Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-15369 | |
Entity Registrant Name | WILLIS LEASE FINANCE CORP | |
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, $0.01 par value per share | |
Trading Symbol | WLFC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,220,400 | |
Entity Central Index Key | 0001018164 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and cash equivalents | $ 26,490 | $ 42,540 | |
Restricted cash | 38,274 | 36,385 | |
Equipment held for operating lease, property, equipment, and furnishings, less accumulated depreciation | 31,169 | 31,753 | |
Maintenance rights | 20,097 | 20,097 | |
Equipment held for sale | 2,850 | 2,850 | |
Receivables, net of allowances of $1,091 and $1,372 at March 31, 2021 and December 31, 2020, respectively | 40,483 | 28,269 | |
Spare parts inventory | 57,870 | 59,434 | |
Investments | 56,142 | 53,275 | |
Intangible assets, net | 1,232 | 1,246 | |
Notes receivable | 197,552 | 158,708 | |
Other assets | 49,631 | 43,778 | |
Total assets | [1] | 2,409,674 | 2,364,948 |
Liabilities: | |||
Accounts payable and accrued expenses | 24,391 | 26,977 | |
Deferred income taxes | 118,570 | 116,838 | |
Debt obligations | 1,724,130 | 1,693,753 | |
Maintenance reserves | 88,782 | 82,484 | |
Security deposits | 19,658 | 19,522 | |
Unearned revenue | 11,988 | 11,637 | |
Total liabilities | [2] | 1,987,519 | 1,951,211 |
Redeemable preferred stock ($0.01 par value, 2,500 shares authorized; 2,500 shares issued at March 31, 2021 and December 31, 2020, respectively) | 49,743 | 49,722 | |
Shareholders’ equity: | |||
Common stock ($0.01 par value, 20,000 shares authorized; 6,577 and 6,570 shares issued at March 31, 2021 and December 31, 2020, respectively) | 66 | 66 | |
Paid-in capital in excess of par | 16,580 | 13,696 | |
Retained earnings | 353,216 | 355,370 | |
Accumulated other comprehensive income (loss), net of income tax expense (benefit) of $788 and $(1,428) at March 31, 2021 and December 31, 2020, respectively | 2,550 | (5,117) | |
Total shareholders’ equity | 372,412 | 364,015 | |
Total liabilities, redeemable preferred stock and shareholders' equity | 2,409,674 | 2,364,948 | |
Assets Leased to Others | |||
ASSETS | |||
Equipment held for operating lease, property, equipment, and furnishings, less accumulated depreciation | $ 1,887,884 | $ 1,886,613 | |
[1] | Total assets at March 31, 2021 and December 31, 2020, respectively, include the following assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the VIEs: Restricted cash $33,763 and $35,262; Equipment $1,025,492 and $1,037,684; Maintenance Rights $767 and $767; Inventory $5,437 and $5,437; Notes receivable $26,220 and $26,392; and Other assets $604 and $558, respectively. | ||
[2] | Total liabilities at March 31, 2021 and December 31, 2020, respectively, include the following liabilities of VIEs for which the VIEs’ creditors do not have recourse to Willis Lease Finance Corporation: Debt obligations $898,398 and $907,550, respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accumulated depreciation | $ 11,629 | $ 11,356 |
Receivables, allowances | $ 1,091 | $ 1,372 |
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) | 6,577,000 | 6,570,000 |
Accumulated other comprehensive loss, income tax benefit | $ 788 | $ (1,428) |
Restricted cash | 38,274 | 36,385 |
Maintenance rights | 20,097 | 20,097 |
Spare parts inventory | 57,870 | 59,434 |
Notes receivable | 197,552 | 158,708 |
Other assets | 49,631 | 43,778 |
Debt obligations | 1,724,130 | 1,693,753 |
Variable Interest Entity | ||
Restricted cash | 33,763 | 35,262 |
Equipment | 1,025,492 | 1,037,684 |
Maintenance rights | 767 | 767 |
Spare parts inventory | 5,437 | 5,437 |
Notes receivable | 26,220 | 26,392 |
Other assets | 604 | 558 |
Debt obligations | 898,398 | 907,550 |
Assets Leased to Others | ||
Accumulated depreciation | $ 477,584 | $ 454,123 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUE | ||
Lease rent revenue | $ 46,395 | |
Gain on sale of leased equipment | $ 0 | 2,067 |
Total revenue | 61,125 | 81,609 |
EXPENSES | ||
Depreciation and amortization expense | 24,141 | 23,390 |
Cost of spare parts and equipment sales | 3,809 | 6,688 |
Write-down of equipment | 1,867 | 2,129 |
General and administrative | 16,151 | 19,567 |
Technical expense | 1,310 | 1,127 |
Net finance costs: | ||
Interest expense | 15,019 | 15,696 |
Loss on debt extinguishment | 0 | 4,688 |
Total net finance costs | 15,019 | 20,384 |
Total expenses | 62,297 | 73,285 |
(Loss) earnings from operations | (1,172) | 8,324 |
(Loss) earnings from joint ventures | (519) | 207 |
(Loss) income before income taxes | (1,691) | 8,531 |
Income tax (benefit) expense | (359) | 4,245 |
Net (loss) income | (1,332) | 4,286 |
Preferred stock dividends | 801 | 810 |
Accretion of preferred stock issuance costs | 21 | 21 |
Net (loss) income attributable to common shareholders | $ (2,154) | $ 3,455 |
Basic weighted average (loss) earnings per common share (in dollars per share) | $ (0.36) | $ 0.59 |
Diluted weighted average (loss) earnings per common share (in dollars per share) | $ (0.36) | $ 0.56 |
Basic weighted average common shares outstanding (in shares) | 5,995 | 5,860 |
Diluted weighted average common shares outstanding (in shares) | 5,995 | 6,124 |
Lease rent revenue | ||
REVENUE | ||
Lease rent revenue | $ 31,520 | $ 46,395 |
Maintenance reserve revenue | ||
REVENUE | ||
Lease rent revenue | 19,812 | 20,528 |
Spare parts and equipment sales | ||
REVENUE | ||
Maintenance reserve revenue | 4,566 | 9,105 |
Other revenue | ||
REVENUE | ||
Maintenance reserve revenue | $ 5,227 | $ 3,514 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (1,332) | $ 4,286 |
Other comprehensive income (loss): | ||
Currency translation adjustment | 2,832 | (221) |
Unrealized gain (loss) on derivative instruments | 6,497 | (3,318) |
Unrealized gain on derivative instruments at joint venture | 554 | 0 |
Net gain (loss) recognized in other comprehensive income (loss) | 9,883 | (3,539) |
Tax (expense) benefit related to items of other comprehensive income (loss) | (2,216) | 784 |
Other comprehensive income (loss) | 7,667 | (2,755) |
Total comprehensive income | $ 6,335 | $ 1,531 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Preferred Stock and Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Preferred Stock | Common Stock | Paid in Capital in Excess of Par | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balances, beginning of period (in shares) at Dec. 31, 2019 | 2,500 | 6,356 | ||||
Balances, beginning of period at Dec. 31, 2019 | $ 350,338 | $ 49,638 | $ 64 | $ 4,557 | $ 348,965 | $ (3,248) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 4,286 | 4,286 | ||||
Net unrealized gain (loss) from currency translation, net of tax | (171) | (171) | ||||
Net unrealized gain (loss) from derivative instruments, net of tax | (2,584) | (2,584) | ||||
Shares issued under stock compensation plans (in shares) | 4 | |||||
Shares issued under stock compensation plans | 200 | $ 0 | 200 | |||
Cancellation of restricted stock in satisfaction of withholding tax (in shares) | (16) | |||||
Cancellation of restricted stock in satisfaction of withholding tax | (348) | $ (1) | (347) | |||
Stock-based compensation expense, net of forfeitures | 2,117 | 2,117 | ||||
Accretion of preferred shares issuance costs | (21) | $ 21 | (21) | |||
Preferred stock dividends | (810) | (810) | ||||
Balances, end of period (in shares) at Mar. 31, 2020 | 2,500 | 6,344 | ||||
Balances, end of period at Mar. 31, 2020 | 353,007 | $ 49,659 | $ 63 | 6,527 | 352,420 | (6,003) |
Balances, beginning of period (in shares) at Dec. 31, 2020 | 2,500 | 6,570 | ||||
Balances, beginning of period at Dec. 31, 2020 | 364,015 | $ 49,722 | $ 66 | 13,696 | 355,370 | (5,117) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (1,332) | (1,332) | ||||
Net unrealized gain (loss) from currency translation, net of tax | 2,197 | 2,197 | ||||
