Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | WILLIS LEASE FINANCE CORP | |
Entity Central Index Key | 0001018164 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 5,875,231 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and cash equivalents | $ 12,181 | $ 11,688 | |
Restricted cash | 68,452 | 70,261 | |
Equipment held for operating lease, less accumulated depreciation of $389,320 and $385,483 at March 31, 2019 and December 31, 2018, respectively | 1,605,120 | 1,673,135 | |
Maintenance rights | 14,763 | 14,763 | |
Equipment held for sale | 629 | 789 | |
Receivables, net of allowances of $2,465 and $2,559 at March 31, 2019 and December 31, 2018, respectively | 24,986 | 23,270 | |
Spare parts inventory | 47,038 | 48,874 | |
Investments | 54,253 | 47,941 | |
Property, equipment & furnishings, less accumulated depreciation of $7,437 and $6,945 at March 31, 2019 and December 31, 2018, respectively | 27,758 | 27,679 | |
Intangible assets, net | 1,359 | 1,379 | |
Notes receivables | 30,854 | 238 | |
Other assets | 18,109 | 14,926 | |
Total assets | [1] | 1,905,502 | 1,934,943 |
Liabilities: | |||
Accounts payable and accrued expenses | 32,410 | 42,939 | |
Deferred income taxes | 96,995 | 90,285 | |
Debt obligations | 1,297,836 | 1,337,349 | |
Maintenance reserves | 93,979 | 94,522 | |
Security deposits | 22,212 | 28,047 | |
Unearned revenue | 5,057 | 5,460 | |
Total liabilities | [2] | 1,548,489 | 1,598,602 |
Redeemable preferred stock ($0.01 par value, 2,500 shares authorized; 2,500 shares issued at March 31, 2019 and December 31, 2018, respectively) | 49,575 | 49,554 | |
Shareholders’ equity: | |||
Common stock ($0.01 par value, 20,000 shares authorized; 6,160 and 6,176 shares issued at March 31, 2019 and December 31, 2018, respectively) | 62 | 62 | |
Paid-in capital in excess of par | 563 | 0 | |
Retained earnings | 306,912 | 286,623 | |
Accumulated other comprehensive (loss) income, net of income tax expense of $23 and $83 at March 31, 2019 and December 31, 2018, respectively | (99) | 102 | |
Total shareholders’ equity | 307,438 | 286,787 | |
Total liabilities, redeemable preferred stock and shareholders' equity | $ 1,905,502 | $ 1,934,943 | |
[1] | Total assets at March 31, 2019 and December 31, 2018, respectively, include the following assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the VIEs: Cash $268 and $656; Restricted cash $68,072 and $70,261; Equipment $1,020,182 and $1,032,599; and Other assets $328 and $1,075, respectively. | ||
[2] | Total liabilities at March 31, 2019 and December 31, 2018, respectively, include the following liabilities of VIEs for which the VIEs’ creditors do not have recourse to Willis Lease Finance Corporation: Debt obligations $890,701 and $903,296, respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 12,181 | $ 11,688 |
Restricted cash | 68,452 | 70,261 |
Other assets | 18,109 | 14,926 |
Debt obligations | 1,297,836 | 1,337,349 |
Equipment held for operating lease, accumulated depreciation | 389,320 | 385,483 |
Operating lease related receivable, allowances | 2,465 | 2,559 |
Property, equipment & furnishings, accumulated depreciation | $ 7,437 | $ 6,945 |
Redeemable preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Redeemable preferred stock shares authorized (in shares) | 2,500,000 | 2,500,000 |
Redeemable preferred stock shares issued (in shares) | 2,500,000 | 2,500,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 6,160,000 | 6,176,000 |
Accumulated other comprehensive loss, income tax expense | $ 23 | $ 83 |
Variable Interest Entity | ||
Cash and cash equivalents | 268 | 656 |
Restricted cash | 68,072 | 70,261 |
Equipment | 1,020,182 | 1,032,599 |
Other assets | 328 | 1,075 |
Debt obligations | $ 890,701 | $ 903,296 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUE | ||
Lease rent revenue | $ 48,369 | $ 39,644 |
Maintenance reserve revenue | 25,350 | 15,440 |
Spare parts and equipment sales | 17,502 | 12,986 |
Gain on sale of leased equipment | 9,570 | 545 |
Other revenue | 2,978 | 1,882 |
Total revenue | 103,769 | 70,497 |
EXPENSES | ||
Depreciation and amortization expense | 20,258 | 17,355 |
Cost of spare parts and equipment sales | 14,412 | 11,388 |
Write-down of equipment | 1,105 | 0 |
General and administrative | 21,440 | 15,611 |
Technical expense | 1,788 | 3,677 |
Interest expense | 17,879 | 13,595 |
Total expenses | 76,882 | 61,626 |
Earnings from operations | 26,887 | 8,871 |
Earnings from joint ventures | 946 | 747 |
Income before income taxes | 27,833 | 9,618 |
Income tax expense | 6,955 | 2,536 |
Net income | 20,878 | 7,082 |
Preferred stock dividends | 801 | 801 |
Accretion of preferred stock issuance costs | 21 | 20 |
Net income attributable to common shareholders | $ 20,056 | $ 6,261 |
Basic weighted average earnings per common share (in dollars per share) | $ 3.47 | $ 1.03 |
Diluted weighted average earnings per common share (in dollars per share) | $ 3.35 | $ 1 |
Basic weighted average common shares outstanding (in shares) | 5,779 | 6,104 |
Diluted weighted average common shares outstanding (in shares) | 5,978 | 6,256 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 20,878 | $ 7,082 |
Other comprehensive income: | ||
Currency translation adjustment | 353 | 585 |
Unrealized (loss) gain on derivative instruments | (613) | 1,031 |
Net (loss) gain recognized in other comprehensive income | (260) | 1,616 |
Tax benefit (expense) related to items of other comprehensive income | 59 | (365) |
Other comprehensive (loss) income | (201) | 1,251 |
Total comprehensive income | $ 20,677 | $ 8,333 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Preferred Stock and Shareholders' Equity - USD ($) $ in Thousands | Total | Redeemable Preferred Stock | Common Stock | Paid in Capital in Excess of Par | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balances, beginning of period (in shares) at Dec. 31, 2017 | 2,500,000 | 6,419,000 | ||||
Balances, beginning of period at Dec. 31, 2017 | $ 258,910 | $ 49,471 | $ 64 | $ 2,319 | $ 256,301 | $ 226 |
Net income | 7,082 | 7,082 | ||||
Net unrealized gain from currency translation adjustment, net of tax expense | 453 | 453 | ||||
Net unrealized (loss) gain from derivative instruments, net of tax benefit (expense) | 799 | 799 | ||||
Shares repurchased (in shares) | (297,000) | |||||
Shares repurchased | (10,183) | $ (2) | (2,698) | (7,483) | ||
Shares issued under stock compensation plans (in shares) | 18,000 | |||||
Shares issued under stock compensation plans | 118 | $ 1 | 117 | |||
Cancellation of restricted stock in satisfaction of withholding tax (in shares) | (24,000) | |||||
Cancellation of restricted stock in satisfaction of withholding tax | (665) | $ (2) | (663) | |||
Stock-based compensation expense | 925 | 925 | ||||
Accretion of preferred stock issuance costs | (20) | $ 20 | (20) | |||
Preferred stock dividends ($0.32 per share) | (801) | (801) | ||||
Balances, end of period (in shares) at Mar. 31, 2018 | 2,500,000 | 6,116,000 | ||||
Balances, end of period at Mar. 31, 2018 | 256,618 | $ 49,491 | $ 61 | 0 | 255,020 | 1,537 |
Balances, beginning of period (in shares) at Dec. 31, 2018 | 2,500,000 | 6,176,000 | ||||
Balances, beginning of period at Dec. 31, 2018 | 286,787 | $ 49,554 | $ 62 | 0 | 286,623 | 102 |
Net income | 20,878 | 20,878 | ||||
Net unrealized gain from currency translation adjustment, net of tax expense | 273 | 273 | ||||
Net unrealized (loss) gain from derivative instruments, net of tax benefit (expense) | (474) | (474) | ||||
Shares repurchased (in shares) | (7,671) | |||||
Shares repurchased | (317) | (317) | ||||
Shares issued under stock compensation plans (in shares) | 7,000 | |||||
Shares issued under stock compensation plans | 160 | 160 | ||||
Cancellation of restricted stock in satisfaction of withholding tax (in shares) | (15,000) | |||||
Cancellation of restricted stock in satisfaction of withholding tax | (545) | (545) | ||||
Stock-based compensation expense | 1,265 | 1,265 | ||||
Accretion of preferred stock issuance costs | (21) | $ 21 | (21) | |||
Preferred stock dividends ($0.32 per share) | (801) | (801) | ||||
Balances, end of period (in shares) at Mar. 31, 2019 | 2,500,000 | 6,160,000 | ||||
Balances, end of period at Mar. 31, 2019 | $ 307,438 | $ 49,575 | $ 62 | $ 563 | $ 306,912 | $ (99) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Redeemable Preferred Stock and Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Net unrealized gain (loss) from currency translation adjustments, tax benefit | $ 80 | $ 132 |
Net unrealized gain (loss) from derivative instruments, tax benefit (expense) | $ (139) | $ 233 |
Preferred stock dividends (in dollars per share) | $ 0.32 | $ 0.32 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 20,878 | $ 7,082 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 20,258 | 17,355 |
Write-down of equipment | 1,105 | 0 |
Stock-based compensation expenses | 1,265 | 925 |
Amortization of deferred costs | 1,757 | 1,433 |
Allowances and provisions | 274 | 242 |
Gain on sale of leased equipment | (9,570) | (545) |
Income from joint ventures | (946) | (747) |
Loss on disposal of property, equipment and furnishings | (36) | 0 |
Income taxes | 7,014 | 2,300 |
Changes in assets and liabilities: | ||
Receivables | (1,990) | (6,026) |
Inventory | 8,538 | 1,830 |
Other assets | (308) | 276 |
Accounts payable and accrued expenses | (8,954) | (437) |
Maintenance reserves | (543) | 9,389 |
Security deposits | (2,711) | 1,038 |
Unearned revenue | (403) | 1,166 |
Net cash provided by operating activities | 35,628 | 35,281 |
Cash flows from investing activities: | ||
Proceeds from sale of equipment (net of selling expenses) | 133,768 | 18,393 |
Issuance of notes receivables | (30,783) | 0 |
Payments received on notes receivables | 166 | 8 |
Capital contributions to joint ventures | (5,013) | 0 |
Deposit received for proposed sale of equipment | 0 | 3,400 |
Purchase of equipment held for operating lease | (92,226) | (138,626) |
Purchase of property, equipment and furnishings | (606) | (290) |
Net cash provided by (used in) investing activities | 5,306 | (117,115) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt obligations | 102,120 | 123,000 |
Principal payments on debt obligations | (142,880) | (29,779) |
Proceeds from shares issued under stock compensation plans | 160 | 118 |
Cancellation of restricted stock units in satisfaction of withholding tax | (545) | (665) |
Repurchase of common stock | (286) | (74) |
Preferred stock dividends | (819) | (917) |
