Knoll (KNL) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
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	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		49,321,826
Restricted stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		853,360

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 5,924	$ 9,854
Customer receivables, net of allowance for doubtful accounts of $6,108 and $8,059, respectively	77,762	84,425
Inventories, net	150,076	142,072
Prepaid expenses	28,801	27,461
Other current assets	13,957	12,996
Total current assets	276,520	276,808
Property, plant, and equipment, net	204,693	197,084
Goodwill	141,759	141,391
Intangible assets, net	240,226	241,870
Other non-trade receivables	27	26
Other noncurrent assets	1,423	1,434
Total assets	864,648	858,613
Current liabilities:
Current maturities of long-term debt	10,000	10,000
Accounts payable	99,885	97,518
Income taxes payable	32	81
Other current liabilities	94,955	114,774
Total current liabilities	204,872	222,373
Long-term debt	223,716	208,383
Deferred income taxes	80,123	76,854
Post-employment benefits other than pensions	4,976	5,124
Pension liability	13,332	17,428
Other noncurrent liabilities	17,303	18,982
Total liabilities	544,322	549,144
Commitments and contingent liabilities
Equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 65,434,707 shares issued and 49,321,826 shares outstanding (including 853,360 non-voting restricted shares and net of 16,112,881 treasury shares) at June 30, 2017 and 64,741,648 shares issued and 49,096,290 shares outstanding (including 993,962 non-voting restricted shares and net of 15,645,358 treasury shares) at December 31, 2016	493	491
Additional paid-in capital	50,170	55,148
Retained earnings	310,305	297,011
Accumulated other comprehensive loss	(40,878)	(43,403)
Total Knoll, Inc. stockholders' equity	320,090	309,247
Noncontrolling interests	236	222
Total equity	320,326	309,469
Total liabilities and equity	$ 864,648	$ 858,613

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 6,108	$ 8,059
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	65,434,707	64,741,648
Common stock, shares outstanding	49,321,826	49,096,290
Non-vesting restricted shares	853,360	993,962
Treasury shares	16,112,881	15,645,358

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Sales	$ 268,694	$ 294,700	$ 525,514	$ 579,329
Cost of sales	168,736	180,636	329,882	357,501
Gross profit	99,958	114,064	195,632	221,828
Selling, general, and administrative expenses	75,578	80,590	148,218	156,505
Restructuring charges	2,150	0	2,150	0
Operating profit	22,230	33,474	45,264	65,323
Interest expense	1,859	1,307	3,530	2,861
Other expense, net	229	185	436	2,789
Income before income tax expense	20,142	31,982	41,298	59,673
Income tax expense	7,182	10,341	12,946	20,621
Net earnings	12,960	21,641	28,352	39,052
Net earnings attributable to noncontrolling interests	22	6	14	17
Net earnings attributable to Knoll, Inc. stockholders	$ 12,938	$ 21,635	$ 28,338	$ 39,035
Net earnings per common share attributable to Knoll, Inc. stockholders:
Basic (in dollars per share)	$ 0.27	$ 0.45	$ 0.59	$ 0.81
Diluted (in dollars per share)	0.26	0.44	0.57	0.80
Dividends per share (in dollars per share)	$ 0.15	$ 0.15	$ 0.30	$ 0.30
Weighted-average number of common shares outstanding:
Basic (in shares)	48,464,605	48,018,733	48,375,241	47,961,661
Diluted (in shares)	49,376,506	48,832,874	49,294,525	48,713,633
Other comprehensive income (loss):
Pension and other post-employment liability adjustment, net of tax	$ (138)	$ (136)	$ (275)	$ (272)
Foreign currency translation adjustment	2,320	1,566	2,800	5,616
Total other comprehensive income (loss), net of tax	2,182	1,430	2,525	5,344
Total comprehensive income	15,142	23,071	30,877	44,396
Comprehensive income attributable to noncontrolling interests	22	6	14	17
Comprehensive income attributable to Knoll, Inc. stockholders	$ 15,120	$ 23,065	$ 30,863	$ 44,379

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$ 28,352	$ 39,052
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation	10,668	9,248
Amortization expense (including deferred financing fees)	1,977	1,977
Inventory obsolescence	1,203	1,423
Loss on disposal of property, plant and equipment	29	1
Unrealized foreign currency (gains) losses	(122)	1,605
Stock-based compensation	5,043	4,592
Bad debt and customer credits	(1,650)	1,282
Changes in assets and liabilities:
Customer receivables	8,420	16,216
Inventories	(8,811)	(6,410)
Prepaid and other current assets	(1,807)	(2,675)
Accounts payable	6,015	(10,109)
Current and deferred income taxes	2,567	710
Other current liabilities	(13,729)	(9,787)
Other noncurrent assets and liabilities	(5,917)	(786)
Cash provided by operating activities	32,238	46,339
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures, net	(20,756)	(15,057)
Cash used in investing activities	(20,756)	(15,057)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from credit facility	214,000	173,500
Repayment of credit facility	(199,000)	(185,500)
Payment of dividends	(15,729)	(14,727)
Proceeds from the issuance of common stock	551	2,120
Purchase of common stock for treasury	(10,570)	(3,903)
Contingent purchase price payment	(6,000)	(5,000)
Cash used in financing activities	(16,748)	(33,510)
Effect of exchange rate changes on cash and cash equivalents	1,336	1,584
Net decrease in cash and cash equivalents	(3,930)	(644)
Cash and cash equivalents at beginning of period	9,854	4,192
Cash and cash equivalents at end of period	$ 5,924	$ 3,548

