XML 29 R13.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Investments | 12 Months Ended
--- | ---
Dec. 31, 2015
Investments [Abstract] |
Investments | (5) Investments On May 25, 2011, we entered into an agreement with Mitsui & Co., Ltd. to participate in a joint venture formed as a Dublin-based Irish limited company — Willis Mitsui & Company Engine Support Limited (“WMES”) for the purpose of acquiring and leasing jet engines. Each partner holds a fifty percent interest in the joint venture and the Company uses the equity method in recording investment activity. The initial capital contribution by the Company for its investment in WMES was $8.0 million. The Company provided the initial lease portfolio by transferring 7 engines to the joint venture in June 2011. In addition, the Company made $21.0 million capital contributions to WMES from 2011 through 2015 for the purchase of 21 engines from third parties, increasing the number of engines in the lease portfolio to 28. The $29.0 million of capital contributions has been partially offset by $3.6 million, resulting in a net investment of $25.4 million, which has been reduced by $2.1 million in distributions and increased further to $27.3 million as a result of the Company’s share of WMES reported earnings to date. The $3.6 million reduction in investment represents 50% of the $7.2 million gain related to the sale by the Company of the 7 engines to WMES. During 2015, the Company recorded $0.6 million of capital contributions, $1.3 million in distributions, $1.2 million as a result of the Company’s share of WMES reported earnings for the period and $0.1 million of amortization of deferred gain. Our investment in the joint venture is $2 7.3 million and $2 6.7 million as of December 31, 201 5 and December 31, 201 4, respectively. Prior to September 18, 2013, we held a fifty percent membership interest in a joint venture, WOLF A340, LLC, a Delaware limited liability company, (“WOLF”), which was accounted for as an investment under the equity method of accounting. On December 30, 2005, WOLF completed the purchase of two Airbus A340-313 aircraft from Boeing Aircraft Holding Company for a purchase price of $96.0 million. Since their purchase, these two aircraft had been leased to Emirates, with the leases terminating in March and May 2013. The return of both aircraft from the prior lessee, Emirates, was completed by June 2013, with the airframes being disassembled and parted out and the eight engines being marketed for lease separately to airline customers. On September 18, 2013, we completed the acquisition of the fifty percent membership interest held by the other joint venture partner in WOLF for a purchase price of $1.0 million, with the purchase price representing a $12.7 million discount from the JV partner’s equity interest. The transaction has been accounted for as an asset acquisition. We recorded the assets at the cost basis, which represents the allocation of our prior investment basis plus the cash paid to the third party investor. The purchase price was allocated to the eight aircraft engines and two airframes. The fair value of the net assets acquired from this transaction is estimated to be $12.6 million, which is comprised of $27.0 million of equipment, $1.6 million of cash and receivables, offset by $16.0 million of debt and other liabilities. As a result of the transaction, we now own one hundred percent of WOLF. The WOLF assets and liabilities and the results of operations have been included in the accompanying consolidated financial statements as of the acquisition date, September 18, 2013. On June 3, 2014 we entered into an agreement with China Aviation Supplies Import & Export Corporation Limited (“CASC”) to participate in a joint venture named CASC Willis Engine Lease Company Limited (“CASC Willis”), a new joint venture based in Shanghai, China. Each partner holds a fifty percent interest in the joint venture and the Company uses the equity method in recording investment activity. In October 2014, we made a $15.0 million initial capital contribution representing the up-front funding for the new joint venture. The new company will acquire and lease jet engines to Chinese airlines and will concentrate on meeting the fast growing demand for leased commercial aircraft engines and aviation assets in the People’s Republic of China. The investment has been reduced to $14.0 million as of December 31, 2015 as a result of a foreign currency translation adjustment of $0.8 million and the Company’s share of CASC Willis’ reported losses to date of $0.2 million.
Years Ending December 31, 2015 and 2014 (in thousands) |  | WMES |  | CASC Willis |  | Total |
Investment in joint ventures as of December 31, 2013 |  | $ | 23,485 |  | $ | — |  | $ | 23,485 |
Investment |  |  | 2,623 |  |  | 15,000 |  |  | 17,623 |
Earnings (losses) from joint ventures |  |  | 1,303 |  |  | (82) |  |  | 1,221 |
Amortization of deferred gain |  |  | 108 |  |  | — |  |  | 108 |
Distribution |  |  | (847) |  |  | — |  |  | (847) |
Investment in joint ventures as of December 31, 2014 |  | $ | 26,672 |  | $ | 14,918 |  | $ | 41,590 |
Investment |  |  | 630 |  |  | — |  |  | 630 |
Earnings (losses) from joint ventures |  |  | 1,167 |  |  | (99) |  |  | 1,068 |
Amortization of deferred gain |  |  | 107 |  |  | — |  |  | 107 |
Distribution |  |  | (1,304) |  |  | — |  |  | (1,304) |
Foreign Currency Translation Adjustment |  |  | — |  |  | (796) |  |  | (796) |
Investment in joint ventures as of December 31, 2015 |  | $ | 27,272 |  | $ | 14,023 |  | $ | 41,295 |
“Other revenue” on the Consolidated Statement of Income includes management fees earned of $1.7 million, $2.0 million and $1.6 million during the years ended December 31, 2015, 2014 and 2013, respectively, related to the servicing of engines for the WMES lease portfolio. During 2015, WMES consigned an engine for part out and sale to our Willis Aero subsidiary. The value of the engine is $0.2 million as of December 31, 2015. Summarized financial information for 100% of WMES is presented in the following table:
|  | Years Ended December 31,
|  | 2015 |  | 2014 |  | 2013
|  | (in thousands)
Revenue |  | $ | 26,909 |  | $ | 25,757 |  | $ | 16,312
Expenses |  |  | 24,574 |  |  | 23,150 |  |  | 15,538
WMES net income |  | $ | 2,335 |  | $ | 2,607 |  | $ | 774
|  |  |  |  |  | December 31, |  | December 31,
|  |  |  |  |  | 2015 |  | 2014
|  |  |  |  | (in thousands)
Total assets |  |  |  |  | $ | 256,126 |  | $ | 268,924
Total liabilities |  |  |  |  |  | 195,258 |  |  | 209,044
Total WMES net equity |  |  |  |  | $ | 60,868 |  | $ | 59,880

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32787-111569 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration