
350
4,392
4,447
1,806
1,830
450
450
6,178
5,187
2,784
2,182
(2,481
)
(2,639
)
(829
)
(754
)
3,697
2,548
1,955
1,428
(376
)
5,946
(888
)
996
$
3,321
$
8,494
$
1,067
$
2,424
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
4.
August 31,
November 30,
2011
2010
$
2,867
$
4,029
1,415
1,607
17,526
23,777
20
30
$
21,828
$
29,443
$
3,321
$
2,620
$
3,321
$
2,620
5.
6.
August 31,
November 30,
2011
2010
$
1,466,803
$
1,298,085
433,777
398,636
$
1,900,580
$
1,696,721
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
249,966
$
291,279
$
249,792
$
275,405
9,914
84,489
91,907
29,090
30,001
(36,902
)
(52,108
)
(12,342
)
(16,183
)
(52,746
)
(79,454
)
(21,733
)
(27,685
)
$
244,807
$
261,538
$
244,807
$
261,538
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
6.
(a)
(b)
7.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
7.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
7.
8.
Level 1
Level 2
Level 3
Fair Value
August 31,
November 30,
Description
Hierarchy
2011 (a)
2010 (a)
Level 2
$
75
$
1,877
Level 3
29,788
9,693
$
29,863
$
11,570
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
8.
(a)
August 31, 2011
November 30, 2010
Carrying
Estimated
Carrying
Estimated
Value
Fair Value
Value
Fair Value
$
$
$
99,916
$
101,500
249,609
236,875
249,498
246,250
299,221
261,000
299,068
289,500
449,782
389,250
449,745
435,375
260,732
237,175
260,352
279,575
298,978
254,250
298,893
286,500
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
9.
10.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
10.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
10.
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
230
$
110,455
$
$
10,376
(201
)
(109,929
)
(9,194
)
(4,505
)
(14,173
)
101
(5,336
)
$
(4,476
)
$
(13,647
)
$
101
$
(4,154
)
August 31,
November 30,
2011
2010
$
9,672
$
14,947
33
147,025
182,983
575,632
261
51,755
$
192,949
$
789,359
$
3,707
$
113,478
327,856
189,242
348,025
$
192,949
$
789,359
August 31,
November 30,
2011
2010
1
7
9
7
10
$
$
55,269
51,255
50,314
$
51,255
$
105,583
$
$
327,856
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
10.
(a)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
10.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
10.
11.
August 31,
November 30,
2011
2010
$
$
71,938
59,920
59,103
8,028
9,596
4,444
5,254
4,838
3,033
1,152
1,152
$
78,382
$
150,076
(a)
12.
August 31,
November 30,
2011
2010
$
151,205
$
136,354
124,853
70,499
93,988
70,027
76,477
27,615
42,963
25,145
15,549
7,635
8,220
93,753
104,455
$
582,233
$
466,505
13.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
13.
August 31,
November 30,
2011
2010
$
28,381
$
118,057
99,916
249,609
249,498
299,221
299,068
449,782
449,745
260,732
260,352
298,978
298,893
$
1,586,703
$
1,775,529
14.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
14.
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
93,988
$
135,749
$
82,630
$
117,753
3,236
3,720
1,255
1,783
(20,483
)
(35,210
)
(6,012
)
(17,958
)
(6,242
)
(2,329
)
(7,374
)
352
$
70,499
$
101,930
$
70,499
$
101,930
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
14.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
14.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
15.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
15.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
15.
16.
17.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
17.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
18.
19.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
19.
Nine Months Ended August 31,
2011
2010
$
477,406
$
919,851
2,867
3,756
$
480,273
$
923,607
$
23,159
$
72,113
278
523
182
191,345
$
$
72,300
38,861
1,816
53,125
9,596
(37,633
)
40,000
20.
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
20.
