##### Table of Contents



UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 10-K
 þ  Annual
    Report Pursuant to Section 13 or 15(d)
    of
 the Securities Exchange Act of 1934
 For the fiscal year ended November 30,
    2009
 or
 o  Transition
    Report Pursuant to Section 13 or 15(d) of
 the Securities Exchange Act of 1934
 For the transition period from
    ­
    ­ to
    ­
    ­.
 Commission File No. 001-09195
 KB HOME
 (Exact name of registrant as
    specified in its charter)
 Delaware(State or other jurisdiction of
    incorporation or organization)

95-3666267(I.R.S. Employer
    Identification No.)   10990 Wilshire Boulevard, Los Angeles, California 90024
 (Address of principal executive
    offices)
 Registrants telephone number, including area
    code:  (310) 231-4000
  Securities Registered Pursuant to Section 12(b) of the
    Act:
  Name of each exchangeTitle
    of each class

on which registeredCommon Stock (par value $1.00 per share)

New York Stock ExchangeRights to Purchase Series A Participating Cumulative
    Preferred Stock

New York Stock Exchange  Securities Registered Pursuant to Section 12(g) of the Act:
    None
  Yes þ
     No o
  Yes o 
    No þ
  Yes þ
      No o
  Yes o
      No o
  S-K 10-K Form 10-K. þ
  12b-2
 Large
    accelerated
    filerþ
    Accelerated
    filer o
    Non-accelerated
    filer o
    Smaller
    reporting
    company o  Rule 12b-2 Yes o  No þ
      Documents Incorporated by Reference
  Portions of the registrants definitive Proxy Statement
    for the 2010 Annual Meeting of Stockholders (incorporated into
    Part III).




---



##### 



KB
    HOME
 FORM 10-K
 FOR THE YEAR ENDED NOVEMBER 30, 2009
  TABLE OF CONTENTS
  PageNumberPART IItem 1.

Business


1Item 1A.

Risk Factors


12Item 1B.

Unresolved Staff Comments


21Item 2.

Properties


21Item 3.

Legal Proceedings


21Item 4.

Submission of Matters to a Vote of Security
    Holders


21PART IIItem 5.

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


23Item 6.

Selected Financial Data


25Item 7.

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


26Item 7A.

Quantitative and Qualitative Disclosures About
    Market Risk


56Item 8.

Financial Statements and Supplementary Data


57Item 9.

Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


100Item 9A.

Controls and Procedures


100Item 9B.

Other Information


101PART IIIItem 10.

Directors, Executive Officers and Corporate
    Governance


102Item 11.

Executive Compensation


102Item 12.

Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


102Item 13.

Certain Relationships and Related Transactions,
    and Director Independence


103Item 14.

Principal Accountant Fees and Services


103PART IVItem 15.

Exhibits and Financial Statement Schedules


104Signatures


109EX-10.53EX-10.54EX-10.55EX-12.1EX-21EX-23EX-31.1EX-31.2EX-32.1EX-32.2




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##### Table of Contents



PART
    I
  Item
    1. BUSINESS
  General
      move-up
        (310) 231-4000 KB-HOMES.
 1




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##### Table of Contents



Markets
    Segment

State(s)

Major Market(s)West Coast

California

Fresno, Los Angeles/Ventura, Orange County, Riverside,
    Sacramento, San Bernardino, San Diego, San Jose/Oakland and
    StocktonSouthwest

Arizona

Phoenix and TucsonNevada

Las Vegas and RenoCentral

Colorado

DenverTexas

Austin, Dallas/Fort Worth, Houston and San AntonioSoutheast

Florida

Daytona Beach, Fort Myers, Jacksonville, Lakeland, Orlando,
    Sarasota and TampaMaryland

Washington, D.C.North Carolina

Charlotte and RaleighSouth Carolina

Charleston and ColumbiaVirginia

Washington, D.C.   Segment Operating Information.
  Years Ended November 30,2009

2008

2007West Coast:Homes delivered


2,453



2,972



4,957Percentage of total homes delivered


29
%


24
%


21
%Average selling price

$
315,100


$
354,700


$
433,600Total revenues (in millions) (a)

$
812.2


$
1,055.1


$
2,203.3Southwest:Homes delivered


1,202



2,393



4,855Percentage of total homes delivered


14
%


19
%


20
%Average selling price

$
172,000


$
229,200


$
258,500Total revenues (in millions) (a)

$
218.1


$
618.0


$
1,349.6Central:Homes delivered


2,771



3,348



6,310Percentage of total homes delivered


33
%


27
%


27
%Average selling price

$
155,500


$
175,000


$
167,800Total revenues (in millions) (a)

$
434.4


$
594.3


$
1,077.3Southeast:Homes delivered


2,062



3,725



7,621Percentage of total homes delivered


24
%


30
%


32
%Average selling price

$
168,600


$
201,800


$
229,400Total revenues (in millions) (a)

$
351.7


$
755.8


$
1,770.4Total:Homes delivered


8,488



12,438



23,743Average selling price

$
207,100


$
236,400


$
261,600Total revenues (in millions) (a)

$
1,816.4


$
3,023.2


$
6,400.6     (a)
    Total revenues include revenues from housing and land sales.  Unconsolidated Joint Ventures.
 2




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##### Table of Contents



Strategy
      KBnxt Operational Business Model.
  
    gaining a detailed understanding of consumer location and
    product preferences through regular surveys;
    managing our working capital and reducing our operating risks by
    acquiring developed and entitled land at reasonable prices in
    markets with high growth potential, and disposing of land and
    interests in land that no longer meet our strategic or
    investment goals;
    using our knowledge of consumer preferences to design, construct
    and deliver the products homebuyers desire;
    in general, commencing construction of a home only after a
    purchase contract has been signed;
    building a backlog of net orders and reducing the time from
    initial construction to final delivery of homes to customers;
    establishing an even flow of production of high-quality homes at
    the lowest possible cost; and
    offering customers affordable base prices and the opportunity to
    customize their homes through choice of location, floor plans
    and interior design options.      Strategic Objectives.
  
    Positioning our operations to maintain ownership or control over
    a forecasted
    three-to-four
    year supply of developable land and a balanced geographic
    footprint, while continuously evaluating potential
    growth  opportunities in or near our existing markets.
    We believe this approach enables us to efficiently capitalize on
    the different rates at which we expect housing markets to
    stabilize. In addition, keeping our land inventory at what we
    believe is a prudent and manageable level and in line with our
    future sales expectations maximizes the use of our working
    capital, enhances our liquidity and helps us maintain a strong
    balance sheet to support strategic investments for long-term
    growth. 3




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##### Table of Contents




    Providing the best value and choice in homes and options for our
    core customers  first-time, first
    move-up and
    active adult homebuyers. By promoting value and choice through
    an affordable base price and product customization through
    options, including many environmentally friendly options, we
    believe we stand out from other homebuilders and sellers of
    existing homes (including lender-owned homes acquired through
    foreclosures and short sales), and generate higher revenues.
    To help achieve the above objective, enhancing the affordability
    of our homes by redesigning and reengineering our products,
    building smaller homes, reducing cycle times (i.e., the
    time between the sale of a home and its delivery to a homebuyer)
    and lowering our direct construction costs. By making our homes
    more affordable for our value-conscious core homebuyers while
    lowering our production costs, we believe we will be able to
    compete effectively with sellers of existing homes (including
    lender-owned homes acquired through foreclosures and short
    sales), which we see as our primary competition, generate
    revenues while maintaining margins, and drive sustainable profit
    growth over the long term.
    As a complement to providing the best value and choice,
    generating high levels of customer satisfaction and producing
    high quality homes. We believe achieving high customer
    satisfaction levels is key to our long-term performance, and
    delivering quality homes is critical to achieving high customer
    satisfaction.
    Restoring the profitability of our homebuilding operations by
    continuing to align our cost structure (including overhead) with
    the expected size and growth of our business, generating and
    preserving free cash flow and maximizing the performance of our
    invested capital.  The Open
    Series TM The Open Series Value-engineering
  Marketing Strategy. TM large-production
    My Home.
    My
    Earth. TM My Home.
    My Earth. TM
  move-up
 4




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##### Table of Contents



Sales Strategy.
  Customer
    Service and Quality Control
      Local
    Expertise
    Community
    Development and Land Inventory Management
      Land Acquisition and Land Development.
 5




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##### Table of Contents



in-house
        after-tax
   6




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##### Table of Contents



Total LotsHomes/Lots in

Land Under

Lots Under

Owned orProduction

Development

Option

Under Option2009

2008

2009

2008

2009

2008

2009

2008West Coast


4,685



7,257



2,219



1,826



1,062



1,018



7,966



10,101Southwest


3,511



4,853



1,677



1,784



3,593



3,551



8,781



10,188Central


5,796



7,643



2,529



2,454



1,797



1,840



10,122



11,937Southeast


3,868



5,326



4,078



4,369



2,650



5,102



10,596



14,797Total


17,860



25,079



10,503



10,433



9,102



11,511



37,465



47,023       Total LotsHomes/Lots in


Land Under


Lots Under


Owned orProduction


Development


Option


Under Option2009


2008


2009


2008


2009


2008


2009


2008West Coast

$
530,030


$
854,522


$
80,229


$
52,339


$
29,390


$
68,600


$
639,649


$
975,461Southwest


116,779



192,530



94,431



96,073



8,409



24,673



219,619



313,276Central


240,825



300,454



41,405



38,688



42,077



53,358



324,307



392,500Southeast


190,488



252,541



115,611



127,241



11,720



45,697



317,819



425,479Total

$
1,078,122


$
1,600,047


$
331,676


$
314,341


$
91,596


$
192,328


$
1,501,394


$
2,106,716   Home Construction and Sale.
  My Home. My Earth. even-flow
 7




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##### Table of Contents



Backlog
         8




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##### Table of Contents



UnconsolidatedWest Coast

Southwest

Central

Southeast

Total

Joint VenturesHomes delivered2009First


351



267



447



380



1,445



23Second


569



241



525



426



1,761



55Third


669



314



783



474



2,240



37Fourth


864



380



1,016



782



3,042



26Total


2,453



1,202



2,771



2,062



8,488



1412008First


614



740



899



675



2,928



75Second


603



534



863



810



2,810



74Third


731



425



745



887



2,788



45Fourth


1,024



694



841



1,353



3,912



68Total


2,972



2,393



3,348



3,725



12,438



262Net orders2009First


459



222



622



524



1,827



28Second


928



359



1,048



575



2,910



45Third


591



355



808



404



2,158



17Fourth


417



200



491



338



1,446



21Total


2,395



1,136



2,969



1,841



8,341



1112008First


539



186



231



493



1,449



48Second


977



760



964



1,499



4,200



131Third


361



282



506



180



1,329



39Fourth


375



207



353



361



1,296



17Total


2,252



1,435



2,054



2,533



8,274



235Cancellation rates2009First


26%



27%



29%



28%



28%



48%Second


16%



18%



20%



26%



20%



31%Third


23%



20%



28%



32%



27%



32%Fourth


20%



24%



40%



30%



31%



16%Total


21%



22%



28%



29%



25%



34%2008First


41%



56%



70%



50%



53%



45%Second


29%



21%



31%



26%



27%



24%Third


48%



37%



43%



74%



51%



57%Fourth


42%



40%



48%



50%



46%



71%Total


38%



34%



45%



43%



41%



43%Ending backlog  homes2009First


689



303



892



767



2,651



76Second (a)


1,048



421



1,419



916



3,804



62Third


970



462



1,444



846



3,722



42Fourth


523



282



919



402



2,126



372008First


1,115



752



1,343



1,633



4,843



182Second


1,489



978



1,444



2,322



6,233



239Third


1,119



835



1,205



1,615



4,774



233Fourth (a)


581



348



717



623



2,269



71 9




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##### Table of Contents



UnconsolidatedWest Coast

Southwest

Central

Southeast

Total

Joint VenturesEnding backlog  value, in thousands2009First

$
214,997


$
57,169


$
153,538


$
134,135


$
559,839


$
30,180Second (a)


334,600



72,429



228,723



161,104



796,856



24,118Third


293,329



75,439



218,430



146,896



734,094



15,456Fourth


174,445



46,135



137,271



64,645



422,496



15,5772008First

$
438,505


$
179,114


$
236,725


$
376,872


$
1,231,216


$
77,196Second


516,073



222,279



260,404



467,141



1,465,897



101,748Third


391,525



190,279



230,154



321,321



1,133,279



136,918Fourth (a)


211,713



74,488



120,954



114,231



521,386



33,192     (a)
    
    Ending backlog amounts have been adjusted to reflect the
    consolidation of previously unconsolidated joint ventures during
    the second quarter of 2009 and the fourth quarter of 2008.  Land and
    Raw Materials
    pre-made,
  Customer
    Financing
    Discontinued
    Operations
    Employees
     10




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Competition
    and Other Factors
      Financing
    Environmental
    Matters
    Access to
    Our Information
  http://kbhome.com, 1-800-SEC-0330
 11




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##### Table of Contents



Item 1A.  RISK
    FACTORS    The homebuilding industry is experiencing a prolonged and
    severe downturn that may continue for an indefinite period and
    adversely affect our business and results of operations compared
    to prior periods.
      Further tightening of mortgage lending or mortgage
    financing requirements or further turmoil in credit and mortgage
    lending markets could adversely affect the availability of
    credit for some potential purchasers of our homes and thereby
    reduce our sales.
  move-up
   12




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##### Table of Contents



Our
    strategies in responding to the adverse conditions in the
    homebuilding industry have had limited success, and the
    continued implementation of these and other strategies may not
    be successful.
    Our
    business is cyclical and is significantly affected by changes in
    general and local economic conditions.
    
    short- and long-term interest rates;
    the availability of financing for homebuyers;
    consumer confidence generally and the confidence of potential
    homebuyers in particular;
    U.S. and global financial system and credit market stability;
    private and federal mortgage financing programs and federal and
    state regulation of lending and appraisal practices;
    federal and state income tax provisions, including provisions
    for the deduction of mortgage interest payments;
    housing demand from population growth and demographic changes,
    among other factors;
    the supply of available new or existing homes (including
    lender-owned homes acquired through foreclosures and short
    sales) and other housing alternatives, such as apartments and
    other residential rental property;
    employment levels and job and personal income growth; and
    real estate taxes.         13




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##### Table of Contents



Supply
    shortages and other risks related to demand for building
    materials
    and/or
    skilled labor could increase costs and delay
    deliveries.
    Inflation
    may adversely affect us by increasing costs that we may not be
    able to recover, particularly if sales prices
    decrease.
    Reduced
    home sales may impair our ability to recoup development costs or
    force us to absorb additional costs.
    The value of the land and housing inventory we own or
    control may fall significantly and our profits may
    decrease.
   14




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##### Table of Contents



Some homebuyers may cancel their home purchases because
    the required deposits are small and generally refundable.
    Our long-term success depends on the availability of
    improved lots and undeveloped land that meet our land investment
    criteria.
    Home
    prices and sales activity in the particular markets and regions
    in which we do business affect our results of operations because
    our business is concentrated in these markets.
    Interest
    rate increases or changes in federal lending programs or
    regulation could lower demand for our homes.
       15




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##### Table of Contents



and/or
    Tax
    law changes could make home ownership more expensive or less
    attractive.
      We are subject to substantial legal and regulatory
    requirements regarding the development of land, the homebuilding
    process and protection of the environment, which can cause us to
    suffer delays and incur costs associated with compliance and
    which can prohibit or restrict homebuilding activity in some
    regions or areas.
             16