Net cash (used in) provided by financing activities | (42,250) | 91,683 |
(Decrease)/Increase in cash, cash equivalents and restricted cash | (1,316) | 9,849 |
Cash, cash equivalents and restricted cash at beginning of period | 81,949 | 47,324 |
Cash, cash equivalents and restricted cash at end of period | 80,633 | 57,173 |
Net cash paid for: | ||
Interest | 17,301 | 12,187 |
Income Taxes | (359) | 71 |
Supplemental disclosures of non-cash activities: | ||
Purchase of aircraft and engines | 0 | 3,762 |
Transfers from Equipment held for operating lease to Equipment held for sale | 0 | 1,898 |
Transfers from Equipment held for operating lease to Spare parts inventory | 6,702 | 0 |
Transfers from Equipment held for sale to Spare parts inventory | 4,471 | 24,014 |
Accrued preferred stock dividends | 667 | 667 |
Accrued share repurchases | $ 100 | $ 10,109 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies of the Company were described in Note 1 to the audited consolidated financial statements included in the Company’s 2018 Annual Report on Form 10-K (“2018 Form 10-K”). There have been no significant changes in the Company’s significant accounting policies for the three months ended March 31, 2019 , except as disclosed in Note 1(d). (a) Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. Therefore, they do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the 2018 Form 10-K. In the opinion of management, the Unaudited Condensed Consolidated Financial Statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of income, statements of comprehensive income, statements of redeemable preferred stock and shareholders' equity and statements of cash flows for such interim periods presented. Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. In accordance with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. These estimates and judgments are based on historical experience and other assumptions that management believes are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. The significant estimates made in the accompanying Unaudited Condensed Consolidated Financial Statements include certain assumptions related to goodwill, intangible assets, long-lived assets, equipment held for sale, estimated income taxes and stock-based compensation. Actual results may differ from these estimates under different assumptions or conditions. (b) Adjustments to Prior Period Effective January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606 – “Revenue from Contracts with Customers” and has identified the transfer of engines and airframes from the lease portfolio to the Spare Parts segment for part out as sales to customers in accordance with the ordinary operations of our Spare Parts reportable segment. As such, the Company presents the sale of these assets on a gross basis and have reclassified the three months ended March 31, 2018 gross revenue and costs on sale to the Spare parts and equipment sales and Cost of spare parts and equipment sales line items from the net gain (loss) presentation within the Gain on sale of leased equipment line item. The reclassification resulted in an increase in Spare parts and equipment sales of $6.7 million , a decrease in Gain on sale of leased equipment of $0.1 million and an increase in Cost of spare parts and equipment sales of $6.6 million with no impact to the Company's net income for the three months ended March 31, 2018 . The Company's Consolidated Statement of Cash Flows for the three months ended March 31, 2018 were adjusted for this matter by increasing cash flows provided by operating activities by $4.9 million and decreasing cash flows provided by investing activities by a similar amount. (c) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, including VIEs, where the Company is the primary beneficiary in accordance with consolidation guidance. The Company evaluates all entities in which it has an economic interest firstly to determine whether for accounting purposes the entity is a variable interest entity or voting interest entity. If the entity is a VIE, the Company consolidates the financial statements of that entity if it is the primary beneficiary of the entities’ activities. If the entity is a voting interest entity, the Company consolidates the entity when it has a majority of voting interests. Intercompany transactions and balances have been eliminated in consolidation. (d) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted by the Company In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) that amends the accounting guidance on leases for both lessees and lessors. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The FASB also subsequently issued amendments to the standard, including providing an additional and optional transition method to adopt the new standard, as well as certain practical expedients related to land easements and lessor accounting. The accounting standard update originally required the use of a modified retrospective approach reflecting the application of the standard to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with the option to elect certain practical expedients. A subsequent amendment to the standard provided an additional and optional transition method that allowed entities to initially apply the new leases standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopted the new leases standard would continue to be in accordance with ASC Topic 840 if the optional transition method is elected. The Company adopted the standard using the optional transition method with no restatement of comparative periods and a cumulative effect adjustment recognized as of the date of adoption. Adoption of the new standard resulted in the recording of ROU assets and lease liabilities of approximately $4.5 million and $4.3 million , respectively, as of January 1, 2019 . The cumulative effect adjustment to retained earnings as of January 1, 2019 was $0.2 million . The standard did not materially impact our consolidated financial statements. As part of the implementation process, the Company assessed its lease arrangements and evaluated practical expedients and accounting policy elections to meet the reporting requirements of this standard. The Company also evaluated the changes in controls and processes that were necessary to implement the new standard, and no material changes were required. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’ which permitted us not to reassess under the new standard the prior conclusions about lease identification, lease classification, and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to WLFC. Under ASC 842, a lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. Furthermore, the Company will assess on an ongoing basis, the updated guidance provided for sale leaseback transactions and whether failed sale leaseback accounting treatment is triggered. As lessor, the Company's leases remained as operating leases under the new standard. In addition, due to the new standard’s narrowed definition of initial direct costs, the Company expenses as incurred, certain lease origination costs that were previously capitalized as initial direct costs and amortized to expense over the lease term. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. As a result, for those leases that qualify, the Company did not recognize ROU assets or lease liabilities, including for existing short-term leases. The Company also elected the practical expedient to not separate lease and non-lease components for the majority of its leases as both lessee and lessor. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The ASU is targeted at simplifying the application of hedge accounting and aims at aligning the recognition and presentation of the effects of hedge instruments and hedge items. This guidance became effective for the Company on January 1, 2019 and it did not result in an adjustment to the opening balance of retained earnings for the Company's existing cash flow hedge. Additionally, the presentation and disclosure aspect of ASU 2017-12 was applied on a prospective basis within Note 6. In June 2018, the FASB issued ASU 2018-07, “ Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting. ” The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The Company adopted this guidance effective January 1, 2019 and it did not materially impact our consolidated financial statements. Recent Accounting Pronouncements To Be Adopted by the Company In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. ASU 2016-13 affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. The effective date will be the first quarter of fiscal year 2020, with early adoption permitted. The Company is evaluating the potential effects on the consolidated financial statements. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases As lessor, as of March 31, 2019 , all of our leases were operating leases with the exception of two leases entered into during the first quarter of 2019 which are classified as notes receivables under the failed sale leaseback guidance provided by ASC 842. The significant majority of leases the Company enters as lessee are for real estate (office and warehouse space for our operations as well as automobiles). These lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company does not have any significant leases that have not yet commenced but that create significant rights and obligations. Leases with terms of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Some of the Company's leases include variable non-lease components (e.g., taxes) which are not separated from associated lease components (e.g. fixed rent, common-area maintenance costs, vehicle protection plans and other service fees) as elected under the practical expedient package provided by ASC 842. The Company's leases have remaining lease terms of one to eight years, some of which include options to renew or extend the lease term from one to five years. Our automobile leases include an option to purchase the vehicle at lease termination. The depreciable life of assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The exercise of lease renewal options or purchase at lease termination is at the Company's sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our ROU assets and lease liabilities. Supplemental balance sheet information related to leases was as follows: Leases Classification March 31, 2019 (in thousands, except lease term and discount rate) Assets Operating lease right-of-use assets Other assets $ 4,309 Total leased assets $ 4,309 