APPLIED INDUSTRIAL TECHNOLOGIES INC 10-K

ITEM 2. PROPERTIES. We believe having a local presence is important to serving our customers, so we maintain service centers and other operations in local markets throughout the countries in which we operate. At June 30, 2022, we owned real properties at 113 locations and leased 411 locations. Certain properties house more than one operation. The following were our principal owned real properties (each of which has more than 50,000 square feet of floor space) at June 30, 2022: Location of Principal Owned Real Property Type of Facility Cleveland, Ohio Corporate headquarters Atlanta, Georgia Distribution center, service center, hose shop Florence, Kentucky Distribution center Baldwinsville, New York Offices, warehouse, and fluid power shop Carlisle, Pennsylvania Distribution center Fort Worth, Texas Distribution center and rubber shop Our principal leased real properties (each of which has more than 50,000 square feet of floor space) at June 30, 2022 were: Location of Principal Leased Real Property Type of Facility Fontana, California Distribution center, rubber shop, fluid power shop, and service center Newark, California Fluid power shop Midland, Michigan Flow control shop Strongsville, Ohio Offices and warehouse Portland, Oregon Distribution center Stafford, Texas Offices, warehouse, and flow control shop Longview, Washington Service center, rubber shop, and fluid power shop Nisku, Alberta Offices, service center, and shops Saskatoon, Saskatchewan Service center and shop The properties in Baldwinsville, Newark, Midland, and Stafford are used in our Fluid Power & Flow Control segment. The Fontana and Longview properties are used in both the Service Center Based Distribution segment and the Fluid Power & Flow Control segment. The remaining properties are used in the Service Center Based Distribution segment. We consider our properties generally sufficient to meet our requirements for office space and inventory stocking. A service center's size is primarily influenced by the amount and types of inventory the service center requires to meet customers' needs. When opening new operations, we have tended to lease rather than purchase real property. We do not consider any service center, distribution center, or shop property to be material, because we believe that, if it becomes necessary or desirable to relocate an operation, other suitable property could be found. In addition to operating locations, we own or lease certain properties which in the aggregate are not material and are either for sale, lease, or sublease to third parties due to a relocation or closing. We also may lease or sublease to others unused portions of buildings. 13 Table of Contents