Knoll (KNL) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 05, 2015
Document Information [Line Items]
Entity Registrant Name	KNOLL INC
Entity Central Index Key	1,011,570
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		48,826,313
Restricted Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,013,934

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 9,757	$ 19,021
Customer receivables, net	93,145	114,551
Inventories, net	148,509	140,835
Deferred income taxes	14,790	15,868
Prepaid and other current assets	22,689	21,544
Total current assets	288,890	311,819
Property, plant, and equipment, net	166,013	165,019
Goodwill	127,916	128,918
Intangible assets, net	251,641	253,739
Other non-trade receivables	2,812	3,278
Other noncurrent assets	4,988	6,170
Total Assets	842,260	868,943
Current liabilities:
Current maturities of long-term debt	10,000	10,000
Accounts payable	67,183	114,914
Income taxes payable	0	12,895
Other current liabilities	101,538	93,965
Total current liabilities	178,721	231,774
Long-term debt	247,500	248,000
Deferred income taxes	69,890	64,203
Postretirement benefits other than pensions	7,183	8,765
Pension liability	69,971	70,770
Other noncurrent liabilities	26,027	32,213
Total Liabilities	$ 599,292	$ 655,725
Commitments and contingent liabilities
Equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 64,602,016 shares issued and 48,798,182 shares outstanding (including 1,028,601 non-voting restricted shares and net of 15,803,834 treasury shares) at September 30, 2015 and 64,113,785 shares issued and 48,723,414 shares outstanding (including 1,235,904 non-voting restricted shares and net of 15,390,371 treasury shares) at December 31, 2014	$ 488	$ 487
Additional paid-in capital	45,498	41,143
Retained earnings	238,897	204,063
Accumulated other comprehensive loss	(42,125)	(32,682)
Total Knoll, Inc. stockholders' equity	242,758	213,011
Noncontrolling interests	210	207
Total Equity	242,968	213,218
Total Liabilities and Equity	$ 842,260	$ 868,943

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	64,602,016	64,113,785
Common stock, shares outstanding	48,798,182	48,723,414
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	1,028,601	1,235,904
Treasury shares	15,803,834	15,390,371

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net sales	$ 263,588	$ 268,297	$ 798,708	$ 763,841
Cost of sales	162,381	173,335	501,001	495,007
Gross profit	101,207	94,962	297,707	268,834
Selling, general, and administrative expenses	72,062	71,647	218,008	211,202
Restructuring charges	441	0	441	795
Operating profit	28,704	23,315	79,258	56,837
Interest expense	1,650	1,899	5,386	5,514
Other (income), net	(1,757)	(3,294)	(8,714)	(3,098)
Income before income tax expense	28,811	24,710	82,586	54,421
Income tax expense	10,950	9,113	30,068	20,151
Net earnings	17,861	15,597	52,518	34,270
Net gains (losses) attributable to noncontrolling interests	28	(31)	3	(39)
Net earnings attributable to Knoll, Inc. stockholders	$ 17,833	$ 15,628	$ 52,515	$ 34,309
Net earnings per common share attributable to Knoll, Inc. stockholders:
Basic (in dollars per share)	$ 0.37	$ 0.33	$ 1.10	$ 0.73
Diluted (in dollars per share)	0.37	0.33	1.08	0.71
Dividends per share (in dollars per share)	$ 0.12	$ 0.12	$ 0.36	$ 0.36
Weighted-average number of common shares outstanding:
Basic (in shares)	47,764,462	47,376,605	47,725,186	47,314,810
Diluted (in shares)	48,487,623	48,072,632	48,441,129	48,032,710
Net earnings	$ 17,861	$ 15,597	$ 52,518	$ 34,270
Other comprehensive income (loss):
Foreign currency translation adjustment	(4,228)	(7,488)	(17,109)	(7,577)
Pension and other post-retirement curtailment gain, net of tax	4,549	0	4,549	0
Pension and other post-retirement liability adjustment, net of tax	353	64	3,117	191
Total other comprehensive income (loss), net of tax	674	(7,424)	(9,443)	(7,386)
Total comprehensive income	18,535	8,173	43,075	26,884
Comprehensive gains (losses) attributable to noncontrolling interests		(31)		(39)
Comprehensive income attributable to Knoll, Inc. stockholders	$ 18,507	$ 8,204	$ 43,072	$ 26,923