Liabilities Operating lease right-of-use liabilities Accounts payable and accrued expenses $ 4,092 Total lease liabilities $ 4,092 Weighted average remaining lease term (years) Operating leases 6 Weighted average discount rate Operating leases 4.5 % Future maturities of the Company's operating lease liabilities at March 31, 2019 are as follows: Year (in thousands) Remaining for year ending December 31, 2019 $ 639 2020 852 2021 752 2022 705 2023 510 Thereafter 1,276 Total lease payments 4,734 Less: interest (642 ) Total lease liabilities $ 4,092 The following table represents future minimum lease payments under noncancelable operating leases at December 31, 2018 as presented in the Company’s Annual Report on Form 10-K filed March 14, 2019: Year (in thousands) 2019 $ 1,172 2020 676 2021 638 2022 645 2023 483 Thereafter 1,183 $ 4,797 The components of lease expense for the three months ended March 31, 2019 were as follows: Lease expense Classification (in thousands) Operating lease cost General and administrative $ 381 Net lease cost $ 381 Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows: (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 199 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table disaggregates revenue by major source for the three months ended March 31, 2019 and 2018 (in thousands): Three months ended March 31, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue (2) $ 75,358 $ — $ — $ 75,358 Spare parts and equipment sales 2,485 15,017 — 17,502 Gain on sale of leased equipment 9,570 — — 9,570 Managed services 1,339 — — 1,339 Other revenue — 94 (94 ) — Total revenue $ 88,752 $ 15,111 $ (94 ) $ 103,769 Three months ended March 31, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue (2) $ 56,014 $ — $ — $ 56,014 Spare parts and equipment sales — 12,986 — 12,986 Gain on sale of leased equipment 545 — — 545 Managed services 921 — — 921 Other revenue — 1,113 (1,082 ) 31 Total revenue $ 57,480 $ 14,099 $ (1,082 ) $ 70,497 _____________________________ (1) Represents revenue generated between our reportable segments. (2) Leasing revenue is recognized under the lease accounting guidance, and therefore qualifies for the scope exception under ASC 606. Total Leasing revenue includes $1.6 million and $0.9 million for the three months ended March 31, 2019 and 2018 , respectively, that is presented in the Other revenue line item on the Consolidated Statements of Income. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments 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 March 31, 2019 , WMES owned a lease portfolio of 33 engines and six aircraft with a net book value of $318.4 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 March 31, 2019 , CASC Willis owned a lease portfolio of four engines with a net book value of $52.7 million . Three Months Ended March 31, 2019 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 747 199 946 Investment 5,013 — 5,013 Foreign currency translation adjustment — 353 353 Investment in joint ventures as of March 31, 2019 $ 39,943 $ 14,310 $ 54,253 “Other revenue” on the Condensed Consolidated Statements of Income includes management fees earned of $0.6 million and $0.7 million during the three months ended March 31, 2019 and 2018 , respectively. These fees related to the servicing of engines for the WMES lease portfolio. During the three months ended March 31, 2019 , the Company sold five aircraft to WMES for $75.5 million . During the three months ended March 31, 2018 , the Company sold one aircraft and one engine to WMES for $21.4 million . Summarized financial information for 100% of WMES is presented in the following tables: Three Months Ended March 31 2019 2018 (in thousands) Revenue $ 9,543 $ 7,606 Expenses 8,205 6,904 WMES income before income taxes $ 1,338 $ 702 March 31, December 31, (in thousands) Total assets $ 325,763 $ 274,744 Total liabilities 238,318 198,534 Total WMES net equity $ 87,445 $ 76,210 |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consisted of the following: March 31, December 31, (in thousands) Credit facility at a floating rate of interest of one-month LIBOR plus 1.5% at March 31, 2019, secured by engines. The facility has a committed amount of $890.0 million at March 31, 2019, which revolves until the maturity date of April 2021 $ 392,000 $ 427,000 WEST IV Series A 2018 term notes payable at a fixed rate of interest of 4.75%, maturing in September 2043, secured by engines 319,390 323,075 WEST IV Series B 2018 term notes payable at a fixed rate of interest of 5.44%, maturing in September 2043, secured by engines 45,627 46,154 WEST III Series A 2017 term notes payable at a fixed rate of interest of 4.69%, maturing in August 2042, secured by engines 270,901 274,205 WEST III Series B 2017 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines 38,740 39,212 WEST II Series A 2012 term notes payable at a fixed rate of interest of 5.50%, maturing in September 2037, secured by engines 232,409 237,847 Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at March 31, 2019, maturing in July 2022, secured by engines 8,120 — Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft 10,483 10,937 1,317,670 1,358,430 Less: unamortized debt issuance costs (19,834 ) (21,081 ) Total debt obligations $ 1,297,836 $ 1,337,349 Principal outstanding at March 31, 2019 , is repayable as follows: Year (in thousands) 2019 $ 42,333 2020 56,128 2021 (includes $392.0 million outstanding on revolving credit facility) 448,418 2022 (includes $163.1 million outstanding on WEST II Series A 2012 term notes) 212,671 2023 34,008 Thereafter 524,112 Total $ 1,317,670 The Company maintains a revolving credit facility to finance the acquisition of commercial aircraft and aircraft engines and related aircraft equipment for lease as well as for general working capital purposes. The $890 million revolving credit facility has an accordion feature which would expand the entire credit facility up to $1 billion . The interest rate is adjusted quarterly, based on the Company’s leverage ratio, as calculated under the terms of the revolving credit facility. On February 28, 2019, the Company closed on a loan with a maturity date of July 2022 totaling $8.1 million . Interest is payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% and principal and interest are paid quarterly. The loan is secured by two engines. Virtually all of the above debt requires ongoing compliance with the covenants of each financing, including debt/equity ratios, minimum tangible net worth and minimum interest coverage ratios, and other eligibility criteria including customer and geographic concentration restrictions. The Company also has certain negative financial covenants such as liens, advances, change in business, sales of assets, dividends and stock repurchases. These covenants are tested either monthly or quarterly and the Company was in full compliance with all financial covenant requirements at March 31, 2019 . |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company periodically holds interest rate derivative instruments to mitigate exposure to changes in interest rates, in particular one-month LIBOR, with $392.0 million and $427.0 million of such borrowings at March 31, 2019 and December 31, 2018 , respectively, tied to this rate. As a matter of policy, management does not use derivatives for speculative purposes. During 2016, the Company entered into one interest rate swap agreement which has a notional outstanding amount of $100.0 million , with a remaining term of 25 months as of March 31, 2019 . The derivatives were designated in a cash flow hedging relationship. The Company evaluated the effectiveness of the swap to hedge its interest rate risk associated with its variable rate debt and concluded at the swap inception date that the swap was highly effective in hedging that risk. The Company will evaluate the effectiveness of the hedging relationship on an ongoing basis. The fair value of the swap at March 31, 2019 and December 31, 2018 was $1.0 million and $1.7 million , respectively, representing a net asset. The Company recorded a $(0.2) million and $24.0 thousand adjustment to interest expense during the three months ended March 31, 2019 and 2018 , respectively, from derivative instruments. The Company estimates the fair value of derivative instruments using a discounted cash flow technique and has used creditworthiness inputs that corroborate observable market data evaluating the Company’s and counterparty’s risk of non-performance. Valuation of the derivative instruments requires certain assumptions for underlying variables and the use of different assumptions would result in a different valuation. Management believes it has applied assumptions consistently during the period. The Company applies hedge accounting and accounts for the change in fair value of its cash flow hedges through other comprehensive income for all derivative instruments. Effect of Derivative Instruments on Earnings in the Statements of Income and on Comprehensive Income The following tables provide additional information about the financial statement effects related to the cash flow hedges for the three months ended March 31, 2019 and 2018 : Derivatives in Cash Flow Hedging Relationships Amount of Loss (Gain) Recognized in OCI on Derivatives (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Recognized from Accumulated OCI into Income (Effective Portion) Three Months Ended March 31, Three Months Ended March 31, 2019 2018 2019 2018 (in thousands) (in thousands) Interest rate contracts $ 613 $ (1,031 ) Interest expense $ 203 $ (24 ) Total $ 613 $ (1,031 ) Total $ 203 $ (24 ) The effective portion of the change in fair value on a derivative instrument designated as a cash flow hedge is reported as a component of other comprehensive income and is reclassified into earnings in the period during which the transaction being hedged affects earnings or it is probable that the forecasted transaction will not occur. The ineffective portion of the hedges, if any, is recorded in earnings in the current period. There was no ineffectiveness in the hedge for the period ended March 31, 2019. Counterparty Credit Risk The Company evaluates the creditworthiness of the counterparties under its hedging agreements. The counterparty for the interest rate swap was a large financial institution in the United States that possessed an investment grade credit rating. Based on this rating, the Company believes that the counterparty was creditworthy and that their continuing performance under the hedging agreement was probable, and did not require the counterparty to provide collateral or other security to the Company. