| BUSINESS SEGMENTS |
BUSINESS SEGMENTS We have two business segments: potash and Trio®. Our 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 to 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. 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. Information for each segment is provided in the following tables (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2017 | | Potash | | Trio® | | Corporate | | Consolidated | Sales | | $ | 20,711 |
| | $ | 11,349 |
| | $ | — |
| | $ | 32,060 |
| Less: Freight costs | | 2,864 |
| | 3,296 |
| | — |
| | 6,160 |
| Warehousing and handling costs | | 1,173 |
| | 873 |
| | — |
| | 2,046 |
| Cost of goods sold | | 11,534 |
| | 7,861 |
| | — |
| | 19,395 |
| Lower-of-cost-or-market inventory
adjustments | | 113 |
| | 554 |
| | — |
| | 667 |
| Gross Margin (Deficit) | | $ | 5,027 |
| | $ | (1,235 | ) | | $ | — |
| | $ | 3,792 |
| Depreciation, depletion and amortization incurred1 | | $ | 6,567 |
| | $ | 1,687 |
| | $ | 16 |
| | $ | 8,270 |
| | | | | | | | | | Nine Months Ended September 30, 2017 | | Potash | | Trio® | | Corporate | | Consolidated | Sales | | $ | 75,745 |
| | $ | 48,557 |
| | $ | — |
| | $ | 124,302 |
| Less: Freight costs | | 9,401 |
| | 13,466 |
| | — |
| | 22,867 |
| Warehousing and handling costs | | 4,051 |
| | 2,962 |
| | — |
| | 7,013 |
| Cost of goods sold | | 50,776 |
| | 34,205 |
| | — |
| | 84,981 |
| Lower-of-cost-or-market inventory
adjustments | | 146 |
| | 4,662 |
| | — |
| | 4,808 |
| Gross Margin (Deficit) | | $ | 11,371 |
| | $ | (6,738 | ) | | $ | — |
| | $ | 4,633 |
| Depreciation, depletion and amortization incurred1 | | $ | 20,685 |
| | $ | 5,091 |
| | $ | 114 |
| | $ | 25,890 |
| | | | | | | | | | Three Months Ended September 30, 2016 | | Potash | | Trio® | | Corporate | | Consolidated | Sales | | $ | 35,357 |
| | $ | 8,286 |
| | $ | — |
| | $ | 43,643 |
| Less: Freight costs | | 6,722 |
| | 1,465 |
| | — |
| | 8,187 |
| Warehousing and handling costs | | 2,072 |
| | 544 |
| | — |
| | 2,616 |
| Cost of goods sold | | 29,027 |
| | 6,245 |
| | — |
| | 35,272 |
| Lower-of-cost-or-market inventory
adjustments | | 4,856 |
| | 336 |
| | — |
| | 5,192 |
| Gross Deficit | | $ | (7,320 | ) | | $ | (304 | ) | | $ | — |
| | $ | (7,624 | ) | Depreciation, depletion and amortization incurred1 | | $ | 8,090 |
| | $ | 597 |
| | $ | 69 |
| | $ | 8,756 |
| | | | | | | | | | Nine Months Ended September 30, 2016 | | Potash | | Trio® | | Corporate | | Consolidated | Sales | | $ | 128,248 |
| | $ | 40,512 |
| | $ | — |
| | $ | 168,760 |
| Less: Freight costs | | 20,156 |
| | 7,294 |
| | — |
| | 27,450 |
| Warehousing and handling costs | | 6,358 |
| | 1,460 |
| | — |
| | 7,818 |
| Cost of goods sold | | 108,816 |
| | 28,083 |
| | — |
| | 136,899 |
| Lower-of-cost-or-market inventory
adjustments | | 16,793 |
| | 336 |
| | — |
| | 17,129 |
| Costs associated with abnormal
production and other | | 650 |
| | 1,057 |
| | — |
| | 1,707 |
| Gross (Deficit) Margin | | $ | (24,525 | ) | | $ | 2,282 |
| | $ | — |
| | $ | (22,243 | ) | Depreciation, depletion and amortization incurred1 | | $ | 28,970 |
| | $ | 3,150 |
| | $ | 845 |
| | $ | 32,965 |
|
1 Depreciation, depletion and amortization incurred for potash and Trio® excludes depreciation, depletion and amortization amounts absorbed in or relieved from inventory.
During the nine months ended September 30, 2017, we recorded restructuring charges of $0.3 million attributable to our Trio® segment. For the comparable period in 2016, we recorded restructuring charges of $2.3 million, of which $2.1 million was attributable to our potash segment and $0.2 million was attributable to corporate. During the three months ended September 30, 2017 and 2016, we recorded no restructuring charges. |