v3.25.2
RELATED-PARTY TRANSACTIONS
 6 Months Ended
Jun. 27, 2025
Related Party Transactions [Abstract]  
RELATED-PARTY TRANSACTIONS
NOTE 13. RELATED-PARTY TRANSACTIONS
Allocations of Expenses Prior to the Distribution
Ralliant has historically operated as part of Fortive and not as a separate, publicly-traded company. Certain shared costs have been allocated to Ralliant by Fortive, and are reflected as expenses in these financial statements.
Management considers the allocation methodologies used to be reasonable and appropriate reflections of the related expenses attributable to Ralliant for purposes of the carved-out financial statements; however, the expenses reflected in the accompanying combined condensed financial statements may not be indicative of the actual expenses that would have been incurred during the periods presented if Ralliant had operated as a separate business or the expenses that will be incurred in the future by Ralliant.
For a full description of the Company’s related party transactions, see Note 15 in the Notes to the Combined Financial Statements included in the Company’s Information Statement filed as an exhibit to the Company’s Form 10-12B/A on May 28, 2025.
The amounts of related party expenses allocated to Ralliant from Fortive and its non-Ralliant subsidiaries were as follows:
Three Months EndedSix Months Ended
 June 27, 2025June 27, 2024June 27, 2025June 27, 2024
Allocated corporate expenses
$10.1 $10.9 $20.3 $20.4 
Directly attributable expenses:
Insurance programs expenses
1.8 1.7 3.6 3.3 
Medical insurance programs expenses
14.9 14.9 30.5 31.7 
Deferred compensation program expenses
0.6 0.2 1.3 0.6 
Total related party expenses$27.4 $27.7 $55.7 $56.0 
Revenue and Other Transactions Entered into in the Ordinary Course of Business
Certain of Ralliant’s revenue transactions related to contracts entered into in the ordinary course of business with Fortive and its affiliates. Ralliant’s sales to and purchases from Fortive and its non-Ralliant subsidiaries were not material during the three and six months ended June 27, 2025 and June 28, 2024.
Tax Matters Agreement
In connection with the Separation, the Company entered into a Tax Matters Agreement with Fortive, that governs the parties’ respective rights, responsibilities and obligations with respect to taxes, including responsibility for tax liabilities, entitlement to tax refunds and other tax benefits, allocation of tax attributes, preparation and filing of tax returns, control of audits and other tax proceedings and other matters relating to taxes. Pursuant to the terms of the Tax Matters Agreement, Ralliant expects to reimburse Fortive or pay taxing authorities directly for an amount asserted by Fortive to be approximately $50 million, with $16 million paid in July 2025, for certain tax transaction costs recognized upon Separation.
Separation and Distribution Agreement - Cash Adjustment
Pursuant to the terms of the Separation and Distribution Agreement, the Company is subject to cash adjustment provisions, with payment of such adjustments to be made within five business days of the determination of the applicable final cash balance. Pursuant to the adjustment provisions, if Ralliant’s aggregate cash balance at the time of the Separation, excluding any cash in certain restricted jurisdictions, is determined to have been greater than the reference cash balance of $150 million, Ralliant is obligated to pay Fortive the excess. Subsequent to the Separation, Fortive notified Ralliant the aggregate cash balance exceeded such reference cash balance by approximately $41 million and Ralliant paid Fortive in accordance with the terms of the Separation and Distribution Agreement.
Transition Services Agreement
In connection with the Separation, the Company entered into a transition services agreement with Fortive, pursuant to which Fortive and the Company will provide to each other certain specified services on a temporary basis, including various information technology, financial and administrative services. The charges for the transition services are based on arm’s length terms. The cost of these services are negotiated between the Company and Fortive as set forth in the transition services agreement. No material charges have been incurred under this agreement.