Item 2. PROPERTIES

We operate through a broad network of sales offices, engineering centers, 34 production and assembly facilities and several distribution centers throughout the world. Our active properties represent about 6.9 million square feet, of which approximately 37% is leased.

The majority of our plant facilities are owned by us with the remainder under long-term lease arrangements. We believe that our plants have been well maintained, are generally in good condition and are suitable for the conduct of our business.