Nine Months Ended August 31, 2011 (in thousands)
Non-
KB Home
Guarantor
Guarantor
Consolidating
Corporate
Subsidiaries
Subsidiaries
Adjustments
Total
$
$
241,702
$
594,292
$
$
835,994
$
$
241,702
$
588,114
$
$
829,816
(206,373
)
(517,712
)
(724,085
)
(39,361
)
(23,735
)
(109,214
)
(172,310
)
(37,330
)
(37,330
)
(39,361
)
11,594
(76,142
)
(103,909
)
631
4
141
776
37,025
(35,582
)
(38,345
)
(36,902
)
(5
)
(55,860
)
(55,865
)
(1,705
)
(23,989
)
(170,206
)
(195,900
)
3,321
3,321
(1,705
)
(23,989
)
(166,885
)
(192,579
)
(100
)
(100
)
(190,974
)
190,974
$
(192,679
)
$
(23,989
)
$
(166,985
)
$
190,974
$
(192,679
)
Non-
KB Home
Guarantor
Guarantor
Consolidating
Corporate
Subsidiaries
Subsidiaries
Adjustments
Total
$
$
307,427
$
831,606
$
$
1,139,033
$
$
307,427
$
826,419
$
$
1,133,846
(263,301
)
(681,895
)
(945,196
)
(59,796
)
(41,940
)
(132,059
)
(233,795
)
(59,796
)
2,186
12,465
(45,145
)
1,377
21
230
1,628
11,430
(29,002
)
(34,536
)
(52,108
)
(148
)
(4,531
)
(4,679
)
(46,989
)
(26,943
)
(26,372
)
(100,304
)
8,494
8,494
(46,989
)
(26,943
)
(17,878
)
(91,810
)
2,600
1,500
900
5,000
(42,221
)
42,221
$
(86,610
)
$
(25,443
)
$
(16,978
)
$
42,221
$
(86,810
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
20.
Three Months Ended August 31, 2011 (in thousands)
Non-
KB Home
Guarantor
Guarantor
Consolidating
Corporate
Subsidiaries
Subsidiaries
Adjustments
Total
$
$
109,808
$
257,508
$
$
367,316
$
$
109,808
$
254,724
$
$
364,532
(92,245
)
(210,663
)
(302,908
)
(5,522
)
(13,800
)
(40,863
)
(60,185
)
(5,522
)
3,763
3,198
1,439
97
26
123
13,246
(14,190
)
(11,398
)
(12,342
)
67
(3
)
64
7,821
(10,360
)
(8,177
)
(10,716
)
1,067
1,067
7,821
(10,360
)
(7,110
)
(9,649
)
(17,470
)
17,470
$
(9,649
)
$
(10,360
)
$
(7,110
)
$
17,470
$
(9,649
)
Non-
KB Home
Guarantor
Guarantor
Consolidating
Corporate
Subsidiaries
Subsidiaries
Adjustments
Total
$
$
124,534
$
376,469
$
$
501,003
$
$
124,534
$
374,287
$
$
498,821
(106,649
)
(305,164
)
(411,813
)
(12,767
)
(13,731
)
(52,104
)
(78,602
)
(12,767
)
4,154
17,019
8,406
512
15
76
603
7,247
(11,045
)
(12,385
)
(16,183
)
(69
)
(1,878
)
(1,947
)
(5,008
)
(6,945
)
2,832
(9,121
)
2,424
2,424
(5,008
)
(6,945
)
5,256
(6,697
)
3,900
5,500
(4,100
)
5,300
(289
)
289
$
(1,397
)
$
(1,445
)
$
1,156
$
289
$
(1,397
)
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
20.
August 31, 2011 (in thousands)
Non-
KB Home
Guarantor
Guarantor
Consolidating
Corporate
Subsidiaries
Subsidiaries
Adjustments
Total
$
422,406
$
13,466
$
41,534
$
$
477,406
65,021
48,165
113,186
(72,889
)
10,518
141,551
79,180
832,252
1,068,328
1,900,580
38,216
13,039
51,255
69,662
607
8,113
78,382
484,200
895,059
1,320,730
2,699,989
21,828
21,828
10,641
(10,641
)
$
494,841
$
895,059
$
1,342,558
$
(10,641
)
$
2,721,817
$
121,480
$
140,274
$
438,072
$
$
699,826
1,533,212
24,118
29,373
1,586,703
1,654,692
164,392
467,445
2,286,529
3,321
3,321
(1,591,818
)
741,030
850,788
431,967
(10,363
)
21,004
(10,641
)
431,967
$
494,841
$
895,059
$
1,342,558
$
(10,641
)
$
2,721,817
Non-
KB Home
Guarantor
Guarantor
Consolidating
Corporate
Subsidiaries
Subsidiaries
Adjustments
Total
$
770,603
$
3,619
$
130,179
$
$
904,401
88,714
26,763
115,477
4,205
6,271
97,572
108,048
774,102
922,619
1,696,721
37,007
68,576
105,583
68,166
72,805
9,105
150,076
931,688
893,804
1,254,814
3,080,306
29,443
29,443
36,279
(36,279
)
$
967,967
$
893,804
$
1,284,257
$
(36,279
)
$
3,109,749
$
124,609
$
150,260
$
424,853
$
$
699,722
1,632,362
112,368
30,799
1,775,529
1,756,971
262,628
455,652
2,475,251
2,620
2,620
(1,420,882
)
631,176
789,706
631,878
36,279
(36,279
)
631,878
$
967,967
$
893,804
$
1,284,257
$
(36,279
)
$
3,109,749
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
20.