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##### Table of Contents



Homebuilding and financial services are very competitive,
    and competitive conditions could adversely affect our business
    or our financial results.
  lender-owned
  
    our delivering fewer homes;
    our selling homes at lower prices;
    our offering or increasing sales incentives, discounts or price
    concessions;
    our experiencing lower profit margins;
    declining new home sales or increasing cancellations by
    homebuyers of their home purchase contracts with us;
    impairments in the value of our land inventory and other assets;
    difficulty in acquiring desirable land that meets our investment
    return criteria, and in selling our interests in land that no
    longer meet such criteria on favorable terms;
    difficulty in our acquiring raw materials and skilled management
    and labor at acceptable prices; or
    delays in construction of our homes.    Homebuilding
    is subject to warranty and liability claims in the ordinary
    course of business that can be significant.
     17




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##### Table of Contents



Because
    of the seasonal nature of our business, our quarterly operating
    results fluctuate.
    Failure
    to comply with the covenants and conditions imposed by the
    agreements governing our indebtedness could restrict future
    borrowing or cause our debt to become immediately due and
    payable.
    We
    participate in certain unconsolidated joint ventures where we
    may be adversely impacted by the failure of the unconsolidated
    joint venture or the other partners in the unconsolidated joint
    venture to fulfill their obligations.
   18




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##### Table of Contents



The
    downturn in the housing market and the continuation of the
    disruptions in the credit markets could limit our ability to
    access capital and increase our costs of capital or stockholder
    dilution.
        Our
    net operating loss carryforwards could be substantially limited
    if we experience an ownership change as defined in the Internal
    Revenue Code.
         19




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##### Table of Contents



A decline in our tangible net worth and the resulting
    increase in our leverage ratio may place burdens on our ability
    to comply with the terms of our indebtedness, may restrict our
    ability to operate and may prevent us from fulfilling our
    obligations.
    
    limit our ability to obtain future financing for working
    capital, capital expenditures, acquisitions, debt service
    requirements or other requirements;
    require us to dedicate a substantial portion of our cash flow
    from operations to the payment of our debt and reduce our
    ability to use our cash flow for other purposes;
    impact our flexibility in planning for, or reacting to, changes
    in our business;
    place us at a competitive disadvantage because we have more debt
    than some of our competitors; and
    make us more vulnerable in the event of continued weakness or a
    further downturn in our business or in general economic
    conditions.      Our ability to obtain external financing could be
    adversely affected by a negative change in our credit rating by
    a third party rating agency.
    We may have difficulty in continuing to obtain the
    additional financing required to operate and develop our
    business.
    Our results of operations could be adversely affected if
    we are unable to obtain performance bonds.
   20




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##### Table of Contents



and/or
  Item 1B.  UNRESOLVED
    STAFF COMMENTS   Item 2.  PROPERTIES      Item 3.  LEGAL
    PROCEEDINGS  ERISA
    Litigation
  Bagley et al., v. KB
    Home, et al.
    Other
    Matters
      Item 4.  SUBMISSION
    OF MATTERS TO A VOTE OF SECURITY HOLDERS   21




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##### Table of Contents



EXECUTIVE
    OFFICERS OF THE REGISTRANT
    Year

YearsAssumed

at

Other Positions and OtherPresent

KB

Business Experience within theName

Age

Present Position

Position

Home

Last Five Years (a)

From  ToJeffrey T. Mezger


54


President and Chief
    Executive Officer (b)


2006



16


Executive Vice President and Chief Operating Officer

1999-2006Wendy C. Shiba


59


Executive Vice President, General Counsel and Secretary


2007



2


Senior Vice President, Chief Legal Officer and Secretary,
    PolyOne Corporation (a global provider of specialized polymer
    materials, services and solutions)

2006-2007Vice President, Chief Legal Officer and Secretary, PolyOne
    Corporation

2001-2006Glen W. Barnard


65


Senior Vice President, KBnxt Group


2006



11


Regional General Manager

2004-2006William R. Hollinger


51


Senior Vice President and


2007



22


Senior Vice President and Controller

2001-2006Chief Accounting OfficerWendy L. Marlett


46


Senior Vice President,


2008



15


Senior Vice President of Sales and Marketing

2005-2008Sales, Marketing and
    Communications









Senior Vice President of Marketing and Communications

2002-2005Kelly K. Masuda


42


Senior Vice President and
    Treasurer


2005



6


Senior Vice President, Capital Markets and Treasurer

2005Vice President, Capital Markets and Treasurer

2003-2005Thomas F. Norton


39


Senior Vice President, Human Resources


2009



1


Chief Human Resources Officer, BJs Restaurants, Inc. (an
    owner and operator of national full service restaurants)

2006-2009Senior Vice President of Human Resources, American Golf
    Corporation (a worldwide golf course management firm)

2003-2006   (a)
    All positions described were with us, unless otherwise indicated.  (b)
    Mr. Mezger has served as a director since 2006.   22




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##### Table of Contents



PART II  Item 5.
    MARKET
    FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS
    AND ISSUER PURCHASES OF EQUITY SECURITIES    Year Ended November 30, 2009

Year Ended November 30, 2008Dividends

Dividends





Dividends

DividendsHigh

Low

Declared

Paid

High

Low

Declared

PaidFirst Quarter

$
16.38


$
8.70


$
.0625


$
.0625


$
28.99


$
15.76


$
.25


$
.25Second Quarter


19.61



7.85



.0625



.0625



28.93



19.62



.50



.25Third Quarter


19.00



11.15



.0625



.0625



21.93



13.16







.25Fourth Quarter


20.70



13.37



.0625



.0625



25.43



6.90



.0625



.0625         23




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##### Table of Contents



Stock
    Performance Graph
    Comparison
    of Five-Year Cumulative Total Return
    Among KB Home, S&P 500 Index, S&P Homebuilding
    Index and Dow Jones Home Construction Index
  
   24




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##### Table of Contents



Item 6.  SELECTED
    FINANCIAL DATA    KB
    HOME
 SELECTED FINANCIAL INFORMATION
 (In Thousands, Except Per Share Amounts)
  Years Ended November 30,2009


2008


2007


2006


2005Homebuilding:Revenues

$
1,816,415


$
3,023,169


$
6,400,591


$
9,359,843


$
8,123,313Operating income (loss)


(236,520
)


(860,643
)


(1,358,335
)


570,316



1,188,935Total assets


3,402,565



3,992,148



5,661,564



7,825,339



6,881,486Mortgages and notes payable


1,820,370



1,941,537



2,161,794



2,920,334



2,211,935Financial services:Revenues

$
8,435


$
10,767


$
15,935


$
20,240


$
31,368Operating income


5,184



6,278



11,139



14,317



10,968Total assets


33,424



52,152



44,392



44,024



29,933Discontinued operations:Total assets

$



$



$



$
1,394,375


$
1,102,898Consolidated:Revenues

$
1,824,850


$
3,033,936


$
6,416,526


$
9,380,083


$
8,154,681Operating income (loss)


(231,336
)


(854,365
)


(1,347,196
)


584,633



1,199,903Income (loss) from continuing operations


(101,784
)


(976,131
)


(1,414,770
)


392,947



754,534Income from discontinued operations, net of income taxes (a)










485,356



89,404



69,178Net income (loss)


(101,784
)


(976,131
)


(929,414
)


482,351



823,712Total assets


3,435,989



4,044,300



5,705,956



9,263,738



8,014,317Mortgages and notes payable


1,820,370



1,941,537



2,161,794



2,920,334



2,211,935Stockholders equity


707,224



830,605



1,850,687



2,922,748



2,773,797Basic earnings (loss) per share:Continuing operations

$
(1.33
)

$
(12.59
)

$
(18.33
)

$
4.99


$
9.21Discontinued operations










6.29



1.13



.85Basic earnings (loss) per share

$
(1.33
)

$
(12.59
)

$
(12.04
)

$
6.12


$
10.06Diluted earnings (loss) per share:Continuing operations

$
(1.33
)

$
(12.59
)

$
(18.33
)

$
4.74


$
8.54Discontinued operations










6.29



1.08



.78Diluted earnings (loss) per share

$
(1.33
)

$
(12.59
)

$
(12.04
)

$
5.82


$
9.32Cash dividends declared per common share

$
.25


$
.8125


$
1.00


$
1.00


$
.75   (a)
    Discontinued operations consist only of our French operations,
    which have been presented as discontinued operations for all
    periods presented. Income from discontinued operations, net of
    income taxes, in 2007 includes a gain of $438.1 million
    realized on the sale of our French operations. 25




---



##### Table of Contents



Item 7.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
    RESULTS OF OPERATIONS  RESULTS
    OF OPERATIONS
  Overview.
  Years Ended November 30,2009


2008


2007Revenues:Homebuilding

$
1,816,415


$
3,023,169


$
6,400,591Financial services


8,435



10,767



15,935Total

$
1,824,850


$
3,033,936


$
6,416,526Pretax income (loss):Homebuilding

$
(330,383
)

$
(991,749
)

$
(1,494,606
)Financial services


19,199



23,818



33,836Loss from continuing operations before income taxes


(311,184
)


(967,931
)


(1,460,770
)Income tax benefit (expense)


209,400



(8,200
)


46,000Loss from continuing operations


(101,784
)


(976,131
)


(1,414,770
)Income from discontinued operations, net of income taxes










47,252Gain on sale of discontinued operations, net of income taxes










438,104Net loss

$
(101,784
)

$
(976,131
)

$
(929,414
)Basic and diluted earnings (loss) per share:Continuing operations

$
(1.33
)

$
(12.59
)

$
(18.33
)Discontinued operations










6.29Basic and diluted loss per share

$
(1.33
)

$
(12.59
)

$
(12.04
)     The Open Series
 26




---



##### Table of Contents



The Open
    Series
             27




---



##### Table of Contents



HOMEBUILDING
      Years Ended November 30,2009


2008


2007Revenues:Housing

$
1,758,157


$
2,940,241


$
6,211,563Land


58,258



82,928



189,028Total


1,816,415



3,023,169



6,400,591Costs and expenses:Construction and land costsHousing


(1,643,757
)


(3,149,083
)


(6,563,082
)Land


(106,154
)


(165,732
)


(263,297
)Total


(1,749,911
)


(3,314,815
)


(6,826,379
)Selling, general and administrative expenses


(303,024
)


(501,027
)


(824,621
)Goodwill impairment






(67,970
)


(107,926
)Total


(2,052,935
)


(3,883,812
)


(7,758,926
)Operating loss

$
(236,520
)

$
(860,643
)

$
(1,358,335
)Homes delivered


8,488



12,438



23,743Average selling price

$
207,100


$
236,400


$
261,600Housing gross margin


6.5
%


(7.1
)%


(5.7
)%Selling, general and administrative expenses as a percentage of
    housing revenues


17.2
%


17.0
%


13.3
%Operating loss as a percentage of homebuilding revenues


(13.0
)%


(28.5
)%


(21.2
)%  28




---



##### Table of Contents



Revenues. year-over-year
    year-over-year
  year-over-year
  Year-over-year,
  Year-over-year,
    Operating Loss.
   29




---



##### Table of Contents



The Open Series
          and/or
  year-over-year year-over-year
  Goodwill Impairment.
 30




---



##### Table of Contents



Interest Income. year-over-year
  Loss on Early Redemption/Interest Expense, Net of Amounts
    Capitalized. 3 8 3 4 1 2
    Equity in Loss of Unconsolidated Joint
    Ventures. year-over-year year-over-year
 31




---



##### Table of Contents



Non-GAAP
    Financial Measures
    Housing Gross Margin, Excluding Inventory Impairment and Land
    Option Contract Abandonment Charges.
  Years Ended November 30,2009


2008


2007Housing revenues

$
1,758,157


$
2,940,241


$
6,211,563Housing construction and land costs


(1,643,757
)


(3,149,083
)


(6,563,082
)Housing gross margin


114,400



(208,842
)


(351,519
)Add: Inventory impairment and land option contract abandonment
    charges


157,641



520,543



1,179,214Housing gross margin, excluding inventory impairment and land
    option contract abandonment charges

$
272,041


$
311,701


$
827,695Housing gross margin as a percentage of housing revenues


6.5
%


(7.1
)%


(5.7
)%Housing gross margin, excluding inventory impairment and land
    option contract abandonment charges, as a percentage of housing
    revenues


15.5
%


10.6
%


13.3
%    32




---



##### Table of Contents



Ratio of Net Debt to Total Capital.
  November 30,2009


2008Mortgages and notes payable

$
1,820,370


$
1,941,537Stockholders equity


707,224



830,605Total capital

$
2,527,594


$
2,772,142Ratio of debt to capital


72.0
%


70.0
%Mortgages and notes payable

$
1,820,370


$
1,941,537Less: Cash and cash equivalents and restricted cash


(1,289,007
)


(1,250,803
)Net debt


531,363



690,734Stockholders equity


707,224



830,605Total capital

$
1,238,587


$
1,521,339Ratio of net debt to total capital


42.9
%


45.4
%     HOMEBUILDING
    SEGMENTS
    Years Ended November 30,2009


2008


2007West Coast:Revenues

$
812,207


$
1,055,021


$
2,203,303Construction and land costs


(792,182
)


(1,202,054
)


(2,635,415
)Selling, general and administrative expenses


(79,659
)


(120,446
)


(213,133
)Operating loss


(59,634
)


(267,479
)


(645,245
)Other, net


(28,808
)


(30,568
)


(20,600
)Pretax loss

$
(88,442
)

$
(298,047
)

$
(665,845
)Southwest:Revenues

$
218,096


$
618,014


$
1,349,570Construction and land costs


(210,268
)


(722,643
)


(1,492,933
)Selling, general and administrative expenses


(35,485
)


(69,865
)


(124,462
)Operating loss


(27,657
)


(174,494
)


(267,825
)Other, net


(20,915
)


(37,700
)


(19,514
)Pretax loss

$
(48,572
)

$
(212,194
)

$
(287,339
) 33




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##### Table of Contents



Years Ended November 30,2009


2008


2007Central:Revenues

$
434,400


$
594,317


$
1,077,304Construction and land costs


(391,274
)


(570,512
)


(970,912
)Selling, general and administrative expenses


(62,645
)


(96,306
)


(163,689
)Operating loss


(19,519
)


(72,501
)


(57,297
)Other, net


(9,863
)


(10,288
)


(6,913
)Pretax loss

$
(29,382
)

$
(82,789
)

$
(64,210
)Southeast:Revenues

$
351,712


$
755,817


$
1,770,414Construction and land costs


(346,728
)


(808,354
)


(1,718,548
)Selling, general and administrative expenses


(40,092
)


(125,798
)


(213,536
)Operating loss


(35,108
)


(178,335
)


(161,670
)Other, net


(43,306
)


(80,233
)


(68,750
)Pretax loss

$
(78,414
)

$
(258,568
)

$
(230,420
)     Percentage





Percentageof





ofTotal





Total


AverageHousing


Housing


Homes


Homes


SellingYears Ended November 30,

Revenues


Revenues


Delivered


Delivered


Price(in thousands)2009West Coast

$
772,886



44%



2,453



29%


$
315,100Southwest


206,747



12



1,202



14



172,000Central


430,799



24



2,771



33



155,500Southeast


347,725



20



2,062



24



168,600Total

$
1,758,157



100%



8,488



100%


$
207,1002008West Coast

$
1,054,256



36%



2,972



24%


$
354,700Southwest


548,544



19



2,393



19



229,200Central


585,826



20



3,348



27



175,000Southeast


751,615



25



3,725



30



201,800Total

$
2,940,241



100%



12,438



100%


$
236,4002007West Coast

$
2,149,547



35%



4,957



21%


$
433,600Southwest


1,254,932



20



4,855



20



258,500Central


1,058,985



17



6,310



27



167,800Southeast


1,748,099



28



7,621



32



229,400Total

$
6,211,563



100%



23,743



100%


$
261,600   West Coast
 34




---



##### Table of Contents



year-over-year
    Southwest year-over-year
     35




---



##### Table of Contents



Central year-over-year
        Southeast
 36




---



##### Table of Contents



year-over-year
      FINANCIAL
    SERVICES SEGMENT
      Years Ended November 30,2009


