Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 09, 2016 | |
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 | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 49,061,283 | |
Restricted stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,050,497 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 5,348 | $ 4,192 |
Customer receivables, net of allowance for doubtful accounts of $8,196 and $7,919, respectively | 108,237 | 116,532 |
Inventories, net | 148,251 | 140,798 |
Deferred income taxes | 20,399 | 20,485 |
Prepaid and other current assets | 19,102 | 26,765 |
Total current assets | 301,337 | 308,772 |
Property, plant, and equipment, net | 175,533 | 172,142 |
Goodwill | 128,174 | 127,671 |
Intangible assets, net | 239,347 | 240,169 |
Other non-trade receivables | 2,126 | 2,254 |
Other noncurrent assets | 948 | 2,795 |
Total assets | 847,465 | 853,803 |
Current liabilities: | ||
Current maturities of long-term debt | 10,000 | 10,000 |
Accounts payable | 90,944 | 89,552 |
Income taxes payable | 160 | 1,580 |
Other current liabilities | 99,460 | 114,908 |
Total current liabilities | 200,564 | 216,040 |
Long-term debt | 209,884 | 209,718 |
Deferred income taxes | 77,875 | 75,959 |
Postretirement benefits other than pensions | 5,748 | 6,294 |
Pension liability | 62,936 | 63,441 |
Other current liabilities | 20,213 | 26,877 |
Total liabilities | $ 577,220 | $ 598,329 |
Commitments and contingent liabilities | ||
Equity: | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; 64,659,498 shares issued and 49,046,789 shares outstanding (including 1,071,285 non-voting restricted shares and net of 15,612,709 treasury shares) at March 31, 2016 and 64,603,344 shares issued and 48,822,013 shares outstanding (including 993,934 non-voting restricted shares and net of 15,781,331 treasury shares) at December 31, 2015 | $ 490 | $ 488 |
Additional paid-in capital | 47,938 | 47,165 |
Retained earnings | 254,745 | 244,947 |
Accumulated other comprehensive loss | (33,131) | (37,318) |
Total Knoll, Inc. stockholders' equity | 270,042 | 255,282 |
Noncontrolling interests | 203 | 192 |
Total equity | 270,245 | 255,474 |
Total liabilities and equity | $ 847,465 | $ 853,803 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable | $ 8,196 | $ 7,919 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 64,659,498 | 64,603,344 |
Common stock, shares outstanding | 49,046,789 | 48,822,013 |
Non-vesting restricted shares | 1,071,285 | 993,934 |
Treasury Stock, Shares | 15,612,709 | 15,781,331 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Sales | $ 284,629 | $ 266,498 |
Cost of sales | 176,865 | 171,189 |
Gross profit | 107,764 | 95,309 |
Selling, general, and administrative expenses | 75,915 | 73,010 |
Operating profit | 31,849 | 22,299 |
Interest expense | 1,554 | 1,885 |
Other expense (income), net | 2,604 | (7,157) |
Income before income tax expense | 27,691 | 27,571 |
Income tax expense | 10,421 | 10,136 |
Net earnings | 17,270 | 17,435 |
Net earnings (loss) attributable to noncontrolling interests | 11 | (8) |
Net earnings attributable to Knoll, Inc. stockholders | $ 17,259 | $ 17,443 |
Net earnings per common share attributable to Knoll, Inc. stockholders: | ||
Basic (in dollars per share) | $ 0.36 | $ 0.37 |
Diluted (in dollars per share) | 0.36 | 0.36 |
Dividends per share (in dollars per share) | $ 0.15 | $ 0.12 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 47,904,593 | 47,647,961 |
Diluted (in shares) | 48,570,895 | 48,353,047 |
Other comprehensive income (loss): | ||
Pension and other postretirement liability adjustment, net of tax | $ 138 | $ 1,382 |
Foreign currency translation adjustment | 4,049 | (12,999) |
Total other comprehensive income (loss), net of tax | 4,187 | (11,617) |
Comprehensive income attributable to Knoll, Inc. stockholders | 21,457 | 5,818 |
Comprehensive income (loss) attributable to noncontrolling interests | 11 | (8) |
Comprehensive income attributable to Knoll, Inc. stockholders | $ 21,446 | $ 5,826 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITES | ||
Net earnings | $ 17,270 | $ 17,435 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation | 4,560 | 4,303 |
Amortization expense (including deferred financing fees) | 989 | 962 |
