ACQUISITION (Tables)

9 Months Ended

Sep. 30, 2018

Unaudited pro forma information for the Company for the nine months ended September 30, 2018 and 2017 as if the acquisition had occurred January 1, 2017 is as follows (in thousands):



	Nine Months Ended September 30,
	2018		2017
Pro forma sales	$	951,795	$	863,725
Pro forma net earnings attributable to Knoll, Inc. stockholders	$	53,693	$	47,282

The amount of sales and net loss 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 and nine month periods ended September 30, 2018 were as follows (in thousands):



	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
Sales	$	22,537		$	58,728
Net loss attributable to Knoll, Inc. stockholders	$	(87	)	$	(2,192	)

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



	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
Sales	$	22,537		$	58,728
Net loss attributable to Knoll, Inc. stockholders	$	(87	)	$	(2,192	)

The following table summarizes the preliminary fair values assigned to the assets acquired and liabilities assumed and resulting goodwill. These values are not yet finalized and are subject to change, which could be significant. The amounts recognized will be finalized as the information necessary to complete the analyses is obtained, but no later than one year from the acquisition date (“the measurement period”).

Recognized amounts of identifiable assets and liabilities as of the January 25, 2018 acquisition date (in thousands):



	Amounts Recognized as of Acquisition Date
Cash	$	7,605
Customer receivables	8,832
Inventory	10,956
Other current assets	453
Property, plant, and equipment, net	1,266
Intangible assets	135,600
Other non-current assets	296
Total assets acquired	$	165,008
Accounts payable	3,418
Other current liabilities	4,592
Deferred income taxes	34,259
Other noncurrent liabilities	1,659
Total liabilities assumed	$	43,928
Net assets acquired	$	121,080

Purchase price	$	315,313
Less: Fair value of acquired identifiable assets and liabilities	121,080
Goodwill	$	194,233

Summary of Identifiable Intangible Assets and Their Estimated Useful Lives

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 (in years)
Indefinite-lived intangible assets:
Trade name	$	66,000	Indefinite
Finite-lived intangible assets:
Wholesale customer relationships	35,800		15
Contract customer relationships	25,000		9
Copyrights & designs	7,500		7
Non-competition agreements	1,300		3
	$	135,600