Knoll (KNL) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 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	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		49,349,876
Restricted stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		871,610

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 5,833	$ 9,854
Customer receivables, net of allowance for doubtful accounts of $5,274 and $8,059, respectively	91,890	84,425
Inventories, net	149,026	142,072
Prepaid expenses	25,169	27,461
Other current assets	10,691	12,996
Total current assets	282,609	276,808
Property, plant, and equipment, net	209,566	197,084
Goodwill	142,158	141,391
Intangible assets, net	239,403	241,870
Other noncurrent assets	1,456	1,460
Total assets	875,192	858,613
Current liabilities:
Current maturities of long-term debt	10,000	10,000
Accounts payable	103,573	97,518
Income taxes payable	41	81
Other current liabilities	101,603	114,774
Total current liabilities	215,217	222,373
Long-term debt	208,882	208,383
Deferred income taxes	77,826	76,854
Post-employment benefits other than pensions	4,907	5,124
Pension liability	11,308	17,428
Other noncurrent liabilities	16,943	18,982
Total liabilities	535,083	549,144
Commitments and contingent liabilities
Equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 65,437,957 shares issued and 49,323,826 shares outstanding (including 854,110 non-voting restricted shares and net of 16,114,131 treasury shares) at September 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	52,466	55,148
Retained earnings	322,026	297,011
Accumulated other comprehensive loss	(35,141)	(43,403)
Total Knoll, Inc. stockholders' equity	339,844	309,247
Noncontrolling interests	265	222
Total equity	340,109	309,469
Total liabilities and equity	$ 875,192	$ 858,613

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 5,274	$ 8,059
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	65,437,957	64,741,648
Common stock, shares outstanding (n shares)	49,323,826	49,096,290
Non-vesting restricted shares (in shares)	854,110	993,962
Treasury shares (in shares)	16,114,131	15,645,358

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Sales	$ 291,256	$ 292,097	$ 816,770	$ 871,426
Cost of sales	184,646	179,296	514,528	536,797
Gross profit	106,610	112,801	302,242	334,629
Selling, general, and administrative expenses	76,485	77,598	224,703	234,103
Restructuring charges	0	0	2,150	0
Operating profit	30,125	35,203	75,389	100,526
Interest expense	1,991	1,296	5,521	4,157
Other expense, net	815	681	1,251	3,470
Income before income tax expense	27,319	33,226	68,617	92,899
Income tax expense	8,158	11,608	21,104	32,229
Net earnings	19,161	21,618	47,513	60,670
Net earnings attributable to noncontrolling interests	29	11	43	28
Net earnings	$ 19,132	$ 21,607	$ 47,470	$ 60,642
Net earnings per common share attributable to Knoll, Inc. stockholders:
Basic (in dollars per share)	$ 0.39	$ 0.45	$ 0.98	$ 1.26
Diluted (in dollars per share)	0.39	0.44	0.96	1.24
Dividends per share (in dollars per share)	$ 0.15	$ 0.15	$ 0.45	$ 0.45
Weighted-average number of common shares outstanding:
Basic (in shares)	48,468,480	48,053,836	48,406,659	48,000,386
Diluted (in shares)	48,979,182	48,845,553	49,167,856	48,765,607
Other comprehensive income (loss):
Pension and other post-employment liability adjustment, net of tax	$ (139)	$ (136)	$ (414)	$ (408)
Foreign currency translation adjustment	5,876	(1,781)	8,676	3,835
Total other comprehensive income (loss), net of tax	5,737	(1,917)	8,262	3,427
Total comprehensive income	24,898	19,701	55,775	64,097
Comprehensive income attributable to noncontrolling interests	29	11	43	28
Comprehensive income attributable to Knoll, Inc. stockholders	$ 24,869	$ 19,690	$ 55,732	$ 64,069

