SEGMENT INFORMATION

We have two reportable operating segments for purposes of ASC 280-10-50 “Segment Reporting”: (1) IoT Products & Services (formerly M2M), and (2) IoT Solutions (formerly Solutions). Our segments are described below:

IoT Products & Services

Our IoT Products & Services segment is composed of the following communications products and development services and includes our recent acquisition of Accelerated:


•	Cellular routers and gateways;


•	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;

9. SEGMENT INFORMATION (CONTINUED)


•	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


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

IoT Solutions

We have formed the IoT Solutions segment primarily through four acquisitions: the October 2015 acquisition of Bluenica, the November 2016 acquisition of FreshTemp, the January 2017 acquisition of SMART Temps and the October 2017 acquisition of TempAlert. Our IoT Solutions segment offers wireless temperature and other environmental condition monitoring services as well as employee task management services. These products and services are provided to food service, transportation, education, healthcare and pharma, and industrial markets and are marketed as SmartSense by Digi™, formerly Digi Smart Solutions™.

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 June 30,						Nine months ended June 30,
	2018			2017			2018			2017
Revenue
IoT Products & Services	$	54,406		$	42,844		$	145,111		$	131,653
IoT Solutions	8,310			2,895			17,593			4,876
Total revenue	$	62,716		$	45,739		$	162,704		$	136,529
Operating income
IoT Products & Services	$	4,544		$	1,841		$	10,497		$	7,638
IoT Solutions	(2,507		)	(1,132		)	(10,080		)	(2,995		)
Total operating income	$	2,037		$	709		$	417		$	4,643
Depreciation and amortization
IoT Products & Services	$	1,754		$	904		$	4,332		$	2,704
IoT Solutions	1,559			735			4,674			1,325
Total depreciation and amortization	$	3,313		$	1,639		$	9,006		$	4,029

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



	Nine months ended June 30,
	2018		2017
Expended for property, plant and equipment
IoT Products & Services	$	963	$	1,545
IoT Solutions	—		32
Total expended for property, plant and equipment	$	963	$	1,577

9. SEGMENT INFORMATION (CONTINUED)

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



	June 30, 2018		September 30, 2017
Assets
IoT Products & Services	$	210,118	$	182,555
IoT Solutions	95,408		47,644
Unallocated*	54,700		114,990
Total assets	$	360,226	$	345,189

*Unallocated consists of cash and cash equivalents, current marketable securities and long-term marketable securities.

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



	June 30, 2018		September 30, 2017
Goodwill
IoT Products & Services	$	104,584	$	98,981
IoT Solutions	49,981		33,014
Total goodwill	$	154,565	$	131,995