8-K

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: January 30, 2018

(Date of earliest event reported)

IBM CREDIT LLC

(Exact name of registrant as specified in its charter)

Delaware	000-55786	22-2351962
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(IRS employer identification number)

Armonk, New York	10504
(Address of principal executive offices)	(Zip Code)

914-765-1900

(Registrant’s telephone number)

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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

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. o

Item 2.02. Results of Operations and Financial Condition.

Summary Financials of the Registrant dated January 30, 2018, including summary earnings results and select balance sheet information for the fourth quarter and full year ended December 31, 2017, is Exhibit 99.1 of this Form 8-K.

The information in this Item 2.02, including the corresponding Exhibit 99.1, is hereby filed.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibit is being filed as part of this report:

Exhibit No.	Description of Exhibit
99.1	Summary Financials of the Registrant dated January 30, 2018, including summary earnings results and select balance sheet information for the fourth quarter and full year ended December 31, 2017.

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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.

Date: January 30, 2018
		IBM Credit LLC
	By:	/s/Adam Wilson
		Adam Wilson
		Vice President, Finance

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EX-99.1

Exhibit 99.1

IBM Credit LLC

Summary Financials - Fourth Quarter & Full Year 2017

(Unaudited)

	For the fourth quarter ended December 31,								For the year ended December 31,
($ in millions)	2017			2016			Yr.-to-Yr.		2017			2016			Yr.-to-Yr.
Revenue	$	427		$	439		(2.7	)%	$	1,702		$	1,840		(7.5	)%
Net margin	$	280		$	281		(0.6	)%	$	1,109		$	1,170		(5.2	)%
Net margin percentage	65.4		%	64.0		%	1.4	pts.	65.2		%	63.6		%	1.6	pts.
Net income from continuing operations (1)	$	374		$	136		175.2	%	$	750		$	498		50.7	%
Return on equity (1),(2)	44.1		%	14.0		%	30.2	pts.	22.2		%	13.7		%	8.5	pts.
Total assets									$	39,516		$	35,279		12.0	%
Total debt									$	30,477		$	27,030		12.8	%
Total member’s interest (1)									$	3,562		$	3,703		(3.8	)%
Debt-to-equity (1),(3)									8.6x			7.3x

(1)The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in a one-time benefit of $162 million in the fourth quarter. The net benefit encompasses several elements, including primarily the revaluation of deferred tax assets and liabilities, and a tax on accumulated foreign earnings. As a result, Net Income, Return on Equity and Member’s Interest increased and Debt-to-Equity was reduced in the fourth quarter and for the full-year 2017.

(2)The company’s return on equity is calculated by dividing net income from continuing operations by the average member’s interest for the last two quarters and five quarters on a continuing operations basis, for the quarter and year ending, respectively, for the reporting periods presented.

(3)The company’s debt-to-equity ratio is calculated by dividing the total amount of debt outstanding by the total amount of member’s interest in the company as of the end of the reporting periods presented.

Within the table presented, amounts may not add due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Forward-looking and Cautionary Statements

Certain statements contained in this report may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“Reform Act”). Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements by their nature address matters that are uncertain to different degrees. The company may also make forward-looking statements in other reports filed with the Securities and Exchange Commission and in materials delivered to lenders and in press releases. In addition, the company’s and IBM representatives may from time to time make oral forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Words such as “anticipates,” “believes,” “expects,” “estimates,” “intends,” “plans,” “projects” and similar expressions, may identify such forward-looking statements. Any forward-looking statement in this report speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements. In accordance with the Reform Act, set forth under Item 1A, “Risk Factors” in the company’s Form 10 filed with the SEC on May 5, 2017, and as amended on June 22, 2017, are cautionary statements that accompany those forward-looking statements. Readers should carefully review such cautionary statements as they identify certain important factors that could cause actual results to differ materially from those in the forward-looking statements and from historical trends. Those cautionary statements are not exclusive and are in addition to other factors discussed elsewhere in this report, in the company’s filings with the Securities and Exchange Commission or in materials incorporated therein by reference.