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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)
Nine Months Ended August 31, Three Months Ended August 31,
------------------------------ ---------------------------------
1996 1995 1996 1995
-------------- ------------- --------------- -------------
PRIMARY:
Net income (loss) $ (81,129) $ 11,139 $ 13,267 $ 6,863
============== ============== =============== ==============
Weighted average common shares
outstanding 35,975 32,385 38,868 32,391
Weighted average Series B convertible
preferred shares(1) 2,884 6,500 - 6,500
Common share equivalents:
Stock options 853 883 924 927
-------------- ------------- --------------- -------------
39,712 39,768 39,792 39,818
============== ============== =============== ==============
PRIMARY EARNINGS (LOSS) PER SHARE(2) $ (2.04) $ .28 $ .33 $ .17
============== ============== =============== ==============
FULLY DILUTED:
Net Income (loss) $ (81,129) $ 11,139 $ 13,267 $ 6,863
============== ============== =============== ==============
Weighted average common shares
outstanding 35,975 32,385 38,868 32,391
Weighted average Series B convertible
preferred shares(1) 2,884 6,500 - 6,500
Common share equivalents:
Stock options 853 883 924 927
-------------- -------------- --------------- --------------
39,712 39,768 39,792 39,818
============== ============== =============== ==============
FULLY DILUTED EARNINGS (LOSS)
PER SHARE(2)(3) $ (2.04) $ .28 $ .33 $ .17
============== ============== =============== ==============
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(1) Each of the 1,300 Series B convertible preferred shares were 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 $2.34 for the nine months ended August 31, 1996
and primary and fully diluted earnings per share of $.11 for the nine months
ended August 31, 1995. While this computation is not applicable for the
third quarter of 1996 due to the conversion of the Series B convertible
preferred shares into common stock, the same computation would have resulted
in primary and fully diluted earnings per share of $.13 for the three months
ended August 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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