Full Description

KB Home is a builder of single-family homes, townhomes and condominiums. The Company operates in Arizona, California, Colorado, Florida, Nevada, North Carolina, South Carolina and Texas. The Company also offers mortgage services through Countrywide KB Home Loans, a joint venture with a subsidiary of Bank of America N.A. Through its financial services subsidiary, KB Home Mortgage Company (KBHMC), the Company provides title and insurance services to its homebuyers. As of November 30, 2008, the Company operated in five reporting segments, which included four homebuilding reporting segments and one financial services reporting segment.

Homebuilding

The Company’s homebuilding activities operate in four reportable segments, which include West Coast, Southwest, Central and Southeast. As of November 30, 2008, its homebuilding segments consisted of operations located in West Coast, which includes California; Southwest, which includes Arizona and Nevada; Central, which includes Colorado and Texas, and Southeast, which includes Florida, North Carolina and South Carolina. During fiscal year ended November 30, 2008 (fiscal 2008), the Company delivered 12,438 homes.

Financial Services

The Company’s financial services segment provides title and insurance services to its homebuyers. This segment also provides mortgage banking services to its homebuyers indirectly through Countrywide KB Home Loans. The Company and CWB Venture Management Corporation, a subsidiary of Bank of America, N.A., each have a 50% ownership interest in Countrywide KB Home Loans. Countrywide KB Home Loans is operated by its joint venture partner.