

	September 30,		September 30,
	2019		2018
Land and land improvements	$	94,976	$	94,146
Buildings and building improvements		587,541		565,065
Leasehold improvements		17,446		17,954
Machinery and production equipment		731,159		668,986
Computer equipment and software		124,201		124,788
Office furniture and equipment		39,934		31,533
Other		19,346		19,366
Construction in progress		57,624		103,036
		1,672,227		1,624,874
Less accumulated depreciation		(613,452)		(564,869)
Property, plant, and equipment, net	$	1,058,775	$	1,060,005

In 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, and in fiscal year 2019, Woodward finalized the relocation. There are currently no operations in the Duarte, California facility, and the sale of the plant and related property is expected to close by March 31, 2020. The carrying value of the assets at the Duarte facility was $7,769 as of September 30, 2019, all of which the Company identified as assets held for sale as of that date. At September 30, 2018, the Company identified assets held for sale of $8,306. The majority of the assets held for sale are included in “Land and land improvements” and “Buildings and buildings improvements” which relate to the land, building and building improvements, and other assets at the Duarte

facility. The assets held for sale are included in unallocated corporate property, plant and equipment. Based on current market conditions, the Company expects to record a gain on the eventual sale of these assets. 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 September 30, 2019.

Included in “Construction in progress” are costs of $21,195 at September 30, 2019 and $32,248 at September 30, 2018 associated with new equipment purchases for the greater-Rockford, Illinois campus and costs of $239 at September 30, 2019 and $3,967 at September 30, 2018 associated with new equipment purchases and the renovation of the Drake Campus.

Included in “Office furniture and equipment” and “Other” is $1,562 at September 30, 2019 and $1,650 at September 30, 2018, of gross assets acquired on capital leases, and accumulated depreciation included $1,483 at September 30, 2019 and $1,158 at September 30, 2018 of amortization associated with the capital lease assets.

For the fiscal years ended September 30, 2019, 2018, and 2017, Woodward had depreciation expense as follows:



	Year Ended September 30,
	2019		2018		2017
Depreciation expense	$	85,982	$	71,389	$	55,140

For the fiscal years ended September 30, 2019, 2018, and 2017, Woodward capitalized interest that would have otherwise been included in interest expense of the following:



	Year Ended September 30,
	2019		2018		2017
Capitalized interest	$	779	$	2,187	$	2,008