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITES
Net earnings	$ 52,518	$ 34,270
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation	12,780	11,740
Amortization expense (including deferred financing fees)	2,927	3,095
Unrealized foreign currency gains	(7,173)	(3,680)
Stock-based compensation	5,650	5,869
Other non-cash items, net	392	127
Changes in assets and liabilities, net of acquisition:
Customer receivables	19,879	9,824
Inventories	(10,203)	(18,373)
Accounts payable	(44,481)	5,046
Current and deferred income taxes	(5,941)	10,393
Prepaid and other current assets	(1,417)	(3,994)
Other current liabilities	7,574	(10,153)
Other noncurrent assets and liabilities	5,634	20,552
Cash provided by operating activities	38,139	64,716
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(19,507)	(31,992)
Purchase of business, net of cash acquired	0	(93,349)
Purchase of licenses	(330)	(315)
Cash used in investing activities	(19,837)	(125,656)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit facility	230,000	692,000
Repayment of revolving credit facility	(230,500)	(603,500)
Payment of financing fees	0	(1,930)
Payment of dividends	(17,194)	(17,015)
Proceeds from the issuance of common stock	5,247	2,788
Purchase of common stock for treasury	(7,478)	(6,412)
Contingent purchase price payment	(5,000)	0
Excess tax benefit from the exercise of stock options and vesting of equity awards	940	210
Cash (used in) provided by financing activities	(23,985)	66,141
Effect of exchange rate changes on cash and cash equivalents	(3,581)	(1,527)
(Decrease) increase in cash and cash equivalents	(9,264)	3,674
Cash and cash equivalents at beginning of period	19,021	12,026
Cash and cash equivalents at end of period	$ 9,757	$ 15,700

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Knoll, Inc. (the “Company”) have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet of the Company, as of December 31, 2014 , was derived from the Company’s audited consolidated balance sheet as of that date. All other condensed consolidated financial statements contained herein are unaudited and reflect all adjustments which are, in the opinion of management, necessary to summarize fairly the financial position of the Company and the results of the Company’s operations and cash flows for the periods presented. All of these adjustments are of a normal recurring nature. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and any partially owned subsidiaries that the Company has the ability to control. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014 . New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 - Revenue from Contracts with Customers (Topic 606) . The ASU is the result of a convergence project between the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The ASU removes inconsistencies and weaknesses in revenue requirements; provides a more robust framework for addressing revenue issues; improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; provides more useful information to users of financial statements through expanded disclosure requirements; and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The Company has not yet selected a transition method and is currently evaluating the impact of the amended guidance on the consolidated financial position, results of operations and related disclosures. In April 2015, the FASB issued ASU No. 2015-03 - Interest—Imputation of Interest (Subtopic 835-30) . This ASU simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of the debt liability, which is consistent with the treatment of debt discounts. The new guidance should be applied on a retrospective basis, and upon transition, an entity is required to comply with the applicable disclosures necessary for a change in accounting principle. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The Company does not expect the impact of the adoption of this ASU to have a material impact on its financial position, results of operations and cash flows. In July 2015, the FASB issued ASU 2015-11 - Inventory (Topic 330) , which amends existing guidance for measuring inventories. This amendment will require the Company to measure inventories recorded using the first-in, first-out method at the lower of cost and net realizable value. This amendment does not change the methodology for measuring inventories recorded using the last-in, first-out method. This amendment will be effective for the Company on January 1, 2017. Early adoption is permitted. The Company does not expect the impact of the adoption of this ASU to have a material impact on its financial position, results of operations and cash flows.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS On February 3, 2014, the Company acquired Holly Hunt Enterprises, Inc. (“HOLLY HUNT ® ”). The acquisition advances the Company's strategy of building its global capability as a resource for high-design workplaces and homes, including the commercial contract, decorator to-the-trade and consumer markets. The aggregate purchase price for the acquisition was $95.0 million , plus certain contingent payouts of up to $16.0 million . Of the $16.0 million of contingent payouts, $5.0 million was paid in the three months ended March 31, 2015. The remaining contingent payouts, if earned based on future performance of the business, are expected to be paid in 2016 and 2017. The purchase price was funded from borrowings under the Company's revolving credit facility. The Company has recorded the acquisition of HOLLY HUNT ® using the acquisition method of accounting and has recognized the assets acquired and liabilities assumed at their fair values as of the date of the acquisition. The Company finalized the purchase accounting for the acquisition of HOLLY HUNT ® during the three months ended March 31, 2015 as no additional adjustments were made from the fair values assigned since December 31, 2014.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Information regarding the Company's inventories is as follows (in thousands): September 30, December 31, Raw materials $ 59,262 $ 54,376 Work-in-process 7,625 7,265 Finished goods 81,622 79,194 Total $ 148,509 $ 140,835 Inventory reserves for obsolescence and other estimated losses were $7.9 million and $8.4 million at September 30, 2015 and December 31, 2014 , respectively, and have been included in the amounts above.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s income tax provision consists of federal, state and foreign income taxes. The tax provisions for the three months ended September 30, 2015 and 2014 were based on the estimated effective tax rates applicable for the full years ending December 31, 2015 and 2014 , which includes items specifically related to the interim periods. The Company’s effective tax rate was 38.0% and 36.9% for the three months ended September 30, 2015 and 2014, respectively. The Company’s effective tax rate was 36.4% and 37.0% for the nine months ended September 30, 2015 and 2014 , respectively. The change in the Company's effective tax rate for the three and nine months ended September 30, 2015 , was primarily a result of the geographic mix of pretax income and the varying effective tax rates in the countries and states in which the Company operates. As of September 30, 2015 and December 31, 2014 , the Company had unrecognized tax benefits of approximately $5.1 million and $4.9 million , respectively. These unrecognized tax benefit amounts would affect the effective tax rate if recognized. As of September 30, 2015 , the Company is subject to U.S. Federal income tax examinations for the tax years 2011 through 2014, and to non-U.S. income tax examinations for the tax years 2006 through 2014. In addition, the Company is subject to state and local income tax examinations for the tax years 2010 through 2014.

