Revenue

12 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Revenue Disaggregation

The following summarizes our revenue by geographic location of our customers:

	Fiscal year ended September 30,
($ in thousands)	2020		2019		2018
North America, primarily the United States	$	213,487	$	184,022	$	161,924
Europe, Middle East & Africa	40,076		39,896		39,211
Rest of world	25,708		30,285		25,758
Total revenue	$	279,271	$	254,203	$	226,893

The following summarizes our revenue by the timing of revenue recognition:

	Fiscal year ended September 30,
($ in thousands)	2020		2019		2018
Transferred at a point in time	$	253,371	$	231,387	$	212,448
Transferred over time	25,900		22,816		14,445
Total revenue	$	279,271	$	254,203	$	226,893

Contract Balances

Contract Assets

Contract assets consist of subscriber assets.  These subscriber assets relate to fees in certain contracts that we charge our customers so they can begin using equipment. In these cases, we retain the ownership of the equipment that the customer uses. The total net book value of subscriber assets was $2.0 million at September 30, 2020 and $2.1 million at September 30, 2019 and is included in property, equipment and improvements, net. Depreciation expense for these subscriber assets was

12. REVENUE (CONTINUED)

$1.5 million, $1.1 million and $0.5 million for fiscal 2020, 2019 and 2018, respectively. We depreciate the cost of this equipment over its useful life (typically three years).

Contract Liabilities

The timing of revenue recognition may differ from the timing of invoicing to customers. Customers are invoiced for subscription services in advance on a monthly, quarterly or annual basis. Contract liabilities consist of unearned revenue related to annual or multi-year contracts for subscription services and related implementation fees for our IoT Solutions segment and our Digi Remote Manager® services in our IoT Products & Services segment.

Changes in unearned revenue were:

	Fiscal year ended September 30,
($ in thousands)	2020
Unearned revenue, beginning of period	$	5,025
Billings	35,213
Revenue recognized	(30,897)
Unearned revenue, end of period	$	9,341

Remaining Transaction Price

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. As of September 30, 2020 approximately $14.0 million of revenue is expected to be recognized from remaining performance obligations for subscriptions contracts. We expect to recognize revenue on approximately $10.0 million of remaining performance obligations over the next twelve months. Revenue from the remaining performance obligations we expect to recognize over a range of two years to seven years.