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, 2020 ◻ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from to ~~Annual Report Pursuant to Section 13 or 15(d)~~ ~~of the Securities Exchange Act of 1934.~~
		~~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 000-50687

ATEL Capital Equipment Fund X, LLC

(Exact name of registrant as specified in its charter)


California		68-0517690
(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

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol	Name of each exchange on which registered:
N/A	N/A	N/A

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities ~~Act.Yes~~Act. Yes o◻ Nox 

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~~1934. Yes o◻ Nox 

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~~days. Yes  No x◻ Noo

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~~. Yes  No x◻ Noo

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 filero◻	Accelerated filero◻	Non-accelerated filero⌧ ~~(Do not check if a smaller reporting company)~~	Smaller reporting companyx⌧
Emerging growth company ◻

~~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).Yeso◻ Nox 

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, ~~2018~~2021 was 13,971,486.

DOCUMENTS INCORPORATED BY REFERENCE

Prospectus dated March 12, 2003, filed pursuant to Rule 424(b) (Commission File No. 333-100452) is hereby incorporated by reference into Part IV ~~hereof.~~hereof.

PART I

~~Item 1.~~

~~BUSINESS~~

Item 1. BUSINESS

General Development of Business

ATEL Capital Equipment Fund X, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on August 12, 2002 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, 2022.

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On April 9, 2003, 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. As of March 11, 2005, the offering was terminated. As of that date, subscriptions for 14,059,136 Units ($140.6 million) had been received, of which 87,650 Units ($720 thousand) were subsequently rescinded or repurchased (net of distributions paid and allocated syndication costs, as applicable) by the Company through December 31, ~~2017.~~2020. As of December 31, ~~2017,~~2020, 13,971,486 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, 2011 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, 2012, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement.

The Company ~~has~~had 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 lessee, the terms of the lease, the nature of the equipment and the condition of the money market. There was no limit on the amount of debt that may be incurred in connection with any single acquisition of equipment. However, 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~~had borrowed amounts equal to 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.~~

The Company also incurred long-term recourse debt in the form of asset securitization transactions in order to obtain lower interest rates or other more desirable terms than may be available for individual nonrecourse debt transactions. In an “asset securitization,” the lender would receive a security interest in a specified pool of “securitized” Company assets or a general lien against all of the otherwise unencumbered assets of the Company. It had been the intention of AFS to use asset securitization primarily to finance assets leased to those credits which, in the opinion of AFS, had a relatively lower potential risk of lease default than those lessees with equipment financed with nonrecourse debt. AFS expected that an asset securitization financing would involve borrowing at a variable interest rate based on an established reference rate, and sought to limit the Company’s exposure to increases in the interest rate by engaging in hedging transactions that would effectively fix the interest rate obligation. ~~As of April 4, 2013 the amount~~All of such securitized borrowings were repaid in full.

Narrative Description of Business

The Company ~~has~~had acquired various types of equipment to lease pursuant to “Operating” leases and “High Payout” leases, whereby “Operating” leases are defined as 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 would 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~~had only purchased equipment under pre-existing leases or for which a lease would be entered into concurrently at the time of the purchase. Through December 31, ~~2017,~~2020, the Company had purchased equipment with a total acquisition price of $193.8 million. The Company had also funded investments in notes receivable totaling $18.4 million through December 31, ~~2017.~~2020.

The Company’s objective ~~has~~had been to lease a minimum of 75% of the equipment acquired with the net proceeds of the offering to lessees that (i) ~~have~~had 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~~were established hospitals with histories of profitability or municipalities. The balance of the original equipment portfolio ~~may include~~included 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 costs of these services are reimbursed by the Company to AFS per the Operating Agreement.

2For further information refer to the financial statements and footnotes.

The following tables set forth the types of equipment acquired by the Company through December 31, ~~2017~~2020 and the industries to which the assets have been leased (dollars in thousands):



						Purchase Price		Percentage of
Asset Types	Purchase Price Excluding Acquisition Fees		Percentage of Total Acquisitions			Excluding Acquisition Fees		Total Acquisitions
Materials handling	$	49,467		25.52	%	$	49,467	25.52	%
Transportation, other		37,956		19.58	%		37,956	19.58	%
Transportation, rail		32,123		16.57	%		32,123	16.57	%
Mining equipment		30,020		15.49	%		30,020	15.49	%
Manufacturing		15,946		8.23	%		15,946	8.23	%
Construction		13,059		6.74	%		13,059	6.74	%
Logging and lumber		4,728		2.44	%		4,728	2.44	%
Petro/natural gas		2,446		1.26	%		2,446	1.26	%
Other		8,068		4.17	%		8,068	4.17	%
	$	193,813		100.00	%
						$	193,813	100.00	%



						Purchase Price		Percentage of
Industry of Lessee	Purchase Price Excluding Acquisition Fees		Percentage of Total Acquisitions			Excluding Acquisition Fees		Total Acquisitions
Mining	$	38,670		19.95	%	$	38,670	19.95	%
Transportation, other		25,019		12.91	%		25,019	12.91	%
Manufacturing		20,502		10.58	%		20,502	10.58	%
Transportation, rail		16,809		8.67	%		16,809	8.67	%
Paper products		13,570		7.00	%		13,570	7.00	%
Wholesale		12,887		6.65	%		12,887	6.65	%
Retail		12,650		6.53	%		12,650	6.53	%
Wood/Lumber products		12,331		6.36	%		12,331	6.36	%
Health services		11,474		5.92	%		11,474	5.92	%
Minerals/Metal products		7,200		3.71	%		7,200	3.71	%
Food products		6,129		3.16	%		6,129	3.16	%
Industrial machinery		6,020		3.11	%		6,020	3.11	%
Construction		5,368		2.77	%		5,368	2.77	%
Other		5,184		2.68	%		5,184	2.68	%
	$	193,813		100.00	%
						$	193,813	100.00	%

From inception to December 31, ~~2017,~~2020, the Company has disposed of certain leased assets as set forth below (in thousands):



							Original
							Equipment Cost
							Excluding
Asset Types	Original Equipment Cost Excluding Acquisition Fees		Sale Price		Gross Rents		Acquisition Fees		Sale Price		Gross Rents
Materials handling	$	49,436	$	10,513	$	55,772	$	50,047	$	10,594	$	56,916
Transportation, other		32,574		5,058		36,734		36,048		5,668		40,576
Mining equipment		30,019		7,229		47,260		30,019		7,229		47,260
Manufacturing		16,158		3,950		18,354		16,158		3,950		18,354
Construction		11,952		4,712		12,995		12,751		5,087		14,016
Transportation, rail		10,476		3,431		11,383		15,625		4,607		16,255
Logging and lumber		4,728		2,032		5,216		4,728		2,032		5,216
Petro/natural gas		1,976		290		2,882		1,976		290		2,882
Other		6,633		1,776		6,461		8,329		2,246		9,649
	$	163,952	$	38,991	$	197,057	$	175,681	$	41,703	$	211,124

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 are 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 and 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 as of December 31, ~~2017~~2020 and ~~2016,~~2019, see Note 4 to the financial statements, ~~Investments in equipment and~~Equipment under operating leases, net, as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

Notes Receivable Activities

The Company has financed a diversified portfolio of assets in diverse industries. The following tables set forth the types of assets financed by the Company through December 31, ~~2017~~2020 and the industries to which the assets have been financed (dollars in thousands):



						Amount
						Financed
						Excluding		Percentage of
Asset Types	Amount Financed Excluding Acquisition Fees		Percentage of Total Fundings			Acquisition Fees		Total Funding
Computers	$	8,423		45.87	%	$	8,423	45.87	%
Aviation		2,680		14.60	%		2,680	14.60	%
Storage facility		2,503		13.63	%		2,503	13.63	%
Manufacturing		950		5.17	%		950	5.17	%
Furniture/Fixtures		499		2.72	%		499	2.72	%
Research		182		1.00	%		182	1.00	%
Other		3,124		17.01	%		3,124	17.01	%
	$	18,361		100.00	%	$	18,361	100.00	%



						Amount
						Financed
						Excluding		Percentage of
Industry of Borrower	Amount Financed Excluding Acquisition Fees		Percentage of Total Fundings			Acquisition Fees		Total Funding
Business services	$	5,138		27.98	%	$	5,138	27.98	%
Communications		3,472		18.90	%		3,472	18.91	%
Manufacturing		3,086		16.80	%		3,086	16.80	%
Health services		2,708		14.75	%		2,708	14.75	%
Air transportation		2,680		14.60	%		2,680	14.60	%
Electronics		778		4.24	%		778	4.24	%
Other		499		2.73	%		499	2.72	%
	$	18,361		100.00	%	$	18,361	100.00	%

From inception to December 31, ~~2017,~~2020, assets financed by the Company that were associated with terminated loans are as follows (in thousands):



							Amount
							Financed		Early Termination
							Excluding		of Notes		Total Payments
Asset Types	Amount Financed Excluding Acquisition Fees		Early Termination of Notes Proceeds		Total Payments Received		Acquisition Fees		Proceeds		Received
Computers	$	8,423	$	2,182	$	7,121	$	8,423	$	2,182	$	7,121
Aviation		2,680		1,360		3,863		2,680		1,360		3,863
Storage facility		2,503		—		3,623		2,503		—		3,623
Manufacturing		950		19		1,233		950		19		1,233
Furniture/Fixtures		499		82		493		499		82		493
Research		182		—		210		182		—		210
Other		3,124		897		2,667		3,124		897		2,667
	$	18,361	$	4,540	$	19,210	$	18,361	$	4,540	$	19,210

The Company had no notes receivable as of December 31, ~~2017~~2020 and ~~2016.~~2019.

PART II

~~Item 5.~~

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

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, ~~2017,~~2020, a total of ~~3,334~~3,370 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.

ForATEL CAPITAL EQUIPMENT FUND X, 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, ~~2017.~~2020.

ATEL CAPITAL EQUIPMENT FUND X,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

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 financial statements.

~~Investments in~~Equipment under Operating Leases (net of fees and expenses): The estimated values for ~~Investments in Leases~~equipment under operating 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 (3.75% of revenue)~~

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

●

management fees applicable for the Fund (3.75% of revenue)

●

carried interest applicable for the Fund (7.5% of distributions)

●

operating expenses which are assumed to be 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 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 ~~165.9%~~169.5%, based on ATEL’s historical track record as of December 31, ~~2017.~~2020.

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

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.

~~TABLE OF CONTENTS~~

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

~~Investments in~~ Securities: The estimated values for 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.~~

F.D.

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 X, LLC Unit Valuation

The Manager’s estimated per Unit value of ATEL CAPITAL EQUIPMENT FUND X, LLC at December 31, ~~2017~~2020 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 ~~$0.96.~~$0.50. An independent national public accounting firm with valuation expertise was retained to examine, attest and confirm ATEL CAPITAL EQUIPMENT FUND X, 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 X, 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, such available cash from operations and cash from sales or refinancing as may be necessary to cause total distributions to the Members for each year during the Reinvestment Period to equal an amount of $0.80 per Unit.

The monthly distributions were discontinued in 2012 as the Company entered its liquidation phase. The Company made distributions to Other Members ~~in 2017~~ at a rate of ~~$0.25~~$0.11 per Unit ~~at January 31, 2017~~in 2020 and ~~$0.20~~$0.16 per Unit ~~at June 30, 2017. The Company made distributions to Other Members~~ in ~~2016 at a rate of $0.25 per Unit at June 30, 2016.~~2019. The rates and frequency of periodic distributions paid by the Fund during its liquidation phase are solely at the discretion of the Manager.

~~TABLE OF CONTENTS~~

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


	2017		2016

					2020		2019
Net income per Unit, based on weighted average Units outstanding	$	0.02	$	0.24	$	0.02	$	0.09
Return of investment		0.43		0.01		0.09		0.07
Distributions declared per Unit, based on weighted average Other Member Units outstanding		0.45		0.25		0.11		0.16
Differences due to timing of distributions		—		—		—		—
Actual distributions paid per Unit	$	0.45	$	0.25	$	0.11	$	0.16

~~Item 6.~~

~~SELECTED FINANCIAL DATA~~

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~~

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 X, LLC (the “Company” or the “Fund”) is a California limited liability company that was formed in August 2002 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 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 March 2005. During 2005, 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 has reinvested cash flow in excess of certain amounts required to be distributed to the Other Members and/or utilized its credit facilities to acquire additional equipment.

The Company may continue until December 31, 2022. 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, 2011. Periodic distributions will be paid at the discretion of the Managing Member.

Results of Operations

~~It is the~~

The Company’s objective has been to maintain a 100% utilization rate for all equipment purchased in any given year. All equipment acquisition transactions ~~are~~have been acquired subject to binding lease commitments, so equipment utilization is expected to remain high throughout the reinvestment stage, which ~~ends~~ended six years after the end of the Company’s public offering of Units. Initial lease terms of these leases are generally from 36 to 120 months, and as they expire, the Company

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 reimbursable in future years to the extent such amounts may be payable if within the annual and cumulative limits in such future years. As of December 31, ~~2017,~~2020, the Company has not exceeded the annual and/or cumulative limitations discussed above. (See Note 6 to the financial statements, ~~Related~~related party transactions, as set forth in Part II, Item 8, Financial Statements and Supplementary Data).

2017 versus 2016

Results of Operations

The Company had a net income of ~~$781~~$374 thousand and ~~$3.7~~$1.5 million for the years ended December 31, ~~2017~~2020 and ~~2016,~~2019, respectively. The ~~net~~ results for ~~2017 reflect~~2020 reflected decreases in both total operating revenues and total operating expenses, and an increase in other income when compared to the prior year.

Revenues

Total operating revenues were $1.3 million and $2.8 million for ~~2017 decreased by $3~~the years ended December 31, 2020 and 2019, respectively. The $1.5 million, or ~~46%~~54%, ~~as compared to prior year. Such decrease~~year over year decline in revenue was ~~largely due to a $1.1 million, or 98%, decrease due to one-time deferred maintenance fees charged on returned equipment received~~comprised of decreases in ~~the third quarter of 2016; a $1 million, or 99%, decrease in direct financing lease~~other revenue, operating leases revenues, ~~largely due to run-off of the lease portfolio, as well as the sale of certain lease assets; a $785 thousand, or 24%, decrease in operating lease revenues, the result of continued portfolio run-off~~ and ~~the sales of lease assets; and a $113 thousand, or 12%, decrease in~~ gain on sales of equipment.

Other revenue declined by $1.1 million as the prior year amount included an approximate $1.0 million from a lease settlement related to a previously terminated lease. Operating lease revenues on equipment was lower by $319 primarily due to run-off and dispositions of lease assets. Such decline in total operating revenues is consistent with a fund in its liquidating stage where lease assets are sold as lease commitments end. Gains on sales of lease assets decreased by $67 thousand mostly due to a change in the mix of assets sold.

