UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-K

x		Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
		For the year ended December 31, 2016
		For the year ended December 31, 2017
o		Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
		For the transition period from to

Commission File number 000-50210

ATEL Capital Equipment Fund IX, LLC

(Exact name of registrant as specified in its charter)


California		94-3375584
(State or other jurisdiction of incorporation or organization)		(I. R. S. Employer Identification No.)

The Transamerica Pyramid, 600 Montgomery Street, 9th Floor, San Francisco, California 94111

(Address of principal executive offices)

Registrant’s telephone number, including area code: (415) 989-8800

Securities registered pursuant to section 12(b) of the Act: None

Securities registered pursuant to section 12(g) of the Act: Limited Liability Company Units

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.Yes o No x

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Act of 1934.Yes o No x

Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer o		Accelerated filer o		Non-accelerated filer o (Do not check if a smaller reporting company)		Smaller reporting company x

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes o No x

State the aggregate market value of voting stock held by non-affiliates of the registrant: Not applicable

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.) Not applicable

The number of Limited Liability Company Units outstanding as of February 28, ~~2017~~2018 was 12,055,016.

DOCUMENTS INCORPORATED BY REFERENCE

Prospectus dated January 16, 2001, filed pursuant to Rule 424(b) (Commission File No. 333-47196) is hereby incorporated by reference into Part IV hereof.

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PART I

Item 1. BUSINESS

General Development of Business

ATEL Capital Equipment Fund IX, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on September 27, 2000 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities, primarily in the United States. The Managing Member of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2020.

Contributions in the amount of $600 were received as of December 31, 2000, $100 of which represented AFS’s continuing interest, and $500 of which represented the initial Member’s capital investment. The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On February 21, 2001, subscriptions for the minimum number of Units (120,000, representing $1.2 million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Company. On that date, the Company commenced operations in its primary business (acquiring equipment to engage in equipment leasing, lending and sales activities). As of April 3, 2001, the Company had received subscriptions for 753,050 Units ($7.5 million), thus exceeding the $7.5 million minimum requirement for Pennsylvania, and AFS requested that the remaining funds in escrow (from Pennsylvania investors) be released to the Company.

As of January 15, 2003, the offering was terminated. As of that date, the Company had received subscriptions for 12,065,266 Units ($120.7 million). Subsequent to January 15, 2003, Units totaling 10,250 were rescinded or repurchased and funds returned to investors (net of distributions paid and allocated syndication costs, as applicable). As of December 31, ~~2016~~2017, 12,055,016 Units remain issued and outstanding.

The Company’s principal objectives have been to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Company’s invested capital; (ii) generates regular distributions to the members of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), which ended on December 31, 2009 and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by the Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. On January 1, 2010, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement.

The Company has incurred debt to finance the purchase of a portion of its equipment portfolio. The amount of borrowings in connection with any equipment acquisition transaction was determined by, among other things, the credit of the lease, the terms of the lease, the nature of the equipment and the condition of the money market. There were no limits on the amount of debt that may be incurred in connection with any single acquisition of equipment subject to certain limits. The Company may not incur aggregate outstanding indebtedness in excess of 50% of the total cost of all equipment as of the date of the final commitment of the offering proceeds and, thereafter, as of the date of any subsequent indebtedness is incurred. The Company has borrowed amounts within such maximum debt level in order to fund a portion of its equipment acquisitions. There can be no assurance that such financing will continue to be available to the Company in the future.

Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 76 to the financial statements included in Item 8 of this report). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.

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Narrative Description of Business

The Company has acquired various types of equipment to lease pursuant to “Operating” leases and “High Payout” leases, whereby “Operating” leases are defined as being leases in which the minimum lease payments during the initial lease term do not recover the full cost of the equipment and “High Payout” leases recover at least 90% of such cost. It was the intention of AFS that a majority of the aggregate purchase price of equipment will represent equipment leased under operating leases upon final investment of the net proceeds of the offering and that no more than 20% of the aggregate purchase price of equipment would be invested in equipment acquired from a single manufacturer.

The Company has only purchased equipment under pre-existing leases or for which a lease will be entered into concurrently at the time of the purchase. Through December 31, ~~2016~~2017, the Company had purchased equipment with a total acquisition price of $177.8 million. The Company had also funded investments in notes receivable totaling $14.5 million through December 31, ~~2016~~2017.

The Company’s objective has been to lease a minimum of 75% of the equipment acquired with the net proceeds of the offering to lessees that (i) have an aggregate credit rating by Moody’s Investors Service of Baa or better, or the credit equivalent as determined by AFS, with the aggregate rating weighted to account for the original equipment cost for each item leased or (ii) are established hospitals with histories of profitability or municipalities. The balance of the original equipment portfolio may include equipment leased to lessees which, although deemed creditworthy by AFS, would not satisfy the general credit rating criteria for the portfolio. In excess of 75% of the equipment acquired with the net proceeds of the offering (based on original purchase cost) was originally leased to lessees with an aggregate credit rating of Baa or better or to such hospitals or municipalities, as described in (ii) above.

The equipment leasing industry is highly competitive. Equipment manufacturers, corporations, partnerships and others offer users an alternative to the purchase of most types of equipment with payment terms that vary widely depending on the lease term, type of equipment and creditworthiness of the lessee. The ability of the Company to keep the equipment leased and/or operating and the terms of the acquisitions, leases and dispositions of equipment depends on various factors (many of which are not in the control of AFS or the Company), such as raw material costs to manufacture equipment as well as general economic conditions, including the effects of inflation or recession, and fluctuations in supply and demand for various types of equipment resulting from, among other things, technological and economic obsolescence.

AFS limited the amount invested in equipment to any single lessee to not more than 20% of the aggregate purchase price of equipment owned at any time during the Reinvestment Period.

The business of the Company is not seasonal. The Company has no full time employees. AFS’ employees provide the services the Company requires to effectively operate. The cost of these services is reimbursed by the Company to AFS per the Operating Agreement.

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Equipment Leasing Activities

The Company has acquired a diversified portfolio of equipment. The equipment has been leased to lessees in various industries.

The following tables set forth the types of equipment acquired by the Company through December 31, ~~2016~~2017 and the industries to which the assets have been leased (dollars in thousands):


Asset Types	Purchase Price Excluding Acquisition Fees		Percentage of Total Acquisitions
Mining equipment	$	45,530		25.60	%
Materials handling		35,106		19.74	%
Transportation, other		17,169		9.65	%
Construction		16,352		9.20	%
Aviation		13,644		7.67	%
Transportation, rail		13,458		7.57	%
Marine vessels		13,283		7.47	%
Computers		6,143		3.45	%
Logging/Lumber		4,176		2.35	%
Manufacturing		4,004		2.25	%
Agriculture		1,152		0.65	%
Other		7,809		4.40	%
	$	177,826		100.00	%


Industry of Lessee	Purchase Price Excluding Acquisition Fees		Percentage of Total Acquisitions
Mining	$	44,228		24.87	%
Transportation, other		25,960		14.60	%
Manufacturing		19,256		10.83	%
Electronics		16,926		9.52	%
Retail		9,048		5.09	%
Oil/Gas		8,709		4.90	%
Health services		7,704		4.33	%
Communications		7,561		4.25	%
Transportation, rail		7,467		4.20	%
Wood/Lumber products		7,307		4.11	%
Transportation, marine		6,683		3.76	%
Construction		5,365		3.02	%
Paper products		4,549		2.56	%
Other		7,063		3.96	%
	$	177,826		100.00	%

~~From~~TABLE ~~inception~~OF ~~to December 31, 2016, the Company has disposed of certain leased assets as set forth below (in thousands):~~ CONTENTS

Asset Types	Original Equipment Cost Excluding Acquisition Fees		Sale Price		Gross Rents
Mining equipment	$	47,201	$	12,922	$	68,813
Materials handling		34,472		4,111		41,875
Construction		15,673		1,930		18,987
Transportation, other		14,949		3,969		13,945
Aviation		12,612		9,681		8,575
Computers		6,255		746		5,912
Manufacturing		5,036		1,306		5,274
Logging/Lumber		3,836		1,663		4,426
Marine vessels		1,832		—		2,481
Transportation, rail		707		356		579
Other		5,958		2,459		5,057
	$	148,531	$	39,143	$	175,924

From inception to December 31, 2017, the Company has disposed of certain leased assets as set forth below (in thousands):

Proceeds from sales of lease assets are not expected to be consistent from one period to another. The Company is a finite life equipment leasing fund, which had acquired leasing transactions during the period ending six years after completion of its public offering. On the termination of leases, assets may be re-leased or sold. Sales of assets are not scheduled and are created by opportunities within the marketplace. The Company sought to acquire and lease a wide variety of assets and to enter into leases on a variety of terms. Some assets will be expected to have little or no value for re-lease or sale upon termination of the initial leases, and the anticipated residual values are a key factor in pricing and terms structured for each lease. The Company’s goal is to seek maximum return on its leased assets. It will determine when and under what terms to dispose of such assets during the course of its term. For further information regarding the Company’s equipment lease portfolio performance, depreciation and impairment experience as of December 31, 2016 and 2015, see Note 5 to the financial statements, Investments in equipment and leases, net, as set forth in Part II, Item 8, Financial Statements and Supplementary Data.


Asset Types	Original Equipment Cost Excluding Acquisition Fees		Sale Price		Gross Rents
Mining equipment	$	47,201	$	12,922	$	68,813
Materials handling		34,543		4,118		41,972
Construction		15,955		1,992		19,538
Transportation, other		14,949		3,969		13,945
Aviation		13,035		9,683		9,355
Computers		6,255		746		5,912
Manufacturing		5,036		1,306		5,274
Logging/Lumber		4,176		1,728		4,994
Marine vessels		1,832		—		2,481
Transportation, rail		904		410		818
Other		5,958		2,459		5,057
	$	149,844	$	39,333	$	178,159

Proceeds from sales of lease assets are not expected to be consistent from one period to another. The Company is a finite life equipment leasing fund, which had acquired leasing transactions during the period ending six years after completion of its public offering. On the termination of leases, assets may be re-leased or sold. Sales of assets are not scheduled and are created by opportunities within the marketplace. The Company sought to acquire and lease a wide variety of assets and to enter into leases on a variety of terms. Some assets will be expected to have little or no value for re-lease or sale upon termination of the initial leases, and the anticipated residual values are a key factor in pricing and terms structured for each lease. The Company’s goal is to seek maximum return on its leased assets. It will determine when and under what terms to dispose of such assets during the course of its term. For further information regarding the Company’s equipment lease portfolio performance, depreciation and impairment experience as of December 31, 2017 and 2016, see Note 4 to the financial statements, Investments in equipment and leases, net, as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

Notes Receivable Activities

The Company finances a diversified portfolio of assets in diverse industries. The following tables set forth the types of assets financed by the Company through December 31, ~~2016~~2017 and the industries to which the assets have been financed (dollars in thousands):


Asset Types	Amount Financed Excluding Acquisition Fees		Percentage of Total Fundings
Computers	$	3,880		26.81	%
Aircraft		2,680		18.52	%
Storage facility		2,503		17.29	%
Research		1,977		13.66	%
Manufacturing		1,083		7.48	%
Telecommunications		503		3.48	%
Furniture/Fixtures		320		2.21	%
Other		1,528		10.55	%
	$	14,474		100.00	%

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Industry of Borrower	Amount Financed Excluding Acquisition Fees		Percentage of Total Fundings
Manufacturing	$	4,086		28.23	%
Communications		3,360		23.21	%
Transportation		2,680		18.52	%
Business services		1,911		13.20	%
Health services		1,440		9.95	%
Waste and recycling		500		3.45	%
Electronics		350		2.42	%
Industrial machinery		147		1.02	%
	$	14,474		100.00	%

From inception to December 31, ~~2016~~2017, assets financed by the Company that are associated with terminated loans are as follows (in thousands):

Asset Types	Amount Financed Excluding Acquisition Fees		~~Disposition~~Early Terminationof Notes Proceeds		Total Payments Received
Computers	$	3,880	$	264	$	3,460
Aircraft		2,680		1,360		3,864
Storage facility		2,503		—		3,623
Research		1,977		79		1,752
Manufacturing		1,083		—		1,127
Telecommunications		503		287		374
Furniture/Fixtures		320		—		272
Other		1,528		338		1,483
	$	14,474	$	2,328	$	15,955

The Company operates in one reportable operating segment in the United States. For further information regarding the Company’s geographic revenues and assets, and major customers, see Notes 2 and 3 to the financial statements as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

Item 2. PROPERTIES

The Company does not own or lease any real property, plant or material physical properties other than the equipment held for lease as set forth in Item 1, Business.

Item 3. LEGAL PROCEEDINGS

In the ordinary course of conducting business, there may be certain claims, suits, and complaints filed against the Company. In the opinion of management, the outcome of such matters, if any, will not have a material impact on the Company’s financial position or results of operations. No material legal proceedings are currently pending against the Company or against any of its assets.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

Item 5.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

There are certain material conditions and restrictions on the transfer of Units imposed by the terms of the Operating Agreement. Consequently, there is no public market for Units and it is not anticipated that a public market for Units will develop. In the absence of a public market for the Units, there is no currently ascertainable fair market value for the Units.

Holders

As of December 31, ~~2016~~2017, a total of 3,~~080~~074 investors were Unitholders of record in the Company.

Fund Valuation

Background to Fund Valuation

The Financial Industry Regulatory Authority (“FINRA”), in conjunction with the Securities and Exchange Commission (“SEC”) updated rules for the presentation of account statement values relative to pricing of Direct Placement Program (“DPP”) shares. Under FINRA Notice 15-02 (the “Notice”) the SEC approved amendments to National Association of Securities Dealers (“NASD”) Rule 2340, Customer Account Statements, and FINRA rule 2310, which address a FINRA member firm’s participation in a public offering of a DPP. In summary the amendments require a FINRA member firm to include in the account statements for customers holding DPP securities a per share value for the DPP. This per share value must be prepared by, or with the material assistance or confirmation of, a third-party valuation expert or service. The results of this valuation must be disclosed in the issuer’s reports filed under the Securities Exchange Act of 1934. A valuation in compliance with the Notice must be undertaken and published on at least an annual basis.

The effective date of the Notice was April 11, 2016.

Methodologies

Broker dealers are required to provide a per share estimated value on the customer account statements for each non-listed DPP security held by their customers. Such estimated value must have been developed in a manner reasonably designed to provide a reliable value. Two valuation methodologies have been defined by FINRA, which by such designation are presumed to be reliable.

Net Investment Methodology

The amendments to NASD Rule 2340(c)(1)(A) require “net investment” to be based on the “amount available for investment” percentage disclosed in the “Estimated Use of Proceeds” section of the issuer’s offering prospectus. In essence, such value is equal to the offering price less selling commissions, other offering and organization expenses, and capital reserves. This method may be used for up to 150 days following the second anniversary of a Fund breaking escrow.

Appraised Value Methodology

As amended, Rule NASD 2340(c)(1)(B) requires that the per share estimated value disclosed in an issuer’s most recent periodic or current report be based upon an appraisal of the assets and liabilities of the program by, or with the material assistance or confirmation of, a third-party valuation expert or service, in conformity with standard industry valuation practice as it relates to both the aforementioned assets and liabilities. No later than 150 days following the second anniversary of the issuer’s break of escrow for its minimum offering, this methodology must be used to establish the required estimated values.

Unit Valuation

The per Unit valuation estimate for ATEL CAPITAL EQUIPMENT FUND IX, LLC has been conducted, and the results disclosed herein, in compliance with the mandates of the Notice.

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For ATEL CAPITAL EQUIPMENT FUND IX, LLC, its estimated value per Unit reflects the Manager’s estimate of current portfolio valuation of all assets and liabilities of the Fund, calculated on a per Unit basis, and as such, does not represent a market value for the Units and may not accurately reflect the value of the Fund Units to the Unit holders if held over time to Fund maturity.

In connection with any estimate of per Unit value, Unit holders and all parties are reminded that no public market for the Units exists. Additionally, in order to preserve the Fund’s pass-through status for federal income tax purposes, the Fund will not permit a secondary market or the substantial equivalent of a secondary market for the Units. In the absence of a public market for the Units, there is no currently ascertainable fair market value for the Units.

The estimate of per Unit value does not take into account any extraordinary potential future business activity of the Fund; rather the valuation represents a snapshot view of the Fund’s portfolio as of the valuation date. In addition, the Fund does not include any analysis of the distributions that have already been paid by the Fund, nor the anticipated returns to Unit holder over the full course of the Fund life cycle, which will be dependent on many factors.

Disclosure

The estimated value per Unit reported in this Form 10-K has been calculated using the “Appraised Value Methodology” described above under “Methodologies” above, as of December 31, ~~2016~~2017.

ATEL CAPITAL EQUIPMENT FUND IX, LLC, will satisfy the disclosure requirements for providing estimated per Unit values pursuant to the Notice as follows:

For these disclosures, subsequent to the Fund’s initial compliance with FINRA 15-02, annual disclosures of estimated per Unit values, through the termination of the Fund, will be accomplished and included on an annual basis in a document filed with the Securities and Exchange Commission available to the public.

Specifics Underlying Valuation Methodology:

Notes and Explanation of Valuation Components and Calculation

A. Fund Assets and Liabilities (other than as specifically identified below): The estimated values for non-interest bearing items such as current assets and liabilities are assumed to equal their reported GAAP balances as an appropriate approximation of their fair values. Debt (interest bearing) is assumed to equal the fair values of the debt as disclosed in the footnotes of the ~~10-K~~financial statements.

Investments in Leases (net of fees and expenses): The estimated values for Investments in Leases are based on calculating the present value of the projected future cash flows. Projected future cash flows include both the remaining contractual lease payments, plus assumptions on lease renewals and sale value of the residuals. Projected future cash flows are net of projected future fees and expenses including:

•

management fees applicable for the Fund (3.50% of revenues)

•

carried interest applicable for the Fund (7.50% of distributions)

• operating expenses which are assumed to be ~~2.50~~3% of original equipment costs for the Fund

Projected future cash flows have been discounted back to present value at discount rates based on like-term U.S. Treasury yields (as of the valuation date) plus a ~~300~~400 basis point spread, to account for the credit risk differentials between the instrument being valued and U.S. Treasury security yields.

Residual values assumptions used in the cash flow projections are as follows:

For On-Lease and Month-to-Month Lease: Considers realized residual as a percent of book residual of ~~162~~165.89%, based on ATEL’s historical track record as of December 31, ~~2016~~2017. ~~In addition, an annual inflation rate of 2.5% has been assumed.~~

For Off-Lease: A fair market value of lease equipment is based on estimates from ATEL’s seasoned Asset Management Group.

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Special Situation Leases: The valuation of certain leases has been performed outside of the above noted protocol based upon specific lease assumptions different than the macro assumptions above, due to the specific situations of those leases.

Investments in Notes Receivable: The estimated values for Investments in Notes Receivable are assumed to approximate the reported GAAP balances.

D. Investments in ~~Marketable~~ Securities: The estimated values for ~~Marketable~~Investments in Securities have been based on the estimated net book value as of the valuation date (with impairment adjustments), plus any unrealized gain on equity. The unrealized gain on equity is based on either: a) the most recent round of financing, b) the most recent 409A valuation provided by the underlying companies of the warrants, or c) the Manager’s estimate of the company valuations based on all available information, including company financials, company valuation reports, public press releases, and other sources.

Warrants Outstanding: The estimated values for Warrants Outstanding considers the reported GAAP balances to be an appropriate approximation of their fair values.

Accrued distributions: Accrued distributions, which are payable to the Unit holders have been removed from the balance sheet liability section because they are not a liability to a third party.

ATEL CAPITAL EQUIPMENT FUND IX, LLC Unit Valuation

The Manager’s estimated per Unit value of ATEL CAPITAL EQUIPMENT FUND IX, LLC at December 31, ~~2016~~2017 as determined, and derived under the guidelines of the Appraised Value Methodology, and pursuant to the above specific enumerated component valuation methodologies and calculations, equals $0.9152. An independent national public accounting firm with valuation expertise was retained to examine, attest and confirm ATEL CAPITAL EQUIPMENT FUND IX, LLC’s per Unit valuation and its component methodologies and calculation as it relates to compliance with the regulatory mandate defined in the Notice. In this regard, they examined the components of the valuation methodologies and determined them to be reasonable and within industry standards. Other component attributes, including the bases and related key assumptions of the calculation were tested for their completeness, underlying documentation support and mathematical accuracy. Upon completion of their efforts, their attestation report confirmed that the per unit valuation of ATEL CAPITAL EQUIPMENT FUND IX, LLC, and the related notes, in all material respects, was based upon industry practice as described in the Manager’s valuation approach.

Disclaimer

The foregoing Fund per Unit valuation has been performed solely for the purpose of providing an estimated value per Unit in accordance with a regulatory mandate, in order to provide the broker dealer and custodian community with a valuation on a reasonable and attested basis for use in assigning an estimation of a Unit holder’s account value. Any report or disclosure of such estimated per Unit valuation is to be accompanied by statements that the value does not represent an estimate of the amount a Unit holder would receive if the Unit holder were to seek to sell the Units, and that the Fund intends to liquidate its assets in the ordinary course of its business and over the Fund’s term. Further, each statement of the Fund’s estimated per Unit valuation is to be accompanied by a disclosure that there can be no assurance as to (1) when the Fund will be fully liquidated, (2) the amount the Fund may actually receive if and when the Fund seeks to liquidate its assets, (3) the amount of lease or loan payments the Fund will actually receive over the remaining term, (4) the amount of asset disposition proceeds the Fund will actually receive over the remaining term, and (5) the amounts that may actually be received in distributions by Unit holders over the course of the remaining term.

Distributions

The Unitholders of record are entitled to certain distributions as provided under the Operating Agreement. AFS has sole discretion in determining the amount of distributions; provided, however, that AFS will not reinvest in equipment, but will distribute, subject to payment of any obligations of the Company. The Company commenced periodic distributions, based on cash flows from operations, beginning with the month of February 2001.

The monthly distributions were discontinued in 2010 as the Company entered its liquidation phase. A total of four periodic distributions were paid in ~~2016~~2017 and ~~2015~~2016. During ~~2016~~2017, the rate was $0.1020 per Unit for the first quarter distribution and $0.04 per Unit for each of the remaining three quarters. During 2016, the rate was $0.10 per Unit for

~~distribution,~~TABLE ~~$0.09~~OF per Unit for the second quarter distribution, $0.05 per Unit for the third quarter distribution and $0.18 for the fourth quarter distribution. During 2015, the rate for each quarterly distribution was $0.10 per Unit. The rates and frequency of periodic distributions paid by the Fund during its liquidation phase are solely at the discretion of the Manager. CONTENTS

the first quarter distribution, $0.09 per Unit for the second quarter distribution, $0.05 per Unit for the third quarter distribution and $0.18 per Unit for the fourth quarter distribution. The rates and frequency of periodic distributions paid by the Fund during its liquidation phase are solely at the discretion of the Manager.

The following table presents summarized information regarding distributions to members other than the Managing Member (“Other Members”):

	2016		2015
	2017		2016
Net income per Unit, based on weighted average Units outstanding	$	0.2305	$	0.2223
Return of investment		0.1927		0.1819
Distributions declared per Unit, based on weighted average Other Member Units outstanding		0.4232		0.4042
Differences due to timing of distributions		—		—
Actual distributions paid per Unit	$	0.4232	$	0.4042

Item 6.

SELECTED FINANCIAL DATA

A smaller reporting company is not required to present selected financial data in accordance with item 301(c) of Regulation S-K.

Item 7.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Statements contained in this Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”) and elsewhere in this Form 10-K, which are not historical facts, may be forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. In particular, economic recession and changes in general economic conditions, including fluctuations in demand for equipment, lease rates, and interest rates, may result in delays in investment and reinvestment, delays in leasing, re-leasing, and disposition of equipment, and reduced returns on invested capital. The Company’s performance is subject to risks relating to lessee defaults and the creditworthiness of its lessees. The Fund’s performance is also subject to risks relating to the value of its equipment at the end of its leases, which may be affected by the condition of the equipment, technological obsolescence and the markets for new and used equipment at the end of lease terms. Investors are cautioned not to attribute undue certainty to these forward-looking statements, which speak only as of the date of this Form 10-K. We undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Form 10-K or to reflect the occurrence of unanticipated events, other than as required by law.

Overview

ATEL Capital Equipment Fund IX, LLC (the “Company” or the “Fund”) is a California limited liability company that was formed in September 2000 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to generate revenues from equipment leasing, lending and sales activities, primarily in the United States. The Managing Member of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company.

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. The offering was terminated in January 2003. During early 2003, the Company completed its initial acquisition stage with the investment of the net proceeds from the public offering of Units. Subsequently, during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), the Company utilized its credit facilities and reinvested cash flow in excess of certain amounts required to be distributed to the Other Members to acquire additional equipment.

The Company may continue until December 31, 2020. However, pursuant to the guidelines of the Limited Liability Company Operating Agreement (“Operating Agreement”), the Company commenced liquidation phase activities subsequent to the end of the Reinvestment Period which ended on December 31, 2009. Periodic distributions will be paid at the discretion of the Managing Member.

Results of Operations

It was the Company’s objective to maintain a 100% utilization rate for all equipment purchased in any given year. All equipment transactions were acquired subject to binding lease commitments, so equipment utilization was expected to remain high throughout the reinvestment stage. Initial lease terms of these leases were generally from 36 to 120 months, and as they expired, the Company attempted to re-lease or sell the equipment; as such, utilization rates tended to decrease during the liquidation stage of the Company. All of the Company’s equipment on lease was acquired in the years 2001 through 2010. The utilization percentage of existing assets under lease was 88% and 96% as of December 31, 2016 and 2015, respectively. The decrease in utilization percentage was primarily a result of the transfer of certain lease equipment from revenue producing leases to inventory.

