<PAGE> 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, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 (NO FEE REQUIRED)
For the transition period from _______ to ________
Commission File Number: 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:
KAUFMAN AND BROAD HOME CORPORATION
10990 WILSHIRE BLVD.
LOS ANGELES, CALIFORNIA 90024
<PAGE> 2
KAUFMAN AND BROAD HOME CORPORATION
AMENDED AND RESTATED 401(K) SAVINGS PLAN
Financial Statements and Supplemental Schedules
December 31, 1997
<PAGE> 3
KAUFMAN AND BROAD HOME CORPORATION
AMENDED AND RESTATED 401(K) SAVINGS PLAN
<TABLE>
<CAPTION>
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES PAGE
----
<S> <C>
Report of Independent Auditors 2
Financial Statements:
Statements of Net Assets Available for Plan
Benefits at December 31, 1997 and 1996 3
Statements of Changes in Net Assets Available for
Plan Benefits for the years ended December 31, 1997 and 1996 4
Notes to Financial Statements 5
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment
Purposes at December 31, 1997 14
Item 27d - Schedule of Reportable Transactions for
the year ended December 31, 1997 15
</TABLE>
<PAGE> 4
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 Kaufman and Broad Home Corporation Amended and Restated 401(k) Savings Plan
(the Plan) as of December 31, 1997 and 1996, 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 generally accepted auditing
standards. 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 at
December 31, 1997 and 1996, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1997, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The supplemental schedules have
been subjected to the auditing procedures applied in our audit of the 1997
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the 1997 financial statements taken as a whole.
June 22, 1998 /s/ ERNST & YOUNG LLP
2
<PAGE> 5
KAUFMAN AND BROAD HOME CORPORATION
AMENDED AND RESTATED 401(K) SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
December 31,
-----------------------------------
1997 1996
------------ ------------
<S> <C> <C>
ASSETS:
Investments, at fair value (Note 4) $ 32,760,008 $ 26,599,040
Participant loans receivable 891,406 849,110
------------ ------------
Total Assets 33,651,414 27,448,150
LIABILITIES
Forfeitures payable (688,000) (354,000)
------------ ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 32,963,414 $ 27,094,150
============ ============
</TABLE>
See accompanying notes.
3
<PAGE> 6
KAUFMAN AND BROAD HOME CORPORATION
AMENDED AND RESTATED 401(K) SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
Years Ended December 31,
----------------------------
1997 1996
----------- -----------
<S> <C> <C>
ADDITIONS TO NET ASSETS AVAILABLE
FOR PLAN BENEFITS ATTRIBUTED TO:
Contributions from:
Plan participants $ 3,562,817 $ 3,657,181
Employer 2,297,752 2,188,843
----------- -----------
5,860,569 5,846,024
Forfeitures (699,000) (487,512)
----------- -----------
Net contributions 5,161,569 5,358,512
----------- -----------
Investment income:
Interest and dividends 2,297,253 2,468,157
Net appreciation in fair value
of investments 3,408,714 600,474
----------- -----------
5,705,967 3,068,631
----------- -----------
Total additions 10,867,536 8,427,143
DEDUCTIONS FROM NET ASSETS AVAILABLE FOR
PLAN BENEFITS ATTRIBUTED TO:
Benefits paid to participants (4,998,272) (3,940,804)
----------- -----------
NET INCREASE IN NET ASSETS AVAILABLE FOR
PLAN BENEFITS DURING THE YEAR 5,869,264 4,486,339
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of year 27,094,150 22,607,811
----------- -----------
End of year $32,963,414 $27,094,150
=========== ===========
</TABLE>
See accompanying notes
4
<PAGE> 7
KAUFMAN AND BROAD HOME CORPORATION
AMENDED AND RESTATED 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Kaufman and Broad Home Corporation
Amended and Restated 401(k) Savings Plan (the "Plan") are prepared on an
accrual basis. Investment income is recorded as earned. Distributions of
the Plan benefits to withdrawing participants are recorded when
distributed. Expenses incurred in the administration of the Plan are
paid by Kaufman and Broad Home Corporation (the "Company" and "Plan
Sponsor").
