ACQUISITION (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Preliminary Fair Values Assigned to Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values assigned to the assets acquired and liabilities assumed as of the January 25, 2018 acquisition date (in thousands):



Cash	$	7,506
Customer receivables	8,717
Inventory	14,675
Other current assets	447
Property, plant, and equipment, net	1,250
Intangible assets	131,300
Other non-current assets	292
Accounts payable	3,374
Other current liabilities	12,244
Deferred income taxes	29,744
Other noncurrent liabilities	1,637
Fair value of acquired identifiable assets and liabilities	$	117,188

Purchase price	$	311,254
Less: Fair value of acquired identifiable assets and liabilities	117,188
Goodwill	$	194,066

The following table summarizes the estimated fair value of Muuto’s identifiable intangible assets and their estimated useful lives (in thousands):



	Fair Value as of January 25, 2018		Estimated Useful Life
Indefinite-lived intangible assets:
Trade name	$	65,000	Indefinite
Finite-lived intangible assets:
Wholesale customer relationships	33,000		15
Contract customer relationships	22,000		9
Copyrights & designs	10,000		7
Non-competition agreements	1,300		3
	$	131,300

Acquisition Pro Forma Information

The amount of sales and net earnings that resulted from the acquisition and attributable to Knoll, Inc. stockholders included in the Condensed Consolidated Statements of Operations and Comprehensive Income during the three months ended March 31, 2018 were as follows (in thousands):



Sales	$	15,186
Net loss attributable to Knoll, Inc. stockholders	$	(154	)

Unaudited pro forma information for the Company for the three month periods ended March 31, 2018 and 2017 as if the acquisition had occurred January 1, 2017 is as follows:



	Three Months Ended
	March 31, 2018		March 31, 2017
Pro forma sales	$	300,707	$	272,520
Pro forma net earnings attributable to Knoll, Inc. stockholders	$	17,626	$	15,911