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Segment Information and Major Customers | 12 Months Ended
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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,
|  |  |  |  |  | 2020 |  | 2019 |  | 2018
Revenue |  |  |  |  |  |  |  |  |  |
IoT Products & Services |  |  |  |  |  | $ | 249,530 |  |  | $ | 215,287 |  |  | $ | 201,506 |
IoT Solutions |  |  |  |  |  | 29,741 |  |  | 38,916 |  |  | 25,387 |
Total revenue |  |  |  |  |  | $ | 279,271 |  |  | $ | 254,203 |  |  | $ | 226,893 |
Gross profit |  |  |  |  |  |  |  |  |  |
IoT Products & Services |  |  |  |  |  | $ | 129,349 |  |  | $ | 100,522 |  |  | $ | 97,895 |
IoT Solutions |  |  |  |  |  | 14,623 |  |  | 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 Solutions |  |  |  |  |  | 7,778 |  |  | 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,
| 2020 |  | 2019 |  | 2018
IoT Products & Services | $ | 878 |  |  | $ | 8,863 |  |  | $ | 1,773 |
IoT Solutions | 21 |  |  | 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,
|  | 2020 |  | 2019
IoT Products & Services |  | $ | 387,578 |  |  | $ | 215,651 |
IoT Solutions |  | 86,975 |  |  | 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,
|  | 2020 |  | 2019
United States |  | $ | 11,297 |  |  | $ | 13,400 |
International, primarily Europe |  | 210 |  |  | 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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