2008


2007Revenues

$
8,435


$
10,767


$
15,935Expenses


(3,251
)


(4,489
)


(4,796
)Equity in income of unconsolidated joint venture


14,015



17,540



22,697Pretax income

$
19,199


$
23,818


$
33,836Total originations (a):Loans


7,170



10,141



16,869Principal

$
1,317,904


$
2,073,382


$
3,934,336Percentage of homebuyers using KB Home Mortgage


84
%


80
%


72
%Loans sold to third parties (a):Loans


6,967



11,289



16,909Principal

$
1,275,688


$
2,328,702


$
3,969,827     (a)
    Loan originations and sales occur within KB Home Mortgage. 37




---



##### Table of Contents



Revenues. year-over-year
    Expenses. year-over-year year-over-year
  Equity in Income of Unconsolidated Joint
    Venture. year-over-year
  contract-by-contract
  INCOME
    TAXES
     38




---



##### Table of Contents



DISCONTINUED
    OPERATIONS
     39




---



##### Table of Contents



LIQUIDITY
    AND CAPITAL RESOURCES
  Overview.
    Capital Resources. 5 8
  3 4
       40




---



##### Table of Contents



November 30, 2009CovenantFinancial Covenant

Requirement

ActualMinimum consolidated tangible net worth

$
278.2 million


$
700.9 millionCoverage Ratio


(a)



(a)Leverage Ratio (b)


≤1.00



.39Investment in subsidiaries and joint ventures as a percentage of
    Adjusted Consolidated Tangible Net Worth


<35
%


11
%Borrowing base in excess of senior indebtedness (as defined)


Greater than zero


$
474.7 million     (a)
    
    Our Coverage Ratio of .77 was less than 1.00 to 1.00 as of
    November 30, 2009. With our Leverage Ratio as of
    August 31, 2009 below 1.00 to 1.00, we maintained an
    Interest Reserve Account through the fourth quarter of 2009 to
    remain in compliance with the terms of the Credit Facility. The
    Interest Reserve Account had a balance of $114.3 million at
    November 30, 2009. With our Leverage Ratio as of
    November 30, 2009 below 1.00 to 1.00, we will continue to
    maintain the Interest Reserve Account in the first quarter of
    2010, but the balance is expected to decrease to $90.2 million
    by the end of that period, reflecting a decrease in the
    applicable multiplier from four to three based on the number of
    fiscal quarters remaining until the Credit Facility matures in
    November 2010.(b)
    
    The Leverage Ratio requirement varies based on our Coverage
    Ratio. If our Coverage Ratio is greater than or equal to 1.50 to
    1.00, the Leverage Ratio requirement is less than 2.00 to 1.00.
    If our Coverage Ratio is between 1.00 and 1.50 to 1.00, the
    Leverage Ratio requirement is less than 1.25 to 1.00. If our
    Coverage Ratio is less than 1.00 to 1.00, the Leverage Ratio
    requirement is less than or equal to 1.00 to 1.00. 41




---



##### Table of Contents



November 30, 2008CovenantFinancial Covenant

Requirement

ActualMinimum consolidated tangible net worth

$
278.2 million


$
827.9 millionCoverage Ratio


(a)



(a)Leverage Ratio


≤1.00



.47Investment in subsidiaries and joint ventures as a percentage of
    Adjusted Consolidated Tangible Net Worth


<35
%


15
%Borrowing base in excess of senior indebtedness (as defined)


Greater than zero


$
825.0 million     (a)
    
    Our Coverage Ratio of negative .27 was less than 1.00 to 1.00 as
    of November 30, 2008. With our Leverage Ratio as of
    August 31, 2008 below 1.00 to 1.00, we established the
    Interest Reserve Account with a balance of $115.4 million
    in the fourth quarter of 2008 to remain in compliance with the
    terms of the Credit Facility. The Interest Reserve Account had a
    balance of $115.4 million at November 30, 2008.          and/or
   42




---



##### Table of Contents



Consolidated Cash Flows.
  Operating Activities.
        Investing Activities.
    Financing Activities.
 43




---



##### Table of Contents



Shelf Registration Statement.
  Share Repurchase Program.
    OFF-BALANCE
    SHEET ARRANGEMENTS
  and/or
  and/or
 44




---



##### Table of Contents



and/or and/or and/or
   45




---



##### Table of Contents



46




---



##### Table of Contents



CONTRACTUAL
    OBLIGATIONS AND COMMERCIAL COMMITMENTS
    Payments due by PeriodTotal


2010


2011-2012


2013-2014


ThereafterContractual obligations:Long-term debt

$
1,820,370


$
18,474


$
245,294


$
249,358


$
1,307,244Interest


644,431



112,365



216,496



200,001



115,569Operating lease obligations


40,150



11,657



17,950



9,033



1,510Total (a)

$
2,504,951


$
142,496


$
479,740


$
458,392


$
1,424,323     (a)
    
    Total contractual obligations exclude our accrual for uncertain
    tax positions recorded for financial reporting purposes as of
    November 30, 2009 because we are unable to make a
    reasonable estimate of cash settlements with the respective
    taxing authorities for all periods presented. We anticipate
    potential cash settlement requirements for 2010 to range from
    $3.0 million to $4.0 million.   47




---



##### Table of Contents



CRITICAL
    ACCOUNTING POLICIES
    Homebuilding Revenue Recognition.
  Inventories and Cost of Sales.
      Inventory Impairments and Land Option Contract
    Abandonments.
 48




---



##### Table of Contents



and/or and/or
      Warranty Costs.
 49




---



##### Table of Contents



Insurance. wrap-up
    Stock-Based Compensation. share-based
  Goodwill.
 50




---



##### Table of Contents



Income Taxes.
 51




---



##### Table of Contents



and/or
      and/or
  RECENT
    ACCOUNTING PRONOUNCEMENTS
        2009-17, 2009-17
 52




---



##### Table of Contents



2009-17
  OUTLOOK
    The Open Series
    and/or and/or and/or
  market-by-market
   53




---



##### Table of Contents



The Open Series.
    FORWARD-LOOKING
    STATEMENTS
   54




---



##### Table of Contents



The Open Series
 55




---



##### Table of Contents



Item 7A.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK      Fair Value atAs of November 30, 2009 for the Years Ended November
    30,

November 30,2010

2011

2012

2013

2014

Thereafter

Total

2009Long-term debtFixed Rate

$



$
99,800


$



$



$
249,358


$
1,307,244


$
1,656,402


$
1,587,201Weighted Average Interest Rate



%


6.4
%



%



%


5.8
%


7.0
%   Fair Value atAs of November 30, 2008 for the Years Ended November
    30,

November 30,2009

2010

2011

2012

2013

Thereafter

Total

2008Long-term debtFixed Rate

$
200,000
(a)

$



$
348,908


$



$



$
1,296,261


$
1,845,169


$
1,270,979Weighted Average Interest Rate


8.6
%



%


6.4
%



%



%


6.3
%   (a) The fixed rate debt matured and
    was redeemed by us on December 15, 2008.
 56




---



##### Table of Contents



Item
    8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY
    DATA  KB
    HOME
 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
   
 PageNumberConsolidated Statements of Operations for the
    Years Ended November 30, 2009, 2008 and 2007


58Consolidated Balance Sheets as of November 30,
    2009 and 2008


59Consolidated Statements of Stockholders
    Equity for the Years Ended November 30, 2009, 2008 and
    2007


60Consolidated Statements of Cash Flows for the
    Years Ended November 30, 2009, 2008 and 2007


61Notes to Consolidated Financial Statements


62Report of Independent Registered Public
    Accounting Firm


99    Rule 3-09 S-X.
 57




---



##### Table of Contents



KB
    HOME
 CONSOLIDATED STATEMENTS OF
    OPERATIONS
 (In Thousands, Except Per Share
    Amounts)
  Years Ended November 30,2009


2008


2007Total revenues

$
1,824,850


$
3,033,936


$
6,416,526Homebuilding:Revenues

$
1,816,415


$
3,023,169


$
6,400,591Construction and land costs


(1,749,911
)


(3,314,815
)


(6,826,379
)Selling, general and administrative expenses


(303,024
)


(501,027
)


(824,621
)Goodwill impairment






(67,970
)


(107,926
)Operating loss


(236,520
)


(860,643
)


(1,358,335
)Interest income


7,515



34,610



28,636Loss on early redemption/interest expense, net of amounts
    capitalized


(51,763
)


(12,966
)


(12,990
)Equity in loss of unconsolidated joint ventures


(49,615
)


(152,750
)


(151,917
)Homebuilding pretax loss


(330,383
)


(991,749
)


(1,494,606
)Financial services:Revenues


8,435



10,767



15,935Expenses


(3,251
)


(4,489
)


(4,796
)Equity in income of unconsolidated joint venture


14,015



17,540



22,697Financial services pretax income


19,199



23,818



33,836Loss from continuing operations before income taxes


(311,184
)


(967,931
)


(1,460,770
)Income tax benefit (expense)


209,400



(8,200
)


46,000Loss from continuing operations


(101,784
)


(976,131
)


(1,414,770
)Income from discontinued operations, net of income taxes










47,252Gain on sale of discontinued operations, net of income taxes










438,104Net loss

$
(101,784
)

$
(976,131
)

$
(929,414
)Basic and diluted earnings (loss) per share:Continuing operations

$
(1.33
)

$
(12.59
)

$
(18.33
)Discontinued operations










6.29Basic and diluted loss per share

$
(1.33
)

$
(12.59
)

$
(12.04
)    58




---



##### Table of Contents



KB
    HOME
 CONSOLIDATED BALANCE SHEETS
 (In Thousands, Except Shares)
  November 30,2009


2008AssetsHomebuilding:Cash and cash equivalents

$
1,174,715


$
1,135,399Restricted cash


114,292



115,404Receivables


337,930



357,719Inventories


1,501,394



2,106,716Investments in unconsolidated joint ventures


119,668



177,649Other assets


154,566



99,2613,402,565



3,992,148Financial services


33,424



52,152Total assets

$
3,435,989


$
4,044,300Liabilities and stockholders equityHomebuilding:Accounts payable

$
340,977


$
541,294Accrued expenses and other liabilities


560,368



721,397Mortgages and notes payable


1,820,370



1,941,5372,721,715



3,204,228Financial services


7,050



9,467Stockholders equity:Preferred stock  $1.00 par value; authorized,
    10,000,000 shares; none issued






Common stock  $1.00 par value; authorized,
    290,000,000 shares at November 30, 2009 and 2008; and
    115,120,305 shares issued at November 30, 2009 and 2008


115,120



115,120Paid-in capital


860,772



865,123Retained earnings


806,443



927,324Accumulated other comprehensive loss


(22,244
)


(17,402
)Grantor stock ownership trust, at cost: 11,228,951 and
    11,901,382 shares at November 30, 2009 and 2008,
    respectively


(122,017
)


(129,326
)Treasury stock, at cost: 27,047,379 and 25,512,386 shares
    at November 30, 2009 and 2008, respectively


(930,850
)


(930,234
)Total stockholders equity


707,224



830,605Total liabilities and stockholders equity

$
3,435,989


$
4,044,300    59




---



##### Table of Contents





KB
    HOME
 CONSOLIDATED STATEMENTS OF
    STOCKHOLDERS EQUITY
 (In Thousands)
  Years Ended November 30, 2009, 2008 and 2007Number of Shares











AccumulatedGrantor














Other


GrantorStock














Comprehensive


Stock





TotalCommon


Ownership


Treasury


Common


Paid-in


Retained


Income


Ownership


Treasury


StockholdersStock


Trust


Stock


Stock


Capital


Earnings


(Loss)


Trust


Stock


EquityBalance at November 30, 2006


114,649



(12,345
)


(25,274
)

$
114,649


$
825,958


$
2,975,465


$
63,197


$
(134,150
)

$
(922,371
)

$
2,922,748Comprehensive loss:Net loss






















(929,414
)














(929,414
)Foreign currency translation


























(63,197
)










(63,197
)Total comprehensive loss






































(992,611
)Postretirement benefits adjustment


























(22,923
)










(22,923
)Dividends on common stock






















(77,170
)














(77,170
)Exercise of employee stock options


327











327



9,718



















10,045Restricted stock amortization


















4,993



















4,993Stock-based compensation


















9,354



















9,354Grantor stock ownership trust






142











1,605











1,542







3,147Treasury stock










(177
)






















(6,896
)


(6,896
)Balance at November 30, 2007


114,976



(12,203
)


(25,451
)


114,976



851,628



1,968,881



(22,923
)


(132,608
)


(929,267
)


1,850,687Comprehensive loss:Net loss






















(976,131
)














(976,131
)Postretirement benefits adjustment


























5,521











5,521Total comprehensive loss






































(970,610
)Dividends on common stock






















(62,967
)














(62,967
)Adoption of new income tax accounting guidance






















(2,459
)














(2,459
)Exercise of employee stock options


144











144



1,443



















1,587Restricted stock amortization


















4,946



















4,946Stock-based compensation


















5,018



















5,018Grantor stock ownership trust






302











2,088











3,282







5,370Treasury stock










(61
)






















(967
)


(967
)Balance at November 30, 2008


115,120



(11,901
)


(25,512
)


115,120



865,123



927,324



(17,402
)


(129,326
)


(930,234
)


830,605Comprehensive loss:Net loss






















(101,784
)














(101,784
)Postretirement benefits adjustment


























(4,842
)










(4,842
)Total comprehensive loss






































(106,626
)Dividends on common stock






















(19,097
)














(19,097
)Exercise of employee stock options


















(4,093
)


















(4,093
)Restricted stock awards


















(4,846
)










4,846







Restricted stock amortization


















1,390



















1,390Stock-based compensation


















2,587



















2,587Grantor stock ownership trust






672











611











2,463







3,074Treasury stock










(1,535
)






















(616
)


(616
)Balance at November 30, 2009


115,120



(11,229
)


(27,047
)

$
115,120


$
860,772


$
806,443


$
(22,244
)

$
(122,017
)

$
(930,850
)

$
707,224


60




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##### Table of Contents



KB
    HOME
 CONSOLIDATED STATEMENTS OF
    CASH FLOWS
 (In Thousands)
  Years Ended November 30,2009


2008


2007Cash flows from operating activities:Net loss

$
(101,784
)

$
(976,131
)

$
(929,414
)Income from discontinued operations, net of income taxes










(47,252
)Gain on sale of discontinued operations, net of income taxes










(438,104
)Adjustments to reconcile net loss to net cash provided by
    operating activities:Equity in loss of unconsolidated joint ventures


35,600



135,210



129,220Distributions of earnings from unconsolidated joint ventures


7,662



22,183



42,356Amortization of discounts and issuance costs


1,586



2,062



2,478Depreciation and amortization


5,235



9,317



17,274Loss on early redemption of debt


976



10,388



12,990Provision for deferred income taxes






221,306



208,348Tax benefit from stock-based compensation


4,093



2,097



(882
)Stock-based compensation expense


3,977



5,018



9,354Inventory impairments and land option contract abandonments


168,149



606,791



1,253,982Goodwill impairment






67,970



107,926Changes in assets and liabilities:Receivables


35,667



(60,565
)


