XML 46 R24.htm IDEA: XBRL DOCUMENT
v3.8.0.1

SCHEDULE I - Parent Company Information | 12 Months Ended
--- | ---
Dec. 31, 2017
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, |
|  | 2017 |  | 2016 |
ASSETS |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,860 |  | $ | 4,574 |
Equipment held for operating lease, less accumulated depreciation |  |  | 662,162 |  |  | 811,091 |
Maintenance rights |  |  | 3,296 |  |  | 16,468 |
Equipment held for sale |  |  | 34,084 |  |  | 22,446 |
Operating lease related receivables, net of allowances |  |  | 7,980 |  |  | 7,853 |
Spare parts inventory |  |  | 11,643 |  |  | 17,554 |
Due from affiliates, net |  |  | 18,439 |  |  | 24,723 |
Investments |  |  | 50,641 |  |  | 45,406 |
Investment in subsidiaries |  |  | 50,047 |  |  | (2,879) |
Property, equipment & furnishings, less accumulated depreciation |  |  | 15,238 |  |  | 16,096 |
Intangible assets, net |  |  | 271 |  |  | 1,021 |
Prepaid deposits |  |  | 36,455 |  |  | 4,399 |
Other assets, net |  |  | 8,385 |  |  | 7,890 |
Total assets |  | $ | 901,501 |  | $ | 976,642 |
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 15,686 |  | $ | 13,428 |
Due to affiliates, net |  |  | 2,300 |  |  | — |
Deferred income taxes |  |  | 7,456 |  |  | 43,265 |
Debt obligations |  |  | 508,350 |  |  | 626,876 |
Maintenance reserves |  |  | 36,809 |  |  | 54,655 |
Security deposits |  |  | 17,795 |  |  | 18,555 |
Unearned revenue |  |  | 4,724 |  |  | 3,843 |
Total liabilities |  |  | 593,120 |  |  | 760,622 |
Redeemable preferred stock ($0.01 par value, 2,500 shares authorized; 2,500 and 1,000 shares issued and outstanding at December 31, 2017 and 2016, respectively) |  |  | 49,471 |  |  | 19,760 |
Shareholders’ equity: |  |  |  |  |  |  |
Common stock ($0.01 par value, 20,000 shares authorized; 6,419 and 6,402 shares issued and outstanding at December 31, 2017 and 2016, respectively) |  |  | 64 |  |  | 64 |
Paid-in capital in excess of par |  |  | 2,319 |  |  | 2,512 |
Retained earnings |  |  | 256,301 |  |  | 194,729 |
Accumulated other comprehensive income (loss), net of income tax (expense) benefit |  |  | 226 |  |  | (1,045) |
Total shareholders’ equity |  |  | 258,910 |  |  | 196,260 |
Total liabilities, redeemable preferred stock and shareholders' equity |  | $ | 901,501 |  | $ | 976,642 |
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED STATEMENTS OF INCOME Parent Company Information (In thousands)
|  | Years Ended December 31, |
|  | 2017 |  | 2016 |  | 2015 |
REVENUE |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 72,580 |  | $ | 76,283 |  | $ | 63,443 |
Maintenance reserve revenue |  |  | 46,163 |  |  | 30,742 |  |  | 29,937 |
Spare parts and equipment sales |  |  | 35,903 |  |  | 8,404 |  |  | 20,210 |
Gain on sale of leased equipment |  |  | 3,696 |  |  | 3,322 |  |  | 2,420 |
Other revenue |  |  | 9,881 |  |  | 10,660 |  |  | 7,017 |
Total revenue |  |  | 168,223 |  |  | 129,411 |  |  | 123,027 |
EXPENSES |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 40,560 |  |  | 43,451 |  |  | 40,623 |
Cost of spare parts and equipment sales |  |  | 29,705 |  |  | 6,591 |  |  | 13,559 |
Write-down of equipment |  |  | 17,881 |  |  | 5,989 |  |  | 6,764 |
General and administrative |  |  | 42,004 |  |  | 39,201 |  |  | 35,898 |
Technical expense |  |  | 7,058 |  |  | 4,637 |  |  | 6,805 |
Net finance costs |  |  | 25,215 |  |  | 23,358 |  |  | 18,448 |