Net unrealized gain (loss) from derivative instruments, net of tax | 5,470 | 5,470 | ||||
Shares issued under stock compensation plans (in shares) | 8 | |||||
Shares issued under stock compensation plans | 169 | $ 0 | 169 | |||
Cancellation of restricted stock in satisfaction of withholding tax (in shares) | (1) | |||||
Cancellation of restricted stock in satisfaction of withholding tax | (47) | (47) | ||||
Stock-based compensation expense, net of forfeitures | 2,762 | 2,762 | ||||
Accretion of preferred shares issuance costs | (21) | $ 21 | (21) | |||
Preferred stock dividends | (801) | (801) | ||||
Balances, end of period (in shares) at Mar. 31, 2021 | 2,500 | 6,577 | ||||
Balances, end of period at Mar. 31, 2021 | $ 372,412 | $ 49,743 | $ 66 | $ 16,580 | $ 353,216 | $ 2,550 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Redeemable Preferred Stock and Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Net unrealized gain (loss) from currency translation adjustments, tax | $ 635 | $ (49) |
Net unrealized gain (loss) from derivative instruments, tax | $ (1,581) | $ 735 |
Preferred stock dividends (in dollars per share) | $ 0.32 | $ 0.32 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (1,332) | $ 4,286 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 24,141 | 23,390 |
Write-down of equipment | 1,867 | 2,129 |
Stock-based compensation expenses | 2,762 | 2,117 |
Amortization of deferred costs | 1,145 | 1,448 |
Allowances and provisions | (226) | 168 |
Gain on sale of leased equipment | 0 | (2,067) |
Loss (income) from joint ventures | 519 | (207) |
Loss on debt extinguishment | 0 | 4,688 |
Loss on disposal of property, equipment and furnishings | 40 | 0 |
Deferred income taxes | (484) | 4,129 |
Changes in assets and liabilities: | ||
Receivables | (11,988) | (7,232) |
Inventory | 980 | 894 |
Other assets | (934) | (624) |
Accounts payable and accrued expenses | (648) | (12,630) |
Maintenance reserves | 6,299 | 5,537 |
Security deposits | 135 | 3,734 |
Unearned revenue | 351 | (1,500) |
Net cash provided by operating activities | 22,627 | 28,260 |
Cash flows from investing activities: | ||
Proceeds from sale of equipment (net of selling expenses) | 0 | 11,710 |
Issuance of notes receivable | (39,801) | (80,063) |
Payments received on notes receivable | 958 | 2,355 |
Purchase of equipment held for operating lease | (26,510) | (75,727) |
Purchase of property, equipment and furnishings | (121) | (1,470) |
Net cash used in investing activities | (65,474) | (143,195) |
Cash flows from financing activities: | ||
Proceeds from debt obligations | 54,000 | 643,200 |
Debt issuance costs | 0 | (5,779) |
Principal payments on debt obligations | (24,617) | (265,574) |
Debt prepayment costs | 0 | (2,374) |
Proceeds from shares issued under stock compensation plans | 169 | 200 |
Cancellation of restricted stock units in satisfaction of withholding tax | (47) | (348) |
Preferred stock dividends | (819) | (819) |
Net cash provided by financing activities | 28,686 | 368,506 |
(Decrease) increase in cash, cash equivalents and restricted cash | (14,161) | 253,571 |
Cash, cash equivalents and restricted cash at beginning of period | 78,925 | 63,668 |
Cash, cash equivalents and restricted cash at end of period | 64,764 | 317,239 |
Net cash paid for: | ||
Interest | 12,344 | 14,005 |
Income Taxes | 170 | (12) |
Supplemental disclosures of non-cash activities: | ||
Purchase of equipment held for operating lease | 0 | 5,680 |
Transfers from Equipment held for operating lease to Spare parts inventory | 169 | 889 |
Transfers from Spare parts inventory to Equipment held for operating lease | 585 | 0 |
Accrued preferred stock dividends | $ 18 | $ 9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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 2020 Form 10-K. There have been no significant changes in the Company’s significant accounting policies for the three months ended March 31, 2021. (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”), consistent in all material respects with those applied in our Form 10-K for the fiscal year ended December 31, 2020, 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 2020 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 and the inputs into management's estimates and judgment consider the economic implications of the COVID-19 pandemic on the Company’s critical and significant accounting estimates. 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 intangible assets, long-lived assets, equipment held for sale, allowance for doubtful accounts, inventory and estimated income taxes. Actual results may differ materially from these estimates under different assumptions or conditions. Given the uncertainty in the rapidly changing market and economic conditions related to the COVID-19 pandemic, the Company will continue to evaluate the nature and extent of the impact to its business, results of operations and financial condition. (b) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, including variable interest entities (“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 to determine whether for accounting purposes the entity is either a VIE or a 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. (c) Risks and Uncertainties As a result of the COVID-19 pandemic, the Company has temporarily closed its headquarters and other offices, required its employees and contractors to predominately work remotely, and implemented travel restrictions, all of which represent a significant disruption in how the Company operates its business. The Company has also taken various proactive actions in an attempt to mitigate the financial impact of the COVID-19 pandemic. During 2020, 9% of our employees were either furloughed, or subject to a form of reduced compensation. The operations of the Company’s partners and customers have likewise been disrupted. The worldwide spread of the COVID-19 virus has resulted in a global slowdown of economic activity. While the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment actions, it has had an adverse effect on the global economy and the ultimate societal and economic impact of the COVID-19 pandemic remains unknown. In particular, the ongoing COVID-19 pandemic has caused significant disruptions to the airline industry and has resulted in a dramatic reduction in demand for air travel domestically and abroad, which is likely to continue for the foreseeable future. Dramatically lower demand for air travel in turn presents significant risks to the Company, resulting in impacts which have adversely affected the Company’s business, results of operation, and financial condition. Lower demand for spare parts and engine and airframe leasing has negatively impacted collections of accounts receivable, caused the Company’s lessee customers to not enter into new leases, resulted in reduced spending by new and existing customers for leases or spare parts or equipment, resulted in lower usage fees, caused some of the Company’s customers to go out of business, and limited the ability of the Company’s personnel to travel to customers and potential customers. The Company is not able to evaluate or foresee the full extent of these impacts at the current time. During the three months ended March 31, 2021, the Company experienced declining average utilization and a corresponding decrease in revenue, as well as a significant decline in spare parts and equipment sales, in each case as compared to the prior year comparable period. Additionally, as of March 31, 2021, the Company has, in certain situations, agreed to rent concessions which resulted in a total reduction to rent revenues of $0.1 million during the first quarter of 2021. The rent concessions provide lessees with payment deferral options or reduced rent, where the revised cash flows are substantially the same or less (i.e., the rights of the lessor and obligations of the lessee have not substantially increased) as the original lease agreements. There is no impact on the timing of revenue recognition for rent concessions that result in short term payment deferrals. The rent concessions with reduced rent qualify for the COVID-19 practical expedient to account for the rent concessions outside of the modification framework. Due to the impact of recent events, including challenges from declines in market conditions, the Company performed a quarterly interim impairment analysis. The results of the analysis indicated no additional impairments in the first quarter of 2021. Other than what has been reflected in the Unaudited Condensed Consolidated Financial Statements, the Company is not aware of any specific event or circumstance related to the COVID-19 pandemic that would require it to update its estimates or judgments or adjust the carrying value of its assets or liabilities. Actual results could differ from those estimates and any such differences may be material to the Unaudited Condensed Consolidated Financial Statements. (d) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted by the Company In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted this guidance effective January 1, 2021 and it did not materially impact our consolidated financial statements and related disclosures. In March 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848), Scope”, which clarifies certain optional expedients to all derivatives affected by the discounting transition, regardless of whether the derivatives reference LIBOR or another rate expected to be discounted or whether the modification replaces or has the potential to replace the reference rate expected to be discounted. The amendments in this guidance are effective upon issuance through December 31, 2022. The Company adopted this guidance upon issuance. When the transition occurs, the Company expects to apply this expedient to its existing debt instruments and interest rate swaps that reference LIBOR, and to any other new transactions that reference LIBOR or another reference rate that is discontinued, through December 31, 2022. The adoption of this ASU did not impact the Company’s 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. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments.” This ASU improves the Codification and amends the interaction of Topic 842 and Topic 326. The amendments in this ASU are effective for the Company on January 1, 2023, with early adoption |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
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 months ended March 31, 2021 and 2020 (in thousands): Three months ended March 31, 2021 Leasing and Spare Parts Sales Eliminations Total Lease rent revenue $ 31,520 $ — $ — $ 31,520 Maintenance reserve revenue 19,812 — — 19,812 Spare parts and equipment sales 85 4,591 (110) 4,566 Managed services 2,269 — — 2,269 Other revenue 2,937 56 (35) 2,958 Total revenue $ 56,623 $ 4,647 $ (145) $ 61,125 Three Months Ended March 31, 2020 Leasing and Spare Parts Sales Eliminations Total Lease rent revenue $ 46,395 $ — $ — $ 46,395 Maintenance reserve revenue 20,528 — — 20,528 Spare parts and equipment sales 1,225 7,880 — 9,105 Gain on sale of leased equipment 2,067 — — 2,067 Managed services 2,494 — — 2,494 Other revenue 1,015 239 (234) 1,020 Total revenue $ 73,724 $ 8,119 $ (234) $ 81,609 |
Equipment Held for Operating Le
Equipment Held for Operating Lease and Notes Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Equipment Held for Operating Lease and Notes Receivable | Equipment Held for Operating Lease and Notes Receivable As of March 31, 2021, the Company had $1,887.9 million equipment held for operating lease portfolio and $197.6 million notes receivable which represented 295 engines, eight aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2020, the Company had $1,886.6 million equipment held for operating lease portfolio and $158.7 million notes receivable which represented 291 engines, eight aircraft, one marine vessel and other leased parts and equipment. The following table disaggregates equipment held for operating lease by asset class (in thousands): March 31, 2021 December 31, 2020 Gross Value Accumulated Depreciation Net Book Value Gross Value Accumulated Depreciation Net Book Value Engines and related equipment $ 2,264,712 $ (468,290) $ 1,796,422 $ 2,238,160 $ (445,780) $ 1,792,380 Aircraft and airframes 87,746 (8,088) 79,658 89,613 (7,312) 82,301 Marine vessel 13,010 (1,206) 11,804 12,963 (1,031) 11,932 $ 2,365,468 $ (477,584) $ 1,887,884 $ 2,340,736 $ (454,123) $ 1,886,613 Notes Receivable During the three months ended March 31, 2021 and 2020, the Company recorded $2.9 million and $1.0 million of interest revenue, respectively, related to the notes receivable and is presented within Other revenue. The effective interest rates on our notes receivable ranged from 6.3% to 13.7% during the three months ended March 31, 2021 and 7.1% to 13.7% during the three months ended March 31, 2020. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments In 2011, the Company entered into an agreement with Mitsui & Co., Ltd. to participate in a joint venture formed as a Dublin-based Irish limited company, Willis Mitsui & Company Engine Support Limited (“WMES”) for the purpose of acquiring and leasing jet engines. Each partner holds a fifty percent interest in the joint venture and the Company uses the equity method in recording investment activity. As of March 31, 2021, WMES owned a lease portfolio, inclusive of a note receivable, of 36 engines and five aircraft with a net book value of $285.0 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 March 31, 2021, CASC Willis owned a lease portfolio of four engines with a net book value of $49.7 million. As of March 31, 2021 WMES CASC Willis Total (in thousands) Investment in joint ventures as of December 31, 2020 $ 37,365 $ 15,910 $ 53,275 (Loss) earnings from joint ventures (678) 159 (519) Foreign currency translation adjustment — 2,832 2,832 Other comprehensive gain from joint ventures 554 — 554 Investment in joint ventures as of March 31, 2021 $ 37,241 $ 18,901 $ 56,142 “Other revenue” on the Condensed Consolidated Statements of Income includes management fees earned of $0.3 million and $0.5 million during the three months ended March 31, 2021 and 2020, respectively, related to the servicing of engines for the WMES lease portfolio. There were no aircraft or engine sales to WMES or CASC Willis during the three months ended March 31, 2021 or 2020. Unaudited summarized financial information for 100% of WMES is presented in the following tables: Three Months Ended March 31, 2021 2020 (in thousands) Revenue $ 4,761 $ 8,111 Expenses 6,169 7,754 WMES net (loss) income $ (1,408) $ 357 March 31, December 31, (in thousands) Total assets $ 299,545 $ 303,886 Total liabilities 216,903 219,836 Total WMES net equity $ 82,642 $ 84,050 The difference between the Company’s investment in WMES and 50% of total WMES net equity is primarily attributable to the recognition of deferred gains related to engines sold by the Company to WMES. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consisted of the following: March 31, December 31, (in thousands) Credit facility at a floating rate of interest of one-month LIBOR plus 1.75% at March 31, 2021, secured by engines. The facility has a committed amount of $1.0 billion at March 31, 2021, which revolves until the maturity date of June 2024 $ 817,000 $ 777,000 WEST V Series A 2020 term notes payable at a fixed rate of interest of 3.23%, maturing in March 2045, secured by engines 283,533 286,863 WEST V Series B 2020 term notes payable at a fixed rate of interest of 4.21%, maturing in March 2045, secured by engines 39,395 39,855 WEST V Series C 2020 term notes payable at a fixed rate of interest of 6.66%, maturing in March 2045, secured by engines 18,617 19,043 WEST IV Series A 2018 term notes payable at a fixed rate of interest of 4.75%, maturing in September 2043, secured by engines 275,042 277,481 WEST IV Series B 2018 term notes payable at a fixed rate of interest of 5.44%, maturing in September 2043, secured by engines 39,476 39,640 WEST III Series A 2017 term notes payable at a fixed rate of interest of 4.69%, maturing in August 2042, secured by engines 224,401 227,138 WEST III Series B 2017 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines 32,195 32,481 Note payable at three-month LIBOR plus a margin ranging from 1.85% to 2.50% at March 31, 2021, maturing in July 2022, secured by engines 5,843 6,138 Note payable at a fixed rate of interest of 3.18%, maturing in July 2024, secured by an aircraft 6,767 7,247 1,742,269 1,712,886 Less: unamortized debt issuance costs (18,139) (19,133) Total debt obligations $ 1,724,130 $ 1,693,753 One-month LIBOR was 0.11% and 0.14% as of March 31, 2021 and December 31, 2020, respectively. Three-month LIBOR was 0.19% and 0.24% as of March 31, 2021 and December 31, 2020, respectively. Principal outstanding at March 31, 2021, is expected to be repayable as follows: Year (in thousands) 2021 $ 40,560 2022 57,341 2023 52,469 2024 868,636 2025 50,401 Thereafter 672,862 Total $ 1,742,269 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 has certain negative financial covenants such as liens, advances, change in business, sales of assets, dividends and stock repurchases. These covenants are tested either monthly or quarterly and the Company was in full compliance with all financial covenant requirements at March 31, 2021. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative InstrumentsThe Company periodically holds interest rate derivative instruments to mitigate exposure to changes in interest rates, predominantly one-month LIBOR, with $822.8 million and $783.1 million of variable rate borrowings at March 31, 2021 and December 31, 2020, respectively. As a matter of policy, management does not use derivatives for speculative purposes. As of March 31, 2021, the Company has six interest rate swap agreements. During the first quarter of 2021, the Company entered into four additional fixed-rate interest swap agreements, each having notional amounts of $100.0 million, two with remaining terms of 34 months and two with remaining terms of 58 months. One interest rate swap agreement was entered into during 2019 which has a notional outstanding amount of $100.0 million with a remaining term of 39 months as of March 31, 2021. One interest rate swap agreement was entered into during 2016 which has a notional outstanding amount of $100.0 million with a remaining term of one month as of March 31, 2021. The derivative instruments were each designated as cash flow hedges at inception and recorded at fair value. The Company evaluated the effectiveness of the swap agreements to hedge the interest rate risk associated with its variable rate debt and concluded at the swap inception dates, each swap was highly effective in hedging that risk. The Company evaluates the effectiveness of the hedging relationships on an ongoing basis and concluded there was no ineffectiveness in the hedges for the period ended March 31, 2021. 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 when 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 swaps as of March 31, 2021 was $2.5 million, representing an asset of $4.9 million and a liability of $2.3 million. The net fair value of the interest rate swaps as of December 31, 2020 was $4.0 million, representing a liability. The Company recorded interest expense of $0.9 million and $36.0 thousand during the three months ended March 31, 2021 and 2020, 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 months ended March 31, 2021 and 2020: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivatives Three Months Ended March 31, 2021 2020 (in thousands) Interest rate contracts $ 6,497 $ (3,318) Total $ 6,497 $ (3,318) 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. Counterparty Credit Risk The Company evaluates the creditworthiness of the counterparties under its hedging agreements. The counterparties for the interest rate swaps are large financial institutions that possessed investment grade credit ratings. Based on these ratings, the Company believes that the counterparties were credit-worthy and that their continuing performance under the hedging agreements was probable and did not require the counterparties to provide collateral or other security to the Company. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome tax (benefit) expense for the three months ended March 31, 2021 and 2020 was $(0.4) million and $4.2 million, respectively. The effective tax rate for the three months ended March 31, 2021 and 2020 was 21.2% and 49.8%, respectively. The decrease in the effective tax rate was predominantly due to the executive compensation exceeding $1.0 million as defined in IRS code Section 162(m).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, state taxes, the amount of executive compensation exceeding $1.0 million as defined in IRS code Section 162(m) and numerous other factors, including changes in tax law.The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the U.S., and includes several provisions related to employment and income taxes, including provisions for the deferral of the employer portion of social security taxes through December 31, 2020. On December 27, 2020, the U.S. government enacted the Consolidated Appropriations Act, 2021, which enhances and expands certain provisions of the CARES Act. During the first quarter of 2021, the Company qualified for the Employment Retention Credit (“ERC”) and recognized a credit of $0.7 million as a reduction to social security tax |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
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, receivables, and accounts payable : The amounts reported in the accompanying Condensed Consolidated Balance Sheets approximate fair value due to their short-term nature. • Notes receivable : The carrying amount of the Company’s outstanding balance on its Notes receivable as of March 31, 2021 and December 31, 2020 was estimated to have a fair value of approximately $201.3 million and $159.2 million, respectively, based on the fair value of estimated future payments calculated using interest rates that approximate prevailing market rates at each period end (Level 2 inputs). • Debt obligations : The carrying amount of the Company’s outstanding balance on its Debt obligations as of March 31, 2021 and December 31, 2020 was estimated to have a fair value of approximately $1,757.1 million and $1,691.0 million respectively, based on the fair value of estimated future payments calculated using interest rates that approximate prevailing market rates at each period end (Level 2 inputs). Assets Measured and Recorded at Fair Value on a Recurring Basis As of March 31, 2021 and December 31, 2020, the Company measured the fair value of its interest rate swap agreements 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 net fair value of the interest rate swaps as of March 31, 2021 was $2.5 million, representing a net asset of $4.9 million and a net liability of $2.3 million. The net fair value of the interest rate swaps as of December 31, 2020 was $4.0 million, representing a net liability. For the three months ended March 31, 2021 and 2020, $0.9 million and $36.0 thousand was recorded as 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 uses Level 2 inputs to measure write-downs of equipment held for lease and equipment held for sale. Total Losses Three Months Ended March 31, 2021 2020 (in thousands) Equipment held for lease $ 1,867 $ 2,059 Equipment held for sale — 70 Total $ 1,867 $ 2,129 Write-downs of equipment to their estimated fair values totaled $1.9 million for the three months ended March 31, 2021 reflecting an adjustment of the carrying value of one impaired airframe. As of March 31, 2021, included within equipment held for lease and equipment held for sale was $44.6 million in remaining book values of 22 assets which were previously written down. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and 2020, respectively. The following table presents the calculation of basic and diluted EPS (in thousands, except per share data): Three Months Ended March 31, 2021 2020 Net (loss) income attributable to common shareholders $ (2,154) $ 3,455 Basic weighted average common shares outstanding 5,995 5,860 Potentially dilutive common shares — 264 Diluted weighted average common shares outstanding 5,995 6,124 Basic weighted average (loss) earnings per common share $ (0.36) $ 0.59 Diluted weighted average (loss) earnings per common share $ (0.36) $ 0.56 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Common Stock Repurchase Effective December 31, 2018, the Board of Directors approved the renewal of the existing common stock 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. Effective December 31, 2020, the Board of Directors approved the renewal of the existing common stock repurchase plan extending the plan through December 31, 2022. Repurchased shares are immediately retired. No shares were repurchased during the three months ended March 31, 2021 or 2020. Redeemable Preferred Stock Dividends: The Company’s Series A-1 Preferred Stock and Series A-2 Preferred Stock accrue quarterly dividends at the rate per annum of 6.5% per share. During the three months ended March 31, 2021 and 2020, the Company paid total dividends of $0.8 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 12 in the 2020 Form 10-K. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The components of stock-based compensation expense were as follows: Three months ended March 31, 2021 2020 (in thousands) 2007 Stock Incentive Plan $ 685 $ 1,025 2018 Stock Incentive Plan 1,999 1,060 Employee Stock Purchase Plan 78 32 Total Stock Compensation Expense $ 2,762 $ 2,117 The significant stock compensation plans are described below. 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 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 and performance-based vesting, typically between one As of March 31, 2021, the Company had granted 598,750 RSAs under the 2018 Plan and had 295,846 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 under the 2007 and 2018 Plans during the three months ended March 31, 2021: Shares Balance as of December 31, 2020 581,715 Shares granted — Shares forfeited — Shares vested (4,333) Balance as of March 31, 2021 577,382 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 ESPP. Participants may purchase not more than 1,000 shares or $25,000 of common stock in any one calendar year. Each January 31 and July 31 shares of common stock are purchased with the employees’ payroll deductions from the immediately preceding six months at a price per share of 85% of the lesser of the market price of the common stock on the purchase date or the market price of the common stock on the date of entry into an offering period. In the three months ended March 31, 2021 and 2020, 8,307 and 3,892 shares of common stock, respectively, were issued under the ESPP. The Company issues new shares through its transfer agent upon employee stock purchase. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 Leasing and Spare Parts Sales Eliminations Total Revenue: Lease rent revenue $ 31,520 $ — $ — $ 31,520 Maintenance reserve revenue 19,812 — — 19,812 Spare parts and equipment sales 85 4,591 (110) 4,566 Other revenue 5,206 56 (35) 5,227 Total revenue 56,623 4,647 (145) 61,125 Expenses: Depreciation and amortization expense 24,112 29 — 24,141 Cost of spare parts and equipment sales 6 3,817 (14) 3,809 Write-down of equipment 1,867 — — 1,867 General and administrative 15,557 484 110 16,151 Technical expense 1,310 — — 1,310 Net finance costs: Interest expense 15,019 — — 15,019 Total finance costs 15,019 — — 15,019 Total expenses 57,871 4,330 96 62,297 (Loss) earnings from operations $ (1,248) $ 317 $ (241) $ (1,172) Three Months Ended March 31, 2020 Leasing and Spare Parts Sales Eliminations Total Revenue: Lease rent revenue $ 46,395 $ — $ — $ 46,395 Maintenance reserve revenue 20,528 — — 20,528 Spare parts and equipment sales 1,225 7,880 — 9,105 Gain on sale of leased equipment 2,067 — — 2,067 Other revenue 3,509 239 (234) 3,514 Total revenue 73,724 8,119 (234) 81,609 Expenses: Depreciation and amortization expense 23,375 15 — 23,390 Cost of spare parts and equipment sales 148 6,540 — 6,688 Write-down of equipment 2,129 — — 2,129 General and administrative 18,542 1,025 — 19,567 Technical expense 1,127 — — 1,127 Net finance costs: Interest expense 15,696 — — 15,696 Loss on debt extinguishment 4,688 — — 4,688 Total finance costs 20,384 — — 20,384 Total expenses 65,705 7,580 — 73,285 Earnings (loss) from operations $ 8,019 $ 539 $ (234) $ 8,324 Leasing and Spare Parts Sales Eliminations Total Total assets as of March 31, 2021 $ 2,358,186 $ 51,488 $ — $ 2,409,674 Total assets as of December 31, 2020 $ 2,312,172 $ 52,776 $ — $ 2,364,948 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Joint Ventures “Other revenue” on the Condensed Consolidated Statements of Income includes management fees earned of $0.3 million and $0.5 million during the three months ended March 31, 2021 and 2020, respectively, related to the servicing of engines for the WMES lease portfolio. Other During 2020, the Board’s independent directors approved the Company’s agreement to a lease with our Chief Executive Officer (“CEO”) in support of the Company’s vessel leasing business. That lease provides for a payment to our CEO of $750 per day for the use of his tender in support of our vessel lease to a third-party lessee. The Company has paid a total of $12,000 for usage of the tender during the first quarter of 2021. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event WEST VI Securitization On April 30, 2021, the Company proposed to offer $336.7 million of fixed rate notes (“the Notes”) by Willis Engine Structured Trust VI, its direct, wholly-owned subsidiary (“WEST VI”). It is expected that the Notes will be issued in three series, with the Series A Notes to be issued in an aggregate principal amount of approximately $278.6 million, the Series B Notes in an aggregate principal amount of approximately $38.7 million and the Series C Notes in an aggregate principal amount of approximately $19.4 million. The Notes will be secured by, among other things, WEST VI’s direct and indirect interests in a portfolio of 29 aircraft engines and one airframe, which WEST VI will acquire from the Company pursuant to an asset purchase agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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”), consistent in all material respects with those applied in our Form 10-K for the fiscal year ended December 31, 2020, 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 2020 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 and the inputs into management's estimates and judgment consider the economic implications of the COVID-19 pandemic on the Company’s critical and significant accounting estimates. 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 intangible assets, long-lived assets, equipment held for sale, allowance for doubtful accounts, inventory and estimated income taxes. Actual results may differ materially from these estimates under different assumptions or conditions. Given the uncertainty in the rapidly changing market and economic conditions related to the COVID-19 pandemic, the Company will continue to evaluate the nature and extent of the impact to its business, results of operations and financial condition. |