CONTINGENT LIABILITIES AND COMM

CONTINGENT LIABILITIES AND COMMITMENTS	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
CONTINGENT LIABILITIES AND COMMITMENTS	CONTINGENT LIABILITIES AND COMMITMENTS Litigation The Company is currently involved in matters of litigation, including environmental contingencies, arising in the ordinary course of business. The Company accrues for such matters when expenditures are probable and reasonably estimable. Based upon information presently known, management is of the opinion that such litigation, either individually or in the aggregate, will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Warranty The Company offers a warranty for all of its products. The specific terms and conditions of those warranties vary depending upon the product. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company’s liability include historical product-failure experience and estimated repair costs for identified matters for each specific product category. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Changes in the warranty reserve are as follows (in thousands): Balance, as of December 31, 2014 $ 8,180 Provision for warranty claims 5,443 Warranty claims paid (5,112 ) Foreign currency translation adjustment (124 ) Balance, as of September 30, 2015 $ 8,387 Warranty expense for the three months ended September 30, 2015 and 2014 was $1.7 million and $1.9 million , respectively. Warranty expense for the nine months ended September 30, 2015 and 2014 was $5.4 million and $5.2 million , respectively.

INDEBTEDNESS

INDEBTEDNESS	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
INDEBTEDNESS	INDEBTEDNESS Information regarding the Company's indebtedness is as follows (in thousands): September 30, December 31, Balance of revolving credit facility $ 70,000 $ 63,000 Balance of term loan 187,500 195,000 Total long-term debt 257,500 258,000 Less: Current maturities of long-term debt 10,000 10,000 Long-term debt $ 247,500 $ 248,000

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2015
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2015 (in thousands): Foreign Pension and Total Balance, as of December 31, 2014 $ 2,095 $ (34,777 ) $ (32,682 ) Other comprehensive income (loss) before reclassifications (17,109 ) 4,549 (12,560 ) Amounts reclassified from accumulated other comprehensive income (loss) — 3,117 3,117 Net current-period other comprehensive income (loss) (17,109 ) 7,666 (9,443 ) Balance, as of September 30, 2015 $ (15,014 ) $ (27,111 ) $ (42,125 ) The following reclassifications were made from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations and other comprehensive income (in thousands): Three Months Ended September 30, 2015 September 30, 2014 Amortization of pension and other post-retirement liability adjustments Prior Service Costs (1) $ (420 ) $ (558 ) Actuarial Losses (1) 949 656 Total Before Tax 529 98 Tax Benefit (176 ) (34 ) Net of Tax $ 353 $ 64 (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension costs. See Note 8 for additional information. The following reclassifications were made from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations and other comprehensive income (in thousands): Nine Months Ended September 30, 2015 September 30, 2014 Amortization of pension and other post-retirement liability adjustments Prior Service Costs (1) $ (564 ) $ (1,674 ) Actuarial Losses (1) 5,465 1,968 Total Before Tax 4,901 294 Tax Benefit (1,784 ) (103 ) Net of Tax $ 3,117 $ 191 (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension costs. See Note 8 for additional information.

PENSIONS AND OTHER POST-RETIREM

PENSIONS AND OTHER POST-RETIREMENT BENEFITS	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
PENSIONS AND OTHER POST-RETIREMENT BENEFITS	PENSIONS AND OTHER POST-RETIREMENT BENEFITS During the nine months ended September 30, 2015 , the Company approved amendments to both of the U.S. defined benefit pension plans. These amendments will be effective December 31, 2015. The Company also amended its remaining postretirement medical plan that was effective May 1, 2015. The amendments eliminated the accrual of future benefits for all participants in the defined benefit pension plans and the postretirement medical plan. These amendments resulted in a curtailment gain of approximately $7.1 million . As the plans had unrealized losses in excess of the reduction of the projected benefit obligation at the date of amendment, the gain was recorded as a reduction of the projected benefit obligation and a corresponding reduction of unrealized losses within accumulated other comprehensive loss. The following tables summarize the costs of the Company’s employee pension and other post-retirement benefit plans for the periods indicated (in thousands): Pension Benefits Other Benefits Three Months Ended Three Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Service cost $ 1,851 $ 1,734 $ (2 ) $ 6 Interest cost 3,055 3,335 60 91 Expected return on plan assets (3,564 ) (3,936 ) — — Amortization of prior service cost — 3 (420 ) (561 ) Recognized actuarial loss 1,158 502 (209 ) 154 Net periodic benefit cost $ 2,500 $ 1,638 $ (571 ) $ (310 ) For the three months ended September 30, 2015 , $1.5 million of pension expense was incurred in cost of sales and $1.0 million was incurred in selling, general, and administrative expenses. For the three months ended September 30, 2014 , $0.9 million of pension expense was incurred in cost of sales and $0.7 million was incurred in selling, general, and administrative expenses. Pension Benefits Other Benefits Nine months ended Nine months ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Service cost $ 5,626 $ 5,202 $ 5 $ 18 Interest cost 9,283 10,005 221 273 Expected return on plan assets (10,874 ) (11,808 ) — — Amortization of prior service cost — 9 (564 ) (1,683 ) Recognized actuarial loss 5,490 1,506 (25 ) 462 Net periodic benefit cost $ 9,525 $ 4,914 $ (363 ) $ (930 ) For the nine months ended September 30, 2015 , $5.2 million of pension expense was incurred in cost of sales and $4.3 million was incurred in selling, general, and administrative expenses. For the nine months ended September 30, 2014 , $2.8 million of pension expense was incurred in cost of sales and $2.1 million was incurred in selling, general, and administrative expenses.

