Property, Plant & Equipment (Notes)

12 Months Ended

Sep. 25, 2015

Property, Plant and Equipment [Abstract]

PP&E are recorded at cost, with depreciation expense included in cost of products, cost of services, R&D, S&M and G&A expenses in our consolidated statements of operations. Depreciation expense was $48.2 million, $38.1 million and $37.4 million in fiscal 2015, 2014, and 2013, respectively.

PP&E consist of the following (in thousands):



Property, Plant And Equipment	September 25, 2015			September 26, 2014
Land	$	43,537		$	45,842
Buildings and building improvements	248,390			61,712
Leasehold improvements	61,455			56,665
Machinery and equipment	70,143			47,639
Computer systems and software	136,666			108,225
Furniture and fixtures	25,489			13,540
Cinema equipment provided under operating leases	7,638			—
Construction-in-progress	11,448			127,569
Property, plant and equipment, gross	604,766			461,192
Less: accumulated depreciation	(201,675		)	(171,437		)
Property, plant and equipment, net	$	403,091		$	289,755

Purchase Of 1275 Market Commercial Office Building In San Francisco, CA. During fiscal 2012, we purchased commercial office property in San Francisco, California for $109.8 million of which we allocated $35.5 million and $74.3 million to the land and building, respectively. As of September 26, 2014, construction-in-progress included both the book value of the building and costs for ongoing construction. Following our partial occupation of the building during the first quarter of fiscal 2015, we completed work for the occupation of the building as our new worldwide headquarters in the fourth quarter of fiscal 2015. As of September 25, 2015, construction-in-progress only included costs for ongoing construction on ancillary facilities.

Sale Of Properties In U.K. During fiscal 2014, we sold the land and building from one of our properties located in Wootton Bassett, U.K for $3.3 million. In connection with the sale, we recognized a gain of $0.4 million within other income/(expense), net in our consolidated statements of operations. Prior to sale, the carrying value of both the land and building sold as part of this transaction as well as a parcel of adjacent land not part of the sale were classified as held for sale and included in other current assets as management had previously committed to a plan to sell these properties. Management still intends to sell the remaining unsold parcel of land within the next twelve months, and will therefore continue to classify it as held for sale. Accordingly, other current assets as of September 25, 2015 includes the carrying value of this parcel of land of $0.9 million.

Purchase Of Commercial Office Building In Sunnyvale, CA. During fiscal 2014, we purchased a commercial office building in Sunnyvale, California for $19.7 million that we had been occupying under a 7.5 year lease that had not yet run its full term. The amount capitalized as the building’s carrying value is comprised of the amount allocated to the building from the acquisition price in addition to the carrying value of existing leasehold improvements, less existing lease-related liabilities.

Sale of Ownership Interest in Affiliated Entity. During fiscal 2015, we entered into an Agreement with entities affiliated with the Dolby to sell our ownership interest in Dolby Properties, LLC. For additional details, see Note 16, “Related Parties."