(4) Investments

On May 25, 2011, we 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. The initial capital contribution by the Company for its investment in WMES was $8.0 million. The Company provided the initial lease portfolio by transferring 7 engines to the joint venture in June 2011. In addition, the Company made $1.0 million and $5.6 million capital contributions to WMES in the years ended December 31, 2011 and December 31, 2012, respectively, for the purchase of 8 engines from third parties, increasing the number of engines in the lease portfolio to 15. The $14.6 million of capital contributions has been partially offset by $3.6 million, resulting in a net investment of $11.0 million, which has increased to $11.8 million as a result of the Company’s share of WMES reported earnings to date. The $3.6 million reduction in investment represents 50% of the $7.2 million gain related to the sale by the Company of the 7 engines to WMES.

WMES has a loan agreement with JA Mitsui Leasing, Ltd. which provides a credit facility of up to $180.0 million to support the funding of future engine acquisitions. Funds are available under the loan agreement through March 31, 2013. WMES also established a separate credit facility for $8.0 million to fund the purchase of an engine, which is repayable over the 7 year term of the facility. Our investment in the joint venture is $11.8 million and $5.4 million as of December 31, 2012 and December 31, 2011, respectively.

We hold a fifty percent membership interest in a joint venture, WOLF A340, LLC, a Delaware limited liability company, (“WOLF”). On December 30, 2005, WOLF completed the purchase of two Airbus A340-313 aircraft from Boeing Aircraft Holding Company for a purchase price of $96.0 million. The purchase was funded by four term notes with one financial institution totaling $76.8 million, with interest payable at LIBOR plus 1.0% to 2.5% and maturing in 2013. These aircraft are currently on lease to Emirates until March and May 2013. Our investment in the joint venture is $10.1 million and $9.9 million as of December 31, 2012 and December 31, 2011, respectively.

Year Ending December 31, 2012 and 2011 (in thousands)	WOLF			WMES		Total
Investment in joint ventures as of December 31, 2010	$	9,381		$	—	$	9,381
Investment	—			5,373		5,373
Earnings from joint ventures	1,292			3		1,295
Distribution	(810		)	—		(810		)
Investment in joint ventures as of December 31, 2011	$	9,863		$	5,376	$	15,239
Investment	—			5,635		5,635
Earnings from joint ventures	1,004			755		1,759
Distribution	(802		)	—		(802		)
Investment in joint ventures as of December 31, 2012	$	10,065		$	11,766	$	21,831

In July 1999, we entered into an agreement to participate in a joint venture formed as a limited company - Sichuan Snecma Aero-engine Maintenance Co. Ltd. (“Sichuan Snecma”) for the purpose of providing airlines in the Asia Pacific area with modern maintenance, leased engines and spare parts. Sichuan Snecma focuses on providing maintenance services for CFM56 series engines and is located in Chengdu, China. The investment of $1.48 million represented a 4.6% interest in the joint venture. On November 8, 2010, the sale of the Company’s interest in Sichuan Snecma was completed. The sales proceeds totaled $3.5 million, resulting in a gain of $2.0 million on the sale which was recorded as Other revenue in 2010.