FALSE000196473800019647382024-08-082024-08-08

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 8, 2024
SOLVENTUM CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware
File No. 001-41968
92-2008841
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
3M Center, Building 275-6W 2510 Conway Avenue East, Maplewood, Minnesota
55144
(Address of Principal Executive Offices)
(Zip Code)
(Registrant’s Telephone Number, Including Area Code) (651) 733-1110
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, Par Value $.01 Per Share
SOLV
New York Stock Exchange
Securities registered pursuant to section 12(g) of the Act: None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company     ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the exchange Act.     ☐


Item 2.02. Results of Operations and Financial Condition
On August 8, 2024, Solventum issued a press release reporting second-quarter financial results and updated its 2024 financial guidance (attached hereunder as Exhibit 99.1 and incorporated herein by reference).
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit NumberDescription
104Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SOLVENTUM CORPORATION
By:
/s/ Matthew M. Rice
Matthew M. Rice
Vice President, Associate General Counsel & Assistant Secretary
Dated: August 8, 2024


Exhibit 99.1

Solventum Reports Second Quarter 2024 Financial Results and Raises Full-Year Guidance

•Separation activities and business continuity on track
•Reported sales increased 0.2% to $2.081 billion; organic sales increased 1.3%
•GAAP Earnings Per Share (EPS) of $0.51; adjusted EPS1 of $1.56
•Generated $355 million in cash from operations; free cash flow1 of $297 million
•Raises full-year 2024 organic sales growth and adjusted EPS guidance

ST. PAUL, Minn., August 8, 2024 /PRNewswire/ – Solventum (NYSE: SOLV) today reported financial results as a stand-alone company for the second quarter ended June 30, 2024.

“As we continue to execute a complex transformation, we’re encouraged by our first financial results as an independent company and early ability to maintain business continuity,” said Bryan Hanson, chief executive officer, Solventum. “We are starting from a solid foundation and remain focused on addressing historical underperformance and spin-related topics to unlock significant value creation over time.”

Second quarter 2024 financial results
3 months ended June 30, 2024
(Millions of dollars, except per share amounts)

GAAP
non-GAAP1
Sales$2,081$2,081
Operating income$244$430
Operating income margin11.7%20.7%
Earnings per share (EPS)$0.51$1.56
Cash from operations/free cash flow1
$355$297

Reported and organic sales growth reflect the expected normalizing of pricing. While volumes grew slightly, this included a benefit from a backorder improvement. By segment, organic sales growth was primarily driven by performance in our MedSurg and Health Information Systems segments, partially offset by results in our Dental Solutions and Purification and Filtration segments.

GAAP and adjusted operating income margin declined due to lower gross margins and an increase in operating expenses related to public company and functional stand-up costs. Both GAAP and adjusted EPS reflect a full quarter of interest expense.

1 Represents non-GAAP financial measure; see the “Non-GAAP Financial Measures” section for applicable information.

1

Segment Sales*
Three months ended June 30,
20242023Sales change 2024 vs 2023
(Dollars in millions)Net SalesNet SalesTotal Sales Change Translation
Other2
Organic Sales
MedSurg$1,162 $1,161 0.1 %(1.1)%(0.5)%1.8 %
Dental Solutions331 351 (5.8)(1.5)(2.4)(2.0)
Health Information Systems328 316 3.5 (0.1)— 3.6 
Purification and Filtration238 248 (3.6)(1.6)(1.2)(0.9)
Corporate and Unallocated3
22 — NMNMNMNM
Total Company$2,081 $2,076 0.2 %(1.1)%— %1.3 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.

2Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Divestiture impacts include lost sales from the company's dental anesthetics business that was sold in August 2023 and certain health care businesses retained by 3M India in connection with the spin-off.

3Corporate and unallocated includes sales related to product supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off.

Full-Year 2024 Guidance
Solventum is raising its full-year 2024 guidance
•Organic sales growth of 0% to +1.0% (previously -2% to 0%)
•Adjusted EPS of $6.30 to $6.50 (previously $6.10 to $6.40)
•Free cash flow of $700M to $800M (no change to prior guidance)

Organic revenue, adjusted EPS, free cash flow amounts and adjusted effective tax rate included in Solventum’s full-year guidance and additional considerations below are non-GAAP financial measures. Solventum does not provide reconciliations of the forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items, such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, timing and magnitude of restructuring activities, among other items.

