SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company reports its segment results based on the following reportable segments: (i) Office; (ii) Studio; and (iii) Coverings. The Office segment serves corporate, government, healthcare, retail and other customers in the United States and Canada providing a portfolio of office furnishing solutions including systems, seating, storage, and KnollExtra^® ergonomic accessories, and other products. The Studio segment includes KnollStudio^®, Knoll Europe which sells primarily KnollStudio products, Richard Schultz^® Design and HOLLY HUNT.  The KnollStudio portfolio includes a range of lounge seating; side, cafe and dining chairs; barstools; and conference, dining and occasional tables. Richard Schultz Design provides high-quality outdoor furniture. HOLLY HUNTprovides high-end luxury residential furniture. The Coverings segment includes, KnollTextiles^®, Spinneybeck^®, Edelman^®Leather and Filzfelt^®. These businesses serve a wide range of customers offering high-quality textiles, felt, and leather.

The following information below categorizes certain financial information into the above-noted segments for the three and nine months ended September 30, 2014 and 2013:

	Three months ended				Nine months ended
	September 30,				September 30,
	2014		2013		2014		2013
	(in thousands)
NET SALES
Office	$	166,788	$	150,545	$	471,971	$	436,095
Studio	72,236		37,701		204,271		113,370
Coverings	29,273		28,652		87,183		82,331
Total	$	268,297	$	216,898	$	763,425	$	631,796
INTERSEGMENT SALES (1)
Office	$	837	$	458	$	1,821	$	1,314
Studio	1,575		1,803		4,409		4,823
Coverings	2,438		2,578		7,851		7,343
Total	$	4,850	$	4,839	$	14,081	$	13,480
OPERATING PROFIT (2)
Office (3)	$	8,351	$	5,677	$	15,816	$	11,111
Studio	9,003		5,291		23,958		12,707
Coverings	5,961		6,083		17,562		15,935
Total	$	23,315	$	17,051	$	57,336	$	39,753

(1) Intersegment sales are presented on a cost plus basis which takes into consideration the effect of transfer prices between legal entities.

(2)  The Company does not allocate interest expense or other (income) expense, net to the reportable segments.

(3) Office operating profit includes $0.2 million of restructuring expenses incurred during the nine months ended September 30, 2014. These restructuring expenses were incurred to better utilize the Company's manufacturing capacity.