SEGMENT INFORMATION

We have two reportable operating segments for purposes of ASC 280-10-50 “Segment Reporting”: (1) IoT Products & Services, and (2) IoT Solutions. Our segments are described below:

IoT Products & Services

Our IoT Products & Services segment is composed of the following communications products and and communication product development services:


•	Cellular products;


•	Radio frequency (RF) which include our XBee^® modules as well as other RF solutions;


•	Embedded products include Digi Connect^® and Rabbit^® embedded systems on module and single board computers;


•	Network products, which has the highest concentration of mature products, including console and serial servers and USB connected products;


•	Digi Wireless Design Services;


•	Digi Remote Manager^®; and


•	Digi Support Services which offers various levels of technical services for development assistance, consulting and training.

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 three primary vertical markets: healthcare (including retail pharmacies, hospitals and other medical facilities), food service and transportation/logistics. These solutions are marketed as SmartSense by Digi^™. We have formed, expanded and enhanced the IoT Solutions segment through four acquisitions. These include: the October 2015 acquisition of Bluenica Corporation ("Bluenica"), the November 2016 acquisition of FreshTemp^®, LLC ("FreshTemp^®"), the January 2017 acquisition of SMART Temps^®, LLC ("SMART Temps^®") and the October 2017 acquisition of TempAlert, LLC ("TempAlert").

We measure our segment results primarily by reference to revenue and operating income. IoT Solutions revenue includes both product and service revenue. Certain costs incurred at the corporate level are allocated to our segments. These costs include information technology, employee benefits and shared facility services. The information technology and shared facility costs are allocated based on headcount and the employee benefits costs are allocated based on compensation costs.

Summary operating results for each of our segments were as follows (in thousands):



	Three months ended December 31,
	2018			2017 (as adjusted)*
Revenue
IoT Products & Services	$	53,294		$	40,880
IoT Solutions	9,019			4,075
Total revenue	$	62,313		$	44,955
Operating income (loss)
IoT Products & Services	$	7,402		$	1,264
IoT Solutions	(1,844		)	(3,263		)
Total operating income (loss)	$	5,558		$	(1,999	)
Depreciation and amortization
IoT Products & Services	$	1,942		$	849
IoT Solutions	1,731			1,604
Total depreciation and amortization	$	3,673		$	2,453

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

10. SEGMENT INFORMATION (CONTINUED)

Total expended for property, plant and equipment was as follows (in thousand):



	Three months ended December 31,
	2018		2017
Expended for property, equipment and improvements
IoT Products & Services	$	1,775	$	453
IoT Solutions	—		—
Total expended for property, plant and equipment	$	1,775	$	453

Total assets for each of our segments were as follows (in thousands):



	December 31, 2018		September 30, 2018 (as adjusted)*
Assets
IoT Products & Services	$	210,283	$	209,574
IoT Solutions	94,975		99,822
Unallocated**	76,469		62,750
Total assets	$	381,727	$	372,146

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

**Unallocated consists of cash and cash equivalents and current marketable securities.

Total goodwill for each of our segments were as follows (in thousands):



	December 31, 2018		September 30, 2018
Goodwill
IoT Products & Services	$	103,973	$	104,358
IoT Solutions	49,605		50,177
Total goodwill	$	153,578	$	154,535