Note 11. Property, plant, and equipment



	December 31,		September 30,
	2018		2018
Land and land improvements	$	93,958	$	94,146
Buildings and building improvements		566,562		565,065
Leasehold improvements		17,897		17,954
Machinery and production equipment		677,086		668,986
Computer equipment and software		125,272		124,788
Office furniture and equipment		32,210		31,533
Other		19,396		19,366
Construction in progress		109,325		103,036
		1,641,706		1,624,874
Less accumulated depreciation		(581,150)		(564,869)
Property, plant, and equipment, net	$	1,060,556	$	1,060,005

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. The Company has identified assets held for sale with a carrying value of $8,097 at December 31, 2018 and $8,306 at September 30, 2018, the majority of which 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 the Company’s Aerospace segment. The carrying value of the remaining assets at the Duarte facility was approximately $11,980 as of December 31, 2018, of which the Company has identified approximately $325 that is planned to be disposed of as a result of the relocation.

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 December 31, 2018.

Included in “Office furniture and equipment” and “Other” is $1,650 at December 31, 2018 and September 30, 2018, of gross assets acquired on capital leases, and accumulated depreciation included $1,261 at December 31, 2018 and $1,158 at September 30, 2018 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 $30,585 at December 31, 2018 and $32,248 at September 30, 2018 associated with new equipment purchases for the greater-Rockford, Illinois campus and costs of $7,555 at December 31, 2018 and $3,967 at September 30, 2018 associated with new equipment purchases and the renovation of the Drake Campus.

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

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

Three-Months Ended

December 31,

Depreciation expense