(71,406
)Inventories


433,075



545,850



779,875Accounts payable, accrued expenses and other liabilities


(252,620
)


(282,781
)


(340,630
)Other, net


8,296



32,607



13,387Net cash provided by operating activities  continuing
    operations


349,912



341,322



749,502Net cash provided by operating activities  discontinued
    operations










297,397Net cash provided by operating activities


349,912



341,322



1,046,899Cash flows from investing activities:Sale of discontinued operations, net of cash divested










739,764Investments in unconsolidated joint ventures


(19,922
)


(59,625
)


(85,188
)Sales (purchases) of property and equipment, net


(1,375
)


7,073



685Net cash provided (used) by investing activities 
    continuing operations


(21,297
)


(52,552
)


655,261Net cash used by investing activities  discontinued
    operations










(12,112
)Net cash provided (used) by investing activities


(21,297
)


(52,552
)


643,149Cash flows from financing activities:Change in restricted cash


1,112



(115,404
)


Redemption of term loan










(400,000
)Proceeds from issuance of senior notes


259,737







Payment of senior notes issuance costs


(4,294
)






Repayment of senior and senior subordinated notes


(453,105
)


(305,814
)


(258,968
)Payments on mortgages, land contracts and other loans


(78,983
)


(12,800
)


(114,119
)Issuance of common stock under employee stock plans


3,074



6,958



12,310Excess tax benefit associated with exercise of stock options










882Payments of cash dividends


(19,097
)


(62,967
)


(77,170
)Repurchases of common stock


(616
)


(967
)


(6,896
)Net cash used by financing activities  continuing
    operations


(292,172
)


(490,994
)


(843,961
)Net cash used by financing activities  discontinued
    operations










(306,527
)Net cash used by financing activities


(292,172
)


(490,994
)


(1,150,488
)Net increase (decrease) in cash and cash equivalents


36,443



(202,224
)


539,560Cash and cash equivalents at beginning of year


1,141,518



1,343,742



804,182Cash and cash equivalents at end of year

$
1,177,961


$
1,141,518


$
1,343,742   61




---



##### Table of Contents



KB
    HOME
 NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS
  Note 1.
    Summary
    of Significant Accounting Policies  Operations.
  Basis of Presentation.
    Use of Estimates.
  Cash and Cash Equivalents, and Restricted
    Cash.
  Property and Equipment, Operating Properties and
    Depreciation. straight-line
  Goodwill.
 62




---



##### Table of Contents



Homebuilding Operations.
      Financial Services Operations.
  Warranty Costs.
  Insurance.
    Advertising Costs.
  Stock-Based Compensation.
   63




---



##### Table of Contents



Income Taxes.
  Accumulated Other Comprehensive Loss.
  Earnings (Loss) Per Share.
  Recent Accounting Pronouncements.
       64




---



##### Table of Contents



2009-17 2009-17
  Reclassifications.
  Note 2.
    Segment
    Information                   Years Ended November 30,2009


2008


2007Revenues:West Coast

$
812,207


$
1,055,021


$
2,203,303Southwest


218,096



618,014



1,349,570Central


434,400



594,317



1,077,304Southeast


351,712



755,817



1,770,414Total homebuilding revenues


1,816,415



3,023,169



6,400,591Financial services


8,435



10,767



15,935Total revenues

$
1,824,850


$
3,033,936


$
6,416,526 65




---



##### Table of Contents



Years Ended November 30,2009


2008


2007Income (loss) from continuing operations before income taxes:West Coast

$
(88,442
)

$
(298,047
)

$
(665,845
)Southwest


(48,572
)


(212,194
)


(287,339
)Central


(29,382
)


(82,789
)


(64,210
)Southeast


(78,414
)


(258,568
)


(230,420
)Corporate and other (a)


(85,573
)


(140,151
)


(246,792
)Total homebuilding loss from continuing operations before income
    taxes


(330,383
)


(991,749
)


(1,494,606
)Financial services


19,199



23,818



33,836Total loss from continuing operations before income taxes

$
(311,184
)

$
(967,931
)

$
(1,460,770
)     (a)
    
    Corporate and other includes corporate general and
    administrative expenses and goodwill impairment.  Years Ended November 30,2009


2008


2007Equity in income (loss) of unconsolidated joint ventures:West Coast

$
(7,761
)

$
(45,180
)

$
(64,886
)Southwest


(15,509
)


(35,633
)


(15,734
)Central


506



(4,515
)


(6,916
)Southeast


(26,851
)


(67,422
)


(64,381
)Total

$
(49,615
)

$
(152,750
)

$
(151,917
)Inventory impairments:West Coast

$
44,895


$
229,059


$
631,399Southwest


28,833



160,574



337,889Central


23,891



51,518



24,662Southeast


23,229



124,726



116,023Total

$
120,848


$
565,877


$
1,109,973Inventory abandonments:West Coast

$
32,679


$
17,475


$
28,011Southwest






187



16,479Central










9,783Southeast


14,622



23,252



89,736Total

$
47,301


$
40,914


$
144,009Joint venture impairments:West Coast

$
7,190


$
43,116


$
57,030Southwest


5,426



30,434



31,049Central






2,629



4,483Southeast


25,915



65,671



63,801Total

$
38,531


$
141,850


$
156,363   66




---



##### Table of Contents



November 30,2009


2008Assets:West Coast

$
838,510


$
1,086,503Southwest


346,035



497,034Central


357,688



443,168Southeast


361,551



453,771Corporate and other


1,498,781



1,511,672Total homebuilding assets


3,402,565



3,992,148Financial services


33,424



52,152Total assets

$
3,435,989


$
4,044,300Investments in unconsolidated joint ventures:West Coast

$
54,795


$
55,856Southwest


56,779



113,564Central






3,339Southeast


8,094



4,890Total

$
119,668


$
177,649   Note 3.  Financial
    Services
     Years Ended November 30,2009


2008


2007RevenuesInterest income

$
31


$
209


$
158Title services


1,184



2,369



5,977Insurance commissions


7,220



8,189



9,193Escrow coordination fees










607Total


8,435



10,767



15,935ExpensesGeneral and administrative


(3,251
)


(4,489
)


(4,796
)Operating income


5,184



6,278



11,139Equity in income of unconsolidated joint venture


14,015



17,540



22,697Pretax income

$
19,199


$
23,818


$
33,836   November 30,2009


2008AssetsCash and cash equivalents

$
3,246


$
6,119Receivables


1,395



1,240Investment in unconsolidated joint venture


28,748



44,733Other assets


35



60Total assets

$
33,424


$
52,152LiabilitiesAccounts payable and accrued expenses

$
7,050


$
9,467Total liabilities

$
7,050


$
9,467    67




---



##### Table of Contents



Note 4.
    Receivables    Note 5.
    Inventories    November 30,2009


2008Homes, lots and improvements in production

$
1,091,851


$
1,649,838Land under development


409,543



456,878Total

$
1,501,394


$
2,106,716       Years Ended November 30,2009


2008


2007Capitalized interest at beginning of year

$
361,619


$
348,084


$
333,020Interest incurred (a)


119,602



156,402



199,550Loss on early redemption/interest expensed


(51,763
)


(12,966
)


(12,990
)Interest amortized to construction and land costs


(138,179
)


(129,901
)


(171,496
)Capitalized interest at end of year (b)

$
291,279


$
361,619


$
348,084     (a)
    
    Amounts include losses on the early redemption of debt of
    $1.0 million for the year ended November 30, 2009,
    $10.4 million for the year ended November 30, 2008 and
    $13.0 million for the year ended November 30, 2007.  (b)
    
    Inventory impairment charges are recognized against all
    inventory costs of a community, such as land, land improvements,
    cost of home construction and capitalized interest. Capitalized
    interest amounts presented in the table reflect the gross amount
    of capitalized interest as impairment charges recognized are not
    generally allocated to specific components of inventory.  Note 6.
    Inventory
    Impairments and Land Option Contract Abandonments   68




---



##### Table of Contents



and/or and/or
      Note 7.
    Fair
    Value Disclosures    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. 69




---



##### Table of Contents



Fair Value Measurements UsingQuoted


SignificantPrices in


Other


SignificantYear Ended


Active


Observable


UnobservableNovember 30,


Markets


Inputs


Inputs


Total GainsDescription

2009 (a)


(Level 1)


(Level 2)


(Level 3)


(Losses)Long-lived assets held and used

$
129,032


$



$
12,236


$
116,796


$
(120,848
)     (a)
    
    Amount represents the aggregate fair values for communities
    where the Company recognized noncash inventory impairment
    charges during the period, as of the date that the fair value
    measurements were made. The carrying value for these communities
    may have subsequently increased or decreased from the fair value
    reflected due to activity that has occurred since the
    measurement date.        November 30,2009

2008Carrying

Estimated

Carrying

EstimatedValue

Fair Value

Value

Fair ValueFinancial Liabilities:Senior subordinated notes due December 15, 2008 at
    85/8%

$



$



$
200,000


$
199,500Senior notes due 2011 at
    63/8%


99,800



100,250



348,908



274,765Senior notes due 2014 at
    53/4%


249,358



234,375



249,227



165,113Senior notes due 2015 at
    57/8%


298,875



276,000



298,692



182,949Senior notes due 2015 at
    61/4%


449,698



419,063



449,653



275,412Senior notes due 2017 at 9.1%


259,884



276,263







Senior notes due 2018 at
    71/4%


298,787



281,250



298,689



173,240       Note 8.
    Consolidation
    of Variable Interest Entities   70




---



##### Table of Contents



Note 9.
    Investments
    in Unconsolidated Joint Ventures  and/or
 71




---



##### Table of Contents



and/or
        Years Ended November 30,2009


2008


2007Revenues

$
60,790


$
112,767


$
662,705Construction and land costs


(117,255
)


(458,168
)


(670,133
)Other expenses, net


(46,432
)


(38,170
)


(44,126
)Loss

$
(102,897
)

$
(383,571
)

$
(51,554
)       November 30,2009


2008AssetsCash

$
12,816


$
29,194Receivables


142,639



143,926Inventories


709,130



1,029,306Other assets


56,939



55,289Total assets

$
921,524


$
1,257,715Liabilities and equityAccounts payable and other liabilities

$
94,533


$
85,064Mortgages and notes payable


514,172



871,279Equity


312,819



301,372Total liabilities and equity

$
921,524


$
1,257,715  72




---



##### Table of Contents



November 30,2009


2008Number of investments in unconsolidated joint ventures:With recourse debt (a)






1With limited recourse debt (b)


2



4With non-recourse debt (c)


2



10Other (d)


9



10Total


13



25Investments in unconsolidated joint ventures:With recourse debt

$



$
3,339With limited recourse debt


1,277



1,360With non-recourse debt


9,983



24,590Other


108,408



148,360Total

$
119,668


$
177,649Outstanding debt of unconsolidated joint ventures:With recourse debt

$



$
3,249With limited recourse debt


11,198



112,700With non-recourse debt


130,025



381,393Other


372,949



373,937Total (e)

$
514,172


$
871,279     (a)
    
    This category consisted of an unconsolidated joint venture as to
    which the Company has entered into a several guaranty with
    respect to the repayment of a portion of the unconsolidated
    joint ventures outstanding debt. This unconsolidated joint
    venture was dissolved during the quarter ended May 31, 2009.(b)
    
    This category consists of unconsolidated joint ventures as to
    which the Company has entered into a loan-to-value maintenance
    guaranty with respect to a portion of each such unconsolidated
    joint ventures outstanding secured debt.(c)
    
    This category consists of unconsolidated joint ventures as to
    which the Company does not have a guaranty or any other
    obligation to repay or to support the value of the collateral
    (which collateral includes any letters of credit) underlying
    such unconsolidated joint ventures respective outstanding
    secured debt.(d)
    
    This category consists of unconsolidated joint ventures with no
    outstanding debt and an unconsolidated joint venture as to which
    the Company has entered into a several guaranty. This guaranty,
    by its terms, purports to require the Company to guarantee the
    repayment of a portion of the unconsolidated joint
    ventures outstanding debt in the event an involuntary
    bankruptcy proceeding is filed against the unconsolidated joint
    venture that is not dismissed within 60 days or for which
    an order approving relief under bankruptcy law is entered, even
    if the unconsolidated joint venture or its partners do not
    collude in the filing and the unconsolidated joint venture
    contests the filing, as further described below.In most cases, the Company may have also entered into a
    completion guaranty and/or a carve-out guaranty with the lenders
    for the unconsolidated joint ventures identified in categories
    (a) through (d) as further described below.(e)
    
    The Total amounts represent the aggregate
    outstanding debt of the unconsolidated joint ventures in which
    the Company participates. The amounts do not represent the
    Companys potential responsibility for such debt, if any.
    In most cases, the Companys maximum potential
    responsibility for any portion of such debt, if any, is limited
    to either 73




---



##### Table of Contents



a specified maximum amount or an amount equal to its pro rata
    interest in the relevant unconsolidated joint venture, as
    further described below.    and/or and/or and/or
         74




---



##### Table of Contents



Note 10.
    Goodwill       75




---



##### Table of Contents



Note 11.
    Other
    Assets    November 30,2009


2008Operating properties

$
72,548


$
Prepaid expenses


62,067



79,102Property and equipment


12,465



16,298Debt issuance costs


6,334



2,709Deferred tax assets


1,152



1,152Total

$
154,566


$
99,261    76




---



##### Table of Contents



Note 12.
    Accrued
    Expenses and Other Liabilities    November 30,2009


2008Warranty liability

$
135,749


$
145,369Construction defect and other litigation liabilities


121,781



118,774Employee compensation and related benefits


88,385



113,861Liabilities related to inventory not owned


57,150



97,008Accrued interest payable


46,302



50,430Real estate and business taxes


12,516



23,957Other


98,485



171,998Total

$
560,368


$
721,397   Note 13.
    Mortgages
    and Notes Payable    November 30,2009


2008Mortgages and land contracts due to land sellers and other loans
    (2% to 8% in 2009 and
    41/4%
    to 8% in 2008)

$
163,968


$
96,368Senior subordinated notes due December 15, 2008 at
    85/8%






200,000Senior notes due 2011 at
    63/8%


99,800



348,908Senior notes due 2014 at
    53/4%


249,358



249,227Senior notes due 2015 at
    57/8%


298,875



298,692Senior notes due 2015 at
    61/4%


449,698



449,653Senior notes due 2017 at 9.1%


259,884



Senior notes due 2018 at
    71/4%


298,787



298,689Total

$
1,820,370


$
1,941,537          77




---



##### Table of Contents



7 8 7 8 7 8 7 8
  1 4
 78




---



##### Table of Contents



1 4 1 4 1 4 1 4
          Note 14.
    Commitments
    and Contingencies     79




---



##### Table of Contents



Years Ended November 30,2009


2008


2007Balance at beginning of year

$
145,369


$
151,525


$
141,060Warranties issued


15,130



25,324



60,620Payments and adjustments


(24,750
)


(31,480
)


(50,155
)Balance at end of year

$
135,749


$
145,369


$
151,525              80




---



##### Table of Contents



Note 15.
    Legal
    Matters  ERISA Litigation. Bagley et al., v. KB Home, et
    al
    Other Matters.
   81




---



##### Table of Contents



Note 16.
    Income
    Taxes    Federal


State


Total2009Current

$
207,900


$
1,500


$
209,400Deferred










Income tax benefit

$
207,900


$
1,500


$
209,4002008Current

$
(18,704
)

$
10,504


$
(8,200
)Deferred










Income tax benefit (expense)

$
(18,704
)

$
10,504


$
(8,200
)2007Current

$
236,961


$
27,195


$
264,156Deferred


(156,772
)


(61,384
)


(218,156
)Income tax benefit (expense)

$
80,189


$
(34,189
)

$
46,000     November 30,2009


2008Deferred tax liabilities:Capitalized expenses

$
117,684


$
137,975State taxes


52,223



36,699Other


142



398Total

$
170,049


$
175,072Deferred tax assets:Inventory impairments and land option contract abandonments

$
378,834


$
483,1992009 and 2008 net operating loss


84,424



52,841Warranty, legal and other accruals


147,924



191,209Employee benefits


60,822



90,521Partnerships and joint ventures


58,611



107,838Depreciation and amortization


38,888



49,909Capitalized expenses


6,573



9,039Tax credits


140,133



59,676Deferred income


1,219



2,741Other


3,738



8,029Total


921,166



1,055,002Valuation allowance


(749,965
)


(878,778
)Total


171,201



176,224Net deferred tax assets

$
1,152


$
1,152  82




---



##### Table of Contents



Years Ended November 30,2009


2008


2007Income tax benefit computed at statutory rate

$
108,914


$
338,776


$
511,270Increase (decrease) resulting from:State taxes, net of federal income tax benefit


11,079



25,142



46,116Non-deductible stock-based and other compensation and related
    expenses










(3,574
)Tax credits


203



(3,984
)


(3,594
)Valuation allowance for deferred tax assets (a)


91,918



(358,159
)


(514,234
)Other, net


(2,714
)


(9,975
)


10,016Income tax benefit (expense)

$
209,400


$
(8,200
)

$
46,000     (a)
    
    The amounts in the table include only those items that impacted
    the income tax benefit (expense) in the consolidated statements
    of operations for each year. In 2009, the $128.8 million
    total net decrease in the valuation allowance for deferred tax
    assets reflected $91.9 million recorded as an income tax
    benefit in the consolidated statement of operations and
    $38.8 million of other reductions, primarily from
    forfeitures of certain equity-based awards. These amounts were
    partially offset by a $1.9 million increase in the
    valuation allowance recorded as a charge to accumulated other
    comprehensive loss.       83




---



##### Table of Contents



Years Ended November 30,2009


2008Balance at beginning of year

$
18,332


$
27,617Additions for tax positions related to prior years


4,230



199Reductions for tax positions of prior years


(270
)


Reductions due to lapse of statute of limitations


(1,277
)


Reductions due to resolution of federal and state audits


(9,991
)


(9,484
)Balance at end of year

$
11,024


$
18,332          84




---



##### Table of Contents



Note 17.
    Stockholders
    Equity  Preferred Stock.
      Common Stock.
   85




---



##### Table of Contents



Note 18.
    Employee
    Benefit and Stock Plans      Stock
    Options. Stock
    option transactions are summarized as follows:
  Years Ended November 30,2009


2008


2007Weighted





Weighted





WeightedAverage





Average





AverageExercise





Exercise





ExerciseOptions


Price


Options


Price


Options


PriceOptions outstanding at beginning of year


7,847,402


$
30.11



8,173,464


$
30.17



8,354,276


$
28.71Granted


1,403,141



15.44











787,600



34.78Exercised










(144,020
)


18.31



(327,681
)


24.27Cancelled


(3,538,842
)


28.69



(182,042
)


42.33



(640,731
)


37.04Options outstanding at end of year


5,711,701


$
27.39



7,847,402


$
30.11



8,173,464


$
30.17Options exercisable at end of year


4,046,027


$
31.05



7,321,170


$
29.77



7,238,598


$
28.98Options available for grant at end of year


1,714,650







593,897







501,892    86




---



##### Table of Contents



Options Outstanding


Options ExercisableWeighted








WeightedWeighted


Average





Weighted


AverageAverage


Remaining





Average


RemainingExercise


Contractual





Exercise


ContractualRange of Exercise Price

Options


Price


Life


Options


Price


Life$ 8.88 to $13.95


668,539


$
13.73



6.79



668,539


$
13.73$13.96 to $15.44


1,403,141



15.44



9.84







$15.45 to $32.66


1,192,703



24.14



7.99



1,146,870



23.98$32.67 to $36.19


1,495,929



34.86



8.21



1,279,229



34.63$36.20 to $69.63


951,389



46.93



9.14



951,389



46.93$ 8.88 to $69.63


5,711,701


$
27.39



8.55



4,046,027


$
31.05



8.18          Other Stock-Based Awards.
    Year Ended November 30, 2009WeightedAverageper ShareGrant DateShares


Fair ValueOutstanding at beginning of year


700,000


$
15.70Granted


445,831



15.44Vested






Cancelled


(700,000
)


15.70Outstanding at end of year


445,831


$
15.44      87




---



##### Table of Contents



Grantor Stock Ownership Trust.
    Note 19.
    Postretirement
    Benefits     88




---



##### Table of Contents



Note
    20.
    Supplemental
    Disclosure to Consolidated Statements of Cash Flows    Years Ended November 30,2009


2008


2007Summary of cash and cash equivalents:Homebuilding

$
1,174,715


$
1,135,399


$
1,325,255Financial services


3,246



6,119



18,487Total

$
1,177,961


$
1,141,518


$
1,343,742Supplemental disclosures of cash flow information:Interest paid, net of amounts capitalized

$
55,892


$
20,726


$
29,572Income taxes paid (refunded)


(235,273
)


(122,872
)


131,329Supplemental disclosure of noncash activities:Increase in inventories in connection with consolidation of
    joint ventures

$
97,550


$



$
Increase in secured debt in connection with consolidation of
    joint ventures


133,051







Reclassification from inventory to operating properties


72,548







Reclassification from accounts payable to investments in
    unconsolidated joint ventures


50,626







Cost of inventories acquired through seller financing


16,240



90,028



4,139Decrease in consolidated inventories not owned


(45,340
)


(143,091
)


(409,505
)   Note
    21.
    Discontinued
    Operations   89




---



##### Table of Contents



Year EndedNovember 30,2007Revenues

$
911,841Construction and land costs


(680,234
)Selling, general and administrative expenses


(129,407
)Operating income


102,200Interest income


1,199Minority interests


(38,665
)Equity in income of unconsolidated joint ventures


4,118Income from discontinued operations before income taxes


68,852Income tax expense


(21,600
)Income from discontinued operations, net of income taxes

$
47,252     Note 22.
    Quarterly
    Results (unaudited)    First


Second


Third


Fourth2009Revenues

$
307,361


$
384,470


$
458,451


$
674,568Gross profit


14,783



6,115



41,773



3,833Pretax loss


(59,572
)


(83,583
)


(77,048
)


(90,981
)Net income (loss)


(58,072
)


(78,383
)


(66,048
)


100,719Basic and diluted earnings (loss) per share

$
(.75
)

$
(1.03
)

$
(.87
)

$
1.312008Revenues

$
794,224


$
639,065


$
681,610


$
919,037Gross profit (loss)


(121,333
)


(118,746
)


25,383



(76,950
)Pretax loss


(267,872
)


(255,330
)


(151,745
)


(292,984
)Net loss


(268,172
)


(255,930
)


(144,745
)


(307,284
)Basic and diluted loss per share

$
(3.47
)

$
(3.30
)

$
(1.87
)

$
(3.96
)    90




---



##### Table of Contents



year-to-date
  Note 23.
    Supplemental
    Guarantor Information   91




---



##### Table of Contents



CONDENSED
    CONSOLIDATING STATEMENTS OF OPERATIONS
 (In Thousands)
  Year Ended November 30, 2009KB Home


Guarantor


Non-Guarantor


ConsolidatingCorporate


Subsidiaries


Subsidiaries


Adjustments


TotalRevenues

$



$
1,608,533


$
216,317


$



$
1,824,850Homebuilding:Revenues

$



$
1,608,533


$
207,882


$



$
1,816,415Construction and land costs






(1,548,678
)


(201,233
)






(1,749,911
)Selling, general and administrative expenses


(71,181
)


(198,964
)


(32,879
)






(303,024
)Operating loss


(71,181
)


(139,109
)


(26,230
)






(236,520
)Interest income


5,965



887



663







7,515Loss on early redemption/interest expense, net of amounts
    capitalized


31,442



(74,946
)


(8,259
)






(51,763
)Equity in loss of unconsolidated joint ventures






(22,840
)


(26,775
)






(49,615
)Homebuilding pretax loss


(33,774
)


(236,008
)


(60,601
)






(330,383
)Financial services pretax income










19,199







19,199Total pretax loss


(33,774
)


(236,008
)


(41,402
)






(311,184
)Income tax benefit


22,700



158,800



27,900







209,400Equity in net loss of subsidiaries


(90,710
)










90,710



Net loss

$
(101,784
)

$
(77,208
)

$
(13,502
)

$
90,710


$
(101,784
)   Year Ended November 30, 2008KB Home


Guarantor


Non-Guarantor


ConsolidatingCorporate


Subsidiaries


Subsidiaries


Adjustments


TotalRevenues

$



$
2,331,771


$
702,165


$



$
3,033,936Homebuilding:Revenues

$



$
2,331,771


$
691,398


$



$
3,023,169Construction and land costs






(2,555,911
)


(758,904
)






(3,314,815
)Selling, general and administrative expenses


(74,075
)


(296,964
)


(129,988
)






(501,027
)Goodwill impairment


(67,970
)














(67,970
)Operating loss


(142,045
)


(521,104
)


(197,494
)






(860,643
)Interest income


31,666



2,524



420







34,610Loss on early redemption/interest expense, net of amounts
    capitalized


56,541



(34,946
)


(34,561
)






(12,966
)Equity in loss of unconsolidated joint ventures






(10,742
)


(142,008
)






(152,750
)Homebuilding pretax loss


(53,838
)


(564,268
)


(373,643
)






(991,749
)Financial services pretax income










23,818







23,818Total pretax loss


(53,838
)


(564,268
)


(349,825
)






(967,931
)Income tax expense


(400
)


(4,600
)


(3,200
)






(8,200
)Equity in net loss of subsidiaries


(921,893
)










921,893



Net loss

$
(976,131
)

$
(568,868
)

$
(353,025
)

$
921,893


$
(976,131
)  92




---



##### Table of Contents



Year Ended November 30, 2007KB Home


Guarantor


Non-Guarantor


ConsolidatingCorporate


Subsidiaries


Subsidiaries


Adjustments


TotalRevenues

$



$
4,752,649


$
1,663,877


$



$
6,416,526Homebuilding:Revenues

$



$
4,752,649


$
1,647,942


$



$
6,400,591Construction and land costs






(5,299,357
)


(1,527,022
)






(6,826,379
)Selling, general and administrative expenses


(104,646
)


(518,912
)


(201,063
)






(824,621
)Goodwill impairment


(107,926
)














(107,926
)Operating loss


(212,572
)


(1,065,620
)


(80,143
)






(1,358,335
)Interest income


21,869



6,193



574







28,636Loss on early redemption/interest expense, net of amounts
    capitalized


179,100



(146,204
)


(45,886
)






(12,990
)Equity in loss of unconsolidated joint ventures






(26,105
)


(125,812
)






(151,917
)Homebuilding pretax loss


(11,603
)


(1,231,736
)


(251,267
)






(1,494,606
)Financial services pretax income










33,836







33,836Loss from continuing operations before income taxes


(11,603
)


(1,231,736
)


(217,431
)






(1,460,770
)Income tax benefit


400



38,800



6,800







46,000Loss from continuing operations before equity in net loss of
    subsidiaries


(11,203
)


(1,192,936
)


(210,631
)






(1,414,770
)Income from discontinued operations, net of income taxes










485,356







485,356Income (loss) before equity in net income (loss) of subsidiaries


(11,203
)


(1,192,936
)


274,725







(929,414
)Equity in net income (loss) of subsidiaries:Continuing operations


(1,403,567
)










1,403,567



Discontinued operations


485,356











(485,356
)


Net income (loss)

$
(929,414
)

$
(1,192,936
)

$
274,725


$
918,211


$
(929,414
)  93




---



##### Table of Contents



CONDENSED
    CONSOLIDATING BALANCE SHEETS
 (In Thousands)
  November 30, 2009KB Home


Guarantor


Non-Guarantor


ConsolidatingCorporate


Subsidiaries


Subsidiaries


Adjustments


TotalAssetsHomebuilding:Cash and cash equivalents

$
995,122


$
56,969


$
122,624


$



$
1,174,715Restricted cash


114,292















114,292Receivables


191,747



109,536



36,647







337,930Inventories






1,374,617



126,777







1,501,394Investments in unconsolidated joint ventures






115,402



4,266







119,668Other assets


68,895



85,856



(185
)






154,5661,370,056



1,742,380



290,129







3,402,565Financial services










33,424







33,424Investments in subsidiaries


35,955











(35,955
)


Total assets

$
1,406,011


$
1,742,380


$
323,553


$
(35,955
)

$
3,435,989Liabilities and stockholders equityHomebuilding:Accounts payable, accrued expenses and other liabilities

$
147,264


$
588,203


$
165,878


$



$
901,345Mortgages and notes payable


1,656,402



163,967



1







1,820,3701,803,666



752,170



165,879







2,721,715Financial services










7,050







7,050Intercompany


(1,104,879
)


990,210



114,669







Stockholders equity


707,224







35,955



(35,955
)


707,224Total liabilities and stockholders equity

$
1,406,011


$
1,742,380


$
323,553


$
(35,955
)

$
3,435,989   November 30, 2008KB Home


Guarantor


Non-Guarantor


ConsolidatingCorporate


Subsidiaries


Subsidiaries


Adjustments


TotalAssetsHomebuilding:Cash and cash equivalents

$
987,057


$
25,067


$
123,275


$



$
1,135,399Restricted cash


115,404















115,404Receivables


218,600



126,713



12,406







357,719Inventories






1,748,526



358,190







2,106,716Investments in unconsolidated joint ventures






176,290



1,359







177,649Other assets


83,028



13,954



2,279







99,2611,404,089



2,090,550



497,509







3,992,148Financial services










52,152







52,152Investments in subsidiaries


51,848











(51,848
)


Total assets

$
1,455,937


$
2,090,550


$
549,661


$
(51,848
)

$
4,044,300Liabilities and stockholders equityHomebuilding:Accounts payable, accrued expenses and other liabilities

$
190,455


$
786,717


$
285,519


$



$
1,262,691Mortgages and notes payable


1,845,169



96,368











1,941,5372,035,624



883,085



285,519







3,204,228Financial services










9,467







9,467Intercompany


(1,410,292
)


1,207,465



202,827







Stockholders equity


830,605







51,848



(51,848
)


830,605Total liabilities and stockholders equity

$
1,455,937


$
2,090,550


$
549,661


$
(51,848
)

$
4,044,300  94




---



##### Table of Contents



CONDENSED
    CONSOLIDATING STATEMENTS OF CASH FLOWS
 (In Thousands)
  Year Ended November 30, 2009KB Home


Guarantor


Non-Guarantor


ConsolidatingCorporate


Subsidiaries


Subsidiaries


Adjustments


TotalCash flows from operating activities:Net loss

$
(101,784
)

$
(77,208
)

$
(13,502
)

