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SCHEDULE I - Parent Company Information | 12 Months Ended
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Dec. 31, 2015
SCHEDULE I - Parent Company Information |
SCHEDULE I - Parent Company Information | WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED BALANCE SHEETS Parent Company Information (In thousands, except share data)
|  | December 31, |  | December 31, |
|  | 2015 |  | 2014 |
ASSETS |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,894 |  | $ | 2,411 |
Equipment held for operating lease, less accumulated depreciation |  |  | 763,549 |  |  | 628,341 |
Equipment held for sale |  |  | 22,680 |  |  | 15,768 |
Operating lease related receivable, net of allowances |  |  | 4,502 |  |  | 3,379 |
Spare parts inventory |  |  | 16,120 |  |  | 14,906 |
Due from affiliate |  |  | 20,286 |  |  | 19,044 |
Investments |  |  | 41,295 |  |  | 41,590 |
Investment in subsidiaries |  |  | 118 |  |  | 6,054 |
Property, equipment & furnishings, less accumulated depreciation |  |  | 19,964 |  |  | 17,867 |
Intangible assets, net |  |  | 271 |  |  | 271 |
Other assets, net |  |  | 13,577 |  |  | 13,528 |
Total assets |  | $ | 905,256 |  | $ | 763,159 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 17,660 |  | $ | 10,820 |
Deferred income taxes |  |  | 37,272 |  |  | 26,132 |
Notes payable |  |  | 578,218 |  |  | 457,364 |
Maintenance reserves |  |  | 38,072 |  |  | 32,845 |
Security deposits |  |  | 20,612 |  |  | 16,864 |
Unearned lease revenue |  |  | 3,090 |  |  | 2,273 |
Total liabilities |  |  | 694,924 |  |  | 546,298 |
Shareholders’ equity: |  |  |  |  |  |  |
Common stock ($0.01 par value, 20,000,000 shares authorized; 7,548,395 and 8,346,304 shares issued and outstanding at December 31, 2015 and 2014, respectively) |  |  | 75 |  |  | 83 |
Paid-in capital in excess of par |  |  | 28,720 |  |  | 42,076 |
Retained earnings |  |  | 182,058 |  |  | 174,702 |
Accumulated other comprehensive loss, net of income tax benefit |  |  | (521) |  |  | — |
Total shareholders’ equity |  |  | 210,332 |  |  | 216,861 |
Total liabilities and shareholders’ equity |  | $ | 905,256 |  | $ | 763,159 |
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED STATEMENTS OF INCOME Parent Company Information (In thousands)
|  | Years Ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
REVENUE |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 63,214 |  | $ | 50,749 |  | $ | 36,593 |
Maintenance reserve revenue |  |  | 29,896 |  |  | 22,270 |  |  | 14,046 |
Spare parts and equipment sales |  |  | 20,236 |  |  | 7,588 |  |  | — |
Gain on sale of leased equipment |  |  | 2,488 |  |  | 2,147 |  |  | 3,472 |
Other revenue |  |  | 7,017 |  |  | 5,227 |  |  | 8,022 |
Total revenue |  |  | 122,851 |  |  | 87,981 |  |  | 62,133 |
EXPENSES |  |  |  |  |  |  |  |  |  |
Depreciation expense |  |  | 40,867 |  |  | 29,555 |  |  | 19,699 |
Cost of spare parts and equipment sales |  |  | 13,576 |  |  | 6,354 |  |  | — |
Write-down of equipment |  |  | 6,764 |  |  | 4,681 |  |  | 4,204 |
General and administrative |  |  | 35,898 |  |  | 29,546 |  |  | 29,907 |
Technical expense |  |  | 6,805 |  |  | 4,455 |  |  | 5,478 |
Interest expense |  |  | 18,448 |  |  | 13,500 |  |  | 15,030 |
Total expenses |  |  | 122,358 |  |  | 88,091 |  |  | 74,318 |
Earnings (loss) from operations |  |  | 493 |  |  | (110) |  |  | (12,185) |
Earnings from joint ventures |  |  | 1,175 |  |  | 1,329 |  |  | 3,526 |
Income (loss) before income taxes |  |  | 1,668 |  |  | 1,219 |  |  | (8,659) |
Income tax expense (benefit) |  |  | 2,090 |  |  | 1,708 |  |  | (4,525) |
Equity in income of subsidiaries, net of tax of $4,697, $3,553, and $199 at December 31, 2015, 2014 and 2013, respectively |  |  | 7,778 |  |  | 7,736 |  |  | 19,760 |
Net income |  | $ | 7,356 |  | $ | 7,247 |  | $ | 15,626 |
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Parent Company Information (In thousands)
|  | Years Ended December 31,
|  | 2015 |  | 2014 |  | 2013
Net income |  | $ | 7,356 |  | $ | 7,247 |  | $ | 15,626
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |
Currency translation adjustment |  |  | (796) |  |  | — |  |  | —
Unrealized losses on derivative instruments |  |  | — |  |  | — |  |  | (187)
Reclassification adjustment for losses (gains) included in net income |  |  | — |  |  | (499) |  |  | 1,485
Net gain (loss) recognized in other comprehensive income |  |  | (796) |  |  | (499) |  |  | 1,298
Tax benefit (expense) related to items of other comprehensive income (loss) |  |  | 275 |  |  | 174 |  |  | (435)
Other comprehensive income from parent |  |  | (521) |  |  | (325) |  |  | 863
Total comprehensive income |  | $ | 6,835 |  | $ | 6,922 |  | $ | 16,489
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIA RIES SCHEDULE I — CONDENSED STATEMENTS OF CASH FLOWS Parent Company Information (In thousands)
