Note 10. Property, plant, and equipment



	March 31,		September 30,
	2018		2017
Land and land improvements	$	88,595	$	88,326
Buildings and building improvements		516,687		514,453
Leasehold improvements		18,303		16,142
Machinery and production equipment		575,695		543,641
Computer equipment and software		122,663		124,723
Office furniture and equipment		24,661		24,308
Other		19,397		19,393
Construction in progress		115,551		111,910
		1,481,552		1,442,896
Less accumulated depreciation		(538,119)		(520,853)
Property, plant, and equipment, net	$	943,433	$	922,043

In the second quarter of fiscal year 2018, the Company announced its decision to relocate its Duarte, California operations to the Company’s newly renovated Drake Campus in Fort Collins, Colorado. Included in “Land and land improvements” and “Buildings and improvements” are assets held for use of $7,604 at March 31, 2018, which relate to the land, building and building improvements at the Duarte facility. The assets held for use are included in the Company’s Aerospace segment. The Company had no assets held for use recorded as of September 30, 2017. The Company has not yet determined which of the remaining assets at the Duarte facility, consisting mainly of machinery and equipment, will be sold or relocated to the renovated Drake Campus and therefore, has continued to depreciate these assets until a determination is made. The carrying value of the remaining assets at the Duarte facility was approximately $13,200 as of March 31, 2018.

The Company assessed whether the decision to relocate from its Duarte facility could indicate a potential impairment of the assets at the Duarte facility and concluded that the assets were not impaired as of March 31, 2018.

Included in “Office furniture and equipment” and “Other” is $1,653 at each of March 31, 2018 and September 30, 2017, of gross assets acquired on capital leases, and accumulated depreciation included $948 at March 31, 2018 and $739 at September 30, 2017 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 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 $40,792 at March 31, 2018 and $49,347 at September 30, 2017 associated with new equipment purchases for the greater-Rockford campus and costs of $29,644 at March 31, 2018 and $15,584 at September 30, 2017 associated with the renovation of the Drake Campus.

For the three and six-months ended March 31, 2018 and 2017, Woodward had depreciation expense as follows:



	Three-Months Ended				Six-Months Ended
	March 31,				March 31,
	2018		2017		2018		2017
Depreciation expense	$	15,754	$	13,663	$	30,581	$	26,118

For the three and six-months ended March 31, 2018 and 2017, Woodward capitalized interest that would have otherwise been included in interest expense of the following:



	Three-Months Ended				Six-Months Ended
	March 31,				March 31,
	2018		2017		2018		2017
Capitalized interest	$	633	$	481	$	1,234	$	953