Total expenses |  |  | 162,423 |  |  | 123,227 |  |  | 122,097 |
Earnings from operations |  |  | 5,800 |  |  | 6,184 |  |  | 930 |
Earnings from joint ventures |  |  | 7,158 |  |  | 1,813 |  |  | 1,175 |
Income before income taxes |  |  | 12,958 |  |  | 7,997 |  |  | 2,105 |
Income tax expense |  |  | 4,843 |  |  | 4,710 |  |  | 2,277 |
Equity in income of subsidiaries, net of tax of $(30,990), $5,168, and $4,037 at December 31, 2017, 2016 and 2015, respectively |  |  | 54,043 |  |  | 10,782 |  |  | 6,632 |
Net income |  |  | 62,158 |  |  | 14,069 |  |  | 6,460 |
Preferred stock dividends |  |  | 1,813 |  |  | 281 |  |  | — |
Accretion of preferred stock issuance costs |  |  | 46 |  |  | 8 |  |  | — |
Net income attributable to common shareholders |  | $ | 60,299 |  | $ | 13,780 |  | $ | 6,460 |
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Parent Company Information (In thousands)
|  | Years Ended December 31,
|  | 2017 |  | 2016 |  | 2015
Net income |  | $ | 62,158 |  | $ | 14,069 |  | $ | 6,460
Other comprehensive income: |  |  |  |  |  |  |  |  |
Currency translation adjustment |  |  | 1,061 |  |  | (868) |  |  | (796)
Unrealized gains on derivative instruments |  |  | 896 |  |  | 69 |  |  | —
Net gain (loss) recognized in other comprehensive income |  |  | 1,957 |  |  | (799) |  |  | (796)
Tax (expense) benefit related to items of other comprehensive income |  |  | (686) |  |  | 275 |  |  | 275
Other comprehensive income (loss) |  |  | 1,271 |  |  | (524) |  |  | (521)
Total comprehensive income |  | $ | 63,429 |  | $ | 13,545 |  | $ | 5,939
WILLIS LEASE FINANCE CORPORATION AND SUBSIDIARIES SCHEDULE I — CONDENSED STATEMENTS OF CASH FLOWS Parent Company Information (In thousands)
|  | Years Ended December 31, |
|  | 2017 |  | 2016 |  | 2015 |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 62,158 |  | $ | 14,069 |  | $ | 6,460 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |
Equity in income of subsidiaries |  |  | (54,043) |  |  | (10,782) |  |  | (6,632) |
Depreciation expense |  |  | 40,560 |  |  | 43,451 |  |  | 40,623 |
Write-down of equipment |  |  | 17,881 |  |  | 5,989 |  |  | 6,764 |
Stock-based compensation expenses |  |  | 4,270 |  |  | 3,717 |  |  | 4,150 |
Excess tax benefit from stock-based compensation |  |  | — |  |  | 236 |  |  | 26 |
Amortization of deferred costs |  |  | 3,085 |  |  | 2,704 |  |  | 2,646 |
Allowances and provisions |  |  | 76 |  |  | (1) |  |  | (17) |
Gain on sale of leased equipment |  |  | (3,696) |  |  | (3,322) |  |  | (2,420) |
Gain on insurance settlement |  |  | (1,288) |  |  | — |  |  | — |
Income from joint ventures |  |  | (7,158) |  |  | (1,813) |  |  | (1,175) |
Loss on extinguishment of debt |  |  | — |  |  | 137 |  |  | — |
Deferred income taxes |  |  | 4,843 |  |  | 4,710 |  |  | 1,806 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |  |
Receivables |  |  | 5,366 |  |  | (4,884) |  |  | (865) |
Spare parts inventory |  |  | 5,612 |  |  | (1,608) |  |  | 4,547 |
Intangibles |  |  | — |  |  | (750) |  |  | — |
Other assets |  |  | (4,259) |  |  | (2,648) |  |  | (2,420) |
Accounts payable and accrued expenses |  |  | 2,370 |  |  | 3,723 |  |  | 4,471 |
Due to / from subsidiaries |  |  | 8,584 |  |  | (4,437) |  |  | (1,242) |
Maintenance reserves |  |  | 7,906 |  |  | 16,583 |  |  | 5,227 |
Security deposits |  |  | 6,876 |  |  | (2,283) |  |  | 5,354 |
Unearned lease revenue |  |  | 906 |  |  | 878 |  |  | 817 |