Principles of Consolidation | Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, including variable interest entities (“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 to determine whether for accounting purposes the entity is either a VIE or a 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 December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted this guidance effective January 1, 2021 and it did not materially impact our consolidated financial statements and related disclosures. In March 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848), Scope”, which clarifies certain optional expedients to all derivatives affected by the discounting transition, regardless of whether the derivatives reference LIBOR or another rate expected to be discounted or whether the modification replaces or has the potential to replace the reference rate expected to be discounted. The amendments in this guidance are effective upon issuance through December 31, 2022. The Company adopted this guidance upon issuance. When the transition occurs, the Company expects to apply this expedient to its existing debt instruments and interest rate swaps that reference LIBOR, and to any other new transactions that reference LIBOR or another reference rate that is discontinued, through December 31, 2022. The adoption of this ASU did not impact the Company’s 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. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments.” This ASU improves the Codification and amends the interaction of Topic 842 and Topic 326. The amendments in this ASU are effective for the Company on January 1, 2023, with early adoption |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 months ended March 31, 2021 and 2020 (in thousands): Three months ended March 31, 2021 Leasing and Spare Parts Sales Eliminations Total Lease rent revenue $ 31,520 $ — $ — $ 31,520 Maintenance reserve revenue 19,812 — — 19,812 Spare parts and equipment sales 85 4,591 (110) 4,566 Managed services 2,269 — — 2,269 Other revenue 2,937 56 (35) 2,958 Total revenue $ 56,623 $ 4,647 $ (145) $ 61,125 Three Months Ended March 31, 2020 Leasing and Spare Parts Sales Eliminations Total Lease rent revenue $ 46,395 $ — $ — $ 46,395 Maintenance reserve revenue 20,528 — — 20,528 Spare parts and equipment sales 1,225 7,880 — 9,105 Gain on sale of leased equipment 2,067 — — 2,067 Managed services 2,494 — — 2,494 Other revenue 1,015 239 (234) 1,020 Total revenue $ 73,724 $ 8,119 $ (234) $ 81,609 |
Equipment Held for Operating _2
Equipment Held for Operating Lease and Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Operating Lease, Carrying Value of Assets Subject to Leases | The following table disaggregates equipment held for operating lease by asset class (in thousands): March 31, 2021 December 31, 2020 Gross Value Accumulated Depreciation Net Book Value Gross Value Accumulated Depreciation Net Book Value Engines and related equipment $ 2,264,712 $ (468,290) $ 1,796,422 $ 2,238,160 $ (445,780) $ 1,792,380 Aircraft and airframes 87,746 (8,088) 79,658 89,613 (7,312) 82,301 Marine vessel 13,010 (1,206) 11,804 12,963 (1,031) 11,932 $ 2,365,468 $ (477,584) $ 1,887,884 $ 2,340,736 $ (454,123) $ 1,886,613 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Schedule of investments | As of March 31, 2021 WMES CASC Willis Total (in thousands) Investment in joint ventures as of December 31, 2020 $ 37,365 $ 15,910 $ 53,275 (Loss) earnings from joint ventures (678) 159 (519) Foreign currency translation adjustment — 2,832 2,832 Other comprehensive gain from joint ventures 554 — 554 Investment in joint ventures as of March 31, 2021 $ 37,241 $ 18,901 $ 56,142 |
Summarized financial information | Unaudited summarized financial information for 100% of WMES is presented in the following tables: Three Months Ended March 31, 2021 2020 (in thousands) Revenue $ 4,761 $ 8,111 Expenses 6,169 7,754 WMES net (loss) income $ (1,408) $ 357 March 31, December 31, (in thousands) Total assets $ 299,545 $ 303,886 Total liabilities 216,903 219,836 Total WMES net equity $ 82,642 $ 84,050 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Debt obligations consisted of the following: March 31, December 31, (in thousands) Credit facility at a floating rate of interest of one-month LIBOR plus 1.75% at March 31, 2021, secured by engines. The facility has a committed amount of $1.0 billion at March 31, 2021, which revolves until the maturity date of June 2024 $ 817,000 $ 777,000 WEST V Series A 2020 term notes payable at a fixed rate of interest of 3.23%, maturing in March 2045, secured by engines 283,533 286,863 WEST V Series B 2020 term notes payable at a fixed rate of interest of 4.21%, maturing in March 2045, secured by engines 39,395 39,855 WEST V Series C 2020 term notes payable at a fixed rate of interest of 6.66%, maturing in March 2045, secured by engines 18,617 19,043 WEST IV Series A 2018 term notes payable at a fixed rate of interest of 4.75%, maturing in September 2043, secured by engines 275,042 277,481 WEST IV Series B 2018 term notes payable at a fixed rate of interest of 5.44%, maturing in September 2043, secured by engines 39,476 39,640 WEST III Series A 2017 term notes payable at a fixed rate of interest of 4.69%, maturing in August 2042, secured by engines 224,401 227,138 WEST III Series B 2017 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines 32,195 32,481 Note payable at three-month LIBOR plus a margin ranging from 1.85% to 2.50% at March 31, 2021, maturing in July 2022, secured by engines 5,843 6,138 Note payable at a fixed rate of interest of 3.18%, maturing in July 2024, secured by an aircraft 6,767 7,247 1,742,269 1,712,886 Less: unamortized debt issuance costs (18,139) (19,133) Total debt obligations $ 1,724,130 $ 1,693,753 |
Schedule or debt maturities | Principal outstanding at March 31, 2021, is expected to be repayable as follows: Year (in thousands) 2021 $ 40,560 2022 57,341 2023 52,469 2024 868,636 2025 50,401 Thereafter 672,862 Total $ 1,742,269 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of information about financial statement effects related to cash flow hedges | The following tables provide additional information about the financial statement effects related to the cash flow hedges for the three months ended March 31, 2021 and 2020: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivatives Three Months Ended March 31, 2021 2020 (in thousands) Interest rate contracts $ 6,497 $ (3,318) Total $ 6,497 $ (3,318) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy of assets measured on nonrecurring basis and gain (losses) recorded | The Company uses Level 2 inputs to measure write-downs of equipment held for lease and equipment held for sale. Total Losses Three Months Ended March 31, 2021 2020 (in thousands) Equipment held for lease $ 1,867 $ 2,059 Equipment held for sale — 70 Total $ 1,867 $ 2,129 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted EPS | The following table presents the calculation of basic and diluted EPS (in thousands, except per share data): Three Months Ended March 31, 2021 2020 Net (loss) income attributable to common shareholders $ (2,154) $ 3,455 Basic weighted average common shares outstanding 5,995 5,860 Potentially dilutive common shares — 264 Diluted weighted average common shares outstanding 5,995 6,124 Basic weighted average (loss) earnings per common share $ (0.36) $ 0.59 Diluted weighted average (loss) earnings per common share $ (0.36) $ 0.56 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of components of stock compensation expense | The components of stock-based compensation expense were as follows: Three months ended March 31, 2021 2020 (in thousands) 2007 Stock Incentive Plan $ 685 $ 1,025 2018 Stock Incentive Plan 1,999 1,060 Employee Stock Purchase Plan 78 32 Total Stock Compensation Expense $ 2,762 $ 2,117 |
