Note 9. Property, plant, and equipment



	September 30,		September 30,
	2017		2016
Land and land improvements	$	88,326	$	87,696
Buildings and building improvements		514,453		527,704
Leasehold improvements		16,142		15,213
Machinery and production equipment		543,641		484,315
Computer equipment and software		124,723		117,984
Office furniture and equipment		24,308		29,344
Other		19,393		18,969
Construction in progress		111,910		88,909
		1,442,896		1,370,134
Less accumulated depreciation		(520,853)		(493,784)
Property, plant, and equipment, net	$	922,043	$	876,350

Included in “Office furniture and equipment” and “Other” is $1,653 at each of September 30, 2017 and September 30, 2016, of gross assets acquired on capital leases, and accumulated depreciation included $739 at September 30, 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 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 $49,347 at September 30, 2017 and $26,741 at September 30, 2016 associated with new equipment purchases for the second campus.

Concurrent with and in relation to Woodward’s significant investment in three new campuses and related equipment in the greater-Rockford, Illinois area, the new campus at its corporate headquarters in Fort Collins, Colorado (both discussed above), and the new campus in Niles, Illinois that was completed in fiscal year 2015, Woodward initiated a comprehensive review of its depreciation lives as required by U.S. 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 were used in fiscal year 2016 and will be used going forward and result in a downward adjustment of depreciation on existing assets of approximately $12,000 for fiscal year 2016.

For the fiscal years ended September 30, 2017, 2016, and 2015, Woodward had depreciation expense as follows:



	Year Ended September 30,
	2017		2016		2015
Depreciation expense	$	55,140	$	41,550	$	45,994

For the fiscal years ended September 30, 2017, 2016, and 2015, Woodward capitalized interest that would have otherwise been included in interest expense of the following:



	Year Ended September 30,
	2017		2016		2015
Capitalized interest	$	2,008	$	5,455	$	8,995