Item 2. PROPERTIES

We operate through a broad network of production and assembly facilities, distribution centers, sales offices and engineering centers, across North America, Europe, Asia and Oceania. Our production and assembly facilities for the Allegion Americas business segment are primarily located in the United States, Mexico and Canada, and for the Allegion International business segment primarily in Australia, France, Germany, Italy, the Netherlands, New Zealand, Poland, Spain and the United Kingdom. Our active properties represent approximately 7.7 million square feet, of which approximately 45% is leased.

We own 16 of our 37 production and assembly facilities, with the remaining 21 under long-term lease arrangements. We believe our plants are well maintained, generally in good condition and suitable for the conduct of our business.