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120 months, and as they expired, the Company attempted to re-lease or sell the equipment; as such, utilization rates tended to decrease during the liquidation stage of the Company. All of the Company’s equipment on lease was acquired in the years 2001 through 2010. The utilization percentage of existing assets under lease was 94% and 88% as of December 31, 2017 and 2016, respectively.

Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred. AFS believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location.

The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be recovered in future years to the extent of the cumulative limit. As of December 31, ~~2016~~2017, the Company has not exceeded the annual and/or cumulative limitations discussed above.

20162017 versus 20152016

The Company had net income of $~~3.2~~873 ~~million~~thousand, and $3.12 million for the years ended December 31, ~~2016~~2017 and ~~2015~~2016, respectively. The net results for ~~2016~~2017 reflected decreases in both total revenues and total operating expenses when compared to prior year.

Revenues

Total revenues for ~~2016~~2017 decreased by $~~932~~2.5 ~~thousand~~million, or 1650%, as compared to prior year. Such decrease was largely due to a $1.23 million, or 3191%, ~~reduction~~reduced ingain ~~operating~~on ~~lease~~sales ~~revenues~~of ~~and~~lease ~~was~~assets ~~mainly~~primarily due to ~~the~~a ~~impact~~change ofin ~~continued~~the ~~run-off~~volume and ~~sales~~mix of ~~lease~~ assets ~~as well as a reduction in usage-based rental income~~sold; ~~and~~ a $~~854~~1 ~~thousand~~million, or 46100%, ~~decrease~~reduction in revenues from direct financing ~~lease revenues~~leases, ~~largely~~the ~~due~~result toof run-off of the portfolio; ~~and~~as ~~was~~well ~~offset,~~as inthe ~~part,~~sales byof anlease ~~increase~~assets; ofand a $~~1.2~~252 ~~million~~thousand, onor ~~the~~10%, ~~gain~~decrease onin ~~sales~~operating of lease ~~assets~~revenues, ~~and~~also ~~early~~the ~~termination~~result of ~~notes~~continued ~~receivable,~~portfolio ~~primarily~~run-off ~~due~~and ~~to a change in~~ the ~~mix~~sales of ~~assets~~lease ~~sold~~assets.

Expenses

Total expenses for ~~2016~~2017 decreased by ~~a net~~ $~~1.0~~226 ~~million~~thousand, or 3512%, as compared to prior year. Such net decrease in total expenses was largely athe result of a $~~459~~116 thousand, or 5153%, ~~reduction~~decrease in ~~depreciation~~asset ~~expense,~~management ~~mostly~~fees to the ~~result~~Managing Member, reflecting a diminished level of ~~run-off~~operating and ~~sales~~direct offinance lease ~~assets,~~revenues ~~and~~which anis ~~increase~~consistent inwith the ~~number~~Company’s ofcontinued ~~assets~~liquidation ~~that~~phase ~~have~~activities; ~~been~~a ~~fully~~$112 ~~depreciated~~thousand, or a 100% reduction in interest expense since ~~December~~the ~~31,~~Company ~~2015~~did not have any outstanding borrowings during 2017; aand an $~~283~~89 thousand, or 7282%, ~~reduced~~decrease ~~interest~~in ~~expense~~marine ~~burden,~~vessel ~~corresponding~~maintenance and other operating costs due to aperiodic maintenance $3that was completed in 2016.9 ~~million~~Partially ~~net~~offsetting ~~reduction~~these, and other reductions in ~~outstanding~~expense, ~~borrowings;~~was a $~~132~~31 thousand, or ~~100~~38%, ~~diminishment~~increase in ~~impairment~~outside ~~losses~~services, ~~attributable~~and toa ~~fair~~$25 ~~value~~thousand, ~~adjustments~~or ~~recorded~~22%, increase in ~~2015~~professional tofees, ~~reduce~~that ~~the~~are ~~value~~indicative of ~~certain~~ ~~agricultural~~additional ~~equipment~~efforts ~~based~~required onto ~~information~~comply ~~and/or~~with ~~pricing~~certain ~~quotes~~regulatory ~~from third party remarketing agents~~requirements; and a $~~122~~24 thousand, or 246%, ~~fall~~increase in ~~costs~~cost ~~reimbursed~~reimbursement to the ~~Manager,~~managing ~~reflecting~~member aand/or ~~lesser~~affiliates, ~~allocation~~the result of ~~operating~~higher ~~costs~~indirect ~~coincidental~~cost ~~with~~allocations, ~~the~~a ~~Company’s~~result ~~continued~~of ~~liquidation~~refinement of cost allocation methodology.

Capital Resources and Liquidity

At December 31, ~~2016~~2017 and ~~2015~~2016, the Company’s cash and cash equivalents totaled $~~3.4~~441 ~~million~~thousand, and $23.24 million, respectively. The liquidity of the Company varies, increasing to the extent cash flows from leases and proceeds of asset sales exceed expenses and decreasing as distributions are made to the Members and to the extent expenses exceed cash flows from leases and proceeds from asset sales.

The primary source of liquidity for the Company is its cash flow from leasing activities. As initial lease terms expire, the Company re-leases or sells the equipment. The future liquidity beyond the contractual minimum rentals will depend on the Company’s success in remarketing or selling the equipment as it comes off-rental.

The Company currently believes it has available adequate reserves to meet its immediate cash requirements and those of the next twelve months, but in the event those reserves were found to be inadequate, the Company would likely be in a position to borrow against its current portfolio to meet such requirements. ~~The Managing Member envisions no such requirements for operating purposes.~~

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Cash Flows

The following table sets forth summary cash flow data (in thousands):

	2016			2015
	2017			2016
Net cash provided by (used in):
Operating activities	$	~~2,769~~988		$	32,~~734~~769
Investing activities		~~7,871~~186			37,~~702~~871
Financing activities		(94,~~459~~154	)		(9,~~829~~459	)
Net increase (decrease) in cash and cash equivalents	$	1,181		$	(2,393	)
Net (decrease) increase in cash and cash equivalents	$	(2,980	)	$	1,181

20162017 versus 20152016

During ~~2016~~2017 and ~~2015~~2016, the Company’s primary sources of liquidity ~~has~~were ~~been~~ cash flows from its portfolio of operating and direct financing lease contracts~~, and its investments in notes receivable~~. ~~The~~In ~~cash~~addition, ~~received~~the ~~from~~Company ~~principal~~realized ~~payments~~$190 ~~related~~thousand toand ~~direct~~$5.2 ~~financing~~million ~~lease~~of ~~contracts~~proceeds ~~were~~from ~~$2.7~~sales ~~million~~or ~~and~~dispositions ~~$2.6~~of ~~million~~equipment ~~for~~during the respective years ended December 31, ~~2016~~2017 and ~~2015, respectively~~2016. InThe ~~addition, the~~ Company ~~realized~~also received $~~5.2~~1 ~~million~~thousand and $~~784~~2.7 ~~thousand~~million of ~~proceeds~~principal payments from ~~sales~~direct orfinance ~~dispositions~~leases ofduring ~~equipment and investment securities for~~ the ~~respective~~ years ended December 31, ~~2016~~2017 and ~~2015~~2016, respectively.

During the same respective years, cash was primarily used to pay distributions to both ~~the~~ Other Members and the Managing Member~~, totaling $5~~.5 ~~million~~Distributions ~~and~~paid ~~$5.2 million. Cash was also used~~ to ~~pay~~Members ~~down~~totaled $34.92 million and $45.65 million offor ~~debt~~the ~~during~~years ~~each~~ended ofDecember ~~2016~~31, 2017 and ~~2015~~2016, respectively;. ~~and~~In addition, $3.9 million was used to pay ~~invoices~~down ~~related~~non-recourse todebt ~~management~~during ~~fees~~the ~~and~~year ~~expenses,~~ended ~~and~~December ~~other~~31, ~~payables~~2016.

Capital Resources and Liquidity

Non-Recourse Long-Term Debt

As of December 31, 2016, the Company fully paid down all of its outstanding non-recource long-term debt. As of 2015, the Company had non-recourse long-term debt totaling $3.9 million. Such non-recourse notes payable do not contain any material financial covenants. The notes are secured by a lien granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders have recourse only to the following collateral: the specific leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items.

The Operating Agreement limits aggregate borrowings to 50% of the total cost of equipment. For detailed information on the Company’s non-recourse debt obligation, see Note 8 to the financial statements as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

Distributions

The Company commenced periodic distributions, based on cash flows from operations, beginning with the month of February 2001. The monthly distributions were discontinued in 2010 as the Company entered its liquidation phase. The rates and frequency of periodic distributions paid by the Fund during its liquidation phase are solely at the discretion of the Manager. See Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, for additional information regarding the distributions.

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and Contingencies

At December 31, ~~2016~~2017, the Company had no commitments to purchase lease assets or fund investments in notes receivable.

Off-Balance Sheet Transactions

None.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

See the Report of Independent Registered Public Accounting Firm, Financial Statements and Notes to Financial Statements attached hereto at pages 1312 through 3229.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Members
ATEL Capital Equipment Fund IX, LLC

We have audited the accompanying balance sheets of ATEL Capital Equipment Fund IX, LLC (the “Company”) as of December 31, ~~2016~~2017 and ~~2015~~2016, ~~and~~ the related statements of income, changes in members’ capital, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). ~~These~~In our opinion, the financial statements ~~are~~present fairly, in all material respects, the ~~responsibility~~financial position of the ~~Management~~Company as of December 31, 2017 and 2016, and the ~~Company’s~~results ~~Managing~~of ~~Member.~~its ~~Our~~operations ~~responsibility~~and isits tocash ~~express~~flows anfor ~~opinion~~the onyears ~~these~~then ~~financial~~ended, ~~statements~~in ~~based~~conformity onwith ~~our~~accounting ~~audits~~principles generally accepted in the United States of America.

WeBasis conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. Opinion

InThese ~~our~~financial ~~opinion,~~statements are the ~~financial~~responsibility ~~statements~~of ~~referred~~the toManagement ~~above~~of ~~present~~the ~~fairly,~~Company’s inManaging ~~all~~Member. ~~material~~Our ~~respects,~~responsibility is to express an opinion on the Company’s financial ~~position~~statements ofbased ~~ATEL~~on ~~Capital~~our ~~Equipment~~audits. ~~Fund~~We ~~IX,~~are ~~LLC~~a aspublic ofaccounting ~~December~~firm ~~31,~~registered ~~2016~~with ~~and~~the ~~2015,~~Public ~~and~~Company ~~the~~Accounting ~~results~~Oversight ofBoard ~~its~~(United ~~operations~~States) (“PCAOB”) and ~~its~~are ~~cash~~required ~~flows~~to ~~for~~be ~~the~~independent ~~years~~with ~~then~~respect ~~ended,~~to the Company in ~~conformity~~accordance with ~~accounting~~the ~~principles~~U.S. ~~generally~~federal ~~accepted~~securities inlaws and the ~~United~~applicable ~~States~~rules and regulations of ~~America.~~the Securities and Exchange Commission and the PCAOB.

~~/s/~~We ~~Moss~~conducted ~~Adams~~our ~~LLP~~audits ~~San~~in ~~Francisco~~accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, ~~California~~whether ~~March~~due 17to error or fraud. The Company is not required to have, ~~2017~~nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

13Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.


