The 2016 Stock Incentive Plan (the “Stock Plan”), provides for the grant of stock appreciation rights, restricted stock units, and performance stock units (collectively, “Stock Awards”), stock options, or any other stock-based award. As of June 27, 2025, approximately 10 million shares of our common stock were available for subsequent issuance under the Stock Plan. For a full description of our Stock Plan, refer to Note 14 of our 2024 Annual Report on Form 10-K.

Stock-based compensation has been recognized as a component of Selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings based on the portion of the awards that are ultimately expected to vest.


	Three Months Ended				Six Months Ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Stock Awards:
Pretax compensation expense	$	22.4	$	15.6	$	43.3	$	37.1
Income tax benefit	(3.3)		(2.9)		(6.7)		(5.5)
Stock Award expense, net of income taxes	19.1		12.7		36.6		31.6
Stock options:
Pretax compensation expense	5.0		8.6		11.6		16.0
Income tax benefit	(0.6)		(1.2)		(1.6)		(2.3)
Stock option expense, net of income taxes	4.4		7.4		10.0		13.7
Total stock-based compensation:
Pretax compensation expense	27.4		24.2		54.9		53.1
Income tax benefit	(3.9)		(4.1)		(8.3)		(7.8)
Total stock-based compensation expense, net of income taxes	$	23.5	$	20.1	$	46.6	$	45.3

The following summarizes the unrecognized compensation cost for the Stock Awards and stock options as of June 27, 2025. This compensation cost is expected to be recognized over a weighted average period of approximately two years, representing the remaining service period related to the awards. Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions):

Subsequent to quarter-end, in connection with the Separation and in accordance with the employee matters agreement between Fortive and Ralliant, the Company has made certain adjustments to the exercise price and the number of stock-based awards with the intention of preserving the intrinsic value of the awards immediately prior to the Separation. Stock-based awards of Fortive held by employees who transferred to Ralliant in the Separation were converted into stock-based awards of Ralliant issued under Ralliant’s stock plan.