Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-15369 | |
Entity Registrant Name | WILLIS LEASE FINANCE CORP | |
Entity Central Index Key | 0001018164 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 68-0070656 | |
Entity Address, Address Line One | 4700 Lyons Technology Parkway | |
Entity Address, City or Town | Coconut Creek | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33073 | |
City Area Code | 561 | |
Local Phone Number | 349-9989 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | WLFC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,849,479 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and cash equivalents | $ 11,604 | $ 11,688 | |
Restricted cash | 76,448 | 70,261 | |
Equipment held for operating lease, less accumulated depreciation of $380,166 and $385,483 at June 30, 2019 and December 31, 2018, respectively | 1,603,179 | 1,673,135 | |
Maintenance rights | 9,944 | 14,763 | |
Equipment held for sale | 4,079 | 789 | |
Receivables, net of allowances of $2,688 and $2,559 at June 30, 2019 and December 31, 2018, respectively | 46,900 | 23,270 | |
Spare parts inventory | 45,846 | 48,874 | |
Investments | 52,242 | 47,941 | |
Property, equipment & furnishings, less accumulated depreciation of $7,751 and $6,945 at June 30, 2019 and December 31, 2018, respectively | 28,339 | 27,679 | |
Intangible assets, net | 1,342 | 1,379 | |
Notes receivables | 30,599 | 238 | |
Other assets | 20,261 | 14,926 | |
Total assets | [1] | 1,930,783 | 1,934,943 |
Liabilities: | |||
Accounts payable and accrued expenses | 32,964 | 42,939 | |
Deferred income taxes | 101,711 | 90,285 | |
Debt obligations | 1,285,557 | 1,337,349 | |
Maintenance reserves | 113,409 | 94,522 | |
Security deposits | 21,994 | 28,047 | |
Unearned revenue | 5,139 | 5,460 | |
Total liabilities | [2] | 1,560,774 | 1,598,602 |
Redeemable preferred stock ($0.01 par value, 2,500 shares authorized; 2,500 shares issued at June 30, 2019 and December 31, 2018, respectively) | 49,596 | 49,554 | |
Shareholders’ equity: | |||
Common stock ($0.01 par value, 20,000 shares authorized; 6,350 and 6,176 shares issued at June 30, 2019 and December 31, 2018, respectively) | 64 | 62 | |
Paid-in capital in excess of par | 0 | 0 | |
Retained earnings | 321,577 | 286,623 | |
Accumulated other comprehensive (loss) income, net of income tax (benefit) expense of $(307) and $81 at June 30, 2019 and December 31, 2018, respectively | (1,228) | 102 | |
Total shareholders’ equity | 320,413 | 286,787 | |
Total liabilities, redeemable preferred stock and shareholders' equity | $ 1,930,783 | $ 1,934,943 | |
[1] | Total assets at June 30, 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 $271 and $656 ; Restricted cash $76,000 and $70,261 ; Equipment $996,241 and $1,032,599 ; and Other assets $375 and $1,075 , respectively. | ||
[2] | Total liabilities at June 30, 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 $876,392 and $903,296 , respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 11,604 | $ 11,688 |
Restricted cash | 76,448 | 70,261 |
Other assets | 20,261 | 14,926 |
Debt obligations | 1,285,557 | 1,337,349 |
Equipment held for operating lease, accumulated depreciation | 380,166 | 385,483 |
Operating lease related receivable, allowances | 2,688 | 2,559 |
Property, equipment & furnishings, accumulated depreciation | $ 7,751 | $ 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) | 6,350,000 | 6,176,000 |
Accumulated other comprehensive loss, income tax expense | $ (307) | $ 81 |
Variable Interest Entity | ||
Cash and cash equivalents | 271 | 656 |
Restricted cash | 76,000 | 70,261 |
Equipment | 996,241 | 1,032,599 |
Other assets | 375 | 1,075 |
Debt obligations | $ 876,392 | $ 903,296 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUE | ||||
Lease rent revenue | $ 45,025 | $ 43,081 | $ 93,394 | $ 82,726 |
Maintenance reserve revenue | 26,475 | 22,045 | 51,825 | 37,485 |
Spare parts and equipment sales | 14,586 | 11,653 | 32,088 | 24,639 |
Gain on sale of leased equipment | 5,120 | 52 | 14,690 | 597 |
Other revenue | 4,591 | 1,871 | 7,569 | 3,752 |
Total revenue | 95,797 | 78,702 | 199,566 | 149,199 |
EXPENSES | ||||
Depreciation and amortization expense | 20,043 | 18,384 | 40,301 | 35,739 |
Cost of spare parts and equipment sales | 12,585 | 10,305 | 26,997 | 21,692 |
Write-down of equipment | 3,262 | 3,578 | 4,367 | 3,578 |
General and administrative | 21,389 | 16,782 | 42,829 | 32,393 |
Technical expense | 1,407 | 3,232 | 3,195 | 6,909 |
Net finance costs: | ||||
Interest expense | 16,781 | 15,138 | 34,660 | 28,732 |
Loss on debt extinguishment | 220 | 0 | 220 | 0 |
Total net finance costs | 17,001 | 15,138 | 34,880 | 28,732 |
Total expenses | 75,687 | 67,419 | 152,569 | 129,043 |
Earnings from operations | 20,110 | 11,283 | 46,997 | 20,156 |
Earnings from joint ventures | 1,676 | 316 | 2,622 | 1,063 |
Income before income taxes | 21,786 | 11,599 | 49,619 | 21,219 |
Income tax expense | 4,811 | 3,240 | 11,766 | 5,776 |
Net income | 16,975 | 8,359 | 37,853 | 15,443 |
Preferred stock dividends | 810 | 810 | 1,611 | 1,612 |
Accretion of preferred stock issuance costs | 21 | 21 | 42 | 42 |
Net income attributable to common shareholders | $ 16,144 | $ 7,528 | $ 36,200 | $ 13,789 |
Basic weighted average earnings per common share (in dollars per share) | $ 2.75 | $ 1.28 | $ 6.22 | $ 2.30 |
Diluted weighted average earnings per common share (in dollars per share) | $ 2.66 | $ 1.26 | $ 6.01 | $ 2.25 |
Basic weighted average common shares outstanding (in shares) | 5,866 | 5,878 | 5,823 | 5,990 |
Diluted weighted average common shares outstanding (in shares) | 6,061 | 5,991 | 6,020 | 6,123 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 16,975 | $ 8,359 | $ 37,853 | $ 15,443 |
Other comprehensive income: | ||||
Currency translation adjustment | (387) | (817) | (34) | (232) |
Unrealized (loss) gain on derivative instruments | (1,071) | 384 | (1,684) | 1,415 |
Net (loss) gain recognized in other comprehensive income | (1,458) | (433) | (1,718) | 1,183 |
Tax benefit (expense) related to items of other comprehensive income | 329 | 98 | 388 | (267) |
Other comprehensive (loss) income | (1,129) | (335) | (1,330) | 916 |
Total comprehensive income | $ 15,846 | $ 8,024 | $ 36,523 | $ 16,359 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Preferred Stock and Shareholders' Equity - USD ($) | 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 | $ 258,910,000 | $ 49,471,000 | $ 64,000 | $ 2,319,000 | $ 256,301,000 | $ 226,000 |
Net income | 15,443,000 | 15,443,000 | ||||
Net unrealized (loss) gain from currency translation adjustment, net of tax expense | (179,000) | (179,000) | ||||
Net unrealized (loss) gain from derivative instruments, net of tax benefit (expense) | 1,095,000 | 1,095,000 | ||||
Shares repurchased (in shares) | (297,000) | |||||
Shares repurchased | (10,185,000) | $ (3,000) | (2,697,000) | (7,485,000) | ||
Shares issued under stock compensation plans (in shares) | 272,000 | |||||
Shares issued under stock compensation plans | 118,000 | $ 3,000 | 115,000 | |||
Cancellation of restricted stock in satisfaction of withholding tax (in shares) | (29,000) | |||||
Cancellation of restricted stock in satisfaction of withholding tax | (848,000) | $ 0 | (848,000) | |||
Stock-based compensation expense | 2,585,000 | 2,585,000 | ||||
Accretion of preferred shares issuance costs | (42,000) | $ 41,000 | (41,000) | |||
Preferred stock dividends | (1,611,000) | (1,611,000) | ||||
Balances, end of period (in shares) at Jun. 30, 2018 | 2,500,000 | 6,365,000 | ||||
Balances, end of period at Jun. 30, 2018 | 265,287,000 | $ 49,512,000 | $ 64,000 | 1,474,000 | 262,548,000 | 1,201,000 |
Balances, beginning of period (in shares) at Mar. 31, 2018 | 2,500,000 | 6,116,000 | ||||
Balances, beginning of period at Mar. 31, 2018 | 256,618,000 | $ 49,491,000 | $ 61,000 | 0 | 255,020,000 | 1,537,000 |
Net income | 8,359,000 | 8,359,000 | ||||
Net unrealized (loss) gain from currency translation adjustment, net of tax expense | (633,000) | (633,000) | ||||
Net unrealized (loss) gain from derivative instruments, net of tax benefit (expense) | 297,000 | 297,000 | ||||
Shares issued under stock compensation plans (in shares) | 254,000 | |||||
Shares issued under stock compensation plans | 3,000 | $ 3,000 | ||||
Cancellation of restricted stock in satisfaction of withholding tax (in shares) | (5,000) | |||||
Cancellation of restricted stock in satisfaction of withholding tax | (186,000) | (186,000) | ||||
Stock-based compensation expense | 1,660,000 | 1,660,000 | ||||
Accretion of preferred shares issuance costs | (21,000) | $ 21,000 | (21,000) | |||
Preferred stock dividends | (810,000) | (810,000) | ||||
Balances, end of period (in shares) at Jun. 30, 2018 | 2,500,000 | 6,365,000 | ||||
Balances, end of period at Jun. 30, 2018 | 265,287,000 | $ 49,512,000 | $ 64,000 | 1,474,000 | 262,548,000 | 1,201,000 |
Balances, beginning of period (in shares) at Dec. 31, 2018 | 2,500,000 | 6,176,000 | ||||
Balances, beginning of period at Dec. 31, 2018 | 286,787,000 | $ 49,554,000 | $ 62,000 | 0 | 286,623,000 | 102,000 |
Net income | 37,853,000 | 37,853,000 | ||||
Net unrealized (loss) gain from currency translation adjustment, net of tax expense | (26,000) | (26,000) | ||||
Net unrealized (loss) gain from derivative instruments, net of tax benefit (expense) | (1,304,000) | (1,304,000) | ||||
Shares repurchased (in shares) | (72,324) | |||||