$
90,710


$
(101,784
)Adjustments to reconcile net loss to net cash provided
    (used) by operating activities:Inventory impairments and land option contract abandonments






153,294



14,855







168,149Changes in assets and liabilities:Receivables


26,853



33,210



(24,396
)






35,667Inventories






216,554



216,521







433,075Accounts payable, accrued expenses and other liabilities


(47,284
)


(83,316
)


(122,020
)






(252,620
)Other, net


22,313



24,411



20,701







67,425Net cash provided (used) by operating activities


(99,902
)


266,945



92,159



90,710



349,912Cash flows from investing activities:Investments in unconsolidated joint ventures






(14,517
)


(5,405
)






(19,922
)Sales (purchases) of property and equipment, net


(142
)


(1,497
)


264







(1,375
)Net cash used by investing activities


(142
)


(16,014
)


(5,141
)






(21,297
)Cash flows from financing activities:Change in restricted cash


1,112















1,112Proceeds from issuance of senior notes


259,737















259,737Payment of senior notes issuance costs


(4,294
)














(4,294
)Repayment of senior and senior subordinated notes


(453,105
)














(453,105
)Payments on mortgages, land contracts and other loans






(78,983
)










(78,983
)Issuance of common stock under employee stock plans


3,074















3,074Payments of cash dividends


(19,097
)














(19,097
)Repurchases of common stock


(616
)














(616
)Intercompany


321,298



(140,046
)


(90,542
)


(90,710
)


Net cash provided (used) by financing activities


108,109



(219,029
)


(90,542
)


(90,710
)


(292,172
)Net increase (decrease) in cash and cash equivalents


8,065



31,902



(3,524
)






36,443Cash and cash equivalents at beginning of year


987,057



25,067



129,394







1,141,518Cash and cash equivalents at end of year

$
995,122


$
56,969


$
125,870


$



$
1,177,961  95




---



##### Table of Contents



Year Ended November 30, 2008KB Home


Guarantor


Non-Guarantor


ConsolidatingCorporate


Subsidiaries


Subsidiaries


Adjustments


TotalCash flows from operating activities:Net loss

$
(976,131
)

$
(568,868
)

$
(353,025
)

$
921,893


$
(976,131
)Adjustments to reconcile net loss to net cash provided (used) by
    operating activities:Provision for deferred income taxes


221,306















221,306Inventory impairments and land option contract abandonments






469,017



137,774







606,791Goodwill impairment


67,970















67,970Changes in assets and liabilities:Receivables


(92,069
)


24,376



7,128







(60,565
)Inventories






409,629



136,221







545,850Accounts payable, accrued expenses and other liabilities


(20,246
)


(210,319
)


(52,216
)






(282,781
)Other, net


48,519



19,978



150,385







218,882Net cash provided (used) by operating activities


(750,651
)


143,813



26,267



921,893



341,322Cash flows from investing activities:Investments in unconsolidated joint ventures






8,985



(68,610
)






(59,625
)Sales (purchases) of property and equipment, net


5,837



(55
)


1,291







7,073Net cash provided (used) by investing activities


5,837



8,930



(67,319
)






(52,552
)Cash flows from financing activities:Change in restricted cash


(115,404
)














(115,404
)Repayment of senior subordinated notes


(305,814
)














(305,814
)Payments on mortgages, land contracts and other loans






(12,800
)










(12,800
)Issuance of common stock under employee stock plans


6,958















6,958Payments of cash dividends


(62,967
)














(62,967
)Repurchases of common stock


(967
)














(967
)Intercompany


1,105,636



(186,395
)


2,652



(921,893
)


Net cash provided (used) by financing activities


627,442



(199,195
)


2,652



(921,893
)


(490,994
)Net decrease in cash and cash equivalents


(117,372
)


(46,452
)


(38,400
)






(202,224
)Cash and cash equivalents at beginning of year


1,104,429



71,519



167,794







1,343,742Cash and cash equivalents at end of year

$
987,057


$
25,067


$
129,394


$



$
1,141,518  96




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##### Table of Contents



Year Ended November 30, 2007KB Home


Guarantor


Non-Guarantor


ConsolidatingCorporate


Subsidiaries


Subsidiaries


Adjustments


TotalCash flows from operating activities:Net loss

$
(929,414
)

$
(1,192,936
)

$
(210,631
)

$
1,403,567


$
(929,414
)Income from discontinued operations, net of income taxes










(47,252
)






(47,252
)Gain on sale of discontinued operations, net of income taxes


(438,104
)














(438,104
)Adjustments to reconcile net loss to net cash 
    provided (used) by operating activities:Provision for deferred income taxes


208,348















208,348Inventory impairments and land option contract abandonments






1,173,855



80,127







1,253,982Goodwill impairment


107,926















107,926Changes in assets and liabilities:Receivables


(121,225
)


41,726



8,093







(71,406
)Inventories






367,142



412,733







779,875Accounts payable, accrued expenses and other liabilities


(199,306
)


62,000



(203,324
)






(340,630
)Other, net


(151,042
)


53,528



323,691







226,177Net cash provided (used) by operating activities 
    continuing operations


(1,522,817
)


505,315



363,437



1,403,567



749,502Net cash provided by operating activities 
    discontinued operations










297,397







297,397Net cash provided (used) by operating activities


(1,522,817
)


505,315



660,834



1,403,567



1,046,899Cash flows from investing activities:Sale of discontinued operations, net of cash divested


739,764















739,764Investments in unconsolidated joint ventures






(35,227
)


(49,961
)






(85,188
)Sales (purchases) of property and equipment, net


(558
)


(201
)


1,444







685Net cash provided (used) by investing activities 
    continuing operations


739,206



(35,428
)


(48,517
)






655,261Net cash used by investing activities  discontinued
    operations










(12,112
)






(12,112
)Net cash provided (used) by investing activities


739,206



(35,428
)


(60,629
)






643,149Cash flows from financing activities:Redemption of term loan


(400,000
)














(400,000
)Repayment of senior subordinated notes


(258,968
)














(258,968
)Payments on mortgages, land contracts and other loans






(87,566
)


(26,553
)






(114,119
)Issuance of common stock under employee stock plans


12,310















12,310Excess tax benefit associated with exercise of stock options


882















882Payments of cash dividends


(77,170
)














(77,170
)Repurchases of common stock


(6,896
)














(6,896
)Intercompany


2,170,661



(461,631
)


(305,463
)


(1,403,567
)


Net cash provided (used) by financing activities 
    continuing operations


1,440,819



(549,197
)


(332,016
)


(1,403,567
)


(843,961
)Net cash used by financing activities  discontinued
    operations










(306,527
)






(306,527
)Net cash provided (used) by financing activities


1,440,819



(549,197
)


(638,543
)


(1,403,567
)


(1,150,488
)Net increase (decrease) in cash and cash equivalents


657,208



(79,310
)


(38,338
)






539,560Cash and cash equivalents at beginning of year


447,221



150,829



206,132







804,182Cash and cash equivalents at end of year

$
1,104,429


$
71,519


$
167,794


$



$
1,343,742  97




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##### Table of Contents



Note 24.  Subsequent
    Events
     98




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM              
    99




---



##### Table of Contents



Item
    9.
    CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE   Item
    9A.  CONTROLS AND PROCEDURES  Disclosure
    Controls and Procedures
    Internal
    Control Over Financial Reporting
  (a)  Managements
    Annual Report on Internal Control Over Financial
    Reporting
  Rule 13a-15(f) Internal Control-Integrated Framework
    (b)  Report
    of Independent Registered Public Accounting Firm
         100




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##### Table of Contents



(c)  Changes
    in Internal Control Over Financial Reporting
    Item
    9B.
    OTHER
    INFORMATION   101




---



##### Table of Contents



PART
    III
  Item 10.  DIRECTORS,
    EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
    Ethics
    Policy
  
  KB HomeAttention: Investor Relations10990 Wilshire BoulevardLos Angeles, California 90024(310) 231-4000investorrelations@kbhome.com     Corporate
    Governance Principles
   Item
    11.  EXECUTIVE COMPENSATION    Item
    12.
    SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
    RELATED STOCKHOLDER MATTERS   102




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##### Table of Contents



Equity Compensation Plan InformationNumber of commonNumber of





shares remainingcommon shares to





available for futurebe issued upon





issuance under equityexercise of


Weighted-average


compensation plansoutstanding options,


exercise price of


(excluding commonwarrants and


outstanding options,


shares reflected inrights


warrants and rights


column(a))Plan category

(a)


(b)


(c)Equity compensation plans approved by stockholders


5,711,701


$
27.39



1,714,650Equity compensation plans not approved by stockholders











(1)Total


5,711,701


$
27.39



1,714,650     (1)
    Represents our current compensation plan for our non-employee
    directors that provides for an unlimited number of grants of
    deferred common stock units or stock options. These stock units
    and options are described in the Director
    Compensation section of our 2010 Proxy Statement, which is
    incorporated herein. Although we may purchase shares of our
    common stock on the open market to satisfy the payment of these
    stock units and options, to date, all of them have been settled
    in cash. Further, under the
    non-employee
    directors current compensation plan, our
    non-employee
    directors cannot receive shares of our common stock in
    satisfaction of their stock units or options unless and until
    approved by our stockholders. Therefore, we consider the
    non-employee
    directors compensation plans as having no available capacity to
    issue shares of our common stock.  Item 13.
    CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
    INDEPENDENCE    Item 14.
    PRINCIPAL
    ACCOUNTANT FEES AND SERVICES   103




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##### Table of Contents



PART IV  Item 15.
    EXHIBITS
    AND FINANCIAL STATEMENT SCHEDULES  Financial
    Statements
  Form 10-K.
  Exhibits
  ExhibitNumber

Description2
.1

Share Purchase Agreement, dated May 22, 2007, by and
    between KB Home, Kaufman and Broad Development Group,
    International Mortgage Acceptance Corporation, Kaufman and Broad
    International, Inc. and Financière Gaillon 8 S.A.S., filed
    as an exhibit to the Companys Current Report on
    Form 8-K
    dated May 22, 2007, is incorporated by reference herein.3
.1

Restated Certificate of Incorporation, filed as an exhibit to
    the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended February 28, 2007, is incorporated by
    reference herein.3
.2

Certificate of Designation of Series A Participating Cumulative
    Preferred Stock, dated as of January 22, 2009, filed as an
    exhibit to the Companys Current Report on Form 8-K/A dated
    January 28, 2009, is incorporated by reference herein.3
.3

By-Laws, as amended and restated on April 5, 2007, filed as an
    exhibit to the Companys Quarterly Report on Form 10-Q for
    the quarter ended February 28, 2007, is incorporated by
    reference herein.3
.4

Restated Certificate of Incorporation, as amended, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated April 7, 2009, is incorporated by reference herein.4
.1

Rights Agreement between the Company and Mellon Investor
    Services LLC, as rights agent, dated January 22, 2009,
    filed as an exhibit to the Companys Current Report on Form
    8-K/A dated January 28, 2009, is incorporated by reference
    herein.4
.2

Rights Agreement between the Company and ChaseMellon Shareholder
    Services, L.L.C., as rights agent, dated February 4, 1999, filed
    as an exhibit to the Companys Current Report on Form 8-K
    dated February 4, 1999, is incorporated by reference herein.4
.3

First Amendment, dated as of April 29, 2005, to the Rights
    Agreement, dated as of February 4, 1999, between the Company and
    Mellon Investor Services LLC, as rights agent, filed as an
    exhibit to the Companys Quarterly Report on Form 10-Q for
    the quarter ended May 31, 2005, is incorporated by reference
    herein.4
.4

Second Amendment, dated as of January 22, 2009, to the Rights
    Agreement, dated as of February 4, 1999 and amended as of April
    29, 2005, between the Company and Mellon Investor  Services LLC,
    as rights agent, filed as an exhibit to the Companys
    Current Report on Form 8-K/A dated January 28, 2009, is
    incorporated by reference herein.4
.5

Indenture and Supplemental Indenture relating to
    53/4% Senior
    Notes due 2014 among the Company, the Guarantors and Sun
    Trust Bank, Atlanta, each dated January 28, 2004,
    filed as exhibits to the Companys Registration Statement
    No. 333-114761
    on
    Form S-4,
    are incorporated by reference herein.4
.6

Second Supplemental Indenture relating to
    63/8% Senior
    Notes due 2011 among the Company, the Guarantors and Sun
    Trust Bank, Atlanta, dated June 30, 2004, filed as an
    exhibit to the Companys registration statement
    No. 333-119228
    on
    Form S-4,
    is incorporated by reference herein.4
.7

Third Supplemental Indenture relating to the Companys
    Senior Notes by and between the Company, the Guarantors named
    therein, the Subsidiary Guarantor named therein and SunTrust
    Bank, dated as of May 1, 2006, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated May 3, 2006, is incorporated by reference herein.4
.8

Fourth Supplemental Indenture relating to the Companys
    Senior Notes by and between the Company, the Guarantors named
    therein and U.S. Bank National Association, dated as of
    November 9, 2006, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated November 13, 2006, is incorporated by reference
    herein.4
.9

Fifth Supplemental Indenture, dated August 17, 2007,
    relating to the Companys Senior Notes by and between the
    Company, the Guarantors, and the Trustee, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated August 22, 2007, is incorporated by reference herein. 104




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##### Table of Contents



ExhibitNumber

Description4
.10

Specimen of
    53/4% Senior
    Notes due 2014, filed as an exhibit to the Companys
    Registration Statement
    No. 333-114761
    on
    Form S-4,
    is incorporated by reference herein.4
.11

Specimen of
    57/8% Senior
    Notes due 2015, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated December 15, 2004, is incorporated by reference
    herein.4
.12

Form of officers certificates and guarantors
    certificates establishing the terms of the
    57/8% Senior
    Notes due 2015, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated December 15, 2004, is incorporated by reference
    herein.4
.13

Specimen of
    61/4%
    Senior Notes due 2015, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated June 2, 2005, is incorporated by reference herein.4
.14

Form of officers certificates and guarantors
    certificates establishing the terms of the
    61/4%
    Senior Notes due 2015, filed as an exhibit to the Companys
    Current Report on Form 8-K dated June 2, 2005, is
    incorporated by reference herein.4
.15

Specimen of
    61/4%
    Senior Notes due 2015, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated June 27, 2005, is incorporated by reference herein.4
.16

Form of officers certificates and guarantors
    certificates establishing the terms of the
    61/4%
    Senior Notes due 2015, filed as an exhibit to the Companys
    Current Report on Form 8-K dated June 27, 2005, is
    incorporated by reference herein.4
.17

Specimen of
    71/4% Senior
    Notes due 2018, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated April 3, 2006, is incorporated by reference herein.4
.18

Form of officers certificates and guarantors
    certificates establishing the terms of the
    71/4% Senior
    Notes due 2018, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated April 3, 2006, is incorporated by reference herein.4
.19

Specimen of 9.100% Senior Notes due 2017, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated July 30, 2009, is incorporated by reference herein.4
.20

Form of officers certificates and guarantors
    certificates establishing the terms of the 9.100% Senior Notes
    due 2017, filed as an exhibit to the Companys Current
    Report on
    Form 8-K
    dated July 30, 2009, is incorporated by reference herein.10
.1

Consent Order, Federal Trade Commission Docket No. C-2954,
    dated February 12, 1979, filed as an exhibit to the
    Companys Registration Statement No. 33-6471 on
    Form S-1, is incorporated by reference herein.10
.2*

Kaufman and Broad, Inc. Executive Deferred Compensation Plan,
    effective as of July 11, 1985, filed as an exhibit to the
    Companys 2007 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.3*