COMMON STOCK AND EARNINGS PER S

COMMON STOCK AND EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2015
COMMON STOCK AND EARNINGS PER SHARE
COMMON STOCK AND EARNINGS PER SHARE	COMMON STOCK AND EARNINGS PER SHARE Basic earnings per share attributable to Knoll, Inc. stockholders excludes the dilutive effect of (i) common shares that could potentially be issued due to the exercise of stock options, and (ii) unvested restricted stock and restricted stock units, and is computed by dividing net earnings attributable to Knoll, Inc. stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share attributable to Knoll, Inc. stockholders includes the effect of shares and potential shares issued under the stock incentive plans. The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (in thousands) (in thousands) Weighted-average number of common shares outstanding - basic 47,764 47,377 47,725 47,315 Potentially dilutive shares resulting from stock plans 724 696 716 718 Weighted-average number of common shares outstanding - diluted 48,488 48,073 48,441 48,033 Antidilutive equity awards, number of shares not included in the weighted-average common shares - diluted — 124 — 144 Common stock activity for the nine months ended September 30, 2015 and 2014 included the repurchase of 345,963 shares for $7.5 million and 388,938 shares for $6.4 million , respectively. Common stock activity for the nine months ended September 30, 2015 also included the exercise of 348,671 stock options for $5.2 million and the vesting of 276,164 restricted shares. Common stock activity for the nine months ended September 30, 2014 included the exercise of 211,057 stock options for $2.8 million and the vesting of 496,191 restricted shares. During the three and nine months ended September 30, 2015 , the Company granted 1,136 and 273,560 , respectively, equity-based awards to certain employees and the Company's Board of Directors. The vesting of these awards is subject to certain service, performance or market conditions.

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
EQUITY	EQUITY The following table shows the change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests during the nine months ended September 30, 2015 (in thousands): Equity Attributable to Knoll Inc., Stockholders Noncontrolling Interests Total Balance, as of December 31, 2014 $ 213,011 $ 207 $ 213,218 Total comprehensive income: Net earnings attributable to Knoll, Inc. stockholders and noncontrolling interests 52,515 3 52,518 Other comprehensive income (9,443 ) — (9,443 ) Other changes in equity: Purchase of common stock for treasury (7,478 ) — (7,478 ) Cash dividends declared (17,684 ) — (17,684 ) Proceeds from the issuance of common stock 5,247 — 5,247 Stock-based compensation 5,650 — 5,650 Excess tax benefit from the exercise of stock options and vesting of equity awards 940 — 940 Balance, as of September 30, 2015 $ 242,758 $ 210 $ 242,968

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following valuation techniques to measure fair value for its financial assets and financial liabilities: · Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. · Level 3: Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The fair value of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate carrying value due to their short maturities. The fair value of the Company’s long-term debt approximates its carrying value, as it is variable rate debt and the terms are comparable to market terms as of the balance sheet dates, and is classified as Level 2. Financial Instruments Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table represents the financial assets and liabilities, measured at fair value on a recurring basis and the basis for that measurement (in thousands): Fair value as of September 30, 2015 Fair value as of December 31, 2014 Liabilities: Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Contingent purchase price payment $ — $ — $ 11,000 $ 11,000 $ — $ — $ 16,000 $ 16,000 Pursuant to the agreement governing the acquisition of HOLLY HUNT ® , the Company may be required to make annual contingent purchase price payments. The payouts are based upon HOLLY HUNT ® reaching an annual net sales target, for each year over the next two calendar years, and are paid out by February 15 of the following calendar year. The Company classifies this as a Level 3 measurement and is required to remeasure this liability at fair value on a recurring basis. The fair value of such contingent purchase price payments was determined at the time of acquisition based upon net sales projections for HOLLY HUNT ® for 2014, 2015, and 2016. The Company paid $5.0 million during the three months ended March 31, 2015, as a result of HOLLY HUNT ® achieving the 2014 net sales projections. Excluding the initial recognition of the liability for the contingent purchase price payments and payments made to reduce the liability, any changes in the fair value would be included within selling, general and administrative expenses. There were no additional assets and/or liabilities recorded at fair value on a recurring basis as of September 30, 2015 or December 31, 2014 .