Additional considerations:
•Wave 1 of the SKU rationalization project represents approximately 5% of total SKUs and is not expected to have a material impact on 2024 revenue or margin performance
•3M supply agreement mark-up started on April 1, 2024, and Solventum anticipates impact to the income statement to begin in Q3 2024
•Solventum now expects a full year adjusted effective tax rate range of 18% to 19% (previously 20% to 21%)

Solventum’s full-year 2024 guidance is based on Q1 2024 as a carve-out plus the remainder of the year as a stand-alone company starting April 1, 2024.

See the "Non-GAAP Financial Measures" section for explanations of our non-GAAP financial measures.

Earnings Conference Call
Solventum will host a conference call today, August 8, at 4:30 p.m. Eastern Time to discuss its second quarter financial results and provide an update on its business. The conference call can be accessed via audio webcast at investors.solventum.com or by dialing (800) 715-9871 within the U.S. or +1 (646) 307-1963 for international callers, using the conference ID 6342275.

2

A replay of the webcast, along with the earnings press release, slides highlighting the results, and supplemental financial disclosures, will also be available at the same link on the Investor Relations section of the company’s website.
Forward Looking Statement
This news release contains forward-looking information about Solventum's financial results and estimates and business prospects that involve substantial risks and uncertainties. In particular, statements regarding the future performance of Solventum, including guidance for 2024, are forward-looking statements. You can identify these statements by the use of words such as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "projects," "seeks," "sees," "should," "targets," "will," "would," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international, trade and geopolitical conditions, natural disasters, war, public health crises, and other events beyond Solventum's control; (2) operational execution risks; (3) damage to Solventum's reputation or its brands; (4) risks from acquisitions, strategic alliances, divestitures and other strategic events; (5) Solventum's business dealings involving third-party partners in various markets; (6) Solventum's ability to access the capital and credit markets and changes in Solventum's credit ratings; (7) exposure to interest rate and currency risks; (8) the highly competitive environment in which Solventum operates and consolidation in the healthcare industry; (9) reduction in customers' research budgets or government funding; (10) the timing and market acceptance of Solventum's new product and service offerings; (11) ongoing working relationships with certain key healthcare professionals; (12) changes in reimbursement practices of governments or private payers or other cost containment measures; (13) Solventum's ability to obtain components or raw materials supplied by third parties and other manufacturing and related supply chain difficulties, interruptions, and disruptive factors; (14) legal and regulatory proceedings and legal compliance risks (including third-party risks) with regards to antitrust, FCPA and other anti-bribery laws, environmental laws, anti-kickback and false claims laws, privacy laws, product liability claims, tax laws, and other laws and regulations in the United States and other countries in which Solventum operates; (15) potential liabilities related to per-and polyfluoroalkyl substances; (16) risks related to the highly regulated environment in which Solventum operates; (17) climate change and measures to address climate change; (18) security breaches and other disruptions to information technology infrastructure; (19) Solventum's failure to obtain, maintain, protect, or effectively enforce its intellectual property rights; (20) pension and postretirement obligation liabilities; (21) any events that adversely affect the sale or profitability of one of Solventum's key products or the revenue delivered from sales to its key customers; (22) any failure by 3M Company ("3M") to perform any of its obligations under the various separation agreements entered into in connection with the separation of Solventum from 3M and distribution (the "Separation"); (23) any failure to realize the expected benefits of the Separation; (24) Solventum's ability to execute its turnaround strategy; (25) a determination by the IRS or other tax authorities that the Separation or certain related transactions should be treated as taxable transactions; (26) indebtedness incurred in the financing transactions undertaken in connection with the Separation and risks associated with additional indebtedness; (27) the risk that incremental costs of operating on a standalone basis (including the loss of synergies), costs of restructuring transactions and other costs incurred in connection with the Separation will exceed Solventum's estimates; and (28) the impact of the Separation on Solventum's businesses and the risk that the Separation may be more difficult, time-consuming or costly than expected, including the impact on Solventum's resources, systems, procedures and controls, diversion of management's attention and the impact on relationships with customers, suppliers, employees and other business counterparties.

Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located under "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Information Statement included in Solventum's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Solventum assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.
3



Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S. GAAP, Solventum also provides non-GAAP measures that we use, and plan to continue using, when monitoring and evaluating operating performance and measuring cash available to invest in our business. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP financial measures are supplemental measures of our performance and our liquidity that we believe help investors understand our underlying business performance and Solventum uses these measures as an indication of the strength of Solventum and its ability to generate cash.