Inventory obsolescence | 647 | 397 |
Loss on disposal of property, plant and equipment | 7 | 11 |
Unrealized foreign currency losses (gains) | 1,262 | (7,271) |
Stock-based compensation | 2,138 | 1,385 |
Bad debt and customer credits | 91 | 476 |
Changes in assets and liabilities: | ||
Customer receivables | 8,570 | (9,030) |
Inventories | (7,348) | (6,104) |
Accounts payable | 1,299 | (29,318) |
Current income taxes | 578 | 3,337 |
Other current assets | 7,749 | (1,229) |
Other current liabilities | (16,393) | (5,334) |
Other noncurrent assets and liabilities | (304) | 3,925 |
Cash provided by (used in) operating activities | 21,115 | (26,055) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures, net | (7,017) | (4,864) |
Cash used in investing activities | (7,017) | (4,864) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from credit facility | 99,500 | 101,000 |
Repayment of credit facility | (99,500) | (59,000) |
Payment of dividends | (7,196) | (5,729) |
Proceeds from the issuance of common stock | 399 | 3,826 |
Purchase of common stock for treasury | (1,902) | (6,067) |
Contingent purchase price payment | (5,000) | (5,000) |
Tax benefit from the exercise of stock options and vesting of equity awards | 141 | 658 |
Cash (used in) provided by financing activities | (13,558) | 29,688 |
Effect of exchange rate changes on cash and cash equivalents | 616 | (3,115) |
Net increase (decrease) in cash and cash equivalents | 1,156 | (4,346) |
Cash and cash equivalents at beginning of period | 4,192 | 19,021 |
Supplemental disclosure of cash flow information: | $ 5,348 | $ 14,675 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Knoll, Inc. (the “Company”) have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet of the Company, as of December 31, 2015 , 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, 2015 . New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition , and most industry-specific guidance throughout the Accounting Standards Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods therein. The guidance permits the use of either a full retrospective or modified retrospective transition method. The Company has not yet selected a transition method and is currently evaluating the impact of the amended guidance on the consolidated financial position, results of operations and related disclosures. In April 2015, the FASB issued ASU No. 2015-03 - Interest—Imputation of Interest (Subtopic 835-30) . This ASU simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of the debt liability, which is consistent with the treatment of debt discounts. The new guidance should be applied on a retrospective basis, and upon transition, an entity is required to comply with the applicable disclosures necessary for a change in accounting principle. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The Company reclassified deferred financing fees of $2.1 million and $2.3 million from other noncurrent assets to long-term debt as of March 31, 2016 and December 31, 2015, respectively. In July 2015, the FASB issued ASU 2015-11 - Inventory (Topic 330) , which amends existing guidance for measuring inventories. This amendment will require the Company to measure inventories recorded using the first-in, first-out method at the lower of cost and net realizable value. This amendment does not change the methodology for measuring inventories recorded using the last-in, first-out method. This amendment will be effective for the Company on January 1, 2017. Early adoption is permitted. The Company does not expect the impact of the adoption of this ASU to have a material impact on its consolidated financial position, results of operations and cash flows. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The amendments in this ASU require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does not expect the impact of the adoption of this ASU to have a material impact on its consolidated financial position. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends Accounting Standards Codification Topic 718, Compensation – Stock Compensation . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Information regarding the Company's inventories is as follows (in thousands): March 31, 2016 December 31, 2015 Raw materials $ 61,857 $ 58,412 Work-in-process 7,885 7,470 Finished goods 78,509 74,916 $ 148,251 $ 140,798 Inventory reserves for obsolescence and other estimated losses were $ 8.8 million and $8.3 million at March 31, 2016 and December 31, 2015 , respectively, and have been included in the amounts above. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and 2015 were based on the estimated effective tax rates applicable for the full years ending December 31, 2016 and 2015 , which includes items specifically related to the interim periods. The Company’s effective tax rate was 37.6% and 36.8% for the three months ended March 31, 2016 and 2015 , respectively. The change in the Company's effective tax rate for the three months ended March 31, 2016 was primarily a result of the geographic mix of pretax income and the varying effective tax rates in the countries and states in which the Company operates. As of March 31, 2016 and December 31, 2015 , the Company had unrecognized tax benefits of approximately $4.1 million and $4.4 million , respectively. These unrecognized tax benefit amounts would affect the effective tax rate if recognized. As of March 31, 2016 , the Company is subject to U.S. Federal income tax examinations for the tax years 2012 through 2015, and to non-U.S. income tax examinations for the tax years 2009 through 2015. In addition, the Company is subject to state and local income tax examinations for the tax years 2011 through 2015. |
CONTINGENT LIABILITIES AND COMM
CONTINGENT LIABILITIES AND COMMITMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, 2015 $ 8,513 Provision for warranty claims 1,576 Warranty claims paid (1,508 ) Foreign currency translation adjustment 24 Balance, March 31, 2016 $ 8,605 Warranty expense for the three months ended March 31, 2016 and 2015 was $1.6 million and $1.7 million , respectively. |
INDEBTEDNESS
INDEBTEDNESS | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS The Company's long-term debt is summarized as follows (in thousands): March 31, 2016 December 31, 2015 Balance of revolving credit facility $ 39,500 $ 37,000 Balance of term loan 182,500 185,000 Total long-term debt 222,000 222,000 Less: Current maturities of long-term debt 10,000 10,000 Less: Deferred financing fees, net 2,116 2,282 Long-term debt $ 209,884 $ 209,718 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 (in thousands): Foreign Pension and Total Balance, as of December 31, 2015 $ (14,486 ) $ (22,832 ) $ (37,318 ) Other comprehensive income before reclassifications 4,049 — 4,049 Amounts reclassified from accumulated other comprehensive income — 138 138 Net current-period other comprehensive income 4,049 138 4,187 Balance, as of March 31, 2016 $ (10,437 ) $ (22,694 ) $ (33,131 ) 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 March 31, 2016 March 31, 2015 Amortization of pension and other post-retirement liability adjustments Prior service credits (1) $ 280 $ 72 Actuarial losses (1) (61 ) (2,258 ) Total before tax 219 (2,186 ) Tax (expense) benefit (81 ) 804 Net of tax $ 138 $ (1,382 ) (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension costs. See Note 7 for additional information. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2016 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS The following table sets forth the components of the net periodic benefit cost for the Company's pension and other postretirement benefit plans (in thousands): Pension Benefits Other Benefits Three Months Ended March 31, Three Months Ended March 31, 2016 2015 2016 2015 Service cost $ 468 $ 1,887 $ — $ 4 Interest cost 2,416 3,114 49 80 Expected return on plan assets (3,612 ) (3,655 ) — — Amortization of prior service credit — — (280 ) (72 ) Recognized actuarial loss (gain) 123 2,166 (62 ) 92 Net periodic benefit (income) cost $ (605 ) $ 3,512 $ (293 ) $ 104 For the three months ended March 31, 2016 , $0.3 million of pension income was recognized in cost of sales and $0.3 million was recognized in selling, general, and administrative expenses. For the three months ended March 31, 2015 , $2.0 million of pension expense was incurred in cost of sales and $1.5 million was incurred in selling, general, and administrative expenses. |