Expenses

Total operating expenses were $1.1 million and $1.4 million for ~~2017 decreased by $76~~the years ended December 31, 2020 and 2019, respectively. The $266 thousand, or 3%20%, ~~as compared to prior year. Such decrease was mainly attributed to a $143 thousand, or 12%,~~net decrease in ~~depreciation expense, the result of portfolio run-off and sales of lease assets; a $137 thousand, or 54%, decrease~~total operating expenses was primarily due to reductions in ~~asset management fees~~impairment losses on equipment, cost reimbursements to the Managing Member, ~~reflecting a diminished level~~and franchise taxes offset by increases in storage fees and depreciation.

Impairment losses on equipment declined by $281 thousand as the prior year included adjustments of ~~operating~~the same amount to reduce the carrying value of certain assets deemed impaired. There were no assets deemed impaired during 2020. Cost reimbursements paid to the Managing Member decreased by $36 thousand resulting from lower allocated costs reflective of the Fund’s declining assets; and ~~direct finance lease revenues which is consistent with the Company’s continued liquidation phase activities; and a $118~~franchise taxes declined by $25 thousand ~~or 97%, reduction in interest expense~~ due to a lower ~~non-recourse debt balance;~~estimated tax liability. As a partial offset, storage fees increased by $65 thousand largely due to a timing difference in ~~part, by a $236 thousand~~receipt of services and billings, and an increase in ~~franchise fees and taxes, attributed~~returned equipment. In addition, depreciation increased due to an approximate $17 thousand of additional depreciation recorded to reflect year-to-date changes in estimated residual values of certain equipment generating revenue under month-to-month extensions.

During 2020, the Company recorded other income totaling $156 thousand related to the ~~accrual estimates and timing~~fair valuation of tax payments to various jurisdictions; a $34 thousand, or 7%, increase in cost reimbursement to the managing member and/or affiliates, the result of higher cost allocations, a result of refinement of cost allocation methodology; and a $31 thousand, or 30%, increase in outside services, indicative of additional efforts required to comply with certain regulatory requirements.its investment securities. There was no such income during 2019.

Capital Resources and Liquidity

At December 31, ~~2017~~2020 and ~~2016,~~2019, the Company’s cash and cash equivalents totaled ~~$4.0~~$1.4 million and ~~$8.7~~$2.0 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 Other~~ 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.

Cash Flows

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



	2020		2019
Net cash provided by (used in):
Operating activities	$	513	$	798
Investing activities		433		782
Financing activities		(1,586)		(2,416)
Net decrease in cash and cash equivalents	$	(640)	$	(836)

2017 2016
Net cash provided by (used in):

Operating activities $ 962 $ 5,057
Investing activities 1,437 10,175
Financing activities (7,044 ) (10,582 )
Net (decrease) increase in cash and cash equivalents $ (4,645 ) $ 4,650

2017 versus 2016

During ~~2017~~the years ended December 31, 2020 and ~~2016,~~2019, the Company’s primary sources of liquidity were cash flows from its portfolio of operating ~~and direct financing~~ lease contracts. In addition, the Company realized ~~$1.4 million~~$433 thousand and ~~$7.4 million~~$782 thousand of proceeds from sales ~~or dispositions~~ of ~~equipment~~lease assets during 2020 and ~~received principal payments on direct financing leases of $14 thousand and $2.7 million during~~2019, respectively.

During the ~~respective~~same comparative years, ~~ended December 31, 2017 and 2016.~~

~~The primary uses of~~ cash ~~during 2017 and 2016 were~~was primarily used to pay distributions to both the Other Members and the Managing ~~Member, and to pay down debt. Total distributions~~Member. Distributions paid ~~to Members~~ totaled ~~$6.8~~$1.6 million and ~~$6.4 million for both 2017 and 2016, respectively, while total debt repaid amounted to $247 thousand and $4.2~~$2.4 million for the ~~same~~ respective ~~years.~~years ended December 31, 2020 and 2019. In addition, cash was ~~also~~ used to pay invoices related to management fees and expenses, and other ~~payables.~~payables in both years.

Non-Recourse Long-Term Debt

As of December 31, ~~2017~~2020 and ~~2016,~~2019, the Company had no non-recourse long-term debt totaling $83 thousand and $330 thousand, respectively. Such non-recourse notes payable do not contain any material financial covenants. The notes are secured by a specific 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 leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items.debt.

The Operating Agreement limits aggregate borrowings to 50% of the total cost of equipment. For detailed information on the Company’s debt obligations, see Note 7 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 April 2003. The monthly distributions were discontinued in 2012 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, ~~2017,~~2020, 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~~

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 1214 through 3032.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Members

ATEL Capital Equipment Fund X, LLC

Opinion on the Financial Statements

We have audited the accompanying balance sheets of ATEL Capital Equipment Fund X, LLC (the “Company”), as of December 31, ~~2017~~2020 and ~~2016,~~2019, 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”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, ~~2017~~2020 and ~~2016,~~2019, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Management of the Company’s Managing Member. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, 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.

Our 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.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Moss Adams LLP

San Francisco, California

March ~~26, 2018~~29, 2021

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

1214

ATEL CAPITAL EQUIPMENT FUND X, LLC

BALANCE SHEETS

DECEMBER 31, 20172020 AND 2016
2019
(In Thousands)


	2017		2016

					2020		2019
ASSETS
Cash and cash equivalents	$	4,035	$	8,680	$	1,401	$	2,041
Accounts receivable, net of allowance for doubtful accounts of $16 at December 31, 2017 and $2 at December 31, 2016		156		195
Accounts receivable, net						33		81
Investment in securities						200		44
Equipment under operating leases, net						3,222		3,792
Prepaid expenses and other assets		118		118		6		104
Investment in securities		55		65
Investments in equipment and leases, net accumulated depreciation of $20,750 at December 31, 2017 and $23,365 at December 31, 2016		6,875		8,457
Total assets	$	11,239	$	17,515	$	4,862	$	6,062

LIABILITIES AND MEMBERS’ CAPITAL

Accounts payable and accrued liabilities:
Managing Member	$	11	$	22
Due to affiliates		38		—
Due to Managing Member and/or affiliates					$	12	$	17
Other		1,267		1,304		50		58
Deposits due lessees		6		4		1		1
Non-recourse debt		83		330
Unearned operating lease income		58		63		42		17
Total liabilities		1,463		1,723		105		93

Commitments and contingencies

Members’ capital:
Managing Member		—		—		—		—
Other Members		9,776		15,792		4,757		5,969
Total Members’ capital		9,776		15,792		4,757		5,969
Total liabilities and Members’ capital	$	11,239	$	17,515	$	4,862	$	6,062

See accompanying notes.

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF INCOME

FOR THE YEARS ENDED
DECEMBER 31, 20172020 AND 2016
2019
(In Thousands Except for Units and Per Unit Data)


	2017		2016

						2020		2019
Revenues:
Leasing and lending activities:
Operating leases	$	2,543	$	3,328
Direct financing leases		12		1,054
Gain on sales of lease assets		864		977
Unrealized loss on fair value adjustment for warrants		—		(29	)
Other		26		1,078
Total revenues		3,445		6,408
Leasing activities:
Operating leases revenues, net						$	1,266	$	1,585
Gain on sales of equipment under operating leases							40		107
Other revenue							2		1,126
Total operating revenues							1,308		2,818

Expenses:
Depreciation of operating lease assets		1,007		1,150			174		130
Asset management fees to Managing Member and/or affiliates		116		253			85		87
Costs reimbursed to Managing Member and/or affiliates		537		503			159		195
Amortization of initial direct costs		2		2			3		3
Interest expense		4		122
Impairment losses on equipment							—		281
Railcar maintenance		131		136			142		112
Provision for credit losses		15		—
Provision for losses on investment in securities		10		9
Impairment losses on investment in securities							—		11
Professional fees		158		141			157		179
Franchise fees and taxes		236		—			9		34
Outside services		133		102			104		113
Insurance		39		37			22		34
Printing and photocopying		36		—
Storage fees		125		143			138		73
Other		115		142
Other expenses							97		104
Total operating expenses		2,664		2,740			1,090		1,356
Income from operations							218		1,462

Other income:
Unrealized gain on fair value adjustment for investment securities							156		—
Total other income							156		—
Net income	$	781	$	3,668		$	374	$	1,462

Net income:
Managing Member	$	510	$	283		$	119	$	181
Other Members		271		3,385			255		1,281
	$	781	$	3,668
						$	374	$	1,462

Net income per Limited Liability Company Unit (Other Members)	$	0.02	$	0.24		$	0.02	$	0.09
Weighted average number of Units outstanding		13,971,486		13,971,486			13,971,486		13,971,486

See accompanying notes.

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

FOR THE YEARS ENDED
DECEMBER 31, 20172020 AND 2016
2019
(In Thousands Except for Units and Per Unit Data)

Amount
Units Other
Members Managing
Member Total
Balance December 31, 2015 13,971,486 $ 15,900 $ — $ 15,900
Distributions to Other Members ($0.25 per Unit) — (3,493 ) — (3,493 )
Distributions to Managing Member — — (283 ) (283 )
Net income — 3,385 283 3,668
Balance December 31, 2016 13,971,486 15,792 — 15,792
Distributions to Other Members ($0.45 per Unit) — (6,287 ) — (6,287 )
Distributions to Managing Member — — (510 ) (510 )
Net income — 271 510 781
Balance December 31, 2017 13,971,486 $ 9,776 $ — $ 9,776


		Amount
		Other		Managing
	Units	Members		Member		Total
Balance December 31, 2018	13,971,486	$	6,923	$	—	$	6,923
Distributions to Other Members ($0.16 per Unit)	—		(2,235)		—		(2,235)
Distributions to Managing Member	—		—		(181)		(181)
Net income	—		1,281		181		1,462
Balance December 31, 2019	13,971,486		5,969		—		5,969
Distributions to Other Members ($0.11 per Unit)	—		(1,467)		—		(1,467)
Distributions to Managing Member	—		—		(119)		(119)
Net income	—		255		119		374
Balance December 31, 2020	13,971,486	$	4,757	$	—	$	4,757

See accompanying notes.

1517

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 20172020 AND 2016
2019
(In Thousands)


	2017			2016

							2020		2019
Operating activities:
Net income	$	781		$	3,668		$	374	$	1,462
Adjustments to reconcile net income to cash provided by operating activities:
Gain on sales of lease assets		(864	)		(977	)
Gain on sales of equipment under operating leases								(40)		(107)
Unrealized gains on fair value adjustment for investment securities								(156)		—
Depreciation of operating lease assets		1,007			1,150			174		130
Amortization of initial direct costs		2			2			3		3
Impairment losses on equipment								—		281
Provision for credit losses		15			—			27		89
Provision for losses on investment in securities		10			9
Unrealized loss on fair value adjustment for warrants		—			29
Impairment losses on investment in securities								—		11
Changes in operating assets and liabilities:
Accounts receivable		24			310			21		(74)
Due from affiliates								—		15
Prepaid expenses and other assets		—			(3	)		98		8
Accounts payable, Managing Member and affiliates		27			(75	)		(5)		17
Accounts payable, other		(37	)		985
Accrued interest payable		—			(21	)
Deposits due lessees		2			4
Accounts payable, Other								(8)		(1,037)
Unearned operating lease income		(5	)		(24	)		25		—
Net cash provided by operating activities		962			5,057			513		798

Investing activities:
Proceeds from sales of lease assets		1,432			7,433
Payments of initial direct costs		(9	)		(1	)
Principal payments received on direct financing leases		14			2,743
Proceeds from sales of equipment under operating leases								433		782
Net cash provided by investing activities		1,437			10,175			433		782

Financing activities:
Repayments under non-recourse debt		(247	)		(4,163	)
Distributions to Other Members		(6,287	)		(5,938	)		(1,467)		(2,235)
Distributions to Managing Member		(510	)		(481	)		(119)		(181)
Net cash used in financing activities		(7,044	)		(10,582	)		(1,586)		(2,416)
Net (decrease) increase in cash and cash equivalents		(4,645	)		4,650

Net decrease in cash and cash equivalents								(640)		(836)
Cash and cash equivalents at beginning of year		8,680			4,030			2,041		2,877
Cash and cash equivalents at end of year	$	4,035		$	8,680		$	1,401	$	2,041

Supplemental disclosures of cash flow information:
Cash paid during the year for interest	$	4		$	143
Cash paid during the year for taxes	$	161		$	86		$	14	$	44

See accompanying notes.

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

1. Organization and Limited Liability Company matters:

Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 6). 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.

The Company will pay AFS and affiliates of AFS substantial fees which may result in a conflict of interest. The Company will pay substantial fees to AFS and its affiliates before distributions are paid to investors even if the Company does not produce profits. Therefore, the financial position of the Company could change significantly.

2. Summary of significant accounting policies:

Basis of presentation:

The accompanying balance sheets as of December 31, ~~2017~~2020 and ~~2016,~~2019, 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 period amounts have been reclassified to conform to the current period 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, ~~2017,~~2020, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements.

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

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

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 primarily relate 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 allowances for doubtful ~~accounts and reserve for credit losses on notes receivable.~~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 borrowers, 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 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’~~Company’s 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 on operating leases and related revenue recognition:

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,~~Accounting Standards Codification (“ASC”) 360-20-35-3, 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.~~sell (ASC 360-10-35-43).

ATEL CAPITAL EQUIPMENT FUND X, 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.

Direct financing leases and related revenue recognition:

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.

Initial direct costs:

~~The Company capitalizes initial direct~~

Incremental costs ~~(“IDC”)~~of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs 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 disposalexecution of the ~~underlying lease and loan assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to~~Company’s leases ~~or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.~~

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

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

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 region in which the Company sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the years ended December 31, ~~2017~~2020 and ~~2016,~~2019, and long-lived tangible assets as of December 31, ~~2017~~2020 and ~~December 31, 2017~~2019 (dollars in thousands):


	For the Year ended December 31,
	2017		% of Total			2016		% of Total

											Year Ended December 31,
											2020		% of Total		2019		% of Total
Revenue
United States	$	3,380		98	%	$	6,394		100	%	$	1,247	95	%	$	2,774	98	%
Canada		65		2	%		14		0	%		61	5	%		44	2	%
Total	$	3,445		100	%	$	6,408		100	%	$	1,308	100	%	$	2,818	100	%


	As of December 31,
	2017		% of Total			2016		% of Total

											As of December 31,
											2020		% of Total		2019		% of Total
Long-lived assets
United States	$	6,784		99	%	$	8,419		100	%	$	3,163	98	%	$	3,701	98	%
Canada		91		1	%		38		0	%		59	2	%		91	2	%
Total	$	6,875		100	%	$	8,457		100	%	$	3,222	100	%	$	3,792	100	%

Foreign currency transactions:

Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other expense” 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 the years ended December 31, ~~2017~~2020 and ~~2016,~~2019, all foreign currency transaction gains and losses were nominal in value.