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Statement of Cash Flows [Abstract]
Net earnings	$ 47,513	$ 60,670
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation	16,137	13,977
Amortization expense (including deferred financing fees)	2,966	2,966
Inventory obsolescence	1,436	2,186
Loss on disposal of property, plant and equipment	83	4
Unrealized foreign currency losses	1,370	1,324
Stock-based compensation	7,314	7,246
Bad debt and customer claims	(1,403)	4,854
Changes in assets and liabilities:
Customer receivables	(5,789)	28,997
Inventories	(7,611)	(6,807)
Prepaid and other current assets	5,491	(1,548)
Accounts payable	9,502	(8,186)
Current and deferred income taxes	(1,388)	958
Other current liabilities	(7,250)	758
Other noncurrent assets and liabilities	(8,967)	(11,737)
Cash provided by operating activities	59,404	95,662
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures, net	(29,433)	(25,442)
Purchase of business, net of cash acquired	0	(8,389)
Cash used in investing activities	(29,433)	(33,831)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from credit facility	304,000	253,500
Repayment of credit facility	(304,000)	(280,500)
Payment of dividends	(23,000)	(21,946)
Proceeds from the issuance of common stock	576	2,847
Purchase of common stock for treasury	(10,570)	(4,503)
Contingent purchase price payment	(6,000)	(5,000)
Cash used in financing activities	(38,994)	(55,602)
Effect of exchange rate changes on cash and cash equivalents	5,002	766
Net decrease in cash and cash equivalents	(4,021)	6,995
Cash and cash equivalents at beginning of period	9,854	4,192
Cash and cash equivalents at end of period	$ 5,833	$ 11,187

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
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 with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. 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 considered necessary for a fair presentation. 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 annual report on Form 10-K for the year ended December 31, 2016 . 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 periods beginning after December 15, 2017 with early adoption permitted for the periods beginning after 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 consolidated 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 on January 1, 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 June 2016, the FASB issued ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss impairment methodology for measuring and recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. 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. The Company early adopted ASU 2017-04 in 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 Company does not believe this standard will have a material impact on its consolidated financial statements. 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. The Company does not believe there will be a material impact to the financial statements as a result of adopting this ASU.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Information regarding the Company's inventories is as follows (in thousands): September 30, 2017 December 31, 2016 Raw materials $ 50,603 $ 60,217 Work-in-process 7,280 7,186 Finished goods 91,143 74,669 $ 149,026 $ 142,072

PENSION AND OTHER POST-EMPLOYME

PENSION AND OTHER POST-EMPLOYMENT BENEFITS	9 Months Ended
	Sep. 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 September 30, Three Months Ended September 30, 2017 2016 2017 2016 Service cost $ 175 $ 468 $ — $ — Interest cost 2,390 2,416 43 49 Expected return on plan assets (4,615 ) (3,862 ) — — Amortization of prior service credit — — (371 ) (280 ) Recognized actuarial loss (gain) 154 123 1 (62 ) Net periodic benefit income $ (1,896 ) $ (855 ) $ (327 ) $ (293 ) Pension Benefits Other Benefits Nine Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Service cost $ 525 $ 1,404 $ — $ — Interest cost 7,170 7,248 129 147 Expected return on plan assets (13,845 ) (11,086 ) — — Amortization of prior service credit — — (1,113 ) (840 ) Recognized actuarial loss (gain) 462 369 3 (186 ) Net periodic benefit income $ (5,688 ) $ (2,065 ) $ (981 ) $ (879 )

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 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 approximate carrying value due to their short maturities and are classified as Level 1. 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 September 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 classified this as a Level 3 measurement and was 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 September 30, 2017 or December 31, 2016 .

