FIXED ASSETS

Fixed assets consisted of the following:



(in thousands)	July 2, 2016			January 2, 2016
Land and land improvements	$	44,434		$	28,508
Buildings and building improvements	198,402			156,725
Machinery, equipment and computer systems	566,545			506,649
Trucks, trailers and automobiles	32,716			33,760
Furniture and fixtures	5,298			4,210
Construction in progress	49,532			11,503
Capital leases⁽¹⁾	4,385			—
	$	901,312		$	741,355
Accumulated depreciation	(370,844		)	(339,802		)
	530,468			401,553
Fixed assets held for sale	(66		)	(88		)
Fixed assets, net	$	530,402		$	401,465

⁽¹⁾ Gross amounts of assets recorded under capital leases represent machinery, equipment and computer systems as of July 2, 2016.

The significant increase in fixed assets was primarily due to the acquisition of Diamond. The preliminary fair value of the fixed assets acquired is still being evaluated and may require adjustment once the purchase price allocation is finalized. Depreciation expense related to fixed assets was $19.1 million and $15.0 million during the second quarters of 2016 and 2015, respectively. For the first six months of 2016 and 2015, depreciation expense was $35.3 million and $29.7 million, respectively. The increase in depreciation for the second quarter and first six months of 2016, compared to the same periods in the prior year is due to the addition of fixed assets at fair value from the acquisition of Diamond.

We recorded $0.5 million of fixed asset impairment charges during the second quarter of 2016 related to IT hardware and software as part of our integration plan. For the first six months of 2016, we incurred impairment charges of $0.9 million related to this IT equipment and other machinery and equipment related to the discontinuation of manufacturing certain products. There were no fixed asset impairment charges recorded during the second quarter or first six months of 2015.