ACQUISITIONS

3 Months Ended

Mar. 31, 2012

ACQUISITIONS

ACQUISITIONS

NOTE 3: ACQUISITIONS

On March 1, 2012, the Company acquired Richard Schultz Design Inc., a designer and manufacturer of outdoor furniture for the residential, hospitality and contract office furniture markets.  This acquisition has been accounted for as a purchase and resulted in the recognition of approximately $4.9 million of goodwill in the Company’s financial statements.  The allocation of the purchase price is still being finalized as the Company is awaiting the final appraisal of the intangible assets and the determination of the fair value of the contingent purchase price.  The finalization of the Company’s purchase accounting assessment will result in changes in the valuation of assets and liabilities acquired, which is not expected to have a material impact on the Company’s condensed consolidated balance sheet, statement of operations, or statement of cash flows.  Under U.S. GAAP, the measurement period shall not exceed one year from the acquisition date.

The Company’s goodwill by reporting segment was $37.9 million, $2.2 million and $36.4 million for Office, Studio, and Coverings respectively at December 31, 2011.  During the first quarter of 2012, goodwill for the Studio segment increased $4.9 million as a result of the Richard Schultz acquisition.  Goodwill for the coverings segment increased $0.5 million as a result of purchase accounting adjustments related to the Filzfelt acquisition, which occurred on December 30, 2011.