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three months ended March 31, 2019 and 2018 was $7.0 million and $2.5 million , respectively. The effective tax rate for the three months ended March 31, 2019 and 2018 was 25.0% and 26.4% , respectively. The Company records tax expense or benefit for unusual or infrequent items discretely in the period in which they occur. The Company’s tax rate is subject to change based on changes in the mix of assets leased to domestic and foreign lessees, the proportions of revenue generated within and outside of California, the amount of executive compensation exceeding $1.0 million as defined in IRS code 162(m) and numerous other factors, including changes in tax law. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of judgment, and therefore cannot be determined with precision. Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: • Cash and cash equivalents, restricted cash, operating lease related receivables, and accounts payable : The amounts reported in the accompanying Consolidated Balance Sheets approximate fair value due to their short-term nature. • Notes receivables : The carrying amount of the Company’s outstanding balance on its Notes receivables as of March 31, 2019 and December 31, 2018 was estimated to have a fair value of approximately $31.1 million and $0.2 million , respectively, based on the fair value of estimated future payments calculated using interest rates that approximate prevailing market rates at each period end (Level 2 inputs). • Debt obligations : The carrying amount of the Company’s outstanding balance on its Debt obligations as of March 31, 2019 and December 31, 2018 was estimated to have a fair value of approximately $1,333.6 million and $1,348.1 million respectively, based on the fair value of estimated future payments calculated using interest rates that approximate prevailing market rates at each period end (Level 2 inputs). Assets Measured and Recorded at Fair Value on a Recurring Basis As of March 31, 2019 and December 31, 2018 , the Company measured the fair value of its interest rate swap of $100.0 million (notional amount) based on Level 2 inputs, due to the usage of inputs that can be corroborated by observable market data. The Company estimates the fair value of derivative instruments using a discounted cash flow technique and has used creditworthiness inputs that corroborate observable market data evaluating the Company’s and counterparties’ risk of non-performance. The interest rate swap agreement had a net fair value of $1.0 million and $1.7 million as of March 31, 2019 and December 31, 2018 , respectively. For the three months ended March 31, 2019 and 2018 , $(0.2) million and $24.0 thousand was realized through the income statement as an adjustment to Interest expense. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company determines fair value of long-lived assets held and used, such as Equipment held for operating lease and Equipment held for sale, by reference to independent appraisals, quoted market prices (e.g. an offer to purchase) and other factors. An impairment charge is recorded when the carrying value of the asset exceeds its fair value. The Company used Level 2 inputs to measure write-downs of equipment held for lease and equipment held for sale as of March 31, 2019 and December 31, 2018 . Assets Written Down to Fair Value Total Losses March 31, 2019 December 31, 2018 Three Months Ended March 31, Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 2019 2018 (in thousands) (in thousands) Equipment held for lease $ — $ — $ — $ — $ — $ 17,756 $ — $ 17,756 $ 1,105 $ — Equipment held for sale — — — — — 472 — 472 — — Total $ — $ — $ — $ — $ — $ 18,228 $ — $ 18,228 $ 1,105 $ — A write-down of $1.1 million was recorded during the three months ended March 31, 2019 for two engines due to a management decision to part-out the engines, in which the net book values exceeded the estimated proceeds. There were no write-downs recorded during the three months ended March 31, 2018 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income, less preferred stock dividends and accretion of preferred stock issuance costs, by the weighted average number of common shares outstanding for the period. Treasury stock is excluded from the weighted average number of shares of common stock outstanding. Diluted earnings per share attributable to common stockholders is computed based on the weighted average number of shares of common stock and dilutive securities outstanding during the period. Dilutive securities are common stock equivalents that are freely exercisable into common stock at less than market prices or otherwise dilute earnings if converted. The net effect of common stock equivalents is based on the incremental common stock that would be issued upon the vesting of restricted stock using the treasury stock method. Common stock equivalents are not included in diluted earnings per share when their inclusion is antidilutive. Additionally, redeemable preferred stock is not convertible and does not affect dilutive shares. There were no shares that would have had an antidilutive impact to earnings per share for the three months ended March 31, 2019 . The computation of diluted weighted average earnings per share do not include 275 restricted shares for the three months ended March 31, 2018 , as the effect of their inclusion would have been antidilutive to earnings per share. The following table presents the calculation of basic and diluted EPS (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Net income attributable to common shareholders $ 20,056 $ 6,261 Basic weighted average common shares outstanding 5,779 6,104 Potentially dilutive common shares 199 152 Diluted weighted average common shares outstanding 5,978 6,256 Basic weighted average earnings per common share $ 3.47 $ 1.03 Diluted weighted average earnings per common share $ 3.35 $ 1.00 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Common Stock Repurchase In September 2012, the Company announced that its Board of Directors authorized a plan to repurchase up to $100.0 million of its common stock over the next five years. The Board of Directors reaffirmed the repurchase plan in 2016 and extended the plan to December 31, 2018. Effective December 31, 2018, the Board of Directors approved the renewal of the repurchase plan extending the plan through December 31, 2020 and amending the plan to allow for repurchases of up to $60.0 million of the Company's common stock until such date. Repurchased shares are immediately retired. During the three months ended March 31, 2019 , the Company repurchased a total of 7,671 shares of common stock for approximately $0.3 million at a weighted average price of $41.34 per share. At March 31, 2019 , approximately $59.7 million is available to purchase shares under the plan. Redeemable Preferred Stock Dividends: The Company’s Series A-1 Preferred Stock and Series A-2 Preferred Stock accrue quarterly dividends at the rate per annum of 6.5% per share. During the three months ended March 31, 2019 and 2018 , the Company paid total dividends of $0.8 million and $0.9 million , respectively, on the Series A-1 and Series A-2 Preferred Stock. For additional disclosures on the Company’s Redeemable Preferred Stock, refer to Note 11 in the 2018 Form 10-K. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The components of stock-based compensation expense for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 2018 (in thousands) 2007 Stock Incentive Plan $ 1,259 $ 905 Employee Stock Purchase Plan 6 20 Total Stock Compensation Expense $ 1,265 $ 925 The 2007 Stock Incentive Plan (the “2007 Plan”) was adopted on May 24, 2007. Under this 2007 Plan, a total of 2,800,000 shares are authorized for stock based compensation available in the form of either restricted stock awards (“RSA’s”) or stock options. The RSA’s are subject to service-based vesting, typically between one and three years, where a specific period of continued employment must pass before an award vests. The expense associated with these awards is recognized on a straight-line basis over the respective vesting period, with forfeitures accounted for as they occur. For any vesting tranche of an award, the cumulative amount of compensation cost recognized is equal to the portion of the grant‑date fair value of the award tranche that is actually vested at that date. There are no stock options outstanding under the 2007 Plan. The 2018 Stock Incentive Plan (the “2018 Plan”) was adopted on May 24, 2018. Under this 2018 Plan, a total of 800,000 shares are authorized for stock based compensation, plus the number of shares remaining under the 2007 Plan and any future forfeited awards under the 2007 Plan, in the form of RSA’s. The RSA’s are subject to service-based vesting, typically between one and three years, where a specific period of continued employment or service must pass before an award vests. The expense associated with these awards is recognized on a straight-line basis over the respective vesting period, with forfeitures accounted for as they occur. For any vesting tranche of an award, the cumulative amount of compensation cost recognized is equal to the portion of the grant‑date fair value of the award tranche that is actually vested at that date. As of March 31, 2019 , the Company has 890,730 shares available for future issuance. The fair value of the restricted stock awards equaled the stock price at the grant date. As of March 31, 2019 , the Company has not granted RSA’s under the 2018 Plan. The following table summarizes restricted stock activity during the three months ended March 31, 2019 : Shares Restricted stock at December 31, 2018 417,890 Shares granted — Shares forfeited — Shares vested (91,229 ) Restricted stock at March 31, 2019 326,661 Under the Employee Stock Purchase Plan (“ESPP”), as amended and restated effective April 1, 2018, 325,000 shares of common stock have been reserved for issuance. Eligible employees may designate not more than 10% of their cash compensation to be deducted each pay period for the purchase of common stock under the Purchase Plan. Participants may purchase not more than 1,000 shares or $25,000 of common stock in any one calendar year. Each January 31 and July 31 shares of common stock are purchased with the employees’ payroll deductions from the immediately preceding six months at a price per share of 85% of the lesser of the market price of the common stock on the purchase date or the market price of the common stock on the date of entry into an offering period. In the three months ended March 31, 2019 and 2018 , 6,732 and 5,497 shares of common stock, respectively, were issued under the ESPP. The Company issues new shares through its transfer agent upon employee stock purchase. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments The Company has two reportable segments: (i) Leasing and Related Operations which involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses and (ii) Spare Parts Sales which involves the purchase and resale of after-market engine and airframe parts, whole engines, engine modules and portable aircraft components. The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies. The following tables present a summary of the reportable segments (in thousands): Three Months Ended March 31, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 48,369 $ — $ — $ 48,369 Maintenance reserve revenue 25,350 — — 25,350 Spare parts and equipment sales 2,485 15,017 — 17,502 Gain on sale of leased equipment 9,570 — — 9,570 Other revenue 2,978 94 (94 ) 2,978 Total revenue 88,752 15,111 (94 ) 103,769 Expenses: Depreciation and amortization expense 20,236 22 — 20,258 Cost of spare parts and equipment sales 1,836 12,576 — 14,412 Write-down of equipment 1,105 — — 1,105 General and administrative 19,974 1,466 — 21,440 Technical expense 1,787 1 — 1,788 Interest expense 17,879 — — 17,879 Total expenses 62,817 14,065 — 76,882 Earnings from operations $ 25,935 $ 1,046 $ (94 ) $ 26,887 Three months ended March 31, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 39,644 $ — $ — $ 39,644 Maintenance reserve revenue 15,440 — — 15,440 Spare parts and equipment sales (2) — 12,986 — 12,986 Gain on sale of leased equipment (2) 545 — — 545 Other revenue 1,851 1,113 (1,082 ) 1,882 Total revenue 57,480 14,099 (1,082 ) 70,497 Expenses: Depreciation and amortization expense 17,269 86 — 17,355 Cost of spare parts and equipment sales (2) — 11,388 — 11,388 Write-down of equipment — — — — General and administrative 14,495 1,116 — 15,611 Technical expense 3,677 — — 3,677 Interest expense 13,595 — — 13,595 Total expenses 49,036 12,590 — 61,626 Earnings from operations $ 8,444 $ 1,509 $ (1,082 ) $ 8,871 ______________________________ (1) Represents revenue generated between our operating segments. (2) Effective January 1, 2018, the Company adopted ASC 606 – Revenue from Contracts with Customers and has identified the transfer of engines and airframes from the lease portfolio to the Spare Parts segment for part out as sales to customers in accordance with the ordinary operations of our Spare Parts reportable segment. As such, the Company presents the sale of these assets on a gross basis and have reclassified the gross revenue and costs on sale to the Spare parts and equipment sales and Cost of spare parts and equipment sales line items from the net gain (loss) presentation within the Gain on sale of leased equipment line item. Leasing and Related Operations Spare Parts Sales Eliminations Total Total assets as of March 31, 2019 $ 1,851,884 $ 53,618 $ — $ 1,905,502 Total assets as of December 31, 2018 $ 1,882,860 $ 52,083 $ — $ 1,934,943 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In January 2019, the Special Committee of the Board of Directors approved a transaction in which the Company's Chief Executive Officer, Charles F. Willis, purchased a car for $0.1 million from the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. Therefore, they do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the 2018 Form 10-K. In the opinion of management, the Unaudited Condensed Consolidated Financial Statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of income, statements of comprehensive income, statements of redeemable preferred stock and shareholders' equity and statements of cash flows for such interim periods presented. Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. In accordance with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. These estimates and judgments are based on historical experience and other assumptions that management believes are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. The significant estimates made in the accompanying Unaudited Condensed Consolidated Financial Statements include certain assumptions related to goodwill, intangible assets, long-lived assets, equipment held for sale, estimated income taxes and stock-based compensation. Actual results may differ from these estimates under different assumptions or conditions. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, including VIEs, where the Company is the primary beneficiary in accordance with consolidation guidance. The Company evaluates all entities in which it has an economic interest firstly to determine whether for accounting purposes the entity is a variable interest entity or voting interest entity. If the entity is a VIE, the Company consolidates the financial statements of that entity if it is the primary beneficiary of the entities’ activities. If the entity is a voting interest entity, the Company consolidates the entity when it has a majority of voting interests. Intercompany transactions and balances have been eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted by the Company In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) that amends the accounting guidance on leases for both lessees and lessors. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The FASB also subsequently issued amendments to the standard, including providing an additional and optional transition method to adopt the new standard, as well as certain practical expedients related to land easements and lessor accounting. The accounting standard update originally required the use of a modified retrospective approach reflecting the application of the standard to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with the option to elect certain practical expedients. A subsequent amendment to the standard provided an additional and optional transition method that allowed entities to initially apply the new leases standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopted the new leases standard would continue to be in accordance with ASC Topic 840 if the optional transition method is elected. The Company adopted the standard using the optional transition method with no restatement of comparative periods and a cumulative effect adjustment recognized as of the date of adoption. Adoption of the new standard resulted in the recording of ROU assets and lease liabilities of approximately $4.5 million and $4.3 million , respectively, as of January 1, 2019 . The cumulative effect adjustment to retained earnings as of January 1, 2019 was $0.2 million . The standard did not materially impact our consolidated financial statements. As part of the implementation process, the Company assessed its lease arrangements and evaluated practical expedients and accounting policy elections to meet the reporting requirements of this standard. The Company also evaluated the changes in controls and processes that were necessary to implement the new standard, and no material changes were required. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’ which permitted us not to reassess under the new standard the prior conclusions about lease identification, lease classification, and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to WLFC. Under ASC 842, a lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. Furthermore, the Company will assess on an ongoing basis, the updated guidance provided for sale leaseback transactions and whether failed sale leaseback accounting treatment is triggered. As lessor, the Company's leases remained as operating leases under the new standard. In addition, due to the new standard’s narrowed definition of initial direct costs, the Company expenses as incurred, certain lease origination costs that were previously capitalized as initial direct costs and amortized to expense over the lease term. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. As a result, for those leases that qualify, the Company did not recognize ROU assets or lease liabilities, including for existing short-term leases. The Company also elected the practical expedient to not separate lease and non-lease components for the majority of its leases as both lessee and lessor. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The ASU is targeted at simplifying the application of hedge accounting and aims at aligning the recognition and presentation of the effects of hedge instruments and hedge items. This guidance became effective for the Company on January 1, 2019 and it did not result in an adjustment to the opening balance of retained earnings for the Company's existing cash flow hedge. Additionally, the presentation and disclosure aspect of ASU 2017-12 was applied on a prospective basis within Note 6. In June 2018, the FASB issued ASU 2018-07, “ Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting. ” The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The Company adopted this guidance effective January 1, 2019 and it did not materially impact our consolidated financial statements. Recent Accounting Pronouncements To Be Adopted by the Company In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. ASU 2016-13 affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. The effective date will be the first quarter of fiscal year 2020, with early adoption permitted. The Company is evaluating the potential effects on the consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: Leases Classification March 31, 2019 (in thousands, except lease term and discount rate) Assets Operating lease right-of-use assets Other assets $ 4,309 Total leased assets $ 4,309 Liabilities Operating lease right-of-use liabilities Accounts payable and accrued expenses $ 4,092 Total lease liabilities $ 4,092 Weighted average remaining lease term (years) Operating leases 6 Weighted average discount rate Operating leases 4.5 % |
Maturities of Operating Lease Liabilities | Future maturities of the Company's operating lease liabilities at March 31, 2019 are as follows: Year (in thousands) Remaining for year ending December 31, 2019 $ 639 2020 852 2021 752 2022 705 2023 510 Thereafter 1,276 Total lease payments 4,734 Less: interest (642 ) Total lease liabilities $ 4,092 |
