DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

NOTE 3. DISCONTINUED OPERATIONS

On the Distribution Date, the Company completed the PT Separation by distributing all of the issued and outstanding shares of Ralliant, the entity that was created to hold the corresponding businesses, to Fortive stockholders on a pro rata basis. To effect the Separation, the Company distributed to its stockholders one share of Ralliant common stock for every three shares of Fortive common stock held on June 16, 2025, the record date for the distribution. Fortive stockholders received cash in lieu of any fractional shares of Ralliant common stock that they would have received after application of this ratio.

In preparation for the Separation, on May 15, 2025, Ralliant entered into a credit agreement with a syndicate of banks and on June 27, 2025, borrowed $1.15 billion to fund the $1.15 billion cash dividend Ralliant made to Fortive prior to the Distribution Date (the “Ralliant Dividend”).

The accounting requirements for reporting Ralliant as a discontinued operation were met when the Separation was completed. Accordingly, the accompanying consolidated financial statements for all periods presented reflect this business as a discontinued operation.

In connection with the Separation, the Company incurred $112 million in Separation-related costs during the year ended December 31, 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 to 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 year ended December 31, 2025.

The key components of income from discontinued operations for the year ended months ended December 31, 2025 and December 31, 2024 were as follows ($ in millions):


	Year Ended December 31,
	2025		2024		2023
Sales	$	983.5	$	2,150.9	$	2,151.4
Cost of sales	(489.9)		(1,039.0)		(1,034.4)
Selling, general and administrative expenses	(339.9)		(522.0)		(396.4)
Research and development expenses	(83.0)		(162.7)		(160.8)
Gain on sale of property	—		63.1		—
Loss from divestiture	—		(25.6)		—
Other expenses	(0.5)		(1.4)		(2.0)
Earnings from discontinued operations before income taxes	70.2		463.3		557.8
Income taxes	(23.7)		(112.9)		(100.4)
Net earnings from discontinued operations	$	46.5	$	350.4	$	457.4

The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s Consolidated Condensed Balance Sheets as of December 31, 2024.


($ in millions)	December 31, 2024
ASSETS
Accounts receivable, net	$	284.1
Inventories	275.0
Prepaid expenses and other current assets	55.2
Total current assets, discontinued operations	614.3
Property, plant and equipment, net	200.2
Other non-current assets	146.2
Goodwill	2,940.0
Other intangible assets, net	809.6
Total other assets, discontinued operations	4,096.0
Total assets, discontinued operations	$	4,710.3
LIABILITIES
Trade accounts payable	$	252.0
Accrued expenses and other current liabilities	316.5
Total current liabilities, discontinued operations	568.5

Other long-term liabilities	403.8
Total liabilities, discontinued operations	$	972.3

The assets from discontinued operations as of December 31, 2025 were $20.8 million, which consisted of receivables from Ralliant related to the tax matters agreement and pass through arrangements. During the year ended December 31, 2025, we received cash payments from Ralliant of $135 million 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 Statement of Cash Flows.