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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 11-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File No. 1-09195
 KB HOME 401(k) SAVINGS PLAN
  KB HOME
10990 Wilshire Boulevard
Los Angeles, California 90024




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Financial Statements and Supplemental Schedule




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##### 



Report of Independent Registered Public Accounting Firm
    
    
    1Audited Financial StatementsStatements of Net Assets Available for Benefits
as of December 31, 2010 and 2009
    
    
    2Statements of Changes in Net Assets Available for Benefits
for the years ended December 31, 2010 and 2009
    
    
    3Notes to Financial Statements
    
    
    4Supplemental ScheduleSchedule H, Line 4(i)  Schedule of Assets (Held at End of Year)
    
    
    14Exhibit 23.1




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1




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December 31,2010
    
    
    2009AssetsInvestments, at fair value
    
    $
    120,528,737
    
    
    $
    114,001,163Receivables:Notes receivable from participants
    
    
    3,605,790
    
    
    
    3,388,765Participant contributions
    
    
    397
    
    
    
    428Employer contributions
    
    
    20,928
    
    
    
    Other
    
    
    56
    
    
    
    73Total assets
    
    
    124,155,908
    
    
    
    117,390,429LiabilitiesAdministrative expenses payable
    
    
    2,521
    
    
    
    2,521Total liabilities
    
    
    2,521
    
    
    
    2,521Net assets available for benefits
    
    $
    124,153,387
    
    
    $
    117,387,908
 See accompanying notes to financial statements.
  2




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Years ended December 31,2010
    
    
    2009Additions (Deductions)Contributions:Plan participants
    
    $
    6,560,002
    
    
    $
    6,628,963Employer, net of forfeitures
    
    
    3,584,344
    
    
    
    3,506,83110,144,346
    
    
    
    10,135,794Investment income:Interest and dividends
    
    
    3,593,804
    
    
    
    1,734,636Net appreciation in fair value of investments
    
    
    11,755,329
    
    
    
    20,824,70615,349,133
    
    
    
    22,559,342Interest on notes receivable from participants
    
    
    183,493
    
    
    
    214,380Benefits paid to participants
    
    
    (18,880,552
    )
    
    
    (21,362,983
    )Administrative expenses
    
    
    (30,941
    )
    
    
    (53,358
    )Net increase in net assets available for benefits
    
    
    6,765,479
    
    
    
    11,493,175Net assets available for benefitsBeginning of year
    
    
    117,387,908
    
    
    
    105,894,733End of year
    
    $
    124,153,387
    
    
    $
    117,387,908
 See accompanying notes to financial statements.
  3




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1.
    
    Description of the Plan
 General
   Contributions
       4




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1.
    
    Description of the Plan (continued)
 Vesting
  Notes Receivable from Participants
  Distributions and Withdrawals
  Forfeitures
   5




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1.
    
    Description of the Plan (continued)
 Administrative Expenses
  Plan Termination
  2.
    
    Summary of Significant Accounting Policies
 Basis of Accounting
   Use of Estimates
  Investment Valuation and Income Recognition
   6




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2.
    
    Summary of Significant Accounting Policies (continued)




Notes Receivable from Participants




Distributions




Recent Accounting Pronouncements


Improving Disclosures about Fair Value Measurements Fair Value
Measurements and Disclosures  Overall


Reporting Loans to
Participants by Defined Contribution Pension Plans


Amendments to Achieve
Common Fair Value Measurements and Disclosure Requirements in U.S.
GAAP and  7




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2.
    
    Summary of Significant Accounting Policies (continued)
 IFRSs Fair Value
Measurements and Disclosures
 Reclassifications
  3.
    
    Fair Value Measurements
  Level 1
    
    Fair value determined based on quoted prices in active markets for
identical assets or liabilities.Level 2
    
    Fair value determined using significant observable inputs, such as
quoted prices for similar assets or liabilities or quoted prices
for identical or similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable
for the asset or liability, or inputs that are derived principally
from or corroborated by observable market data, by correlation or
other means.Level 3
    
    Fair value determined using significant unobservable inputs, such
as pricing models, discounted cash flows, or similar techniques.
   8




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3.
    
    Fair Value Measurements (continued)
 Fair Value Measurements UsingSignificantQuoted Prices
    
    
    Other
    
    
    Significantin Active
    
    
    Observable
    
    
    UnobservableMarkets
    
    
    Inputs
    
    
    Inputs(Level 1)
    
    
    (Level 2)
    
    
    (Level 3)
    
    
    TotalMoney market fund
    
    $
    15,973,467
    
    
    $
    
    
    
    $
    
    
    
    $
    15,973,467Mutual funds:Domestic stock funds
    
    
    60,532,897
    
    
    
    
    
    
    
    
    
    
    
    60,532,897International stock funds
    
    
    11,344,098
    
    
    
    
    
    
    
    
    
    
    
    11,344,098Bond funds
    
    
    9,345,077
    
    
    
