Item 2. Properties
ITEM 2. PROPERTIES.
We believe having a local presence is important to serving our customers; therefore, we maintain service centers and other operations in local markets throughout the countries in which we operate. At June 30, 2026, we owned 109 and leased 433 real properties. 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, 2026:
Location of Principal Owned
Real Property Type of Facility
Cleveland, Ohio Corporate headquarters
Atlanta, Georgia Distribution center, service center, and hose and reducer assembly shops
Florence, Kentucky Distribution center and hose and reducer assembly shops
Baldwinsville, New York Fluid power shop
Carlisle, Pennsylvania Distribution center and hose shop
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, 2026, were:
Location of Principal Leased
Real Property Type of Facility
Fontana, California Distribution center, service center, and rubber and fluid power shops
Newark, California Fluid power shop
Midland, Michigan Flow control shop
Strongsville, Ohio Offices and warehouse
Portland, Oregon Distribution center and hose and reducer assembly shops
Sherwood, Oregon Automation operation
Austin, Texas Fluid power shop
Fort Worth, Texas Fluid power shop
Houston, Texas Fluid power shop
Stafford, Texas Offices, warehouse, and flow control shop
Longview, Washington Service center and rubber and fluid power shops
Appleton, Wisconsin Service center and rubber, hose and fluid power shops
Nisku, Alberta Distribution center, service center, and belt and rubber shops
Saskatoon, Saskatchewan Distribution center, service center, and fluid power shop
The properties in Baldwinsville, Newark, Midland, Stafford, Austin, Houston, and Fort Worth are used in our Engineered Solutions segment. The Fontana, Longview and Appleton properties are used in both the Service Center segment and the Engineered Solutions segment. The remaining properties are used in the Service Center 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 required 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 the above operating facilities, 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 unused portions of buildings to others.
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