Shares repurchased | (3,567,000) | $ (1,000) | (2,087,000) | (1,479,000) | ||
Shares issued under stock compensation plans (in shares) | 283,000 | |||||
Shares issued under stock compensation plans | 163,000 | $ 3,000 | 160,000 | |||
Cancellation of restricted stock in satisfaction of withholding tax (in shares) | (37,000) | |||||
Cancellation of restricted stock in satisfaction of withholding tax | (1,460,000) | (1,460,000) | ||||
Stock-based compensation expense | 3,387,000 | 3,387,000 | ||||
Accretion of preferred shares issuance costs | (42,000) | $ 42,000 | (42,000) | |||
Preferred stock dividends | (1,611,000) | (1,611,000) | ||||
Balances, end of period (in shares) at Jun. 30, 2019 | 2,500,000 | 6,350,000 | ||||
Balances, end of period at Jun. 30, 2019 | 320,413,000 | $ 49,596,000 | $ 64,000 | 0 | 321,577,000 | (1,228,000) |
Balances, beginning of period (in shares) at Mar. 31, 2019 | 2,500,000 | 6,160,000 | ||||
Balances, beginning of period at Mar. 31, 2019 | 307,438,000 | $ 49,575,000 | $ 62,000 | 563,000 | 306,912,000 | (99,000) |
Net income | 16,975,000 | 16,975,000 | ||||
Net unrealized (loss) gain from currency translation adjustment, net of tax expense | (299,000) | (299,000) | ||||
Net unrealized (loss) gain from derivative instruments, net of tax benefit (expense) | (830,000) | (830,000) | ||||
Shares repurchased (in shares) | (65,000) | |||||
Shares repurchased | (3,251,000) | $ (1,000) | (1,771,000) | (1,479,000) | ||
Shares issued under stock compensation plans (in shares) | 277,000 | |||||
Shares issued under stock compensation plans | 3,000 | $ 3,000 | ||||
Cancellation of restricted stock in satisfaction of withholding tax (in shares) | (22,000) | |||||
Cancellation of restricted stock in satisfaction of withholding tax | (914,000) | (914,000) | ||||
Stock-based compensation expense | 2,122,000 | 2,122,000 | ||||
Accretion of preferred shares issuance costs | (21,000) | $ 21,000 | (21,000) | |||
Preferred stock dividends | (810,000) | (810,000) | ||||
Balances, end of period (in shares) at Jun. 30, 2019 | 2,500,000 | 6,350,000 | ||||
Balances, end of period at Jun. 30, 2019 | $ 320,413,000 | $ 49,596,000 | $ 64,000 | $ 0 | $ 321,577,000 | $ (1,228,000) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Redeemable Preferred Stock and Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Net unrealized gain (loss) from currency translation adjustments, tax (expense) benefit | $ 88 | $ 185 | $ 8 | $ 52 |
Net unrealized gain (loss) from derivative instruments, tax (benefit) expense | $ (241) | $ 87 | $ (380) | $ 319 |
Preferred stock dividends (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.64 | $ 0.64 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 37,853 | $ 15,443 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 40,301 | 35,739 |
Write-down of equipment | 4,367 | 3,578 |
Stock-based compensation expenses | 3,387 | 2,585 |
Amortization of deferred costs | 3,420 | 2,349 |
Allowances and provisions | 715 | 572 |
Gain on sale of leased equipment | (14,690) | (597) |
Income from joint ventures | (2,622) | (1,063) |
Loss on debt extinguishment | 220 | 0 |
Loss on disposal of property, equipment and furnishings | 36 | 0 |
Income taxes | 12,101 | 6,220 |
Changes in assets and liabilities: | ||
Receivables | (24,345) | (1,963) |
Distributions received from joint ventures | 3,300 | 0 |
Inventory | 17,658 | 19,148 |
Other assets | (3,206) | (2,832) |
Accounts payable and accrued expenses | (6,307) | (11,747) |
Maintenance reserves | 22,503 | 12,225 |
Security deposits | (2,829) | 1,841 |
Unearned revenue | (321) | 479 |
Net cash provided by operating activities | 91,541 | 81,977 |
Cash flows from investing activities: | ||
Proceeds from sale of equipment (net of selling expenses) | 157,989 | 28,210 |
Issuance of notes receivables | (30,783) | 0 |
Payments received on notes receivables | 421 | 0 |
Capital contributions to joint ventures | (5,013) | 0 |
Purchase of equipment held for operating lease | (145,300) | (243,107) |
Purchase of property, equipment and furnishings | (1,843) | (794) |
Net cash used in investing activities | (24,529) | (215,691) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt obligations | 169,120 | 199,000 |
Debt issuance costs | (2,840) | 0 |
Principal payments on debt obligations | (220,705) | (53,268) |
Proceeds from shares issued under stock compensation plans | 163 | 118 |
Cancellation of restricted stock units in satisfaction of withholding tax | (1,460) | (848) |
Repurchase of common stock | (3,567) | (10,183) |
Preferred stock dividends | (1,620) | (1,611) |
Net cash (used in) provided by financing activities | (60,909) | 133,208 |
Increase/(Decrease) in cash, cash equivalents and restricted cash | 6,103 | (506) |
Cash, cash equivalents and restricted cash at beginning of period | 81,949 | 47,324 |
Cash, cash equivalents and restricted cash at end of period | 88,052 | 46,818 |
Net cash paid for: | ||
Interest | 32,948 | 29,072 |
Income Taxes | 81 | 1,065 |
Supplemental disclosures of non-cash activities: | ||
Transfers from Equipment held for operating lease to Equipment held for sale | 3,450 | 13,479 |
Transfers from Equipment held for operating lease to Spare parts inventory | 14,630 | 0 |
Transfers from Equipment held for sale to Spare parts inventory | 0 | 6,907 |
Accrued preferred stock dividends | $ 677 | $ 784 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 Form 10-K . There have been no significant changes in the Company’s significant accounting policies for the six months ended June 30, 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 606 – “Revenue from Contracts with Customers” (“ASC 606”) and has identified the sale of parts from engines previously transferred from the lease portfolio to the Spare Parts segment as sales to customers of the reporting entity. As such, and as reflected in the 2018 Form 10-K, the Company presents the sale of these assets on a gross basis and has reclassified the three and six months ended June 30, 2018 gross revenue and costs of 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. For the three months ended June 30, 2018 , the reclassification resulted in an increase in Spare parts and equipment sales of $4.6 million , a decrease in Gain on sale of leased equipment of $0.2 million and an increase in Cost of spare parts and equipment sales of $4.4 million with no impact to the Company's net income. For the six months ended June 30, 2018 , the reclassification resulted in an increase in Spare parts and equipment sales of $11.3 million , a decrease in Gain on sale of leased equipment of $0.3 million and an increase in Cost of spare parts and equipment sales of $11.0 million with no impact to the Company's net income. The Company's Consolidated Statement of Cash Flows for the six months ended June 30, 2018 were adjusted as a result of the reclassification by increasing cash flows provided by operating activities by $9.3 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 first evaluates all entities in which it has an economic interest firstly to determine whether for accounting purposes the entity is a VIE 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 such entity's activities. If the entity is a voting interest entity, the Company consolidates the entity when it has a majority of voting interests in such entity. 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 a 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. This ASU 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 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 on January 1, 2019 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 the Company 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 the Company. Under ASC Topic 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 existing 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 expensed as incurred certain lease origination costs that were previously capitalized as initial direct costs and amortized as expenses 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 receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” This ASU clarifies various scoping and other issues arising from ASU 2016-13. This ASU is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this guidance effective January 1, 2020 and is currently evaluating the potential impact adoption will have on the consolidated financial statements and related disclosures. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases As lessor, and as of June 30, 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. As lessee, the significant majority of leases the Company enters 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. As of January 1, 2019, the Company did not have any significant leases that had not yet commenced but that created 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 is 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 June 30, 2019 (in thousands, except lease term and discount rate) Assets Operating lease right-of-use assets Other assets $ 4,626 Total leased assets $ 4,626 Liabilities Operating lease right-of-use liabilities Accounts payable and accrued expenses $ 4,410 Total lease liabilities $ 4,410 Weighted average remaining lease term (years) Operating leases 5.53 Weighted average discount rate Operating leases 4.5 % Future maturities of the Company's operating lease liabilities at June 30, 2019 are as follows: Year (in thousands) Remaining for year ending December 31, 2019 $ 536 2020 1,013 2021 941 2022 768 2023 510 Thereafter 1,277 Total lease payments 5,045 Less: interest (635 ) Total lease liabilities $ 4,410 The following table represents future minimum lease payments under noncancelable operating leases at December 31, 2018 as presented in the Company’s 2018 Form 10-K: 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 and six months ended June 30, 2019 were as follows: Lease expense Classification Three Months Ended Six Months Ended (in thousands) Operating lease cost General and administrative $ 360 $ 741 Net lease cost $ 360 $ 741 Supplemental cash flow information related to leases for the six months ended June 30, 2019 was as follows: (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 500 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 495 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following tables disaggregate revenue by major source for the three and six months ended June 30, 2019 and 2018 (in thousands): Three months ended June 30, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue $ 71,500 $ — $ — $ 71,500 Spare parts and equipment sales 266 14,320 — 14,586 Gain on sale of leased equipment 5,120 — — 5,120 Managed services 1,023 — — 1,023 Other revenue 3,560 31 (23 ) 3,568 Total revenue $ 81,469 $ 14,351 $ (23 ) $ 95,797 Three Months Ended June 30, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue $ 65,126 $ — $ — $ 65,126 Spare parts and equipment sales — 11,653 — 11,653 Gain on sale of leased equipment 52 — — 52 Managed services 1,252 — — 1,252 Other revenue 604 210 (195 ) 619 Total revenue $ 67,034 $ 11,863 $ (195 ) $ 78,702 Six Months Ended June 30, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue $ 145,219 $ — $ — $ 145,219 Spare parts and equipment sales 2,751 29,337 — 32,088 Gain on sale of leased equipment 14,690 — — 14,690 Managed services 2,361 — — 2,361 Other revenue 5,200 125 (117 ) 5,208 Total revenue $ 170,221 $ 29,462 $ (117 ) $ 199,566 Six Months Ended June 30, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue $ 120,211 $ — $ — $ 120,211 Spare parts and equipment sales — 24,639 — 24,639 Gain on sale of leased equipment 597 — — 597 Managed services 2,173 — — 2,173 Other revenue 1,533 1,323 (1,277 ) 1,579 Total revenue $ 124,514 $ 25,962 $ (1,277 ) $ 149,199 _____________________________ (1) Represents revenue generated between our reportable segments. |
Investments
Investments | 6 Months Ended |
Jun. 30, 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 June 30, 2019 , WMES owned a lease portfolio of 33 engines and six aircraft with a net book value of $309.0 million . In 2014, the Company entered into an agreement with China Aviation Supplies Import & Export Corporation (“CASC”) to participate in a joint venture named CASC Willis Engine Lease Company Limited (“CASC Willis”), a joint venture based in Shanghai, China. Each partner holds a fifty percent interest in the joint venture and the Company uses the equity method in recording investment activity. CASC Willis acquires and leases jet engines to Chinese airlines and concentrates on the demand for leased commercial aircraft engines and aviation assets in the People’s Republic of China. As of June 30, 2019 , CASC Willis owned a lease portfolio of four engines with a net book value of $51.9 million . Six Months Ended June 30, 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 2,565 57 2,622 Investment 5,013 — 5,013 Distribution (3,300 ) — (3,300 ) Foreign currency translation adjustment — (34 ) (34 ) Investment in joint ventures as of June 30, 2019 $ 38,461 $ 13,781 $ 52,242 “Other revenue” on the Condensed Consolidated Statements of Income includes management fees earned of $0.6 million and $0.5 million during the three months ended June 30, 2019 and 2018 , respectively, and $1.1 million and $1.2 million during the six months ended June 30, 2019 and 2018 , respectively. These fees related to the servicing of engines for the WMES lease portfolio. During the six months ended June 30, 2019 , the Company sold five aircraft to WMES for $75.5 million . During the six months ended June 30, 2018 , the Company sold one aircraft and one engine to WMES for $21.4 million . There were no aircraft or engine sales to CASC Willis during the six months ended June 30, 2019 and 2018 . Summarized financial information for 100% of WMES is presented in the following tables: Three Months Ended June 30 Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Revenue $ 13,594 $ 9,040 $ 23,137 $ 16,646 Expenses 9,516 7,551 17,721 14,354 WMES income before income taxes $ 4,078 $ 1,489 $ 5,416 $ 2,292 June 30, December 31, (in thousands) Total assets $ 315,173 $ 274,744 Total liabilities 230,759 198,534 Total WMES net equity $ 84,414 $ 76,210 |
Debt Obligations
Debt Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consisted of the following: June 30, December 31, (in thousands) Credit facility at a floating rate of interest of one-month LIBOR plus 1.375% at June 30, 2019, secured by engines. The facility has a committed amount of $1.0 billion at June 30, 2019, which revolves until the maturity date of June 2024 $ 397,000 $ 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 315,706 323,075 WEST IV Series B 2018 term notes payable at a fixed rate of interest of 5.44%, maturing in September 2043, secured by engines 45,101 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 266,206 274,205 WEST III Series B 2017 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines 38,068 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 226,898 237,847 Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at June 30, 2019, maturing in July 2022, secured by engines 7,841 — Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft 10,026 10,937 1,306,846 1,358,430 Less: unamortized debt issuance costs (21,289 ) (21,081 ) Total debt obligations $ 1,285,557 $ 1,337,349 Principal outstanding at June 30, 2019 , is repayable as follows: Year (in thousands) 2019 $ 28,099 2020 56,128 2021 56,418 2022 (includes $173.8 million outstanding on WEST II Series A 2012 term notes) 212,671 2023 34,008 Thereafter 919,522 Total $ 1,306,846 In June 2019, the Company entered into the Fourth Amended and Restated Credit Agreement (“Amended Credit Agreement”) which increased the revolving credit facility from $890.0 million to $1.0 billion . The Amended Credit Agreement incorporates an accordion feature that can expand the credit facility up to $1.3 billion , extends the maturity of the credit facility to June 2024 and provides for certain other amendments to covenants, interest rates and commitment fees. As of June 30, 2019, there was $397.0 million outstanding on the revolving credit facility. Any principal amounts outstanding under the revolving credit facility are due at maturity. Pursuant to the Amended Credit Agreement, all obligations under the revolving credit facility are collateralized by the title and interest of the Company and certain of its subsidiaries, and to substantially all of its assets and properties. In connection with entering into the Amended Credit Agreement in June 2019, the Company incurred and deferred an additional $2.9 million of debt issuance costs, and recognized a loss on debt extinguishment of $0.2 million relating to the Third Amendment. Unamortized debt issuance costs are included as a reduction to “Debt Obligations” in our consolidated balance sheets and are amortized to “Interest expense” on a straight-line basis through the maturity date of the Amended Credit Agreement. In February 2019, the Company entered into a new $8.1 million loan with a financial institution with a maturity date of July 2022. 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. Subsequent to June 30, 2019, and effective July 15, 2019, the Company’s note payable secured by a corporate aircraft was repriced at a fixed interest rate of 3.18% . The outstanding balance of the loan was $10.0 million at June 30, 2019 and will continue to mature in July 2024. Virtually all of the above debt requires ongoing compliance with certain financial covenants, 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 is required to comply with certain negative financial covenants such as prohibitions on 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 June 30, 2019 . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 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, to predominantly one-month LIBOR, with $397.0 million and $427.0 million of such borrowings at June 30, 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 22 months as of June 30, 2019 . The derivative was 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 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. The net fair value of the interest rate swap was a $22 thousand net liability and a $1.7 million net asset as of June 30, 2019 and December 31, 2018 , respectively. The Company recorded a $(0.2) million and $(0.4) million adjustment to interest expense during the three and six months ended June 30, 2019 , respectively, and a $(0.1) million and $(0.1) million adjustment to interest expense during the three and six months ended June 30, 2018 , respectively, from 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 and six months ended June 30, 2019 and 2018 : Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized Location of Gain Amount of Gain Recognized Three Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Interest rate contracts $ (1,071 ) $ 384 Interest expense $ 194 $ 94 Total $ (1,071 ) $ 384 Total $ 194 $ 94 Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized Location of Gain Amount of Gain Recognized Six Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Interest rate contracts $ (1,684 ) $ 1,415 Interest expense $ 397 $ 69 Total $ (1,684 ) $ 1,415 Total $ 397 $ 69 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 June 30, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three and six months ended June 30, 2019 was $4.8 million and $11.8 million , respectively. The effective tax rate for the three months and six months ended June 30, 2019 was 22.1% and 23.7% , respectively. Income tax expense for the three and six months ended June 30, 2018 was $3.2 million and $ 5.8 million , respectively. The effective tax rate for the three and six months ended June 30, 2018 was 27.9% and 27.2% , 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2019 and December 31, 2018 was estimated to have a fair value of approximately $30.9 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 June 30, 2019 and December 31, 2018 was estimated to have a fair value of approximately $1,265.0 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 June 30, 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 had a net fair value representing a $22 thousand net liability and a net asset of $1.7 million , as of June 30, 2019 and December 31, 2018 , respectively. For the six months ended June 30, 2019 and 2018 , $(0.4) million and $(0.1) million 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 June 30, 2019 and December 31, 2018 . Assets Written Down to Fair Value Total Losses June 30, 2019 December 31, 2018 Six Months Ended June 30, 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 $ 4,367 $ 3,400 Equipment held for sale — 3,450 — 3,450 — 472 — 472 — 178 Total $ — $ 3,450 $ — $ 3,450 $ — $ 18,228 $ — $ 18,228 $ 4,367 $ 3,578 A write-down of $4.4 million was recorded during the six months ended June 30, 2019 for four engines due to a management decision to part-out the engines or sell the engines, in which the net book values exceeded the estimated proceeds. A write-down of $3.6 million was recorded during the six months ended June 30, 2018 for three engines due to a management decision to part-out the engines, in which the net book values exceeded the estimated proceeds. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 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 anti-dilutive shares during the three months ended June 30, 2019 and 2 thousand anti-dilutive shares excluded from the computation of diluted weighted average earnings per common share for the six months ended June 30, 2019 . The computation of diluted weighted average earnings per share does not include 0.3 million and 0.1 million restricted shares for the three and six months ended June 30, 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income attributable to common shareholders $ 16,144 $ 7,528 $ 36,200 $ 13,789 Basic weighted average common shares outstanding 5,866 5,878 5,823 5,990 Potentially dilutive common shares 195 113 197 133 Diluted weighted average common shares outstanding 6,061 5,991 6,020 6,123 Basic weighted average earnings per common share $ 2.75 $ 1.28 $ 6.22 $ 2.30 Diluted weighted average earnings per common share $ 2.66 $ 1.26 $ 6.01 $ 2.25 |
Equity
Equity | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2019 , the Company repurchased a total of 72,324 shares of common stock for approximately $3.6 million at a weighted average price of $49.29 per share. At June 30, 2019 , approximately $56.4 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 six months ended June 30, 2019 and 2018 , the Company paid total dividends of $1.6 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 | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The components of stock-based compensation expense for the three and six months ended June 30, 2019 and 2018 were as follows: Three months ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) 2007 Stock Incentive Plan $ 1,143 $ 1,660 $ 2,402 $ 2,565 2018 Stock Incentive Plan 975 — 975 — Employee Stock Purchase Plan 4 — 10 20 Total Stock Compensation Expense $ 2,122 $ 1,660 $ 3,387 $ 2,585 The 2007 Stock Incentive Plan (the “2007 Plan”) was adopted in May 2007. Under the 2007 Plan, a total of 2,800,000 shares were authorized for stock-based compensation available in the form of either restricted stock awards (“RSAs”) or stock options. The RSAs 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. As of June 30, 2019, no stock options outstanding under the 2007 Plan. The 2018 Stock Incentive Plan (the “2018 Plan”) was adopted in May 2018. Under the 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 RSAs. The RSAs 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 June 30, 2019 , the Company has granted 279,400 RSAs under the 2018 Plan and has 613,996 shares available for future issuance. The fair value of the restricted stock awards equaled the stock price at the grant date. The following table summarizes restricted stock activity during the six months ended June 30, 2019 : Shares Restricted stock at December 31, 2018 417,890 Shares granted 279,400 Shares forfeited (2,666 ) Shares vested (183,624 ) Restricted stock at June 30, 2019 511,000 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 six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 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 June 30, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 45,025 $ — $ — $ 45,025 Maintenance reserve revenue 26,475 — — 26,475 Spare parts and equipment sales 266 14,320 — 14,586 Gain on sale of leased equipment 5,120 — — 5,120 Other revenue 4,583 31 (23 ) 4,591 Total revenue 81,469 14,351 (23 ) 95,797 Expenses: Depreciation and amortization expense 20,023 20 — 20,043 Cost of spare parts and equipment sales 252 12,333 — 12,585 Write-down of equipment 3,262 — — 3,262 General and administrative 19,919 1,470 — 21,389 Technical expense 1,407 — — 1,407 Net finance costs: Interest expense 16,781 — — 16,781 Loss on debt extinguishment 220 — — 220 Total finance costs 17,001 — — 17,001 Total expenses 61,864 13,823 — 75,687 Earnings from operations $ 19,605 $ 528 $ (23 ) $ 20,110 Three Months Ended June 30, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 43,081 $ — $ — $ 43,081 Maintenance reserve revenue 22,045 — — 22,045 Spare parts and equipment sales (2) — 11,653 — 11,653 Gain on sale of leased equipment (2) 52 — — 52 Other revenue 1,856 210 (195 ) 1,871 Total revenue 67,034 11,863 (195 ) 78,702 Expenses: Depreciation and amortization expense 18,297 87 — 18,384 Cost of spare parts and equipment sales (2) — 10,305 — 10,305 Write-down of equipment 3,578 — — 3,578 General and administrative 15,683 1,099 — 16,782 Technical expense 3,232 — — 3,232 Net finance costs: Interest expense 15,138 — — 15,138 Loss on debt extinguishment — — — — Total finance costs 15,138 — — 15,138 Total expenses 55,928 11,491 — 67,419 Earnings from operations $ 11,106 $ 372 $ (195 ) $ 11,283 Six Months Ended June 30, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 93,394 $ — $ — $ 93,394 Maintenance reserve revenue 51,825 — — 51,825 Spare parts and equipment sales 2,751 29,337 — 32,088 Gain on sale of leased equipment 14,690 — — 14,690 Other revenue 7,561 125 (117 ) 7,569 Total revenue 170,221 29,462 (117 ) 199,566 Expenses: Depreciation and amortization expense 40,259 42 — 40,301 Cost of spare parts and equipment sales 2,088 24,909 — 26,997 Write-down of equipment 4,367 — — 4,367 General and administrative 39,893 2,936 — 42,829 Technical expense 3,194 1 — 3,195 Net finance costs: Interest expense 34,660 — — 34,660 Loss on debt extinguishment 220 — — 220 Total finance costs 34,880 — — 34,880 Total expenses 124,681 27,888 — 152,569 Earnings from operations $ 45,540 $ 1,574 $ (117 ) $ 46,997 Six Months Ended June 30, 2018 Leasing and Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 82,726 $ — $ — $ 82,726 Maintenance reserve revenue 37,485 — — 37,485 Spare parts and equipment sales (2) — 24,639 — 24,639 Gain on sale of leased equipment (2) 597 — — 597 Other revenue 3,706 1,323 (1,277 ) 3,752 Total revenue 124,514 25,962 (1,277 ) 149,199 Expenses: Depreciation and amortization expense 35,565 174 — 35,739 Cost of spare parts and equipment sales (2) — 21,692 — 21,692 Write-down of equipment 3,578 — — 3,578 General and administrative 30,178 2,215 — 32,393 Technical expense 6,909 — — 6,909 Net finance costs: Interest expense 28,732 — — 28,732 Loss on debt extinguishment — — — — Total finance costs 28,732 — — 28,732 Total expenses 104,962 24,081 — 129,043 Earnings from operations $ 19,552 $ 1,881 $ (1,277 ) $ 20,156 ______________________________ (1) Represents revenue generated between our operating segments. (2) Effective January 1, 2018, the Company adopted ASC 606 and has identified the sale of parts from engines previously transferred from the lease portfolio to the Spare Parts segment as sales to customers of the reporting entity. As such, the Company presents the sale of these assets on a gross basis and have reclassified the three and six months ended June 30, 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. Leasing and Related Operations Spare Parts Sales Eliminations Total Total assets as of June 30, 2019 $ 1,874,523 $ 56,260 $ — $ 1,930,783 Total assets as of December 31, 2018 $ 1,882,860 $ 52,083 $ — $ 1,934,943 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 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 at its market value of $0.1 million from the Company. During 2019, the Company's Chief Executive Officer, Charles F. Willis, was charged $0.2 million for usage of the Company's marine vessel in the Company's lease portfolio. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 3, 2019, WLFC closed on a sale and leaseback deal of 27 CFM56-5C4 engines and the purchase of five |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 first evaluates all entities in which it has an economic interest firstly to determine whether for accounting purposes the entity is a VIE 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 such entity's activities. If the entity is a voting interest entity, the Company consolidates the entity when it has a majority of voting interests in such entity. 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 a 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. This ASU 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 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 on January 1, 2019 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 the Company 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 the Company. Under ASC Topic 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 existing 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 expensed as incurred certain lease origination costs that were previously capitalized as initial direct costs and amortized as expenses 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 receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” This ASU clarifies various scoping and other issues arising from ASU 2016-13. This ASU is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this guidance effective January 1, 2020 and is currently evaluating the potential impact adoption will have on the consolidated financial statements and related disclosures. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: Leases Classification June 30, 2019 (in thousands, except lease term and discount rate) Assets Operating lease right-of-use assets Other assets $ 4,626 Total leased assets $ 4,626 Liabilities Operating lease right-of-use liabilities Accounts payable and accrued expenses $ 4,410 Total lease liabilities $ 4,410 Weighted average remaining lease term (years) Operating leases 5.53 Weighted average discount rate Operating leases 4.5 % |
Maturities of Operating Lease Liabilities | Future maturities of the Company's operating lease liabilities at June 30, 2019 are as follows: Year (in thousands) Remaining for year ending December 31, 2019 $ 536 2020 1,013 2021 941 2022 768 2023 510 Thereafter 1,277 Total lease payments 5,045 Less: interest (635 ) Total lease liabilities $ 4,410 |
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 2018 Form 10-K: 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 and six months ended June 30, 2019 were as follows: Lease expense Classification Three Months Ended Six Months Ended (in thousands) Operating lease cost General and administrative $ 360 $ 741 Net lease cost $ 360 $ 741 Supplemental cash flow information related to leases for the six months ended June 30, 2019 was as follows: (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 500 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 495 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue by major source | The following tables disaggregate revenue by major source for the three and six months ended June 30, 2019 and 2018 (in thousands): Three months ended June 30, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue $ 71,500 $ — $ — $ 71,500 Spare parts and equipment sales 266 14,320 — 14,586 Gain on sale of leased equipment 5,120 — — 5,120 Managed services 1,023 — — 1,023 Other revenue 3,560 31 (23 ) 3,568 Total revenue $ 81,469 $ 14,351 $ (23 ) $ 95,797 Three Months Ended June 30, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue $ 65,126 $ — $ — $ 65,126 Spare parts and equipment sales — 11,653 — 11,653 Gain on sale of leased equipment 52 — — 52 Managed services 1,252 — — 1,252 Other revenue 604 210 (195 ) 619 Total revenue $ 67,034 $ 11,863 $ (195 ) $ 78,702 Six Months Ended June 30, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue $ 145,219 $ — $ — $ 145,219 Spare parts and equipment sales 2,751 29,337 — 32,088 Gain on sale of leased equipment 14,690 — — 14,690 Managed services 2,361 — — 2,361 Other revenue 5,200 125 (117 ) 5,208 Total revenue $ 170,221 $ 29,462 $ (117 ) $ 199,566 Six Months Ended June 30, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Leasing revenue $ 120,211 $ — $ — $ 120,211 Spare parts and equipment sales — 24,639 — 24,639 Gain on sale of leased equipment 597 — — 597 Managed services 2,173 — — 2,173 Other revenue 1,533 1,323 (1,277 ) 1,579 Total revenue $ 124,514 $ 25,962 $ (1,277 ) $ 149,199 _____________________________ (1) Represents revenue generated between our reportable segments. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Schedule of investments | Six Months Ended June 30, 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 2,565 57 2,622 Investment 5,013 — 5,013 Distribution (3,300 ) — (3,300 ) Foreign currency translation adjustment — (34 ) (34 ) Investment in joint ventures as of June 30, 2019 $ 38,461 $ 13,781 $ 52,242 |
Summarized financial information | Summarized financial information for 100% of WMES is presented in the following tables: Three Months Ended June 30 Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Revenue $ 13,594 $ 9,040 $ 23,137 $ 16,646 Expenses 9,516 7,551 17,721 14,354 WMES income before income taxes $ 4,078 $ 1,489 $ 5,416 $ 2,292 June 30, December 31, (in thousands) Total assets $ 315,173 $ 274,744 Total liabilities 230,759 198,534 Total WMES net equity $ 84,414 $ 76,210 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Debt obligations consisted of the following: June 30, December 31, (in thousands) Credit facility at a floating rate of interest of one-month LIBOR plus 1.375% at June 30, 2019, secured by engines. The facility has a committed amount of $1.0 billion at June 30, 2019, which revolves until the maturity date of June 2024 $ 397,000 $ 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 315,706 323,075 WEST IV Series B 2018 term notes payable at a fixed rate of interest of 5.44%, maturing in September 2043, secured by engines 45,101 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 266,206 274,205 WEST III Series B 2017 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines 38,068 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 226,898 237,847 Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at June 30, 2019, maturing in July 2022, secured by engines 7,841 — Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft 10,026 10,937 1,306,846 1,358,430 Less: unamortized debt issuance costs (21,289 ) (21,081 ) Total debt obligations $ 1,285,557 $ 1,337,349 |
Schedule or principal outstanding | Principal outstanding at June 30, 2019 , is repayable as follows: Year (in thousands) 2019 $ 28,099 2020 56,128 2021 56,418 2022 (includes $173.8 million outstanding on WEST II Series A 2012 term notes) 212,671 2023 34,008 Thereafter 919,522 Total $ 1,306,846 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2019 and 2018 : Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized Location of Gain Amount of Gain Recognized Three Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Interest rate contracts $ (1,071 ) $ 384 Interest expense $ 194 $ 94 Total $ (1,071 ) $ 384 Total $ 194 $ 94 Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized Location of Gain Amount of Gain Recognized Six Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Interest rate contracts $ (1,684 ) $ 1,415 Interest expense $ 397 $ 69 Total $ (1,684 ) $ 1,415 Total $ 397 $ 69 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019 December 31, 2018 Six Months Ended June 30, 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 $ 4,367 $ 3,400 Equipment held for sale — 3,450 — 3,450 — 472 — 472 — 178 Total $ — $ 3,450 $ — $ 3,450 $ — $ 18,228 $ — $ 18,228 $ 4,367 $ 3,578 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income attributable to common shareholders $ 16,144 $ 7,528 $ 36,200 $ 13,789 Basic weighted average common shares outstanding 5,866 5,878 5,823 5,990 Potentially dilutive common shares 195 113 197 133 Diluted weighted average common shares outstanding 6,061 5,991 6,020 6,123 Basic weighted average earnings per common share $ 2.75 $ 1.28 $ 6.22 $ 2.30 Diluted weighted average earnings per common share $ 2.66 $ 1.26 $ 6.01 $ 2.25 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of components of stock compensation expense | The components of stock-based compensation expense for the three and six months ended June 30, 2019 and 2018 were as follows: Three months ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) 2007 Stock Incentive Plan $ 1,143 $ 1,660 $ 2,402 $ 2,565 2018 Stock Incentive Plan 975 — 975 — Employee Stock Purchase Plan 4 — 10 20 Total Stock Compensation Expense $ 2,122 $ 1,660 $ 3,387 $ 2,585 |
