PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Jul. 02, 2023

Property, Plant and Equipment [Abstract]

Property, plant and equipment consist of the following:


(in millions)	July 2, 2023		September 30, 2022
Land, buildings and improvements	$	84.0	$	75.7
Machinery, equipment and other	408.2		394.1
Finance leases	143.6		139.8
Construction in progress	71.3		54.7
Property, plant and equipment	707.1		664.3
Accumulated depreciation	(432.4)		(400.5)
Property, plant and equipment, net	$	274.7	$	263.8

Depreciation expense from property, plant, and equipment for the three month periods ended July 2, 2023 and July 3, 2022, was $12.1 million and $12.3 million, respectively; and for the nine month periods ended July 2, 2023 and July 3, 2022 was $36.2 million and $36.6 million, respectively.

During the three month period ended July 2, 2023, the Company completed the sale of two facilities in its EMEA region, primarily consisting of office space supporting the GPC segment, with total proceeds of $5.2 million and resulting in a gain on sale of $2.7 million, included as General and Administrative Expense on the Condensed Consolidated Statements of Income for the three and nine month period ended July 2, 2023.

During the nine month period ended July 2, 2023, the Company recognized a $2.7 million impairment charge on idle equipment associated with the early exit of a GPC warehouse lease, included as Selling Expense on the Condensed Consolidated Statements of Income for the nine month period ended July 2, 2023.

Additionally, during the three month period ended July 2, 2023, the Company recognized a $5.2 million impairment charge on a right of use operating lease asset for a GPC warehouse having a maturity date of December 2029, due to the exit of the GPC operations from the facility and the intention to sub-lease to a third-party, included as Selling Expense on the Condensed Consolidated Statements of Income for the three and nine month periods ended July 2, 2023. The partial impairment was measured using projected discounted cash flow for the facility, including an assumed sub-lease tenant, yet to be identified, at rental rates that are comparable to current market conditions.