PROPERTY AND EQUIPMENT, NET

12 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET:

Property and equipment, net, consisted of the following (in thousands):

	September 30, 2019			September 30, 2018
Land	$	44,848		$	44,848
Land improvements	100,879			100,879
Buildings and improvements	1,839,872			1,816,229
Build-to-suit asset	93,828			—
Furniture and equipment	660,936			594,106
Construction in process (1)	103,327			74,630
Subtotal	2,843,690			2,630,692
Less: accumulated depreciation	(1,323,003		)	(1,235,323		)
Property and equipment, net	$	1,520,687		$	1,395,369

_________

(1) As of September 30, 2019 and 2018, Project Inspire related construction in process totaled $99.3 million and $71.5 million, respectively.

Depreciation expense totaled $121.8 million, $81.3 million and $73.9 million for the fiscal years ended September 30, 2019, 2018 and 2017, respectively.

In fiscal 2019, the Company made an out-of-period correction, which increased depreciation and amortization expense by $6.3 million. This adjustment resulted from the assignment, in a prior year, of an incorrect useful life to depreciate a long lived asset related to tenant allowances. In fiscal 2019, the Company also committed to a plan to repurpose the recently closed Casino of the Wind section of Mohegan Sun. In connection with this decision, the Company determined that certain assets related to the Casino of the Wind had no alternative future use. Accordingly, depreciation on these assets was accelerated, which increased depreciation and amortization expense by $21.6 million.