Property, Plant, and Equipment, Net

6 Months Ended

Mar. 31, 2017

Note 10. Property, plant, and equipment



	March 31,		September 30,
	2017		2016
Land and land improvements	$	87,514	$	87,696
Buildings and building improvements		526,597		527,704
Leasehold improvements		14,990		15,213
Machinery and production equipment		488,851		484,315
Computer equipment and software		122,570		117,984
Office furniture and equipment		26,841		29,344
Other		19,165		18,969
Construction in progress		108,020		88,909
		1,394,548		1,370,134
Less accumulated depreciation		(506,313)		(493,784)
Property, plant, and equipment, net	$	888,235	$	876,350

Included in “Office furniture and equipment” and “Other” is $1,653 at March 31, 2017 and September 30, 2016, of gross assets acquired on capital leases, and accumulated depreciation included $530 at March 31, 2017 and $322 at September 30, 2016 of amortization associated with the capital lease assets.

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 occupied the new facility in anticipation of beginning serial production of new narrow-body product lines beginning in fiscal year 2017 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 $41,941 at March 31, 2017 and $26,741 at September 30, 2016 associated with new equipment purchases for the second campus.

For the three and six-months ended March 31, 2017 and 2016, Woodward had depreciation expense as follows:



	Three-Months Ended				Six-Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Depreciation expense	$	13,663	$	8,633	$	26,118	$	18,749

For the three and six-months ended March 31, 2017 and 2016, 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,
	2017		2016		2017		2016
Capitalized interest	$	481	$	2,267	$	953	$	4,140