Solventum calculates forward-looking non-GAAP financial measures, including organic revenue growth, adjusted operating income, adjusted operating income margin, adjusted effective tax rate, adjusted earnings per share, and free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. Solventum does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, timing and magnitude of restructuring activities, among other items. The timing and amounts of these items are uncertain and could have a material impact on Solventum’s results in accordance with GAAP.

The Q2 2024 financial statements and financial information, including reconciliations of non-GAAP financial measures, are available on Solventum’s website: https://investors.solventum.com.
About Solventum
At Solventum, we enable better, smarter, safer healthcare to improve lives. As a new company with a long legacy of creating breakthrough solutions for our customers' toughest challenges, we pioneer game-changing innovations at the intersection of health, material and data science that change patients' lives for the better — while empowering healthcare professionals to perform at their best. See how at Solventum.com.

Solventum Investor Contact:
Kevin Moran
investors@solventum.com

Solventum Media Contact:
Michele Rest
news@solventum.com

4
Solventum Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(Dollars in millions, except per-share amounts)
(Unaudited)

Three months ended June 30,Six months ended June 30,
2024202320242023
Net sales of product$1,605 $1,607 $3,158 $3,157 
Net sales of software and rentals476 469 939 930 
Total net sales2,081 2,076 4,097 4,087 
Cost of product823 762 1,548 1,514 
Cost of software and rentals121 125 240 247 
Gross profit1,137 1,189 2,309 2,326 
Selling, general and administrative expenses701 579 1,297 1,156 
Research and development expenses192 193 387 388 
Total operating expenses1,837 1,659 3,472 3,305 
Operating income244 417 625 782 
Interest expense, net114 — 153 — 
Other expense (income), net34 4 47 6 
Income before income taxes 96 413 425 776 
Provision for income taxes 7 92 99 162 
Net Income$89 $321 $326 $614 
Earnings per share:
Basic earnings per share$0.51 $1.86 $1.89 $3.56 
Diluted earnings per share0.51 1.86 1.88 3.56 
Weighted-average number of share outstanding:
Basic173.2 172.7 172.9 172.7 
Diluted173.5 172.7 173.1 172.7 
5
Solventum Corporation
CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS
(Dollars in millions)
(Unaudited)

June 30,December 31,
(Millions)20242023
Assets
Current assets
Cash and cash equivalents$897 $194 
Accounts receivable — net of allowances of $83 and $82
1,028 1,313 
Due from related parties289 — 
Inventories
Finished goods 500 453 
Work in process 171 171 
Raw materials and supplies 228 233 
Total inventories 899 857 
Other current assets 250 155 
Total current assets 3,363 2,519 
Property, plant and equipment — net1,537 1,457 
Goodwill 6,447 6,535 
Intangible assets — net 2,724 2,902 
Other assets 507 530 
Total assets $14,578 $13,943 
Liabilities
Current liabilities
Accounts payable $495 $477 
Due to related parties611 — 
Unearned revenue505 574 
Other current liabilities960 677 
Total current liabilities 2,571 1,728 
Long-term debt 8,306 — 
Pension and postretirement benefits315 166 
Deferred income taxes214 231 
Other liabilities 305 152 
Total liabilities $11,711 $2,277 
Equity
Common stock par value, $0.01 par value, 750,000,000 shares authorized$2 $— 
Shares issued and outstanding - June 30, 2024: 172,710,593
Shares issued and outstanding - December 31, 2023: 0
Additional paid-in capital 3,719 — 
Retained earnings 89 — 
Net parent investment— 12,003 
Accumulated other comprehensive income (loss) — net (943)(337)
Total equity 2,867 11,666 
Total liabilities and equity $14,578 $13,943 
6
Solventum Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(Dollars in millions)
(Unaudited)
Six months ended June 30,
(Millions)20242023
Cash Flows from Operating Activities
Net income$326 $614 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 272 278 
Postretirement benefit plan expense19 21 
Stock-based compensation expense 60 26 
Deferred income taxes (56)(69)
Changes in assets and liabilities
Accounts receivable 70 (30)
Due from related parties131 — 
Inventories (57)(5)
Accounts payable 132 30 
Due to related parties(229)— 
All other operating activities129 10 
Net cash provided by operating activities 797 875 
Cash Flows from Investing Activities
Purchases of property, plant and equipment (160)(136)
Net cash used in investing activities (160)(136)
Cash Flows from Financing Activities
Net transfers to 3M(8,247)(761)
Proceeds from long-term debt, net of issuance costs8,303 — 
Other — net 10 — 
Net cash provided by (used in) financing activities 66 (761)
Effect of exchange rate changes on cash and cash equivalents — — 
Net increase (decrease) in cash and cash equivalents 703 (22)
Cash and cash equivalents at beginning of year 194 61 
Cash and cash equivalents at end of period$897 $39 




