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Segment Information and Major Customers
12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND MAJOR CUSTOMERS SEGMENT INFORMATION AND MAJOR CUSTOMERS
We have two reportable operating segments for purposes of ASC 280-10-50 “Segment Reporting”: (i) IoT Products & Services and (ii) IoT Solutions. This determination was made by considering both qualitative and quantitative information. The qualitative information included, but was not limited to, the following: the nature of the products and services and customers differ between the two segments, discrete financial information is available through gross profit for both segments and the Chief Operating Decision Maker is reviewing both segments’ financial information (through gross profit) separately to make decisions about the allocation of resources.
IoT Products & Services
Our IoT Products & Services segment is composed of the following communications products and development services:
Cellular routers;
OEM Solutions which include Radio frequency ("RF") products which include our Digi XBee® Networking solutions as well as other RF solutions, embedded products which include Digi Connect®, ConnectCore® and Rabbit® embedded systems on module and single board computers;
Infrastructure management products which include console and serial servers and USB connected products;
Console Servers which is comprised of our Network Resilience Platform and includes Smart Out-of-Band and NetOps Console Servers managed by our Lighthouse software.
Digi Wireless Design Services;
Digi Remote Manager®; and
Digi Support Services which offers various levels of technical services for development assistance, consulting and training.
4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)
IoT Solutions
Our IoT Solutions segment offers wireless temperature and other condition-based monitoring services as well as employee task management services. These solutions are focused on these vertical markets: food service, healthcare (primarily pharmacies) and supply chain. The solutions are marketed as SmartSense by Digi®. We have formed, expanded and enhanced the IoT Solutions segment through acquisition.
We measure our segment results primarily by reference to revenue and gross profit. IoT Solutions revenue includes product, service and subscription revenue. .
Summary operating results for each of our segments were as follows (in thousands):
Fiscal year ended September 30,
202020192018
Revenue
IoT Products & Services$249,530 $215,287 $201,506 
IoT Solutions29,741 38,916 25,387 
Total revenue$279,271 $254,203 $226,893 
Gross profit
IoT Products & Services$129,349 $100,522 $97,895 
IoT Solutions14,623 18,513 11,159 
Total gross profit$143,972 $119,035 $109,054 
Depreciation and amortization
IoT Products & Services$11,521 $6,102 $6,040 
IoT Solutions7,778 7,294 6,744 
Total depreciation and amortization$19,299 $13,396 $12,784 
Total expended for property, plant and equipment was as follows (in thousands):
Fiscal year ended September 30,
202020192018
IoT Products & Services$878 $8,863 $1,773 
IoT Solutions21 472 69 
Total expended for property, plant and equipment$899 $9,335 $1,842 
Total assets for each of our segments were as follows (in thousands):
As of September 30,
20202019
IoT Products & Services$387,578 $215,651 
IoT Solutions86,975 90,255 
Unallocated*54,129 92,792 
Total assets$528,682 $398,698 
*Unallocated consists of cash and cash equivalents.
4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)
Net property, equipment and improvements by geographic location were as follows (in thousands):
As of September 30,
20202019
United States$11,297 $13,400 
International, primarily Europe210 457 
Total net property, equipment and improvements$11,507 $13,857 
Our U.S. export sales represented 25.1%, 28.5% and 30.1% of revenue for the fiscal years ended September 30, 2020, 2019 and 2018. No single customer exceeded 10% of revenue for any of the periods presented. At September 30, 2020, we had one customer, whose accounts receivable balance represented 17.2% of total accounts receivable. At September 30, 2019, we had one customer, whose accounts receivable balance represented 14.7% of total accounts receivable.