SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company manages its business through its reporting segments: Office, Studio, and Coverings. All unallocated expenses are included within Corporate.

The Office segment includes a complete range of workplace products that address diverse workplace planning paradigms. These products include: systems furniture, seating, storage, tables, desks and KnollExtra® accessories as well as the international sales of North American Office products.

The Studio segment includes KnollStudio®, HOLLY HUNT®, Knoll Europe and DatesWeiser. KnollStudio® products, include iconic seating, lounge furniture, side, cafe and dining chairs as well as conference, training and dining and occasional tables. HOLLY HUNT® is known for high quality residential furniture, lighting, rugs, textiles and leathers. In 2016, HOLLY HUNT® acquired Vladimir Kagan Design Group, a renowned collection of modern luxury furnishings. Knoll Europe, which markets and sells both KnollStudio® and Knoll Office products, manufactures and sells products to customers in Europe. DatesWeiser, known for its sophisticated meeting and conference tables and credenzas, sets a standard for design, quality and technology integration.

The Coverings segment includes KnollTextiles®, Spinneybeck® (including Filzfelt®), and Edelman® Leather. These businesses provide a wide range of customers with high-quality fabrics, felt, leather and related architectural products.

Corporate costs include unallocated costs relating to shared services and general corporate activities such as legal expenses, acquisition expenses, certain finance, human resources, administrative and executive expenses and other expenses that are not directly attributable to an operating segment. Dedicated, direct selling, general and administrative expenses, of the segments continue to be included within segment operating profit. Management regularly reviews the costs included in the Corporate function and believes disclosing such information provides more visibility and transparency of how the chief operating decision maker reviews the results for the Company.

The tables below present the Company’s segment information with Corporate costs excluded from reporting segment results. Prior year amounts have been recast to conform to the current presentation (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
SALES
Office	$	181,168		$	185,764		$	484,042		$	550,390
Studio	83,186			79,829			250,298			239,985
Coverings	26,902			26,504			82,430			81,051
Knoll, Inc.	$	291,256		$	292,097		$	816,770		$	871,426
INTERSEGMENT SALES (1)
Office	$	332		$	466		$	1,056		$	1,244
Studio	1,429			1,228			4,021			4,611
Coverings	1,401			2,099			4,000			4,869
Knoll, Inc.	$	3,162		$	3,793		$	9,077		$	10,724
OPERATING PROFIT
Office (2)	$	15,546		$	20,390		$	28,718		$	56,015
Studio	12,370			13,372			38,928			39,482
Coverings	6,252			6,295			18,682			19,476
Corporate	(4,043		)	(4,854		)	(10,939		)	(14,447		)
Knoll, Inc.(3)	$	30,125		$	35,203		$	75,389		$	100,526

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

(2) Office Operating Profit includes $2.2 million of restructuring charges for the nine months ended September 30, 2017. The restructuring charges related to headcount rationalization and modernization of equipment. The Company does not expect to incur additional restructuring charges related to these activities.

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