In connection with the Separation, the Company incurred $22.6 million in Separation-related costs during the three months ended March 28, 2025, which were recorded within net earnings (loss) from discontinued operations in the Consolidated Condensed Statements of Earnings. These costs were primarily related to professional fees associated with finance, tax, legal, banking and information technology services as well as redundant general and administrative costs.

Fortive and Ralliant entered into various agreements to effect the Separation and provide a framework for their relationship after the Separation, including a separation and distribution agreement, a transition services agreement, an employee matters agreement, a tax matters agreement, an intellectual property matters agreement, a Fortive Business System (“FBS”) license agreement and a Fort solutions license agreement. These agreements provide for the allocation between Fortive and Ralliant of assets, employees, liabilities and obligations (including investments, property, employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Separation and govern certain relationships between Fortive and Ralliant after the Separation. The amounts paid and received by Fortive for transition services provided under the above agreements as well as sales and purchases to and from Ralliant were not material to the Company’s results of operations during the three months ended April 3, 2026.

The assets from discontinued operations were $4.8 million as of April 3, 2026, which consisted of receivables from Ralliant related to the tax matters agreement, and $20.8 million as of December 31, 2025, which consisted of receivables from Ralliant related to the tax matters agreement and pass through arrangements. During the three months ended April 3, 2026, we received $17.4 million of net cash payments from Ralliant as reimbursement for pass through costs paid on Ralliant’s behalf. This activity is recorded within operating cash provided by discontinued operations in the Consolidated Condensed Statement of Cash Flows.


	Three Months Ended
	March 28, 2025
Sales	$	481.1
Cost of sales	(237.7)
Selling, general and administrative expenses	(134.0)
Research and development expenses	(41.1)


Other expenses	(0.5)
Earnings (loss) from discontinued operations before income taxes	67.8
Income taxes	(8.5)
Net earnings from discontinued operations	$	59.3