The financial statements are based on information provided to the
Company and certified as complete and accurate by Fidelity Trust
Management Company (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 generally accepted accounting principles
requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
Included in investments are amounts allocated to accounts of persons who
have requested payment of their account balances due to termination,
retirement, or death. Such amounts are classified as components of net
assets available for plan benefits at December 31, 1997 and 1996 in the
amounts of $1,237,800 and $744,000 respectively.
2. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500
The following is a reconciliation of net assets available for plan
benefits between the financial statements and the form 5500:
<TABLE>
<CAPTION>
December 31,
-----------------------------------
1997 1996
------------ ------------
<S> <C> <C>
Net assets available for plan benefits
per financial statements $ 32,963,414 $ 27,094,150
Liability recorded in the Form 5500 for
amounts due to withdrawn participants (1,237,800) (744,000)
------------ ------------
Net assets available for plan benefits
per the Form 5500 $ 31,725,614 $ 26,350,150
============ ============
</TABLE>
5
<PAGE> 8
The following is a reconciliation of benefits paid to participants
between the financial statements and Form 5500:
<TABLE>
<CAPTION>
Years Ended December 31,
---------------------------------
1997 1996
----------- -----------
<S> <C> <C>
Benefits paid to participants
per the financial statements $ 4,998,272 $ 3,940,804
Add: Amounts related to withdrawn
participants at year end 1,237,800 744,000
Less: Amounts related to withdrawn
participants from previous year (744,000) (349,116)
----------- -----------
Benefits paid to participants per the
Form 5500 $ 5,492,072 $ 4,335,688
=========== ===========
</TABLE>
3. GENERAL DESCRIPTION OF THE PLAN
The Plan is a defined contribution plan whereby salaried employees of
the Company are eligible to enroll in the Plan 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 salary
reduction. Participants may also contribute up to an additional 9% of
their annual compensation, on an after tax basis, also by means of
salary reduction. 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 and invested by Fidelity Investments. Plan
participants may direct the investment of their funds among one or more
of the following funds:
Strong Growth Fund is a growth mutual fund. It tries to increase
the value of investments over the long term through capital
growth by investing primarily in stocks that the advisor
believes have above average growth prospects, including common
and preferred stocks, both domestic and abroad. The fund is
managed by Strong Capital Management, Inc.
6
<PAGE> 9
Templeton Developing Markets Trust I is an international growth
fund that invests in emerging or developing markets. The fund is
managed by Templeton Asset Management Ltd. - Hong Kong Branch
and distributed by Franklin Templeton Distributors, Inc.
Kaufman and Broad Common Stock Fund allows participants to
contribute money which Fidelity uses to purchase shares of the
common stock of the Company.
Magellan Fund is a growth fund. It seeks long-term capital
appreciation by investing in the stocks of both well-known and
lesser known companies with potentially above-average growth
potential and a correspondingly higher level of risk. Securities
may be of foreign, domestic, and multinational companies.
Contrafund is a growth fund. It seeks long-term capital
appreciation by investing mainly in the securities of companies
believed to be out of favor or undervalued. The fund invests in
domestic and foreign common stocks and stocks and securities
convertible into common stock, but it may purchase other
securities that may produce capital appreciation.
Equity-Income Fund is a growth and income fund. It invests
primarily in income-producing equity securities (common and
preferred stocks) but can also invest in bonds and convertible
securities.
Intermediate Bond Fund is an income fund. It seeks a high
current income by investing primarily in investment-grade
fixed-income obligations rated Baa or better by Moody's or BBB
or better by Standard & Poor's, including corporate bonds,
mortgage securities, bank obligations and U.S. government and
agency securities. The fund's dollar-weighted average maturity
ranges between three and ten years.
