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: April 18, 2019

(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)
Incorporation or Organization)

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:

☐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))

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 ☐

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.

Summary Financials of the Registrant dated April 18, 2019, including summary earnings results and select balance sheet information for the  first quarter ended March 31, 2019 and 2018, 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 April 18, 2019, including summary earnings results and select balance sheet information for the first quarter ended March 31, 2019 and 2018.

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: April 18, 2019
		IBM Credit LLC
	By:	/s/ Adam Wilson
		Adam Wilson
		Vice President, Finance

EX-99.1

Exhibit 99.1

IBM Credit LLC

Summary Financials -  First Quarter 2019

(Unaudited)

	For the three months ended March 31,						Yr.-to-Yr.
(Dollars in millions)	2019			2018			Change
Revenue	$	482		$	449		7.4	%
Net margin	$	277		$	300		(7.7)	%
Net margin percentage	57.4		%	66.8		%	(9.4)	pts.
Net income 1	$	43		$	149		(70.8)	%
Return on equity 1, 2	5.3		%	17.3		%	(12.1)	pts.

	At March 31,		At December 31,		Yr.-to-Date
(Dollars in millions)	2019		2018		Change
Total assets	$	35,217	$	39,497	(10.8)	%
Total debt	$	28,944	$	30,534	(5.2)	%
Total member's interest 1	$	3,164	$	3,420	(7.5)	%
Debt-to-equity 1, 3		9.1x		8.9x

1. In the first quarter of 2019, the company recorded an additional tax expense of $116 million related to guidance issued by the U.S. Treasury in January 2019 regarding U.S. tax reform repatriation tax. In accordance with the previously executed Tax Sharing Agreement between IBM and the company, $64 million of the resulting liability was settled through a non-cash contribution to member's interest.

2. The company’s return on equity is calculated by dividing annualized net income by the average ending balance of member’s interest for the last two quarters, 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’s 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-K filed with the SEC on February 27, 2019, 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.