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EXHIBIT 11
KAUFMAN AND BROAD HOME CORPORATION
STATEMENT OF COMPUTATION OF PER SHARE EARNINGS (LOSS)
(In Thousands Except Per Share Amounts - Unaudited)
Six Months Ended May 31, Three Months Ended May 31,
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1996 1995 1996 1995
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PRIMARY:
Net income (loss) $ (94,396) $ 4,276 $ (98,482) $ 3,841
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Weighted average common shares
outstanding 34,520 32,382 36,667 32,384
Weighted average Series B convertible
preferred shares (1) 4,333 6,500 2,190 6,500
Common share equivalents:
Stock options 975 865 982 873
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39,828 39,747 39,839 39,757
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PRIMARY EARNINGS (LOSS) PER SHARE (2) $ (2.37) $ .11 $ (2.47) $ .10
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FULLY DILUTED:
Net income (loss) $ (94,396) $ 4,276 $ (98,482) $ 3,841
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Weighted average common shares
outstanding 34,520 32,382 36,667 32,384
Weighted average Series B convertible
preferred shares (1) 4,333 6,500 2,190 6,500
Common share equivalents:
Stock options 977 910 982 922
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39,830 39,792 39,839 39,806
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FULLY DILUTED EARNINGS (LOSS) PER
SHARE (2,3) $ (2.37) $ .11 $ (2.47) $ .10
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(1) Each of the 1,300 Series B convertible preferred shares is convertible into
five shares of common stock. On the mandatory conversion date of April 1,
1996, each of the Company s 6,500 depositary shares, each representing 1/5
of a Series B convertible preferred share was converted into one share of
the Company's common stock.
(2) If, for purposes of calculating primary and fully diluted earnings per
share, the Series B convertible preferred shares were excluded from the
weighted average shares outstanding and the related dividends deducted from
net income, the computations would have resulted in both a primary and fully
diluted loss per share of $2.80 and $.02 for the six months ended May 31,
1996 and 1995, respectively. The same computation would have resulted in
both a primary and fully diluted loss per share of $2.68 for the three
months ended May 31, 1996 and primary and fully diluted earnings per share
of $.04 for the three months ended May 31, 1995.
(3) Fully diluted earnings per share is not disclosed in the Company's
consolidated financial statements since the maximum dilutive effect is not
material.
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