7
Solventum Corporation
SALES CHANGE ANALYSIS4
(Dollars in millions)
(Unaudited)
Business Segment Information*
Six months ended June 30,
20242023Sales Change 2024 vs 2023
(Dollars in millions)Net SalesNet SalesTotal Sales ChangeTranslationOtherOrganic Sales
MedSurg$2,281 $2,284 (0.1)%(0.8)%(0.3)%1.0 %
Dental Solutions666 692 (3.8)(0.9)(2.1)(0.8)
Health Information Systems645 632 2.0 — — 2.0 
Purification and Filtration483 479 0.9 (1.1)(0.6)2.6 
Corporate and Unallocated5
22 — NMNMNMNM
Total Company$4,097 $4,087 0.2 %(0.7)%(0.1)%1.1 %
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
4Total sales change is calculated based on reported sales results. The components of sales change include organic local-    currency sales, translation, and other. Organic local-currency sales include both organic volume impacts (which excludes acquisition and divestiture impacts, in addition to supply agreement and impacts) and selling price changes. Other represents sales impact from acquisitions and divestitures measured separately for the first 12 months post-transaction. Divestiture impacts include lost sales from the company's dental anesthetics business that was sold in August 2023 and certain health care businesses retained by 3M India in connection with the spin-off.
5Corporate and Unallocated also includes sales and cost of sales related to products supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off.
8
Solventum Corporation and Subsidiaries
BUSINESS SEGMENTS
(Unaudited)

Operating segments include components of an enterprise where separate financial information is available that is evaluated regularly by the company’s Chief Operating Decision Maker ("CODM") for the purpose of assessing performance and allocating resources. The company’s CODM is its Chief Executive Officer. The company's operating activities are managed through four operating segments: MedSurg, Dental Solutions, Health Information Systems, and Purification and Filtration. There have been no changes to the composition of the segments or to financial information reported within each of the business segments. These segments have been identified based on the nature of the products sold and how the company manages its operations. Transactions among reportable segments are recorded at cost. No operating segments have been aggregated to form reportable segments.
Corporate and Unallocated includes amortization of acquired intangible assets, restructuring and related charges, benefits or costs related to capitalized manufacturing variances, spin-off and separation related costs and other net costs that the company chose not to allocate directly to its business segments. Spin-off and separation related costs include any costs incurred as part of our separation from 3M and costs to setup operations as a standalone company, including system implementations, manufacturing relocation, legal entity separation, certain equity awards granted as part of the spin-off, profit mark-ups on transition service arrangements with 3M and other one-time costs.
Corporate and Unallocated also includes sales and cost of sales related to products supplied to 3M and other supply agreements related to legacy 3M business and assumed by the company at spin-off. Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. Business segment operating income is reconciled to total operating income below:
BUSINESS SEGMENT INFORMATION
Three months ended June 30, 2024Three months ended June 30, 2023
(Dollars in millions)Net SalesOperating IncomeOperating Margin %Net SalesOperating IncomeOperating Margin %
MedSurg$1,162 $214 18.4 %$1,161 $269 23.2 %
Dental Solutions331 90 27.2 351 124 35.3 
Health Information Systems328 111 33.8 316 96 30.4 
Purification and Filtration238 19 8.0 248 50 20.2 
Total business segment operating income$434 $539 
Corporate and Unallocated:
Amortization expense$(86)$(92)
Other Corporate and Unallocated(104)(30)
Total Corporate and Unallocated22 (190)NM— (122)NM
Total Company$2,081 $244 11.7 %$2,076 $417 20.1 %
9
Solventum Corporation
BUSINESS SEGMENTS
(Unaudited)
BUSINESS SEGMENT INFORMATION
Six months ended June 30, 2024Six months ended June 30, 2023
(Dollars in millions)Net SalesOperating IncomeOperating Margin %Net SalesOperating IncomeOperating Margin %
MedSurg$2,281 $435 19.1 %$2,284 $522 22.8 %
Dental Solutions666 200 30.0 692 235 34.0 
Health Information Systems645 212 32.9 632 190 30.1 
Purification and Filtration483 58 12.0 479 86 17.9 
Total business segment operating income$905 $1,033 
Corporate and Unallocated:
Amortization expense$(173)$(184)
Other Corporate and Unallocated(107)(67)
Total Corporate and Unallocated22 (280)NM— (251)NM
Total Company$4,097 $625 15.3 %$4,087 $782 19.1 %
10
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(Unaudited)
In addition to reporting financial results in accordance with U.S. GAAP, the company use non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. These include (1) Adjusted operating income, and adjusted operating income margin, (2) Adjusted earnings per share, and (3) Free cash flow. Managements believe that these non-GAAP financial measures are useful in evaluating current performance and focusing management on our underlying operational results.
There are limitations to the use of the non-GAAP financial measures presented in this information statement. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. Management cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP.
The tables below reconcile our non-GAAP financial measures to the nearest financial measure that is in accordance with U.S. GAAP for the periods presented.