		/s/ Moss Adams LLP
San Francisco, California March 26, 2018

We have served as the Company’s auditor since 2007.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

BALANCE SHEETS

DECEMBER 31, ~~2016~~2017 AND ~~2015~~2016 (In Thousands)

	2016		2015
	2017		2016
ASSETS
Cash and cash equivalents	$	~~3,421~~441	$	23,~~240~~421
Accounts receivable, net of allowance for doubtful accounts of $2 at December 31, 2016 and $1 at December 31, 2015		105		533
Accounts receivable, net of allowance for doubtful accounts of $12 at December 31, 2017 and $2 at December 31, 2016		112		105
Prepaid expenses and other assets		6968		6669
Investment in securities		5		5
Investments in equipment and leases, net of accumulated depreciation of $23,382 at December 31, 2016 and $23,772 at December 31, 2015		4,198		11,127
Investments in equipment and leases, net of accumulated depreciation of $23,187 at December 31, 2017 and $23,382 at December 31, 2016		3,703		4,198
Total assets	$	74,~~798~~329	$	137,~~971~~798
LIABILITIES AND MEMBERS’ CAPITAL
Accounts payable and accrued liabilities:
Managing Member	$	2418	$	424
Other		297		211
Due to affiliates		39		—
Deposits due lessees		4		—
Other		137		297
Non-recourse debt		—		3,921
Deposits due lessees		6		4
Unearned operating lease income		~~112~~49		~~105~~112
Total liabilities		~~437~~249		~~4,241~~437
Commitments and contingencies
Members’ capital:
Managing Member		—		—
Other Members		74,~~361~~080		97,~~730~~361
Total Members’ capital		74,~~361~~080		97,~~730~~361
Total liabilities and Members’ capital	$	74,~~798~~329	$	137,~~971~~798

See accompanying notes.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, ~~2016~~2017 AND ~~2015~~2016 (In Thousands Except for Units and Per Unit Data)

	2016			2015
	2017			2016
Revenues:
Leasing and lending activities:
Operating leases	$	2,~~626~~374		$	32,~~830~~626
Direct financing leases		~~1,013~~—			1,~~867~~013
Interest on notes receivable		—			22
Gain on sales of lease assets		124			1,379
Gain on sales of lease assets and early termination of notes receivable		1,379			184
Gain on sales or dispositions of investment in securities		4			5
Unrealized loss on value adjustment for warrants		—			(125	)
Other revenue		6			22
Gain on sales or dispositions of investment in securities		5			94
Total revenues		2,508			5,045
Other revenue		22			105
Total revenues		5,045			5,977
Expenses:
Depreciation of operating lease assets		~~440~~435			~~899~~440
Asset management fees to Managing Member		~~218~~102			~~296~~218
Cost reimbursements to Managing Member and/or affiliates		~~395~~419			~~517~~395
Provision for (reversal of) credit losses		1			(6	)
Provision for credit losses		10			1
Impairment losses		—			132
Amortization of initial direct costs		2			2
Amortization of initial direct costs		2			6
Other management fees		26			29
Other management fees		29			26
Interest expense		—			112
Interest expense		112			395
Professional fees		139			114
Professional fees		114			123
Outside services		112			81
Outside services		81			59
Insurance		48			47
Insurance		47			50
Marine vessel maintenance and other operating costs		20			109
Marine vessel maintenance and other operating costs		109			17
Railcar and equipment maintenance		132			127
Railcar and equipment maintenance		127			128
Franchise fees and state taxes		47			42
Franchise fees and state taxes		42			68
Storage fees		47			52
Storage fees		52			47
Printing and photocopying		36			21
Other		~~100~~68			~~125~~79
Total operating expenses		1,~~869~~643			21,~~882~~869
Other expense, net		(7	)		(4	)
Other income (loss), net		8			(7	)
Net income	$	~~3,169~~873		$	3,~~091~~169
Net income:
Managing Member	$	~~415~~312		$	~~391~~415
Other Members		~~2,754~~561			2,~~700~~754
	$	~~3,169~~873		$	3,~~091~~169
Net income per Limited Liability Company Unit (Other Members)	$	0.2305		$	0.2223
Weighted average number of Units outstanding		12,055,016			12,055,016

See accompanying notes.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

FOR THE YEARS ENDED DECEMBER 31, ~~2016~~2017 AND ~~2015~~2016 (In Thousands Except for Units and Per Unit Data)

	Other Members					Managing Member			Total
			Amount
	Units		~~Amount~~Other Members			Managing Member			Total
Balance December 31, 2014		12,055,016	$	11,852		$	—		$	11,852
Balance December 31, 2015		12,055,016	$	9,730		$	—		$	9,730
Distributions to Other Members ($0.40 per Unit)		—		(4,822	)		—			(4,822	)
Distributions to Managing Member		—		—			(391	)		(391	)
Net income		—		2,700			391			3,091
Balance December 31, 2015		12,055,016		9,730			—			9,730
Distributions to Other Members ($0.42 per Unit)		—		(5,123	)		—			(5,123	)
Distributions to Managing Member		—		—			(415	)		(415	)
Net income		—		2,754			415			3,169
Balance December 31, 2016		12,055,016	$	7,361		$	—		$	7,361
Distributions to Other Members ($0.32 per Unit)		—		(3,842	)		—			(3,842	)
Distributions to Managing Member		—		—			(312	)		(312	)
Net income		—		561			312			873
Balance December 31, 2017		12,055,016	$	4,080		$	—		$	4,080

See accompanying notes.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, ~~2016~~2017 AND ~~2015~~2016 (In Thousands)

	2016			2015
	2017			2016
Operating activities:
Net income	$	~~3,169~~873		$	3,~~091~~169
Adjustment to reconcile net income to cash provided by operating activities:
Gain on sales of lease assets and early termination of notes receivable		(1,379	)		(184	)
Gain on sales of lease assets		(124	)		(1,379	)
Gain on sales or dispositions of investment in securities		(54	)		(945	)
Unrealized loss on value adjustment for warrants		—			125
Depreciation of operating lease assets		435			440
Depreciation of operating lease assets		440			899
Amortization of initial direct costs		2			2
Amortization of initial direct costs		2			6
Provision for credit losses		10			1
Provision for (reversal of) credit losses		1			(6	)
Accounts receivable		(17	)		427
Impairment losses		—			132
Prepaid expenses and other assets		1			(3	)
Changes in operating assets and liabilities:
Accounts payable, Managing Member and affiliates		33			20
Accounts receivable		427			37
Accounts payable, other		(160	)		86
Prepaid expenses and other assets		(3	)		(10	)
Deposits due lessees		2			4
Accounts payable, Managing Member		20			(171	)
Unearned operating lease income		(63	)		7
Accounts payable, other		86			4
Net cash provided by operating activities		988			2,769
Deposits due lessees		4			—
Unearned operating lease income		7			(95	)
Net cash provided by operating activities		2,769			3,734
Investing activities:
Proceeds from sales of lease assets and early termination of notes receivable		5,193			690
Proceeds from sales of lease assets		190			5,193
Proceeds from sales or dispositions of investment in securities		54			945
Payments of initial direct costs		(19	)		—(1	)
Principal payments received on direct financing leases		~~2,674~~1			2,~~586~~674
Principal payments received on notes receivable		—			332
Net cash provided by investing activities		186			7,871
Net cash provided by investing activities		7,871			3,702
Financing activities:
Repayments of non-recourse debt		~~(3,921~~—	)		(43,~~616~~921	)
Distributions to Other Members		(53,~~123~~842	)		(45,~~822~~123	)
Distributions to Managing Member		(~~415~~312	)		(~~391~~415	)
Net cash used in financing activities		(94,~~459~~154	)		(9,~~829~~459	)
Net increase (decrease) in cash and cash equivalents		1,181			(2,393	)
Net (decrease) increase in cash and cash equivalents		(2,980	)		1,181
Cash and cash equivalents at beginning of year		23,~~240~~421			42,~~633~~240
Cash and cash equivalents at end of year	$	~~3,421~~441		$	23,~~240~~421
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	$	~~134~~—		$	~~420~~134
Cash paid during the year for taxes	$	4742		$	7047

See accompanying notes.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

1. Organization and Limited Liability Company matters:

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On February 21, 2001, subscriptions for the minimum number of Units (120,000, representing $1.2 million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Company. On that date, the Company commenced operations in its primary business (acquiring equipment to engage in equipment leasing, lending and sales activities). As of April 3, 2001, the Company had received subscriptions for 753,050 Units ($7.5 million), thus exceeding the $7.5 million minimum requirement for Pennsylvania, and AFS requested that the remaining funds in escrow (from Pennsylvania investors) be released to the Company.

Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 76). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.

2. Summary of significant accounting policies:

Basis of presentation:

The accompanying balance sheets as of December 31, ~~2016~~2017 and ~~2015~~2016, and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts may have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, ~~2016~~2017, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Cash and cash equivalents:

Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less.

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts.

Accounts receivable:

Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received.

Credit risk:

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company generally places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable.

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell ~~(ASC 360-10-35-43)~~.

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

1918

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet.

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

The Company may earn revenues from its marine vessel based on charter utilization of the vessel or a fixed term lease. When the vessel is chartered, contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Company incurs “drydocking” costs on its vessel. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and added to the equipment cost and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months.

Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding.

Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible.

Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, all payments received are applied only against outstanding principal balances.

Notes receivable, unearned interest income and related revenue recognition:

The Company records all future payments of principal and interest on notes as notes receivable which is then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan.

Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance for losses as they are deemed uncollectible.

Notes receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, notes may be placed in a non-accrual status. Notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, all payments received are applied only against outstanding principal balances.

Initial direct costs:

The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual contract term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease or loan assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Acquisition expense:

Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred.

Asset valuation:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the ~~company~~Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than ~~their~~the net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments ~~recognized~~ recognized in prior periods are not made in any circumstances.

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Segment reporting:

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas.

The primary geographic regions in which the Company seeks leasing and lending opportunities are North America and Europe.

The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the years ended December 31, ~~2016~~2017 and ~~2015~~2016 and long-lived assets as of December 31, ~~2016~~2017 and ~~2015~~2016 (dollars in thousands):

	For The Year Ended December 31,
	For the Year Ended December 31,
	2016		% of Total			2015		% of Total
	2017		% of Total			2016		% of Total
Revenue
United States	$	52,~~004~~430		9996	%	$	5,~~936~~004		99	%
Canada		565		03	%		—5		0	%
United Kingdom		3613		1	%		4136		1	%
Total International		4178		14	%		41		1	%
Total	$	52,~~045~~508		100	%	$	5,~~977~~045		100	%

	As of December 31,
	2016		% of Total			2015		% of Total
Long-lived assets
United States	$	4,150		99	%	$	11,093		100	%
Canada		15		0	%		—		0	%
United Kingdom		33		1	%		34		0	%
Total International		48		1	%		34		0	%
Total	$	4,198		100	%	$	11,127		100	%

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)


	As of December 31,
	2017		% of Total			2016		% of Total
Long-lived assets
United States	$	3,610		97	%	$	4,150		99	%
Canada		91		3	%		15		0	%
United Kingdom		2		0	%		33		1	%
Total International		93		3	%		48		1	%
Total	$	3,703		100	%	$	4,198		100	%

Foreign currency transactions:

Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other ~~expense~~loss” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. During ~~2016~~2017 and ~~2015~~2016, the Company’s net foreign currency gains (losses) were nominal.

Investment in securities:

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. There were neither impaired securities at December 31, ~~2016~~2017 and ~~2015~~2016 nor investment securities sold or disposed of during the years ended December 31, ~~2016~~2017 and ~~2015~~2016.

Warrants:

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance ~~sheet~~sheets as determined by the Managing Member. ~~During~~The ~~2015, the~~ Company ~~recorded~~held ~~unrealized~~no ~~losses~~warrants ofat ~~$125 thousand, on the fair value adjustment of its warrant holdings. As of~~ December 31, ~~2015,~~2017 ~~the~~and ~~Company’s remaining warrants had no fair value amount. Such warrants expired in January~~ 2016. During ~~2016~~2017 and ~~2015~~2016, the Company realized $54 thousand and $945 thousand of gains on the net exercise of warrants, respectively, from final payment of previously sold warrants.

Unearned operating lease income:

The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method.

Income taxes:

The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, ~~2016~~2017 and ~~2015~~2016, the related provision for state income taxes was approximately $4247 thousand and $6842 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return.

~~The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2016 and 2015 were as follows (in thousands):~~ 21

	2016			2015
Financial statement basis of net assets	$	7,361		$	9,730
Tax basis of net assets (unaudited)		22,019			18,433
Difference	$	(14,658	)	$	(8,703	)

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NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2017 and 2016 were as follows (in thousands):


	2017			2016
Financial statement basis of net assets	$	4,080		$	7,361
Tax basis of net assets (unaudited)		19,142			22,019
Difference	$	(15,062	)	$	(14,658	)

The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns.

The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for each of the years ended December 31, ~~2016~~2017 and ~~2015~~2016 (in thousands):

	2016			2015
	2017			2016
Net income per financial statements	$	~~3,169~~873		$	3,~~091~~169
Tax adjustments (unaudited):
Adjustment to depreciation expense		~~(437~~391	)		(~~430~~437	)
Provision for losses and doubtful accounts		110			(61	)
Adjustments to revenues/other expenses		~~2,681~~(63	)		2,~~616~~681
Adjustments to gain on sales of assets		~~3,710~~66			~~504~~3,710
Other		—			~~132~~—
Income per federal tax return (unaudited)	$	91,~~124~~277		$	59,~~907~~124

Other expense, net:

Other expense, net for the years ended December 31, 2016 and 2015 consisted solely of net losses on foreign exchange transactions. Such net losses were nominal for both 2016 and 2015.

Per Unit data:

Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the year.

Recent accounting pronouncements:

In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 — Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. ~~Early~~This ~~adoption~~guidance is ~~permitted~~effective for the Company beginning on January 1, 2018. ~~Management~~The isadoption ~~currently~~of ~~evaluating~~ASU ~~the~~2016-15 ~~standard~~did ~~and~~not ~~its~~have a material impact on ~~operations~~its ~~and~~ financial ~~reporting~~statements and disclosures.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and ~~its~~expects ~~operational~~the ~~and~~Update ~~related~~may ~~disclosure~~potentially ~~requirements~~result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

24TABLE OF CONTENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting under GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU- 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ~~Early~~While early adoption is permitted., ~~Management~~the ~~will~~Company ~~adopt~~does ~~the~~not ~~standard~~expect ~~and~~to iselect ~~currently~~that ~~evaluating~~option. The Company expects to adopt the ~~standard~~guidance ~~and~~in ~~its~~the ~~operational~~first ~~and~~quarter ~~related~~2019 ~~disclosure~~using ~~requirements~~the modified retrospective method.

