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Investments

3 Months Ended

Mar. 31, 2020

Investments [Abstract]

Investments

Investments

In 2011, the Company 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. As of March 31, 2020, WMES owned a lease portfolio of 36 engines and five aircraft with a net book value of $302.9 million.

In 2014, the Company 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 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. CASC Willis acquires and leases jet engines to Chinese airlines and concentrates on the demand for leased commercial aircraft engines and aviation assets in the People’s Republic of China. As of March 31, 2020, CASC Willis owned a lease portfolio of four engines with a net book value of $47.8 million.

Three Months Ended March 31, 2020		WMES				CASC Willis				Total
		(in thousands)
Investment in joint ventures as of December 31, 2019		$	44,134			$	13,802			$	57,936
Earnings from joint ventures		205				2				207
Foreign currency translation adjustment		—				(221		)		(221		)
Investment in joint ventures as of March 31, 2020		$	44,339			$	13,583			$	57,922

“Other revenue” on the Condensed Consolidated Statements of Income includes management fees earned of $0.5 million and $0.6 million during the three months ended March 31, 2020 and 2019, respectively, related to the servicing of engines for the WMES lease portfolio.

There were no aircraft or engine sales to WMES during the three months ended March 31, 2020. During the three months ended March 31, 2019, the Company sold five aircraft to WMES for $75.5 million.

There were no aircraft or engine sales to CASC Willis during the three months ended March 31, 2020 or 2019.

Unaudited summarized financial information for 100% of WMES is presented in the following tables:

	Three Months Ended March 31
	2020				2019
	(in thousands)
Revenue	$	8,111			$	9,543
Expenses	7,754				8,372
WMES net income	$	357			$	1,171

	March 31, 2020				December 31, 2019
	(in thousands)
Total assets	$	331,526			$	322,606
Total liabilities	235,615				227,052
Total WMES net equity	$	95,911			$	95,554

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- 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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SX 210.3A-04)
-URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-URI http://asc.fasb.org/topic&trid=2196965

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- References

No definition available.

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