Adjusted Operating Income, Adjusted Operating Income Margin and Adjusted Earnings Per Share (Non-GAAP measures)

Adjusted operating income and adjusted operating income margin are not defined under U.S. GAAP. Therefore, they should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted operating income as operating income excluding the effects of amortization, restructuring costs, and spin-off and separation-related costs. Adjusted operating income margin is adjusted operating income divided by the U.S GAAP measure total net sales for the same period. The company believes adjusted operating income and adjusted operating income margin provide investors with visibility into the company's unleveraged, pre-tax operating results and reflects underlying financial performance. However, adjusted operating income should not be construed as inferring that the company’s future results will be unaffected by the items for which the measure adjusts.

Adjusted earnings per share is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for earnings data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. Solventum defines adjusted earnings per share as net income excluding the after-tax effects of amortization, restructuring costs, spin-off and separation-related costs, and legal entity restructuring costs. The company believes adjusted earnings per share provides investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how the company evaluate the business. However, adjusted earnings per share should not be construed as inferring that the company’s future results will be unaffected by the items for which the measure adjusts.

11
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)

Three months ended June 30, 2024
(Dollars in millions, except per share amounts)Net sales
Cost of Sales6
Gross Margin %Operating ExpensesOperating IncomeOperating Income Margin %
Non-Operating Expense (Income), net7
Income Before Income TaxesNet Income Attributable to SolventumDiluted EPSEffective Tax Rate
GAAP$2,081 $944 54.6 %$1,837 $244 11.7 %$148 $96 $89 $0.51 7.3 %
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets— — — (86)86 4.1 — 86 72 0.41 
Restructuring costs (a)
— (3)0.2 (3)3 0.2 — 3 2 0.01 
Spin-off and separation-related costs (b)
— (21)1.0 (97)97 4.7 (26)123 104 0.61 
Legal entity restructuring (c)
— — — — — — — — 4 0.02 
Non-GAAP$2,081 $920 55.8 %$1,651 $430 20.7 %$122 $308 $271 $1.56 12.2 %

Three months ended June 30, 2023
(Dollars in millions, except per share amounts)Net sales
Cost of Sales6
Gross Margin %Operating ExpensesOperating IncomeOperating Income Margin %
Non-Operating Expense (Income), net7
Income Before Income TaxesNet Income Attributable to SolventumDiluted EPSEffective Tax Rate
GAAP$2,076 $887 57.3 %$1,659 $417 20.1 %$4 $413 $321 $1.86 22.3 %
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets— — (92)92 4.4 — 92 77 0.45 
Restructuring costs (a)
— (10)0.5 (30)30 1.5 — 30 24 0.13 
Non-GAAP$2,076 $877 57.8 %$1,537 $539 26.0 %$4 $535 $422 $2.44 21.1 %
__________________
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
(a)Consists of severance associated with restructuring programs.
(b)Consists of costs specifically incurred in connection with the separation from 3M.
(c)Consists of tax impacts for legal entity restructuring in connection with the separation from 3M.

