Property, Plant, and Equipment, Net

3 Months Ended

Dec. 31, 2015

Note 9. Property, plant, and equipment



	December 31,		September 30,
	2015		2015
Land and land improvements	$	79,121	$	79,311
Buildings and improvements		371,433		372,160
Leasehold improvements		16,656		16,907
Machinery and production equipment		371,955		365,040
Computer equipment and software		119,135		118,154
Office furniture and equipment		21,000		20,939
Other		18,333		18,325
Construction in progress		279,405		252,763
		1,277,038		1,243,599
Less accumulated depreciation		(495,379)		(487,499)
Property, plant and equipment, net	$	781,659	$	756,100

Included in “Land and land improvements” and “Buildings and improvements” are assets held for sale of $662 at December 31, 2015 and $681 at September 30, 2015 related to Woodward’s Industrial segment. The entire change in value is due to changes in foreign currency exchange rates between September 30, 2015 and December 31, 2015.

In fiscal year 2015, Woodward completed and placed into service a manufacturing and office building on a second campus in the greater-Rockford, Illinois area and has begun occupying the new facility for its Aerospace segment. This campus is intended to support Woodward’s expected growth in its Aerospace segment over the next ten years and beyond, required as a result of Woodward being awarded a substantial number of new system platforms, particularly on narrow-body aircraft. Included in “Construction in progress” are costs of $55,716 at December 31, 2015 and $47,629 at September 30, 2015, associated with the construction of the second campus and new equipment purchases including capitalized interest of $836 at December 31, 2015 and $499 at September 30, 2015.

Woodward is also developing a new campus at its corporate headquarters in Fort Collins, Colorado to support the continued growth of its Industrial segment by supplementing its existing Colorado manufacturing facilities and corporate headquarters. Included in “Construction in progress” are $177,061 at December 31, 2015 and $151,669 at September 30, 2015, associated with the construction of the new campus including capitalized interest of $6,669 at December 31, 2015 and $5,205 at September 30, 2015. Woodward will begin occupying the new campus starting in its second quarter of fiscal year 2016.

Concurrent with and in relation to Woodward’s significant investment in three new campuses and related equipment in the greater-Rockford, Illinois area, its corporate headquarters in Fort Collins, Colorado (discussed above), and a new campus in Niles, Illinois (that was completed in fiscal year 2015), Woodward initiated a comprehensive review of its depreciation lives as required by US GAAP to evaluate the estimates of the useful lives of Woodward assets. This review resulted in estimates of the useful lives of both existing and new assets generally in excess of those utilized prior to fiscal year 2016. The revised estimates will be used in fiscal year 2016 and going forward and result in a downward adjustment of depreciation on existing assets of approximately $12,000 for fiscal year 2016.

For the three-months ended December 31, 2015 and December 31, 2014, Woodward had depreciation expense as follows:

For the three-months ended December 31, 2015 and December 31, 2014, Woodward capitalized interest that would have otherwise been included in interest expense of the following:

Three-Months Ended

December 31,

Depreciation expense