BUSINESS SEGMENTS

Our operations are organized into three segments: potash, Trio^® and oilfield solutions. The reportable segments are determined by management based on several factors including the types of products and services sold, 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).



Year Ended December 31, 2018	Potash			Trio^®			Oilfield Solutions		Other		Consolidated
Sales¹	$	124,058		$	66,808		$	17,404	$	—	$	208,270
Less: Freight costs	17,682			19,370			—		—		37,052
Warehousing and handling costs	5,046			4,225			10		—		9,281
Cost of goods sold	72,322			45,284			4,349		—		121,955
Lower of cost or NRV inventory adjustments	—			1,711			—		—		1,711
Gross Margin (Deficit)	$	29,008		$	(3,782	)	$	13,045	$	—	$	38,271
Depreciation and depletion²	$	25,134		$	6,343		$	343	$	395	$	32,215

Year Ended December 31, 2017	Potash			Trio^®			Oilfield Solutions		Other		Consolidated
Sales¹	$	107,917		$	63,686		$	6,312	$	—	$	177,915
Less: Freight costs	13,912			18,104			—		—		32,016
Warehousing and handling costs	5,556			4,114			—		—		9,670
Cost of goods sold	72,229			45,187			546		—		117,962
Lower of cost or NRV inventory adjustments	550			5,829			—		—		6,379
Gross Margin (Deficit)	$	15,670		$	(9,548	)	$	5,766	$	—	$	11,888
Depreciation, depletion and accretion incurred²	$	26,485		$	6,576		$	19	$	129	$	33,209

Year Ended December 31, 2016	Potash			Trio^®			Oilfield Solutions		Other		Consolidated
Sales¹	$	159,207		$	52,890		$	—	$	—	$	212,097
Less: Freight costs	25,732			10,330			—		—		36,062
Warehousing and handling costs	8,438			2,568			—		—		11,006
Cost of goods sold	131,406			38,339			—		—		169,745
Lower of cost or NRV inventory adjustments	18,379			1,995			—		—		20,374
Costs associated with abnormal production and other	650			1,057			—		—		1,707
Gross (Deficit) Margin	$	(25,398	)	$	(1,399	)	$	—	$	—	$	(26,797	)
Depreciation, depletion and accretion incurred²	$	30,708		$	9,296		$	—	$	909	$	40,913

¹Segment sales include the sales of byproducts generated during the production of potash and Trio^®. Prior to the adoption of ASC 606, sales of byproducts were accounted for as a credit to cost of goods sold for potash and Trio^®.

²Depreciation and depletion incurred for potash and Trio^® excludes depreciation and depletion 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 segment sales are to external customers.

During the year ended December 31, 2016, we recorded restructuring charges of $2.7 million, of which $2.1 million was attributable to the potash segment, $0.4 million was attributable to the Trio^® segment, and $0.2 million was attributable to other.