COMMON STOCK AND EARNINGS PER S
COMMON STOCK AND EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
COMMON STOCK AND EARNINGS PER SHARE | COMMON STOCK AND 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 March 31, 2016 2015 Numerator: Net earnings attributable to Knoll, Inc. stockholders $ 17,259 $ 17,443 Denominator: Denominator for basic earnings per shares - weighted-average shares 47,905 47,648 Effect of dilutive securities: Potentially dilutive shares resulting from stock plans 666 705 Denominator for diluted earnings per share - weighted-average shares 48,571 48,353 Antidilutive equity awards not included in weighted-average common shares—diluted — — Net earnings per common share attributable to Knoll, Inc. stockholders: Basic $ 0.36 $ 0.37 Diluted $ 0.36 $ 0.36 |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
EQUITY | EQUITY The following table shows the change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests during the three months ended March 31, 2016 (in thousands): Common Additional Retained Accumulated Total Noncontrolling Interests Total Equity Balance at December 31, 2015 $ 488 $ 47,165 $ 244,947 $ (37,318 ) $ 255,282 $ 192 $ 255,474 Net earnings — — 17,259 — 17,259 11 17,270 Other comprehensive income — — — 4,187 4,187 — 4,187 Shares issued for consideration: Exercise of stock options (33,583 shares) — 374 — — 374 — 374 Income tax effect from the exercise of stock options and vesting of equity awards — 141 — — 141 — 141 Shares issued under stock incentive plan (297,632) 3 (3 ) — — — — — Shares issued to Board of Directors in lieu of cash (1,154 shares) — 25 — — 25 — 25 Stock-based compensation — 2,138 — — 2,138 — 2,138 Cash dividend ($0.15 per share) — — (7,461 ) — (7,461 ) — (7,461 ) Purchase of common stock (104,261 shares) (1 ) (1,902 ) — — (1,903 ) — (1,903 ) Balance at March 31, 2016 $ 490 $ 47,938 $ 254,745 $ (33,131 ) $ 270,042 $ 203 $ 270,245 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2016 | |
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, accounts receivable, and accounts payable approximate carrying value due to their short maturities. The fair value of the Company’s long-term debt approximates its carrying value, as it is variable rate debt and the terms are comparable to market terms as of the balance sheet dates, and 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 March 31, 2016 Fair Value as of December 31, 2015 Liabilities: Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Contingent purchase price payment $ — $ — $ 6,000 $ 6,000 $ — $ — $ 11,000 $ 11,000 Pursuant to the agreement governing the acquisition of HOLLY HUNT®, the Company may be required to make annual contingent purchase price payments. The payouts are based upon HOLLY HUNT® reaching an annual net sales target, for each year through 2016, and are 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 $5.0 million of the remaining $11.0 million contingent purchase price in the three months ended March 31, 2016, as a result of HOLLY HUNT® achieving the 2015 net sales projections. Excluding the initial recognition of the liability for the contingent purchase price payments and payments made to reduce the liability, any changes in the fair value would be included within selling, general and administrative expenses. There were no additional assets and/or liabilities recorded at fair value on a recurring basis as of March 31, 2016 or December 31, 2015 . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The following information below categorizes certain financial information into the Company's reportable segments for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 SALES Office $ 185,356 $ 167,723 Studio 71,506 70,194 Coverings 27,767 28,581 Knoll, Inc. $ 284,629 $ 266,498 INTERSEGMENT SALES (1) Office $ 581 $ 486 Studio 1,305 1,380 Coverings 2,247 1,925 Knoll, Inc. $ 4,133 $ 3,791 OPERATING PROFIT Office $ 16,596 $ 7,246 Studio 9,043 8,952 Coverings 6,210 6,101 Knoll, Inc. (2) $ 31,849 $ 22,299 _______________________________________________________________________________ (1) Intersegment sales are presented on a cost-plus basis which takes into consideration the effect of transfer prices between legal entities. (2) The Company does not allocate interest expense or other (income) expense, net to the reportable segments. |