Overseas Fund is an international growth fund. It seeks
long-term capital growth primarily through investments in
foreign securities. These investments may include common stock
and securities convertible into common stock as well as debt
instruments. Normally, at least 65% of the fund's total assets
will be invested in securities of issuers from at least three
different countries outside of North America.
Asset Manager is an asset allocation fund. It seeks high total
return with reduced risk over the long term by allocating its
assets among domestic and foreign stocks, bonds, and short-term
and money market instruments. The fund can allocate its assets
within the following investment parameters: 30-70% in stocks,
20-60% in bonds, and 0-50% in short-term/money market class.
Fidelity Low-Priced Stock Fund is a growth fund. It seeks
capital appreciation and invests mainly in U.S. and foreign
low-priced stocks that may be undervalued, overlooked or out of
favor. Generally, "low-priced" is considered $35 or less at time
of purchase.
7
<PAGE> 10
Fidelity Retirement Money Market Portfolio is a money market
fund, which seeks as high a level of current income as is
consistent with the preservation of capital and liquidity. It
invests in high quality, short-term money market securities of
U.S. and foreign issuers. An investment in the fund is not
insured or guaranteed by the U.S. government.
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 $3,500.
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.
4. INVESTMENTS
At December 31, 1997 and 1996 the Plan had $32,760,008 and $26,599,040,
respectively, invested in a variety of funds as directed by individual
participants (see Note 3). These investment funds are valued at fair
value, which is determined daily by Fidelity through reference to
published market information using closing prices on the valuation date.
The cost of the investments is determined by Fidelity. The Plan had
loans outstanding to participants of $891,406 and $849,110 at December
31, 1997 and 1996, respectively.
The value of the Plan's invested assets (including investments bought,
sold and held during the year) appreciated by $3,408,714 and $600,474
during the years ended December 31, 1997 and 1996, respectively, as
follows:
8
<PAGE> 11
<TABLE>
<CAPTION>
Net Appreciation
(Depreciation) in Fair Value at
Fair Value during 1997 December 31, 1997
---------------------- -----------------
<S> <C> <C>
Investment Fund:
Strong Growth $ (14,055) $ 436,360
Templeton Dev. Mkts (184,883) 594,942
Kaufman and Broad Stock 237 10,355
Magellan 1,392,253 9,423,726 *
Contrafund 384,744 4,432,788 *
Equity Income 1,480,905 8,529,691 *
Intermediate Bond 18,201 2,221,380 *
Overseas (172) 161,792
Asset Manager 270,234 2,593,392 *
Low-Priced Stock 61,250 706,291
Retirement Money Market -- 3,649,291 *
Participant Loans -- 891,406
----------- -----------
Total $ 3,408,714 $33,651,414
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
Net Appreciation
(Depreciation) in Fair Value at
Fair Value during 1996 December 31, 1996
---------------------- -----------------
<S> <C> <C>
Mutual funds:
Magellan $(397,329) $ 8,269,353 *
Contrafund 292,637 3,136,600 *
Equity Income 699,850 6,472,507 *
Intermediate Bond (67,989) 2,216,281 *
Asset Manager 73,305 2,223,169 *
Retirement Money Market -- 4,281,130 *
Participant Loans -- 849,110
--------- --------------
Total $ 600,474 $ 27,448,150
========= ==============
</TABLE>
*Fair value of individual investment is 5% or more of the Plan's net
assets.