|  | Years Ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 7,356 |  | $ | 7,247 |  | $ | 15,626 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |
Equity in income of subsidiaries |  |  | (7,778) |  |  | (7,736) |  |  | (19,760) |
Depreciation expense |  |  | 40,867 |  |  | 29,555 |  |  | 19,699 |
Write-down of equipment |  |  | 6,764 |  |  | 4,681 |  |  | 4,204 |
Stock-based compensation expenses |  |  | 4,150 |  |  | 3,509 |  |  | 3,439 |
Amortization of deferred costs |  |  | 2,646 |  |  | 2,391 |  |  | 2,286 |
Amortization of interest rate derivative cost |  |  | — |  |  | (499) |  |  | (404) |
Allowances and provisions |  |  | (17) |  |  | 34 |  |  | (94) |
Gain on sale of leased equipment |  |  | (2,488) |  |  | (2,147) |  |  | (3,472) |
Gain on insurance settlement |  |  | — |  |  | — |  |  | (351) |
Income from joint ventures |  |  | (1,175) |  |  | (1,329) |  |  | (3,526) |
Deferred income taxes |  |  | 2,287 |  |  | 1,383 |  |  | (4,072) |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |  |
Receivables |  |  | (953) |  |  | (1,502) |  |  | 1,871 |
Spare parts inventory |  |  | 4,847 |  |  | (5,533) |  |  | — |
Other assets |  |  | (2,420) |  |  | (942) |  |  | (2,165) |
Accounts payable and accrued expenses |  |  | 4,589 |  |  | 322 |  |  | (943) |
Due to / from subsidiaries |  |  | 1 |  |  | (2,208) |  |  | (4,041) |
Maintenance reserves |  |  | 5,227 |  |  | 8,693 |  |  | 3,495 |
Security deposits |  |  | 5,254 |  |  | (1,616) |  |  | 426 |
Unearned lease revenue |  |  | 646 |  |  | 919 |  |  | (575) |
Net cash provided by operating activities |  |  | 69,803 |  |  | 35,222 |  |  | 11,643 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |
Increase in investment in subsidiaries |  |  | (23,923) |  |  | (9,666) |  |  | (34,098) |
Distributions received from subsidiaries |  |  | 3,791 |  |  | 17,582 |  |  | 69,548 |
Proceeds from sale of equipment held for operating lease (net of selling expenses) |  |  | 22,885 |  |  | 21,360 |  |  | 21,644 |
Capital contribution to joint venture |  |  | (630) |  |  | (17,623) |  |  | (11,219) |
Distributions received from joint venture |  |  | 1,304 |  |  | 847 |  |  | — |
Acquisition of J.T. Power, net of cash acquired |  |  | — |  |  | — |  |  | (4,171) |
Acquisition of WOLF, net of cash acquired |  |  | — |  |  | — |  |  | (1,000) |
Purchase of equipment held for operating lease |  |  | (170,732) |  |  | (104,904) |  |  | (132,140) |
Purchase of property, equipment and furnishings |  |  | (3,736) |  |  | (13,767) |  |  | (450) |
Net cash used in investing activities |  |  | (171,041) |  |  | (106,171) |  |  | (91,886) |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |
Proceeds from issuance of notes payable |  |  | 192,700 |  |  | 154,395 |  |  | 130,000 |
Debt issuance cost |  |  | (13) |  |  | (5,074) |  |  | (637) |
Proceeds from shares issued under stock compensation plans |  |  | 518 |  |  | 410 |  |  | 680 |
Cancellation of restricted stock units in satisfaction of withholding tax |  |  | (1,558) |  |  | (1,544) |  |  | (1,248) |
Security deposit |  |  | (1,606) |  |  | 4,553 |  |  | 7,588 |
Repurchase of common stock |  |  | (16,500) |  |  | (5,352) |  |  | (5,918) |
Excess tax benefit from stock-based compensation |  |  | 26 |  |  | 311 |  |  | — |
Principal payments on notes payable |  |  | (71,846) |  |  | (75,859) |  |  | (52,844) |
Net cash provided by financing activities |  |  | 101,721 |  |  | 71,840 |  |  | 77,621 |
Increase/(Decrease) in cash and cash equivalents |  |  | 483 |  |  | 891 |  |  | (2,622) |
Cash and cash equivalents at beginning of period |  |  | 2,411 |  |  | 1,520 |  |  | 4,142 |
Cash and cash equivalents at end of period |  | $ | 2,894 |  | $ | 2,411 |  | $ | 1,520 |
Supplemental disclosures of cash flow information: |  |  |  |  |  |  |  |  |  |
Net cash paid for: |  |  |  |  |  |  |  |  |  |
Interest |  | $ | 16,462 |  | $ | 11,110 |  | $ | 11,903 |
Income Taxes |  | $ | 75 |  | $ | 76 |  | $ | 111 |
Supplemental disclosures of non-cash investing activities: |  |  |  |  |  |  |  |  |  |
During the years ended December 31, 2015, 2014, 2013, engines and equipment totaling $21,786, $3,071 and $422, respectively, were transferred from Held for Operating Lease to Held for Sale. |  |  |  |  |  |  |  |  |  |
During the years ended December 31, 2015, 2014, 2013, engines and equipment totaling $41,410, $120,880 and $116,020, respectively, were transferred to the parent from its subsidiaries. |  |  |  |  |  |  |  |  |  |
During the years ended December 31, 2015 and 2014, engines and equipment totaling $6,061 and $9,649, respectively, were transferred from Held for Sale to Spare Parts Inventory. |  |  |  |  |  |  |  |  |  |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=51664549&loc=d3e5283-111683 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph c -Article 7 + Details
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