6Cost of sales is the combination of cost of product and cost of software and rental line items from the Condensed Consolidated and Combined Statements of Income and represents the total company cost of sales.
7 Non-operating expense (income), net is the combination of interest expense, net and other expense (income), net line items from the Condensed Consolidated and Combined Statements of Income and represents the total company non-operating expense.
12
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)


Six months ended June 30, 2024
(Dollars in millions, except per share amounts)Net sales
Cost of Sales6
Gross Margin %Operating ExpensesOperating IncomeOperating Income Margin %
Non-Operating Expense (Income), net7
Income Before Income TaxesNet Income Attributable to SolventumDiluted EPSEffective Tax Rate
GAAP$4,097 $1,788 56.4 %$3,472 $625 15.3 %$200 $425 $326 $1.88 23.3 %
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets— — — (173)173 4.2 — 173 145 0.84 
Restructuring costs (a)
— (4)0.1 (12)12 0.3 — 12 8 0.05 
Spin-off and separation-related costs (b)
— (21)0.5 (104)104 2.5 (38)142 120 0.69 
Legal entity restructuring (c)
— — — — — — — — 31 0.18 
Non-GAAP$4,097 $1,763 57.0 %$3,183 $914 22.3 %$162 $752 $630 $3.64 16.2 %

Six months ended June 30, 2023
(Dollars in millions, except per share amounts)Net sales
Cost of Sales6
Gross Margin %Operating ExpensesOperating IncomeOperating Income Margin %
Non-Operating Expense (Income), net7
Income Before Income TaxesNet Income Attributable to SolventumDiluted EPSEffective Tax Rate
GAAP$4,087 $1,761 56.9 %$3,305 $782 19.1 %$6 $776 $614 $3.56 20.9 %
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets— — (184)184 4.5 — 184 154 0.89 
Restructuring costs (a)
— (11)0.3 (39)39 1.0 — 39 32 0.18 
Non-GAAP$4,087 $1,750 57.2 %$3,082 $1,005 24.6 %$6 $999 $800 $4.63 19.9 %
__________________
*Data in the schedule above is intentionally rounded to the nearest million and, therefore, may not sum.
(a)Consists of severance associated with restructuring programs.
(b)Consists of costs specifically incurred in connection with the separation from 3M.
(c)Consists of tax impacts for legal entity restructuring in connection with the separation from 3M.

6Cost of sales is the combination of cost of product and cost of software and rental line items from the Condensed Consolidated and Combined Statements of Income and represents the total company cost of sales.
7 Non-operating expense (income), net is the combination of interest expense, net and other expense (income), net line items from the Condensed Consolidated and Combined Statements of Income and represents the total company non-operating expense.
13
Solventum Corporation
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES – (CONTINUED)*
(Unaudited)

Free Cash Flow (non-GAAP measure):
Free cash flow is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The company believes free cash flow is meaningful to investors as it is a useful measure of liquidity and the company uses these measures as an indication of the strength of the company and its ability to generate cash. Free cash flow varies across quarters throughout the year. Below find a recap of free cash flow.
(Dollars in millions)Three months ended June 30,Six months ended June 30,
Major GAAP Cash Flow Categories2024202320242023
Net cash provided by operating activities$355 $366 $797 $875 
Net cash used in investing activities(58)(71)(160)(136)
Net cash provided by (used in) financing activities(396)(299)66 (761)
Free Cash Flow (non-GAAP measure)
Net cash provided by operating activities$355 $366 797 875 
Purchases of property, plant and equipment(58)(71)(160)(136)
Free cash flow*$297 $295 637 739 
__________________
*Non-GAAP financial measure.
14
v3.24.2.u1
Cover Page
Aug. 08, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 08, 2024
Entity Registrant Name SOLVENTUM CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 001-41968
Entity Tax Identification Number 92-2008841
Entity Address, Address Line Two 2510 Conway Avenue East
Entity Address, Address Line One 3M Center, Building 275-6W
Entity Address, City or Town Maplewood
Entity Address, State or Province MN
Entity Address, Postal Zip Code 55144
City Area Code 651
Local Phone Number 733-1110
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, Par Value $.01 Per Share
Trading Symbol SOLV
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001964738
Solventum (NYSE:SOLV)
Historical Stock Chart
From Aug 2024 to Sep 2024 Click Here for more Solventum Charts.
Solventum (NYSE:SOLV)
Historical Stock Chart
From Sep 2023 to Sep 2024 Click Here for more Solventum Charts.