1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended: December 31, 2000
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _________ to __________
Commission File No. 1-9195
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
KAUFMAN AND BROAD HOME CORPORATION
AMENDED AND RESTATED
401 (k) SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
KB HOME
10990 WILSHIRE BOULEVARD
LOS ANGELES, CALIFORNIA 90024
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AUDITED FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULE
Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Years ended December 31, 2000 and 1999
with Report of Independent Auditors
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Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Audited Financial Statements
and Supplemental Schedule
Years ended December 31, 2000 and 1999
CONTENTS
Report of Independent Auditors 1
Audited Financial Statements:
Statements of Net Assets Available for Benefits
as of December 31, 2000 and 1999 2
Statements of Changes in Net Assets Available for Benefits
for the years ended December 31, 2000 and 1999 3
Notes to Financial Statements 4
Supplemental Schedule:
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) 8
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Report of Independent Auditors
To the Administrative Committee, as Plan Administrator
of the Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
We have audited the accompanying statements of net assets available for benefits
of the Kaufman and Broad Home Corporation Amended and Restated 401(k) Savings
Plan as of December 31, 2000 and 1999, and the related statements of changes in
net assets available for benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2000 and 1999, and the changes in its net assets available for
benefits for the years then ended, in conformity with accounting principles
generally accepted in the United States.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedule of assets
(held at end of year) as of December 31, 2000, is presented for purposes of
additional analysis and is not a required part of the financial statements but
is supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the auditing
procedures applied in our audits of the financial statements and, in our
opinion, is fairly stated, in all material respects, in relation to the
financial statements taken as a whole.
/s/ ERNST & YOUNG LLP
Los Angeles, California
May 25, 2001
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Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Statements of Net Assets Available for Benefits
DECEMBER 31,
----------------------------------
2000 1999
----------- -----------
ASSETS
Investments, at fair value $71,452,156 $55,571,152
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $71,452,156 $55,571,152
=========== ===========
See accompanying notes.
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Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Statements of Changes in Net Assets Available for Benefits
YEAR ENDED DECEMBER 31,
------------------------------------
2000 1999
------------ -----------
ADDITIONS:
Contributions from:
Plan participants $ 9,226,585 $ 7,277,006
Employer, net of forfeitures 5,845,557 3,615,683
------------ -----------
15,072,142 10,892,689
Transfers from other plans 17,698,420 3,134,971
Investment income:
Interest and dividends 5,500,770 4,750,522
Net (depreciation) appreciation in fair value of
investments (8,014,335) 3,592,613
------------ -----------
(2,513,565) 8,343,135
------------ -----------
Total additions 30,256,997 22,370,795
DEDUCTIONS:
Benefits paid to participants 14,264,844 8,240,741
Administrative expenses 111,149 50,986
------------ -----------
Total deductions 14,375,993 8,291,727
------------ -----------
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS 15,881,004 14,079,068
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 55,571,152 41,492,084
------------ -----------
End of year $ 71,452,156 $55,571,152
============ ===========
See accompanying notes.
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Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Notes to Financial Statements
December 31, 2000
1. GENERAL DESCRIPTION OF THE PLAN
The Kaufman and Broad Home Corporation Amended and Restated 401(k) Savings Plan
(the Plan) is a defined contribution plan in which salaried employees of Kaufman
and Broad Home Corporation (the Company) are eligible to enroll on January 1,
April 1, July 1 or October 1 following the completion of 1,000 hours of service
with the Company computed from the date of employment, or full-time employment
for six months.
Participants electing to participate in the Plan may contribute up to 10% of
their annual compensation, on a pretax basis, by means of payroll deduction.
Participants may also contribute up to an additional 9% of their annual
compensation, on an after tax basis, also by means of payroll deduction. All
contributions must be in whole percentages. Pretax contributions are eligible
for tax deferred treatment up to the limits provided by the Tax Reform Act of
1986, as adjusted for cost of living.
Unless otherwise elected by the Board of Directors, the Company will match the
participant's pretax contribution up to 6% of annual base salary (determined
without regard to bonuses and a maximum of $50,000 of regular earnings for
commission employees). Company matching contributions and related investment
income vest to participants over five years.
Plan assets are held by Fidelity Investments Institutional Operations Company,
Inc. (the Trustee). Plan participants may direct the investment of their funds
among one or more of the several fund options offered by the Plan.
Terminating participants may elect (with spousal consent) to withdraw their
contributions, vested Company contributions and related investment income as a
lump sum payment. In the absence of a valid election, the participant's vested
benefits will be distributed in the form of a Qualified Joint and Survivor
Annuity or a Qualified Preretirement Survivor Annuity, or in a lump sum if the
actuarial equivalent is not more than $5,000.
Nonvested Company contributions are forfeited and used by the Company to reduce
future employer contributions.
