Property, Plant, and Equipment, Net

6 Months Ended

Mar. 31, 2015

Property, Plant, and Equipment, Net

Property, Plant and Equipment, Net

Note 9.  Property, plant, and equipment

	March 31,		September 30,
	2015		2014
Land and land improvements	$	63,144	$	66,303
Buildings and improvements		254,689		197,587
Leasehold improvements		19,324		20,026
Machinery and production equipment		330,136		326,403
Computer equipment and software		104,968		103,852
Office furniture and equipment		23,975		20,992
Other		18,405		18,839
Construction in progress		278,365		223,958
		1,093,006		977,960
Less accumulated depreciation		(460,368)		(464,681)
Property, plant and equipment, net	$	632,638	$	513,279

Included in “Land and land improvements” and “Buildings and improvements” are assets held for sale of $677 at March 31, 2015 and $2,465 at September 30, 2014.  During the quarter ended March 31, 2015, Woodward completed the sale of certain of the assets held for sale.

Woodward is developing a second campus in the greater-Rockford, Illinois area for its Aerospace segment in order to address the growth expected over the next ten years and beyond and to support a substantial number of recently awarded new system platforms, particularly on narrow-body aircraft.  Included in “Construction in progress” are $123,311 at March 31, 2015 and $85,283 at September 30, 2014, of costs associated with the construction of the second campus and new equipment purchases, including capitalized interest of $4,935 at March 31, 2015 and $2,963 at September 30, 2014.

Woodward is also developing a new campus at its corporate headquarters in Fort Collins, Colorado to support the continued growth of its Energy segment by supplementing its existing Colorado manufacturing facilities and corporate headquarters.  Included in “Construction in progress” are $84,467 at March 31, 2015 and $37,268 at September 30, 2014, of costs associated with the construction of the new campus, including capitalized interest of $3,029 at March 31, 2015 and $2,392 at September 30, 2014.

In addition, in September 2013, Woodward invested in a building site in Niles, Illinois.  Woodward has completed a new facility on this site for its Aerospace segment and is relocating most of its operations formerly residing in nearby Skokie, Illinois to this new facility.  Included in “Construction in progress” are $964 at March 31, 2015 and $55,629 at September 30, 2014.  Approximately $68,700 of assets were placed in service during the six-months ended March 31, 2015, and were recorded to “Buildings and improvements.”

For the three and six-months ended March 31, 2015 and March 31, 2014, Woodward had depreciation expense of the following:

	Three-Months Ended				Six-Months Ended
	March 31,				March 31,
	2015		2014		2015		2014
Depreciation expense	$	11,449	$	11,062	$	22,447	$	21,694

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

	Three-Months Ended				Six-Months Ended
	March 31,				March 31,
	2015		2014		2015		2014
Capitalized interest	$	2,801	$	1,314	$	4,766	$	2,289