NOTE 11: LEASES  NOTE 12: SEGMENT AND GEOGRAPHIC INFORMATION  Segment Financial Information  35 Applied Industrial Technologies, Inc. and Subsidiaries Service Center  Based Distribution Fluid Power  Businesses Total  Year Ended June 30, 2012  Net sales  $  1,904,564 $  470,881 $ 2,375,445  Operating income for reportable segments  135,240 43,236 178,476  Assets used in the business  731,915 230,268 962,183  Depreciation and amortization of property  9,403 1,833 11,236  Capital expenditures  24,339 1,682 26,021  Year Ended June 30, 2011  Net sales  $  1,770,798 $  442,051 $ 2,212,849 $_{ }$ Operating income for reportable segments  115,798 41,793 157,591 $_{ }$ Assets used in the business  700,486 214,445 914,931 $_{ }$ Depreciation and amortization of property  9,152 2,082 11,234 $_{ }$ Capital expenditures  19,392 1,039 20,431 $_{ }$ Year Ended June 30, 2010  Net sales  $  1,536,543 $  356,665 $ 1,893,208 $_{ }$ Operating income for reportable segments  77,029 26,794 103,823 $_{ }$ Assets used in the business  690,970 200,550 891,520 $_{ }$ Depreciation and amortization of property  9,336 2,129 11,465 $_{ }$ Capital expenditures  6,389 827 7,216 $_{ }$ The accounting policies of the Company’s reportable segments are generally the same as those described in Note 1. Sales primarily  from the Fluid Power Businesses segment to the Service Center Based Distribution segment of $18,097, $17,665 and $14,006, in  fiscal 2012, 2011 and 2010, respectively, have been eliminated in the table below.  The Company's reportable segments are: Service Center Based Distribution and Fluid Power Businesses. The Service Center Based  Distribution segment provides customers with solutions to their maintenance, repair and original equipment manufacturing needs  through the distribution of industrial products including bearings, power transmission components, fluid power components,  industrial rubber products, linear motion products, safety products, general maintenance and a variety of mill supply products. The  Fluid Power Businesses segment distributes fluid power components and operates shops that assemble fluid power systems and  components, performs equipment repair, and offers technical advice to customers.  Rental expenses incurred for operating leases, principally from leases for real property, vehicles and computer equipment were  $31,200 in 2012, $31,400 in 2011 and $30,700 in 2010. The Company leases its corporate headquarters facility along with many service center and distribution center facilities, vehicles and  equipment under non-cancelable lease agreements accounted for as operating leases. The minimum annual rental commitments  under non-cancelable operating leases as of June 30, 2012 are as follows: During Fiscal Years  2013  $  23,500 $_{ }$ 2014  18,000 $_{ }$ 2015  14,300 $_{ }$ 2016  9,600 $_{ }$ 2017  5,100 $_{ }$ Thereafter  11,100 $_{ }$ Total minimum lease payments  $  81,600 $_{ }$