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

Purchased securities ~~are generally not~~

Purchased securities registered for public sale ~~and~~ are carried at ~~cost.~~fair value. Such securities with readily determinable fair values are ~~adjusted to~~measured at fair value ~~if the~~with any changes in fair value ~~is less than~~recognized in the ~~carrying value~~Company's results of operations. The Company's investment securities that do not have readily determinable fair values are measured at cost minus impairment, and ~~such impairment is deemed by the Managing Member to be other than temporary.~~adjusted for changes in observable prices. 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. ~~Based upon the~~The Company’s ~~review~~investment securities totaled $200 thousand and $44 thousand at December 31, 2020 and 2019, respectively. There were minimal amount of ~~its portfolio, the Company recorded~~ fair value adjustments ~~of $10 thousand and $9 thousand to reduce the cost basis~~ on ~~certain~~ investment securities ~~deemed impaired~~with readily determinable fair values for both years ended December 31, 2020 and 2019. There were $156 thousand of fair value adjustments to investment securities that do not have readily determinable fair values for the year end December 31, 2020. There were no such fair value adjustments recorded in 2019. Cumulatively, the Fund recorded $58 thousand of adjustments to increase the fair value of such investments based on changes in observable prices. Impairment losses on investment securities totaled $11 thousand for the year ended December 31, 2019. There were no such losses during ~~2017 and 2016, respectively. There~~the current year. Also, there were no investment securities sold or disposed ~~of during 2017~~for the years end December 31, 2020 and ~~2016.~~2019.

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 as determined by the Managing Member. During 2016, the Company recorded unrealized losses of $29 on the fair valuation of its warrant holdings. There were no exercises of warrants, net or otherwise, during 2016.

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 franchise income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, ~~2017~~2020 and ~~2016,~~2019, the related provision for state income taxes was ~~$236~~$9 thousand and ~~nominal,~~$34 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, ~~2017~~2020 and ~~2016~~2019 (in thousands):


	2017			2016

							2020		2019
Financial statement basis of net assets	$	9,776		$	15,792		$	4,757	$	5,969
Tax basis of net assets (unaudited)		21,644			26,496			20,214		20,853
Difference	$	(11,868	)	$	(10,704	)	$	(15,457)	$	(14,884)

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.

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

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

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, ~~2017~~2020 and ~~2016~~2019 (in thousands):


	2017		2016

						2020		2019
Net income per financial statements	$	781	$	3,668		$	374	$	1,462
Tax adjustments (unaudited):
Adjustment to depreciation expense		591		(288	)		174		131
Provision for losses and doubtful accounts		15		—			157		89
Adjustments to revenues/other expenses		8		2,749
Adjustments to gain on sales of assets		567		6,457			242		674
Other		10		10			1		292
Income per federal tax return (unaudited)	$	1,972	$	12,596		$	948	$	2,648

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,~~March 2020, 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 No. 2020-03, Codification Improvements to Financial Instruments (“ASU ~~2016-15”~~2020-03”). ASU ~~2016-15 addresses specific cash flow~~2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues ~~with~~that describe the ~~objective~~areas of ~~reducing~~improvement and the ~~existing diversity in practice.~~related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments inhave different effective dates. Management is currently evaluating the effect of adopting this ~~Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This~~new accounting guidance ~~is effective for the Company beginning on January 1, 2018. The~~but does not expect adoption ~~of ASU 2016-15 did not~~will have a material impact on ~~its~~the Fund’s financial 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~~equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, ~~net investments in leases,~~equipment under operating lease, 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 expects the ~~Update~~update may potentially result in anthe increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

In ~~February 2016,~~November 2018, the FASB issued Accounting Standards Update ~~2016-02, Leases (Topic 842)~~2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU ~~2016-02”~~2018-19”). The new standard ~~will require lessees to recognize lease assets and lease liabilities~~clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases ~~with lease terms greater~~are within the scope of ASC 842, rather 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. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method.

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

On August 15, 2019, the FASB issued a proposed ASU that would grant certain companies additional time to implement FASB standards on CECL, and hedging. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years; and defers the ~~impact~~effective dates for hedging to fiscal periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The ASU was approved on October 16, 2019. In February 2020, the ~~Company’s current lease portfolio from a lessor perspective. Given~~FASB issued ASU 2020-02 and delayed the limited changes to lessor accounting, Management does not expect material changes to recognition or measurement, but the Company is early in the implementation process and will continue to evaluate the impact.effective date of Topic 326 until fiscal years beginning after December 15, 2022.

In ~~January 2016,~~August 2018, the FASB issued Accounting Standards Update ~~2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and~~2018-13, Fair Value Measurement ~~of Financial Assets and Financial Liabilities~~ (“ASU ~~2016-01”~~2018-13”)~~. The new standard provides guidance related to accounting for equity investments and financial liabilities under~~, which amends the disclosure requirements on fair value ~~option, and the presentation and~~measurements in Topic 820, Fair Value Measurement. This ASU modifies 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~~measurements by removing, modifying or adding certain disclosures. The amendments 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 requirementthis Update are effective for ~~public business~~all entities ~~to disclose the method(s)~~for fiscal years, and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets 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 forinterim periods within those fiscal years, beginning after December 15, ~~2017, including~~2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods ~~within those fiscal years.~~presented upon their effective date. The ~~guidance is effective for the Company beginning~~Fund adopted ASU 2018-13 on January 1, ~~2018. The~~2020. Such adoption ~~of ASU 2016-01~~ did not have a ~~material~~significant impact on ~~its~~the Fund’s financial statements and ~~disclosures.~~related disclosure requirements.

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. This guidance is effective for the Company beginning on January 1, 2018. Management’s evaluation of the impact of such adoption on the financial statements of the Fund indicates that such impact is non-material as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues.

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

3. Concentration of credit risk and major customers:

The Company leases equipment to lessees in diversified industries. Leases are subject to AFS’s credit committee review. The leases provide for the return of the equipment to the Company upon default.

As of December 31, ~~2017~~2020, and ~~2016, there were~~2019, concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees in certain industries were as follows:


	Percentage of Total Equipment Cost

							Percentage of Total
Industry	2017			2016			Equipment Cost
							2020		2019
Transportation		37	%		73	%	86	%	38	%
Wholesale		21	%		*		*		42	%
Minerals/Non-metal products		13	%		*

~~Less than 10%.~~

*Less than 10%

During ~~2017~~2020 and ~~2016,~~2019, 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 Lease Revenues
Lessee	Type of Equipment		2017			2016			Type of Equipment	2020		2019
MRXX-Interstate Commodities		Transportation, rail		15	%		*
Kankakee, Beaverville & Southern Railroad									Transportation, rail	25	%	*
Interstate Commodities		Transportation, rail		14	%		*		Transportation, rail	15	%	*
Aircraft Service International		Aviation		14	%		*		Aviation	14	%	16	%
Wal-mart Transportation, LLC		Transportation, other		10	%		12	%
The Sabine Mining Company		Mining		*			23	%
MRXX-Interstate Commodities									Transportation, rail	*		20	%
*Less than 10%

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

4. ~~Investment in equipment and~~Equipment under operating leases, net:

The Company’s ~~investment in~~equipment under operating leases, net consists 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 $ 5,319 $ 59 $ (1,006 ) $ 4,372
Net investment in direct financing leases 20 (6 ) (14 ) —
Assets held for sale or lease, net 3,116 (621 ) (1 ) 2,494
Initial direct costs, net of accumulated amortization of $5 at December 31, 2017 and $4 at December 31, 2016 2 9 (2 ) 9
Total $ 8,457 $ (559 ) $ (1,023 ) $ 6,875


					Depreciation/
					Amortization
	Balance		Reclassifications		Expense or		Balance
	December 31,		Additions / Dispositions		Amortization		December 31,
	2019		and Impairment Losses		of Leases		2020
Equipment under operating leases, net	$	2,592	$	(440)	$	(174)	$	1,978
Assets held for sale or lease, net		1,196		44		—		1,240
Initial direct costs, net		4		3		(3)		4
Total	$	3,792	$	(393)	$	(177)	$	3,222

During the year ended December 31, 2019, the Company recorded $281 thousand of impairment losses to reduce the fair value of certain equipment, there was no such loss recorded for the year ended December 31, 2020.