The Plan allows participant loans and hardship withdrawals subject to certain
limitations.
In the event of Plan termination, benefits of all affected participants, if not
already so, shall become 100% vested and nonforfeitable.
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Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Notes to Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Plan are prepared on an accrual basis.
Investment income is recorded as earned. Distributions of Plan benefits to
withdrawn participants are recorded when distributed. Expenses incurred in the
administration of the Plan are paid by the Company. Expenses incurred related to
terminated participants and participant loans are paid by the Plan.
The financial statements are based on information provided to the Company and
certified as complete and accurate by the Trustee. Certain adjustments have been
made to the financial statements provided by the Trustee in order for them to
conform to the accrual basis of accounting. The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions that could
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
Certain prior year financial statement amounts have been reclassified to conform
to the current year presentations.
3. TRANSFERS FROM OTHER PLANS
Transfers from other plans consist of transfers of participant account balances
from other Company sponsored plans which were merged into the Plan during the
year.
4. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500
The following is a reconciliation of net assets available for benefits between
the financial statements and the Form 5500:
DECEMBER 31,
-----------------------------------
2000 1999
----------- ------------
Net assets available for benefits per
financial statements $71,452,156 $ 55,571,152
Liability recorded in the Form 5500 for
amounts due to withdrawn participants -- (2,652,378)
----------- ------------
Net assets available for benefits
per the Form 5500 $71,452,156 $ 52,918,774
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Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Notes to Financial Statements (continued)
4. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500 (CONTINUED)
The following is a reconciliation of benefits paid to participants between the
financial statements and Form 5500:
DECEMBER 31,
------------------------------------
2000 1999
------------ -----------
Benefits paid to participants per
financial statements $ 14,264,844 $ 8,291,727
Add amounts related to withdrawn
participants at year end -- 2,652,378
Less amounts related to withdrawn
participants from previous year (2,652,378) (1,848,300)
------------ -----------
Benefits paid to participants per the Form 5500 $ 11,612,466 $ 9,095,805
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5. INVESTMENTS
Investments are valued at fair value, which is determined daily by the Trustee
through reference to published market information using closing prices on the
valuation date.
The fair value of the Plan's individual investments that represent five percent
or more of the Plan's net assets as of December 31, 2000 and 1999, were as
follows:
DECEMBER 31,
----------------------------------
2000 1999
----------- -----------
Strong Growth $ 7,105,426 $ 4,081,133
Fidelity Magellan 17,877,966 17,103,279
Fidelity Contrafund 10,452,240 8,104,716
Fidelity Equity Income 7,634,983 7,791,669
Fidelity Asset Manager 5,235,770 3,371,928
Fidelity Retirement Money Market 7,767,083 7,483,622
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Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Notes to Financial Statements (continued)
5. INVESTMENTS (CONTINUED)
Net appreciation (depreciation) of the Plan's investments (including investments
bought, sold, and held during the year) during the years ended December 31, 2000
and 1999, were as follows:
DECEMBER 31,
-----------------------------------
2000 1999
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Mutual funds $(8,832,132) $ 3,647,614
Common stock 817,797 (55,001)
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$(8,014,335) $ 3,592,613
=========== ===========
6. TAX STATUS OF THE PLAN
The Plan has received a determination letter from the Internal Revenue Service
dated May 7, 1991, stating that the Plan is qualified, in form, under Section
401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust
is exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan is qualified and
the related trust is tax exempt.
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Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2000
DESCRIPTION CURRENT
IDENTITY OF ISSUE OF ASSET VALUE
----------------- ---------------------- -----------
Strong Capital Management - Strong Growth Fund 262,677 shares $ 7,105,426
Franklin Templeton - Templeton Developing
Markets Trust I 56,914 shares 602,722
Kaufman and Broad Home Corporation(*)
common stock 83,066 shares 2,798,494
Fidelity(*) Mutual Funds:
Magellan 149,857 shares 17,877,966
Contrafund 212,574 shares 10,452,240
Equity Income 142,897 shares 7,634,983
Intermediate Bond 284,388 shares 2,855,260
Overseas 40,061 shares 1,376,909
Asset Manager 311,282 shares 5,235,770
Low-Priced Stock 101,930 shares 2,356,625
Retirement Money Market 7,767,083 shares 7,767,083
Spartan U.S. Equity Index 74,847 shares 3,503,582
Participant(*) loans Interest rates ranging
from 6% to 10% 1,885,096
-----------
$71,452,156
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(*)Party-in-interest to the Plan.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
Kaufman and Broad Home Corporation
Amended and Restated
401(k) Savings Plan
Dated: July 10, 2001 by: /s/ Cory Cohen
-------------------------------
Cory Cohen
Vice President, Tax
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EXHIBIT INDEX
Sequentially
Exhibit No. Description Numbered Page
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23.1 Independent Auditor's Consent