InManagement ~~January~~is ~~2016,~~currently evaluating the ~~FASB~~impact ~~issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement~~ of ~~Financial~~this ~~Assets and Financial Liabilities (“ASU 2016-01”). The new~~ standard ~~provides~~on ~~guidance~~the ~~related to accounting for equity investments and~~ financial ~~liabilities~~statements ~~under the fair value option,~~ and ~~the~~its ~~presentation~~operational and related disclosure requirements ~~for financial instruments. In addition~~, ~~FASB~~including ~~clarified~~the ~~guidance~~impact ~~related~~on to the ~~valuation~~Company’s ~~allowance~~current ~~assessment~~lease ~~when~~portfolio ~~recognizing deferred tax assets resulting~~ from ~~unrealized~~a ~~losses~~lessor ~~on available-for-sale debt securities~~perspective. ~~ASU~~Given ~~2016-01~~the islimited ~~effective~~changes ~~for~~to ~~fiscal~~lessor ~~years~~accounting, ~~beginning~~Management ~~after~~does ~~December~~not ~~15,~~expect ~~2017,~~material ~~including~~changes ~~interim~~to ~~periods~~recognition ~~within~~or ~~those~~measurement, ~~fiscal~~but ~~years.~~the ~~Management~~Company is ~~currently~~early ~~evaluating~~in the ~~standard~~implementation process and ~~its~~will ~~operational~~continue ~~and~~to ~~related~~evaluate ~~disclosure~~the ~~requirements~~impact.

In ~~August~~January ~~2014~~2016, the FASB issued Accounting Standards Update ~~2014~~2016-1501, ~~Presentation of~~ Financial ~~Statements~~ Instruments — ~~Going~~ ~~Concern~~Overall (Subtopic ~~205~~825-4010): ~~Disclosure~~Recognition ofand ~~Uncertainties~~Measurement ~~about~~of anFinancial ~~Entity’s~~Assets ~~Ability~~and toFinancial ~~Continue~~Liabilities ~~as a Going Concern~~ (“ASU 2016-~~2014-15~~01”). The new standard provides guidance ~~relative~~related to ~~management’~~accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) ~~responsibility~~and significant assumptions used to ~~evaluate~~estimate ~~whether~~the ~~there~~fair value that is ~~substantial~~required ~~doubt~~to ~~about~~be andisclosed ~~entity’s~~for ~~ability~~financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to ~~continue~~use asthe aexit ~~going~~price ~~concern~~notion when measuring the fair value of financial instruments for disclosure purposes, and to(v) ~~provide~~requires ~~related~~separate ~~footnote~~presentation ~~disclosures.~~of ~~The~~financial ~~new~~assets ~~standard~~and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, ~~and~~2017, including interim periods within those fiscal years,. ~~beginning~~The ~~after~~guidance ~~December~~is ~~15, 2016.~~effective ~~Early~~for ~~adoption~~the isCompany ~~permitted.~~beginning ~~Management~~on ~~does~~January ~~not~~1, ~~expect~~2018. ~~the~~The adoption of ASU ~~2014~~2016-1501 todid not have a material impact on ~~the~~its ~~Company’s~~ financial statements orand ~~related~~ disclosures.

In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The ~~Company~~guidance ~~evaluated~~is effective for the ~~impact~~Company beginning on January 1, 2018. Management’s evaluation of the ~~new~~impact ~~standard~~of such adoption on ~~its~~the financial statements ~~and~~of ~~has~~the ~~determined~~Fund indicates that such impact is ~~virtually~~ non-~~existent~~material as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

3. Concentration of credit risk and major customers:

The Company leases equipment to lessees ~~and provides debt financing to borrowers~~ in diversified industries. Leases ~~and notes receivable~~ are subject to AFS’s credit committee review. The leases ~~and notes receivable~~ provide for the return of the equipment to the Company upon default.

As of December 31, ~~2016~~2017 and ~~2015~~2016, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees ~~and/or financed for borrowers~~ in certain industries were as follows:

	2016			2015
	2017			2016
Transportation, rail		3538	%		2735	%
Marine transportation/Transportation, other		3338	%		2533	%
Paper products		16*	%		1216	%
Mining		*			20	%

Less than 10%

25During 2017 and 2016, certain lessees generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing revenues, excluding gains or losses on disposition of assets, were as follows:


			Percentage of Total Leasing Revenues
Lessee	Type of Equipment		2017			2016
Yellow Fin Marine Services LLC		Marine		27	%		22	%
MRXX-Interstate Commodities		Transportation, rail		16	%		10	%
Union Pacific Railroad Company		Transportation, rail		12	%		*
The Sabine Mining Company		Mining		*			28	%

Less than 10%

4. Investment in equipment and leases, net:

The Company’s investment in leases consisted of the following (in thousands):


	Balance December 31, 2016		Reclassifications, Additions/ Dispositions			Depreciation/ Amortization Expense or Amortization of Leases			Balance December 31, 2017
Net investment in operating leases	$	3,495	$	19		$	(435	)	$	3,079
Net investment in direct financing leases		1		—			(1	)		—
Assets held for sale or lease, net		701		(85	)		—			616
Initial direct costs, net of accumulated amortization of $2 at December 31, 2017 and $2 at December 31, 2016		1		9			(2	)		8
Total	$	4,198	$	(57	)	$	(438	)	$	3,703

Impairment of investments in leases and assets held for sale or lease:

The Company did not record any fair value adjustments during 2017 and 2016.

As of December 31, 2017 and 2016, there were no lease contracts placed in non-accrual status. As of the same dates, the Company had certain other leases with related accounts receivable aged 90 days or more that had not been placed on non-accrual status. In accordance with Company policy, the related accounts receivable were fully reserved. Management continues to closely monitor these leases for any actual change in collectability status and indication of necessary valuation adjustments.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

34. ConcentrationInvestment ofin creditequipment risk and majorleases, customersnet: - (continued)

~~During~~The ~~2016~~Company ~~and~~utilizes ~~2015,~~a ~~certain~~straight ~~lessees~~line ~~and/or~~depreciation ~~financial~~method ~~borrowers~~for ~~generated~~equipment ~~significant~~in ~~portions~~all ~~(defined~~of asthe ~~greater~~categories ~~than~~currently orin ~~equal~~its toportfolio ~~10%)~~ of operating lease transactions. Depreciation expense on the Company’s ~~total~~equipment ~~leasing~~was approximately $435 thousand and ~~lending~~$440 ~~revenues~~thousand for the respective years ended December 31, ~~excluding~~2017 ~~gains~~and or2016. ~~losses~~IDC onamortization ~~disposition~~expense oftotaled ~~assets~~$2 thousand and $2 thousand during 2017 and 2016, ~~were~~respectively, asall ~~follows:~~of which was related to operating leases and direct financing leases. All of the leased property was acquired during the years 2001 through 2010.

			Percentage of Total Leasing and Lending Revenues
Lessee	Type of Equipment		2016			2015
The Sabine Mining Company		Mining		28	%		33	%
Yellow Fin Marine Services LLC		Transportation, marine		22	%		15	%
MRXX-Interstate Commodities		Transportation, rail		10	%		*
Union Pacific Railroad Company		Transportation, rail		*			12	%

Operating leases:

*Property ~~Less~~on ~~than~~operating ~~10%~~leases consisted of the following (in thousands):

4. Notes receivable, net:


	Balance December 31, 2016			Additions			Reclassifications or Dispositions			Balance December 31, 2017
Transportation, rail	$	11,291		$	—		$	705		$	11,996
Marine vessels		9,700			—			—			9,700
Transportation, other		1,827			—			(456	)		1,371
Materials handling		531			—			84			615
Construction		565			—			(148	)		417
Manufacturing		355			—			(231	)		124
Other		11			—			—			11
		24,280			—			(46	)		24,234
Less accumulated depreciation		(20,785	)		(435	)		65			(21,155	)
Total	$	3,495		$	(435	)	$	19		$	3,079

The ~~Company~~average ~~has~~estimated ~~had~~residual ~~various~~value ~~notes~~for ~~receivable~~assets ~~from~~on ~~borrowers~~operating ~~who~~leases ~~have~~was ~~financed~~11% ~~the purchase~~ of ~~equipment through~~ the ~~Company.~~assets’ ~~The~~original ~~notes~~cost ~~were~~at ~~secured~~both ~~by the equipment financed. As of~~ December 31, ~~2016~~2017 and ~~2015, the notes have been fully settled~~2016.

5The Company may earn revenues from its rail transportation and certain other assets based on utilization of such assets or a fixed-term lease. ~~Investment~~Contingent inrentals ~~equipment~~(i.e., short-term, operating charter hire payments) and ~~leases~~the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of Operating Lease Revenues and totaled $82 thousand and $69 thousand during the years ended December 31, ~~net:~~2017 and 2016, respectively.

TheDirect Company’sfinancing investment in leases consisted of the following (in thousands):

	Balance December 31, 2015		Reclassifications, Additions/ Dispositions			Depreciation/ Amortization Expense or Amortization of Leases			Balance December 31, 2016
Net investment in operating leases	$	4,112	$	(177	)	$	(440	)	$	3,495
Net investment in direct financing leases		6,216		(3,541	)		(2,674	)		1
Assets held for sale or lease, net		797		(96	)		—			701
Initial direct costs, net of accumulated amortization of $2 at December 31, 2016 and $83 at December 31, 2015		2		1			(2	)		1
Total	$	11,127	$	(3,813	)	$	(3,116	)	$	4,198

As of December 31, 2017, the Company had no investment in direct financing leases. Such investment consists of materials handling and mining equipment as of December 31, 2016. The following lists the components of the Company’s investment in direct financing leases as of December 31, 2016 (in thousands):

Impairment of investments in leases and assets held for sale or lease:


	December 31, 2016
Total minimum lease payments receivable	$	1
Estimated residual values of leased equipment (unguaranteed)		—
Investment in direct financing leases		1
Less unearned income		—
Net investment in direct financing leases	$	1

The Company did not record any fair value adjustments during 2016. The Company recorded $132 thousand of fair value adjustments to reduce the cost basis of certain impaired off-lease equipment during 2015. 25

AsTABLE ofOF December 31, 2016 and 2015, there were no lease contracts placed in non-accrual status. As of the same dates, the Company had certain other leases with related accounts receivable aged 90 days or more that had not been placed on non-accrual status. In accordance with Company policy, the related accounts receivable were fully reserved. Management continues to closely monitor these leases for any actual change in collectability status and indication of necessary valuation adjustments. CONTENTS

The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was approximately $440 thousand and $899 thousand for the respective years ended December 31, 2016 and 2015. IDC amortization expense totaled $2 thousand and $6 thousand during 2016 and 2015, respectively, all of which was related to operating leases and direct financing leases. All of the leased property was acquired during the years 2001 through 2010.

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

54. Investment in equipment and leases, net: - (continued)

~~Operating~~At ~~leases~~December 31, 2017, the aggregate amounts of future minimum operating lease payments receivable were as follows (in thousands):

Property on operating leases consisted of the following (in thousands):


	Operating Leases
Year ending December 31, 2018	$	1,267
2019		938
2020		534
2021		131
2022		25
	$	2,895

	Balance December 31, 2015			Additions			Reclassifications or Dispositions			Balance December 31, 2016
Transportation, rail	$	12,154		$	—		$	(863	)	$	11,291
Marine vessels		9,700			—			—			9,700
Transportation, other		2,011			—			(184	)		1,827
Materials handling		628			—			(97	)		531
Construction		565			—			—			565
Manufacturing		528			—			(173	)		355
Other		16			—			(5	)		11
		25,602			—			(1,322	)		24,280
Less accumulated depreciation		(21,490	)		(440	)		1,145			(20,785	)
Total	$	4,112		$	(440	)	$	(177	)	$	3,495

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2017 and 2016, the respective useful lives of each category of lease assets in the Company’s portfolio were as follows (in years):

The average estimated residual value for assets on operating leases was 11% and 12% of the assets’ original cost at December 31, 2016 and 2015, respectively.


Equipment category	Useful Life
Transportation, rail		35 – 40
Marine vessels		20 – 30
Manufacturing		10 – 15
Construction		7 – 10
Materials handling		7 – 10
Transportation, other		7 – 10

The Company may earn revenues from its rail transportation and certain other assets based on utilization of such assets or a fixed-term lease5. ContingentAllowance rentalsfor (i.e.,credit short-term, operating charter hire payments) and the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of Operating Lease Revenues and totaled $69 thousand and $97 thousand during the years ended December 31, 2016 and 2015, respectively. losses:

~~Direct~~The Company’s allowance for credit losses totaled $12 thousand and $2 thousand at December 31, 2017 and 2016, respectively. All of such allowance was related to delinquent operating lease receivables. The Company had neither financing ~~leases:~~receivables in non-accrual status nor impaired financing receivables at both December 31, 2017 and 2016.

	December 31, 2016		December 31, 2015
Total minimum lease payments receivable	$	1	$	3,687
Estimated residual values of leased equipment (unguaranteed)		—		3,543
Investment in direct financing leases		1		7,230
Less unearned income		—		(1,014	)
Net investment in direct financing leases	$	1	$	6,216

The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company.

AtThe ~~December~~Operating 31Agreement allows for the reimbursement of costs incurred by AFS for providing administrative services to the Company. Administrative services provided include Company accounting, ~~2016~~finance/treasury, ~~the~~investor ~~aggregate~~relations, ~~amounts~~legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. The Company will be liable for certain future ~~minimum~~costs ~~lease~~to ~~payments~~be ~~receivable~~incurred ~~were~~by asAFS ~~follows~~to ~~(in~~manage ~~thousands):~~the administrative services provided to the Company.

	Operating Leases		Direct Financing Leases		Total
Year ending December 31, 2017	$	1,854	$	1	$	1,855
2018		1,058		—		1,058
2019		873		—		873
2020		484		—		484
2021		81		—		81
	$	4,350	$	1	$	4,351

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services for the Company are performed by AFS.

27Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred. The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be recovered in future years to the extent of the cumulative limit. As of December 31, 2017, the Company has not exceeded the annual and/or cumulative limitations discussed above.

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ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

~~The~~AFS ~~useful~~and/or ~~lives~~affiliates ~~for~~earned ~~each~~fees ~~category~~and ofreimbursements, ~~leases~~pursuant isto ~~reviewed~~the atOperating aAgreement ~~minimum~~as offollows ~~once~~during ~~per~~each ~~quarter.~~of Asthe ofyears ended December 31, ~~2016~~2017 and ~~2015,~~2016 ~~the respective useful lives of each category of lease assets in the Company’s portfolio were as follows~~ (in ~~years~~thousands):

Equipment category	Useful Life
	2017		2016
Transportation, rail		35 – 40
Costs reimbursed to Managing Member and/or affiliates	$	419	$	395
Marine vessels		20 – 30
Asset management fees to Managing Member and/or affiliates		102		218
Manufacturing		10 – 15
	$	521	$	613
Construction		7 – 10
Materials handling		7 – 10
Transportation, other		7 – 10

67. AllowanceCommitments forand credit lossescontingencies:

~~The~~At ~~Company’s allowance for credit losses totaled $2 thousand and $1 thousand at~~ December 31, ~~2016 and 2015~~2017, ~~respectively.~~the ~~All~~Company ofhad ~~such~~no ~~allowance~~commitments ~~was related~~ to ~~delinquent~~purchase ~~operating~~ lease ~~receivables.~~assets ~~The~~or ~~Company~~fund ~~had~~investments ~~neither financing receivables~~ in ~~non-accrual~~notes ~~status nor impaired financing receivables at both December 31, 2016 and 2015~~receivable.

78. Related party transactionsGuarantees:

The ~~terms~~Company enters into contracts that contain a variety of ~~the~~indemnifications. ~~Operating~~The ~~Agreement~~Company’s ~~provide~~maximum ~~that~~exposure ~~AFS~~under ~~and/or~~these ~~affiliates~~arrangements ~~are~~is ~~entitled~~unknown. toHowever, ~~receive~~the ~~certain~~Company ~~fees~~has ~~for~~not ~~equipment~~had ~~management~~prior ~~and~~claims ~~resale~~or losses pursuant to these contracts and ~~for~~expects ~~management~~the risk of ~~the~~loss ~~Company~~to be remote.

The ~~Operating~~Managing ~~Agreement~~Member ~~allows~~knows ~~for the reimbursement~~ of ~~costs~~no ~~incurred~~facts byor ~~AFS~~circumstances ~~for~~that ~~providing~~would ~~administrative~~make ~~services to~~ the Company.’s ~~Administrative~~contractual ~~services~~commitments ~~provided~~outside ~~include~~standard ~~Company~~mutual ~~accounting,~~covenants ~~finance/treasury,~~applicable ~~investor~~to ~~relations,~~commercial ~~legal~~transactions ~~counsel~~between ~~and~~businesses. ~~lease~~Accordingly, ~~and~~the ~~equipment~~Company ~~documentation.~~believes ~~AFS~~that isthese ~~not~~indemnification ~~reimbursed~~obligations ~~for~~are ~~services~~made ~~whereby~~in itthe isordinary ~~entitled~~course toof ~~receive~~business aas ~~separate~~part ~~fee~~of asstandard ~~compensation~~commercial ~~for~~and ~~such~~industry ~~services~~practice, ~~such~~and asthat ~~management~~any ofpotential ~~equipment.~~liability ~~The~~under the Company’s ~~will~~similar becommitments ~~liable~~is ~~for~~remote. ~~certain~~Should ~~future~~any ~~costs~~such toindemnification beobligation ~~incurred~~become bypayable, ~~AFS~~the toCompany ~~manage~~would ~~the~~separately ~~administrative~~record ~~services~~and/or ~~provided~~disclose tosuch ~~the~~liability ~~Company~~in accordance with GAAP.

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company9. AcquisitionMembers’ services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services for the Company are performed by AFS. capital:

~~Cost~~As ~~reimbursements~~of toDecember ~~the~~31, ~~Managing~~2017 ~~Member~~and ~~are~~2016, ~~based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets~~12,055,016 ~~number~~Units ofwere ~~investors~~issued orand ~~contributed capital based upon the type of cost incurred~~outstanding. The ~~Operating~~Company ~~Agreement~~was ~~places~~authorized anto ~~annual~~issue ~~limit~~up ~~and a cumulative limit for cost reimbursements~~ to ~~AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year~~15,000,000 ~~though~~Units ~~such costs may be recovered~~ in ~~future years~~addition to the ~~extent~~Units ofissued ~~the~~to ~~cumulative limit. As of December 31, 2016,~~ the ~~Company~~initial ~~has~~member ~~not~~(50 ~~exceeded the annual and/or cumulative limitations discussed above~~Units).

~~AFS~~The ~~and/or~~Company ~~affiliates~~has ~~earned~~the ~~fees~~right, ~~and~~exercisable ~~reimbursements~~at the Managing Member’s discretion, ~~pursuant~~but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. asThe ~~follows~~repurchase ~~during~~would ~~each~~be at the discretion of the ~~years~~Managing ~~ended~~Member ~~December~~on 31terms it determines to be appropriate under given circumstances, ~~2016~~in the event that the Managing Member deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and ~~2015~~are (not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in ~~thousands):~~which such repurchase occurs.

	2016		2015
Costs reimbursed to Managing Member and/or affiliates	$	395	$	517
Asset management fees to Managing Member and/or affiliates		218		296
	$	613	$	813

As defined in the Operating Agreement, the Company’s Net Income, Net Losses, and Distributions are to be allocated 92.5% to the Other Members and 7.5% to AFS. In accordance with the terms of the Operating Agreement, additional allocations of income were made to AFS in 2017 and 2016. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each year.

28Distributions to the Other Members were as follows (in thousands except Units and per Unit data):


	2017		2016
Distributions declared	$	3,842	$	5,123
Weighted average number of Units outstanding		12,055,016		12,055,016
Weighted average distributions per Unit	$	0.32	$	0.42

TABLE OF CONTENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

810. Non-recourseFair debtvalue measurements:

AtFair ~~December~~value ~~31,~~measurements ~~2016,~~and ~~all~~disclosures ofare ~~the~~based ~~Company’s~~on ~~outstanding~~a ~~non-recourse~~fair ~~debt~~value ~~had~~hierarchy ~~been~~as ~~fully~~determined ~~paid.~~by Atsignificant ~~December~~inputs ~~31,~~used ~~2015, non-recourse debt consisted of notes payable~~ to ~~financial~~measure ~~institutions,~~fair ~~maturing from 2016 through 2017~~value. The ~~notes~~three ~~were~~levels ~~due in monthly installments. Interest on the notes were at a fixed rates ranging from 6.58% to 6.66%. The notes were secured by assignments~~ of ~~lease~~inputs ~~payments~~within ~~and pledges of assets. At December 31, 2015, gross lease rentals totaled approximately $3.7 million over~~ the ~~remaining~~fair ~~lease terms; and the carrying~~ value ofhierarchy ~~the~~are ~~pledged~~defined ~~assets~~as ~~were~~follows: ~~approximately $6.2 million.~~

~~The~~Level ~~non-recourse~~1 – Quoted ~~debt~~prices ~~did~~in ~~not~~active ~~contain~~markets ~~any~~for ~~material~~identical ~~financial~~assets ~~covenants.~~or ~~The debt was secured by liens granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions~~liabilities. ~~The~~An ~~lenders~~active ~~had~~market ~~recourse~~for ~~only to~~ the ~~following~~asset ~~collateral:~~or ~~the~~liability specific leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation was payable solely out of the respective specific security and the Company did not guarantee (nor is ~~the~~a ~~Company~~market ~~otherwise~~in ~~contractually~~which ~~responsible~~transactions for) the ~~payment~~asset ~~of the non-recourse debt as a general obligation~~ or ~~liability~~ ~~of the Company. Although the Company did not have any direct or general~~ liability inoccur ~~connection~~ with ~~the~~sufficient ~~non-recourse~~frequency ~~debt apart from the security granted, the Company was directly~~ and ~~generally~~volume ~~liable and responsible for certain representations, warranties, and covenants made~~ to ~~the~~provide ~~lenders,~~pricing ~~such~~information ason ~~warranties~~an asongoing ~~to genuineness of the transaction parties’ signatures~~basis, asgenerally toon ~~the genuineness of the respective lease chattel paper or the transaction as~~ a ~~whole,~~national or as to the Company’s good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and were viewed by such industry as being consistent with non-recourse discount financing obligationsexchange. Accordingly, as there were no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company had determined that there were no material covenants with respect to the non-recourse debt that warrant footnote disclosure.

9.Level ~~Commitments~~2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and ~~contingencies:~~model-based valuations in which all significant inputs are observable in the market.

AtLevel ~~December~~3 – Valuation ~~31,~~is ~~2016,~~modeled using significant inputs that are unobservable in the ~~Company~~market. ~~had~~These nounobservable ~~commitments~~inputs toreflect ~~purchase~~the ~~lease~~Company’s ~~assets~~own orestimates ~~fund~~of ~~investments~~assumptions that market participants would use in ~~notes~~pricing ~~receivable~~the asset or liability.

10The Company had no assets or liabilities requiring measurement at fair value on a recurring or non-recurring basis at December 31, 2017 and 2016. ~~Guarantees:~~

The Company’s ~~enters~~valuation ~~into~~policy ~~contracts~~is ~~that~~determined ~~contain~~by amembers ~~variety~~of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of ~~indemnifications~~collateral and/or other valuation techniques. ~~The~~These techniques are significantly affected by certain of the Company’s ~~maximum~~assumptions, ~~exposure~~including discount ~~under~~rates ~~these~~and ~~arrangements~~estimates isof ~~unknown~~future cash flows. ~~However,~~Potential taxes and other transaction costs are not considered in estimating fair values. As the Company ~~has~~is ~~not~~responsible ~~had~~for ~~prior~~determining ~~claims~~fair orvalue, ~~losses~~an ~~pursuant~~analysis tois ~~these~~performed ~~contracts~~on prices obtained from third parties. Such analysis is performed by asset management and ~~expects~~credit department personnel who are familiar with the ~~risk~~Company’s investments in equipment, notes receivable and equity securities of ~~loss~~venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to bemultiple ~~remote~~representative sources.

The ~~Managing~~following ~~Member~~disclosure ~~knows~~ of ~~no facts or circumstances that would make~~ the ~~Company’s~~estimated ~~contractual~~fair ~~commitments~~value ~~outside~~of ~~standard~~financial ~~mutual~~instruments ~~covenants~~is ~~applicable~~made toin ~~commercial~~accordance ~~transactions~~with ~~between businesses. Accordingly,~~ the ~~Company~~guidance ~~believes~~provided ~~that~~by ~~these~~the ~~indemnification~~Financial ~~obligations~~Instruments ~~are~~Topic ~~made~~of in the ~~ordinary~~FASB ~~course~~Accounting ofStandards ~~business~~Codification. asFair ~~part~~value ofestimates, ~~standard~~methods ~~commercial~~ and ~~industry practice~~assumptions, ~~and~~set ~~that~~forth ~~any~~below ~~potential~~for ~~liability under~~ the Company’s ~~similar~~financial ~~commitments~~instruments, isare ~~remote.~~made ~~Should~~solely ~~any~~to ~~such~~comply ~~indemnification~~with ~~obligation~~the ~~become~~requirements ~~payable,~~of the ~~Company~~Financial ~~would~~Instruments ~~separately record and/or disclose such liability in accordance with GAAP~~Topic.

11The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. ~~Members’~~Considerable ~~capital:~~judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

AsCash of December 31, 2016 and 2015,cash 12,055,016 Units were issued and outstanding. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial member (50 Units). equivalents

The ~~Company~~recorded ~~has~~amounts ~~the right, exercisable in the Managing Member’s discretion, but not the obligation, to repurchase Units~~ of ~~a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of~~ the ~~holder’s capital account. The~~ Company ~~is otherwise permitted, but not required, to repurchase Units upon a holder~~’s ~~request.~~cash ~~The~~and ~~repurchase~~cash ofequivalents ~~Fund~~approximate ~~units~~fair isvalue ~~made~~because ~~in accordance with Section 13~~ of the ~~Amended~~liquidity and ~~Restated~~short-term ~~Limited~~maturity ~~Liability Company Operating Agreement. The repurchase would be at the discretion~~ of ~~the~~these Managing Member on terms it determines to be appropriate under given circumstances, in the event that the Managing Member deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Unitsinstruments. ~~Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at~~

29Investment in securities

The Company’s investment securities are not registered for public sale and are carried at cost which management believes approximates fair value, as appropriately adjusted for impairment.

Commitments and Contingencies

Management has determined that the fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred.

TABLE OF CONTENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

1110. Members’Fair capitalvalue measurements: - (continued)

~~amounts~~The ~~representing~~following ~~the~~tables ~~original~~present ~~investment~~estimated ~~less~~fair ~~cumulative~~values ~~distributions~~of ~~made~~the toCompany’s ~~the~~financial ~~Unitholder~~instruments ~~with~~in ~~respect~~accordance towith the ~~Units.~~guidance ~~All~~provided ~~Units~~by ~~repurchased during a quarter are deemed to be repurchased effective~~ the ~~last~~Financial ~~day~~Instruments Topic of the ~~preceding~~FASB ~~quarter,~~Accounting ~~and~~Standards ~~are~~Codification ~~not~~at ~~deemed~~December ~~to be outstanding during~~31, or2017 ~~entitled~~and to2016 ~~allocations of net income, net loss or distributions for the quarter~~ (in ~~which~~thousands): ~~such repurchase occurs.~~

As defined in the Operating Agreement, the Company’s Net Income, Net Losses, and Distributions are to be allocated 92.5% to the Other Members and 7.5% to AFS. In accordance with the terms of the Operating Agreement, additional allocations of income were made to AFS in 2016 and 2015. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each year.


	Fair Value Measurements at December 31, 2017
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	441	$	441	$	—	$	—	$	441
Investment in securities		5		—		—		5		5

Distributions to the Other Members were as follows (in thousands except Units and per Unit data):


	Fair Value Measurements at December 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	3,421	$	3,421	$	—	$	—	$	3,421
Investment in securities		5		—		—		5		5

	2016		2015
Distributions declared	$	5,123	$	4,822
Weighted average number of Units outstanding		12,055,016		12,055,016
Weighted average distributions per Unit	$	0.42	$	0.40

~~12.~~TABLE ~~Fair~~OF ~~value measurements:~~CONTENTS

~~Fair~~Item ~~value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value~~9. ~~The~~CHANGES ~~three~~IN ~~levels~~AND ofDISAGREEMENTS ~~inputs~~WITH ~~within~~ACCOUNTANTS’ ~~the~~ON ~~fair~~ACCOUNTING ~~value~~AND ~~hierarchy~~FINANCIAL ~~are defined as follows:~~ DISCLOSURES

~~Level 1 – Quoted prices in active markets for identical assets or liabilities~~None. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange.

~~Level~~Item ~~2 – Quoted~~9A. ~~prices~~CONTROLS ~~for~~AND similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. PROCEDURES

Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.

The Company had no assets or liabilities requiring measurement at fair value on a recurring or non-recurring basis at December 31, 2016. By comparison, at December 31, 2015, only the Company’s warrants were measured on a recurring basis. During 2015, the Company also recorded non-recurring adjustments to reduce the cost basis of certain equipment deemed impaired. Amounts at December 31, 2015 reflect the fair value of the then existing impaired assets.

The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources.

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

12. Fair value measurements: - (continued)

The measurement methodologies are as follows:

Warrants (recurring)

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The Company did not hold any warrant positions at December 31, 2016. The valuation of the warrants at December 31, 2015 was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). As of the same date, the Company’s remaining warrants had no fair value.

Impaired off-lease equipment (non-recurring)

During 2016, the Company had no fair value adjustments relative to impaired equipment. During 2015, the Company deemed certain off-lease equipment (assets) to be impaired and recorded fair value adjustments of $132 thousand to reduce the cost basis of the equipment.

The aforementioned adjustments were non-recurring. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair values of such impaired equipment are classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of the assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market.

The table below presents the fair value measurement of assets and liabilities measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2015 (in thousands):

	December 31, 2015		Level 1 Estimated Fair Value		Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired off-lease equipment	$	300	$	—	$	—	$	300

The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy as of December 31, 2015:

December 31, 2015

Name

Valuation Frequency

Valuation Technique

Unobservable Inputs

Range of Input Values

Warrants

Recurring

Black-Scholes formulation

Stock price

2.01

Exercise price

2.01

Time to maturity (in years)

0.04

Risk-free interest rate

0.14%

Annualized volatility

100.00%

ImpairedOff-lease Equipment

Non-recurring

Market Approach

Third Party Agents’ Pricing Quotes – per equipment

100,000 (total of $300,000)

Equipment Condition

Poor to Average

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

12. Fair value measurements: - (continued)

The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic.

The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and cash equivalents

The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments.

Investment in securities

The Company’s investment securities are not registered for public sale and are carried at cost which management believes approximates fair value, as appropriately adjusted for impairment.

Non-recourse debt

The fair value of the Company’s non-recourse debt was estimated using discounted cash flow analyses, based upon current market borrowing rates for similar types of borrowing arrangements.

Commitments and Contingencies

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at December 31, 2016 and 2015 (in thousands):

	Fair Value Measurements at December 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	3,421	$	3,421	$	—	$	—	$	3,421
Investment in securities		5		—		—		5		5

	Fair Value Measurements at December 31, 2015
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	2,240	$	2,240	$	—	$	—	$	2,240
Investment in securities		5		—		—		5		5
Financial liabilities:
Non-recourse debt		3,921		—		—		3,971		3,971

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS’ ON ACCOUNTING AND FINANCIAL DISCLOSURES

None.

Item 9A. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

The Company’s Managing Member’s President and Chief Executive Officer, and Executive Vice President and Chief Financial Officer and Chief Operating Officer (“Management”), evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on the evaluation of the Company’s disclosure controls and procedures, Management concluded that as of the end of the period covered by this report, the design and operation of these disclosure controls and procedures were effective.

The Company does not control the financial reporting process, and is solely dependent on the Management of the Managing Member, who is responsible for providing the Company with financial statements in accordance with generally accepted accounting principles in the United States. The Managing Member’s disclosure controls and procedures, as they are applicable to the Company, means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control over Financial Reporting

The Management of the Managing Member is responsible for establishing and maintaining adequate internal control over financial reporting as that term is defined in Exchange Act Rule 13a-15(f) for the Company, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2016. The internal control process of the Managing Member, as it is applicable to the Company, was designed to provide reasonable assurance to Management regarding the preparation and fair presentation of published financial statements, and includes those policies and procedures that:

(1)

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States, and that the Company’s receipts and expenditures are being made only in accordance with authorization of the Management of the Managing Member; and

(2)

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

All internal control processes, no matter how well designed, have inherent limitations. Therefore, even those processes determined to be effective can provide only reasonable assurance with respect to the reliability of financial statement preparation and presentation. Further, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Management of the Managing Member assessed the effectiveness of its internal control over financial reporting, as it is applicable to the Company, as of December 31, ~~2016~~2017. In making this assessment, it used the criteria set forth in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its assessment, Management of the Managing Member concluded that the Managing Member’s internal control over financial reporting, as it is applicable to the Company, was effective as of December 31, ~~2016~~2017.

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~~This~~TABLE ~~annual~~OF report does not include an audit report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to audit by the Company’s independent registered public accounting firm pursuant to Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which exempts non-accelerated filers from Section 404(b) of the Sarbanes-Oxley Act of 2002. CONTENTS

This annual report does not include an audit report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s internal control over financial reporting was not subject to audit by the Company’s independent registered public accounting firm pursuant to Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which exempts non-accelerated filers from Section 404(b) of the Sarbanes-Oxley Act of 2002.

Changes in internal control

There were no changes in the Managing Member’s internal control over financial reporting, as it is applicable to the Company, during the year ended December 31, ~~2016~~2017 that have materially affected, or are reasonably likely to materially affect, the Managing Member’s internal control over financial reporting, as it is applicable to the Company.

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PART III

Item 10. DIRECTORS AND EXECUTIVE OFFICERS

The registrant is a Limited Liability Company and, therefore, has no officers or directors.

ATEL Financial Services, LLC (“AFS”) is the Company’s Managing Member or Manager. AFS is controlled by ATEL Capital Group (“ACG” or “ATEL”), a holding company formed to control AFS and affiliated companies. The outstanding voting capital stock of ATEL Capital Group is owned 100% by Dean Cash.

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ACG and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; and investor relations, communications and general administrative services are performed by AFS.

The officers and directors of ATEL and its affiliates are as follows:


Dean L. Cash		President and Chief Executive Officer of ATEL Financial Services, LLC (Managing Member)
Paritosh K. Choksi		Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (Managing Member)
Vasco H. Morais		Executive Vice President, Secretary and General Counsel of ATEL Financial Services, LLC (Managing Member)

Dean L. Cash, age 6667, became chairman, president and chief executive officer of ATEL in April 2001. Mr. Cash joined ATEL as director of marketing in 1980 and served as a vice president since 1981, executive vice president since 1983 and a director since 1984. Prior to joining ATEL, Mr. Cash was a senior marketing representative for Martin Marietta Corporation, data systems division, from 1979 to 1980. From 1977 to 1979, he was employed by General Electric Corporation, where he was an applications specialist in the medical systems division and a marketing representative in the information services division. Mr. Cash was a systems engineer with Electronic Data Systems from 1975 to 1977, and was involved in maintaining and developing software for commercial applications. Mr. Cash received a B.S. degree in psychology and mathematics in 1972 and an M.B.A. degree with a concentration in finance in 1975 from Florida State University. Mr. Cash is an arbitrator with the American Arbitration Association and is qualified as a registered principal with the Financial Industry Regulatory Authority.

Paritosh K. Choksi, age 6364, joined ATEL in 1999 as a director, senior vice president and its chief financial officer. He became its executive vice president and CFO/COO in April 2001. Prior to joining ATEL, Mr. Choksi was chief financial officer at Wink Communications, Inc. from 1997 to 1999. From 1977 to 1997, Mr. Choksi was with Phoenix American Incorporated, a financial services and management company, where he held various positions during his tenure, and was senior vice president, chief financial officer and director when he left the company. Mr. Choksi was involved in all corporate matters at Phoenix and was responsible for Phoenix’s capital market needs. He also served on the credit committee overseeing all corporate investments, including its venture lease portfolio. Mr. Choksi was a part of the executive management team which caused Phoenix’s portfolio to increase from $50 million in assets to over $2 billion. Mr. Choksi is a member of the board of directors of Syntel, Inc. Mr. Choksi received a bachelor of technology degree in mechanical engineering from the Indian Institute of Technology, Bombay; and an M.B.A. degree from the University of California, Berkeley.

Vasco H. Morais, age 5859, joined ATEL in 1989 as general counsel. Mr. Morais manages ATEL’s legal department, which provides legal and contractual support in the negotiating, documenting, drafting, reviewing and funding of lease transactions. In addition, Mr. Morais advises on general corporate law matters, and assists on securities law issues. From 1986 to 1989, Mr. Morais was employed by the BankAmeriLease Companies, Bank of America’s equipment leasing subsidiaries, providing in-house legal support on the documentation of tax-oriented and non-tax oriented direct and leveraged lease transactions, vendor leasing programs and general corporate matters. Prior to the BankAmeriLease Companies, Mr. Morais was with the Consolidated Capital Companies in the Corporate and Securities Legal Department involved in drafting and reviewing contracts, advising on corporate law matters and securities law issues. Mr. Morais received a B.A. degree in 1982 from the University of California in Berkeley, a J.D. degree in 1986 from Golden Gate University Law School; and an M.B.A. (Finance) degree from Golden Gate University in 1997. Mr. Morais, an active member of the State Bar of California since 1986, served as co-chair of the Uniform Business Law Section of the State Bar of California and was inducted as a fellow of the American College of Commercial Finance Lawyers in 2010.

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Audit Committee

The board of directors of the Managing Member acts as the audit committee of the Company. Dean L. Cash and Paritosh K. Choksi are members of the board of directors of the Managing Member and are deemed to be financial experts. They are not independent of the Company.

Section 16(a) Beneficial Ownership Reporting Compliance

Based solely on a review of Forms 3, 4 and 5, the Company is not aware of any failures to file reports of beneficial ownership required to be filed during or for the year ended December 31, ~~2016~~2017.

Code of Ethics

A Code of Ethics that is applicable to the Company, including the Chief Executive Officer and Chief Financial Officer and Chief Operating Officer of its Managing Member, AFS, or persons acting in such capacity on behalf of the Company, is included as Exhibit 14.1 to this report.

Item 11. EXECUTIVE COMPENSATION

The registrant is a Limited Liability Company and, therefore, has no officers or directors.

Set forth hereinafter is a description of the nature of remuneration paid and to be paid to AFS and its affiliates. The amount of such remuneration paid in ~~2016~~2017 and ~~2015~~2016 is set forth in Item 8 of this report under the caption “Financial Statements and Supplementary Data — Notes to Financial Statements — Related party transactions,” at Note 76 thereof, which information is hereby incorporated by reference.

Asset Management Fee

The Company pays AFS an Asset Management Fee in an amount equal to 4% of Operating Revenues, which includes Gross Lease Revenues and Cash From Sales or Refinancing. The Asset Management Fee is paid on a monthly basis. The amount of the Asset Management Fee payable in any year is reduced for that year to the extent it would otherwise exceed the Asset Management Fee Limit, as described below. The Asset Management Fee is paid for services rendered by AFS and its affiliates in determining portfolio and investment strategies (i.e., establishing and maintaining the composition of the Equipment portfolio as a whole and the Company’s overall debt structure) and generally managing or supervising the management of the Equipment.

AFS supervises performance of among others activities, collection of lease revenues, monitoring compliance by lessees with the lease terms, assuring that Equipment is being used in accordance with all operative contractual arrangements, paying operating expenses and arranging for necessary maintenance and repair of Equipment in the event a lessee fails to do so, monitoring property, sales and use tax compliance and preparation of operating financial data. AFS intends to delegate all or a portion of its duties and the Asset Management Fee to one or more of its affiliates who are in the business of providing such services.

Asset Management Fee Limit:

The Asset Management Fee is subject to the Asset Management Fee Limit. The Asset Management Fee Limit is calculated each year during the Company’s term by calculating the total fees that would be paid to AFS if AFS were to be compensated on the basis of an alternative fee schedule, to include an Equipment Management Fee, Incentive Management Fee, and Equipment Resale/Re-Leasing Fee, plus AFS’s Carried Interest, as described below. To the extent that the amount paid to AFS as the Asset Management Fee plus its Carried Interest for any year would exceed the aggregate amount of fees calculated under this alternative fee schedule for the year, the Asset Management Fee and/or Carried Interest for that year is reduced to equal the maximum aggregate fees under the alternative fee schedule.

To the extent any such fees are reduced, the amount of such reduction will be accrued and deferred, and such accrued and deferred compensation would be paid to AFS in a subsequent period, but only if and to the extent that such deferred compensation would be payable within the Asset Management Fee Limit for the subsequent period. Any deferred fees which cannot be paid under the applicable limitations in any subsequent period through the date of liquidation would be forfeited by AFS upon liquidation.

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Alternative Fee Schedule:

For purposes of the Asset Management Fee Limit, the Company will calculate an alternative schedule of fees, including a hypothetical Equipment Management Fee, Incentive Management Fee, Equipment Resale/Re-Leasing Fee, and Carried Interest as follows:

An Equipment Management Fee will be calculated to equal the lesser of (i) 3.5% of annual Gross Revenues from Operating Leases and 2% of annual Gross Revenues from Full Payout Leases which contain Net Lease Provisions, or (ii) the fees customarily charged by others rendering similar services as an ongoing public activity in the same geographic location and for similar types of equipment. If services with respect to certain Operating Leases are performed by nonaffiliated persons under the active supervision of AFS or its affiliate, then the amount so calculated shall be 1% of Gross Revenues from such Operating Leases.

An Incentive Management Fee will be calculated to equal 4% of Distributions of Cash from Operations until Holders have received a return of their Original Invested Capital plus a Priority Distribution, and, thereafter, to equal a total of 7.5% of Distributions from all sources, including Sale or Refinancing Proceeds. In subordinating the increase in the Incentive Management Fee to a cumulative return of a Holder’s Original Invested Capital plus a Priority Distribution, a Holder would be deemed to have received Distributions of Original Invested Capital only to the extent that Distributions to the Holder exceed the amount of the Priority Distribution.

An Equipment Resale/Re-Leasing Fee will be calculated in an amount equal to the lesser of (i) 3% of the sale price of the Equipment, or (ii) one-half the normal competitive equipment sale commission charged by unaffiliated parties for resale services. Such fee would apply only after the Holders have received a return of their Original Invested Capital plus a Priority Distribution. In connection with the releasing of Equipment to lessees other than previous lessees or their affiliates, the fee would be in an amount equal to the lesser of (i) the competitive rate for comparable services for similar equipment, or (ii) 2% of the gross rental payments derived from the re-lease of such Equipment, payable out of each rental payment received by the Company from such re-lease.

A Carried Interest equal to 7.5% of all Distributions of Cash from Operations and Cash from Sales or Refinancing.

See Note 76 to the financial statements included in Item 8, Financial Statements and Supplementary Data, for amounts paid.

Managing Member’s Interest in Operating Proceeds

As defined in the Limited Liability Company Operating Agreement, the Company’s Net Income, Net Losses, and Distributions are to be allocated 92.5% to the Members and 7.5% to AFS. In accordance with the terms of the Operating Agreement, additional allocations of income were made to AFS in ~~2016~~2017 and ~~2015~~2016. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each year. See financial statements as set forth in Part II, Item 8, Financial Statements and Supplementary Data, of this report for amounts allocated to AFS in ~~2016~~2017 and ~~2015~~2016.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Security Ownership of Certain Beneficial Owners

At December 31, ~~2016~~2017, no investor is known to hold beneficially more than 5% of the issued and outstanding Units.

Security Ownership of Management

The parent of AFS is the beneficial owner of Limited Liability Company Units as follows:


(1) Title of Class	(2) Name and Address of Beneficial Owner	(3) Amount and Nature of Beneficial Ownership	(4) Percent of Class
Limited Liability Company Units	ATEL Capital Group The Transamerica Pyramid 600 Montgomery Street, 9th Floor San Francisco, CA 94111	Initial Limited Liability Company Units 50 Units ($500)	0.0004%

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Changes in Control

The Members have the right, by vote of the Members owning more than 50% of the outstanding Limited Liability Company Units, to remove a Managing Member.

AFS may at any time call a meeting of the Members or a vote of the Members without a meeting, on matters on which they are entitled to vote, and shall call such meeting or for vote without a meeting following receipt of a written request therefore of members holding 10% or more of the total outstanding Limited Liability Company Units.

The responses to Item 1 of this report under the caption “Equipment Leasing Activities,” Item 8 of this report under the caption “Financial Statements and Supplementary Data — Notes to Financial Statements — Related party transactions” at Note 76 thereof, and Item 11 of this report under the caption “Executive Compensation,” are hereby incorporated by reference.

Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

During the years ended December 31, ~~2016~~2017 and ~~2015~~2016, the Company incurred audit fees with its principal auditors totaling $7978 thousand and $8379 thousand, respectively.

Audit fees consist of the aggregate fees and expenses billed in connection with the audit of the Company’s annual financial statements and the review of the financial statements included in the Company’s quarterly reports on Form 10-Q.

The board of directors of the Managing Member acts as the audit committee of the registrant. Engagements for audit services, audit related services and tax services are approved in advance by the Chief Financial Officer of the Managing Member acting on behalf of the board of directors of the Managing Member in its role as the audit committee of the Company.

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PART IV

Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)

Financial Statements and Schedules

Financial Statements

Included in Part II of this report:
Report of Independent Registered Public Accounting Firm			1312
Balance Sheets at December 31, 2016 and 2015			14
Balance Sheets at December 31, 2017 and 2016			13
Statements of Income for the years ended December 31, 2016 and 2015			15
Statements of Income for the years ended December 31, 2017 and 2016			14
Statements of Changes in Members’ Capital for the years ended December 31, 2016 and 2015			16
Statements of Changes in Members’ Capital for the years ended December 31, 2017 and 2016			15
Statements of Cash Flows for the years ended December 31, 2016 and 2015			17
Statements of Cash Flows for the years ended December 31, 2017 and 2016			16
Notes to Financial Statements			1817

Financial Statement Schedules

All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and, therefore, have been omitted.

(b)

Exhibits

(3) and (4) Amended and Restated Limited Liability Company Agreement, included as Exhibit B to the Prospectus included in the registrant’s registration statement on form S-1 effective January 16, 2001, (File Number 333-47196) is hereby incorporated herein by reference.


(14.1)		Code of Ethics
(31.1)		Certification of Dean L. Cash pursuant to Rules 13a-14(a)/15d-14(a)
(31.2)		Certification of Paritosh K. Choksi pursuant to Rules 13a-14(a)/15d-14(a)
(32.1)		Certification pursuant to 18 U.S.C. section 1350 of Dean L. Cash
(32.2)		Certification pursuant to 18 U.S.C. section 1350 of Paritosh K. Choksi
(101.INS)		XBRL Instance Document
(101.SCH)		XBRL Taxonomy Extension Schema Document
(101.CAL)		XBRL Taxonomy Extension Calculation Linkbase Document
(101.LAB)		XBRL Taxonomy Extension Label Linkbase Document
(101.PRE)		XBRL Taxonomy Extension Presentation Linkbase Document
(101.DEF)		XBRL Taxonomy Extension Definition Linkbase Document

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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: March 1726, ~~2017~~2018

ATEL Capital Equipment Fund IX, LLC
(Registrant)

By:

ATEL Financial Services, LLC
Managing Member of Registrant

By:

/s/ Dean L. Cash

Dean L. Cash,
President and Chief Executive Officer of
ATEL Financial Services, LLC (Managing Member)

By:

/s/ Paritosh K. Choksi

Paritosh K. Choksi,
Executive Vice President and Chief Financial Officer and
Chief Operating Officer of ATEL Financial Services, LLC
(Managing Member)

By:

/s/ Samuel Schussler

Samuel Schussler,
Senior Vice President and Chief Accounting Officer of
ATEL Financial Services, LLC (Managing Member)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the persons in the capacities and on the dates indicated.

SIGNATURE	CAPACITIES	DATE
/s/ Dean L. CashDean L. Cash	President and Chief Executive Officer of ATEL Financial Services, LLC (Managing Member)	March 1726, ~~2017~~2018
/s/ Paritosh K. ChoksiParitosh K. Choksi	Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (Managing Member)	March 1726, ~~2017~~2018
/s/ Samuel SchusslerSamuel Schussler	Senior Vice President and Chief Accounting Officer of ATEL Financial Services, LLC (Managing Member)	March 1726, ~~2017~~2018

No proxy materials have been or will be sent to security holders. An annual report will be furnished to security holders subsequent to the filing of this report on Form 10-K, and copies thereof will be furnished supplementally to the Commission when forwarded to the security holders.

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Form 10-K

Commission File number 000-50210

ATEL Capital Equipment Fund IX, LLC

The Transamerica Pyramid, 600 Montgomery Street, 9th Floor, San Francisco, California 94111

DOCUMENTS INCORPORATED BY REFERENCE

PART I

Item 1. BUSINESS

General Development of Business

Narrative Description of Business

Equipment Leasing Activities

Notes Receivable Activities

Item 2. PROPERTIES

Item 3. LEGAL PROCEEDINGS

Item 4. MINE SAFETY DISCLOSURES

PART II

Market Information

Holders

Fund Valuation

Background to Fund Valuation

Methodologies

Net Investment Methodology

Appraised Value Methodology

Unit Valuation

Disclosure

Specifics Underlying Valuation Methodology:

Notes and Explanation of Valuation Components and Calculation

ATEL CAPITAL EQUIPMENT FUND IX, LLC Unit Valuation

Disclaimer

Distributions

Overview

Results of Operations

20162017 versus 20152016

Revenues

Expenses

Capital Resources and Liquidity

Cash Flows

20162017 versus 20152016

Capital Resources and Liquidity

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and Contingencies

Off-Balance Sheet Transactions

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ATEL CAPITAL EQUIPMENT FUND IX, LLC BALANCE SHEETS

ATEL CAPITAL EQUIPMENT FUND IX, LLC STATEMENTS OF INCOME

ATEL CAPITAL EQUIPMENT FUND IX, LLC STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

ATEL CAPITAL EQUIPMENT FUND IX, LLC STATEMENTS OF CASH FLOWS

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

1. Organization and Limited Liability Company matters:

2. Summary of significant accounting policies:

Basis of presentation:

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Cash and cash equivalents:

Use of estimates:

Accounts receivable:

Credit risk:

Equipment on operating leases and related revenue recognition:

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Direct financing leases and related revenue recognition:

Notes receivable, unearned interest income and related revenue recognition:

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Initial direct costs:

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Acquisition expense:

Asset valuation:

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Segment reporting:

ATEL CAPITAL EQUIPMENT FUND IX, LLC NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Foreign currency transactions:

Investment in securities:

Purchased securities

Warrants:

Unearned operating lease income:

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ATEL CAPITAL EQUIPMENT FUND IX, LLC

BALANCE SHEETS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

STATEMENTS OF INCOME

ATEL CAPITAL EQUIPMENT FUND IX, LLC

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

ATEL CAPITAL EQUIPMENT FUND IX, LLC

STATEMENTS OF CASH FLOWS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND IX, LLC

NOTES TO FINANCIAL STATEMENTS

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