A transmission is configured to transfer power between an input member, first and second torque machines and an output member and includes a transmission case, a differential gear set, first and second torque transfer clutches, a first torque machine rotatably operatively couplable to a first element of the differential gear set when the second torque transfer clutch is in an applied state, and a second torque machine rotatably operatively coupled to a second element of the differential gear set. The differential gear set is configured to transfer torque between the first torque machine and the output member in a first continuously variable mode when the first torque transfer clutch is in the applied state, and to transfer torque between the first and second torque machines and the output member in a second continuously variable mode when the second torque transfer clutch is in the applied state.