    
    
    
    
    
    
    
    
    9,345,077Balanced funds
    
    
    16,644,481
    
    
    
    
    
    
    
    
    
    
    
    16,644,481KB Home Stock Fund:KB Home Common Stock
    
    
    6,324,719
    
    
    
    
    
    
    
    
    
    
    
    6,324,719Cash-interest bearing
    
    
    
    
    
    
    363,998
    
    
    
    
    
    
    
    363,998Total investments measured at fair value
    
    $
    120,164,739
    
    
    $
    363,998
    
    
    $
    
    
    
    $
    120,528,737
  Fair Value Measurements UsingSignificantQuoted Prices
    
    
    Other
    
    
    Significantin Active
    
    
    Observable
    
    
    UnobservableMarkets
    
    
    Inputs
    
    
    Inputs(Level 1)
    
    
    (Level 2)
    
    
    (Level 3)
    
    
    TotalMoney market fund
    
    $
    17,965,730
    
    
    $
    
    
    
    $
    
    
    
    $
    17,965,730Mutual funds:Domestic stock funds
    
    
    55,730,269
    
    
    
    
    
    
    
    
    
    
    
    55,730,269International stock funds
    
    
    10,469,765
    
    
    
    
    
    
    
    
    
    
    
    10,469,765Bond funds
    
    
    8,790,787
    
    
    
    
    
    
    
    
    
    
    
    8,790,787Balanced funds
    
    
    14,132,884
    
    
    
    
    
    
    
    
    
    
    
    14,132,884KB Home Stock Fund:KB Home Common Stock
    
    
    6,531,297
    
    
    
    
    
    
    
    
    
    
    
    6,531,297Cash-interest bearing
    
    
    
    
    
    
    380,431
    
    
    
    
    
    
    
    380,431Total investments measured at fair value
    
    $
    113,620,732
    
    
    $
    380,431
    
    
    $
    
    
    
    $
    114,001,163
  9




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3.
    
    Fair Value Measurements (continued)
  4.
    
    Investments
  December 31,2010
    
    
    2009Fidelity Contrafund
    
    $
    14,741,588
    
    
    $
    13,730,567Fidelity Equity Income
    
    
    6,374,518
    
    
    
    5,999,877Fidelity Intermediate Bond
    
    
    8,152,501
    
    
    
    8,450,044Fidelity Low-Priced Stock
    
    
    8,137,348
    
    
    
    6,833,658Fidelity Magellan
    
    
    8,805,311
    
    
    
    8,646,045Fidelity Retirement Money Market
    
    
    15,973,467
    
    
    
    17,965,730KB Home Stock Fund:KB Home Common Stock
    
    
    6,324,719
    
    
    
    6,531,297
  Years ended December 31,2010
    
    
    2009Mutual funds
    
    $
    11,644,490
    
    
    $
    20,644,165KB Home Stock Fund
    
    
    110,839
    
    
    
    180,541Total
    
    $
    11,755,329
    
    
    $
    20,824,706
  10




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5.
    
    Risks and Uncertainties
  6.
    
    Tax Status of the Plan
   7.
    
    Related Party and Party-in-Interest Transactions
   11




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8.
    
    Reconciliation to Form 5500
  December 31,2010
    
    
    2009Net assets available for benefits per the Plans
financial statements
    
    $
    124,153,387
    
    
    $
    117,387,908Less employer contributions receivable at end of year
    
    
    (20,636
    )
    
    
    Less benefits payable at end of year
    
    
    
    
    
    
    (45
    )Net assets available for benefits per the Plans Form 5500
    
    $
    124,132,751
    
    
    $
    117,387,863
  Years ended December 31,2010
    
    
    2009Contributions per the Plans financial statements
    
    $
    10,144,346
    
    
    $
    10,135,794Add employer contributions receivable at beginning
of year
    
    
    
    
    
    
    288,841Less employer contributions receivable at end of year
    
    
    (20,636
    )
    
    
    Contributions per the Plans Form 5500
    
    $
    10,123,710
    
    
    $
    10,424,635
  Years ended December 31,2010
    
    
    2009Benefits paid to Participants per the Plans
financial statements
    
    $
    18,880,552
    
    
    $
    21,362,983Less benefits payable at the beginning of year
    
    
    (45
    )
    
    
    (118
    )Add benefits payable at end of year
    
    
    
    
    
    
    45Benefits paid to Participants per the Plans Form 5500
    
    $
    18,880,507
    
    
    $
    21,362,910
  12




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9.
    
