SEGMENT INFORMATION

The Company has two reportable segments: Office and Lifestyle. The Office reportable segment is comprised of the operations of the Office operating segment. The Lifestyle reportable segment is an aggregation of the Lifestyle, Europe, and Muuto operating segments. All unallocated expenses are included within Corporate.

The Office segment includes a complete range of workplace products that address diverse workplace planning paradigms in North America and Europe. These products include: office systems furniture, seating, storage, tables, desks and KnollExtra® accessories. The Office segment includes DatesWeiser, known for its sophisticated meeting and conference tables and credenzas, sets a standard of design, quality and technology integration.

The Lifestyle segment includes KnollStudio®, HOLLY HUNT®, Muuto®, KnollTextiles®, Spinneybeck® (including Filzfelt®), and Edelman® Leather. Lifestyle products, which are distributed in North America and Europe, include iconic seating, lounge furniture, side, café and dining chairs as well as conference, training, dining and occasional tables, lighting, rugs, textiles, high-quality fabrics, felt, leather and related architectural products.

During the first quarter of 2019, the Company changed the structure of its internal organization which caused the composition of its reportable segments to change. As a result, DatesWeiser is now a component of the Office operating segment as opposed to the Lifestyle operating segment. As a result of this change in segment reporting, the Company retrospectively revised prior period results, by segment, to conform to current period presentation.

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 are 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 millions):



	Three Months Ended March 31,
	2019			2018
SALES
Office	$	202.2		$	185.1
Lifestyle	130.6			111.5
Knoll, Inc.	$	332.8		$	296.6
INTERSEGMENT SALES ⁽¹⁾
Office	$	0.4		$	0.5
Lifestyle	2.5			2.4
Knoll, Inc.	$	2.9		$	2.9
OPERATING PROFIT
Office ⁽²⁾	$	14.1		$	8.9
Lifestyle	20.7			20.2
Corporate	(5.6		)	(6.6		)
Knoll, Inc.⁽³⁾	$	29.2		$	22.5

_______________________________________________________________________________

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

(2) Knoll recorded restructuring charges of $0.1 million and $0.5 million during the three months ended March 31, 2019 and March 31, 2018, respectively, within the Office segment related to an organizational realignment that will result in greater operating efficiency and control.

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

The changes in the carrying amount of goodwill by reportable segment are as follows (in millions):



	Office Segment		Lifestyle Segment			Total
Balance as of December 31, 2018	$	39.1	$	281.7		$	320.8
Foreign currency translation adjustment	0.1		(3.8		)	(3.7		)
Balance as of March 31, 2019	$	39.2	$	277.9		$	317.1