Summary of restricted stock activity | The following table summarizes restricted stock activity during the six months ended June 30, 2019 : Shares Restricted stock at December 31, 2018 417,890 Shares granted 279,400 Shares forfeited (2,666 ) Shares vested (183,624 ) Restricted stock at June 30, 2019 511,000 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of the reportable segments | The following tables present a summary of the reportable segments (in thousands): Three Months Ended June 30, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 45,025 $ — $ — $ 45,025 Maintenance reserve revenue 26,475 — — 26,475 Spare parts and equipment sales 266 14,320 — 14,586 Gain on sale of leased equipment 5,120 — — 5,120 Other revenue 4,583 31 (23 ) 4,591 Total revenue 81,469 14,351 (23 ) 95,797 Expenses: Depreciation and amortization expense 20,023 20 — 20,043 Cost of spare parts and equipment sales 252 12,333 — 12,585 Write-down of equipment 3,262 — — 3,262 General and administrative 19,919 1,470 — 21,389 Technical expense 1,407 — — 1,407 Net finance costs: Interest expense 16,781 — — 16,781 Loss on debt extinguishment 220 — — 220 Total finance costs 17,001 — — 17,001 Total expenses 61,864 13,823 — 75,687 Earnings from operations $ 19,605 $ 528 $ (23 ) $ 20,110 Three Months Ended June 30, 2018 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 43,081 $ — $ — $ 43,081 Maintenance reserve revenue 22,045 — — 22,045 Spare parts and equipment sales (2) — 11,653 — 11,653 Gain on sale of leased equipment (2) 52 — — 52 Other revenue 1,856 210 (195 ) 1,871 Total revenue 67,034 11,863 (195 ) 78,702 Expenses: Depreciation and amortization expense 18,297 87 — 18,384 Cost of spare parts and equipment sales (2) — 10,305 — 10,305 Write-down of equipment 3,578 — — 3,578 General and administrative 15,683 1,099 — 16,782 Technical expense 3,232 — — 3,232 Net finance costs: Interest expense 15,138 — — 15,138 Loss on debt extinguishment — — — — Total finance costs 15,138 — — 15,138 Total expenses 55,928 11,491 — 67,419 Earnings from operations $ 11,106 $ 372 $ (195 ) $ 11,283 Six Months Ended June 30, 2019 Leasing and Related Operations Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 93,394 $ — $ — $ 93,394 Maintenance reserve revenue 51,825 — — 51,825 Spare parts and equipment sales 2,751 29,337 — 32,088 Gain on sale of leased equipment 14,690 — — 14,690 Other revenue 7,561 125 (117 ) 7,569 Total revenue 170,221 29,462 (117 ) 199,566 Expenses: Depreciation and amortization expense 40,259 42 — 40,301 Cost of spare parts and equipment sales 2,088 24,909 — 26,997 Write-down of equipment 4,367 — — 4,367 General and administrative 39,893 2,936 — 42,829 Technical expense 3,194 1 — 3,195 Net finance costs: Interest expense 34,660 — — 34,660 Loss on debt extinguishment 220 — — 220 Total finance costs 34,880 — — 34,880 Total expenses 124,681 27,888 — 152,569 Earnings from operations $ 45,540 $ 1,574 $ (117 ) $ 46,997 Six Months Ended June 30, 2018 Leasing and Spare Parts Sales Eliminations (1) Total Revenue: Lease rent revenue $ 82,726 $ — $ — $ 82,726 Maintenance reserve revenue 37,485 — — 37,485 Spare parts and equipment sales (2) — 24,639 — 24,639 Gain on sale of leased equipment (2) 597 — — 597 Other revenue 3,706 1,323 (1,277 ) 3,752 Total revenue 124,514 25,962 (1,277 ) 149,199 Expenses: Depreciation and amortization expense 35,565 174 — 35,739 Cost of spare parts and equipment sales (2) — 21,692 — 21,692 Write-down of equipment 3,578 — — 3,578 General and administrative 30,178 2,215 — 32,393 Technical expense 6,909 — — 6,909 Net finance costs: Interest expense 28,732 — — 28,732 Loss on debt extinguishment — — — — Total finance costs 28,732 — — 28,732 Total expenses 104,962 24,081 — 129,043 Earnings from operations $ 19,552 $ 1,881 $ (1,277 ) $ 20,156 ______________________________ (1) Represents revenue generated between our operating segments. (2) Effective January 1, 2018, the Company adopted ASC 606 and has identified the sale of parts from engines previously transferred from the lease portfolio to the Spare Parts segment as sales to customers of the reporting entity. As such, the Company presents the sale of these assets on a gross basis and have reclassified the three and six months ended June 30, 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. Leasing and Related Operations Spare Parts Sales Eliminations Total Total assets as of June 30, 2019 $ 1,874,523 $ 56,260 $ — $ 1,930,783 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 - Prior Period Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Spare parts and equipment sales | $ 14,586 | $ 11,653 | $ 32,088 | $ 24,639 |
Gain (loss) on sale of leased equipment | 5,120 | 52 | 14,690 | 597 |
Cost of spare parts and equipment sales | $ 12,585 | 10,305 | 26,997 | 21,692 |
Cash flows provided by operating activities | 91,541 | 81,977 | ||
Cash flows provided by financing activities | (60,909) | 133,208 | ||
Impacts from ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Spare parts and equipment sales | 4,600 | 11,300 | ||
Gain (loss) on sale of leased equipment | (200) | (300) | ||
Cost of spare parts and equipment sales | $ 4,400 | 11,000 | ||
Cash flows provided by operating activities | $ 9,300 | |||
Cash flows provided by financing activities | $ (9,300) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Recent Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Jan. 01, 2018 |
Accounting Policies [Abstract] | |||
ROU assets | $ 4,626 | $ 4,500 | |
Total lease liabilities | $ 4,410 | 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) |
Leases - Additional Information
Leases - Additional Information (Details) | Jun. 30, 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 | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 4,626 | $ 4,500 |
Operating lease right-of-use liabilities | $ 4,410 | $ 4,300 |
Weighted average remaining lease term (years) | 5 years 6 months 11 days | |
Weighted average discount rate | 4.50% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Remaining for year ending December 31, 2019 | $ 536 | |
2020 | 1,013 | |
2021 | 941 | |
2022 | 768 | |
2023 | 510 | |
Thereafter | 1,277 | |
Total lease payments | 5,045 | |
Less: interest | (635) | |
Total lease liabilities | $ 4,410 | $ 4,300 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under ASU 840 (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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 360 | $ 741 |
Net lease cost | $ 360 | 741 |
Cash paid for amounts included in the measurement of lease liabilities, operating leases | 500 | |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 495 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contracts with Customers | ||||
Leasing revenue | $ 71,500 | $ 65,126 | $ 145,219 | $ 120,211 |
Maintenance reserve revenue | 26,475 | 22,045 | 51,825 | 37,485 |
Gain on sale of leased equipment | 5,120 | 52 | 14,690 | 597 |
Total revenue | 95,797 | 78,702 | 199,566 | 149,199 |
Spare parts and equipment sales | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 14,586 | 11,653 | 32,088 | 24,639 |
Managed services | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 1,023 | 1,252 | 2,361 | 2,173 |
Other revenue | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 3,568 | 619 | 5,208 | 1,579 |
Operating Segments | Leasing and Related Operations | ||||
Revenue from Contracts with Customers | ||||
Leasing revenue | 71,500 | 65,126 | 145,219 | 120,211 |
Gain on sale of leased equipment | 5,120 | 52 | 14,690 | 597 |
Total revenue | 81,469 | 67,034 | 170,221 | 124,514 |
Operating Segments | Leasing and Related Operations | Spare parts and equipment sales | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 266 | 0 | 2,751 | 0 |
Operating Segments | Leasing and Related Operations | Managed services | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 1,023 | 1,252 | 2,361 | 2,173 |
Operating Segments | Leasing and Related Operations | Other revenue | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 3,560 | 604 | 5,200 | 1,533 |
Operating Segments | Spare Parts Sales | ||||
Revenue from Contracts with Customers | ||||
Leasing revenue | 0 | 0 | 0 | 0 |
Gain on sale of leased equipment | 0 | 0 | 0 | 0 |
Total revenue | 14,351 | 11,863 | 29,462 | 25,962 |
Operating Segments | Spare Parts Sales | Spare parts and equipment sales | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 14,320 | 11,653 | 29,337 | 24,639 |
Operating Segments | Spare Parts Sales | Managed services | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 0 | 0 | 0 | 0 |
Operating Segments | Spare Parts Sales | Other revenue | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 31 | 210 | 125 | 1,323 |
Eliminations | ||||
Revenue from Contracts with Customers | ||||
Leasing revenue | 0 | 0 | 0 | 0 |
Gain on sale of leased equipment | 0 | 0 | 0 | 0 |
Total revenue | (23) | (195) | (117) | (1,277) |
Eliminations | Spare parts and equipment sales | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 0 | 0 | 0 | 0 |
Eliminations | Managed services | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | 0 | 0 | 0 | 0 |
Eliminations | Other revenue | ||||
Revenue from Contracts with Customers | ||||
Maintenance reserve revenue | $ (23) | $ (195) | $ (117) | $ (1,277) |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)engineaircraft. | Jun. 30, 2018USD ($)engineaircraft. | Dec. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Net book value of equipment held for operating lease | $ 1,603,179 | $ 1,603,179 | $ 1,673,135 | ||
Investment in joint ventures at beginning of the period | 47,941 | ||||
Earnings from joint ventures | 2,622 | ||||
Investment | (5,013) | $ 0 | |||
Distributions | (3,300) | 0 | |||
Foreign currency translation adjustment | (34) | ||||