BASIS OF PRESENTATION BASIS OF
BASIS OF PRESENTATION BASIS OF PRESENTATION (Policies) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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, 2015 , 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, 2015 . | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition , and most industry-specific guidance throughout the Accounting Standards Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods therein. The guidance permits the use of either a full retrospective or modified retrospective transition method. The Company has not yet selected a transition method and is currently evaluating the impact of the amended guidance on the consolidated financial position, results of operations and related disclosures. In April 2015, the FASB issued ASU No. 2015-03 - Interest—Imputation of Interest (Subtopic 835-30) . This ASU simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of the debt liability, which is consistent with the treatment of debt discounts. The new guidance should be applied on a retrospective basis, and upon transition, an entity is required to comply with the applicable disclosures necessary for a change in accounting principle. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The Company reclassified deferred financing fees of $2.1 million and $2.3 million from other noncurrent assets to long-term debt as of March 31, 2016 and December 31, 2015, respectively. In July 2015, the FASB issued ASU 2015-11 - Inventory (Topic 330) , which amends existing guidance for measuring inventories. This amendment will require the Company to measure inventories recorded using the first-in, first-out method at the lower of cost and net realizable value. This amendment does not change the methodology for measuring inventories recorded using the last-in, first-out method. This amendment will be effective for the Company on January 1, 2017. Early adoption is permitted. The Company does not expect the impact of the adoption of this ASU to have a material impact on its consolidated financial position, results of operations and cash flows. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The amendments in this ASU require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does not expect the impact of the adoption of this ASU to have a material impact on its consolidated financial position. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends Accounting Standards Codification Topic 718, Compensation – Stock Compensation . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Information regarding the Company's inventories is as follows (in thousands): March 31, 2016 December 31, 2015 Raw materials $ 61,857 $ 58,412 Work-in-process 7,885 7,470 Finished goods 78,509 74,916 $ 148,251 $ 140,798 |
CONTINGENT LIABILITIES AND CO19
CONTINGENT LIABILITIES AND COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 $ 8,513 Provision for warranty claims 1,576 Warranty claims paid (1,508 ) Foreign currency translation adjustment 24 Balance, March 31, 2016 $ 8,605 |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The Company's long-term debt is summarized as follows (in thousands): March 31, 2016 December 31, 2015 Balance of revolving credit facility $ 39,500 $ 37,000 Balance of term loan 182,500 185,000 Total long-term debt 222,000 222,000 Less: Current maturities of long-term debt 10,000 10,000 Less: Deferred financing fees, net 2,116 2,282 Long-term debt $ 209,884 $ 209,718 |
ACCUMULATED OTHER COMPREHENSI21
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 (in thousands): Foreign Pension and Total Balance, as of December 31, 2015 $ (14,486 ) $ (22,832 ) $ (37,318 ) Other comprehensive income before reclassifications 4,049 — 4,049 Amounts reclassified from accumulated other comprehensive income — 138 138 Net current-period other comprehensive income 4,049 138 4,187 Balance, as of March 31, 2016 $ (10,437 ) $ (22,694 ) $ (33,131 ) |
