v3.7.0.1
BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
BUSINESS SEGMENTS
As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio®-only and the idling of our West facility in 2016, the chief operating decision maker separately evaluates our potash and Trio® operations. Accordingly, we reevaluated our segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio®. The reportable segments are determined by management based on a number of factors including the types of potassium based fertilizer produced, production processes, markets served and the financial information available for our chief operating decision maker. We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative expenses, among others, to the respective segments. Information for each segment is provided in the tables that follow (in thousands).
Three Months Ended March 31, 2017
 
Potash
 
Trio®
 
Corporate
 
Consolidated
Sales
 
$
27,220

 
$
21,112

 
$
—

 
$
48,332

Less: Freight costs
 
2,959

 
5,762

 
—

 
8,721

         Warehousing and handling costs
 
1,512

 
1,258

 
—

 
2,770

         Cost of goods sold
 
20,421

 
15,452

 
—

 
35,873

          Lower-of-cost-or-market inventory
adjustments
 
—

 
3,824

 
—

 
3,824

Gross Margin (Deficit)
 
$
2,328

 
$
(5,184
)
 
$
—

 
$
(2,856
)
Depreciation, depletion and amortization incurred1
 
$
7,563

 
$
1,699

 
$
61

 
$
9,323

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2016
 
Potash
 
Trio®
 
Corporate
 
Consolidated
Sales
 
$
53,695

 
$
19,582

 
$
—

 
$
73,277

Less: Freight costs
 
6,551

 
3,781

 
—

 
10,332

         Warehousing and handling costs
 
2,154

 
510

 
—

 
2,664

         Cost of goods sold
 
47,288

 
12,489

 
—

 
59,777

          Lower-of-cost-or-market inventory
adjustments
 
9,007

 
—

 
—

 
9,007

          Costs associated with abnormal
production
 
650

 
—

 
—

 
650

Gross (Deficit) Margin
 
$
(11,955
)
 
$
2,802

 
$
—

 
$
(9,153
)
Depreciation, depletion and amortization incurred1
 
$
12,233

 
$
1,675

 
$
460

 
$
14,368

 
 
 
 
 
 
 
 
 
1 Depreciation, depletion and amortization incurred for potash and Trio® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory.
Total assets are not presented for each reportable segment as they are not reviewed by, nor otherwise regularly provided to, the chief operating decision maker. All sales of both segments are to external customers.
During the three months ended March 31, 2016, we recorded restructuring charges of $0.4 million, of which $0.2 million was attributable to the potash segment and $0.2 million was attributable to corporate.