SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 12. SEGMENT INFORMATION

Accounting Standards Codification 280, “Segment Reporting”, defines that a segment for reporting purposes is based on the financial performance measures that are regularly reviewed by the Chief Operating Decision Maker to assess segment performance and to make decisions about a public entities allocation of resources. Based on this guidance, the Company reports its segment results based on the following reportable segments; Office, Studio and Coverings. The Office segment serves corporate, government, healthcare, retail and other customers in the United States and Canada providing a portfolio of office furnishing solutions including systems, seating, storage, and KnollExtra ergonomic accessories, and other products. The Studio segment includes KnollStudio®, Knoll Europe which sells primarily Knoll Studio products, and Richard Schultz® Design.  The KnollStudio® portfolio includes a range of lounge seating; side, café and dining chairs; barstools; and conference, dining and occasional tables. Richard Schultz® Design provides high quality outdoor furniture. The Coverings segment includes, KnollTextiles®, Spinneybeck®, Edelman ®Leather and FilzfeltTM. These businesses serve a wide range of customers offering high quality textiles, felt, and leather.

The following information below categorizes certain financial information into the above noted segments for the three and six months ended June 30, 2012 and 2011:

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2012		2011		2012		2011
	(in thousands)
NET SALES
Office	$	153,892	$	171,501	$	292,188	$	333,199
Studio	39,194		39,674		72,368		75,326
Coverings	27,932		27,475		53,123		50,984
Total	$	221,018	$	238,650	$	417,679	$	459,509
NET INTERSEGMENT SALES
Office	$	422	$	1,125	$	1,170	$	1,458
Studio	1,236		1,899		2,418		3,230
Coverings	2,155		2,601		4,475		4,994
Total	$	3,813	$	5,625	$	8,063	$	9,682
OPERATING INCOME (1)
Office	$	8,723	$	11,797	$	15,655	$	23,173
Studio	6,415		5,910		10,398		11,339
Coverings	5,665		5,861		10,201		10,442
Subtotal	20,803		23,568		36,254		44,954
Restructuring charges - primarily Office	—		243		—		714
Total	$	20,803	$	23,325	$	36,254	$	44,240

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