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU sets forth a five-step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The FASB subsequently deferred the effective date of this standard to December 15, 2017 with early adoption permitted as of December 15, 2016. The Company will adopt the new standard in the annual period beginning January 1, 2018. The standard permits the use of either the full retrospective or modified retrospective (cumulative effect) transition method. Transition practical expedients are available for both methods. The Company plans to apply the modified retrospective transition method. The Company assembled an implementation work team to assess and document the accounting conclusions for the adoption of ASU 2014-09. Based on this analysis, the Company does not believe the adoption of the ASU will have a material impact to the financial statements. The Company continues to assess the potential impact on accounting policies, internal control processes and related disclosures required under the new guidance. 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 is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard during the three months ended March 31, 2017, and the impact on its consolidated financial statements was not material. In February 2016, the FASB issued guidance codified in ASC 842, Leases, which supersedes the guidance in ASC 840, Leases. ASC 842 will be effective for the Company on January 1, 2019, and the Company will adopt the standard using the modified retrospective approach. While the Company continues to evaluate the provisions of ASC 842 to determine how it will be affected, the primary effect of adopting the new standard will be to record assets and obligations for current operating leases. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the accounting for goodwill impairment by removing the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. Under the new guidance, goodwill impairment will be measured and recognized as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The revised guidance does not affect the reporting entity’s ability to first assess qualitative factors by reporting unit to determine whether it is necessary to perform the quantitative goodwill impairment test. The guidance is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715). The new standard improves the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new standard will require all components of the Company's net periodic benefit cost (income), with the exception of service cost, currently reported within selling, general and administrative expenses, to be reclassified and reported within other expense. The adoption of this new standard will have no impact on pre-tax income or net income reported. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718). The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the new guidance, an entity should account for the effects of a modification unless all of the following are met, (i) the fair value of the modified award is the same as the fair value of the original award, (ii) the vesting conditions of the modified award are the same as the original awards immediately before modification, and (iii) the classification of the modified award as an equity instrument or liability instrument is the same as the classification immediately prior to modification. The guidance is effective for annual periods and interim periods within those beginning after December 15, 2017. Early adoption is permitted for annual and interim periods with a prospective application to an award modified on or after the adoption date. At this time, the Company believes there will be an immaterial impact to the financial statements as a result of adopting this ASU.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Information regarding the Company's inventories is as follows (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 59,247 $ 60,217 Work-in-process 7,830 7,186 Finished goods 82,999 74,669 $ 150,076 $ 142,072 Inventory reserves for obsolescence and other estimated losses were $ 10.6 million and $9.5 million at June 30, 2017 and December 31, 2016 , respectively, and have been included in the amounts above.

PENSION AND OTHER POST-EMPLOYME

PENSION AND OTHER POST-EMPLOYMENT BENEFITS	6 Months Ended
	Jun. 30, 2017
Pension and Other Postretirement Benefit Expense [Abstract]
PENSION AND OTHER POST-EMPLOYMENT BENEFITS	PENSION AND OTHER POST-EMPLOYMENT BENEFITS The following tables set forth the components of the net periodic benefit income for the Company's pension and other post-employment benefit plans (in thousands): Pension Benefits Other Benefits Three Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Service cost $ 175 $ 468 $ — $ — Interest cost 2,390 2,416 43 49 Expected return on plan assets (4,615 ) (3,612 ) — — Amortization of prior service credit — — (371 ) (280 ) Recognized actuarial loss (gain) 154 123 1 (62 ) Net periodic benefit (income) cost $ (1,896 ) $ (605 ) $ (327 ) $ (293 ) Pension Benefits Other Benefits Six Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Service cost $ 350 $ 936 $ — $ — Interest cost 4,780 4,832 86 98 Expected return on plan assets (9,230 ) (7,224 ) — — Amortization of prior service credit — — (742 ) (560 ) Recognized actuarial loss (gain) 308 246 2 (124 ) Net periodic benefit (income) cost $ (3,792 ) $ (1,210 ) $ (654 ) $ (586 )