Nine Months Ended August 31, 2011 (in thousands)
Non-
KB Home
Guarantor
Guarantor
Consolidating
Corporate
Subsidiaries
Subsidiaries
Adjustments
Total
$
(192,679
)
$
(23,989
)
$
(166,985
)
$
190,974
$
(192,679
)
5
56,236
56,241
37,330
37,330
(8,825
)
(8,825
)
991
22,516
23,507
77,094
(4,247
)
(83,787
)
(10,940
)
(49,142
)
(128,628
)
(177,770
)
(3,127
)
(19,985
)
(23,841
)
(46,953
)
6,566
(2,989
)
6,573
10,150
(112,146
)
(108,181
)
(280,586
)
190,974
(309,939
)
(1,334
)
(640
)
(1,974
)
80,600
80,600
(178
)
(81
)
185
(74
)
(178
)
79,185
(455
)
78,552
23,692
(21,401
)
2,291
(100,000
)
(100,000
)
(84,638
)
(1,426
)
(86,064
)
1,426
1,426
(14,423
)
(14,423
)
(146,568
)
123,481
214,061
(190,974
)
(235,873
)
38,843
191,234
(190,974
)
(196,770
)
(348,197
)
9,847
(89,807
)
(428,157
)
770,603
3,619
134,208
908,430
$
422,406
$
13,466
$
44,401
$
$
480,273
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
20.
Non-
KB Home
Guarantor
Guarantor
Consolidating
Corporate
Subsidiaries
Subsidiaries
Adjustments
Total
$
(86,610
)
$
(25,443
)
$
(16,978
)
$
42,221
$
(86,810
)
148
(1,415
)
(1,267
)
1,671
15,068
16,739
182,187
(3,027
)
3,602
182,762
(60,018
)
(89,003
)
(149,021
)
(27,757
)
(29,692
)
(89,874
)
(147,323
)
(7,304
)
867
27,214
20,777
60,516
(115,494
)
(151,386
)
42,221
(164,143
)
(212
)
(1,321
)
(1,533
)
(213
)
(63
)
(366
)
(642
)
(213
)
(275
)
(1,687
)
(2,175
)
22,689
(24,781
)
(2,092
)
(53,354
)
(20,017
)
(73,371
)
1,609
1,609
583
583
(14,415
)
(14,415
)
(350
)
(350
)
(288,924
)
154,796
176,349
(42,221
)
(278,808
)
76,661
156,332
(42,221
)
(88,036
)
(218,505
)
(39,108
)
3,259
(254,354
)
995,122
44,478
138,361
1,177,961
$
776,617
$
5,370
$
141,620
$
$
923,607
21.
Table of Contents
Item 2.
Revenues are generated from our homebuilding operations and our financial services operations.
