Property, Plant, and Equipment, Net

12 Months Ended

Sep. 30, 2015

Note 9. Property, plant, and equipment



	September 30,		September 30,
	2015		2014
Land and land improvements	$	79,311	$	66,303
Buildings and improvements		372,160		197,587
Leasehold improvements		16,907		20,026
Machinery and production equipment		365,040		326,403
Computer equipment and software		118,154		103,852
Office furniture and equipment		20,939		20,992
Other		18,325		18,839
Construction in progress		252,763		223,958
		1,243,599		977,960
Less accumulated depreciation		(487,499)		(464,681)
Property, plant and equipment, net	$	756,100	$	513,279

Included in “Land and land improvements” and “Buildings and improvements” are assets held for sale of $681 at September 30, 2015 and $2,465 at September 30, 2014 related to Woodward’s Energy segment. During the quarter ended September 30, 2014, Woodward recorded an impairment charge of $3,138, which is included in cost of goods sold in the Consolidated Statement of Earnings, related to the write down to fair value of certain held for sale assets. During the quarter ended March 31, 2015, Woodward completed the sale of certain of the assets held for sale.

Woodward completed construction of 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 expected growth over the next ten years and beyond stimulated by Woodward being awarded a substantial number of new system platforms, particularly on narrow-body aircraft. Approximately $120,000 of assets were placed in service during the fiscal year ended September 30, 2015, and were recorded to “Buildings and improvements.” Included in “Construction in progress” are costs of $47,629 at September 30, 2015 and $85,283 at September 30, 2014, associated with the construction of the second campus and new equipment purchases, including capitalized interest of $499 at September 30, 2015 and $2,963 at September 30, 2014.

In addition, in fiscal year 2015, Woodward completed an addition to and renovation of a building in Niles, Illinois that it had acquired in September 2013 for its Aerospace segment. Most of the operations that formerly resided in nearby Skokie, Illinois, were relocated to this new facility in fiscal year 2015. Approximately $77,000 of assets were placed in service during the fiscal year ended September 30, 2015, and were recorded to “Buildings and improvements” and “Office furniture and equipment.” Included in “Construction in progress” are $0 at September 30, 2015 and $55,629 at September 30, 2014, associated with the construction of the building in Niles and new equipment purchases.

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 $151,669 at September 30, 2015 and $37,268 at September 30, 2014, associated with the construction of the new campus, including capitalized interest of $5,205 at September 30, 2015 and $2,392 at September 30, 2014.

For the fiscal years ended September 30, 2015, 2014 and 2013, Woodward had depreciation expense of the following:



	Year Ended September 30,
	2015		2014		2013
Depreciation expense	$	45,994	$	43,773	$	37,254

For the fiscal years ended September 30, 2015, 2014 and 2013, Woodward capitalized interest that would have otherwise been included in interest expense of the following:



	Year Ended September 30,
	2015		2014		2013
Capitalized interest	$	8,995	$	7,282	$	1,215