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 $1.0 million~~$174 thousand and ~~$1.2 million~~$130 thousand for ~~2017~~2020 and ~~2016,~~2019, respectively. IDC amortization expense related to operating leases ~~and direct financing leases~~ totaled $2$3 thousand for ~~both~~each of the ~~respective~~ years ended December 31, ~~2017~~2020 and ~~2016.~~2019.

Total depreciation for 2020 includes $17 thousand of additional depreciation which was recorded to reflect year-to-date changes in estimated residual values of certain equipment generating revenue under month-to-month extensions. Such estimated residual values of equipment associated with leases on month-to-month extensions are evaluated at least semi-annually, and depreciation recorded for the change in estimated reduction in value. There were no such additional adjustments to depreciation recorded during the year ended December 31, 2019.

All of the leased property was acquired in the years beginning with 2005 through 2011.

As of December 31, ~~2017~~2020 and ~~2016,~~2019, there were no lease contracts placed in non-accrual status. As of the same dates, the Company may have had certain other leases that have related accounts receivable aged 90 days or more that have not been placed on non-accrual status. In accordance with Company policy, such receivables are fully reserved. Management continues to closely monitor these leases, and all other lease contracts, for any actual change in collectability status and indication of necessary valuation adjustments.

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

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

Operating leases:

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


	Balance December 31, 2016			Additions			Reclassifications or Dispositions			Balance December 31, 2017

													Balance						Balance
													December 31,				Reclassification		December 31,
													2019		Additions		/Dispositions		2020
Transportation, rail	$	14,796		$	—		$	(1,077	)	$	13,719		$	12,150	$	—	$	(1,088)	$	11,062
Transportation, other		3,491			—			—			3,491
Trucks and trailers														83		—		261		344
Aircraft		3,026			—			(1,038	)		1,988			1,732		—		(1,439)		293
Construction		—			—			799			799
Manufacturing		624			—			—			624			624		—		—		624
Petro/natural gas		470			—			—			470			470		—		—		470
Materials handling		474			—			(72	)		402			131		—		(41)		90
Agriculture		193			—			(193	)		—
Other		1			—			(1	)		—
		23,075			—			(1,582	)		21,493
														15,190		—		(2,307)		12,883
Less accumulated depreciation		(17,756	)		(1,006	)		1,641			(17,121	)		(12,598)		(174)		1,867		(10,905)
Total	$	5,319		$	(1,006	)	$	59		$	4,372		$	2,592	$	(174)	$	(440)	$	1,978

The average estimated residual value for assets on operating leases was ~~23%~~13% and ~~22%~~17% of the assets’ original cost for the years ended at December 31, ~~2017~~2020 and ~~2016,~~2019, respectively.

Direct financing leases:

~~As of~~ There were no operating lease in non-accrual status at December 31, ~~2017, the Company had no investment in direct financing leases. As of December 31, 2016, such investment generally consisted of materials handling, mining, construction~~2020 and ~~agriculture equipment. The components of the Company’s investment in direct financing leases as of December 31, 2016 were as follows (in thousands):~~2019.

December 31,
2016
Total minimum lease payments receivable $ 26
Estimated residual values of leased equipment (unguaranteed) 6
Investment in direct financing leases 32
Less unearned income (12 )
Net investment in direct financing leases $ 20
Net investment in direct financing leases placed in non-accrual status $ —

At December 31, ~~2017,~~2020, the aggregate amounts of future minimum lease payments receivable were as follows (in thousands):

Operating
Leases
Year ending December 31, 2018 $ 1,363
2019 567
2020 284
2021 75
2022 25
$ 2,314

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

5. Allowance for credit losses:

The Company’s allowance for credit losses totaled ~~$16~~$347 thousand and $2$190 thousand at December 31, ~~2017~~2020 and ~~2016,~~2019, respectively. All of such allowance were related to delinquent operating lease receivables. Per ASU 2016-02, the current year credit loss of $27 thousand is netted against operating lease revenues in the statements of income. The Company had neither financing receivables in non-accrual status nor impaired financing receivables at ~~both~~ December 31, ~~2017~~2020 and ~~2016.~~2019.

The Company’s allowance for credit losses as follows (in thousands):

Allowance for

Doubtful Accounts

Operating Leases
Balance December 31, 2018
$
101
Provision for credit losses

89
Balance December 31, 2019

190
Provision for credit losses

27
Balance December 31, 2020
$
217

6. Related party transactions:

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.

The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, 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 costs to be incurred by AFS to manage the administrative services provided to the Company.

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.

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.

During the years ended December 31, ~~2017~~2020 and ~~2016,~~2019, AFS and/or affiliates earned fees and reimbursements, pursuant to the Operating Agreement were as follows (in thousands):


	2017		2016

						2020		2019
Costs reimbursed to Managing Member and/or affiliates	$	537	$	503	$	159	$	195
Asset management fees to Managing Member and/or affiliates		116		253		85		87
	$	653	$	756
					$	244	$	282

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

6. Related party transactions: - (continued)

expenses in each year. The Fund has determined that payment of any amounts in excess of the annual and cumulative limits is not probable, and the date any portion of such amount may be paid, if ever, is uncertain. When the Fund completes its liquidation stage and terminates, any unpaid amount will expire unpaid, with no claim by AFS or its affiliates against any liquidation proceeds or any party for the unpaid balance. As of December 31, ~~2017~~2020 and ~~2016,~~2019, the Company has not exceeded the annual and/or cumulative limitations discussed above.

7. Non-recourse debt:

Commitments:

At December 31, 2017, non-recourse debt consists of a note payable to financial institutions. The note is due in monthly installments. Interest on the note is at a fixed rate of 1.97%. The note is secured by assignments of lease payments and pledges of assets. At December 31, 2017, gross operating lease rentals totaled approximately $83 thousand over the remaining lease terms; and the carrying value of the pledged assets is $417 thousand. The note matures in 2018.

The non-recourse debt does not contain any material financial covenants. The debt is secured by a specific 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 leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties’ signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, 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 are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure.

8. Commitments:

~~At December 31, 2017,~~2020, the Company had no commitments to purchase lease assets or fund investments in notes receivable.

9.

8. Guarantees:

The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP.

10.

9. Members’ capital:

Units issued and outstanding were 13,971,486 at both December 31, ~~2017~~2020 and ~~2016.~~2019. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial members (50 Units). The Company ceased offering Units on March 11, 2005.

The Company has the right, exercisable at 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

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

As defined in the 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 ~~2017~~2020 and ~~2016.~~2019. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each year.