The following table presents a summary of our consolidated results of operations for the nine
months and three months ended August 31, 2011 and 2010 (in thousands, except per share amounts):
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
829,816
$
1,133,846
$
364,532
$
498,821
6,178
5,187
2,784
2,182
$
835,994
$
1,139,033
$
367,316
$
501,003
$
(195,900
)
$
(100,304
)
$
(10,716
)
$
(9,121
)
3,321
8,494
1,067
2,424
(192,579
)
(91,810
)
(9,649
)
(6,697
)
(100
)
5,000
5,300
$
(192,679
)
$
(86,810
)
$
(9,649
)
$
(1,397
)
$
(2.50
)
$
(1.13
)
$
(.13
)
$
(.02
)
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Table of Contents
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
829,663
$
1,129,477
$
364,457
$
496,898
153
4,369
75
1,923
829,816
1,133,846
364,532
498,821
723,886
940,840
302,834
409,890
199
4,356
74
1,923
724,085
945,196
302,908
411,813
172,310
233,795
60,185
78,602
37,330
933,725
1,178,991
363,093
490,415
$
(103,909
)
$
(45,145
)
$
1,439
$
8,406
3,817
5,428
1,603
2,320
$
217,400
$
208,100
$
227,400
$
214,200
12.7
%
16.7
%
16.9
%
17.5
%
20.8
%
20.7
%
16.5
%
15.8
%
-12.5
%
-4.0
%
.4
%
1.7
%
Three Months Ended August 31,
Homes Delivered
Net Orders
Cancellation Rates
Segment
2011
2010
2011
2010
2011
2010
524
600
581
335
27
%
23
%
232
337
259
186
20
26
611
855
677
556
34
37
236
528
321
237
30
40
1,603
2,320
1,838
1,314
29
%
33
%
24
16
%
%
Table of Contents
Nine Months Ended August 31,
Homes Delivered
Net Orders
Cancellation Rates
Segment
2011
2010
2011
2010
2011
2010
1,101
1,440
1,527
1,372
22
%
18
%
573
912
735
850
19
18
1,449
1,934
1,963
2,067
33
32
694
1,142
913
1,182
28
28
3,817
5,428
5,138
5,471
27
%
26
%
1
79
62
%
8
%
August 31,
Backlog - Value
Backlog - Homes
(In Thousands)
Segment
2011
2010
2011
2010
629
455
$
211,360
$
165,546
301
220
51,262
34,490
1,207
1,052
199,503
171,577
520
442
97,205
83,703
2,657
2,169
$
559,330
$
455,316
20
$
$
7,480
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Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
829,663
$
1,129,477
$
364,457
$
496,898
(723,886
)
(940,840
)
(302,834
)
(409,890
)
105,777
188,637
61,623
87,008
23,456
16,739
1,162
3,377
$
129,233
$
205,376
$
62,785
$
90,385
12.7
%
16.7
%
16.9
%
17.5
%
15.6
%
18.2
%
17.2
%
18.2
%
Table of Contents
August 31,
November 30,
2011
2010
$
1,586,703
$
1,775,529
431,967
631,878
$
2,018,670
$
2,407,407
78.6
%
73.8
%
$
1,586,703
$
1,775,529
(590,592
)
(1,019,878
)
996,111
755,651
431,967
631,878
$
1,428,078
$
1,387,529
69.8
%
54.5
%
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
354,348
$
483,383
$
175,434
$
211,294
(292,305
)
(378,881
)
(144,675
)
(171,174
)
(35,087
)
(50,556
)
(19,473
)
(17,824
)
26,956
53,946
11,286
22,296
(17,029
)
(22,866
)
(7,950
)
(7,272
)
$
9,927
$
31,080
$
3,336
$
15,024
Table of Contents
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
91,411
$
149,364
$
39,479
$
55,914
(88,706
)
(113,296
)
(29,611
)
(41,137
)
(19,789
)
(35,316
)
(7,068
)
(12,584
)
(37,330
)
(54,414
)
752
2,800
2,193
(59,206
)
(12,551
)
401
(3,995
)
$
(113,620
)
$
(11,799
)
$
3,201
$
(1,802
)
$
247,492
$
314,786
$
102,702
$
140,035
(211,771
)
(264,088
)
(86,819
)
(114,397
)
(42,887
)
(45,844
)
(16,550
)
(17,814
)
(7,166
)
4,854
(667
)
7,824
(5,223
)
(8,520
)
(1,520
)
(2,383
)
$
(12,389
)
$
(3,666
)
$
(2,187
)
$
5,441
$
136,565
$
186,313
$
46,917
$
91,578
(127,361
)
(181,998
)
(40,712
)
(83,080
)
(27,485
)
(32,649
)
(9,480
)
(14,894
)
(18,281
)
(28,334
)
(3,275
)
(6,396
)
(11,896
)
(13,780
)
(3,881
)
(4,457
)
$
(30,177
)
$
(42,114
)
$
(7,156
)
$
(10,853
)
Table of Contents
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Table of Contents
Nine Months Ended August 31,
Three Months Ended August 31,
2011
2010
2011
2010
$
6,178
$
5,187
$
2,784
$
2,182
(2,481
)
(2,639
)
(829
)
(754
)
(376
)
5,946
(888
)
996
$
3,321
$
8,494
$
1,067
$
2,424
1,633
4,353
234
1,827
$
315,899
$
810,609
$
44,744
$
347,372
66
%
83
%
57
%
83
%
1,862
4,545
452
2,089
$
370,599
$
826,756
$
93,445
$
386,619
(a)
Table of Contents
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Table of Contents
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Table of Contents
Greater than
Less than 2 years
3-5 years
6-10 years
10 years
Total
$
403.7
$
326.5
$
123.8
$
1,900.6
Table of Contents
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Table of Contents
Weighted Average
