Investments

6 Months Ended

Jun. 30, 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 fifty percent interest in the joint venture and the Company uses the equity method in recording investment activity. As of June 30, 2020, WMES owned a lease portfolio of 36 engines and five aircraft with a net book value of $299.6 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 June 30, 2020, CASC Willis owned a lease portfolio of four engines with a net book value of $47.5 million.



Six Months Ended June 30, 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	920		235			1,155
Foreign currency translation adjustment	—		(226		)	(226		)
Investment in joint ventures as of June 30, 2020	$	45,054	$	13,811		$	58,865

“Other revenue” on the Condensed Consolidated Statements of Income includes management fees earned of $0.3 million and $0.6 million during the three months ended June 30, 2020 and 2019, respectively, and $0.8 million and $1.1 million during the six months ended June 30, 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 six months ended June 30, 2020. During the six months ended June 30, 2019, the Company sold five aircraft to WMES for $75.5 million.

There were no aircraft or engine sales to CASC Willis during the six months ended June 30, 2020 or 2019.

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in thousands)				(in thousands)
Revenue	$	11,804	$	13,594	$	19,915	$	23,137
Expenses	10,425		10,025		18,179		18,398
WMES net income	$	1,379	$	3,569	$	1,736	$	4,739



	June 30, 2020		December 31, 2019
	(in thousands)
Total assets	$	329,540	$	322,606
Total liabilities	232,250		227,052
Total WMES net equity	$	97,290	$	95,554