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS Financial Instruments The fair values of the Company’s cash and cash equivalents, customer receivables, 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 are classified as Level 2. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table represents the assets and liabilities, measured at fair value on a recurring basis and the basis for that measurement (in thousands): Fair Value as of June 30, 2017 Fair Value as of December 31, 2016 Liabilities: Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Contingent purchase price payment - HOLLY HUNT® $ — $ — $ — $ — $ — $ — $ 6,000 $ 6,000 Contingent purchase price payment - DatesWeiser — — 1,100 1,100 — — 1,100 1,100 Total $ — $ — $ 1,100 $ 1,100 $ — $ — $ 7,100 $ 7,100 Pursuant to the agreement governing the acquisition of HOLLY HUNT®, the Company was required to make annual contingent purchase price payments. The payouts were based upon HOLLY HUNT® reaching an annual net sales target, for each year through 2016, and were paid out on or around February 20 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, totaling $16.0 million , was determined at the time of acquisition based upon net sales projections for HOLLY HUNT® for 2014, 2015, and 2016. The Company paid the remaining $6.0 million contingent purchase price in the three months ended March 31, 2017, as a result of HOLLY HUNT® achieving the 2016 net sales projections. Pursuant to the agreement governing the acquisition of DatesWeiser, the Company may be required to make annual contingent purchase price payments. The payouts are based upon DatesWeiser reaching an annual net sales target, for each year through 2020. 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, totaling $1.1 million, was determined at the time of acquisition based upon net sales projections for DatesWeiser for 2017, 2018, 2019 and 2020. 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 will 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 June 30, 2017 or December 31, 2016 .

OTHER CURRENT LIABILITIES OTHER

OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2017
Other Liabilities Disclosure [Abstract]
OTHER CURRENT LIABILITIES	OTHER CURRENT LIABILITIES Information regarding the Company's other current liabilities is as follows (in thousands): June 30, 2017 December 31, 2016 Accrued employee compensation $ 29,070 $ 46,508 Customer deposits 34,640 31,216 Warranty 8,944 8,906 Contingent payout 1,100 7,100 Other 21,201 21,044 Other current liabilities $ 94,955 $ 114,774

INDEBTEDNESS

INDEBTEDNESS	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
INDEBTEDNESS	INDEBTEDNESS The Company's long-term debt is summarized as follows (in thousands): June 30, 2017 December 31, 2016 Balance of revolving credit facility $ 65,000 $ 45,000 Balance of term loan 170,000 175,000 Total long-term debt 235,000 220,000 Less: Current maturities of long-term debt 10,000 10,000 Less: Deferred financing fees, net 1,284 1,617 Long-term debt $ 223,716 $ 208,383

CONTINGENT LIABILITIES AND COMM

CONTINGENT LIABILITIES AND COMMITMENTS	6 Months Ended
	Jun. 30, 2017
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 provides for estimated product warranty expenses when related products are sold and are included within other current liabilities. Because warranty estimates are forecasts that are based on the best available information, primarily historical claims experience, future warranty claims may differ from the amounts provided. Changes in the warranty reserve are as follows (in thousands): Balance, December 31, 2016 $ 8,906 Provision for warranty claims 2,832 Warranty claims paid (3,044 ) Foreign currency translation adjustment 250 Balance, June 30, 2017 $ 8,944 Warranty expense for the three and six months ended June 30, 2017 was $1.7 million and $2.8 million , respectively. Warranty expense for the three and six months ended June 30, 2016 was $1.8 million and $3.4 million , respectively.

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
EQUITY	EQUITY The following table shows the change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests during the six months ended June 30, 2017 (in thousands): Common Additional Retained Accumulated Total Noncontrolling Interests Total Equity Balance at December 31, 2016 $ 491 $ 55,148 $ 297,011 $ (43,403 ) $ 309,247 $ 222 $ 309,469 Net earnings — — 28,338 — 28,338 14 28,352 Other comprehensive income — — — 2,525 2,525 — 2,525 Shares issued for consideration: Exercise of stock options (22,500 shares) — 472 — — 472 — 472 Shares issued under stock incentive plan (676,850) 7 (3 ) — — 4 — 4 Shares issued to Board of Directors in lieu of cash (3,188 shares) — 75 — — 75 — 75 Stock-based compensation, net of forfeitures (1 ) 5,044 — — 5,043 — 5,043 Cash dividend ($0.30 per share) — — (15,044 ) — (15,044 ) — (15,044 ) Purchase of common stock (420,072 shares) (4 ) (10,566 ) — — (10,570 ) — (10,570 ) Balance at June 30, 2017 $ 493 $ 50,170 $ 310,305 $ (40,878 ) $ 320,090 $ 236 $ 320,326

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2017
Equity [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 six months ended June 30, 2017 (in thousands): Foreign Pension and Total Balance, as of December 31, 2016 $ (13,998 ) $ (29,405 ) $ (43,403 ) Other comprehensive income before reclassifications 2,800 — 2,800 Amounts reclassified from accumulated other comprehensive income (loss) — (275 ) (275 ) Net current-period other comprehensive income 2,800 (275 ) 2,525 Balance, as of June 30, 2017 $ (11,198 ) $ (29,680 ) $ (40,878 ) 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 Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Amortization of pension and other post-employment liability adjustments Prior service credits (1) $ (371 ) $ (280 ) $ (742 ) $ (560 ) Actuarial losses (1) 155 61 310 122 Total before tax (216 ) (219 ) (432 ) (438 ) Tax benefit 78 83 157 166 Net of tax $ (138 ) $ (136 ) $ (275 ) $ (272 ) (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension costs. See Note 3 for additional information.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share excludes the dilutive effect of common shares that could potentially be issued due to the exercise of stock options and unvested restricted stock and restricted stock units, and is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share includes the effect of shares and potential shares and units issued under the stock incentive plans. The following table sets forth the reconciliation from basic to dilutive average common shares (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net earnings attributable to Knoll, Inc. stockholders $ 12,938 $ 21,635 $ 28,338 $ 39,035 Denominator: Denominator for basic earnings per shares - weighted-average shares 48,465 48,019 48,375 47,962 Effect of dilutive securities: Potentially dilutive shares resulting from stock plans 912 814 920 752 Denominator for diluted earnings per share - weighted-average shares 49,377 48,833 49,295 48,714 Antidilutive equity awards not included in weighted-average common shares—diluted — — 12 — Net earnings per common share attributable to Knoll, Inc. stockholders: Basic $ 0.27 $ 0.45 $ 0.59 $ 0.81 Diluted $ 0.26 $ 0.44 $ 0.57 $ 0.80

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2017
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 June 30, 2017 and 2016 were based on the estimated effective tax rates applicable for the full years ending December 31, 2017 and 2016 and includes items specifically related to the interim periods. The Company’s effective tax rate was 31.3% and 34.6% for the six months ended June 30, 2017 and 2016 , respectively. The decrease in the Company's effective tax rate for the six months ended June 30, 2017 was due primarily to the adoption of ASU 2016-09 in the third quarter of 2016, which impacted the accounting treatment of excess tax benefits related to vesting of equity awards in the six months ended June 30, 2017. This resulted in the realization of tax benefits as a reduction to income tax expense in the quarter. In addition, the effective tax rate was affected by the geographic mix of pretax income and the varying effective tax rates in the countries and states in which the Company operates. As of June 30, 2017 and December 31, 2016 , the Company had unrecognized tax benefits of approximately $0.9 million , respectively. These unrecognized tax benefit amounts would affect the effective tax rate if recognized. As of June 30, 2017 , the Company is subject to U.S. Federal Income Tax examination for the tax years 2007 through 2016, and to non-U.S. income tax examination for the tax years 2010 to 2016. In addition, the Company is subject to state and local income tax examinations for the tax years 2007 through 2016.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company manages its business through its reporting segments: Office, Studio, and Coverings. All unallocated expenses are included within Corporate. The Office segment includes a complete range of workplace products that address diverse workplace planning paradigms. These products include: systems furniture, seating, storage, tables, desks and KnollExtra® accessories as well as the international sales of North American Office products. The Studio segment includes KnollStudio®, HOLLY HUNT®, Knoll Europe and DatesWeiser. KnollStudio® products, include iconic seating, lounge furniture, side, cafe and dining chairs as well as conference, training and dining and occasional tables. HOLLY HUNT® is known for high quality residential furniture, lighting, rugs, textiles and leathers. In 2016, HOLLY HUNT® acquired Vladimir Kagan Design Group, a renowned collection of modern luxury furnishings. Knoll Europe, which markets and sells both KnollStudio® and Knoll Office products, manufactures and sells products to customers primarily in Europe. DatesWeiser, known for its sophisticated meeting and conference tables and credenzas, sets a standard for design, quality and technology integration. The Coverings segment includes KnollTextiles®, Spinneybeck® (including Filzfelt®), and Edelman® Leather. These businesses provide a wide range of customers with 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 continue to be 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 operating segment results. Prior year amounts have been recast to conform to the current presentation (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 SALES Office $ 153,042 $ 179,270 $ 302,874 $ 364,626 Studio 88,039 88,650 167,112 160,156 Coverings 27,613 26,780 55,528 54,547 Knoll, Inc. $ 268,694 $ 294,700 $ 525,514 $ 579,329 INTERSEGMENT SALES (1) Office $ 450 $ 488 $ 724 $ 1,069 Studio 1,493 1,753 2,591 3,058 Coverings 649 2,008 2,600 4,255 Knoll, Inc. $ 2,592 $ 4,249 $ 5,915 $ 8,382 OPERATING PROFIT Office (2) $ 4,395 $ 15,794 $ 13,171 $ 35,627 Studio 14,919 15,627 26,558 26,110 Coverings 6,194 6,458 12,430 13,180 Corporate (3,278 ) (4,405 ) (6,895 ) (9,594 ) Knoll, Inc. (3) $ 22,230 $ 33,474 $ 45,264 $ 65,323 _______________________________________________________________________________ (1) Intersegment sales are presented on a cost-plus basis which takes into consideration the effect of transfer prices between legal entities. (2) Office Operating Profit includes $2.2 million of restructuring charges for the three and six months ended June 30, 2017. The restructuring charges related to headcount rationalization and modernization of equipment. The Company does not expect to incur additional restructuring charges related to these activities. (3) The Company does not allocate interest expense or other (income) expense, net to the reportable segments.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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, 2016 , 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, 2016 .
BASIS OF PRESENTATION	New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU sets forth a five-step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The FASB subsequently deferred the effective date of this standard to December 15, 2017 with early adoption permitted as of December 15, 2016. The Company will adopt the new standard in the annual period beginning January 1, 2018. The standard permits the use of either the full retrospective or modified retrospective (cumulative effect) transition method. Transition practical expedients are available for both methods. The Company plans to apply the modified retrospective transition method. The Company assembled an implementation work team to assess and document the accounting conclusions for the adoption of ASU 2014-09. Based on this analysis, the Company does not believe the adoption of the ASU will have a material impact to the financial statements. The Company continues to assess the potential impact on accounting policies, internal control processes and related disclosures required under the new guidance. 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 is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard during the three months ended March 31, 2017, and the impact on its consolidated financial statements was not material. In February 2016, the FASB issued guidance codified in ASC 842, Leases, which supersedes the guidance in ASC 840, Leases. ASC 842 will be effective for the Company on January 1, 2019, and the Company will adopt the standard using the modified retrospective approach. While the Company continues to evaluate the provisions of ASC 842 to determine how it will be affected, the primary effect of adopting the new standard will be to record assets and obligations for current operating leases. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the accounting for goodwill impairment by removing the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. Under the new guidance, goodwill impairment will be measured and recognized as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The revised guidance does not affect the reporting entity’s ability to first assess qualitative factors by reporting unit to determine whether it is necessary to perform the quantitative goodwill impairment test. The guidance is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715). The new standard improves the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new standard will require all components of the Company's net periodic benefit cost (income), with the exception of service cost, currently reported within selling, general and administrative expenses, to be reclassified and reported within other expense. The adoption of this new standard will have no impact on pre-tax income or net income reported. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718). The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the new guidance, an entity should account for the effects of a modification unless all of the following are met, (i) the fair value of the modified award is the same as the fair value of the original award, (ii) the vesting conditions of the modified award are the same as the original awards immediately before modification, and (iii) the classification of the modified award as an equity instrument or liability instrument is the same as the classification immediately prior to modification. The guidance is effective for annual periods and interim periods within those beginning after December 15, 2017. Early adoption is permitted for annual and interim periods with a prospective application to an award modified on or after the adoption date. At this time, the Company believes there will be an immaterial impact to the financial statements as a result of adopting this ASU.
Nature of Operations [Text Block]	In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU sets forth a five-step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The FASB subsequently deferred the effective date of this standard to December 15, 2017 with early adoption permitted as of December 15, 2016. The Company will adopt the new standard in the annual period beginning January 1, 2018. The standard permits the use of either the full retrospective or modified retrospective (cumulative effect) transition method. Transition practical expedients are available for both methods. The Company plans to apply the modified retrospective transition method. The Company assembled an implementation work team to assess and document the accounting conclusions for the adoption of ASU 2014-09. Based on this analysis, the Company does not believe the adoption of the ASU will have a material impact to the financial statements. The Company continues to assess the potential impact on accounting policies, internal control processes and related disclosures required under the new guidance. 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 is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard during the three months ended March 31, 2017, and the impact on its consolidated financial statements was not material. In February 2016, the FASB issued guidance codified in ASC 842, Leases, which supersedes the guidance in ASC 840, Leases. ASC 842 will be effective for the Company on January 1, 2019, and the Company will adopt the standard using the modified retrospective approach. While the Company continues to evaluate the provisions of ASC 842 to determine how it will be affected, the primary effect of adopting the new standard will be to record assets and obligations for current operating leases. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the accounting for goodwill impairment by removing the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. Under the new guidance, goodwill impairment will be measured and recognized as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The revised guidance does not affect the reporting entity’s ability to first assess qualitative factors by reporting unit to determine whether it is necessary to perform the quantitative goodwill impairment test. The guidance is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715). The new standard improves the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new standard will require all components of the Company's net periodic benefit cost (income), with the exception of service cost, currently reported within selling, general and administrative expenses, to be reclassified and reported within other expense. The adoption of this new standard will have no impact on pre-tax income or net income reported. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718). The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the new guidance, an entity should account for the effects of a modification unless all of the following are met, (i) the fair value of the modified award is the same as the fair value of the original award, (ii) the vesting conditions of the modified award are the same as the original awards immediately before modification, and (iii) the classification of the modified award as an equity instrument or liability instrument is the same as the classification immediately prior to modification. The guidance is effective for annual periods and interim periods within those beginning after December 15, 2017. Early adoption is permitted for annual and interim periods with a prospective application to an award modified on or after the adoption date. At this time, the Company believes there will be an immaterial impact to the financial statements as a result of adopting this ASU.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	Information regarding the Company's inventories is as follows (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 59,247 $ 60,217 Work-in-process 7,830 7,186 Finished goods 82,999 74,669 $ 150,076 $ 142,072

PENSION AND OTHER POST-EMPLOY20

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2017
Pension and Other Postretirement Benefit Expense [Abstract]
Schedule of components of the net periodic benefit cost	The following tables set forth the components of the net periodic benefit income for the Company's pension and other post-employment benefit plans (in thousands): Pension Benefits Other Benefits Three Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Service cost $ 175 $ 468 $ — $ — Interest cost 2,390 2,416 43 49 Expected return on plan assets (4,615 ) (3,612 ) — — Amortization of prior service credit — — (371 ) (280 ) Recognized actuarial loss (gain) 154 123 1 (62 ) Net periodic benefit (income) cost $ (1,896 ) $ (605 ) $ (327 ) $ (293 ) Pension Benefits Other Benefits Six Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Service cost $ 350 $ 936 $ — $ — Interest cost 4,780 4,832 86 98 Expected return on plan assets (9,230 ) (7,224 ) — — Amortization of prior service credit — — (742 ) (560 ) Recognized actuarial loss (gain) 308 246 2 (124 ) Net periodic benefit (income) cost $ (3,792 ) $ (1,210 ) $ (654 ) $ (586 )

FAIR VALUE OF FINANCIAL INSTR21

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of indefinite lived intangible assets recorded at fair value on a recurring basis	The following table represents the assets and liabilities, measured at fair value on a recurring basis and the basis for that measurement (in thousands): Fair Value as of June 30, 2017 Fair Value as of December 31, 2016 Liabilities: Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Contingent purchase price payment - HOLLY HUNT® $ — $ — $ — $ — $ — $ — $ 6,000 $ 6,000 Contingent purchase price payment - DatesWeiser — — 1,100 1,100 — — 1,100 1,100 Total $ — $ — $ 1,100 $ 1,100 $ — $ — $ 7,100 $ 7,100

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
Other Liabilities Disclosure [Abstract]
Schedule of other current liabilities	Information regarding the Company's other current liabilities is as follows (in thousands): June 30, 2017 December 31, 2016 Accrued employee compensation $ 29,070 $ 46,508 Customer deposits 34,640 31,216 Warranty 8,944 8,906 Contingent payout 1,100 7,100 Other 21,201 21,044 Other current liabilities $ 94,955 $ 114,774

INDEBTEDNESS (Tables)

INDEBTEDNESS (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of long-term debt	The Company's long-term debt is summarized as follows (in thousands): June 30, 2017 December 31, 2016 Balance of revolving credit facility $ 65,000 $ 45,000 Balance of term loan 170,000 175,000 Total long-term debt 235,000 220,000 Less: Current maturities of long-term debt 10,000 10,000 Less: Deferred financing fees, net 1,284 1,617 Long-term debt $ 223,716 $ 208,383

CONTINGENT LIABILITIES AND CO24

CONTINGENT LIABILITIES AND COMMITMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of changes in the warranty reserve	Changes in the warranty reserve are as follows (in thousands): Balance, December 31, 2016 $ 8,906 Provision for warranty claims 2,832 Warranty claims paid (3,044 ) Foreign currency translation adjustment 250 Balance, June 30, 2017 $ 8,944

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Schedule of stockholders' equity	The following table shows the change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests during the six months ended June 30, 2017 (in thousands): Common Additional Retained Accumulated Total Noncontrolling Interests Total Equity Balance at December 31, 2016 $ 491 $ 55,148 $ 297,011 $ (43,403 ) $ 309,247 $ 222 $ 309,469 Net earnings — — 28,338 — 28,338 14 28,352 Other comprehensive income — — — 2,525 2,525 — 2,525 Shares issued for consideration: Exercise of stock options (22,500 shares) — 472 — — 472 — 472 Shares issued under stock incentive plan (676,850) 7 (3 ) — — 4 — 4 Shares issued to Board of Directors in lieu of cash (3,188 shares) — 75 — — 75 — 75 Stock-based compensation, net of forfeitures (1 ) 5,044 — — 5,043 — 5,043 Cash dividend ($0.30 per share) — — (15,044 ) — (15,044 ) — (15,044 ) Purchase of common stock (420,072 shares) (4 ) (10,566 ) — — (10,570 ) — (10,570 ) Balance at June 30, 2017 $ 493 $ 50,170 $ 310,305 $ (40,878 ) $ 320,090 $ 236 $ 320,326

ACCUMULATED OTHER COMPREHENSI26

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	The following table summarizes the changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2017 (in thousands): Foreign Pension and Total Balance, as of December 31, 2016 $ (13,998 ) $ (29,405 ) $ (43,403 ) Other comprehensive income before reclassifications 2,800 — 2,800 Amounts reclassified from accumulated other comprehensive income (loss) — (275 ) (275 ) Net current-period other comprehensive income 2,800 (275 ) 2,525 Balance, as of June 30, 2017 $ (11,198 ) $ (29,680 ) $ (40,878 )
Reclassification out of accumulated other comprehensive income	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 Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Amortization of pension and other post-employment liability adjustments Prior service credits (1) $ (371 ) $ (280 ) $ (742 ) $ (560 ) Actuarial losses (1) 155 61 310 122 Total before tax (216 ) (219 ) (432 ) (438 ) Tax benefit 78 83 157 166 Net of tax $ (138 ) $ (136 ) $ (275 ) $ (272 ) (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension costs. See Note 3 for additional information.

COMMON STOCK AND EARNINGS PER S

COMMON STOCK AND EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of reconciliation of basic to dilutive average common shares	The following table sets forth the reconciliation from basic to dilutive average common shares (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net earnings attributable to Knoll, Inc. stockholders $ 12,938 $ 21,635 $ 28,338 $ 39,035 Denominator: Denominator for basic earnings per shares - weighted-average shares 48,465 48,019 48,375 47,962 Effect of dilutive securities: Potentially dilutive shares resulting from stock plans 912 814 920 752 Denominator for diluted earnings per share - weighted-average shares 49,377 48,833 49,295 48,714 Antidilutive equity awards not included in weighted-average common shares—diluted — — 12 — Net earnings per common share attributable to Knoll, Inc. stockholders: Basic $ 0.27 $ 0.45 $ 0.59 $ 0.81 Diluted $ 0.26 $ 0.44 $ 0.57 $ 0.80

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of certain financial information related to segments	The tables below present the Company’s segment information with Corporate costs excluded from operating segment results. Prior year amounts have been recast to conform to the current presentation (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 SALES Office $ 153,042 $ 179,270 $ 302,874 $ 364,626 Studio 88,039 88,650 167,112 160,156 Coverings 27,613 26,780 55,528 54,547 Knoll, Inc. $ 268,694 $ 294,700 $ 525,514 $ 579,329 INTERSEGMENT SALES (1) Office $ 450 $ 488 $ 724 $ 1,069 Studio 1,493 1,753 2,591 3,058 Coverings 649 2,008 2,600 4,255 Knoll, Inc. $ 2,592 $ 4,249 $ 5,915 $ 8,382 OPERATING PROFIT Office (2) $ 4,395 $ 15,794 $ 13,171 $ 35,627 Studio 14,919 15,627 26,558 26,110 Coverings 6,194 6,458 12,430 13,180 Corporate (3,278 ) (4,405 ) (6,895 ) (9,594 ) Knoll, Inc. (3) $ 22,230 $ 33,474 $ 45,264 $ 65,323 _______________________________________________________________________________ (1) Intersegment sales are presented on a cost-plus basis which takes into consideration the effect of transfer prices between legal entities. (2) Office Operating Profit includes $2.2 million of restructuring charges for the three and six months ended June 30, 2017. The restructuring charges related to headcount rationalization and modernization of equipment. The Company does not expect to incur additional restructuring charges related to these activities. (3) The Company does not allocate interest expense or other (income) expense, net to the reportable segments.

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 59,247	$ 60,217
Work-in-process	7,830	7,186
Finished goods	82,999	74,669
Inventories, net	150,076	142,072
Inventory reserves for obsolescence and other estimated losses	$ 10,600	$ 9,500

PENSION AND OTHER POST-EMPLOY30

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Pension Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
Service cost	$ 175	$ 468	$ 350	$ 936
Interest cost	2,390	2,416	4,780	4,832
Expected return on plan assets	(4,615)	(3,612)	(9,230)	(7,224)
Amortization of prior service credit	0	0	0	0
Recognized actuarial loss (gain)	154	123	308	246
Net periodic benefit (income) cost	(1,896)	(605)	(3,792)	(1,210)
Other Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
Service cost	0	0	0	0
Interest cost	43	49	86	98
Expected return on plan assets	0	0	0	0
Amortization of prior service credit	(371)	(280)	(742)	(560)
Recognized actuarial loss (gain)	1	(62)	2	(124)
Net periodic benefit (income) cost	$ (327)	$ (293)	$ (654)	$ (586)

FAIR VALUE OF FINANCIAL INSTR31

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	$ 1,100	$ 7,100	$ 16,000
Holly Hunt Enterprises, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	0	6,000
DatesWeiser
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	1,100	1,100
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	0	0
Level 1 | Holly Hunt Enterprises, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	0	0
Level 1 | DatesWeiser
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	0	0
Level 2 | Holly Hunt Enterprises, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	0	0
Level 2 | DatesWeiser
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	1,100	7,100
Level 3 | Holly Hunt Enterprises, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	0	6,000
Level 3 | DatesWeiser
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price payment	$ 1,100	$ 1,100

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Accrued employee compensation	$ 29,070	$ 46,508
Customer deposits	34,640	31,216
Warranty	8,944	8,906
Contingent payout	1,100	7,100
Other	21,201	21,044
Other current liabilities	$ 94,955	$ 114,774

INDEBTEDNESS (Details)

INDEBTEDNESS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Long-term debt
Long-term debt	$ 235,000	$ 220,000
Less: Current maturities of long-term debt	10,000	10,000
Less: Deferred financing fees, net	1,284	1,617
Long-term debt	223,716	208,383
Revolving credit facility
Long-term debt
Long-term debt	65,000	45,000
Term loan
Long-term debt
Long-term debt	$ 170,000	$ 175,000

CONTINGENT LIABILITIES AND CO34

CONTINGENT LIABILITIES AND COMMITMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Changes in warranty reserve
Balance, December 31, 2016			$ 8,906
Provision for warranty claims	$ 1,700	$ 1,800	2,832	$ 3,400
Warranty claims paid			(3,044)
Foreign currency translation adjustment			250
Balance, June 30, 2017	$ 8,944		$ 8,944

EQUITY (Details)

EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ 309,469
Net earnings			28,352
Other comprehensive income	$ 2,182	$ 1,430	2,525	$ 5,344
Exercise of stock options (22,500 shares)			472
Shares issued under stock incentive plan (676,850)			4
Shares issued to Board of Directors in lieu of cash (3,188 shares)			75
Stock-based compensation, net of forfeitures			5,043
Cash dividend ($0.30 per share)			(15,044)
Purchase of common stock (420,072 shares)			(10,570)
Ending Balance	320,326		$ 320,326
Exercise of stock options (in shares)			22,500
Shares issued under stock incentive plan (676,850) (in shares)			676,850
Shares issued to Board of Directors in lieu of cash (in shares)			3,188
Cash dividend (in dollars per share)			$ 0.3
Purchase of common stock (in shares)			420,072
Total Knoll, Inc. Stockholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ 309,247
Net earnings			28,338
Other comprehensive income			2,525
Exercise of stock options (22,500 shares)			472
Shares issued under stock incentive plan (676,850)			4
Shares issued to Board of Directors in lieu of cash (3,188 shares)			75
Stock-based compensation, net of forfeitures			5,043
Cash dividend ($0.30 per share)			(15,044)
Purchase of common stock (420,072 shares)			(10,570)
Ending Balance	320,090		320,090
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			491
Shares issued under stock incentive plan (676,850)			7
Stock-based compensation, net of forfeitures			(1)
Purchase of common stock (420,072 shares)			(4)
Ending Balance	493		493
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			55,148
Exercise of stock options (22,500 shares)			472
Shares issued under stock incentive plan (676,850)			(3)
Shares issued to Board of Directors in lieu of cash (3,188 shares)			75
Stock-based compensation, net of forfeitures			5,044
Purchase of common stock (420,072 shares)			(10,566)
Ending Balance	50,170		50,170
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			297,011
Net earnings			28,338
Cash dividend ($0.30 per share)			(15,044)
Ending Balance	310,305		310,305
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			(43,403)
Other comprehensive income			2,525
Ending Balance	(40,878)		(40,878)
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			222
Net earnings			14
Ending Balance	$ 236		$ 236

ACCUMULATED OTHER COMPREHENSI36

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ (43,403)
Other comprehensive income before reclassifications	2,800
Amounts reclassified from accumulated other comprehensive income (loss)	(275)
Net current-period other comprehensive income	2,525
Ending Balance	(40,878)
Foreign Currency Translation Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(13,998)
Other comprehensive income before reclassifications	2,800
Amounts reclassified from accumulated other comprehensive income (loss)	0
Net current-period other comprehensive income	2,800
Ending Balance	(11,198)
Pension and Other Post-Employment Liability Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(29,405)
Other comprehensive income before reclassifications	0
Amounts reclassified from accumulated other comprehensive income (loss)	(275)
Net current-period other comprehensive income	(275)
Ending Balance	$ (29,680)

ACCUMULATED OTHER COMPREHENSI37

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax benefit	$ (7,182)	$ (10,341)	$ (12,946)	$ (20,621)
Net of tax			28,352
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Prior service credits	(371)	(280)	(742)	(560)
Actuarial losses	155	61	310	122
Total before tax	(216)	(219)	(432)	(438)
Tax benefit	78	83	157	166
Net of tax	$ (138)	$ (136)	$ (275)	$ (272)

COMMON STOCK AND EARNINGS PER38

COMMON STOCK AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net earnings attributable to Knoll, Inc. stockholders	$ 12,938	$ 21,635		$ 28,338	$ 39,035
Weighted-average shares of common stock outstanding—basic (in shares)	48,464,605	48,018,733		48,375,241	47,961,661
Potentially dilutive shares resulting from stock plans (in shares)	912,000	814,000		920,000	752,000
Denominator for diluted earnings per share - weighted-average shares (in shares)	49,376,506	48,832,874	48,833,000	49,294,525	48,713,633
Antidilutive equity awards not included in weighted-average common shares—diluted (in shares)	0	0		12,000	0
Basic (in dollars per share)	$ 0.27	$ 0.45		$ 0.59	$ 0.81
Diluted (in dollars per share)	$ 0.26	$ 0.44		$ 0.57	$ 0.80

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	31.30%	34.60%
Unrecognized tax benefits, which would reduce the effective tax rate if recognized	$ 0.9

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Financial information of segments
SALES	$ 268,694	$ 294,700	$ 525,514	$ 579,329
OPERATING PROFIT	22,230	33,474	45,264	65,323
Operating Segments
Financial information of segments
SALES	268,694	294,700	525,514	579,329
INTERSEGMENT SALES	2,592	4,249	5,915	8,382
Corporate
Financial information of segments
OPERATING PROFIT	(3,278)	(4,405)	(6,895)	(9,594)
Office | Operating Segments
Financial information of segments
SALES	153,042	179,270	302,874	364,626
INTERSEGMENT SALES	450	488	724	1,069
OPERATING PROFIT	4,395	15,794	13,171	35,627
Restructuring charges	2,200		2,200
Studio | Operating Segments
Financial information of segments
SALES	88,039	88,650	167,112	160,156
INTERSEGMENT SALES	1,493	1,753	2,591	3,058
OPERATING PROFIT	14,919	15,627	26,558	26,110
Coverings | Operating Segments
Financial information of segments
SALES	27,613	26,780	55,528	54,547
INTERSEGMENT SALES	649	2,008	2,600	4,255
OPERATING PROFIT	$ 6,194	$ 6,458	$ 12,430	$ 13,180