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SCHEDULE I - Parent Company Information | 12 Months Ended
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Dec. 31, 2016
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, |
|  | 2016 |  | 2015 |
ASSETS |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 4,574 |  | $ | 2,894 |
Equipment held for operating lease, less accumulated depreciation |  |  | 811,091 |  |  | 753,024 |
Equipment held for sale |  |  | 22,446 |  |  | 10,938 |
Maintenance Rights |  |  | 16,468 |  |  | 22,680 |
Operating lease related receivable, net of allowances |  |  | 7,853 |  |  | 4,170 |
Spare parts inventory |  |  | 17,554 |  |  | 16,420 |
Due from affiliate |  |  | 24,723 |  |  | 20,286 |
Investments |  |  | 45,406 |  |  | 41,295 |
Investment in subsidiaries |  |  | (2,879) |  |  | (1,280) |
Property, equipment & furnishings, less accumulated depreciation |  |  | 16,096 |  |  | 19,964 |
Intangible assets, net |  |  | 1,021 |  |  | 271 |
Other assets, net |  |  | 12,289 |  |  | 8,118 |
Total assets |  | $ | 976,642 |  | $ | 898,780 |
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 13,428 |  | $ | 17,659 |
Deferred income taxes |  |  | 43,265 |  |  | 37,358 |
Notes payable |  |  | 626,876 |  |  | 572,759 |
Maintenance reserves |  |  | 54,655 |  |  | 38,072 |
Security deposits |  |  | 18,555 |  |  | 20,612 |
Unearned lease revenue |  |  | 3,843 |  |  | 3,090 |
Total liabilities |  |  | 760,622 |  |  | 689,550 |
Redeemable preferred stock ($0.01 par value, 1,000,000 shares authorized; 1,000,000 and nil shares issued and outstanding at December 31, 2016 and 2015, respectively) |  |  | 19,760 |  |  | — |
Shareholders’ equity: |  |  |  |  |  |  |
Common stock ($0.01 par value, 20,000,000 shares authorized; 6,401,929 and 7,548,395 shares issued and outstanding at December 31, 2016 and 2015, respectively) |  |  | 64 |  |  | 75 |
Paid-in capital in excess of par |  |  | 2,512 |  |  | 28,727 |
Retained earnings |  |  | 194,729 |  |  | 180,949 |
Accumulated other comprehensive loss, net of income tax benefit |  |  | (1,045) |  |  | (521) |
Total shareholders’ equity |  |  | 196,260 |  |  | 209,230 |
Total liabilities, redeemable preferred stock and equity |  | $ | 976,642 |  | $ | 898,780 |
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED STATEMENTS OF INCOME Parent Company Information (In thousands)
|  | Years Ended December 31, |
|  | 2016 |  | 2015 |  | 2014 |
REVENUE |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 76,283 |  | $ | 63,443 |  | $ | 50,492 |
Maintenance reserve revenue |  |  | 30,742 |  |  | 29,937 |  |  | 22,229 |
Spare parts and equipment sales |  |  | 8,404 |  |  | 20,210 |  |  | 7,588 |
Gain on sale of leased equipment |  |  | 3,322 |  |  | 2,420 |  |  | 2,276 |
Other revenue |  |  | 10,660 |  |  | 7,017 |  |  | 5,227 |
Total revenue |  |  | 129,411 |  |  | 123,027 |  |  | 87,812 |
EXPENSES |  |  |  |  |  |  |  |  |  |
Depreciation expense |  |  | 43,451 |  |  | 40,623 |  |  | 29,276 |
Cost of spare parts and equipment sales |  |  | 6,591 |  |  | 13,559 |  |  | 6,354 |
Write-down of equipment |  |  | 5,989 |  |  | 6,764 |  |  | 4,681 |
General and administrative |  |  | 39,201 |  |  | 35,898 |  |  | 29,479 |
Technical expense |  |  | 4,637 |  |  | 6,805 |  |  | 4,455 |
Interest expense |  |  | 23,358 |  |  | 18,448 |  |  | 13,500 |
Total expenses |  |  | 123,227 |  |  | 122,097 |  |  | 87,745 |
Earnings from operations |  |  | 6,184 |  |  | 930 |  |  | 67 |
Earnings from joint ventures |  |  | 1,813 |  |  | 1,175 |  |  | 1,329 |
Income before income taxes |  |  | 7,997 |  |  | 2,105 |  |  | 1,396 |
Income tax expense |  |  | 4,710 |  |  | 2,277 |  |  | 1,346 |
Equity in income of subsidiaries, net of tax of $5,168, $4,037, and $3,214 at December 31, 2016, 2015 and 2014, respectively |  |  | 10,782 |  |  | 6,632 |  |  | 7,130 |
Net income |  | $ | 14,069 |  | $ | 6,460 |  | $ | 7,180 |
Preferred stock dividends |  |  | 281 |  |  | — |  |  | — |
Accretion of preferred stock issuance costs |  |  | 8 |  |  | — |  |  | — |
Net income attributable to common shareholders |  | $ | 13,780 |  | $ | 6,460 |  | $ | 7,180 |
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Parent Company Information (In thousands)
|  | Years Ended December 31,
|  | 2016 |  | 2015 |  | 2014
Net income |  | $ | 14,069 |  | $ | 6,460 |  | $ | 7,180
Other comprehensive income: |  |  |  |  |  |  |  |  |
Currency translation adjustment |  |  | (868) |  |  | (796) |  |  | —
Unrealized losses on derivative instruments |  |  | 69 |  |  | — |  |  | —
Reclassification adjustment for losses (gains) included in net income |  |  | — |  |  | — |  |  | (499)
Net gain (loss) recognized in other comprehensive income |  |  | (799) |  |  | (796) |  |  | (499)
Tax benefit (expense) related to items of other comprehensive income (loss) |  |  | 275 |  |  | 275 |  |  | 174
Other comprehensive income from parent |  |  | (524) |  |  | (521) |  |  | (325)
Total comprehensive income |  | $ | 13,545 |  | $ | 5,939 |  | $ | 6,855
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED STATEMENTS OF CASH FLOWS Parent Company Information (In thousands)
|  | Years Ended December 31, |
|  | 2016 |  | 2015 |  | 2014 |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 14,069 |  | $ | 6,460 |  | $ | 7,180 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |
Equity in income of subsidiaries |  |  | (10,782) |  |  | (6,632) |  |  | (7,130) |
Depreciation expense |  |  | 43,451 |  |  | 40,623 |  |  | 29,276 |
Write-down of equipment |  |  | 5,989 |  |  | 6,764 |  |  | 4,681 |
Stock-based compensation expenses |  |  | 3,717 |  |  | 4,150 |  |  | 3,509 |
Amortization of deferred costs |  |  | 2,704 |  |  | 2,646 |  |  | 2,391 |
Amortization of interest rate derivative cost |  |  | — |  |  | — |  |  | (499) |
Allowances and provisions |  |  | (1) |  |  | (17) |  |  | 34 |
Gain on sale of leased equipment |  |  | (3,322) |  |  | (2,420) |  |  | (2,276) |
Income from joint ventures |  |  | (1,813) |  |  | (1,175) |  |  | (1,329) |
Loss on extinguishment of debt |  |  | 137 |  |  | — |  |  | — |
Deferred income taxes |  |  | 4,710 |  |  | 1,806 |  |  | 1,478 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |  |
Receivables |  |  | (4,884) |  |  | (865) |  |  | (1,204) |
Spare parts inventory |  |  | (1,608) |  |  | 4,547 |  |  | (5,533) |
Intangibles |  |  | (750) |  |  | — |  |  | — |
Other assets |  |  | (2,648) |  |  | (2,420) |  |  | (942) |
Accounts payable and accrued expenses |  |  | 3,723 |  |  | 4,471 |  |  | 2,425 |
Due to / from subsidiaries |  |  | (4,437) |  |  | (1,242) |  |  | (17,651) |
Maintenance reserves |  |  | 16,583 |  |  | 5,227 |  |  | 17,563 |
Security deposits |  |  | (2,283) |  |  | 5,354 |  |  | 2,303 |
Unearned lease revenue |  |  | 878 |  |  | 817 |  |  | 1,048 |
Net cash provided by operating activities |  |  | 63,433 |  |  | 68,094 |  |  | 35,324 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |
Increase in investment in subsidiaries |  |  | (2,329) |  |  | (23,923) |  |  | (9,666) |
Distributions received from subsidiaries |  |  | 15,500 |  |  | 3,791 |  |  | 17,582 |
Proceeds from sale of equipment held for operating lease (net of selling expenses) |  |  | 60,893 |  |  | 18,792 |  |  | 21,360 |
