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, the Chief Operating Decision Maker is reviewing both segments’ operating results separately and makes decisions about the allocation of resources, and discrete financial information is available through operating income (loss) for both segments.

IoT Products & Services

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


•	Cellular routers and gateways;


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


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


•	Network products which include 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.

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, retail, healthcare (primarily pharmacies), transportation/logistics and education. 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 operating income. IoT Solutions revenue includes product, service and subscription 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):



	Fiscal years ended September 30,
	2019			2018 (as adjusted)*			2017 (as adjusted)*
Revenue
IoT Products & Services	$	215,287		$	201,506		$	174,237
IoT Solutions	38,916			25,387			7,103
Total revenue	$	254,203		$	226,893		$	181,340
Operating income (loss)
IoT Products & Services	$	18,674		$	14,923		$	12,804
IoT Solutions	(8,602		)	(12,141		)	(3,938		)
Total operating income	$	10,072		$	2,782		$	8,866
Depreciation and amortization
IoT Products & Services	$	6,102		$	6,040		$	3,575
IoT Solutions	7,294			6,744			1,990
Total depreciation and amortization	$	13,396		$	12,784		$	5,565

*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.

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



	Fiscal years ended September 30,
	2019		2018		2017
IoT Products & Services	$	8,863	$	1,773	$	1,738
IoT Solutions	472		69		35
Total expended for property, plant and equipment	$	9,335	$	1,842	$	1,773

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



	As of September 30,
	2019		2018 (as adjusted)*
IoT Products & Services	$	215,651	$	209,574
IoT Solutions	90,255		99,822
Unallocated**	92,792		62,750
Total assets	$	398,698	$	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, current marketable securities and long-term marketable securities.

4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)

Net property, equipment and improvements by geographic location were as follows (in thousands):



	As of September 30,
	2019		2018 (as adjusted)*
United States	$	13,400	$	8,240
International, primarily Europe	457		114
Total net property, equipment and improvements	$	13,857	$	8,354

*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.

Our U.S. export sales represented 28.5%, 30.1% and 37.2% of revenue for the fiscal years ended September 30, 2019, 2018 and 2017. No single customer exceeded 10% of revenue for any of the periods presented. At September 30, 2019, we had one customer, whose accounts receivable balance represented 14.7% of total accounts receivable. At September 30, 2018, we had one customer, whose accounts receivable balance represented 12.2% of total accounts receivable.