Summary of restricted stock activity | The following table summarizes restricted stock activity under the 2007 and 2018 Plans during the three months ended March 31, 2021: Shares Balance as of December 31, 2020 581,715 Shares granted — Shares forfeited — Shares vested (4,333) Balance as of March 31, 2021 577,382 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of the reportable segments | The following tables present a summary of the reportable segments (in thousands): Three Months Ended March 31, 2021 Leasing and Spare Parts Sales Eliminations Total Revenue: Lease rent revenue $ 31,520 $ — $ — $ 31,520 Maintenance reserve revenue 19,812 — — 19,812 Spare parts and equipment sales 85 4,591 (110) 4,566 Other revenue 5,206 56 (35) 5,227 Total revenue 56,623 4,647 (145) 61,125 Expenses: Depreciation and amortization expense 24,112 29 — 24,141 Cost of spare parts and equipment sales 6 3,817 (14) 3,809 Write-down of equipment 1,867 — — 1,867 General and administrative 15,557 484 110 16,151 Technical expense 1,310 — — 1,310 Net finance costs: Interest expense 15,019 — — 15,019 Total finance costs 15,019 — — 15,019 Total expenses 57,871 4,330 96 62,297 (Loss) earnings from operations $ (1,248) $ 317 $ (241) $ (1,172) Three Months Ended March 31, 2020 Leasing and Spare Parts Sales Eliminations Total Revenue: Lease rent revenue $ 46,395 $ — $ — $ 46,395 Maintenance reserve revenue 20,528 — — 20,528 Spare parts and equipment sales 1,225 7,880 — 9,105 Gain on sale of leased equipment 2,067 — — 2,067 Other revenue 3,509 239 (234) 3,514 Total revenue 73,724 8,119 (234) 81,609 Expenses: Depreciation and amortization expense 23,375 15 — 23,390 Cost of spare parts and equipment sales 148 6,540 — 6,688 Write-down of equipment 2,129 — — 2,129 General and administrative 18,542 1,025 — 19,567 Technical expense 1,127 — — 1,127 Net finance costs: Interest expense 15,696 — — 15,696 Loss on debt extinguishment 4,688 — — 4,688 Total finance costs 20,384 — — 20,384 Total expenses 65,705 7,580 — 73,285 Earnings (loss) from operations $ 8,019 $ 539 $ (234) $ 8,324 Leasing and Spare Parts Sales Eliminations Total Total assets as of March 31, 2021 $ 2,358,186 $ 51,488 $ — $ 2,409,674 Total assets as of December 31, 2020 $ 2,312,172 $ 52,776 $ — $ 2,364,948 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Asset write-down | $ 1.9 | $ 2.1 | |
Contingencies related to COVID-19 | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of workforce furloughed or subject to reduced compensation, COVID-19 | 9.00% | ||
Reduction to revenue, rent concessions | $ 0.1 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contracts with Customers | ||
Lease rent revenue | $ 46,395 | |
Gain on sale of leased equipment | $ 0 | 2,067 |
Total revenue | 61,125 | 81,609 |
Lease rent revenue | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 31,520 | 46,395 |
Maintenance reserve revenue | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 19,812 | 20,528 |
Spare parts and equipment sales | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 4,566 | 9,105 |
Managed services | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 2,269 | 2,494 |
Other revenue | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 2,958 | 1,020 |
Operating Segments | Leasing and Related Operations | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 46,395 | |
Gain on sale of leased equipment | 2,067 | |
Total revenue | 56,623 | 73,724 |
Operating Segments | Leasing and Related Operations | Lease rent revenue | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 31,520 | 46,395 |
Operating Segments | Leasing and Related Operations | Maintenance reserve revenue | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 19,812 | 20,528 |
Operating Segments | Leasing and Related Operations | Spare parts and equipment sales | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 85 | 1,225 |
Operating Segments | Leasing and Related Operations | Managed services | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 2,269 | 2,494 |
Operating Segments | Leasing and Related Operations | Other revenue | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 2,937 | 1,015 |
Operating Segments | Spare Parts Sales | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 0 | |
Gain on sale of leased equipment | 0 | |
Total revenue | 4,647 | 8,119 |
Operating Segments | Spare Parts Sales | Lease rent revenue | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 0 | 0 |
Operating Segments | Spare Parts Sales | Maintenance reserve revenue | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 0 | 0 |
Operating Segments | Spare Parts Sales | Spare parts and equipment sales | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 4,591 | 7,880 |
Operating Segments | Spare Parts Sales | Managed services | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 0 | 0 |
Operating Segments | Spare Parts Sales | Other revenue | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 56 | 239 |
Eliminations | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 0 | |
Gain on sale of leased equipment | 0 | |
Total revenue | (145) | (234) |
Eliminations | Lease rent revenue | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 0 | 0 |
Eliminations | Maintenance reserve revenue | ||
Revenue from Contracts with Customers | ||
Lease rent revenue | 0 | 0 |
Eliminations | Spare parts and equipment sales | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | (110) | 0 |
Eliminations | Managed services | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | 0 | 0 |
Eliminations | Other revenue | ||
Revenue from Contracts with Customers | ||
Maintenance reserve revenue | $ (35) | $ (234) |
Equipment Held for Operating _3
Equipment Held for Operating Lease and Notes Receivable - Narrative (Details) $ in Thousands | 3 Months Ended | ||||||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021engine | Mar. 31, 2021aircraft. | Mar. 31, 2021marineVessel | Dec. 31, 2020USD ($) | Dec. 31, 2020engine | Dec. 31, 2020aircraft. | Dec. 31, 2020marineVessel | |
Lessor, Lease, Description [Line Items] | |||||||||
Equipment held for operating lease, property, equipment, and furnishings, less accumulated depreciation | $ 31,169 | $ 31,753 | |||||||
Notes receivable | 197,552 | 158,708 | |||||||
Number of leased assets | 295 | 8 | 1 | 291 | 8 | 1 | |||
Note Receivable | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Interest income | $ 2,900 | $ 1,000 | |||||||
Minimum | Note Receivable | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Note receivable, effective interest rate | 6.30% | 7.10% | |||||||
Maximum | Note Receivable | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Note receivable, effective interest rate | 13.70% | 13.70% | |||||||
Assets Leased to Others | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Equipment held for operating lease, property, equipment, and furnishings, less accumulated depreciation | $ 1,887,884 | $ 1,886,613 |
Equipment Held for Operating _4
Equipment Held for Operating Lease and Notes Receivable - Schedule of Carrying Values (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Lessor, Lease, Description [Line Items] | ||
Accumulated depreciation | $ (11,629) | $ (11,356) |
Net Book Value | 31,169 | 31,753 |
Engines and related equipment | ||
Lessor, Lease, Description [Line Items] | ||
Gross Value | 2,264,712 | 2,238,160 |
Accumulated depreciation | (468,290) | (445,780) |
Net Book Value | 1,796,422 | 1,792,380 |
Aircraft and airframes | ||
Lessor, Lease, Description [Line Items] | ||
Gross Value | 87,746 | 89,613 |
Accumulated depreciation | (8,088) | (7,312) |
Net Book Value | 79,658 | 82,301 |
Marine vessel | ||
Lessor, Lease, Description [Line Items] | ||
Gross Value | 13,010 | 12,963 |
Accumulated depreciation | (1,206) | (1,031) |
Net Book Value | 11,804 | 11,932 |
Assets Leased to Others | ||
