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, 2019, WMES owned a lease portfolio of 33 engines and six aircraft with a net book value of $318.4 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, 2019, CASC Willis owned a lease portfolio of four engines with a net book value of $52.7 million.



Three Months Ended March 31, 2019	WMES		CASC Willis		Total
	(in thousands)
Investment in joint ventures as of December 31, 2018	$	34,183	$	13,758	$	47,941
Earnings from joint ventures	747		199		946
Investment	5,013		—		5,013
Foreign currency translation adjustment	—		353		353
Investment in joint ventures as of March 31, 2019	$	39,943	$	14,310	$	54,253

“Other revenue” on the Condensed Consolidated Statements of Income includes management fees earned of $0.6 million and $0.7 million during the three months ended March 31, 2019 and 2018, respectively. These fees related to the servicing of engines for the WMES lease portfolio. During the three months ended March 31, 2019, the Company sold five aircraft to WMES for $75.5 million. During the three months ended March 31, 2018, the Company sold one aircraft and one engine to WMES for $21.4 million.

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



	Three Months Ended March 31
	2019		2018
	(in thousands)
Revenue	$	9,543	$	7,606
Expenses	8,205		6,904
WMES income before income taxes	$	1,338	$	702



	March 31, 2019		December 31, 2018
	(in thousands)
Total assets	$	325,763	$	274,744
Total liabilities	238,318		198,534
Total WMES net equity	$	87,445	$	76,210