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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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1997 1996 1997 1996
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PRIMARY:
Net income (loss) $15,149 $(94,396) $10,705 $(98,482)
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Weighted average common
shares outstanding 38,832 34,520 38,836 36,667
Weighted average Series B
convertible preferred shares(1) - 4,333 - 2,190
Common share equivalents:
Stock options 877 975 893 982
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39,709 39,828 39,729 39,839
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PRIMARY EARNINGS (LOSS) PER SHARE(2) $ .38 $ (2.37) $ .27 $ (2.47)
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FULLY DILUTED:
Net income (loss) $15,149 $(94,396) $10,705 $(98,482)
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Weighted average common
shares outstanding 38,832 34,520 38,836 36,667
Weighted average Series B
convertible preferred shares(1) - 4,333 - 2,190
Common share equivalents:
Stock options 1,010 977 1,018 982
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39,842 39,830 39,854 39,839
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FULLY DILUTED EARNINGS (LOSS) PER SHARE(2),(3) $ .38 $ (2.37) $ .27 $ (2.47)
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(1) Each of the 1,300 Series B convertible preferred shares was 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 $2.68 for the six months
and three months ended May 31, 1996, respectively. This computation is
not applicable for the three months and six months ended May 31, 1997
due to the conversion of the Series B convertible preferred shares into
common stock in April 1996.
(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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