Amendment to Kaufman and Broad, Inc. Executive Deferred
    Compensation Plan for amounts earned or vested on or after
    January 1, 2005, effective January 1, 2009, filed as
    an exhibit to the Companys 2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.4*

KB Home 1986 Stock Option Plan, as amended and restated on
    October 2, 2008, filed as an exhibit to the Companys
    2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.5*

KB Home 1988 Employee Stock Plan, as amended and restated on
    October 2, 2008, filed as an exhibit to the Companys
    2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.6*

Kaufman and Broad Home Corporation Directors Deferred
    Compensation Plan established effective as of July 27, 1989,
    filed as an exhibit to the Companys 2007 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.7

Consent decree, dated July 2, 1991, relating to Federal
    Trade Commission Consent Order, filed as an exhibit to the
    Companys 2007 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.8*

KB Home Performance-Based Incentive Plan for Senior Management,
    as amended and restated on October 2, 2008, filed as an
    exhibit to the Companys 2008 Annual Report on Form 10-K,
    is incorporated by reference herein.10
.9*

Form of Stock Option Agreement under KB Home Performance-Based
    Incentive Plan for Senior Management, filed as an exhibit to the
    Companys 1995 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.10*

KB Home Unit Performance Program, filed as an exhibit to the
    Companys 1996 Annual Report on Form 10-K, is
    incorporated by reference herein. 105




---



##### Table of Contents



ExhibitNumber

Description10
.11*

KB Home 1998 Stock Incentive Plan, as amended and restated on
    October 2, 2008 , filed as an exhibit to the Companys
    2008 Annual Report on Form 10-K, is incorporated by reference
    herein.10
.12

KB Home Directors Legacy Program, as amended
    January 1, 1999, filed as an exhibit to the Companys
    1998 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.13

Trust Agreement between Kaufman and Broad Home Corporation and
    Wachovia Bank, N.A. as Trustee, dated as of August 27,
    1999, filed as an exhibit to the Companys 1999 Annual
    Report on
    Form 10-K,
    is incorporated by reference herein.10
.14*

Amended and Restated KB Home 1999 Incentive Plan, as amended and
    restated on October 2, 2008, filed as an exhibit to the
    Companys 2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.15*

Form of Non-Qualified Stock Option Agreement under the
    Companys Amended and Restated 1999 Incentive Plan, filed
    as an exhibit to the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended May 31, 2006, is incorporated by
    reference herein.10
.16*

Form of Incentive Stock Option Agreement under the
    Companys Amended and Restated 1999 Incentive Plan, filed
    as an exhibit to the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended May 31, 2006, is incorporated by
    reference herein.10
.17*

Form of Restricted Stock Agreement under the Companys
    Amended and Restated 1999 Incentive Plan, filed as an exhibit to
    the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended May 31, 2006, is incorporated by
    reference herein.10
.18*

Form of Amended and Restated 1999 Incentive Plan Stock
    Appreciation Right Agreement, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.19*

Form of Amended and Restated 1999 Incentive Plan Phantom Share
    Agreement, filed as an exhibit to the Companys Current
    Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.20*

Amended and Restated Employment Agreement of Bruce Karatz, dated
    July 11, 2001, filed as an exhibit to the Companys
    Quarterly Report on Form 10-Q for the quarter ended
    August 31, 2001, is incorporated by reference herein.10
.21*

Tolling Agreement, dated as of November 12, 2006, by and
    between the Company and Bruce Karatz, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated November 13, 2006, is incorporated by reference
    herein.10
.22*

KB Home 2001 Stock Incentive Plan, as amended and restated on
    October 2, 2008, filed as an exhibit to the Companys
    2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.23*

Form of Stock Option Agreement under the Companys 2001
    Stock Incentive Plan, filed as an exhibit to the Companys
    2006 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.24*

Form of Stock Restriction Agreement under the Companys
    2001 Stock Incentive Plan, filed as an exhibit to the
    Companys 2006 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.25*

KB Home Nonqualified Deferred Compensation Plan with respect to
    deferrals prior to January 1, 2005, effective March 1,
    2001, filed as an exhibit to the Companys 2001 Annual
    Report on
    Form 10-K,
    is incorporated by reference herein.10
.26*

KB Home Nonqualified Deferred Compensation Plan with respect to
    deferrals on and after January 1, 2005, effective
    January 1, 2009, filed as an exhibit to the Companys
    2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.27*

KB Home Change in Control Severance Plan, as amended and
    restated effective January 1, 2009, filed as an exhibit to
    the Companys 2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.28*

KB Home Death Benefit Only Plan, filed as an exhibit to the
    Companys 2001 Annual Report on Form 10-K, is
    incorporated by reference herein.10
.29*

Amendment No. 1 to the KB Home Death Benefit Only Plan,
    effective as of January 1, 2009, filed as an exhibit to the
    Companys 2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.30*

KB Home Retirement Plan, as amended and restated effective
    January 1, 2009, filed as an exhibit to the Companys
    2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.31

KB Home Non-Employee Directors Stock Plan, as amended and
    restated effective January 1, 2009, filed as an exhibit to
    the Companys 2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein. 106




---



##### Table of Contents



ExhibitNumber

Description10
.32

Revolving Loan Agreement, dated as of November 22, 2005,
    filed as an exhibit to the Companys Current Report on
    Form 8-K
    dated November 23, 2005, is incorporated by reference
    herein.10
.33

First Amendment, dated as of October 10, 2006, to the
    Revolving Loan Agreement dated as of November 22, 2005
    among the Company, the lenders party thereto and Bank of
    America, N.A., as Administrative Agent, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated October 19, 2006, is incorporated by reference herein.10
.34

Second Amendment to the Revolving Loan Agreement dated as of
    November 22, 2005 among KB Home, the lenders party thereto,
    and Bank of America, N.A., as Administrative Agent, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated December 12, 2006, is incorporated by reference
    herein.10
.35

Third Amendment Agreement, dated August 17, 2007, to
    Revolving Loan Agreement, dated as of November 22, 2005,
    between the Company, as Borrower, the banks party thereto, and
    Bank of America, N.A., as Administrative Agent, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated August 22, 2007, is incorporated by reference herein.10
.36

Fourth Amendment Agreement, dated January 25, 2008, to
    Revolving Loan Agreement, dated as of November 22, 2005,
    between the Company, as Borrower, the banks party thereto, and
    Bank of America, N.A., as Administrative Agent, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated January 28, 2008, is incorporated by reference herein.10
.37

Fifth Amendment, dated August 28, 2008, to Revolving Loan
    Agreement, dated as of November 22, 2005, among the
    Company, as Borrower, the banks party thereto, and Bank of
    America, N.A., as Administrative Agent, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated August 29, 2008, is incorporated by reference herein.10
.38*

Employment Agreement of Jeffrey T. Mezger, dated
    February 28, 2007, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated March 6, 2007, is incorporated by reference herein.10
.39*

Amendment to the Employment Agreement of Jeffrey T. Mezger,
    dated December 24, 2008, filed as an exhibit to the
    Companys 2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.40*

Amended and Restated 1999 Incentive Plan Performance Stock
    Agreement between the Company and Jeffrey T. Mezger, filed
    as an exhibit to the Companys Current Report on Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.41*

Form of Stock Option Agreement under the Employment Agreement
    between the Company and Jeffrey T. Mezger dated as of
    February 28, 2007, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.42*

Form of Stock Option Agreement under the Amended and Restated
    1999 Incentive Plan for stock option grant to Jeffrey T.
    Mezger, filed as an exhibit to the Companys Quarterly
    Report on Form 10-Q for the quarter ended August 31,
    2007, is incorporated by reference herein.10
.43*

Form of Phantom Share Agreement for Non-Senior Management, filed
    as an exhibit to the Companys Current Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.44*

Form of Over Cap Phantom Share Agreement, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.45*

Description of fiscal year 2007 bonus arrangements with the
    Companys Named Executive Officers and description of
    fiscal year 2008 annual incentive compensation arrangements with
    executive officers, each determined on January 22, 2008,
    filed on the Companys Current Report on
    Form 8-K
    dated January 25, 2008, is incorporated by reference herein.10
.46*

Policy Regarding Stockholder Approval of Certain Severance
    Payments, adopted July 10, 2008, filed as an exhibit to the
    Companys Current Report on Form 8-K dated
    July 15, 2008, is incorporated by reference herein.10
.47*

KB Home Executive Severance Plan, filed as an exhibit to the
    Companys Quarterly Report on
    Form 10-Q
    for the quarter ended August 31, 2008, is incorporated by
    reference herein.10
.48*

Description of Fiscal Year 2009 Long-Term Incentive Awards to
    the Companys Named Executive Officers granted on
    October 2, 2008, filed on the Companys Current Report
    on
    Form 8-K
    dated October 8, 2008, is incorporated by reference herein.10
.49*

Form of Fiscal Year 2009 Stock Appreciation Rights Agreement,
    filed as an exhibit to the Companys Current Report on
    Form 8-K
    dated October 8, 2008, is incorporated by reference herein. 107




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##### Table of Contents



ExhibitNumber

Description10
.50*

Form of Fiscal Year 2009 Phantom Shares Agreement, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated October 8, 2008, is incorporated by reference herein.10
.51*

KB Home Annual Incentive Plan for Executive Officers, filed as
    Attachment C to the Companys Proxy Statement on Schedule
    14A for the 2009 Annual Meeting of Stockholders, is incorporated
    by reference herein.10
.52

Amendment to Trust Agreement by and between KB Home and Wachovia
    Bank, N.A., dated August 24, 2009, filed as an exhibit to
    the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended August 31, 2009, is incorporated by
    reference herein.10
.53

Amended and Restated KB Home Non-Employee Directors Compensation
    Plan, effective as of July 9, 2009.10
.54*

Offer Letter to Raymond P. Silcock dated September 1, 2009.10
.55*

Separation Agreement between the Company and Raymond P. Silcock
    dated December 16, 2009 and supplemental letter dated
    December 18, 2009.12
.1

Computation of Ratio of Earnings to Fixed Charges.21


Subsidiaries of the Registrant.23


Consent of Independent Registered Public Accounting Firm.31
.1

Certification of Jeffrey T. Mezger, President and Chief
    Executive Officer of KB Home Pursuant to Section 302
    of the
    Sarbanes-Oxley
    Act of 2002.31
.2

Certification of William R. Hollinger, Senior Vice President and
    Chief Accounting Officer of KB Home Pursuant to Section 302
    of the
    Sarbanes-Oxley
    Act of 2002.32
.1

Certification of Jeffrey T. Mezger, President and Chief
    Executive Officer of KB Home Pursuant to 18 U.S.C.
    Section 1350, as Adopted Pursuant to Section 906 of
    the
    Sarbanes-Oxley
    Act of 2002.32
.2

Certification of William R. Hollinger, Senior Vice President and
    Chief Accounting Officer of KB Home Pursuant to 18 U.S.C.
    Section 1350, as Adopted Pursuant to Section 906 of
    the
    Sarbanes-Oxley
    Act of 2002.        Financial
    Statement Schedules
   108




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##### Table of Contents



SIGNATURES      By:
    /s/  WILLIAM
    R. HOLLINGER        Signature

Title

Date/s/  JEFFREY T. MEZGERJeffrey T. Mezger

Director, President and
    Chief Executive Officer
    (Principal Executive Officer)

January 21, 2010/s/  WILLIAM R. HOLLINGERWilliam R. Hollinger

Senior Vice President and
    Chief Accounting Officer
    (Principal Financial and Accounting Officer)

January 21, 2010/s/  STEPHEN F. BOLLENBACHStephen F. Bollenbach

Chairman of the Board and Director

January 21, 2010/s/  RONALD W. BURKLERonald W. Burkle

Director

January 21, 2010/s/  TIMOTHY W. FINCHEMTimothy W. Finchem

Director

January 21, 2010/s/  KENNETH M. JASTROW, IIKenneth M. Jastrow, II

Director

January 21, 2010/s/  ROBERT L. JOHNSONRobert L. Johnson

Director

January 21, 2010/s/  MELISSA LORAMelissa Lora

Director

January 21, 2010/s/  MICHAEL G. MCCAFFERYMichael G. McCaffery

Director

January 21, 2010/s/  LESLIE MOONVESLeslie Moonves

Director

January 21, 2010/s/  LUIS G. NOGALESLuis G. Nogales

Director

January 21, 2010  109




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##### Table of Contents



LIST OF
    EXHIBITS FILED
  SequentialExhibit



PageNumber

Description

Number2
.1

Share Purchase Agreement, dated May 22, 2007, by and
    between KB Home, Kaufman and Broad Development Group,
    International Mortgage Acceptance Corporation, Kaufman and Broad
    International, Inc. and Financière Gaillon 8 S.A.S., filed
    as an exhibit to the Companys Current Report on
    Form 8-K
    dated May 22, 2007, is incorporated by reference herein.3
.1

Restated Certificate of Incorporation, filed as an exhibit to
    the Companys Quarterly Report on Form 10-Q for the quarter
    ended February 28, 2007, is incorporated by reference
    herein.3
.2

Certificate of Designation of Series A Participating Cumulative
    Preferred Stock, dated as of January 22, 2009, filed as an
    exhibit to the Companys Current Report on Form 8-K/A
    dated January 28, 2009, is incorporated by reference herein.3
.3

By-Laws, as amended and restated on April 5, 2007, filed as an
    exhibit to the Companys Quarterly Report on Form 10-Q for
    the quarter ended February 28, 2007, is incorporated by
    reference herein.3
.4

Restated Certificate of Incorporation, as amended, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated April 7, 2009, is incorporated by reference herein.4
.1

Rights Agreement between the Company and Mellon Investor
    Services LLC, as rights agent, dated January 22, 2009,
    filed as an exhibit to the Companys Current Report on
    Form 8-K/A dated January 28, 2009, is incorporated by
    reference herein.4
.2

Rights Agreement between the Company and ChaseMellon Shareholder
    Services, L.L.C., as rights agent, dated February 4, 1999, filed
    as an exhibit to the Companys Current Report on Form 8-K
    dated February 4, 1999, is incorporated by reference herein.4
.3

First Amendment, dated as of April 29, 2005, to the Rights
    Agreement, dated as of February 4, 1999, between the Company and
    Mellon Investor Services LLC, as rights agent, filed as an
    exhibit to the Companys Quarterly Report on Form 10-Q for
    the quarter ended May 31, 2005, is incorporated by reference
    herein.4
.4

Second Amendment, dated as of January 22, 2009, to the Rights
    Agreement, dated as of February 4, 1999 and amended as of April
    29, 2005, between the Company and Mellon Investor  Services LLC,
    as rights agent, filed as an exhibit to the Companys
    Current Report on Form 8-K/A dated January 28, 2009, is
    incorporated by reference herein.4
.5

Indenture and Supplemental Indenture relating to
    53/4% Senior
    Notes due 2014 among the Company, the Guarantors and Sun
    Trust Bank, Atlanta, each dated January 28, 2004,
    filed as exhibits to the Companys Registration Statement
    No. 333-114761
    on
    Form S-4,
    are incorporated by reference herein.4
.6

Second Supplemental Indenture relating to
    63/8% Senior
    Notes due 2011 among the Company, the Guarantors and Sun
    Trust Bank, Atlanta, dated June 30, 2004, filed as an
    exhibit to the Companys registration statement
    No. 333-119228
    on
    Form S-4,
    is incorporated by reference herein.4
.7

Third Supplemental Indenture relating to the Companys
    Senior Notes by and between the Company, the Guarantors named
    therein, the Subsidiary Guarantor named therein and SunTrust
    Bank, dated as of May 1, 2006, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated May 3, 2006, is incorporated by reference herein.4
.8

Fourth Supplemental Indenture relating to the Companys
    Senior Notes by and between the Company, the Guarantors named
    therein and U.S. Bank National Association, dated as of
    November 9, 2006, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated November 13, 2006, is incorporated by reference
    herein.