OTHER CURRENT LIABILITIES OTHER

OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 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): September 30, 2017 December 31, 2016 Accrued employee compensation $ 37,992 $ 46,508 Customer deposits 33,082 31,216 Warranty 8,890 8,906 Contingent payout 1,100 7,100 Other 20,539 21,044 Other current liabilities $ 101,603 $ 114,774

INDEBTEDNESS

INDEBTEDNESS	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
INDEBTEDNESS	INDEBTEDNESS The Company's long-term debt is summarized as follows (in thousands): September 30, 2017 December 31, 2016 Balance of revolving credit facility $ 52,500 $ 45,000 Balance of term loan 167,500 175,000 Total long-term debt 220,000 220,000 Less: current maturities of long-term debt 10,000 10,000 Less: deferred financing fees, net 1,118 1,617 Long-term debt $ 208,882 $ 208,383

CONTINGENT LIABILITIES AND COMM

CONTINGENT LIABILITIES AND COMMITMENTS	9 Months Ended
	Sep. 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 4,577 Warranty claims paid (4,864 ) Foreign currency translation adjustment 271 Balance, September 30, 2017 $ 8,890 Warranty expense for the three and nine months ended September 30, 2017 was $1.7 million and $4.6 million , respectively. Warranty expense for the three and nine months ended September 30, 2016 was $1.7 million and $5.1 million , respectively.

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2017
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, 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 — — 47,470 — 47,470 43 47,513 Other comprehensive income — — — 8,262 8,262 — 8,262 Shares issued for consideration: Exercise of stock options (22,500 shares) — 472 — — 472 — 472 Shares issued under stock incentive plan (678,399 shares) 7 (3 ) — — 4 — 4 Shares issued to Board of Directors in lieu of cash (4,438 shares) — 100 — — 100 — 100 Stock-based compensation, net of forfeitures (57,911 shares) (1 ) 7,315 — — 7,314 — 7,314 Cash dividend ($0.45 per share) — — (22,455 ) — (22,455 ) — (22,455 ) Purchase of common stock (419,890 shares) (4 ) (10,566 ) — — (10,570 ) — (10,570 ) Balance at September 30, 2017 $ 493 $ 52,466 $ 322,026 $ (35,141 ) $ 339,844 $ 265 $ 340,109

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 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 nine months ended September 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 8,676 — 8,676 Amounts reclassified from accumulated other comprehensive loss — (414 ) (414 ) Net current-period other comprehensive income 8,676 (414 ) 8,262 Balance, as of September 30, 2017 $ (5,322 ) $ (29,819 ) $ (35,141 ) 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 Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Amortization of pension and other post-employment liability adjustments Prior service credits (1) $ (371 ) $ (280 ) $ (1,113 ) $ (840 ) Actuarial losses (1) 155 61 465 183 Total before tax (216 ) (219 ) (648 ) (657 ) Tax expense 77 83 234 249 Net of tax $ (139 ) $ (136 ) $ (414 ) $ (408 ) (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	9 Months Ended
	Sep. 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 vesting of 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net earnings attributable to Knoll, Inc. stockholders $ 19,132 $ 21,607 $ 47,470 $ 60,642 Denominator: Denominator for basic earnings per shares - weighted-average shares 48,468 48,054 48,407 48,000 Effect of dilutive securities: Potentially dilutive shares resulting from stock plans 511 792 761 766 Denominator for diluted earnings per share - weighted-average shares 48,979 48,846 49,168 48,766 Antidilutive equity awards not included in weighted-average common shares—diluted 34 8 15 43 Net earnings per common share attributable to Knoll, Inc. stockholders: Basic $ 0.39 $ 0.45 $ 0.98 $ 1.26 Diluted $ 0.39 $ 0.44 $ 0.96 $ 1.24