Schedule of Future Minimum Lease Payments Under Operating Lease Agreements as of 12.31.2018 | The following table represents future minimum lease payments under noncancelable operating leases at December 31, 2018 as presented in the Company’s Annual Report on Form 10-K filed March 14, 2019: Year (in thousands) 2019 $ 1,172 2020 676 2021 638 2022 645 2023 483 Thereafter 1,183 $ 4,797 |
Components of Lease Expense | The components of lease expense for the three months ended March 31, 2019 were as follows: Lease expense Classification (in thousands) Operating lease cost General and administrative $ 381 Net lease cost $ 381 Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows: (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 199 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue by major source | The following table disaggregates revenue by major source for the three months ended March 31, 2019 and 2018 (in thousands): Three months ended March 31, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue (2) $ 75,358 $ — $ — $ 75,358 Spare parts and equipment sales 2,485 15,017 — 17,502 Gain on sale of leased equipment 9,570 — — 9,570 Managed services 1,339 — — 1,339 Other revenue — 94 (94 ) — Total revenue $ 88,752 $ 15,111 $ (94 ) $ 103,769 Three months ended March 31, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue (2) $ 56,014 $ — $ — $ 56,014 Spare parts and equipment sales — 12,986 — 12,986 Gain on sale of leased equipment 545 — — 545 Managed services 921 — — 921 Other revenue — 1,113 (1,082 ) 31 Total revenue $ 57,480 $ 14,099 $ (1,082 ) $ 70,497 _____________________________ (1) Represents revenue generated between our reportable segments. (2) Leasing revenue is recognized under the lease accounting guidance, and therefore qualifies for the scope exception under ASC 606. Total Leasing revenue includes $1.6 million and $0.9 million for the three months ended March 31, 2019 and 2018 , respectively, that is presented in the Other revenue line item on the Consolidated Statements of Income. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Schedule of investments | Three Months Ended March 31, 2019 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 747 199 946 Investment 5,013 — 5,013 Foreign currency translation adjustment — 353 353 Investment in joint ventures as of March 31, 2019 $ 39,943 $ 14,310 $ 54,253 |
Summarized financial information | Summarized financial information for 100% of WMES is presented in the following tables: Three Months Ended March 31 2019 2018 (in thousands) Revenue $ 9,543 $ 7,606 Expenses 8,205 6,904 WMES income before income taxes $ 1,338 $ 702 March 31, December 31, (in thousands) Total assets $ 325,763 $ 274,744 Total liabilities 238,318 198,534 Total WMES net equity $ 87,445 $ 76,210 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Debt obligations consisted of the following: March 31, December 31, (in thousands) Credit facility at a floating rate of interest of one-month LIBOR plus 1.5% at March 31, 2019, secured by engines. The facility has a committed amount of $890.0 million at March 31, 2019, which revolves until the maturity date of April 2021 $ 392,000 $ 427,000 WEST IV Series A 2018 term notes payable at a fixed rate of interest of 4.75%, maturing in September 2043, secured by engines 319,390 323,075 WEST IV Series B 2018 term notes payable at a fixed rate of interest of 5.44%, maturing in September 2043, secured by engines 45,627 46,154 WEST III Series A 2017 term notes payable at a fixed rate of interest of 4.69%, maturing in August 2042, secured by engines 270,901 274,205 WEST III Series B 2017 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines 38,740 39,212 WEST II Series A 2012 term notes payable at a fixed rate of interest of 5.50%, maturing in September 2037, secured by engines 232,409 237,847 Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at March 31, 2019, maturing in July 2022, secured by engines 8,120 — Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft 10,483 10,937 1,317,670 1,358,430 Less: unamortized debt issuance costs (19,834 ) (21,081 ) Total debt obligations $ 1,297,836 $ 1,337,349 |
Schedule or principal outstanding | Principal outstanding at March 31, 2019 , is repayable as follows: Year (in thousands) 2019 $ 42,333 2020 56,128 2021 (includes $392.0 million outstanding on revolving credit facility) 448,418 2022 (includes $163.1 million outstanding on WEST II Series A 2012 term notes) 212,671 2023 34,008 Thereafter 524,112 Total $ 1,317,670 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of information about financial statement effects related to cash flow hedges | The following tables provide additional information about the financial statement effects related to the cash flow hedges for the three months ended March 31, 2019 and 2018 : Derivatives in Cash Flow Hedging Relationships Amount of Loss (Gain) Recognized in OCI on Derivatives (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Recognized from Accumulated OCI into Income (Effective Portion) Three Months Ended March 31, Three Months Ended March 31, 2019 2018 2019 2018 (in thousands) (in thousands) Interest rate contracts $ 613 $ (1,031 ) Interest expense $ 203 $ (24 ) Total $ 613 $ (1,031 ) Total $ 203 $ (24 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy of assets measured on nonrecurring basis and gain (losses) recorded | Assets Written Down to Fair Value Total Losses March 31, 2019 December 31, 2018 Three Months Ended March 31, Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 2019 2018 (in thousands) (in thousands) Equipment held for lease $ — $ — $ — $ — $ — $ 17,756 $ — $ 17,756 $ 1,105 $ — Equipment held for sale — — — — — 472 — 472 — — Total $ — $ — $ — $ — $ — $ 18,228 $ — $ 18,228 $ 1,105 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted EPS | The following table presents the calculation of basic and diluted EPS (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Net income attributable to common shareholders $ 20,056 $ 6,261 Basic weighted average common shares outstanding 5,779 6,104 Potentially dilutive common shares 199 152 Diluted weighted average common shares outstanding 5,978 6,256 Basic weighted average earnings per common share $ 3.47 $ 1.03 Diluted weighted average earnings per common share $ 3.35 $ 1.00 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Schedule of components of stock compensation expense | The components of stock-based compensation expense for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 2018 (in thousands) 2007 Stock Incentive Plan $ 1,259 $ 905 Employee Stock Purchase Plan 6 20 Total Stock Compensation Expense $ 1,265 $ 925 |
Summary of restricted stock activity | The following table summarizes restricted stock activity during the three months ended March 31, 2019 : Shares Restricted stock at December 31, 2018 417,890 Shares granted — Shares forfeited — Shares vested (91,229 ) Restricted stock at March 31, 2019 326,661 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of the reportable segments | The following tables present a summary of the reportable segments (in thousands): Three Months Ended March 31, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 48,369 $ — $ — $ 48,369 Maintenance reserve revenue 25,350 — — 25,350 Spare parts and equipment sales 2,485 15,017 — 17,502 Gain on sale of leased equipment 9,570 — — 9,570 Other revenue 2,978 94 (94 ) 2,978 Total revenue 88,752 15,111 (94 ) 103,769 Expenses: Depreciation and amortization expense 20,236 22 — 20,258 Cost of spare parts and equipment sales 1,836 12,576 — 14,412 Write-down of equipment 1,105 — — 1,105 General and administrative 19,974 1,466 — 21,440 Technical expense 1,787 1 — 1,788 Interest expense 17,879 — — 17,879 Total expenses 62,817 14,065 — 76,882 Earnings from operations $ 25,935 $ 1,046 $ (94 ) $ 26,887 Three months ended March 31, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 39,644 $ — $ — $ 39,644 Maintenance reserve revenue 15,440 — — 15,440 Spare parts and equipment sales (2) — 12,986 — 12,986 Gain on sale of leased equipment (2) 545 — — 545 Other revenue 1,851 1,113 (1,082 ) 1,882 Total revenue 57,480 14,099 (1,082 ) 70,497 Expenses: Depreciation and amortization expense 17,269 86 — 17,355 Cost of spare parts and equipment sales (2) — 11,388 — 11,388 Write-down of equipment — — — — General and administrative 14,495 1,116 — 15,611 Technical expense 3,677 — — 3,677 Interest expense 13,595 — — 13,595 Total expenses 49,036 12,590 — 61,626 Earnings from operations $ 8,444 $ 1,509 $ (1,082 ) $ 8,871 ______________________________ (1) Represents revenue generated between our operating segments. (2) Effective January 1, 2018, the Company adopted ASC 606 – Revenue from Contracts with Customers and has identified the transfer of engines and airframes from the lease portfolio to the Spare Parts segment for part out as sales to customers in accordance with the ordinary operations of our Spare Parts reportable segment. As such, the Company presents the sale of these assets on a gross basis and have reclassified the gross revenue and costs on sale to the Spare parts and equipment sales and Cost of spare parts and equipment sales line items from the net gain (loss) presentation within the Gain on sale of leased equipment line item. Leasing and Related Operations Spare Parts Sales Eliminations Total Total assets as of March 31, 2019 $ 1,851,884 $ 53,618 $ — $ 1,905,502 Total assets as of December 31, 2018 $ 1,882,860 $ 52,083 $ — $ 1,934,943 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Jan. 01, 2018 |
Accounting Policies [Abstract] | |||
ROU assets | $ 4,309 | $ 4,500 | |
Total lease liabilities | $ 4,092 | 4,300 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings | 233 | $ 0 | |
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings | $ 233 | $ (59) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Prior Period Adjustments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Spare parts and equipment sales | $ 17,502 | $ 12,986 |
Gain (loss) on sale of leased equipment | 9,570 | 545 |
Cost of spare parts and equipment sales | 14,412 | 11,388 |
Cash flows provided by operating activities | 35,628 | 35,281 |
Cash flows provided by financing activities | (42,250) | 91,683 |
Impacts from ASC 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Spare parts and equipment sales | 6,700 | |
Gain (loss) on sale of leased equipment | (100) | |
Cost of spare parts and equipment sales | 6,600 | |
Cash flows provided by operating activities | $ 4,900 | |
