KBHOME_10Q_101006

KB Home filed a Form 12b-25 notification that its Form 10-Q for the quarter ending August 31, 2006 would be delayed. The delay was due to an internal review of historical stock option grants, which had preliminarily found that certain grants' actual measurement dates differed from recorded dates, potentially requiring additional non-cash charges. KB Home anticipated significant changes in its quarterly and year-to-date results compared to the prior year, including lower net income and housing gross margins, due to inventory and land impairments. The delayed 10-Q filing could also result in defaults under KB Home's debt agreements.