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 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 September 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 30.8% and 34.7% for the nine months ended September 30, 2017 and 2016 , respectively. The decrease in the Company's tax rate was related primarily to the reversal of a valuation allowance against certain foreign jurisdiction deferred tax assets recorded during the period ended September 30, 2017. The Company believes it will have sufficient future taxable income to realize its net operating loss carryforwards in this foreign jurisdiction. The decrease in the tax rate was also related to an increase in tax benefits related to the vesting of equity awards during the nine months ending September 30, 2017. In addition, the effective tax rate was impacted 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 both September 30, 2017 and December 31, 2016 , the Company had unrecognized tax benefits of approximately $0.9 million . These unrecognized tax benefit amounts would affect the effective tax rate if recognized. As of September 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 through 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	9 Months Ended
	Sep. 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 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 reporting segment results. Prior year amounts have been recast to conform to the current presentation (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 SALES Office $ 181,168 $ 185,764 $ 484,042 $ 550,390 Studio 83,186 79,829 250,298 239,985 Coverings 26,902 26,504 82,430 81,051 Knoll, Inc. $ 291,256 $ 292,097 $ 816,770 $ 871,426 INTERSEGMENT SALES (1) Office $ 332 $ 466 $ 1,056 $ 1,244 Studio 1,429 1,228 4,021 4,611 Coverings 1,401 2,099 4,000 4,869 Knoll, Inc. $ 3,162 $ 3,793 $ 9,077 $ 10,724 OPERATING PROFIT Office (2) $ 15,546 $ 20,390 $ 28,718 $ 56,015 Studio 12,370 13,372 38,928 39,482 Coverings 6,252 6,295 18,682 19,476 Corporate (4,043 ) (4,854 ) (10,939 ) (14,447 ) Knoll, Inc. (3) $ 30,125 $ 35,203 $ 75,389 $ 100,526 _______________________________________________________________________________ (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 nine months ended September 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)	9 Months Ended
	Sep. 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 with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. 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 considered necessary for a fair presentation. 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 annual report on Form 10-K for the year ended December 31, 2016 .
New Accounting Pronouncements	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 periods beginning after December 15, 2017 with early adoption permitted for the periods beginning after 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 consolidated 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 on January 1, 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 June 2016, the FASB issued ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss impairment methodology for measuring and recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. 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. The Company early adopted ASU 2017-04 in 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 Company does not believe this standard will have a material impact on its consolidated financial statements. 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. The Company does not believe there will be a material impact to the financial statements as a result of adopting this ASU.

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	Information regarding the Company's inventories is as follows (in thousands): September 30, 2017 December 31, 2016 Raw materials $ 50,603 $ 60,217 Work-in-process 7,280 7,186 Finished goods 91,143 74,669 $ 149,026 $ 142,072

PENSION AND OTHER POST-EMPLOY20

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Tables)	9 Months Ended
	Sep. 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 September 30, Three Months Ended September 30, 2017 2016 2017 2016 Service cost $ 175 $ 468 $ — $ — Interest cost 2,390 2,416 43 49 Expected return on plan assets (4,615 ) (3,862 ) — — Amortization of prior service credit — — (371 ) (280 ) Recognized actuarial loss (gain) 154 123 1 (62 ) Net periodic benefit income $ (1,896 ) $ (855 ) $ (327 ) $ (293 ) Pension Benefits Other Benefits Nine Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Service cost $ 525 $ 1,404 $ — $ — Interest cost 7,170 7,248 129 147 Expected return on plan assets (13,845 ) (11,086 ) — — Amortization of prior service credit — — (1,113 ) (840 ) Recognized actuarial loss (gain) 462 369 3 (186 ) Net periodic benefit income $ (5,688 ) $ (2,065 ) $ (981 ) $ (879 )

FAIR VALUE OF FINANCIAL INSTR21

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 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 September 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)	9 Months Ended
	Sep. 30, 2017
Other Liabilities Disclosure [Abstract]
Schedule of other current liabilities	Information regarding the Company's other current liabilities is as follows (in thousands): September 30, 2017 December 31, 2016 Accrued employee compensation $ 37,992 $ 46,508 Customer deposits 33,082 31,216 Warranty 8,890 8,906 Contingent payout 1,100 7,100 Other 20,539 21,044 Other current liabilities $ 101,603 $ 114,774

INDEBTEDNESS (Tables)

