A transfer case (10) includes an input shaft (12), first and second output shafts (14, 16) and a planetary gearset (18) having a sun gear (74), a ring gear (70), a carrier (84, 90) and a pinion gear (78) meshingly engaged with the sun and ring gears. A range actuator (20) includes first, second and third range sleeves (22, 24, 26) abutted in series being axially translatable between a first position (H) to provide a drive connection between the input shaft (12) and the first output shaft (14), a second position (HL) providing a direct drive ratio connection between the input shaft (12) and the first output shaft (14) as well as the input shaft (12) and a second output shaft (16), and a third position (L) to provide a reduced speed drive ratio connection between the input shaft (12) and the first output shaft (14) as well as the input shaft (12) and the second output shaft (16). The gears of the planetary gearset (18) are not driven when the range sleeves are at the first and second positions.