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, $5.6 million and $6.1 million capital contributions to WMES in the years ended December 31, 2011, 2012 and the three months ended March 31, 2013, respectively, for the purchase of 16 engines from third parties, increasing the number of engines in the lease portfolio to 23. Mitsui & Co., Ltd. contributed equally the capital contribution to support all of these purchases. The $20.7 million of capital contributions has been partially offset by $3.6 million, resulting in a net investment of $17.1 million, which has increased to $17.7 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 and WMES is currently negotiating an extension. 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 $17.7 million and $11.8 million as of March 31, 2013 and December 31, 2012, 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 one-month LIBOR plus 1.0% to 2.5% and maturing in May 2013. One of the aircraft is currently completing the lease return process with Emirates and the other aircraft will be returned from Emirates when the lease term expires in May 2013. Upon return, the airframes will be disassembled and parted out and the eight engines will be leased separately to airline customers. WOLF is currently working with the financial institution to structure a four year loan to support continued leasing operations. Our investment in the joint venture is $10.3 million and $10.1 million as of March 31, 2013 and December 31, 2012, respectively.

Three Months Ended March 31, 2013 (in thousands)	WOLF		WMES			Total

Investment in joint ventures as of December 31, 2012	$	10,065	$	11,766		$	21,831
Capital contribution	—		6,146			6,146
Earnings (losses) from joint ventures	275		(182		)	93
Distribution	—		—			—
Investment in joint ventures as of March 31, 2013	$	10,340	$	17,730		$	28,070