INDEBTEDNESS (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of long-term debt	The Company's long-term debt is summarized as follows (in thousands): September 30, 2017 December 31, 2016 Balance of revolving credit facility $ 52,500 $ 45,000 Balance of term loan 167,500 175,000 Total long-term debt 220,000 220,000 Less: current maturities of long-term debt 10,000 10,000 Less: deferred financing fees, net 1,118 1,617 Long-term debt $ 208,882 $ 208,383

CONTINGENT LIABILITIES AND CO24

CONTINGENT LIABILITIES AND COMMITMENTS (Tables)	9 Months Ended
	Sep. 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 4,577 Warranty claims paid (4,864 ) Foreign currency translation adjustment 271 Balance, September 30, 2017 $ 8,890

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Sep. 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 nine months ended September 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 — — 47,470 — 47,470 43 47,513 Other comprehensive income — — — 8,262 8,262 — 8,262 Shares issued for consideration: Exercise of stock options (22,500 shares) — 472 — — 472 — 472 Shares issued under stock incentive plan (678,399 shares) 7 (3 ) — — 4 — 4 Shares issued to Board of Directors in lieu of cash (4,438 shares) — 100 — — 100 — 100 Stock-based compensation, net of forfeitures (57,911 shares) (1 ) 7,315 — — 7,314 — 7,314 Cash dividend ($0.45 per share) — — (22,455 ) — (22,455 ) — (22,455 ) Purchase of common stock (419,890 shares) (4 ) (10,566 ) — — (10,570 ) — (10,570 ) Balance at September 30, 2017 $ 493 $ 52,466 $ 322,026 $ (35,141 ) $ 339,844 $ 265 $ 340,109

ACCUMULATED OTHER COMPREHENSI26

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 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 nine months ended September 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 8,676 — 8,676 Amounts reclassified from accumulated other comprehensive loss — (414 ) (414 ) Net current-period other comprehensive income 8,676 (414 ) 8,262 Balance, as of September 30, 2017 $ (5,322 ) $ (29,819 ) $ (35,141 )
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 Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Amortization of pension and other post-employment liability adjustments Prior service credits (1) $ (371 ) $ (280 ) $ (1,113 ) $ (840 ) Actuarial losses (1) 155 61 465 183 Total before tax (216 ) (219 ) (648 ) (657 ) Tax expense 77 83 234 249 Net of tax $ (139 ) $ (136 ) $ (414 ) $ (408 ) (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)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net earnings attributable to Knoll, Inc. stockholders $ 19,132 $ 21,607 $ 47,470 $ 60,642 Denominator: Denominator for basic earnings per shares - weighted-average shares 48,468 48,054 48,407 48,000 Effect of dilutive securities: Potentially dilutive shares resulting from stock plans 511 792 761 766 Denominator for diluted earnings per share - weighted-average shares 48,979 48,846 49,168 48,766 Antidilutive equity awards not included in weighted-average common shares—diluted 34 8 15 43 Net earnings per common share attributable to Knoll, Inc. stockholders: Basic $ 0.39 $ 0.45 $ 0.98 $ 1.26 Diluted $ 0.39 $ 0.44 $ 0.96 $ 1.24

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 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 reporting segment results. Prior year amounts have been recast to conform to the current presentation (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 SALES Office $ 181,168 $ 185,764 $ 484,042 $ 550,390 Studio 83,186 79,829 250,298 239,985 Coverings 26,902 26,504 82,430 81,051 Knoll, Inc. $ 291,256 $ 292,097 $ 816,770 $ 871,426 INTERSEGMENT SALES (1) Office $ 332 $ 466 $ 1,056 $ 1,244 Studio 1,429 1,228 4,021 4,611 Coverings 1,401 2,099 4,000 4,869 Knoll, Inc. $ 3,162 $ 3,793 $ 9,077 $ 10,724 OPERATING PROFIT Office (2) $ 15,546 $ 20,390 $ 28,718 $ 56,015 Studio 12,370 13,372 38,928 39,482 Coverings 6,252 6,295 18,682 19,476 Corporate (4,043 ) (4,854 ) (10,939 ) (14,447 ) Knoll, Inc. (3) $ 30,125 $ 35,203 $ 75,389 $ 100,526 _______________________________________________________________________________ (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 nine months ended September 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	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 50,603	$ 60,217
Work-in-process	7,280	7,186
Finished goods	91,143	74,669
Inventories, net	$ 149,026	$ 142,072

PENSION AND OTHER POST-EMPLOY30

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pension Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
Service cost	$ 175	$ 468	$ 525	$ 1,404
Interest cost	2,390	2,416	7,170	7,248
Expected return on plan assets	(4,615)	(3,862)	(13,845)	(11,086)
Amortization of prior service credit	0	0	0	0
Recognized actuarial loss (gain)	154	123	462	369
Net periodic benefit income	(1,896)	(855)	(5,688)	(2,065)
Other Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
Service cost	0	0	0	0
Interest cost	43	49	129	147
Expected return on plan assets	0	0	0	0
Amortization of prior service credit	(371)	(280)	(1,113)	(840)
Recognized actuarial loss (gain)	1	(62)	3	(186)
Net periodic benefit income	$ (327)	$ (293)	$ (981)	$ (879)

FAIR VALUE OF FINANCIAL INSTR31

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Dec. 01, 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	$ 1,100

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Accrued employee compensation	$ 37,992	$ 46,508
Customer deposits	33,082	31,216
Warranty	8,890	8,906
Contingent payout	1,100	7,100
Other	20,539	21,044
Other current liabilities	$ 101,603	$ 114,774

INDEBTEDNESS (Details)

INDEBTEDNESS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Long-term debt
Long-term debt	$ 220,000	$ 220,000
Less: current maturities of long-term debt	10,000	10,000
Less: deferred financing fees, net	1,118	1,617
Long-term debt	208,882	208,383
Revolving credit facility
Long-term debt
Long-term debt	52,500	45,000
Term loan
Long-term debt
Long-term debt	$ 167,500	$ 175,000

CONTINGENT LIABILITIES AND CO34

CONTINGENT LIABILITIES AND COMMITMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Changes in warranty reserve
Balance, Beginning of Period			$ 8,906
Provision for warranty claims	$ 1,700	$ 1,700	4,577	$ 5,100
Warranty claims paid			(4,864)
Foreign currency translation adjustment			271
Balance, End of Period	$ 8,890		$ 8,890

EQUITY (Details)

EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ 309,469
Net earnings	$ 19,161	$ 21,618	47,513	$ 60,670
Other comprehensive income	5,737	$ (1,917)	8,262	$ 3,427
Exercise of stock options (22,500 shares)			472
Shares issued under stock incentive plan (678,399 shares)			4
Shares issued to Board of Directors in lieu of cash (4,438 shares)			100
Stock-based compensation, net of forfeitures (57,911 shares)			7,314
Cash dividend ($0.45 per share)			(22,455)
Purchase of common stock (419,890 shares)			(10,570)
Ending Balance	340,109		$ 340,109
Exercise of stock options (in shares)			22,500
Shares issued under stock incentive plan (676,850) (in shares)			678,399
Shares issued to Board of Directors in lieu of cash (in shares)			4,438
Cash dividend (in dollars per share)			$ 0.45
Purchase of common stock (in shares)			419,890
Total Knoll, Inc. Stockholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ 309,247
Net earnings			47,470
Other comprehensive income			8,262
Exercise of stock options (22,500 shares)			472
Shares issued under stock incentive plan (678,399 shares)			4
Shares issued to Board of Directors in lieu of cash (4,438 shares)			100
Stock-based compensation, net of forfeitures (57,911 shares)			7,314
Cash dividend ($0.45 per share)			(22,455)
Purchase of common stock (419,890 shares)			(10,570)
Ending Balance	339,844		339,844
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			491
Shares issued under stock incentive plan (678,399 shares)			7
Stock-based compensation, net of forfeitures (57,911 shares)			1
Purchase of common stock (419,890 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 (678,399 shares)			(3)
Shares issued to Board of Directors in lieu of cash (4,438 shares)			100
Stock-based compensation, net of forfeitures (57,911 shares)			7,315
Purchase of common stock (419,890 shares)			(10,566)
Ending Balance	52,466		52,466
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			297,011
Net earnings			47,470
Cash dividend ($0.45 per share)			(22,455)
Ending Balance	322,026		322,026
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			(43,403)
Other comprehensive income			8,262
Ending Balance	(35,141)		(35,141)
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			222
Net earnings			43
Ending Balance	$ 265		$ 265

ACCUMULATED OTHER COMPREHENSI36

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ (43,403)
Other comprehensive income before reclassifications	8,676
Amounts reclassified from accumulated other comprehensive loss	(414)
Net of tax	8,262
Ending Balance	(35,141)
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	8,676
Amounts reclassified from accumulated other comprehensive loss	0
Net of tax	8,676
Ending Balance	(5,322)
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 loss	(414)
Net of tax	(414)
Ending Balance	$ (29,819)

ACCUMULATED OTHER COMPREHENSI37

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax			$ (414)
Prior service credits
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	$ (371)	$ (280)	(1,113)	$ (840)
Actuarial losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	155	61	465	183
Accumulated defined benefit plans adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(216)	(219)	(648)	(657)
Tax expense	77	83	234	249
Net of tax	$ (139)	$ (136)	$ (414)	$ (408)

COMMON STOCK AND EARNINGS PER38

COMMON STOCK AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net earnings attributable to Knoll, Inc. stockholders	$ 19,132	$ 21,607	$ 47,470	$ 60,642
Weighted-average shares of common stock outstanding—basic (in shares)	48,468,480	48,053,836	48,406,659	48,000,386
Potentially dilutive shares resulting from stock plans (in shares)	511,000	792,000	761,000	766,000
Denominator for diluted earnings per share - weighted-average shares (in shares)	48,979,182	48,845,553	49,167,856	48,765,607
Antidilutive equity awards not included in weighted-average common shares—diluted (in shares)	34,000	8,000	15,000	43,000
Basic (in dollars per share)	$ 0.39	$ 0.45	$ 0.98	$ 1.26
Diluted (in dollars per share)	$ 0.39	$ 0.44	$ 0.96	$ 1.24

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	30.80%	34.70%
Unrecognized tax benefits, which would reduce the effective tax rate if recognized	$ 0.9		$ 0.9

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Financial information of segments
SALES	$ 291,256	$ 292,097	$ 816,770	$ 871,426
OPERATING PROFIT	30,125	35,203	75,389	100,526
Operating Segments
Financial information of segments
SALES	291,256	292,097	816,770	871,426
INTERSEGMENT SALES	3,162	3,793	9,077	10,724
Corporate
Financial information of segments
OPERATING PROFIT	(4,043)	(4,854)	(10,939)	(14,447)
Office | Operating Segments
Financial information of segments
SALES	181,168	185,764	484,042	550,390
INTERSEGMENT SALES	332	466	1,056	1,244
OPERATING PROFIT	15,546	20,390	28,718	56,015
Restructuring charges			2,200
Studio | Operating Segments
Financial information of segments
SALES	83,186	79,829	250,298	239,985
INTERSEGMENT SALES	1,429	1,228	4,021	4,611
OPERATING PROFIT	12,370	13,372	38,928	39,482
Coverings | Operating Segments
Financial information of segments
SALES	26,902	26,504	82,430	81,051
INTERSEGMENT SALES	1,401	2,099	4,000	4,869
OPERATING PROFIT	$ 6,252	$ 6,295	$ 18,682	$ 19,476