Investment in joint ventures at end of the period | 52,242 | 52,242 | |||
Management fees included in other revenue | $ 4,591 | $ 1,871 | $ 7,569 | $ 3,752 | |
WMES | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 50.00% | 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 | $ 309,000 | $ 309,000 | |||
Investment in joint ventures at beginning of the period | 34,183 | ||||
Earnings from joint ventures | 2,565 | ||||
Investment | (5,013) | ||||
Distributions | (3,300) | ||||
Foreign currency translation adjustment | 0 | ||||
Investment in joint ventures at end of the period | 38,461 | $ 38,461 | |||
Number of aircrafts sold | aircraft. | 5 | 1 | |||
Number of engines sold | engine | 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 | $ 500 | $ 1,100 | $ 1,200 | |
CASC Willis | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 50.00% | 50.00% | |||
Number of engines in lease portfolio | engine | 4 | ||||
Net book value of equipment held for operating lease | $ 51,900 | $ 51,900 | |||
Investment in joint ventures at beginning of the period | 13,758 | ||||
Earnings from joint ventures | 57 | ||||
Investment | 0 | ||||
Distributions | 0 | ||||
Foreign currency translation adjustment | (34) | ||||
Investment in joint ventures at end of the period | $ 13,781 | $ 13,781 |
Investments - Summarized Financ
Investments - Summarized Financial Information (Details) - WMES - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||||
Revenue | $ 13,594 | $ 9,040 | $ 23,137 | $ 16,646 | |
Expenses | 9,516 | 7,551 | 17,721 | 14,354 | |
WMES income before income taxes | 4,078 | $ 1,489 | 5,416 | $ 2,292 | |
Statement of Financial Position [Abstract] | |||||
Total assets | 315,173 | 315,173 | $ 274,744 | ||
Total liabilities | 230,759 | 230,759 | 198,534 | ||
Total WMES net equity | $ 84,414 | $ 84,414 | $ 76,210 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Notes Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | |
Long Term Debt | |||
Gross amount of debt | $ 1,306,846 | $ 1,358,430 | |
Less: unamortized debt issuance costs | (21,289) | (21,081) | |
Total debt obligations | 1,285,557 | 1,337,349 | |
Credit facility at a floating rate of interest of one-month LIBOR plus 1.375% at June 30, 2019, secured by engines. The facility has a committed amount of $1.0 billion at June 30, 2019, which revolves until the maturity date of June 2024 | |||
Long Term Debt | |||
Line of credit facility outstanding amount | 397,000 | 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 | $ 315,706 | 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 | $ 45,101 | 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 | $ 266,206 | 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 | $ 38,068 | 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 | $ 226,898 | 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 June 30, 2019, maturing in July 2022, secured by engines | |||
Long Term Debt | |||
Gross amount of debt | $ 7,841 | $ 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 | $ 10,026 | $ 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 1.375% at June 30, 2019, secured by engines. The facility has a committed amount of $1.0 billion at June 30, 2019, which revolves until the maturity date of June 2024 | |||
Long Term Debt | |||
Variable rate spread | 1.375% | ||
LIBOR | Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at June 30, 2019, maturing in July 2022, secured by engines | Minimum | |||
Long Term Debt | |||
Variable rate spread | 1.85% | ||
LIBOR | Note payable at three-month LIBOR plus a margin ranging from 1.85% to 5.25% at June 30, 2019, maturing in July 2022, secured by engines | Maximum | |||
Long Term Debt | |||
Variable rate spread | 5.25% |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Principal Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Feb. 28, 2019 | Dec. 31, 2018 |
Long Term Debt | |||
2019 | $ 28,099 | ||
2020 | 56,128 | ||
2021 | 56,418 | ||
2022 (includes $173.8 million outstanding on WEST II Series A 2012 term notes) | 212,671 | ||
2023 | 34,008 | ||
Thereafter | 919,522 | ||
Total | 1,306,846 | $ 1,358,430 | |
WEST II Series A 2012 term note | |||
Long Term Debt | |||
2022 (includes $173.8 million outstanding on WEST II Series A 2012 term notes) | 173,800 | ||
Total | 226,898 | 237,847 | |
Note payable | |||
Long Term Debt | |||
Total | $ 7,841 | $ 8,100 | $ 0 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 15, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | |
Long Term Debt | ||||||||
Loss on debt extinguishment | $ 220,000 | $ 0 | $ 220,000 | $ 0 | ||||
Gross amount of debt | 1,306,846,000 | 1,306,846,000 | $ 1,358,430,000 | |||||
Revolving credit facility | ||||||||
Long Term Debt | ||||||||
Debt issuance costs, line of credit | 2,900,000 | 2,900,000 | ||||||
Loss on debt extinguishment | 200,000 | |||||||
Note payable | ||||||||
Long Term Debt | ||||||||
Gross amount of debt | 7,841,000 | 7,841,000 | $ 8,100,000 | 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 | 10,026,000 | 10,026,000 | $ 10,937,000 | |||||
Revolving Credit Facility | ||||||||
Long Term Debt | ||||||||
Line of credit facility, maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | $ 890,000,000 | |||||
Line of credit facility, maximum borrowing capacity under accordion feature | $ 1,300,000,000 | $ 1,300,000,000 | ||||||
Minimum | Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft | ||||||||
Long Term Debt | ||||||||
Variable rate spread | 2.60% | |||||||
Maximum | Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft | ||||||||
Long Term Debt | ||||||||
Variable rate spread | 2.97% | |||||||
LIBOR | Minimum | Note payable | ||||||||
Long Term Debt | ||||||||
Variable rate spread | 1.85% | |||||||
LIBOR | Maximum | Note payable | ||||||||
Long Term Debt | ||||||||
Variable rate spread | 5.25% | |||||||
Subsequent Event | Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft | ||||||||
Long Term Debt | ||||||||
Fixed rate (as a percent) | 3.18% |
Derivative Instruments - Intere
Derivative Instruments - Interest rate swap agreement (Details) - Interest rate contract $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)agreement | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)agreement | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||||
Borrowings at variable interest rates | $ 397,000 | $ 397,000 | $ 427,000 | ||
Number of interest rate swap agreements | agreement | 1 | 1 | |||
Notional amount outstanding | $ 100,000 | $ 100,000 | 100,000 | ||
Notional amount, liability | (22) | $ (22) | |||
Remaining maturity term | 22 months | ||||
Net fair value of swap liability | 22 | $ 22 | |||
Net fair value of swap asset | $ 1,700 | ||||
Gain (loss) recorded to net finance costs | $ 200 | $ 100 | $ 400 | $ 100 |
Derivative Instruments - Cash f
Derivative Instruments - Cash flow hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Effects of derivative instruments | ||||
Amount of (Loss) Gain Recognized in OCI on Derivatives (Effective Portion) | $ (1,458) | $ (433) | $ (1,718) | $ 1,183 |
Cash Flow Hedging | ||||
Effects of derivative instruments | ||||
Amount of (Loss) Gain Recognized in OCI on Derivatives (Effective Portion) | (1,071) | 384 | (1,684) | 1,415 |
Amount of Gain Recognized from Accumulated OCI into Income (Effective Portion) | 194 | 94 | 397 | 69 |
Cash Flow Hedging | Interest rate contract | ||||
Effects of derivative instruments | ||||
Amount of (Loss) Gain Recognized in OCI on Derivatives (Effective Portion) | (1,071) | 384 | (1,684) | 1,415 |
Cash Flow Hedging | Interest rate contract | Interest expense | ||||
Effects of derivative instruments | ||||
Amount of Gain Recognized from Accumulated OCI into Income (Effective Portion) | $ 194 | $ 94 | $ 397 | $ 69 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 4,811 | $ 3,240 | $ 11,766 | $ 5,776 |
Effective tax rate (as a percent) | 22.10% | 27.90% | 23.70% | 27.20% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)engine | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |||
Fair value of notes receivable | $ 30,900,000 | $ 200,000 | |
Fair value of notes payable | 1,265,000,000 | 1,348,100,000 | |
Derivative [Line Items] | |||
Increase in interest expense | (400,000) | $ (100,000) | |
Increase (decrease) in asset write-down | $ 4,400,000 | $ 3,600,000 | |
Number of engines | engine | 4 | ||
Number of assets impaired | engine | 3 | ||
Interest rate contract | |||
Derivative [Line Items] | |||
Notional amount outstanding | $ 100,000,000 | 100,000,000 | |
Notional amount, liability | $ 22,000 | ||
Assets at fair value | $ 1,700,000 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Assets at fair value and gains (losses) recorded | |||
Equipment held for sale | $ 4,079 | $ 789 | |
Total losses on equipment held for lease | 4,367 | $ 3,400 | |
Total losses on equipment held for sale | 0 | 178 | |
Total losses on assets | 4,367 | $ 3,578 | |
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 | 3,450 | 472 | |
Assets at fair value | 3,450 | 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 | 3,450 | 472 | |
Assets at fair value | 3,450 | $ 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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Shares not included in computation of diluted weighted average earnings per common (in shares) | 0 | 300,000 | 2,000 | 100,000 |
Net income attributable to common shareholders | $ 16,144 | $ 7,528 | $ 36,200 | $ 13,789 |
Basic weighted average common shares outstanding (in shares) | 5,866,000 | 5,878,000 | 5,823,000 | 5,990,000 |