    Subsequent Events
   13




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Supplemental Schedule




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Identity of Issuer,
    
    Description of Investment IncludingBorrower, Lessor,
    
    Maturity Date, Rate of Interest,
    
    Shares/
    
    
    
    
    Currentor Similar Party
    
    Collateral, Par, or Maturity Value
    
    Units
    
    
    Cost
    
    ValueAmerican Beacon
    
    American Beacon Small Cap Value
    
    
    150,877.418
    
    
    **
    
    $
    3,002,461Dimension Capital Management
    
    Dimension US Large Cap Value
    
    
    71,011.283
    
    
    **
    
    
    1,428,747Fidelity Investments*
    
    Fidelity Asset Manager
    
    
    295,231.684
    
    
    **
    
    
    4,552,473Fidelity Investments*
    
    Fidelity Consumer Discretionary
    
    
    14,043.062
    
    
    **
    
    
    344,196Fidelity Investments*
    
    Fidelity Contrafund
    
    
    217,652.267
    
    
    **
    
    
    14,741,588Fidelity Investments*
    
    Fidelity Equity Income
    
    
    144,024.353
    
    
    **
    
    
    6,374,518Fidelity Investments*
    
    Fidelity Financial
    
    
    10,466.054
    
    
    **
    
    
    644,604Fidelity Investments*
    
    Fidelity Freedom Income
    
    
    27,381.437
    
    
    **
    
    
    308,863Fidelity Investments*
    
    Fidelity Freedom 2000
    
    
    35,569.465
    
    
    **
    
    
    424,699Fidelity Investments*
    
    Fidelity Freedom 2010
    
    
    96,667.649
    
    
    **
    
    
    1,313,713Fidelity Investments*
    
    Fidelity Freedom 2020
    
    
    242,144.421
    
    
    **
    
    
    3,339,172Fidelity Investments*
    
    Fidelity Freedom 2030
    
    
    241,010.417
    
    
    **
    
    
    3,318,713Fidelity Investments*
    
    Fidelity Freedom 2040
    
    
    461,387.176
    
    
    **
    
    
    3,695,711Fidelity Investments*
    
    Fidelity Healthcare
    
    
    14,613.621
    
    
    **
    
    
    1,821,003Fidelity Investments*
    
    Fidelity Industrials
    
    
    50,697.028
    
    
    **
    
    
    1,199,492Fidelity Investments*
    
    Fidelity Intermediate Bond
    
    
    772,748.953
    
    
    **
    
    
    8,152,501Fidelity Investments*
    
    Fidelity Low-Priced Stock
    
    
    212,020.523
    
    
    **
    
    
    8,137,348Fidelity Investments*
    
    Fidelity Magellan
    
    
    122,859.092
    
    
    **
    
    
    8,805,311Fidelity Investments*
    
    Fidelity Natural Resources
    
    
    102,593.817
    
    
    **
    
    
    3,571,291Fidelity Investments*
    
    Fidelity Overseas
    
    
    108,333.416
    
    
    **
    
    
    3,518,669Fidelity Investments*
    
    Fidelity Retirement Money Market
    
    
    15,973,466.500
    
    
    **
    
    
    15,973,467Fidelity Investments*
    
    Fidelity Technology
    
    
    18,186.907
    
    
    **
    
    
    1,738,850Fidelity Investments*
    
    Fidelity Utilities Growth
    
    
    14,920.370
    
    
    **
    
    
    721,848Legg Mason
    
    Legg Mason Partners Aggressive Growth
    
    
    38,568.324
    
    
    **
    
    
    4,276,070Harbor Funds
    
    Harbor International
    
    
    41,010.209
    
    
    **
    
    
    2,483,168Managers Investment Group
    
    Managers Fremont Institutional Micro-Cap
    
    
    45,526.301
    
    
    **
    
    
    539,031Pacific Investment Management
Company
    
    PIMCO Total Return Fund Administrative Class
    
    
    109,914.835
    
    
    **
    
    
    1,192,576Fidelity Investments*
    
    Spartan US Equity Index
    
    
    64,695.951
    
    
    **
    
    
    2,877,676Franklin Templeton Investments
    
    Templeton Developing Markets A
    
    
    209,254.259
    
    
    **
    
    
    5,342,261KB Home
Common Stock*
    
    KB Home Stock FundKB Home Common Stock
    
    
    468,845.000
    
    
    **
    
    
    6,324,719Fidelity-Cash-interest bearing
    
    
    363,998.040
    
    
    **
    
    
    363,998Notes receivable from Participants *
    
    Individual notes receivable from Participants with interest rates ranging from 4.25% to 9.25%
and maturity dates through 2024
    
    
    
    
    
    
    
    
    3,605,790$
    124,134,527
 
 *
    
    Party-in-interest to the Plan.**
    
    Participant-directed investments, cost information omitted.  14




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SIGNATURES
  KB Home 401(k) Savings PlanBy:
    KB HomePlan AdministratorDated: June 29, 2011
    By:
    /s/ WILLIAM R. HOLLINGERWilliam R. HollingerSenior Vice President and Chief Accounting Officer  15




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EXHIBIT INDEX
 SequentiallyExhibit No.
    
    Description
    
    Numbered Page23.1
    
    Consent of Independent
Registered Public
Accounting Firm
    
    
    17
  16