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Segment Information and Major Customers
 12 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND MAJOR CUSTOMERS SEGMENT INFORMATION AND MAJOR CUSTOMERS
We have two reportable segments: (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 operating income for both segments and the Chief Operating Decision Maker is reviewing both segments’ financial information separately to make decisions about the allocation of resources. Effective with the reorganization announcement on October 7, 2020 (see Note 10), our IoT Products & Services business is structured to include four operating segments, each with a segment manager. Following our acquisition of Ventus in the first fiscal quarter of 2022, IoT Solutions is comprised of two reporting units; Ventus and SmartSense by Digi.
IoT Products & Services
Our IoT Products & Services segment is composed of the following four operating segments:
•Cellular Routers - box devices (fully enclosed) that provide connectivity typically in a place where the device can be plugged in exclusively using cellular communications.
•Console Servers - similar to cellular routers except they are exclusively for edge computing installations and data center applications exclusively using cellular communications.
•OEM Solutions - Original Equipment Manufacturers ("OEM") will be a chip, rather than a boxed device. This can come in the form of a stand-alone chip, or from a systems-on-module ("SOMs"). While cellular connectivity is used, other communication protocols can be used such as Zigbee, Bluetooth or Radio-Frequency ("RF") based on application.
•Infrastructure Management - includes battery operated, cellular enabled connect sensors as well as other types of console server applications that are more Digi Accelerated Linux ("DAL") based than Console Servers. This operating segment has some products that do not use cellular communications, but a large part of this segment does use cellular communications.
IoT Solutions
Following the acquisition of Ventus on November 1, 2021, IoT Solutions is comprised of two operating segments:
•SmartSense by Digi - offers wireless temperature and other condition-based monitoring services for perishable goods such as food or medicine, as well as employee task management services.
•Ventus - provides MNaaS solutions that simplify the complexity of enterprise wide area network ("WAN") connectivity via wireless and fixed line solutions.
The operating segments included in each reportable segment have similar qualitative and quantitative factors, which allow us to aggregate them under each reportable segment. The qualitative factors include similar nature of products and services, production process, type or class of customers and methods used to distribute the products. The quantitative factors include similar operating margins. Our chief operating decision maker reviews and makes business decisions which includes a primary review of operating income but also includes gross profit. Following the October 2020 reorganization, the shared general and administrative costs are being allocated to each operating segment. As a result, our disclosed measure of segment operating income has been updated for all periods presented to conform with this change.
4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)
Summary operating results for each of our segments were as follows (in thousands):
Year ended September 30,
202320222021
Revenue
IoT Products & Services$345,680 $297,645 $264,173 
IoT Solutions99,169 90,580 44,459 
Total revenue$444,849 $388,225 $308,632 
Gross Profit
IoT Products & Services$187,958 $160,117 $144,472 
IoT Solutions64,245 56,169 22,185 
Total gross profit$252,203 $216,286 $166,657 
Operating Income (loss)
IoT Products & Services$51,157 $41,562 $18,212 
IoT Solutions(1,062)(3,342)(7,684)
Total operating income$50,095 $38,220 $10,528 
Depreciation and Amortization
IoT Products & Services$12,544 $13,974 $13,109 
IoT Solutions19,432 19,865 7,768 
Total depreciation and amortization$31,976 $33,839 $20,877 
Total expended for property, plant and equipment was as follows (in thousands):
Year ended September 30,
202320222021
IoT Products & Services$588 $1,952 $2,257 
IoT Solutions*3,510 22 — 
Total expended for property, plant and equipment$4,098 $1,974 $2,257 
* Excluded from this amount is $3.9 million, $6.2 million and $1.8 million of transfers of inventory to property plant and equipment for subscriber assets for the year ended September 30, 2023, 2022 and 2021, respectively.

Total assets for each of our segments were as follows (in thousands):
As of September 30,
20232022
IoT Products & Services$384,018 $390,128 
IoT Solutions419,820 428,867 
Unallocated*31,693 34,900 
Total assets$835,531 $853,895 
*Unallocated consists of cash and cash equivalents.
Net property, equipment and improvements by geographic location were as follows (in thousands):
As of September 30,
20232022
United States$28,631 $27,205 
International, primarily Europe477 389 
Total net property, equipment and improvements$29,108 $27,594 
Our U.S. export sales represented 27.2%, 22.1% and 26.2% of revenue for the fiscal years ended September 30, 2023, 2022 and 2021. No single customer exceeded 10% of revenue or accounts receivable for any of the periods presented.