XML 28 R11.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Investments | 9 Months Ended
--- | ---
Sep. 30, 2017
Investments |
Investments | 3. 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 investment has increased to $35.2 million as of September 30, 2017 as a net result of the Company receiving $1.9 million in distributions, recording $0.4 million as deferred gain as a result of the Company selling an engine to WMES and the Company’s share of WMES reported income of $5.1 million during the nine months ended September 30, 2017. On June 3, 2014 we entered into an agreement with China Aviation Supplies Import & Export Corporation (“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. In October 2014, we made a $15.0 million initial capital contribution, representing our fifty percent, up-front funding contribution to the new joint venture. The company acquires and leases jet engines to Chinese airlines and concentrates on meeting the fast growing demand for leased commercial aircraft engines and aviation assets in the People’s Republic of China. During the nine months ended September 30, 2017 the Company recorded $0.5 million as deferred gain as a result of the Company selling an engine to CASC Willis, recorded $0.6 million foreign currency translation adjustment and the Company’s share of CASC Willis reported income of $1.0 million. Our investment in the joint venture is $14.1 million as of September 30, 2017.
Nine Months Ended September 30, 2017 |  | WMES |  | CASC |  | Total
|  | (in thousands)
Investment in joint ventures as of December 31, 2016 |  | $ | 32,470 |  | $ | 12,936 |  | $ | 45,406
Earnings from joint venture |  |  | 5,055 |  |  | 1,000 |  |  | 6,055
Deferred gain on engine sale |  |  | (443) |  |  | (496) |  |  | (939)
Distribution |  |  | (1,880) |  |  | — |  |  | (1,880)
Foreign Currency Translation Adjustment |  |  | — |  |  | 620 |  |  | 620
Investment in joint ventures as of September 30, 2017 |  | $ | 35,202 |  | $ | 14,060 |  | $ | 49,262
“Other revenue” on the Consolidated Statement of Income includes management fees earned of $1.8 million and $0.5 million during the nine months ended September 30, 2017 and 2016, respectively, related to the servicing of engines for the WMES lease portfolio. “Gain on sale of leased equipment” on the Consolidated Statement of Income includes $0.9 million for the nine months ended September 30, 2017 related to both the sale of an engine to WMES ($0.4 million gain) and the sale of an engine to CASC Willis ($0.5 million gain). “Gain on sale of leased equipment” on the Consolidated Statement of Income includes $1.2 million for the nine months ended September 30, 2016 related to the sale of four engines to WMES for $46.1 million. As 50% owners of WMES and CASC Willis, we deferred these gains to our investment which is being amortized over a 15-year period to a 55% residual value. Summarized financial information for 100% of WMES is presented in the following tables:
|  | Three Months Ended September 30,
|  | 2017 |  | 2016
|  | (in thousands)
Revenue |  | $ | 12,286 |  | $ | 8,549
Expenses |  |  | 6,366 |  |  | 7,496
WMES income before income taxes |  | $ | 5,920 |  | $ | 1,053
|  | Nine Months Ended September 30,
|  | 2017 |  | 2016
|  | (in thousands)
Revenue |  | $ | 32,146 |  | $ | 25,547
Expenses |  |  | 20,820 |  |  | 23,886
WMES income before income taxes |  | $ | 11,326 |  | $ | 1,661
|  | September 30, |  |  | December 31,
|  | 2017 |  |  | 2016
|  | (in thousands)
Total assets |  | $ | 241,904 |  | $ | 293,299
Total liabilities |  |  | 162,369 |  |  | 219,881
Total WMES net equity |  | $ | 79,535 |  | $ | 73,418

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=66011266&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=64825282&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=64825282&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