Potentially dilutive common shares (in shares) | 195,000 | 113,000 | 197,000 | 133,000 |
Diluted weighted average common shares outstanding (in shares) | 6,061,000 | 5,991,000 | 6,020,000 | 6,123,000 |
Basic weighted average earnings per common share (in dollars per share) | $ 2.75 | $ 1.28 | $ 6.22 | $ 2.30 |
Diluted weighted average earnings per common share (in dollars per share) | $ 2.66 | $ 1.26 | $ 6.01 | $ 2.25 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2012 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | 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 | $ 3,251,000 | $ 3,567,000 | $ 10,185,000 | ||
Weighted average price per share (in dollars per share) | $ 49.29 | ||||
Remaining authorized stock repurchase amount | $ 56,400,000 | $ 56,400,000 | |||
Dividend rate (as a percent) | 6.50% | ||||
Preferred stock dividends paid | $ 1,600,000 | ||||
Common Stock | |||||
Common Stock Repurchase | |||||
Common stock repurchased (in shares) | 65,000 | 72,324 | 297,000 | ||
Common stock repurchased, value | $ 1,000 | $ 1,000 | $ 3,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Details) - USD ($) | May 24, 2007 | Jun. 30, 2019 | Jun. 30, 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) | 279,400 | |||
Number of shares authorized | 2,800,000 | |||
Stock options outstanding (in shares) | 0 | |||
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 Stock Incentive Plan | Restricted Stock | ||||
Stock-based compensation plans | ||||
Number of shares authorized | 800,000 | |||
Awards granted | 279,400 | |||
Number of shares available for future issuance (in shares) | 613,996 | |||
2018 Stock Incentive Plan | Restricted Stock | Minimum | ||||
Stock-based compensation plans | ||||
Vesting period | 1 year | |||
2018 Stock Incentive 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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 2,122 | $ 1,660 | $ 3,387 | $ 2,585 |
2007 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 1,143 | 1,660 | 2,402 | 2,565 |
2018 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 975 | 0 | 975 | 0 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 4 | $ 0 | $ 10 | $ 20 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Restricted stock activity (Details) - 2007 Stock Incentive Plan - Restricted Stock | 6 Months Ended |
Jun. 30, 2019shares | |
Number Outstanding | |
Balance at the beginning of the period (in shares) | 417,890 |
Shares granted (in shares) | 279,400 |
Shares forfeited (in shares) | (2,666) |
Shares vested (in shares) | (183,624) |
Balance at the end of the period (in shares) | 511,000 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment. | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Reportable Segments | ||||||
Number of reportable segments | segment. | 2 | |||||
Number of operating segments | segment. | 2 | |||||
Revenue: | ||||||
Lease rent revenue | $ 71,500 | $ 65,126 | $ 145,219 | $ 120,211 | ||
Maintenance reserve revenue | 26,475 | 22,045 | 51,825 | 37,485 | ||
Gain on sale of leased equipment | 5,120 | 52 | 14,690 | 597 | ||
Total revenue | 95,797 | 78,702 | 199,566 | 149,199 | ||
Expenses: | ||||||
Depreciation and amortization expense | 20,043 | 18,384 | 40,301 | 35,739 | ||
Cost of spare parts and equipment sales | 12,585 | 10,305 | 26,997 | 21,692 | ||
Write-down of equipment | 3,262 | 3,578 | 4,367 | 3,578 | ||
General and administrative | 21,389 | 16,782 | 42,829 | 32,393 | ||
Technical expense | 1,407 | 3,232 | 3,195 | 6,909 | ||
Interest expense | 16,781 | 15,138 | 34,660 | 28,732 | ||
Loss on debt extinguishment | 220 | 0 | 220 | 0 | ||
Total net finance costs | 17,001 | 15,138 | 34,880 | 28,732 | ||
Total expenses | 75,687 | 67,419 | 152,569 | 129,043 | ||
Earnings from operations | 20,110 | 11,283 | 46,997 | 20,156 | ||
Total assets | [1] | 1,930,783 | 1,930,783 | $ 1,934,943 | ||
Operating Segments | Leasing and Related Operations | ||||||
Revenue: | ||||||
Lease rent revenue | 71,500 | 65,126 | 145,219 | 120,211 | ||
Gain on sale of leased equipment | 5,120 | 52 | 14,690 | 597 | ||
Total revenue | 81,469 | 67,034 | 170,221 | 124,514 | ||
Expenses: | ||||||
Depreciation and amortization expense | 20,023 | 18,297 | 40,259 | 35,565 | ||
Cost of spare parts and equipment sales | 252 | 0 | 2,088 | 0 | ||
Write-down of equipment | 3,262 | 3,578 | 4,367 | 3,578 | ||
General and administrative | 19,919 | 15,683 | 39,893 | 30,178 | ||
Technical expense | 1,407 | 3,232 | 3,194 | 6,909 | ||
Interest expense | 16,781 | 15,138 | 34,660 | 28,732 | ||
Loss on debt extinguishment | 220 | 0 | 220 | 0 | ||
Total net finance costs | 17,001 | 15,138 | 34,880 | 28,732 | ||
Total expenses | 61,864 | 55,928 | 124,681 | 104,962 | ||
Earnings from operations | 19,605 | 11,106 | 45,540 | 19,552 | ||
Total assets | 1,874,523 | 1,874,523 | 1,882,860 | |||
Operating Segments | Spare Parts Sales | ||||||
Revenue: | ||||||
Lease rent revenue | 0 | 0 | 0 | 0 | ||
Gain on sale of leased equipment | 0 | 0 | 0 | 0 | ||
Total revenue | 14,351 | 11,863 | 29,462 | 25,962 | ||
Expenses: | ||||||
Depreciation and amortization expense | 20 | 87 | 42 | 174 | ||
Cost of spare parts and equipment sales | 12,333 | 10,305 | 24,909 | 21,692 | ||
Write-down of equipment | 0 | 0 | 0 | 0 | ||
General and administrative | 1,470 | 1,099 | 2,936 | 2,215 | ||
Technical expense | 0 | 0 | 1 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Loss on debt extinguishment | 0 | 0 | 0 | 0 | ||
Total net finance costs | 0 | 0 | 0 | 0 | ||
Total expenses | 13,823 | 11,491 | 27,888 | 24,081 | ||
Earnings from operations | 528 | 372 | 1,574 | 1,881 | ||
Total assets | 56,260 | 56,260 | 52,083 | |||
Eliminations | ||||||
Revenue: | ||||||
Lease rent revenue | 0 | 0 | 0 | 0 | ||
Gain on sale of leased equipment | 0 | 0 | 0 | 0 | ||
Total revenue | (23) | (195) | (117) | (1,277) | ||
Expenses: | ||||||
Depreciation and amortization expense | 0 | 0 | 0 | 0 | ||
Cost of spare parts and equipment sales | 0 | 0 | 0 | 0 | ||
Write-down of equipment | 0 | 0 | 0 | 0 | ||
General and administrative | 0 | 0 | 0 | 0 | ||
Technical expense | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Loss on debt extinguishment | 0 | 0 | 0 | 0 | ||
Total net finance costs | 0 | 0 | 0 | 0 | ||
Total expenses | 0 | 0 | 0 | 0 | ||
Earnings from operations | (23) | (195) | (117) | (1,277) | ||
Total assets | 0 | 0 | $ 0 | |||
Lease rent revenue | ||||||
Revenue: | ||||||
Lease rent revenue | 45,025 | 43,081 | 93,394 | 82,726 | ||
Lease rent revenue | Operating Segments | Leasing and Related Operations | ||||||
Revenue: | ||||||
Lease rent revenue | 45,025 | 43,081 | 93,394 | 82,726 | ||
Lease rent revenue | Operating Segments | Spare Parts Sales | ||||||
Revenue: | ||||||
Lease rent revenue | 0 | 0 | 0 | 0 | ||
Lease rent revenue | Eliminations | ||||||
Revenue: | ||||||
Lease rent revenue | 0 | 0 | 0 | 0 | ||
Maintenance reserve revenue | ||||||
Revenue: | ||||||
Lease rent revenue | 26,475 | 22,045 | 51,825 | 37,485 | ||
Maintenance reserve revenue | Operating Segments | Leasing and Related Operations | ||||||
Revenue: | ||||||
Lease rent revenue | 26,475 | 22,045 | 51,825 | 37,485 | ||
Maintenance reserve revenue | Operating Segments | Spare Parts Sales | ||||||
Revenue: | ||||||
Lease rent revenue | 0 | 0 | 0 | 0 | ||
Maintenance reserve revenue | Eliminations | ||||||
Revenue: | ||||||
Lease rent revenue | 0 | 0 | 0 | 0 | ||
Spare parts and equipment sales | ||||||
Revenue: | ||||||
Maintenance reserve revenue | 14,586 | 11,653 | 32,088 | 24,639 | ||
Spare parts and equipment sales | Operating Segments | Leasing and Related Operations | ||||||
Revenue: | ||||||
Maintenance reserve revenue | 266 | 0 | 2,751 | 0 | ||
Spare parts and equipment sales | Operating Segments | Spare Parts Sales | ||||||
Revenue: | ||||||
Maintenance reserve revenue | 14,320 | 11,653 | 29,337 | 24,639 | ||
Spare parts and equipment sales | Eliminations | ||||||
Revenue: | ||||||
Maintenance reserve revenue | 0 | 0 | 0 | 0 | ||
Other revenue | ||||||
Revenue: | ||||||
Maintenance reserve revenue | 4,591 | 1,871 | 7,569 | 3,752 | ||
Other revenue | Operating Segments | Leasing and Related Operations | ||||||
Revenue: | ||||||
Maintenance reserve revenue | 4,583 | 1,856 | 7,561 | 3,706 | ||
Other revenue | Operating Segments | Spare Parts Sales | ||||||
Revenue: | ||||||
Maintenance reserve revenue | 31 | 210 | 125 | 1,323 | ||
Other revenue | Eliminations | ||||||
Revenue: | ||||||
Maintenance reserve revenue | $ (23) | $ (195) | $ (117) | $ (1,277) | ||
[1] | Total assets at June 30, 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 $271 and $656 ; Restricted cash $76,000 and $70,261 ; Equipment $996,241 and $1,032,599 ; and Other assets $375 and $1,075 , respectively. |
Related Party Transactions (Det
Related Party Transactions (Details) - Chief Executive Officer - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Jan. 31, 2019 | Jun. 30, 2019 | |
Sale of Vehicle | ||
Related Party Transaction [Line Items] | ||
Related party transaction amount | $ 0.1 | |
Use of Marine Vessel | ||
Related Party Transaction [Line Items] | ||
Related party transaction amount | $ 0.2 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jul. 03, 2019engine |
Subsequent Event [Line Items] | |
Sale leaseback transaction, number of engines | 27 |
Number of engines purchased | 5 |
Uncategorized Items - wlfc-6302
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 59,000 |