Abstract: A vehicle transfer case (10) includes first and second planetary gear sets (68,70) and a selector (146) for selectively positioning (a) the first planetary gear set (68) in an operating position and the second planetary gear set (70) in a locked position to provide low speed driving without any differential action between first and second outputs (36,38) or (b) the first planetary gear set (68) in a locked or nonoperating position and the second planetary gear set (70) in an operating position to provide high speed driving with differential action between the first and second outputs (36,38). The second planetary gear set (70) which selectively provides the differential action between the first and second outputs (36,38) has components (106,108,122) all of which are rotatable about a central axis A, and planet gears (126,128) of the planet carrier component (122) are rotatable about axes parallel to the central axis.