Fiscal Year of Expected Maturity
Fixed Rate Debt
Interest Rate
$
%
249,609
5.8
749,003
6.1
559,710
8.1
$
1,558,322
6.8
%
$
1,378,550
Table of Contents
66
67
68
69
Table of Contents
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Table of Contents
10.43
31.1
31.2
32.1
32.2
101
Table of Contents
70
KB HOME
Registrant
Dated October 7, 2011
By:
/s/ JEFF J. KAMINSKI
Jeff J. Kaminski
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Dated October 7, 2011
By:
/s/ WILLIAM R. HOLLINGER
William R. Hollinger
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)
Table of Contents
71
10.43
31.1
31.2
32.1
32.2
101
|
1290 AVENUE OF THE AMERICAS
NEW YORK, NY 10104-0050 TELEPHONE: 212.468.8000 FACSIMILE: 212.468.7900 WWW.MOFO.COM |
MORRISON & FOERSTER LLP
NEW YORK, SAN FRANCISCO, LOS ANGELES, PALO ALTO, SACRAMENTO, SAN DIEGO, DENVER, NORTHERN VIRGINIA, WASHINGTON, D.C. TOKYO, LONDON, BRUSSELS, BEIJING, SHANGHAI, HONG KONG |
Re: |
SOUTH EDGE, LLC
Support for Proposed Settlement Term Sheet |
1 | Credit Agreement refers to the Credit Agreement, dated November 1, 2004, as amended and restated by the Amended and Restated Credit Agreement, dated March 9, 2007 among South Edge as borrower, the Lenders party thereto, JPMorgan as the Agent and The Royal Bank of Scotland PLC as Syndication Agent. |
2 | If Meritage and its parent guarantor, Meritage Homes Corporation, a Maryland corporation (the Meritage Parties ), join this settlement, then the term Settling Builders shall also include the Meritage Parties. | |
3 | Capitalized terms not otherwise defined herein shall have the meaning set forth in the Credit Agreement. |
4 | Except as otherwise provided herein, the term Parties shall include the Agent, the Consenting Lenders and the Settling Builders. |
1 | All references herein to Consenting Lenders include JPMorgan in its capacity not as Agent, but as a Lender who consents to the Plan. | |
2 | Credit Agreement means the Credit Agreement, dated November 1, 2004, as amended and restated by the Amended and Restated Credit Agreement, dated March 9, 2007 among South Edge as borrower, the Lenders party thereto, JPMorgan as the Agent and The Royal Bank of Scotland PLC as Syndication Agent. |
1
3 | Should the Settling Builders settle with the Meritage Builder, then the Agent and the Lenders shall receive the same releases from the Meritage Builder that the Settling Builders receive from Meritage in order to ensure the consistency of the releases to JPM and the Lenders that are being provided to them under this Term Sheet and the PSA. | |
4 | Agent Note : How those Settling Builders goals regarding Meritage get satisfied will be addressed in the Plan, to the extent so permitted by law, and the Consenting Lenders and Agent shall not object to any solution within the scope of the Settling Builders indemnity that does not expose the Lenders or Agent to liability or loss or prevent the Plan from being confirmed or becoming effective, including having the Settling Builders pursue Takedown claims and causes of action against Meritage, which they shall acquire from the Estate pursuant to the terms of the Plan. The solution shall not include an assignment by the Lenders of the Repayment Guarantee claim against Meritage, and it shall not give the Settling Builders the right to choose the agent under the Credit Agreement that prosecutes the Repayment Guarantee claim against Meritage. To the extent that the law allows the Settling Builders, for example, to subrogation to the rights that Meritage would have had under the Repayment Guaranty had Meritage paid off that guaranty itself, Consenting Lenders and Agent have no objection to that result. |
2
3
4
5 | Should the Settling Builders settle with the Meritage Builder, then the Agent and the Lenders shall receive the same releases from the Meritage Builder that the Settling Builders receive from Meritage in order to ensure the consistency of the releases to JPM and the Lenders that are being provided to them under this Term Sheet and the PSA. | |
