Investments

12 Months Ended

Dec. 31, 2020

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 December 31, 2020, WMES owned a lease portfolio, inclusive of a note receivable, of 36 engines and five aircraft with a net book value of $289.2 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 Lease Finance 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 December 31, 2020, CASC Willis owned a lease portfolio of four engines with a net book value of $50.1 million.


As of December 31, 2020	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	8,312		266		8,578
Contribution	5,713		—		5,713
Distribution	(3,300)		—		(3,300)
Foreign currency translation adjustment	—		(222)		(222)
Other comprehensive loss from joint ventures	(774)		—		(774)
Investment in joint ventures as of December 31, 2019	44,134		13,802		57,936
Earnings from joint ventures	1,552		1,090		2,642
Contribution	—		—		—
Distribution	(7,200)		—		(7,200)
Foreign currency translation adjustment	—		1,018		1,018
Other comprehensive loss from joint ventures	(1,121)		—		(1,121)
Investment in joint ventures as of December 31, 2020	$	37,365	$	15,910	$	53,275

“Other revenue” on the Consolidated Statements of Income includes management fees earned of $1.6 million and $2.9 million during the years ended December 31, 2020 and 2019, respectively, related to the servicing of engines for the WMES lease portfolio.

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


	Years Ended December 31,
	2020		2019
	(in thousands)
Revenue	$	38,086	$	55,770
Expenses	35,190		41,253
WMES net income	$	2,896	$	14,517


	As of December 31,
	2020		2019
	(in thousands)
Total assets	$	303,886	$	322,606
Total liabilities	219,836		227,052
Total WMES net equity	$	84,050	$	95,554

The difference between the Company’s investment in WMES and 50% of total WMES net equity is primarily attributable to the recognition of deferred gains related to engines sold by the Company to WMES.