Net cash provided by operating activities |  |  | 100,049 |  |  | 63,669 |  |  | 68,120 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |
Increase in investment in subsidiaries |  |  | (45,609) |  |  | (2,329) |  |  | (23,923) |
Distributions received from subsidiaries |  |  | 347,626 |  |  | 15,500 |  |  | 3,791 |
Proceeds from sale of equipment held for operating lease (net of selling expenses) |  |  | 33,118 |  |  | 60,893 |  |  | 18,792 |
Capital contribution to joint venture |  |  | — |  |  | (5,545) |  |  | (630) |
Proceeds from insurance settlement |  |  | 14,886 |  |  | — |  |  | — |
Distributions received from joint venture |  |  | 1,880 |  |  | 1,167 |  |  | 1,304 |
Maintenance rights payments received |  |  | — |  |  | — |  |  | 5,802 |
Purchase of equipment held for operating lease |  |  | (354,918) |  |  | (167,874) |  |  | (161,888) |
Purchase of maintenance rights |  |  | — |  |  | (5,530) |  |  | (8,844) |
Purchase of property, equipment and furnishings |  |  | (268) |  |  | (443) |  |  | (3,736) |
Net cash used in investing activities |  |  | (3,285) |  |  | (104,161) |  |  | (169,332) |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |
Proceeds from issuance of notes payable |  |  | 350,500 |  |  | 149,000 |  |  | 192,700 |
Debt issuance cost |  |  | — |  |  | (3,808) |  |  | (13) |
Principal payments on notes payable |  |  | (470,606) |  |  | (93,055) |  |  | (71,846) |
Interest bearing security deposits |  |  | (2,261) |  |  | 455 |  |  | (1,606) |
Proceeds from shares issued under stock compensation plans |  |  | 177 |  |  | 155 |  |  | 518 |
Repurchase of common stock |  |  | (3,546) |  |  | (28,958) |  |  | (16,500) |
Proceeds from issuance of preferred stock |  |  | 29,663 |  |  | 19,752 |  |  | — |
Preferred stock dividends |  |  | (1,311) |  |  | — |  |  | — |
Cancellation of restricted stock units in satisfaction of withholding tax |  |  | (1,094) |  |  | (1,369) |  |  | (1,558) |
Net cash (used in) provided by financing activities |  |  | (98,478) |  |  | 42,172 |  |  | 101,695 |
(Decrease)/Increase in cash and cash equivalents |  |  | (1,714) |  |  | 1,680 |  |  | 483 |
Cash and cash equivalents at beginning of period |  |  | 4,574 |  |  | 2,894 |  |  | 2,411 |
Cash and cash equivalents at end of period |  | $ | 2,860 |  | $ | 4,574 |  | $ | 2,894 |
Supplemental disclosures of cash flow information: |  |  |  |  |  |  |  |  |  |
Net cash paid for: |  |  |  |  |  |  |  |  |  |
Interest |  | $ | 21,761 |  | $ | 20,619 |  | $ | 16,462 |
Income Taxes |  | $ | 180 |  | $ | 20 |  | $ | 75 |
Supplemental disclosures of non-cash investing and financing activities: |  |  |  |  |  |  |  |  |  |
Engines and equipment transferred to the parent from its subsidiaries |  | $ | 17,910 |  | $ | 229 |  | $ | 41,410 |
Transfers from Equipment held for operating lease to Equipment held for sale |  | $ | 31,571 |  | $ | 18,194 |  | $ | 21,786 |
Transfers from Equipment held for sale to Spare parts inventory |  | $ | — |  | $ | — |  | $ | 6,061 |
Transfers from Property, equipment and furnishings to Equipment held for lease |  | $ | — |  | $ | 2,925 |  | $ | — |
Accrued preferred stock dividends |  | $ | 783 |  | $ | 281 |  | $ | — |
Accretion of preferred stock issuance costs |  | $ | 46 |  | $ | 8 |  | $ | — |

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

X
- 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
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration