KB Home Files 2023 Annual Report on Form 10-K

TL;DR

<b>KB Home filed its 2023 10-K report detailing financial performance and equity structure.</b>

AI Summary

KB HOME (KBH) filed a Annual Report (10-K) with the SEC on January 19, 2024. KB Home reported its fiscal year 2023 results, ending November 30, 2023. The company operates in the Home Building and Financial Services sectors. The filing covers financial data for fiscal years 2020, 2021, 2022, and 2023. Key financial statement items such as common stock, retained earnings, and treasury stock are detailed. The report includes information on stock and other equity components as of November 30, 2020, 2021, and 2022.

Why It Matters

For investors and stakeholders tracking KB HOME, this filing contains several important signals. This 10-K provides a comprehensive overview of KB Home's financial health and operational performance for the fiscal year 2023, crucial for investors to assess the company's stability and growth prospects. The detailed breakdown of financial data, including segment performance and equity components, allows stakeholders to understand the company's financial position and make informed investment decisions.

Risk Assessment

Risk Level: medium — KB HOME shows moderate risk based on this filing. The filing is a standard annual report (10-K), which typically contains a broad range of financial and operational information, but does not highlight any immediate or severe risks without further analysis of the content not provided.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand KB Home's performance and potential challenges in the housing market.

Revenue Breakdown

Key Numbers

• 2023-11-30 — Fiscal Year End (Conformed period of report)
• 2024-01-19 — Filing Date (Filed as of date)
• 129 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• KB HOME (company) — Filer name
• KAUFMAN & BROAD HOME CORP (company) — Former company name
• DE (company) — State of incorporation
• LOS ANGELES (company) — Business address city
• CA (company) — Business address state
• 3102314000 (dollar_amount) — Business phone number

Forward-Looking Statements

• KB Home will continue to focus on its core Home Building segment, which will remain its primary revenue driver. (KB HOME) — high confidence, target: 2024-11-30
• The Financial Service segment will likely see continued integration with the Home Building operations, supporting home sales. (KB HOME) — medium confidence, target: 2024-11-30

FAQ

Industry Context

KB Home operates in the operative builders industry, a segment of real estate and construction focused on building new homes.

Regulatory Implications

The filing is a Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for public companies.

What Investors Should Do

1. Analyze the detailed financial statements for revenue, net income, and other key performance indicators.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into the company's strategy and outlook.
3. Examine the risk factors section to understand potential challenges and uncertainties facing KB Home.

Key Dates

• 2023-11-30: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-01-19: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data provided for the 2023 10-K; comparison to prior filings requires access to those documents.

Key Financial Figures

• $1.00 — ich registered Common Stock (par value $1.00 per share) KBH New York Stock Exchange

Filing Documents

• kbh-20231130.htm (10-K) — 2704KB
• kbh-11302023x10kexhibit21.htm (EX-21) — 34KB
• kbh-11302023x10kexhibit22.htm (EX-22) — 14KB
• kbh-11302023x10kexhibit23.htm (EX-23) — 11KB
• kbh-11302023x10kexhibit311.htm (EX-31.1) — 12KB
• kbh-11302023x10kexhibit312.htm (EX-31.2) — 12KB
• kbh-11302023x10kexhibit321.htm (EX-32.1) — 6KB
• kbh-11302023x10kexhibit322.htm (EX-32.2) — 6KB
• kbh-11302023x10kexhibit971.htm (EX-97.1) — 6KB
• kbh-20231130_g1.jpg (GRAPHIC) — 61KB
• kbh-20231130_g10.jpg (GRAPHIC) — 94KB
• kbh-20231130_g2.jpg (GRAPHIC) — 50KB
• kbh-20231130_g3.jpg (GRAPHIC) — 50KB
• kbh-20231130_g4.jpg (GRAPHIC) — 47KB
• kbh-20231130_g5.jpg (GRAPHIC) — 41KB
• kbh-20231130_g6.jpg (GRAPHIC) — 29KB
• kbh-20231130_g7.jpg (GRAPHIC) — 24KB
• kbh-20231130_g8.jpg (GRAPHIC) — 60KB
• kbh-20231130_g9.jpg (GRAPHIC) — 56KB
• 0000795266-24-000008.txt (&nbsp;) — 14211KB
• kbh-20231130.xsd (EX-101.SCH) — 77KB
• kbh-20231130_cal.xml (EX-101.CAL) — 119KB
• kbh-20231130_def.xml (EX-101.DEF) — 445KB
• kbh-20231130_lab.xml (EX-101.LAB) — 1061KB
• kbh-20231130_pre.xml (EX-101.PRE) — 716KB
• kbh-20231130_htm.xml (XML) — 1982KB

Business

Item 1. Business 1

Risk Factors

Item 1A. Risk Factors 16

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 25 Item 1C. C ybersecurity 25

Properties

Item 2. Properties 25

Legal Proceedings

Item 3. Legal Proceedings 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 25 Information about our Executive Officers 25 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25

[Reserved]

Item 6. [Reserved] 27

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 55

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 57

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 98

Controls and Procedures

Item 9A. Controls and Procedures 98

Other Information

Item 9B. Other Information 99 Item 9C. D isclosure Regarding Foreign Jurisdictions that Prevent Inspections 99 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 99

Executive Compensation

Item 11. Executive Compensation 100

Securit y Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Securit y Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 100

C erta in Relationships and Related Transactions , and Director Independence

Item 13. C erta in Relationships and Related Transactions , and Director Independence 101

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 101 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 101

Form 10-K Summary

Item 16. Form 10-K Summary 104

Signatures

Signatures 105 PART I

BUSINESS

Item 1. BUSINESS General KB Home is one of the largest and most recognized homebuilding companies in the U.S. We have been building homes for more than 65 years, with over 680,000 homes built since our founding in 1957. We build a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed primarily for first-time and first move-up, as well as second move-up and active adult, homebuyers. We offer homes in development communities, at urban in-fill locations and as part of mixed-use projects. Our homebuilding operations represent the majority of our business, accounting for 99.5% of our total revenues in 2023. Our financial services operations, which accounted for the remaining .5% of our total revenues in 2023, offer various insurance products to our homebuyers in the markets where we build homes and provide title services in certain of those markets. Our financial services operations also provide mortgage banking services, including residential consumer mortgage loan ("mortgage loan") originations, to our homebuyers indirectly through KBHS Home Loans, LLC ("KBHS"), an unconsolidated joint venture between us and a third party. Unless the context indicates otherwise, the terms "we," "our" and "us" used in this report refer to KB Home, a Delaware corporation, and its predecessors and subsidiaries. We also use the following terms in our business with the corresponding meanings: "home" is a single-family residence, whether it is a single-family home or other type of residential property; "homes delivered" are homes for which the sale has closed and title has passed to a customer; "community" is a single development in which new homes are constructed as part of an integrated plan; "community count" is the number of communities we have open for sales with at least five homes/lots left to sell; and "product" encompasses a home's floor plan design and interior/exterior style, amenities, functions and features