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 March 31, 2016 March 31, 2015 Amortization of pension and other post-retirement liability adjustments Prior service credits (1) $ 280 $ 72 Actuarial losses (1) (61 ) (2,258 ) Total before tax 219 (2,186 ) Tax (expense) benefit (81 ) 804 Net of tax $ 138 $ (1,382 ) (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension costs. See Note 7 for additional information. |
PENSION AND OTHER POSTRETIREM22
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Schedule of components of the net periodic benefit cost | The following table sets forth the components of the net periodic benefit cost for the Company's pension and other postretirement benefit plans (in thousands): Pension Benefits Other Benefits Three Months Ended March 31, Three Months Ended March 31, 2016 2015 2016 2015 Service cost $ 468 $ 1,887 $ — $ 4 Interest cost 2,416 3,114 49 80 Expected return on plan assets (3,612 ) (3,655 ) — — Amortization of prior service credit — — (280 ) (72 ) Recognized actuarial loss (gain) 123 2,166 (62 ) 92 Net periodic benefit (income) cost $ (605 ) $ 3,512 $ (293 ) $ 104 |
COMMON STOCK AND EARNINGS PER23
COMMON STOCK AND EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Numerator: Net earnings attributable to Knoll, Inc. stockholders $ 17,259 $ 17,443 Denominator: Denominator for basic earnings per shares - weighted-average shares 47,905 47,648 Effect of dilutive securities: Potentially dilutive shares resulting from stock plans 666 705 Denominator for diluted earnings per share - weighted-average shares 48,571 48,353 Antidilutive equity awards not included in weighted-average common shares—diluted — — Net earnings per common share attributable to Knoll, Inc. stockholders: Basic $ 0.36 $ 0.37 Diluted $ 0.36 $ 0.36 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following table shows the change in equity attributable to Knoll, Inc. stockholders and noncontrolling interests during the three months ended March 31, 2016 (in thousands): Common Additional Retained Accumulated Total Noncontrolling Interests Total Equity Balance at December 31, 2015 $ 488 $ 47,165 $ 244,947 $ (37,318 ) $ 255,282 $ 192 $ 255,474 Net earnings — — 17,259 — 17,259 11 17,270 Other comprehensive income — — — 4,187 4,187 — 4,187 Shares issued for consideration: Exercise of stock options (33,583 shares) — 374 — — 374 — 374 Income tax effect from the exercise of stock options and vesting of equity awards — 141 — — 141 — 141 Shares issued under stock incentive plan (297,632) 3 (3 ) — — — — — Shares issued to Board of Directors in lieu of cash (1,154 shares) — 25 — — 25 — 25 Stock-based compensation — 2,138 — — 2,138 — 2,138 Cash dividend ($0.15 per share) — — (7,461 ) — (7,461 ) — (7,461 ) Purchase of common stock (104,261 shares) (1 ) (1,902 ) — — (1,903 ) — (1,903 ) Balance at March 31, 2016 $ 490 $ 47,938 $ 254,745 $ (33,131 ) $ 270,042 $ 203 $ 270,245 |
FAIR VALUE OF FINANCIAL INSTR25
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Fair Value as of December 31, 2015 Liabilities: Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Contingent purchase price payment $ — $ — $ 6,000 $ 6,000 $ — $ — $ 11,000 $ 11,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of certain financial information related to segments | The following information below categorizes certain financial information into the Company's reportable segments for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 SALES Office $ 185,356 $ 167,723 Studio 71,506 70,194 Coverings 27,767 28,581 Knoll, Inc. $ 284,629 $ 266,498 INTERSEGMENT SALES (1) Office $ 581 $ 486 Studio 1,305 1,380 Coverings 2,247 1,925 Knoll, Inc. $ 4,133 $ 3,791 OPERATING PROFIT Office $ 16,596 $ 7,246 Studio 9,043 8,952 Coverings 6,210 6,101 Knoll, Inc. (2) $ 31,849 $ 22,299 _______________________________________________________________________________ (1) Intersegment sales are presented on a cost-plus basis which takes into consideration the effect of transfer prices between legal entities. (2) The Company does not allocate interest expense or other (income) expense, net to the reportable segments. |
BASIS OF PRESENTATION BASIS O27
BASIS OF PRESENTATION BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Less: Deferred financing fees, net | $ 2,116 | $ 2,282 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 61,857 | $ 58,412 |