5. CHANGES IN NET ASSETS BY FUND (PARTICIPANT DIRECTED)
The amount of net assets available for plan benefits as of December 31,
1997 and 1996 and the changes in net assets available for plan benefits
during the years for each investment fund including net asset accruals
allocated by fund and participant loans, are as follows:
9
<PAGE> 12
Year Ended December 31, 1997
<TABLE>
<CAPTION>
Fidelity Mutual Funds
-------------------------------------------
Kaufman
and Broad
Strong Templeton Common
Growth Dev. Markets Stock Magellan Contrafund Equity Income
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Plan participants $ 68,480 $ 56,078 $ 375 $ 1,015,945 $ 673,374 $ 690,444
Employer 29,920 24,122 298 661,656 414,398 452,042
----------- ----------- ----------- ----------- ----------- -----------
98,400 80,200 673 1,677,601 1,087,772 1,142,486
Forfeitures (1,156) (624) -- (216,995) (167,679) (174,550)
----------- ----------- ----------- ----------- ----------- -----------
Net contributions 97,244 79,576 673 1,460,606 920,093 967,936
Investment income:
Interest & dividends 62,020 38,438 -- 620,581 419,314 468,449
Net appreciation
(depreciation) in fair
value of investments (14,055) (184,883) 237 1,392,253 384,744 1,480,905
Interfund transfers, net 293,529 695,175 9,437 (956,034) 271,365 117,773
----------- ----------- ----------- ----------- ----------- -----------
Total additions 438,738 628,306 10,347 2,517,406 1,995,516 3,035,063
----------- ----------- ----------- ----------- ----------- -----------
Deductions:
Benefits paid to participants (807) (20,861) -- (1,426,353) (774,209) (1,042,803)
Loan activity, net (2,301) (12,897) 8 (32,718) (8,645) (22,161)
----------- ----------- ----------- ----------- ----------- -----------
Total deductions (3,108) (33,758) 8 (1,459,071) (782,854) (1,064,964)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets available for
plan benefits 435,630 594,548 10,355 1,058,335 1,212,662 1,970,099
Net assets available
for plan benefits:
Beginning of year -- -- -- 8,158,234 3,076,001 6,409,795
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 435,630 $ 594,548 $ 10,355 $ 9,216,569 $ 4,288,663 $ 8,379,894
=========== =========== =========== =========== =========== ===========
</TABLE>
10
<PAGE> 13
Year Ended December 31, 1997 (continued)
<TABLE>
<CAPTION>
Fidellity Mutual Funds
- --------------------------------------------------------------------------------
Intermediate Asset Retirement Participant
Bond Overseas Manager Low-Priced Money Market Loans Total
- ------------ ------------ ------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 244,691 $ 45,817 $ 318,581 $ 48,622 $ 400,411 $ 3,562,818
176,422 19,488 213,146 29,449 276,810 2,297,751
- ------------ ------------ ------------ ------------ ------------ ------- ------------
421,113 65,305 531,727 78,071 677,221 5,860,569
(20,023) (3,366) (91,718) (3,261) (19,628) (699,000)
- ------------ ------------ ------------ ------------ ------------ ------- ------------
401,090 61,939 440,009 74,810 657,593 5,161,569
137,724 7,555 227,542 45,762 205,830 64,038 2,297,253
18,201 (172) 270,234 61,250 -- 3,408,714
(330,370) 97,521 (117,838) 566,317 (646,875) --
- ------------ ------------ ------------ ------------ ------------ ------- ------------
226,645 166,843 819,947 748,139 216,548 64,038 10,867,536
- ------------ ------------ ------------ ------------ ------------ ------- ------------
(209,883) (6,519) (452,605) (37,087) (878,565) (148,580) (4,998,272)
(13,624) (657) (38,124) (6,820) 11,101 126,838 --
- ------------ ------------ ------------ ------------ ------------ ------- ------------
(223,507) (7,176) (490,729) (43,907) (867,464) (21,742) (4,998,272)
- ------------ ------------ ------------ ------------ ------------ ------- ------------
3,138 159,667 329,218 704,232 (650,916) 42,296 5,869,264
2,187,308 -- 2,177,320 -- 4,236,382 849,110 27,094,150
- ------------ ------------ ------------ ------------ ------------ ------- ------------
$ 2,190,446 $ 159,667 $ 2,506,538 $ 704,232 $ 3,585,466 891,406 $ 32,963,414
============ ============ ============ ============ ============ ======= ============
