Property, Plant, and Equipment

9 Months Ended

Jun. 30, 2020

Property Plant And Equipment Net [Abstract]

Note 12. Property, plant, and equipment

	June 30,			September 30,
	2020			2019
Land and land improvements	$	89,379		$	94,976
Buildings and building improvements		577,538			587,541
Leasehold improvements		18,029			17,446
Machinery and production equipment		753,709			731,159
Computer equipment and software		122,434			124,201
Office furniture and equipment		40,723			39,934
Other		19,479			19,346
Construction in progress		42,449			57,624
		1,663,740			1,672,227
Less accumulated depreciation		(655,481	)		(613,452	)
Property, plant, and equipment, net	$	1,008,259		$	1,058,775

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, and in fiscal year 2019, Woodward finalized the relocation. On December 30, 2019 the Company closed on the sale of one of two parcels of real property at Woodward’s former Duarte operations and recorded a pre-tax gain on sale of assets of $13,522 (see Note 18, Other (income) expense, net). The carrying value of the remaining parcel of Duarte real property is $2,520 as of June 30, 2020, all of which the Company has identified as an asset held for sale and is included in “Land and land improvements”. The asset held for sale is included in unallocated corporate property, plant, and equipment. Based on an existing real property purchase agreement and current market conditions, the Company expects to record an additional gain on the subsequent sale of the remaining parcel of real property, which is expected to close by September 30, 2020. 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 June 30, 2020 and September 30, 2019.

In the first quarter of fiscal year 2020, Woodward determined that the approved plan to divest of the disposal group (see Note 10, Sale of businesses) represented a triggering event requiring the long-lived assets attributable to the disposal group be assessed for impairment. Given the facts and circumstances at that time, Woodward determined that the remaining value of the plant, property and equipment of the disposal group was not recoverable and a $13,421 non-cash impairment charge was recorded during the nine-months ended June 30, 2020.

For the three and nine-months ended June 30, 2020 and 2019, Woodward had depreciation expense as follows:

	Three-Months Ended				Nine-Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Depreciation expense	$	22,378	$	21,665	$	68,101	$	62,998