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 |
|
(Commission File Number) |
|
(IRS employer identification number) |
Armonk, New York |
|
10504 |
(Address of principal executive offices) |
|
(Zip Code) |
914-765-1900
(Registrants 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 |
|
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 members 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 Members Interest increased and Debt-to-Equity was reduced in the fourth quarter and for the full-year 2017.
(2) The companys return on equity is calculated by dividing net income from continuing operations by the average members 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 companys debt-to-equity ratio is calculated by dividing the total amount of debt outstanding by the total amount of members 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 companys 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 companys 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 companys 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 companys filings with the Securities and Exchange Commission or in materials incorporated therein by reference.