Cash flows provided by financing activities | $ (4,500) |
Leases - Additional Information
Leases - Additional Information (Details) | Mar. 31, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Options to renew lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 8 years |
Options to renew lease term | 5 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 4,309 | $ 4,500 |
Operating lease right-of-use liabilities | $ 4,092 | $ 4,300 |
Weighted average remaining lease term (years) | 6 years | |
Weighted average discount rate | 4.50% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 | $ 639 | |
2020 | 852 | |
2021 | 752 | |
2022 | 705 | |
2023 | 510 | |
Thereafter | 1,276 | |
Total lease payments | 4,734 | |
Less: interest | (642) | |
Total lease liabilities | $ 4,092 | $ 4,300 |
Leases Schedule of Future Minim
Leases Schedule of Future Minimum Lease Payments Under Operating Lease Agreements as of 12.31.2018 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 1,172 |
2020 | 676 |
2021 | 638 |
2022 | 645 |
2023 | 483 |
Thereafter | 1,183 |
Total | $ 4,797 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 381 |
Net lease cost | 381 |
Cash paid for amounts included in the measurement of lease liabilities, operating leases | 199 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contracts with Customers | ||
Leasing revenue | $ 75,358 | $ 56,014 |
Maintenance reserve revenue | 25,350 | 15,440 |
Gain on sale of leased equipment | 9,570 | 545 |
Total revenue | 103,769 | 70,497 |
Spare parts and equipment sales | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 17,502 | 12,986 |
Managed services | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 1,339 | 921 |
Other revenue | ||
Revenue from Contracts with Customers | ||
Leasing revenue | 1,600 | 900 |
Maintenance reserve revenue | 0 | 31 |
Operating Segments | Leasing and Related Operations | ||
Revenue from Contracts with Customers | ||
Leasing revenue | 75,358 | 56,014 |
Maintenance reserve revenue | 25,350 | 15,440 |
Gain on sale of leased equipment | 9,570 | 545 |
Total revenue | 88,752 | 57,480 |
Operating Segments | Leasing and Related Operations | Spare parts and equipment sales | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 2,485 | 0 |
Operating Segments | Leasing and Related Operations | Managed services | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 1,339 | 921 |
Operating Segments | Leasing and Related Operations | Other revenue | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 0 | 0 |
Operating Segments | Spare Parts Sales | ||
Revenue from Contracts with Customers | ||
Leasing revenue | 0 | 0 |
Maintenance reserve revenue | 0 | 0 |
Gain on sale of leased equipment | 0 | 0 |
Total revenue | 15,111 | 14,099 |
Operating Segments | Spare Parts Sales | Spare parts and equipment sales | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 15,017 | 12,986 |
Operating Segments | Spare Parts Sales | Managed services | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 0 | 0 |
Operating Segments | Spare Parts Sales | Other revenue | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 94 | 1,113 |
Eliminations | ||
Revenue from Contracts with Customers | ||
Leasing revenue | 0 | 0 |
Maintenance reserve revenue | 0 | 0 |
Gain on sale of leased equipment | 0 | 0 |
Total revenue | (94) | (1,082) |
Eliminations | Spare parts and equipment sales | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 0 | 0 |
Eliminations | Managed services | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 0 | 0 |
Eliminations | Other revenue | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | $ (94) | $ (1,082) |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)engineaircraft. | Mar. 31, 2018USD ($)aircraft. | Dec. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Net book value of equipment held for operating lease | $ 1,605,120 | $ 1,673,135 | |
Investment in joint ventures at beginning of the period | 47,941 | ||
Earnings from joint ventures | 946 | ||
Investment | (5,013) | $ 0 | |
Foreign currency translation adjustment | 353 | ||
Investment in joint ventures at end of the period | 54,253 | ||
Management fees included in other revenue | $ 2,978 | $ 1,882 | |
WMES | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 50.00% | ||
Number of engines in lease portfolio | engine | 33 | ||
Number of aircraft in lease portfolio | aircraft. | 6 | ||
Net book value of equipment held for operating lease | $ 318,400 | ||
Investment in joint ventures at beginning of the period | 34,183 | ||
Earnings from joint ventures | 747 | ||
Investment | (5,013) | ||
Foreign currency translation adjustment | 0 | ||
Investment in joint ventures at end of the period | $ 39,943 | ||
Number of aircrafts sold | aircraft. | 5 | 1 | |
Number of engines sold | aircraft. | 1 | ||
Proceeds from sale of engines | $ 75,500 | $ 21,400 | |
WMES | Asset Management | |||
Schedule of Equity Method Investments [Line Items] | |||
Management fees included in other revenue | $ 600 | $ 700 | |
CASC Willis | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 50.00% | ||
Number of engines in lease portfolio | engine | 4 | ||
Net book value of equipment held for operating lease | $ 52,700 | ||
Investment in joint ventures at beginning of the period | 13,758 | ||
Earnings from joint ventures | 199 | ||
Investment | 0 | ||
Foreign currency translation adjustment | 353 | ||
Investment in joint ventures at end of the period | $ 14,310 |
Investments - Summarized Financ
Investments - Summarized Financial Information (Details) - WMES - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 9,543 | $ 7,606 | |
Expenses | 8,205 | 6,904 | |
WMES income before income taxes | 1,338 | $ 702 | |
Statement of Financial Position [Abstract] | |||
Total assets | 325,763 | $ 274,744 | |
Total liabilities | 238,318 | 198,534 | |
Total WMES net equity | $ 87,445 | $ 76,210 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Notes Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | |
Long Term Debt | |||
Gross amount of debt | $ 1,317,670 | $ 1,358,430 | |
Less: unamortized debt issuance costs | (19,834) | (21,081) | |
Total debt obligations | 1,297,836 | 1,337,349 | |
Credit facility at a floating rate of interest of one-month LIBOR plus 1.5% at March 31, 2019, secured by engines. The facility has a committed amount of $890.0 million at March 31, 2019, which revolves until the maturity date of April 2021 | |||
Long Term Debt | |||
Line of credit facility outstanding amount | 392,000 | 427,000 | |
WEST IV Series A 2018 term notes payable at a fixed rate of interest of 4.75%, maturing in September 2043, secured by engines | |||
Long Term Debt | |||
Gross amount of debt | $ 319,390 | 323,075 | |
Fixed rate (as a percent) | 4.75% | ||
WEST IV Series B 2018 term notes payable at a fixed rate of interest of 5.44%, maturing in September 2043, secured by engines | |||
Long Term Debt | |||
Gross amount of debt | $ 45,627 | 46,154 | |
Fixed rate (as a percent) | 5.44% | ||
WEST III Series A 2017 term notes payable at a fixed rate of interest of 4.69%, maturing in August 2042, secured by engines | |||
Long Term Debt | |||
Gross amount of debt | $ 270,901 | 274,205 | |
Fixed rate (as a percent) | 4.69% | ||
WEST III Series B 2017 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines | |||
Long Term Debt | |||
Gross amount of debt | $ 38,740 | 39,212 | |
Fixed rate (as a percent) | 6.36% | ||
WEST II Series A 2012 term notes payable at a fixed rate of interest of 5.50%, maturing in September 2037, secured by engines | |||
Long Term Debt | |||
Gross amount of debt | $ 232,409 | 237,847 | |
Fixed rate (as a percent) | 5.50% | ||
Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at March 31, 2019, maturing in July 2022, secured by engines | |||
Long Term Debt | |||
Gross amount of debt | $ 8,120 | $ 8,100 | 0 |
Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft | |||
Long Term Debt | |||
Gross amount of debt | $ 10,483 | $ 10,937 | |
Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft | Minimum | |||
Long Term Debt | |||
Variable rate spread | 2.60% | ||
Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft | Maximum | |||
Long Term Debt | |||
Variable rate spread | 2.97% | ||
LIBOR | Credit facility at a floating rate of interest of one-month LIBOR plus 1.5% at March 31, 2019, secured by engines. The facility has a committed amount of $890.0 million at March 31, 2019, which revolves until the maturity date of April 2021 | |||
Long Term Debt | |||
Variable rate spread | 1.50% | ||
LIBOR | Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at March 31, 2019, maturing in July 2022, secured by engines | Minimum | |||
Long Term Debt | |||
Variable rate spread | 1.85% | ||
LIBOR | Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at March 31, 2019, maturing in July 2022, secured by engines | Maximum | |||
Long Term Debt | |||
Variable rate spread | 5.25% |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Principal Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 |
Long Term Debt | |||
2019 | $ 42,333 | ||
2020 | 56,128 | ||
2021 (includes $392.0 million outstanding on revolving credit facility) | 448,418 | ||
2022 (includes $163.1 million outstanding on WEST II Series A 2012 term notes) | 212,671 | ||
2023 | 34,008 | ||
Thereafter | 524,112 | ||
Total | 1,317,670 | $ 1,358,430 | |
Revolving Credit Facility | |||
Long Term Debt | |||
2021 (includes $392.0 million outstanding on revolving credit facility) | 392,000 | ||
WEST II Series A 2012 term note | |||
Long Term Debt | |||
2022 (includes $163.1 million outstanding on WEST II Series A 2012 term notes) | 163,100 | ||
Total | 232,409 | 237,847 | |
Note payable | |||
Long Term Debt | |||
Total | $ 8,120 | $ 8,100 | $ 0 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | |
Long Term Debt | |||
Gross amount of debt | $ 1,317,670,000 | $ 1,358,430,000 | |
Note payable | |||
Long Term Debt | |||
Gross amount of debt | 8,120,000 | $ 8,100,000 | $ 0 |
Revolving credit facility | |||
Long Term Debt | |||
Line of credit facility, maximum borrowing capacity | 890,000,000 | ||
Line of credit facility, maximum borrowing capacity under accordion feature | $ 1,000,000,000 | ||
LIBOR | Minimum | Note payable | |||
Long Term Debt | |||
Variable rate spread | 1.85% | ||
LIBOR | Maximum | Note payable | |||
Long Term Debt | |||
Variable rate spread | 5.25% |
Derivative Instruments - Intere
Derivative Instruments - Interest rate swap agreement (Details) - Interest rate contract | 3 Months Ended | ||
Mar. 31, 2019USD ($)agreement | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||
Borrowings at variable interest rates | $ 392,000,000 | $ 427,000,000 | |
Number of interest rate swap agreements | agreement | 1 | ||
Notional amount outstanding | $ 100,000,000 | 100,000,000 | |
Remaining maturity term | 25 months | ||
Net fair value of swap liability | $ 1,000,000 | $ 1,700,000 | |
Gain (loss) recorded to net finance costs | $ 200,000 | $ (24,000) |
Derivative Instruments - Cash f
Derivative Instruments - Cash flow hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Effects of derivative instruments | ||
Amount of Loss (Gain) Recognized in OCI on Derivatives (Effective Portion) | $ (260) | $ 1,616 |
Cash Flow Hedging | ||
Effects of derivative instruments | ||
Amount of Loss (Gain) Recognized in OCI on Derivatives (Effective Portion) | 613 | (1,031) |
Amount of Gain (Loss) Recognized from Accumulated OCI into Income (Effective Portion) | 203 | (24) |
Cash Flow Hedging | Interest rate contract | ||
Effects of derivative instruments | ||
Amount of Loss (Gain) Recognized in OCI on Derivatives (Effective Portion) | 613 | (1,031) |
Cash Flow Hedging | Interest rate contract | Interest expense | ||
Effects of derivative instruments | ||
Amount of Gain (Loss) Recognized from Accumulated OCI into Income (Effective Portion) | $ 203 | $ (24) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 6,955 | $ 2,536 |
Effective tax rate (as a percent) | 25.00% | 26.40% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)engine | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |||
Fair value of notes receivable | $ 31,100,000 | $ 200,000 | |
Fair value of notes payable | 1,333,600,000 | 1,348,100,000 | |
Increase in interest expense | (200,000) | $ 24,000 | |
Increase (decrease) in asset write-down | $ 1,100,000 | $ 0 | |
Number of engines | engine | 2 | ||
Interest rate contract | |||
Derivative [Line Items] | |||
Notional amount outstanding | $ 100,000,000 | 100,000,000 | |
Assets at fair value | $ 1,000,000 | $ 1,700,000 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Assets at fair value and gains (losses) recorded | |||
Equipment held for sale | $ 629 | $ 789 | |
Total losses on equipment held for lease | 1,105 | $ 0 | |
Total losses on equipment held for sale | 0 | 0 | |
Total losses on assets | 1,105 | $ 0 | |
Assets Written Down to Fair Value | |||
Assets at fair value and gains (losses) recorded | |||
Equipment held for lease | 0 | 17,756 | |
Equipment held for sale | 0 | 472 | |
Assets at fair value | 0 | 18,228 | |
Assets Written Down to Fair Value | Level 1 | |||
Assets at fair value and gains (losses) recorded | |||
Equipment held for lease | 0 | ||
Equipment held for sale | 0 | ||
Assets at fair value | 0 | ||
Assets Written Down to Fair Value | Level 2 | |||
Assets at fair value and gains (losses) recorded | |||
Equipment held for lease | 0 | 17,756 | |
Equipment held for sale | 0 | 472 | |
Assets at fair value | 0 | $ 18,228 | |
Assets Written Down to Fair Value | Level 3 | |||
Assets at fair value and gains (losses) recorded | |||
Equipment held for lease | 0 | ||
Equipment held for sale | 0 | ||
Assets at fair value | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Shares not included in computation of diluted weighted average earnings per common (in shares) | 0 | 275 |
Net income attributable to common shareholders | $ 20,056 | $ 6,261 |
Basic weighted average common shares outstanding (in shares) | 5,779,000 | 6,104,000 |
Potentially dilutive common shares (in shares) | 199,000 | 152,000 |
Diluted weighted average common shares outstanding (in shares) | 5,978,000 | 6,256,000 |
Basic weighted average earnings per common share (in dollars per share) | $ 3.47 | $ 1.03 |
Diluted weighted average earnings per common share (in dollars per share) | $ 3.35 | $ 1 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2012 | Dec. 31, 2018 | |
Common Stock Repurchase | ||||
Repurchase of common stock authorized by Board of Directors | $ 100,000,000 | $ 60,000,000 | ||
Number of years for repurchase of common stock | 5 years | |||
Common stock repurchased, value | $ 317,000 | $ 10,183,000 | ||
Weighted average price per share (in dollars per share) | $ 41.34 | |||
Remaining authorized stock repurchase amount | $ 59,700,000 | |||
Dividend rate (as a percent) | 6.50% | |||
Preferred stock dividends paid | $ 800,000 | $ 900,000 | ||
Common Stock | ||||
Common Stock Repurchase | ||||
Common stock repurchased (in shares) | 7,671 | 297,000 | ||
Common stock repurchased, value | $ 2,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Details) - USD ($) | May 24, 2007 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2018 |
Employee Stock Purchase Plan | ||||
Stock-based compensation plans | ||||
Number of shares authorized | 325,000 | |||
Maximum percentage of cash compensation allowed to be deducted for the purchase of common stock by eligible employees | 10.00% | |||
Maximum number of shares to be purchased by employee in one calendar year (in shares) | 1,000 | |||
Maximum amount of shares to be purchased by employee in one calendar year (in dollars) | $ 25,000 | |||
Purchase price expressed as a percentage of the market price of the common stock on the purchase date or on the date of entry | 85.00% | |||
Shares issued (in shares) | 6,732 | 5,497 | ||
2007 Stock Incentive Plan | Restricted Stock | ||||
Stock-based compensation plans | ||||
Shares granted (in shares) | 0 | |||
Number of shares authorized | 2,800,000 | |||
Stock options outstanding (in shares) | 0 | |||
Number of shares available for future issuance (in shares) | 890,730 | |||
2007 Stock Incentive Plan | Restricted Stock | Minimum | ||||
Stock-based compensation plans | ||||
Vesting period | 1 year | |||
2007 Stock Incentive Plan | Restricted Stock | Maximum | ||||
Stock-based compensation plans | ||||
Vesting period | 3 years | |||
2018 Plan | Restricted Stock | ||||
Stock-based compensation plans | ||||
Shares granted (in shares) | 0 | |||
Number of shares authorized | 800,000 | |||
2018 Plan | Restricted Stock | Minimum | ||||
Stock-based compensation plans | ||||
Vesting period | 1 year | |||
2018 Plan | Restricted Stock | Maximum | ||||
Stock-based compensation plans | ||||
Vesting period | 3 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 1,265 | $ 925 |
2007 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | 1,259 | 905 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 6 | $ 20 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Restricted stock activity (Details) - 2007 Stock Incentive Plan - Restricted Stock | 3 Months Ended |
Mar. 31, 2019shares | |
Number Outstanding | |
Balance at the beginning of the period (in shares) | 417,890 |
Shares granted (in shares) | 0 |
Shares forfeited (in shares) | 0 |
Shares vested (in shares) | (91,229) |
Balance at the end of the period (in shares) | 326,661 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($)segment. | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Reportable Segments | ||||
Number of reportable segments | segment. | 2 | |||
Number of operating segments | segment. | 2 | |||
Revenue: | ||||
Lease rent revenue | $ 48,369 | $ 39,644 | ||
Maintenance reserve revenue | 25,350 | 15,440 | ||
Spare parts and equipment sales | 17,502 | 12,986 | ||
Gain on sale of leased equipment | 9,570 | 545 | ||
Other revenue | 2,978 | 1,882 | ||
Total revenue | 103,769 | 70,497 | ||
Expenses: | ||||
Depreciation and amortization expense | 20,258 | 17,355 | ||
Cost of spare parts and equipment sales | 14,412 | 11,388 | ||
Write-down of equipment | 1,105 | 0 | ||
General and administrative | 21,440 | 15,611 | ||
Technical expense | 1,788 | 3,677 | ||
Interest expense | 17,879 | 13,595 | ||
Total expenses | 76,882 | 61,626 | ||
Earnings from operations | 26,887 | 8,871 | ||
Total assets | [1] | 1,905,502 | $ 1,934,943 | |
Operating Segments | Leasing and Related Operations | ||||
Revenue: | ||||
Lease rent revenue | 48,369 | 39,644 | ||
Maintenance reserve revenue | 25,350 | 15,440 | ||
Spare parts and equipment sales | 2,485 | 0 | ||
Gain on sale of leased equipment | 9,570 | 545 | ||
Other revenue | 2,978 | 1,851 | ||
Total revenue | 88,752 | 57,480 | ||
Expenses: | ||||
Depreciation and amortization expense | 20,236 | 17,269 | ||
Cost of spare parts and equipment sales | 1,836 | 0 | ||
Write-down of equipment | 1,105 | 0 | ||
General and administrative | 19,974 | 14,495 | ||
Technical expense | 1,787 | 3,677 | ||
Interest expense | 17,879 | 13,595 | ||
Total expenses | 62,817 | 49,036 | ||
Earnings from operations | 25,935 | 8,444 | ||
Total assets | 1,851,884 | 1,882,860 | ||
Operating Segments | Spare Parts Sales | ||||
Revenue: | ||||
Lease rent revenue | 0 | 0 | ||
Maintenance reserve revenue | 0 | 0 | ||
Spare parts and equipment sales | 15,017 | 12,986 | ||
Gain on sale of leased equipment | 0 | 0 | ||
Other revenue | 94 | 1,113 | ||
Total revenue | 15,111 | 14,099 | ||
Expenses: | ||||
Depreciation and amortization expense | 22 | 86 | ||
Cost of spare parts and equipment sales | 12,576 | 11,388 | ||
Write-down of equipment | 0 | 0 | ||
General and administrative | 1,466 | 1,116 | ||
Technical expense | 1 | 0 | ||
Interest expense | 0 | 0 | ||
Total expenses | 14,065 | 12,590 | ||
Earnings from operations | 1,046 | 1,509 | ||
Total assets | 53,618 | 52,083 | ||
Eliminations | ||||
Revenue: | ||||
Lease rent revenue | 0 | 0 | ||
Maintenance reserve revenue | 0 | 0 | ||
Spare parts and equipment sales | 0 | 0 | ||
Gain on sale of leased equipment | 0 | 0 | ||
Other revenue | (94) | (1,082) | ||
Total revenue | (94) | (1,082) | ||
Expenses: | ||||
Depreciation and amortization expense | 0 | 0 | ||
Cost of spare parts and equipment sales | 0 | 0 | ||
Write-down of equipment | 0 | 0 | ||
General and administrative | 0 | 0 | ||
Technical expense | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Total expenses | 0 | 0 | ||
Earnings from operations | (94) | $ (1,082) | ||
Total assets | $ 0 | $ 0 | ||
[1] | Total assets at March 31, 2019 and December 31, 2018, respectively, include the following assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the VIEs: Cash $268 and $656; Restricted cash $68,072 and $70,261; Equipment $1,020,182 and $1,032,599; and Other assets $328 and $1,075, respectively. |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2019USD ($) | |
Chief Executive Officer | |
Related Party Transaction [Line Items] | |
Related party transaction amount | $ 0.1 |
Uncategorized Items - wlfc-2019
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 59,000 |