Work-in-process | 7,885 | 7,470 |
Finished goods | 78,509 | 74,916 |
Inventories, net | 148,251 | 140,798 |
Inventory reserves for obsolescence and other estimated losses | $ 8,800 | $ 8,300 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | 37.60% | 36.80% | |
Unrecognized tax benefits, which would reduce the effective tax rate if recognized | $ 4.1 | $ 4.4 |
CONTINGENT LIABILITIES AND CO30
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Product Warranty Expense | $ 1,576 | $ 1,700 |
Changes in warranty reserve | ||
Balance, December 31, 2015 | 8,513 | |
Warranty claims paid | (1,508) | |
Foreign currency translation adjustment | 24 | |
Balance, March 31, 2016 | $ 8,605 |
INDEBTEDNESS (Details)
INDEBTEDNESS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Long-term debt | ||
Long-term debt | $ 222,000 | $ 222,000 |
Less: Current maturities of long-term debt | 10,000 | 10,000 |
Less: Deferred financing fees, net | 2,116 | 2,282 |
Long-term debt | 209,884 | 209,718 |
Balance of revolving credit facility | ||
Long-term debt | ||
Long-term debt | 39,500 | 37,000 |
Term Loan | ||
Long-term debt | ||
Long-term debt | $ 182,500 | $ 185,000 |
ACCUMULATED OTHER COMPREHENSI32
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance | $ (37,318) |
Other comprehensive income before reclassifications | 4,049 |
Amounts reclassified from accumulated other comprehensive income | 138 |
Net current-period other comprehensive income | 4,187 |
Balance | (33,131) |
Foreign Currency Translation Adjustment | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance | (14,486) |
Other comprehensive income before reclassifications | 4,049 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current-period other comprehensive income | 4,049 |
Balance | (10,437) |
Pension and Other Post-Retirement Liability Adjustment | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance | (22,832) |
Other comprehensive income before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income | 138 |
Net current-period other comprehensive income | 138 |
Balance | $ (22,694) |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax (expense) benefit | $ (10,421) | $ (10,136) |
Net of tax | 17,270 | |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Prior service credits | 280 | 72 |
Actuarial losses | (61) | (2,258) |
Total before tax | 219 | (2,186) |
Tax (expense) benefit | (81) | 804 |
Net of tax | $ 138 | $ (1,382) |
PENSION AND OTHER POSTRETIREM34
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Benefits | ||
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | ||
Service cost | $ 468 | $ 1,887 |
Interest cost | 2,416 | 3,114 |
Expected return on plan assets | (3,612) | (3,655) |
Amortization of prior service credit | 0 | 0 |
Recognized actuarial loss (gain) | 123 | 2,166 |
Net periodic benefit (income) cost | (605) | 3,512 |
Pension Benefits | Cost of sales | ||
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | ||
Net periodic benefit (income) cost | 300 | 2,000 |
Pension Benefits | Selling, General and Administrative Expenses | ||
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | ||
Net periodic benefit (income) cost | 300 | 1,500 |
Other Benefits | ||
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | ||
Service cost | 0 | 4 |
Interest cost | 49 | 80 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service credit | (280) | (72) |
Recognized actuarial loss (gain) | (62) | 92 |
Net periodic benefit (income) cost | $ (293) | $ 104 |
COMMON STOCK AND EARNINGS PER35
COMMON STOCK AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net earnings attributable to Knoll, Inc. stockholders | $ 17,259 | $ 17,443 |
Weighted-average shares of common stock outstanding—basic (in shares) | 47,904,593 | 47,647,961 |
Potentially dilutive shares resulting from stock plans (in shares) | 666,000 | 705,000 |
Weighted-average common shares—diluted (in shares) | 48,570,895 | 48,353,047 |
Antidilutive equity awards not included in weighted-average common shares—diluted (in shares) | 0 | 0 |
Basic (in dollars per share) | $ 0.36 | $ 0.37 |
Diluted (in dollars per share) | $ 0.36 | $ 0.36 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | $ 255,474 | |
