3. Investments

The Company is a partner with Mitsui & Co., Ltd. in a joint venture based in Dublin, Ireland — Willis Mitsui & Company Engine Support Limited (“WMES”) which acquires and leases jet engines. Each partner holds a fifty percent interest in the joint venture and the Company uses the equity method in recording investment activity. WMES owned a lease portfolio of 35 engines and one aircraft with a net book value of $266.1 million as of September 30, 2018.

The Company is a partner with China Aviation Supplies Company Ltd. (“CASC”) in a joint venture named CASC Willis Engine Lease Company Limited (“CASC Willis”), which is based in Shanghai, China. The Company holds a fifty percent interest in the joint venture and 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. CASC Willis owned a lease portfolio of four engines with a net book value of $52.8 million as of September 30, 2018.


Nine Months Ended September 30, 2018	WMES		CASC Willis		Total
	(in thousands)
Investment in joint ventures as of December 31, 2017	$	36,014	$	14,627	$	50,641
Earnings (losses) from joint ventures		1,831		(262)		1,569
Deferred gain on engine sale		(1,280)		—		(1,280)
Distribution		(5,730)		—		(5,730)
Foreign currency translation adjustment		—		(762)		(762)
Investment in joint ventures as of September 30, 2018	$	30,835	$	13,603	$	44,438

“Other revenue” on the Consolidated Statements of Income includes management fees earned of $0.6 million and $0.5 million during the three months ended September 30, 2018 and 2017, respectively, and $1.8 million during the nine months ended September 30, 2018 and 2017, respectively. These fees related to the servicing of engines for the WMES lease portfolio. During the nine months ended September 30, 2018, the Company sold two engines to WMES for $23.2 million. During the nine months ended September 30, 2017, the Company sold two engines to WMES for $14.8 million.

There were no engine sales to CASC Willis during the nine months ended September 30, 2018. During the nine months ended September 30, 2017, the Company sold one engine to CASC Willis for $11.2 million.

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(in thousands)				(in thousands)
Revenue	$	9,987	$	12,286	$	26,633	$	32,146
Expenses		8,408		6,366		22,762		20,820
WMES income before income taxes	$	1,579	$	5,920	$	3,871	$	11,326

					September 30,		December 31,
					2018		2017
					(in thousands)
Total assets					$	284,988	$	246,309
Total liabilities						211,981		165,228
Total WMES net equity					$	73,007	$	81,081