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company reports its segment results based on the following reportable segments: (i) Office; (ii) Studio; and (iii) 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 Office segment also includes international sales of our North American office products. The Studio segment includes KnollStudio ® , Knoll Europe which sells primarily KnollStudio products, Richard Schultz ® Design and HOLLY HUNT ® . The KnollStudio portfolio includes a range of lounge seating; side, cafe and dining chairs; barstools; and conference, dining and occasional tables. HOLLY HUNT ® produces and showcases custom made product including indoor and outdoor furniture, lighting, rugs, textiles and leathers. The Coverings segment includes, KnollTextiles ® , Spinneybeck ® and Edelman Leather ® . 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 nine months ended September 30, 2015 and 2014 : Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 (in thousands) NET SALES Office $ 160,781 $ 166,788 $ 489,381 $ 471,971 Studio 74,965 72,236 223,022 204,687 Coverings 27,842 29,273 86,305 87,183 Total $ 263,588 $ 268,297 $ 798,708 $ 763,841 INTERSEGMENT SALES (1) Office $ 343 $ 837 $ 1,244 $ 1,821 Studio 1,525 1,575 4,611 4,409 Coverings 1,627 2,438 4,869 7,851 Total $ 3,495 $ 4,850 $ 10,724 $ 14,081 OPERATING PROFIT (2) Office (3) $ 11,112 $ 8,351 $ 27,457 $ 15,223 Studio (4) 11,340 9,003 32,371 24,052 Coverings 6,252 5,961 19,430 17,562 Total $ 28,704 $ 23,315 $ 79,258 $ 56,837 (1) Intersegment sales represent sales between Knoll, Inc. segments; these intersegment sales are eliminated in consolidation. (2) The Company does not allocate interest expense or other (income) expense, net to the reportable segments. (3) Office operating profit includes $0.8 million of restructuring charges incurred during the nine months ended September 30, 2014. (4) Studio operating profit includes $0.4 million of restructuring charges for both the three and nine months ended September 30, 2015.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES During 2014, the Company approved certain restructuring actions. These actions primarily included reductions in headcount in the Office and Coverings segments, the exiting of certain showrooms within the Company's Coverings segment, and charges related to improvements to better utilize the Company's manufacturing capacity. The Company does not expect any additional charges related to these restructuring actions in the future, and the Company anticipates that the remaining liability will be paid in the next twelve months. During the three months ended September 30, 2015, the Company approved additional restructuring actions. The Company closed a HOLLY HUNT ® showroom in Brazil that was opened prior to the acquisition of HOLLY HUNT ® . As a result of these actions, restructuring charges of $0.4 million were recorded in the Studio segment. These charges relate to cash severance and employment termination related expenses. The Company does not expect any additional charges related to these restructuring actions in the future, and the Company anticipates that the remaining liability will be paid in the next twelve months. Below is a summary of the changes in the restructuring liability for the nine months ended September 30, 2015 (in thousands): Office Studio Coverings Total Balance, as of December 31, 2014 $ 1,046 $ — $ 16 $ 1,062 Additions — 441 — 441 Payments (725 ) (223 ) (16 ) (964 ) Balance, as of September 30, 2015 $ 321 $ 218 $ — $ 539

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of inventories	Information regarding the Company's inventories is as follows (in thousands): September 30, December 31, Raw materials $ 59,262 $ 54,376 Work-in-process 7,625 7,265 Finished goods 81,622 79,194 Total $ 148,509 $ 140,835

CONTINGENT LIABILITIES AND CO20

CONTINGENT LIABILITIES AND COMMITMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of changes in the warranty reserve	Changes in the warranty reserve are as follows (in thousands): Balance, as of December 31, 2014 $ 8,180 Provision for warranty claims 5,443 Warranty claims paid (5,112 ) Foreign currency translation adjustment (124 ) Balance, as of September 30, 2015 $ 8,387

INDEBTEDNESS (Tables)

INDEBTEDNESS (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Debt	Information regarding the Company's indebtedness is as follows (in thousands): September 30, December 31, Balance of revolving credit facility $ 70,000 $ 63,000 Balance of term loan 187,500 195,000 Total long-term debt 257,500 258,000 Less: Current maturities of long-term debt 10,000 10,000 Long-term debt $ 247,500 $ 248,000

ACCUMULATED OTHER COMPREHENSI22

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 30, 2015
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Summary of changes in accumulated other comprehensive income (loss) by component	The following table summarizes the changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2015 (in thousands): Foreign Pension and Total Balance, as of December 31, 2014 $ 2,095 $ (34,777 ) $ (32,682 ) Other comprehensive income (loss) before reclassifications (17,109 ) 4,549 (12,560 ) Amounts reclassified from accumulated other comprehensive income (loss) — 3,117 3,117 Net current-period other comprehensive income (loss) (17,109 ) 7,666 (9,443 ) Balance, as of September 30, 2015 $ (15,014 ) $ (27,111 ) $ (42,125 )
Schedule of reclassifications made from accumulated other comprehensive income (loss) to the statement of operations	The following reclassifications were made from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations and other comprehensive income (in thousands): Three Months Ended September 30, 2015 September 30, 2014 Amortization of pension and other post-retirement liability adjustments Prior Service Costs (1) $ (420 ) $ (558 ) Actuarial Losses (1) 949 656 Total Before Tax 529 98 Tax Benefit (176 ) (34 ) Net of Tax $ 353 $ 64 (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension costs. See Note 8 for additional information. The following reclassifications were made from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations and other comprehensive income (in thousands): Nine Months Ended September 30, 2015 September 30, 2014 Amortization of pension and other post-retirement liability adjustments Prior Service Costs (1) $ (564 ) $ (1,674 ) Actuarial Losses (1) 5,465 1,968 Total Before Tax 4,901 294 Tax Benefit (1,784 ) (103 ) Net of Tax $ 3,117 $ 191 (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension costs. See Note 8 for additional information.

PENSIONS AND OTHER POST-RETIR23

PENSIONS AND OTHER POST-RETIREMENT BENEFITS (Tables)	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Summary of the costs of the Company's employee pension and post retirement plans	The following tables summarize the costs of the Company’s employee pension and other post-retirement benefit plans for the periods indicated (in thousands): Pension Benefits Other Benefits Three Months Ended Three Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Service cost $ 1,851 $ 1,734 $ (2 ) $ 6 Interest cost 3,055 3,335 60 91 Expected return on plan assets (3,564 ) (3,936 ) — — Amortization of prior service cost — 3 (420 ) (561 ) Recognized actuarial loss 1,158 502 (209 ) 154 Net periodic benefit cost $ 2,500 $ 1,638 $ (571 ) $ (310 ) For the three months ended September 30, 2015 , $1.5 million of pension expense was incurred in cost of sales and $1.0 million was incurred in selling, general, and administrative expenses. For the three months ended September 30, 2014 , $0.9 million of pension expense was incurred in cost of sales and $0.7 million was incurred in selling, general, and administrative expenses. Pension Benefits Other Benefits Nine months ended Nine months ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Service cost $ 5,626 $ 5,202 $ 5 $ 18 Interest cost 9,283 10,005 221 273 Expected return on plan assets (10,874 ) (11,808 ) — — Amortization of prior service cost — 9 (564 ) (1,683 ) Recognized actuarial loss 5,490 1,506 (25 ) 462 Net periodic benefit cost $ 9,525 $ 4,914 $ (363 ) $ (930 )

COMMON STOCK AND EARNINGS PER24

COMMON STOCK AND EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
COMMON STOCK AND EARNINGS PER SHARE
Reconciliation of number of shares used in the calculation of basic and diluted earnings (loss) per common share including unvested restrictive shares	The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (in thousands) (in thousands) Weighted-average number of common shares outstanding - basic 47,764 47,377 47,725 47,315 Potentially dilutive shares resulting from stock plans 724 696 716 718 Weighted-average number of common shares outstanding - diluted 48,488 48,073 48,441 48,033 Antidilutive equity awards, number of shares not included in the weighted-average common shares - diluted — 124 — 144

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Change in Equity and Noncontrolling Interests	The following table shows the change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests during the nine months ended September 30, 2015 (in thousands): Equity Attributable to Knoll Inc., Stockholders Noncontrolling Interests Total Balance, as of December 31, 2014 $ 213,011 $ 207 $ 213,218 Total comprehensive income: Net earnings attributable to Knoll, Inc. stockholders and noncontrolling interests 52,515 3 52,518 Other comprehensive income (9,443 ) — (9,443 ) Other changes in equity: Purchase of common stock for treasury (7,478 ) — (7,478 ) Cash dividends declared (17,684 ) — (17,684 ) Proceeds from the issuance of common stock 5,247 — 5,247 Stock-based compensation 5,650 — 5,650 Excess tax benefit from the exercise of stock options and vesting of equity awards 940 — 940 Balance, as of September 30, 2015 $ 242,758 $ 210 $ 242,968

FAIR VALUE OF FINANCIAL INSTR26

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Assets and Liabilities Recorded at Fair Value on a Recurring and Nonrecurring Basis	The following table represents the financial assets and liabilities, measured at fair value on a recurring basis and the basis for that measurement (in thousands): Fair value as of September 30, 2015 Fair value as of December 31, 2014 Liabilities: Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Contingent purchase price payment $ — $ — $ 11,000 $ 11,000 $ — $ — $ 16,000 $ 16,000

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of certain financial information related to segments	The following information below categorizes certain financial information into the above-noted segments for the three and nine months ended September 30, 2015 and 2014 : Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 (in thousands) NET SALES Office $ 160,781 $ 166,788 $ 489,381 $ 471,971 Studio 74,965 72,236 223,022 204,687 Coverings 27,842 29,273 86,305 87,183 Total $ 263,588 $ 268,297 $ 798,708 $ 763,841 INTERSEGMENT SALES (1) Office $ 343 $ 837 $ 1,244 $ 1,821 Studio 1,525 1,575 4,611 4,409 Coverings 1,627 2,438 4,869 7,851 Total $ 3,495 $ 4,850 $ 10,724 $ 14,081 OPERATING PROFIT (2) Office (3) $ 11,112 $ 8,351 $ 27,457 $ 15,223 Studio (4) 11,340 9,003 32,371 24,052 Coverings 6,252 5,961 19,430 17,562 Total $ 28,704 $ 23,315 $ 79,258 $ 56,837 (1) Intersegment sales represent sales between Knoll, Inc. segments; these intersegment sales are eliminated in consolidation. (2) The Company does not allocate interest expense or other (income) expense, net to the reportable segments. (3) Office operating profit includes $0.8 million of restructuring charges incurred during the nine months ended September 30, 2014. (4) Studio operating profit includes $0.4 million of restructuring charges for both the three and nine months ended September 30, 2015.