</TABLE>
11
<PAGE> 14
Year Ended December 31, 1996
<TABLE>
<CAPTION>
Fidelity Mutual Funds
---------------------------------------------------------------------------------------
Equity Intermediate Asset Retirement
Magellan Contrafund Income Bond Manager Money Market
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Plan participants $ 1,310,108 $ 543,479 $ 772,120 $ 267,265 $ 335,719 $ 428,490
Employer 752,334 333,208 388,473 187,076 227,136 300,616
2,062,442 876,687 1,160,593 454,341 562,855 729,106
------------ ------------ ------------ ------------ ------------ ------------
Forfeitures (136,068) (94,248) (90,387) (40,424) (65,735) (60,650)
------------ ------------ ------------ ------------ ------------ ------------
Net contributions 1,926,374 782,439 1,070,206 413,917 497,120 668,456
Investment income:
Interest and 1,246,133 247,414 407,585 142,358 172,212 208,924
dividends
Net appreciation
(depreciation) in fair value of
investments (397,329) 292,637 699,850 (67,989) 73,305 --
------------ ------------ ------------ ------------ ------------ ------------
Interfund transfers, net (427,459) 234,586 146,555 7,956 (40,657) 79,019
Total additions 2,347,719 1,557,076 2,324,196 496,242 701,980 956,399
------------ ------------ ------------ ------------ ------------ ------------
Deductions:
Benefits paid to participants (1,136,284) (527,304) (799,311) (289,065) (343,194) (692,082)
Loan activity, net (49,280) (61,280) (31,930) (32,980) (16,792) (15,845)
------------ ------------ ------------ ------------ ------------ ------------
Total deductions (1,185,564) (588,584) (831,241) (322,045) (359,986) (707,927)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in
net assets available for plan
benefits 1,162,155 968,492 1,492,955 174,197 341,994 248,472
Net assets available
for plan benefits:
Beginning of year 6,996,079 2,107,509 4,916,840 2,013,111 1,835,326 3,987,910
------------ ------------ ------------ ------------ ------------ ------------
End of year $ 8,158,234 $ 3,076,001 $ 6,409,795 $ 2,187,308 $ 2,177,320 $ 4,236,382
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Participant
Loans Total
------------ ------------
<S> <C> <C>
Additions:
Contributions:
Plan participants $ $ 3,657,181
Employer -- 2,188,843
-- 5,846,024
------------ ------------
Forfeitures -- (487,512)
------------ ------------
Net contributions -- 5,358,512
Investment income:
Interest and 43,531 2,468,157
dividends
Net appreciation
(depreciation) in fair value of
investments -- 600,474
------------ ------------
Interfund transfers, net -- --
Total additions 43,531 8,427,143
------------ ------------
Deductions:
Benefits paid to participants (153,564) (3,940,804)
Loan activity, net 208,107 --
------------ ------------
Total deductions 54,543 (3,940,804)
------------ ------------
Net increase in
net assets available for plan
benefits 98,074 4,486,339
Net assets available
for plan benefits:
Beginning of year 751,036 22,607,811
------------ ------------
End of year $ 849,110 $ 27,094,150
============ ============
</TABLE>
12
<PAGE> 15
6. TAX STATUS OF THE PLAN
The Internal Revenue Service has ruled that the Plan qualifies, in form,
under Section 401(a) of the Internal Revenue Code (the "Code") and, the
underlying trust is, therefore, exempt from federal income taxes under
Section 501(a) of the Code. Once qualified, the Plan is required to
operate in conformity with the Code to maintain its qualification. The
Company is not aware of any events which would cause the Plan to become
disqualified in operation.
7. YEAR 2000 ISSUE (UNAUDITED)
The Plan Sponsor has developed a plan to modify its internal information
technology to be ready for the year 2000 and has begun converting
critical data processing systems. The project also includes determining
whether third party service providers have reasonable plans in place to
become year 2000 compliant. The Plan Sponsor currently expects the
project to be substantially complete by early 1999. The Plan Sponsor
does not expect this project to have a significant effect on plan
operations.
