Property, Plant, and Equipment, Net

9 Months Ended

Jun. 30, 2015

Note 10. Property, plant, and equipment



	June 30,		September 30,
	2015		2014
Land and land improvements	$	63,626	$	66,303
Buildings and improvements		375,068		197,587
Leasehold improvements		17,696		20,026
Machinery and production equipment		338,531		326,403
Computer equipment and software		105,715		103,852
Office furniture and equipment		23,906		20,992
Other		18,466		18,839
Construction in progress		216,021		223,958
		1,159,029		977,960
Less accumulated depreciation		(470,693)		(464,681)
Property, plant and equipment, net	$	688,336	$	513,279

Included in “Land and land improvements” and “Buildings and improvements” are assets held for sale of $692 at June 30, 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 costs of $27,633 at June 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 $430 at June 30, 2015 and $2,963 at September 30, 2014. Approximately $120,000 of assets were placed in service during the nine-months ended June 30, 2015, and were recorded to “Buildings and improvements.”

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 costs of $117,882 at June 30, 2015 and $37,268 at September 30, 2014, associated with the construction of the new campus, including capitalized interest of $3,996 at June 30, 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 costs of $4,960 at June 30, 2015 and $55,629 at September 30, 2014, associated with the construction of the building in Niles and new equipment purchases. Approximately $72,000 of assets were placed in service during the nine-months ended June 30, 2015, and were recorded to “Buildings and improvements” and “Office furniture and equipment.”

For the three and nine-months ended June 30, 2015 and June 30, 2014, Woodward had depreciation expense of the following:



	Three-Months Ended				Nine-Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Depreciation expense	$	11,280	$	10,489	$	33,727	$	32,183

For the three and nine-months ended June 30, 2015 and June 30, 2014, Woodward capitalized interest that would have otherwise been included in interest expense of the following:



	Three-Months Ended				Nine-Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Capitalized interest	$	2,544	$	1,676	$	7,310	$	3,965