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Summary of the changes in the restructuring liability	Below is a summary of the changes in the restructuring liability for the nine months ended September 30, 2015 (in thousands): Office Studio Coverings Total Balance, as of December 31, 2014 $ 1,046 $ — $ 16 $ 1,062 Additions — 441 — 441 Payments (725 ) (223 ) (16 ) (964 ) Balance, as of September 30, 2015 $ 321 $ 218 $ — $ 539

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Feb. 03, 2014
Business Acquisition [Line Items]
Contingent purchase price payment		$ (5,000)	$ 0
Holly Hunt Enterprises, Inc
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest				$ 95,000
Business Combination, Contingent Consideration, Liability				$ 16,000
Contingent purchase price payment	$ 5,000

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 59,262	$ 54,376
Work-in-process	7,625	7,265
Finished goods	81,622	79,194
Inventories, Net	148,509	140,835
Inventory Valuation Reserves	$ 7,900	$ 8,400

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	38.00%	36.90%	36.40%	37.00%
Unrecognized tax benefits, which would affect the effective tax rate if recognized	$ 5.1		$ 5.1		$ 4.9

CONTINGENT LIABILITIES AND CO32

CONTINGENT LIABILITIES AND COMMITMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Changes in the Company's warranty reserve
Balance, as of December 31, 2014			$ 8,180
Provision for warranty claims			5,443
Warranty claims paid			(5,112)
Foreign currency translation adjustment			(124)
Balance, as of September 30, 2015	$ 8,387		8,387
Contingent liabilities and commitments, additional disclosure
Warranty expense	$ 1,700	$ 1,900	$ 5,400	$ 5,200

INDEBTEDNESS (Details)

INDEBTEDNESS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total long-term debt	$ 257,500	$ 258,000
Less: Current maturities of long-term debt	10,000	10,000
Long-term debt	247,500	248,000
Balance of revolving credit facility
Debt Instrument [Line Items]
Total long-term debt	70,000	63,000
Balance of term loan
Debt Instrument [Line Items]
Total long-term debt	$ 187,500	$ 195,000

ACCUMULATED OTHER COMPREHENSI34

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Changes in accumulated other comprehensive loss components
Balance			$ (32,682)
Other comprehensive income (loss) before reclassifications			(12,560)
Amounts reclassified from accumulated other comprehensive income (loss)			3,117
Total other comprehensive income (loss), net of tax	$ 674	$ (7,424)	(9,443)	$ (7,386)
Balance	(42,125)		(42,125)
Foreign Currency Translation Adjustment
Changes in accumulated other comprehensive loss components
Balance			2,095
Other comprehensive income (loss) before reclassifications			(17,109)
Amounts reclassified from accumulated other comprehensive income (loss)			0
Total other comprehensive income (loss), net of tax			(17,109)
Balance	(15,014)		(15,014)
Pension and Other Post- Retirement Liability Adjustment
Changes in accumulated other comprehensive loss components
Balance			(34,777)
Other comprehensive income (loss) before reclassifications			4,549
Amounts reclassified from accumulated other comprehensive income (loss)			3,117
Total other comprehensive income (loss), net of tax			7,666
Balance	$ (27,111)		$ (27,111)

ACCUMULATED OTHER COMPREHENSI35

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Amortization of pension and other post-retirement liability adjustments
Tax Benefit	$ 10,950	$ 9,113	$ 30,068	$ 20,151
Net of Tax			(52,518)	(34,270)
Amounts reclassified from accumulated other comprehensive income (loss)
Amortization of pension and other post-retirement liability adjustments
Prior Service Costs	(420)	(558)	(564)	(1,674)
Actuarial Losses	949	656	5,465	1,968
Total Before Tax	529	98	4,901	294
Tax Benefit	(176)	(34)	(1,784)	(103)
Net of Tax	$ 353	$ 64	$ 3,117	$ 191

PENSIONS AND OTHER POST-RETIR36

PENSIONS AND OTHER POST-RETIREMENT BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments			$ 7,100
Pension Benefits
Components of the net periodic benefit cost
Service cost	$ 1,851	$ 1,734	5,626	$ 5,202
Interest cost	3,055	3,335	9,283	10,005
Expected return on plan assets	(3,564)	(3,936)	(10,874)	(11,808)
Amortization of prior service cost	0	3	0	9
Recognized actuarial loss	1,158	502	5,490	1,506
Net periodic benefit cost	2,500	1,638	9,525	4,914
Pension Benefits | Cost of sales
Components of the net periodic benefit cost
Net periodic benefit cost	1,500	900	5,200	2,800
Pension Benefits | Selling, general, and administrative expenses
Components of the net periodic benefit cost
Net periodic benefit cost	1,000	700	4,300	2,100
Other Benefits
Components of the net periodic benefit cost
Service cost	(2)	6	5	18
Interest cost	60	91	221	273
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	(420)	(561)	(564)	(1,683)
Recognized actuarial loss	(209)	154	(25)	462
Net periodic benefit cost	$ (571)	$ (310)	$ (363)	$ (930)

