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: October 21, 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)

One North Castle Drive
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))

Securities registered pursuant to Section 12(b) 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 (§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 October 21, 2019, including summary earnings results and select balance sheet information for the periods ended September 30, 2019, 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 exhibits are being filed as part of this report:

Exhibit No.	Description of Exhibit
99.1	Summary Financials of the Registrant dated October 21, 2019, including summary earnings results and select balance sheet information for periods ended September 30, 2019.
104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within 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.

Date: October 21, 2019
		IBM Credit LLC
	By:	/s/ Adam Wilson
		Adam Wilson
		Vice President, Finance

EX-99.1

Exhibit 99.1

IBM Credit LLC

Summary Financials for the Periods Ended September 30, 2019

(Unaudited)

	For the three months ended September 30,								For the nine months ended September 30,
(Dollars in millions)	2019			2018			Yr.-to-Yr.		2019			2018			Yr.-to-Yr.
Revenue	$	372		$	452		(17.6)	%	$	1,265		$	1,334		(5.2)	%
Net margin	$	212		$	268		(20.9)	%	$	719		$	827		(13.0)	%
Net margin percentage	56.9		%	59.2		%	(2.3)	pts.	56.9		%	62.0		%	(5.1)	pts.
Net income	$	109		$	144		(24.6)	%	$	265		$	410		(35.3)	%
Return on equity 1	16.6		%	17.1		%	(0.5)	pts.	12.0		%	16.1		%	(4.1)	pts.

	At September 30,		At December 31,		Yr.-to-Date
(Dollars in millions)	2019		2018		Change
Total assets	$	26,216	$	39,497	(33.6)	%
Total debt	$	22,337	$	30,534	(26.8)	%
Total member's interest	$	2,500	$	3,420	(26.9)	%
Debt-to-equity 2		8.9x		8.9x

1. The company’s return on equity for the three months ended September 30, 2019 and 2018, is calculated by dividing annualized net income by the average of the ending balance of member’s interest for the previous two quarters. The company’s return on equity for the nine months ending September 30, 2019 and 2018, is calculated by dividing annualized net income by the average of the ending balance of member’s interest for the previous four quarters.

2. 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. The information included in this Form 8-K should be read in conjunction with the Form 10-Q filed on August 5, 2019.

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 (SEC) 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. Except as otherwise required by law, 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 SEC or in materials incorporated therein by reference.

XML

Document and Entity Information	Oct. 21, 2019
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Oct. 21, 2019
Entity Registrant Name	IBM CREDIT LLC
Entity Incorporation, State or Country Code	DE
Entity File Number	000-55786
Entity Tax Identification Number	22-2351962
Entity Address, Address Line One	One North Castle Drive
Entity Address, City or Town	Armonk
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10504
City Area Code	914
Local Phone Number	765-1900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	None
No Trading Symbol Flag	true
Entity Central Index Key	0001225307
Amendment Flag	false