6 | Agent Note: How those Settling Builders goals regarding Meritage get satisfied will be addressed in the Plan, to the extent so permitted by law, and the Consenting Lenders and Agent shall not object to any solution within the scope of the Settling Builders indemnity that does not expose the Lenders or Agent to liability or loss or prevent the Plan from being confirmed or becoming effective, including having the Settling Builders pursue Takedown claims and causes of action against Meritage, which they shall acquire from the Estate pursuant to the terms of the Plan. The solution shall not include an assignment by the Lenders of the Repayment Guarantee claim against Meritage, and it shall not give the Settling Builders the right to choose the agent under the Credit Agreement that prosecutes the Repayment Guarantee claim against Meritage. To the extent that the law allows the Settling Builders, for example, to subrogation to the rights that Meritage would have had under the Repayment Guaranty had Meritage paid off that guaranty itself, Consenting Lenders and Agent have no objection to that result. |
5
7 | By way of example, (x) if the Bankruptcy Court determines that only $10 million of the MI Funds may be applied to the Lenders obligations, then Settling Builders shall pay an additional $6 million in MI Makeup, or (y) if the Bankruptcy Court determines that $20 million of the MI Funds may be applied to the Lenders obligations, then Settling Builders shall pay no addition MI Makeup. |
6
7
8
9
10
11
12
13
14
1. |
I have reviewed this quarterly report on Form 10-Q of KB Home;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;
|
4. |
The registrants other certifying officer and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being
prepared;
|
||
b) |
Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted
accounting principles;
|
||
c) |
Evaluated the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such
evaluation; and
|
||
d) |
Disclosed in this report any change in the registrants internal control over financial
reporting that occurred during the registrants most recent fiscal quarter (the
registrants fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrants internal control
over financial reporting; and
|
5. |
The registrants other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrants auditors and the
audit committee of the registrants board of directors (or persons performing the equivalent
functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the registrants ability to record, process, summarize and report financial information;
and
|
||
b) |
Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrants internal control over financial reporting.
|
Dated October 3, 2011 | /s/ JEFFREY T. MEZGER | |||
Jeffrey T. Mezger | ||||
President and Chief Executive Officer
(Principal Executive Officer) |
||||
1. |
I have reviewed this quarterly report on Form 10-Q of KB Home;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;
|
4. |
The registrants other certifying officer and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being
prepared;
|
||
b) |
Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted
accounting principles;
|
||
c) |
Evaluated the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such
evaluation; and
|
||
d) |
Disclosed in this report any change in the registrants internal control over financial
reporting that occurred during the registrants most recent fiscal quarter (the
registrants fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrants internal control
over financial reporting; and
|
5. |
The registrants other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrants auditors and the
audit committee of the registrants board of directors (or persons performing the equivalent
functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the registrants ability to record, process, summarize and report financial information;
and
|
||
b) |
Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrants internal control over financial reporting.
|
Dated October 3, 2011 | /s/ JEFF J. KAMINSKI | |||
Jeff J. Kaminski | ||||
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
||||
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.
|
Dated October 3, 2011 | /s/ JEFFREY T. MEZGER | |||
Jeffrey T. Mezger | ||||
President and Chief Executive Officer
(Principal Executive Officer) |
||||
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.
|
Dated October 3, 2011 | /s/ JEFF J. KAMINSKI | |||
Jeff J. Kaminski | ||||
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
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