SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

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 DatesWeiserTM and Fully®. DatesWeiserTM, known for its sophisticated meeting and conference tables and credenzas, sets a standard of design, quality and technology integration. Fully is an e-commerce furniture brand selling height-adjustable desks, ergonomic chairs and accessories principally for individual home offices and small businesses.

The Lifestyle segment includes KnollStudio®, HOLLY HUNT®, Muuto®, KnollTextiles®, Spinneybeck® (including Filzfelt®), and Edelman® Leather. Lifestyle products, which are distributed globally, 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.

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 (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
SALES
Office	$	193.2	$	219.1	$	589.9	$	644.5
Lifestyle	116.2		137.4		333.6		412.1
Knoll, Inc.	$	309.4	$	356.5	$	923.5	$	1,056.6
INTERSEGMENT SALES (1)
Office	$	—	$	0.6	$	0.4	$	1.5
Lifestyle	2.2		2.2		6.7		7.2
Knoll, Inc.	$	2.2	$	2.8	$	7.1	$	8.7
OPERATING PROFIT
Office	$	5.4	$	18.3	$	10.1	$	46.8
Lifestyle	16.0		25.0		38.7		71.3
Corporate	(2.1)		(6.6)		(28.1)		(18.3)
Knoll, Inc.	$	19.3	$	36.7	$	20.7	$	99.8

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

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, 2019	$	54.3	$	277.8	$	332.1
Foreign currency translation adjustment	(0.1)		8.3		8.2
Balance as of September 30, 2020	$	54.2	$	286.1	$	340.3