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Investments | 3 Months Ended
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Mar. 31, 2025
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 50% interest in the joint venture, and the Company uses the equity method in recording investment activity. As of March 31, 2025, WMES owned a lease portfolio, inclusive of 53 engines with a net book value of $363.1 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 50% 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, 2025, CASC Willis owned a lease portfolio of four engines with a net book value of $37.3 million. In March 2025, the Company entered into an agreement with independent MRO (Maintenance, Repair and Overhaul) provider Global Engine Maintenance to create a joint venture named Willis Global Engine Testing (“WGET”) to build an engine test facility in West Palm Beach, Florida. The Company has a 70% membership interest, and Global Engine Maintenance has a 30% membership interest. WGET is a VIE that the Company is not the primary beneficiary of since the power to direct the activities that most significantly impact WGET’s economic performance is shared between the Company and Global Engine Maintenance. The Company’s considerations in determining the VIE’s most significant activities and whether the Company has the power to direct those activities include, but are not limited to, the VIE’s purpose and design and the matters that require unanimous approval from both parties. Accordingly, the Company does not consolidate WGET, and the Company uses the equity method in recording investment activity. The Company made an initial capital contribution of $1.6 million, which represents 70% of the cost of the land that the engine test facility is being built on.
As of March 31, 2025 |  | WMES |  | CASC Willis |  | WGET |  | Total
|  | (in thousands)
Investment in joint ventures as of December 31, 2024 |  | $ | 44,756 |  |  | $ | 17,914 |  |  | $ | — |  |  | $ | 62,670 |
Income from joint ventures |  | 1,106 |  |  | 245 |  |  | — |  |  | 1,351 |
Foreign currency translation adjustment |  | — |  |  | 5 |  |  | — |  |  | 5 |
Other comprehensive loss from joint ventures |  | (411) |  |  | — |  |  | — |  |  | (411) |
Initial capital contribution |  | — |  |  | — |  |  | 1,595 |  |  | 1,595 |
Investment in joint ventures as of March 31, 2025 |  | $ | 45,451 |  |  | $ | 18,164 |  |  | $ | 1,595 |  |  | $ | 65,210 |
“Other revenue” on the Condensed Consolidated Statements of Income includes management fees earned of $1.2 million and $1.4 million during the three months ended March 31, 2025 and 2024, respectively, related to the servicing of engines for the WMES lease portfolio. During the three months ended March 31, 2025, the Company sold three engines and one airframe to WMES for a total of $32.2 million, which resulted in a total net gain of $1.6 million for the Company. As of March 31, 2025, the Company subleased two WMES engines to a third party, with WMES as the head lessor. As of March 31, 2025, the total ROU asset and lease liability balances under these leases were $2.1 million, each. As of March 31, 2024, the Company subleased one WMES engine to a third party, with WMES as the head lessor. As of March 31, 2024, the ROU asset and lease liability balances under this lease were $2.9 million, each. Unaudited summarized financial information for 100% of WMES is presented in the following tables:
| Three months ended March 31,
2025 |  | 2024
(in thousands)
Revenue | $ | 18,251 |  |  | $ | 18,926 |
Expenses | 16,107 |  |  | 13,762 |
WMES net income | $ | 2,144 |  |  | $ | 5,164 |
| March 31, 2025 |  | December 31, 2024
(in thousands)
Total assets | $ | 385,711 |  |  | $ | 352,783 |
Total liabilities | 287,661 |  |  | 256,055 |
Total WMES net equity | $ | 98,050 |  |  | $ | 96,728 |
The difference between the Company’s investment in WMES and 50% of total WMES net equity, as well as the difference between the Company’s income or loss from WMES and 50% of total WMES net income, is primarily attributable to the recognition of deferred gains, which are related to engines sold by WMES to the Company, and prior to the adoption of ASU 2017-05, related to engines both sold by WMES to the Company or sold by the Company to WMES. The following table presents information about our nonconsolidated VIE in which we hold a variable interest:
|  | March 31, 2025
|  | VIE Assets |  | VIE Liabilities |  | Maximum Exposure to Loss
|  | (in thousands)
WGET |  | $ | 2,279 |  |  | $ | — |  |  | $ | 1,595 |
Our maximum exposure to loss is limited to our investment.

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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/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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