Net earnings | 17,270 | |
Other comprehensive income | 4,187 | $ (11,617) |
Exercise of stock options (33,583 shares) | 374 | |
Income tax effect from the exercise of stock options and vesting of equity awards | 141 | |
Shares issued under stock incentive plan | 0 | |
Shares issued to Board of Directors in lieu of cash (1,154 shares) | 25 | |
Stock-based compensation (117,500 shares) | 2,138 | |
Cash dividend ($0.15 per share) | (7,461) | |
Purchase of common stock (12,569 shares) | (1,903) | |
Balance | $ 270,245 | |
Exercise of stock options (in shares) | 33,583 | |
Shares issued to Board of Directors in lieu of cash (in shares) | 1,154 | |
Stock-based compensation (in shares) | 0 | |
Cash dividend (in dollars per share) | $ 0.15 | |
Purchase of common stock (in shares) | 104,261 | |
Sales to clients attributed to the geographic areas based on the origin of sale | ||
Sales | $ 284,629 | $ 266,498 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 488 | |
Shares issued under stock incentive plan | 3 | |
Purchase of common stock (12,569 shares) | (1) | |
Balance | 490 | |
Additional Paid-In Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 47,165 | |
Exercise of stock options (33,583 shares) | 374 | |
Income tax effect from the exercise of stock options and vesting of equity awards | 141 | |
Shares issued under stock incentive plan | (3) | |
Shares issued to Board of Directors in lieu of cash (1,154 shares) | 25 | |
Stock-based compensation (117,500 shares) | 2,138 | |
Purchase of common stock (12,569 shares) | (1,902) | |
Balance | 47,938 | |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 244,947 | |
Net earnings | 17,259 | |
Cash dividend ($0.15 per share) | (7,461) | |
Balance | 254,745 | |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | (37,318) | |
Other comprehensive income | 4,187 | |
Balance | (33,131) | |
Total Knoll, Inc. Stockholders' Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 255,282 | |
Net earnings | 17,259 | |
Other comprehensive income | 4,187 | |
Exercise of stock options (33,583 shares) | 374 | |
Income tax effect from the exercise of stock options and vesting of equity awards | 141 | |
Shares issued under stock incentive plan | 0 | |
Shares issued to Board of Directors in lieu of cash (1,154 shares) | 25 | |
Stock-based compensation (117,500 shares) | 2,138 | |
Cash dividend ($0.15 per share) | (7,461) | |
Purchase of common stock (12,569 shares) | (1,903) | |
Balance | 270,042 | |
Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 192 | |
Net earnings | 11 | |
Other comprehensive income | 0 | |
Exercise of stock options (33,583 shares) | 0 | |
Income tax effect from the exercise of stock options and vesting of equity awards | 0 | |
Shares issued under stock incentive plan | 0 | |
Shares issued to Board of Directors in lieu of cash (1,154 shares) | 0 | |
Stock-based compensation (117,500 shares) | 0 | |
Cash dividend ($0.15 per share) | 0 | |
Purchase of common stock (12,569 shares) | 0 | |
Balance | $ 203 |
FAIR VALUE OF FINANCIAL INSTR37
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other Payments to Acquire Businesses | $ 5,000 | $ 5,000 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent Consideration, Fair Value Disclosure | 6,000 | $ 11,000 | $ 16,000 | |
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent Consideration, Fair Value Disclosure | $ 6,000 | $ 11,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Financial information of segments | ||
NET SALES | $ 284,629 | $ 266,498 |
OPERATING PROFIT | 31,849 | 22,299 |
Operating Segments | ||
Financial information of segments | ||
NET SALES | 284,629 | 266,498 |
INTERSEGMENT SALES | 4,133 | 3,791 |
Office | Operating Segments | ||
Financial information of segments | ||
NET SALES | 185,356 | 167,723 |
INTERSEGMENT SALES | 581 | 486 |
OPERATING PROFIT | 16,596 | 7,246 |
Studio | Operating Segments | ||
Financial information of segments | ||
NET SALES | 71,506 | 70,194 |
INTERSEGMENT SALES | 1,305 | 1,380 |
OPERATING PROFIT | 9,043 | 8,952 |
Coverings | Operating Segments | ||
Financial information of segments | ||
NET SALES | 27,767 | 28,581 |
INTERSEGMENT SALES | 2,247 | 1,925 |
OPERATING PROFIT | $ 6,210 | $ 6,101 |