13
<PAGE> 16
KAUFMAN AND BROAD HOME CORPORATION
AMENDED AND RESTATED 401(K) SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1997
<TABLE>
<CAPTION>
CURRENT
INVESTMENT DESCRIPTION SHARES COST VALUE
--------- ----------- -----------
<S> <C> <C> <C>
Strong Capital Management - Strong Growth Fund 23,832 $ 450,676 $ 436,360
Franklin Templeton - Templeton Developing Markets Trust I 45,977 779,188 594,942
Kaufman and Broad Home Corporation* Common Stock 425 10,117 10,355
Fidelity Mutual Fund Investments*:
Magellan Fund 98,916 7,904,617 9,423,726
Contrafund 95,063 3,877,864 4,432,788
Equity Income Fund 162,749 6,161,236 8,529,691
Intermediate Bond Fund 218,425 2,226,876 2,221,380
Overseas Fund 4,972 169,843 161,792
Asset Manager Fund 141,329 2,269,754 2,593,392
Low-Priced Stock Fund 28,105 650,318 706,291
Retirement Money Market Fund 3,649,291 3,649,291 3,649,291
Participant Loans* 6% to 10% int 891,406 891,406
----------- -----------
$29,041,186 $33,651,414
=========== ===========
</TABLE>
*PARTY-IN-INTEREST TO THE PLAN
14
<PAGE> 17
KAUFMAN AND BROAD HOME CORPORATION
AMENDED AND RESTATED 401(K) SAVINGS PLAN
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
CATEGORY (iii) - SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS
<TABLE>
<CAPTION>
NUMBER
OF TOTAL TOTAL GAIN
INVESTMENTS TRANSACTIONS PURCHASES SALES COST (LOSS)
---------------- ---------- ---------- ---------- ----------
Purch Sales
----- -----
<S> <C> <C> <C> <C> <C> <C>
Fidelity Investments* (mutual funds):
Magellan 148 112 $2,994,069 $3,231,950 $2,745,235 $ 486,715
Contrafund 139 98 $2,278,775 $1,367,331 $1,137,543 $ 229,788
Equity Income 141 102 $2,348,068 $1,771,789 $1,365,563 $ 406,226
Intermediate Bond 116 84 $ 731,769 $ 744,871 $ 756,060 $ (11,189)
Asset Manager 117 85 $ 887,123 $ 787,134 $ 672,399 $ 114,735
Retirement Money Market 137 117 $1,634,296 $2,266,134 $2,266,134 --
</TABLE>
There were no Category (i), (ii) or (iv) reportable transactions.
*Party-in-interest to the Plan
15
<PAGE> 18
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: June 30, 1998 by: /s/ Michael F. Henn
--------------------------------
Michael F. Henn
Senior Vice President and
Chief Financial Officer
<PAGE> 19
EXHIBIT INDEX
<TABLE>
<CAPTION>
SEQUENTIALLY
EXHIBIT NO. DESCRIPTION NUMBERED PAGE
- ----------- ----------- -------------
<S> <C> <C>
23.1 Independent Auditor's Consent
</TABLE>
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Exhibit 23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements on
Form S-8 pertaining to the 1986 Stock Option Plan (No. 33-11692), the 1988
Employee Stock Plan (Nos. 33-28624 and 333-49311), the 401(k) Savings Plan (No.
333-49307), the 1998 Stock Incentive Plan and the Performance-Based Incentive
Plan for Senior Management (No. 333-49309) and the Registration Statements on
Form S-3 (Nos. 333-41549 and 333-51825), as amended, of Kaufman and Broad Home
Corporation of our report dated June 22, 1998, with respect to the financial
statements and schedules of Kaufman and Broad Home Corporation Amended and
Restated 401(k) Savings Plan included in this Annual Report (Form 11-K) for the
year ended December 31, 1997.
/s/ ERNST & YOUNG LLP
Los Angeles, California
June 25, 1998