COMMON STOCK AND EARNINGS PER37

COMMON STOCK AND EARNINGS PER SHARE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
COMMON STOCK AND EARNINGS PER SHARE
Weighted-average number of common shares outstanding - basic	47,764,462	47,376,605	47,725,186	47,314,810
Potentially dilutive shares resulting from stock plans	724,000	696,000	716,000	718,000
Weighted-average number of common shares outstanding - diluted	48,487,623	48,072,632	48,441,129	48,032,710
Antidilutive equity awards, number of shares not included in the weighted-average common shares - diluted	0	124,000	0	144,000
Earnings per share, other disclosures
Repurchase of common stock, shares			345,963	388,938
Purchase of common stock for treasury			$ 7,478	$ 6,412
Exercise of stock options, shares			348,671	211,057
Dividends, Common Stock, Cash			$ 17,684
Proceeds from the issuance of common stock			$ 5,247	$ 2,788
Vested (in shares)			276,164	496,191
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,136		273,560

EQUITY (Details)

EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests:
Balance, as of December 31, 2014			$ 213,218
Total comprehensive income:
Net earnings attributable to Knoll, Inc. stockholders and noncontrolling interests			52,518	$ 34,270
Total other comprehensive income (loss), net of tax	$ 674	$ (7,424)	(9,443)	$ (7,386)
Other changes in equity:
Purchase of common stock for treasury			(7,478)
Cash dividends declared			(17,684)
Proceeds from the issuance of common stock			5,247
Stock-based compensation			5,650
Excess tax benefit from the exercise of stock options and vesting of equity awards			940
Balance, as of September 30, 2015	242,968		242,968
Equity Attributable to Knoll Inc., Stockholders
Change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests:
Balance, as of December 31, 2014			213,011
Total comprehensive income:
Net earnings attributable to Knoll, Inc. stockholders and noncontrolling interests			52,515
Total other comprehensive income (loss), net of tax			(9,443)
Other changes in equity:
Purchase of common stock for treasury			(7,478)
Cash dividends declared			(17,684)
Proceeds from the issuance of common stock			5,247
Stock-based compensation			5,650
Excess tax benefit from the exercise of stock options and vesting of equity awards			940
Balance, as of September 30, 2015	242,758		242,758
Noncontrolling Interests
Change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests:
Balance, as of December 31, 2014			207
Total comprehensive income:
Net earnings attributable to Knoll, Inc. stockholders and noncontrolling interests			3
Total other comprehensive income (loss), net of tax			0
Other changes in equity:
Purchase of common stock for treasury			0
Cash dividends declared			0
Proceeds from the issuance of common stock			0
Stock-based compensation			0
Excess tax benefit from the exercise of stock options and vesting of equity awards			0
Balance, as of September 30, 2015	$ 210		$ 210

FAIR VALUE OF FINANCIAL INSTR39

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	$ 5,000	$ 0
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payments	11,000		$ 16,000
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payments	$ 11,000		$ 16,000

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financial information of segments
NET SALES	$ 263,588	$ 268,297	$ 798,708	$ 763,841
INTERSEGMENT SALES	3,495	4,850	10,724	14,081
OPERATING PROFIT	28,704	23,315	79,258	56,837
Restructuring charges	441	0	441	795
Office
Financial information of segments
NET SALES	160,781	166,788	489,381	471,971
INTERSEGMENT SALES	343	837	1,244	1,821
OPERATING PROFIT	11,112	8,351	27,457	15,223
Restructuring charges			0	800
Studio
Financial information of segments
NET SALES	74,965	72,236	223,022	204,687
INTERSEGMENT SALES	1,525	1,575	4,611	4,409
OPERATING PROFIT	11,340	9,003	32,371	24,052
Restructuring charges			441
Coverings
Financial information of segments
NET SALES	27,842	29,273	86,305	87,183
INTERSEGMENT SALES	1,627	2,438	4,869	7,851
OPERATING PROFIT	$ 6,252	$ 5,961	19,430	$ 17,562
Restructuring charges			$ 0

RESTRUCTURING CHARGES - Summary

RESTRUCTURING CHARGES - Summary of Changes in Restructuring Liability (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Restructuring Reserve [Roll Forward]
Balance, as of December 31, 2014			$ 1,062
Restructuring charges	$ 441	$ 0	441	$ 795
Payments			(964)
Balance, as of September 30, 2015	539		539
Office Segment
Restructuring Reserve [Roll Forward]
Balance, as of December 31, 2014			1,046
Restructuring charges			0	$ 800
Payments			(725)
Balance, as of September 30, 2015	321		321
Studio Segment
Restructuring Reserve [Roll Forward]
Balance, as of December 31, 2014			0
Restructuring charges			441
Payments			(223)
Balance, as of September 30, 2015	218		218
Coverings Segment
Restructuring Reserve [Roll Forward]
Balance, as of December 31, 2014			16
Restructuring charges			0
Payments			(16)
Balance, as of September 30, 2015	$ 0		$ 0