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##### Table of Contents



SequentialExhibit



PageNumber

Description

Number4
.9

Fifth Supplemental Indenture, dated August 17, 2007,
    relating to the Companys Senior Notes by and between the
    Company, the Guarantors, and the Trustee, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated August 22, 2007, is incorporated by reference herein.4
.10

Specimen of
    53/4% Senior
    Notes due 2014, filed as an exhibit to the Companys
    Registration Statement
    No. 333-114761
    on
    Form S-4,
    is incorporated by reference herein.4
.11

Specimen of
    57/8% Senior
    Notes due 2015, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated December 15, 2004, is incorporated by reference
    herein.4
.12

Form of officers certificates and guarantors
    certificates establishing the terms of the
    57/8% Senior
    Notes due 2015, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated December 15, 2004, is incorporated by reference
    herein.4
.13

Specimen of
    61/4%
    Senior Notes due 2015, filed as an exhibit to the Companys
    Current Report on Form 8-K dated June 2, 2005, is
    incorporated by reference herein.4
.14

Form of officers certificates and guarantors
    certificates establishing the terms of the
    61/4%
    Senior Notes due 2015, filed as an exhibit to the Companys
    Current Report on Form 8-K dated June 2, 2005, is
    incorporated by reference herein.4
.15

Specimen of
    61/4%
    Senior Notes due 2015, filed as an exhibit to the Companys
    Current Report on Form 8-K dated June 27, 2005, is
    incorporated by reference herein.4
.16

Form of officers certificates and guarantors
    certificates establishing the terms of the
    61/4%
    Senior Notes due 2015, filed as an exhibit to the Companys
    Current Report on Form 8-K dated June 27, 2005, is
    incorporated by reference herein.4
.17

Specimen of
    71/4% Senior
    Notes due 2018, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated April 3, 2006, is incorporated by reference herein.4
.18

Form of officers certificates and guarantors
    certificates establishing the terms of the
    71/4% Senior
    Notes due 2018, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    dated April 3, 2006, is incorporated by reference herein.4
.19

Specimen of 9.100% Senior Notes due 2017, filed as an exhibit to
    the Companys Current Report on Form 8-K dated July 30,
    2009, is incorporated by reference herein.4
.20

Form of officers certificates and guarantors
    certificates establishing the terms of the 9.100% Senior Notes
    due 2017, filed as an exhibit to the Companys Current
    Report on Form 8-K dated July 30, 2009, is incorporated by
    reference herein.10
.1

Consent Order, Federal Trade Commission Docket No. C-2954,
    dated February 12, 1979, filed as an exhibit to the
    Companys Registration Statement No. 33-6471 on
    Form S-1, is incorporated by reference herein.10
.2*

Kaufman and Broad, Inc. Executive Deferred Compensation Plan,
    effective as of July 11, 1985, filed as an exhibit to the
    Companys 2007 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.3*

Amendment to Kaufman and Broad, Inc. Executive Deferred
    Compensation Plan for amounts earned or vested on or after
    January 1, 2005, effective January 1, 2009, filed as
    an exhibit to the Companys 2008 Annual Report on Form
    10-K, is incorporated by reference herein.10
.4*

KB Home 1986 Stock Option Plan, as amended and restated on
    October 2, 2008, filed as an exhibit to the Companys
    2008 Annual Report on Form 10-K, is incorporated by reference
    herein.10
.5*

KB Home 1988 Employee Stock Plan, as amended and restated on
    October 2, 2008, filed as an exhibit to the Companys
    2008 Annual Report on Form 10-K, is incorporated by reference
    herein.




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##### Table of Contents



SequentialExhibit



PageNumber

Description

Number10
.6*

Kaufman and Broad Home Corporation Directors Deferred
    Compensation Plan established effective as of July 27, 1989,
    filed as an exhibit to the Companys 2007 Annual Report on
    Form 10-K, is incorporated by reference herein.10
.7

Consent decree, dated July 2, 1991, relating to Federal
    Trade Commission Consent Order, filed as an exhibit to the
    Companys 2007 Annual Report on Form 10-K, is incorporated
    by reference herein.10
.8*

KB Home Performance-Based Incentive Plan for Senior Management,
    as amended and restated on October 2, 2008, filed as an
    exhibit to the Companys 2008 Annual Report on Form 10-K,
    is incorporated by reference herein.10
.9*

Form of Stock Option Agreement under KB Home Performance-Based
    Incentive Plan for Senior Management, filed as an exhibit to the
    Companys 1995 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.10*

KB Home Unit Performance Program, filed as an exhibit to the
    Companys 1996 Annual Report on Form 10-K, is
    incorporated by reference herein.10
.11*

KB Home 1998 Stock Incentive Plan, as amended and restated on
    October 2, 2008, filed as an exhibit to the Companys
    2008 Annual Report on Form 10-K, is incorporated by reference
    herein.10
.12

KB Home Directors Legacy Program, as amended
    January 1, 1999, filed as an exhibit to the Companys
    1998 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.13

Trust Agreement between Kaufman and Broad Home Corporation and
    Wachovia Bank, N.A. as Trustee, dated as of August 27,
    1999, filed as an exhibit to the Companys 1999 Annual
    Report on
    Form 10-K,
    is incorporated by reference herein.10
.14*

Amended and Restated KB Home 1999 Incentive Plan, as amended and
    restated on October 2, 2008, filed as an exhibit to the
    Companys 2008 Annual Report on Form 10-K, is
    incorporated by reference herein.10
.15*

Form of Non-Qualified Stock Option Agreement under the
    Companys Amended and Restated 1999 Incentive Plan, filed
    as an exhibit to the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended May 31, 2006, is incorporated by
    reference herein.10
.16*

Form of Incentive Stock Option Agreement under the
    Companys Amended and Restated 1999 Incentive Plan, filed
    as an exhibit to the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended May 31, 2006, is incorporated by
    reference herein.10
.17*

Form of Restricted Stock Agreement under the Companys
    Amended and Restated 1999 Incentive Plan, filed as an exhibit to
    the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended May 31, 2006, is incorporated by
    reference herein.10
.18*

Form of Amended and Restated 1999 Incentive Plan Stock
    Appreciation Right Agreement, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.19*

Form of Amended and Restated 1999 Incentive Plan Phantom Share
    Agreement, filed as an exhibit to the Companys Current
    Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.20*

Amended and Restated Employment Agreement of Bruce Karatz, dated
    July 11, 2001, filed as an exhibit to the Companys
    Quarterly Report on Form 10-Q for the quarter ended
    August 31, 2001, is incorporated by reference herein.10
.21*

Tolling Agreement, dated as of November 12, 2006, by and
    between the Company and Bruce Karatz, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated November 13, 2006, is incorporated by reference
    herein.10
.22*

KB Home 2001 Stock Incentive Plan, as amended and restated on
    October 2, 2008, filed as an exhibit to the Companys
    2008 Annual Report on Form 10-K, is incorporated by reference
    herein.




---



##### Table of Contents



SequentialExhibit



PageNumber

Description

Number10
.23*

Form of Stock Option Agreement under the Companys 2001
    Stock Incentive Plan, filed as an exhibit to the Companys
    2006 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.24*

Form of Stock Restriction Agreement under the Companys
    2001 Stock Incentive Plan, filed as an exhibit to the
    Companys 2006 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.25*

KB Home Nonqualified Deferred Compensation Plan with respect to
    deferrals prior to January 1, 2005, effective March 1,
    2001, filed as an exhibit to the Companys 2001 Annual
    Report on
    Form 10-K,
    is incorporated by reference herein.10
.26*

KB Home Nonqualified Deferred Compensation Plan with respect to
    deferrals on and after January 1, 2005, effective
    January 1, 2009, filed as an exhibit to the Companys
    2008 Annual Report on Form 10-K, is incorporated by reference
    herein.10
.27*

KB Home Change in Control Severance Plan, as amended and
    restated effective January 1, 2009, filed as an exhibit to
    the Companys 2008 Annual Report on Form 10-K, is
    incorporated by reference herein.10
.28*

KB Home Death Benefit Only Plan, filed as an exhibit to the
    Companys 2001 Annual Report on Form 10-K, is incorporated
    by reference herein.10
.29*

Amendment No. 1 to the KB Home Death Benefit Only Plan,
    effective as of January 1, 2009, filed as an exhibit to the
    Companys 2008 Annual Report on Form 10-K, is incorporated
    by reference herein.10
.30*

KB Home Retirement Plan, as amended and restated effective
    January 1, 2009, filed as an exhibit to the Companys
    2008 Annual Report on Form 10-K, is incorporated by reference
    herein.10
.31

KB Home Non-Employee Directors Stock Plan, as amended and
    restated effective January 1, 2009, filed as an exhibit to
    the Companys 2008 Annual Report on Form 10-K, is
    incorporated by reference herein.10
.32

Revolving Loan Agreement, dated as of November 22, 2005,
    filed as an exhibit to the Companys Current Report on
    Form 8-K
    dated November 23, 2005, is incorporated by reference
    herein.10
.33

First Amendment, dated as of October 10, 2006, to the
    Revolving Loan Agreement dated as of November 22, 2005
    among the Company, the lenders party thereto and Bank of
    America, N.A., as Administrative Agent, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated October 19, 2006, is incorporated by reference herein.10
.34

Second Amendment to the Revolving Loan Agreement dated as of
    November 22, 2005 among KB Home, the lenders party thereto,
    and Bank of America, N.A., as Administrative Agent, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated December 12, 2006, is incorporated by reference
    herein.10
.35

Third Amendment Agreement, dated August 17, 2007, to
    Revolving Loan Agreement, dated as of November 22, 2005,
    between the Company, as Borrower, the banks party thereto, and
    Bank of America, N.A., as Administrative Agent, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated August 22, 2007, is incorporated by reference herein.10
.36

Fourth Amendment Agreement, dated January 25, 2008, to
    Revolving Loan Agreement, dated as of November 22, 2005,
    between the Company, as Borrower, the banks party thereto, and
    Bank of America, N.A., as Administrative Agent, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated January 28, 2008, is incorporated by reference herein.10
.37

Fifth Amendment, dated August 28, 2008, to Revolving Loan
    Agreement, dated as of November 22, 2005, among the
    Company, as Borrower, the banks party thereto, and Bank of
    America, N.A., as Administrative Agent, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated August 29, 2008, is incorporated by reference herein.




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##### Table of Contents



SequentialExhibit



PageNumber

Description

Number10
.38*

Employment Agreement of Jeffrey T. Mezger, dated
    February 28, 2007, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated March 6, 2007, is incorporated by reference herein.10
.39*

Amendment to the Employment Agreement of Jeffrey T. Mezger,
    dated December 24, 2008, filed as an exhibit to the
    Companys 2008 Annual Report on
    Form 10-K,
    is incorporated by reference herein.10
.40*

Amended and Restated 1999 Incentive Plan Performance Stock
    Agreement between the Company and Jeffrey T. Mezger, filed
    as an exhibit to the Companys Current Report on Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.41*

Form of Stock Option Agreement under the Employment Agreement
    between the Company and Jeffrey T. Mezger dated as of
    February 28, 2007, filed as an exhibit to the
    Companys Current Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.42*

Form of Stock Option Agreement under the Amended and Restated
    1999 Incentive Plan for stock option grant to Jeffrey T.
    Mezger, filed as an exhibit to the Companys Quarterly
    Report on Form 10-Q for the quarter ended August 31,
    2007, is incorporated by reference herein.10
.43*

Form of Phantom Share Agreement for Non-Senior Management, filed
    as an exhibit to the Companys Current Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.44*

Form of Over Cap Phantom Share Agreement, filed as an exhibit to
    the Companys Current Report on
    Form 8-K
    dated July 18, 2007, is incorporated by reference herein.10
.45*

Description of fiscal year 2007 bonus arrangements with the
    Companys Named Executive Officers and description of
    fiscal year 2008 annual incentive compensation arrangements with
    executive officers, each determined on January 22, 2008,
    filed on the Companys Current Report on
    Form 8-K
    dated January 25, 2008, is incorporated by reference herein.10
.46*

Policy Regarding Stockholder Approval of Certain Severance
    Payments, adopted July 10, 2008, filed as an exhibit to the
    Companys Current Report on Form 8-K dated
    July 15, 2008, is incorporated by reference herein.10
.47*

KB Home Executive Severance Plan, filed as an exhibit to the
    Companys Quarterly Report on
    Form 10-Q
    for the quarter ended August 31, 2008, is incorporated by
    reference herein.10
.48*

Description of Fiscal Year 2009 Long-Term Incentive Awards to
    the Companys Named Executive Officers granted on
    October 2, 2008, filed on the Companys Current Report
    on
    Form 8-K
    dated October 8, 2008, is incorporated by reference herein.10
.49*

Form of Fiscal Year 2009 Stock Appreciation Rights Agreement,
    filed as an exhibit to the Companys Current Report on
    Form 8-K
    dated October 8, 2008, is incorporated by reference herein.10
.50*

Form of Fiscal Year 2009 Phantom Shares Agreement, filed as an
    exhibit to the Companys Current Report on
    Form 8-K
    dated October 8, 2008, is incorporated by reference herein.10
.51*

KB Home Annual Incentive Plan for Executive Officers, filed as
    Attachment C to the Companys Proxy Statement on Schedule
    14A for the 2009 Annual Meeting of Stockholders, is incorporated
    by reference herein.10
.52

Amendment to Trust Agreement by and between KB Home and Wachovia
    Bank, N.A., dated August 24, 2009, filed as an exhibit to
    the Companys Quarterly Report on
    Form 10-Q
    for the quarter ended August 31, 2009, is incorporated by
    reference herein.10
.53

Amended and Restated KB Home Non-Employee Directors Compensation
    Plan, effective as of July 9, 2009.




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##### Table of Contents



SequentialExhibit



PageNumber

Description

Number10
.54*

Offer Letter to Raymond P. Silcock dated September 1, 2009.10
.55*

Separation Agreement between the Company and Raymond P. Silcock
    dated December 16, 2009 and supplemental letter dated
    December 18, 2009.12
.1

Computation of Ratio of Earnings to Fixed Charges.21


Subsidiaries of the Registrant.23


Consent of Independent Registered Public Accounting Firm.31
.1

Certification of Jeffrey T. Mezger, President and Chief
    Executive Officer of KB Home Pursuant to Section 302
    of the
    Sarbanes-Oxley
    Act of 2002.31
.2

Certification of William R. Hollinger, Senior Vice President and
    Chief Accounting Officer of KB Home Pursuant to Section 302
    of the
    Sarbanes-Oxley
    Act of 2002.32
.1

Certification of Jeffrey T. Mezger, President and Chief
    Executive Officer of KB Home Pursuant to 18 U.S.C.
    Section 1350, as Adopted Pursuant to Section 906 of
    the
    Sarbanes-Oxley
    Act of 2002.32
.2

Certification of William R. Hollinger, Senior Vice
    President and Chief Accounting Officer of KB Home Pursuant
    to 18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the
    Sarbanes-Oxley
    Act of 2002.       
    Document filed with this
    Form 10-K.