Capital contribution to joint venture |  |  | (5,545) |  |  | (630) |  |  | (17,623) |
Distributions received from joint venture |  |  | 1,167 |  |  | 1,304 |  |  | 847 |
Maintenance rights payments received |  |  | — |  |  | 5,802 |  |  | — |
Purchase of equipment held for operating lease |  |  | (167,874) |  |  | (161,888) |  |  | (101,710) |
Purchase of maintenance rights |  |  | (5,530) |  |  | (8,844) |  |  | (3,296) |
Purchase of property, equipment and furnishings |  |  | (443) |  |  | (3,736) |  |  | (13,767) |
Net cash used in investing activities |  |  | (104,161) |  |  | (169,332) |  |  | (106,273) |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |
Proceeds from issuance of notes payable |  |  | 149,000 |  |  | 192,700 |  |  | 154,395 |
Debt issuance cost |  |  | (3,808) |  |  | (13) |  |  | (5,074) |
Proceeds from shares issued under stock compensation plans |  |  | 155 |  |  | 518 |  |  | 410 |
Cancellation of restricted stock units in satisfaction of withholding tax |  |  | (1,369) |  |  | (1,558) |  |  | (1,544) |
Security deposit |  |  | 455 |  |  | (1,606) |  |  | 4,553 |
Repurchase of common stock |  |  | (28,958) |  |  | (16,500) |  |  | (5,352) |
Excess tax benefit from stock-based compensation |  |  | 236 |  |  | 26 |  |  | 311 |
Proceeds from issuance of preferred stock |  |  | 19,752 |  |  | — |  |  | — |
Principal payments on notes payable |  |  | (93,055) |  |  | (71,846) |  |  | (75,859) |
Net cash provided by financing activities |  |  | 42,408 |  |  | 101,721 |  |  | 71,840 |
Increase/(decrease) in cash and cash equivalents |  |  | 1,680 |  |  | 483 |  |  | 891 |
Cash and cash equivalents at beginning of period |  |  | 2,894 |  |  | 2,411 |  |  | 1,520 |
Cash and cash equivalents at end of period |  | $ | 4,574 |  | $ | 2,894 |  | $ | 2,411 |
Supplemental disclosures of cash flow information: |  |  |  |  |  |  |  |  |  |
Net cash paid for: |  |  |  |  |  |  |  |  |  |
Interest |  | $ | 20,619 |  | $ | 16,462 |  | $ | 11,110 |
Income Taxes |  | $ | 20 |  | $ | 75 |  | $ | 76 |
Supplemental disclosures of non-cash investing and financing activities: |  |  |  |  |  |  |  |  |  |
During the years ended December 31, 2016, 2015, 2014, engines and equipment totaling $229, $41,410 and $120,880, respectively, were transferred to the parent from its subsidiaries. |  |  |  |  |  |  |  |  |  |
During the years ended December 31, 2016, 2015, 2014, engines and equipment totaling $18,194, $21,786 and $3,071, respectively, were transferred from Held for Operating Lease to Held for Sale. |  |  |  |  |  |  |  |  |  |
During the years ended December 31, 2016, 2015 and 2014, engines and equipment totaling nil, $6,061 and $9,649, respectively, were transferred from Held for Sale to Spare Parts Inventory. |  |  |  |  |  |  |  |  |  |
During the years ended December 31, 2016, an aircraft of $2,925 was transferred from Property, equipment and furnishings to Assets Held for Lease. |  |  |  |  |  |  |  |  |  |
As of December 31, 2016, accrued preferred stock dividends were $281. |  |  |  |  |  |  |  |  |  |
During the year ended December 31, 2016, the accretion of preferred stock issuance costs was $8. |  |  |  |  |  |  |  |  |  |

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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 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: 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=68079674&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: 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 + Details
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