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


	2017		2016

					2020		2019
Distributions declared	$	6,287	$	3,493	$	1,467	$	2,235
Weighted average number of Units outstanding		13,971,486		13,971,486		13,971,486		13,971,486
Weighted average distributions per Unit	$	0.45	$	0.25	$	0.11	$	0.16

11.

10. Fair value measurements:

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. 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 2 – Quoted prices for 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.

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 warrants at December 31, ~~2017~~2020 and 2016, only the Company’s warrants were measured on a recurring basis. During the same comparative years, the Company recorded non-recurring adjustments to reduce the cost basis of certain assets deemed impaired. Such non-recurring adjustments reduced the cost basis of investment securities during 2017 and 2016.2019.

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 X, LLC

NOTES TO FINANCIAL STATEMENTS

11. Fair value measurements: - (continued)

Such fair value adjustments utilized the following methodology:

Warrants

Investment in securities (recurring)

~~Warrants owned by the Company are not~~

The Company’s investment in securities registered for public sale ~~but~~that have readily determinable fair values are ~~considered derivatives and are carried on the balance sheet~~measured at ~~an estimated~~ fair value atwith any changes in fair value recognized in the ~~end~~Company’s results of ~~the period.~~operations. The ~~valuation of the warrants was determined using a Black-Scholes formulation of value~~Company’s investments in publicly traded investment securities are valued 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~~on their quoted market prices. At December 31, ~~2017 and 2016~~2020, the calculated fair ~~values~~value of ~~the Company's warrant portfolio~~these investments in securities were deemed nominal.

Impaired investment securities (non-recurring)

The Company’s investment securities are not registered for public sale and are carried at cost. The investment securities are adjusted for impairment, if any, based upon factors which 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.

During 2017 and 2016, the Company recorded fair value adjustments of $10 thousand and $9 thousand, respectively, to reduce the cost basis of certain impaired investment securities. A majority of the reduction in value was based on a market approach technique and uses inputs that reflect qualitative and quantitative information provided by the management of the investee, which indicated reduced growth opportunity and eventual reduction in cash flows and revenues. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the aforementioned impaired investment securities were classified within Level 3 of the valuation hierarchy.

~~During 2017 and 2016, due to fair value adjustments, certain investment securities were written down to $0.~~

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 and should be read in conjunction with the Company’s financial statements and related notes.

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 is estimated using discounted cash flow analyses, based upon current market borrowing rates for similar types of borrowing arrangements.~~

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

11. Fair value measurements: - (continued)

Commitments and Contingencies

Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding.

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.

The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance ~~sheet~~sheets at December 31, ~~2017~~2020 and ~~2016~~2019 (in thousands):

Fair Value Measurements at December 31, 2017
   Carrying Value Level 1 Level 2 Level 3 Total
Financial assets:

Cash and cash equivalents $    4,035 $    4,035 $    — $    — $    4,035
Investment in securities 55 — — 55 55
Financial liabilities:

Non-recourse debt 83 — — 83 83


	Fair Value Measurements at December 31, 2020
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,401	$	1,401	$	—	$	—	$	1,401

Fair Value Measurements at December 31, 2016
   Carrying Value Level 1 Level 2 Level 3 Total
Financial assets:

Cash and cash equivalents $    8,680 $    8,680 $    — $    — $   8,680
Investment in securities 65 — — 65 65
Financial liabilities:

Non-recourse debt 330 — — 329 329


	Fair Value Measurements at December 31, 2019
	Carrying
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	2,041	$	2,041	$	—	$	—	$	2,041

3031

~~Item 9.~~

~~CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS’ ACCOUNTING AND FINANCIAL DISCLOSURES~~

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

FINANCIAL DISCLOSURES

None.

~~Item 9A.~~

~~CONTROLS AND PROCEDURES~~

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. 78aet 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.~~2020. 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.

PART III

~~Item 10.~~

~~DIRECTORS AND EXECUTIVE OFFICERS~~

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 ~~67,~~70, 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 ~~64,~~67, 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.

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~~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, ~~2017.~~2020.

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~~

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 ~~2017~~2020 and ~~2016~~2019 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 6 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.

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.

See Note 6 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, as amended, additional allocations of income were made to AFS in ~~2017~~2020 and ~~2016.~~2019. 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 ~~2017~~2020 and ~~2016.~~2019.

~~Item 12.~~

~~SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT~~

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Security Ownership of Certain Beneficial Owners

At December 31, ~~2017,~~2020, 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%~~


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

PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

~~Item 15.~~

~~EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K~~

	~~(a)~~

(a)	Financial Statements and Schedules

~~Financial Statements~~



1.	Financial Statements

	Included in Part II of this report:
	Report of Independent Registered Public Accounting Firm		12	14
	Balance Sheets at December 31, ~~2017~~2020 and ~~2016~~2019		13	15
	Statements of Income for the years ended December 31, ~~2017~~2020 and ~~2016~~2019		14	16
	Statements of Changes in Members’ Capital for the years ended December 31, ~~2017~~2020 and ~~2016~~2019		15	17
	Statements of Cash Flows for the years ended December 31, ~~2017~~2020 and ~~2016~~2019		16	18
	Notes to Financial Statements	19
		17
2.

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 March 12, 2003, (File Number 333-100452) is hereby incorporated herein by reference.


(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 March 12, 2003, (File Number 333-100452) is hereby incorporated herein by reference.
	(4.1)Description of the Registrant’s Securities pursuant to Section 12 of the Securities Exchange Act of 1934
	(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 of Dean L. Cash pursuant to 18 U.S.C. section 1350
	(32.2)			Certification of Paritosh K. Choksi pursuant to 18 U.S.C. section 1350
~~(101.INS)~~			(101.INS) XBRL Instance Document
~~(101.SCH)~~			(101.SCH) XBRL Taxonomy Extension Schema Document
~~(101.CAL)~~			(101.CAL) XBRL Taxonomy Extension Calculation Linkbase Document
~~(101.LAB)~~	(101.DEF) XBRL Taxonomy Extension Definition Linkbase Document
	(101.LAB) XBRL Taxonomy Extension Label Linkbase Document
~~(101.PRE)~~			(101.PRE) XBRL Taxonomy Extension Presentation Linkbase Document
~~(101.DEF)~~		~~XBRL Taxonomy Extension Definition Linkbase Document~~

3740

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 ~~26, 2018~~29, 2021

ATEL Capital Equipment Fund X, LLC
~~(Registrant)~~

(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~~ (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. Cash

~~Dean L. Cash~~

President and Chief Executive

Officer of
ATEL Financial Services, LLC, (Managing Member)

March ~~26, 2018~~29, 2021

Dean L. Cash

/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)

March ~~26, 2018~~29, 2021

Paritosh K. Choksi

/s/ Samuel Schussler

~~Samuel Schussler~~

Senior Vice President and Chief Accounting Officer of

ATEL Financial Services, LLC (Managing Member)

March ~~26, 2018~~29, 2021

Samuel Schussler

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.


	Operating
	Leases
Year ending December 31, 2021	$	681
2022		561
2023		112
2024		65
2025		19
Thereafter		43
	$	1,481


Equipment category	Useful Life
Transportation, rail		35 ~~– 40~~	- 50
Aircraft		20 –- 30
Manufacturing		10 –- 15
Petro/natural gas		10 –- 15
~~Agriculture~~ Materials handling		7 –- 10
~~Construction~~		~~7 – 10~~
~~Materials handling~~		~~7 – 10~~
Transportation, other		7 –- 10


			Amount
	Units		Other Members			Managing Member			Total
Balance December 31, 2015		13,971,486	$	15,900		$	—		$	15,900
Distributions to Other Members ($0.25 per Unit)		—		(3,493	)		—			(3,493	)
Distributions to Managing Member		—		—			(283	)		(283	)
Net income		—		3,385			283			3,668
Balance December 31, 2016		13,971,486		15,792			—			15,792
Distributions to Other Members ($0.45 per Unit)		—		(6,287	)		—			(6,287	)
Distributions to Managing Member		—		—			(510	)		(510	)
Net income		—		271			510			781
Balance December 31, 2017		13,971,486	$	9,776		$	—		$	9,776


	Balance December 31, 2016		Reclassifications, Additions/ Dispositions			Depreciation/ Amortization Expense or Amortization of Leases			Balance December 31, 2017
Net investment in operating leases	$	5,319	$	59		$	(1,006	)	$	4,372
Net investment in direct financing leases		20		(6	)		(14	)		—
Assets held for sale or lease, net		3,116		(621	)		(1	)		2,494
Initial direct costs, net of accumulated amortization of $5 at December 31, 2017 and $4 at December 31, 2016		2		9			(2	)		9
Total	$	8,457	$	(559	)	$	(1,023	)	$	6,875


	December 31, 2016
Total minimum lease payments receivable	$	26
Estimated residual values of leased equipment (unguaranteed)		6
Investment in direct financing leases		32
Less unearned income		(12	)
Net investment in direct financing leases	$	20
Net investment in direct financing leases placed in non-accrual status	$	—


	Operating Leases
Year ending December 31, 2018	$	1,363
2019		567
2020		284
2021		75
2022		25
	$	2,314


	Allowance for
	Doubtful Accounts
	Operating Leases
Balance December 31, 2018	$	101
Provision for credit losses		89
Balance December 31, 2019		190
Provision for credit losses		27
Balance December 31, 2020	$	217


	Fair Value Measurements at December 31, 2017
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	4,035	$	4,035	$	—	$	—	$	4,035
Investment in securities		55		—		—		55		55
Financial liabilities:
Non-recourse debt		83		—		—		83		83

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

Form 10-K

Commission File number 000-50687

ATEL Capital Equipment Fund X, 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

PART II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES​Market Information

​Holders

​Fund Valuation

​Background to Fund Valuation

​Methodologies

​Net Investment Methodology

​

​Unit Valuation

​Disclosure

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

​Specifics Underlying Valuation Methodology:​Notes and Explanation of Valuation Components and Calculation

​ATEL CAPITAL EQUIPMENT FUND X, LLC Unit Valuation

​

​Overview

Results of Operations

2017 versus 2016

​Revenues

​Expenses

​Capital Resources and Liquidity

Cash Flows

2017 versus 2016

​Non-Recourse Long-Term Debt

Distributions

​Commitments and Contingencies and Off-Balance Sheet Transactions

​Commitments and Contingencies

​Off-Balance Sheet Transactions

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

​Basis for Opinion

ATEL CAPITAL EQUIPMENT FUND X, LLC​BALANCE SHEETS​DECEMBER 31, 20172020 AND 20162019(In Thousands)

ATEL CAPITAL EQUIPMENT FUND X, LLC​STATEMENTS OF INCOME​FOR THE YEARS ENDEDDECEMBER 31, 20172020 AND 20162019(In Thousands Except for Units and Per Unit Data)

ATEL CAPITAL EQUIPMENT FUND X, LLC​STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL​FOR THE YEARS ENDEDDECEMBER 31, 20172020 AND 20162019(In Thousands Except for Units and Per Unit Data)

ATEL CAPITAL EQUIPMENT FUND X, LLC​STATEMENTS OF CASH FLOWS​FOR THE YEARS ENDED DECEMBER 31, 20172020 AND 20162019(In Thousands)

ATEL CAPITAL EQUIPMENT FUND X, LLC​NOTES TO FINANCIAL STATEMENTS

​

​2. Summary of significant accounting policies:

​Basis of presentation:

​

ATEL CAPITAL EQUIPMENT FUND X, LLCNOTES TO FINANCIAL STATEMENTS

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

Use of estimates:

​Accounts receivable:

​Credit risk:

​Equipment on operating leases and related revenue recognition:

ATEL CAPITAL EQUIPMENT FUND X, LLCNOTES TO FINANCIAL STATEMENTS

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

Direct financing leases and related revenue recognition:

Initial direct costs:

Acquisition expense:

​Asset valuation:

ATEL CAPITAL EQUIPMENT FUND X, LLCNOTES TO FINANCIAL STATEMENTS

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

​Segment reporting:

​Foreign currency transactions:

ATEL CAPITAL EQUIPMENT FUND X, LLCNOTES TO FINANCIAL STATEMENTS

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

Investment in securities:

Purchased securities

Warrants

Unearned operating lease income:

​Income taxes:

ATEL CAPITAL EQUIPMENT FUND X, LLC​NOTES TO FINANCIAL STATEMENTS

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

​Per Unit data:

​Recent accounting pronouncements:

ATEL CAPITAL EQUIPMENT FUND X, LLCNOTES TO FINANCIAL STATEMENTS

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

ATEL CAPITAL EQUIPMENT FUND X, LLCNOTES TO FINANCIAL STATEMENTS

3. Concentration of credit risk and major customers:

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

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

DOCUMENTS INCORPORATED BY REFERENCE

Item 1. BUSINESS

General Development of Business

Notes Receivable Activities

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Holders

Fund Valuation

Background to Fund Valuation

Methodologies

Net Investment Methodology

Unit Valuation

Disclosure

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

Specifics Underlying Valuation Methodology:

Notes and Explanation of Valuation Components and Calculation

ATEL CAPITAL EQUIPMENT FUND X, LLC Unit Valuation

Overview

Revenues

Expenses

Capital Resources and Liquidity

Non-Recourse Long-Term Debt

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and Contingencies

Off-Balance Sheet Transactions

Basis for Opinion

ATEL CAPITAL EQUIPMENT FUND X, LLC

BALANCE SHEETS

DECEMBER 31, 20172020 AND 2016
2019
(In Thousands)

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF INCOME

FOR THE YEARS ENDED
DECEMBER 31, 20172020 AND 2016
2019
(In Thousands Except for Units and Per Unit Data)

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

FOR THE YEARS ENDED
DECEMBER 31, 20172020 AND 2016
2019
(In Thousands Except for Units and Per Unit Data)

ATEL CAPITAL EQUIPMENT FUND X, LLC

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 20172020 AND 2016
2019
(In Thousands)

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies:

Basis of presentation:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

Accounts receivable:

Credit risk:

Equipment on operating leases and related revenue recognition:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

Asset valuation:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

Segment reporting:

Foreign currency transactions:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

Income taxes:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

Per Unit data:

Recent accounting pronouncements:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

25
ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

4. Investment in equipment andEquipment under operating leases, net:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

7. Non-recourse debt:

9.

8. Guarantees:

10.

9. Members’ capital:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

11.

10. Fair value measurements:

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

Warrants

Investment in securities (recurring)

Cash and cash equivalents

ATEL CAPITAL EQUIPMENT FUND X, LLC

NOTES TO FINANCIAL STATEMENTS

Item 9A. CONTROLS AND PROCEDURES
Evaluation of disclosure controls and procedures

Management’s Annual Report on Internal Control over Financial Reporting

Changes in internal control

Asset Management Fee Limit: