Item 2. PROPERTIES

Our corporate headquarters is located in Cleveland, Ohio. We maintain approximately 137 manufacturing facilities which are used by the operating units that make up our three reportable segments: Power & Control, Airframe and Non-aviation. Most of our manufacturing facilities consist of manufacturing, distribution and engineering functions, and most facilities have certain administrative functions, including management, sales and finance and are a combination of leased and owned. The facilities are situated in 30 states within the United States and in 13 other countries. Our properties consist of sales and administrative offices and distribution centers as well as manufacturing plants. None of our facilities are individually material to our operations.

Management believes that our machinery, plants and offices are in satisfactory operating condition and that it will have sufficient capacity to meet foreseeable future needs without incurring significant additional capital expenditures.