Property plant and equipment, net

12 Months Ended

Jul. 01, 2017

6. Property, plant and equipment, net

Property, plant and equipment are recorded at cost and consist of the following:


	July 1, 2017		July 2, 2016
	(Thousands)
Buildings	$	136,846	$	70,882
Machinery, fixtures and equipment		215,155		218,203
Information technology hardware and software		630,352		607,969
Leasehold improvements		99,208		129,156
Depreciable property, plant and equipment, gross		1,081,561		1,026,210
Accumulated depreciation		(667,700)		(665,055)
Depreciable property, plant and equipment, net		413,861		361,155
Land		41,627		37,492
Construction in progress		64,087		54,562
Property, plant and equipment, net	$	519,575	$	453,209

Depreciation expense related to property, plant and equipment was $101.4 million, $70.3 million and $66.4 million in fiscal 2017, 2016 and 2015, respectively. Interest expense capitalized during fiscal 2017, 2016 and 2015 was not material.

During the fourth quarter of fiscal 2017, the Company decided to implement a new global Enterprise Resource Planning (“ERP”) system. As a result of this decision, the estimated useful life of its existing ERP system in the Americas has been reduced to 24 months. Included as a component of restructuring, integration and other expenses was $16.0 million of accelerated depreciation expense as a result of such change in estimated useful life.