Lessor, Lease, Description [Line Items] | ||
Gross Value | 2,365,468 | 2,340,736 |
Accumulated depreciation | (477,584) | (454,123) |
Net Book Value | $ 1,887,884 | $ 1,886,613 |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)engineaircraft. | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Net book value of equipment held for operating lease | $ 31,169 | $ 31,753 | |
Assets Leased to Others | |||
Schedule of Equity Method Investments [Line Items] | |||
Net book value of equipment held for operating lease | $ 1,887,884 | $ 1,886,613 | |
WMES | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 50.00% | ||
Number of engines in lease portfolio | engine | 36 | ||
Number of aircraft in lease portfolio | aircraft. | 5 | ||
WMES | Assets Leased to Others | |||
Schedule of Equity Method Investments [Line Items] | |||
Net book value of equipment held for operating lease | $ 285,000 | ||
CASC Willis | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 50.00% | ||
Number of engines in lease portfolio | engine | 4 | ||
CASC Willis | Assets Leased to Others | |||
Schedule of Equity Method Investments [Line Items] | |||
Net book value of equipment held for operating lease | $ 49,700 | ||
Other Income | WMES | Asset Management | |||
Schedule of Equity Method Investments [Line Items] | |||
Maintenance reserve revenue | $ 300 | $ 500 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity Method Investment Balances [Roll Forward] | ||
Investment in joint ventures at beginning of the period | $ 53,275 | |
(Loss) earnings from joint ventures | (519) | |
Foreign currency translation adjustment | 2,832 | |
Other comprehensive gain from joint ventures | 554 | $ 0 |
Investment in joint ventures at end of the period | 56,142 | |
WMES | ||
Equity Method Investment Balances [Roll Forward] | ||
Investment in joint ventures at beginning of the period | 37,365 | |
(Loss) earnings from joint ventures | (678) | |
Foreign currency translation adjustment | 0 | |
Other comprehensive gain from joint ventures | 554 | |
Investment in joint ventures at end of the period | 37,241 | |
CASC Willis | ||
Equity Method Investment Balances [Roll Forward] | ||
Investment in joint ventures at beginning of the period | 15,910 | |
(Loss) earnings from joint ventures | 159 | |
Foreign currency translation adjustment | 2,832 | |
Other comprehensive gain from joint ventures | 0 | |
Investment in joint ventures at end of the period | $ 18,901 |
Investments - Summarized Financ
Investments - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Statement [Abstract] | |||||
Revenue | $ 61,125 | $ 81,609 | |||
Expenses | 62,297 | 73,285 | |||
Net (loss) income | (1,332) | 4,286 | |||
Statement of Financial Position [Abstract] | |||||
Total assets | [1] | 2,409,674 | $ 2,364,948 | ||
Total liabilities | [2] | 1,987,519 | 1,951,211 | ||
Total WMES net equity | 372,412 | 353,007 | 364,015 | $ 350,338 | |
WMES | |||||
Income Statement [Abstract] | |||||
Revenue | 4,761 | 8,111 | |||
Expenses | 6,169 | 7,754 | |||
Net (loss) income | (1,408) | $ 357 | |||
Statement of Financial Position [Abstract] | |||||
Total assets | 299,545 | 303,886 | |||
Total liabilities | 216,903 | 219,836 | |||
Total WMES net equity | $ 82,642 | $ 84,050 | |||
[1] | Total assets at March 31, 2021 and December 31, 2020, respectively, include the following assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the VIEs: Restricted cash $33,763 and $35,262; Equipment $1,025,492 and $1,037,684; Maintenance Rights $767 and $767; Inventory $5,437 and $5,437; Notes receivable $26,220 and $26,392; and Other assets $604 and $558, respectively. | ||||
[2] | Total liabilities at March 31, 2021 and December 31, 2020, respectively, include the following liabilities of VIEs for which the VIEs’ creditors do not have recourse to Willis Lease Finance Corporation: Debt obligations $898,398 and $907,550, respectively. |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Notes Payable (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Long Term Debt | ||
Gross amount of debt | $ 1,742,269,000 | $ 1,712,886,000 |
Less: unamortized debt issuance costs | (18,139,000) | (19,133,000) |
Total debt obligations | 1,724,130,000 | 1,693,753,000 |
Credit facility at a floating rate of interest of one-month LIBOR plus 1.75% at March 31, 2021, secured by engines. The facility has a committed amount of $1.0 billion at March 31, 2021, which revolves until the maturity date of June 2024 | ||
Long Term Debt | ||
Line of credit facility outstanding amount | $ 817,000,000 | 777,000,000 |
WEST V Series A 2020 term notes payable at a fixed rate of interest of 3.23%, maturing in March 2045, secured by engines | ||
Long Term Debt | ||
Fixed rate (as a percent) | 3.23% | |
Gross amount of debt | $ 283,533,000 | 286,863,000 |
WEST V Series B 2020 term notes payable at a fixed rate of interest of 4.21%, maturing in March 2045, secured by engines | ||
Long Term Debt | ||
Fixed rate (as a percent) | 4.21% | |
Gross amount of debt | $ 39,395,000 | 39,855,000 |
WEST V Series C 2020 term notes payable at a fixed rate of interest of 6.66%, maturing in March 2045, secured by engines | ||
Long Term Debt | ||
Fixed rate (as a percent) | 6.66% | |
Gross amount of debt | $ 18,617,000 | 19,043,000 |
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 | ||
Fixed rate (as a percent) | 4.75% | |
Gross amount of debt | $ 275,042,000 | 277,481,000 |
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 | ||
Fixed rate (as a percent) | 5.44% | |
Gross amount of debt | $ 39,476,000 | 39,640,000 |
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 | ||
Fixed rate (as a percent) | 4.69% | |
Gross amount of debt | $ 224,401,000 | 227,138,000 |
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 | ||
Fixed rate (as a percent) | 6.36% | |
Gross amount of debt | $ 32,195,000 | 32,481,000 |
Note payable at three-month LIBOR plus a margin ranging from 1.85% to 2.50% at March 31, 2021, maturing in July 2022, secured by engines | ||
Long Term Debt | ||
Gross amount of debt | $ 5,843,000 | 6,138,000 |
Note payable at a fixed rate of interest of 3.18%, maturing in July 2024, secured by an aircraft | ||
Long Term Debt | ||
Fixed rate (as a percent) | 3.18% | |
Gross amount of debt | $ 6,767,000 | $ 7,247,000 |
Revolving credit facility | Credit facility at a floating rate of interest of one-month LIBOR plus 1.75% at March 31, 2021, secured by engines. The facility has a committed amount of $1.0 billion at March 31, 2021, which revolves until the maturity date of June 2024 | ||
Long Term Debt | ||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |
LIBOR | Credit facility at a floating rate of interest of one-month LIBOR plus 1.75% at March 31, 2021, secured by engines. The facility has a committed amount of $1.0 billion at March 31, 2021, which revolves until the maturity date of June 2024 | ||
Long Term Debt | ||
Variable rate (as a percent) | 1.75% | |
LIBOR | Note payable at three-month LIBOR plus a margin ranging from 1.85% to 2.50% at March 31, 2021, maturing in July 2022, secured by engines | Minimum | ||
Long Term Debt | ||
Variable rate (as a percent) | 1.85% | |
LIBOR | Note payable at three-month LIBOR plus a margin ranging from 1.85% to 2.50% at March 31, 2021, maturing in July 2022, secured by engines | Maximum | ||
Long Term Debt | ||
Variable rate (as a percent) | 2.50% |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Principal Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 | $ 40,560 | |
2022 | 57,341 | |
2023 | 52,469 | |
2024 | 868,636 | |
2025 | 50,401 | |
Thereafter | 672,862 | |
Total | $ 1,742,269 | $ 1,712,886 |
Derivative Instruments - Additi
Derivative Instruments - Additional information (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)agreement | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Interest rate contract | |||
Derivative [Line Items] | |||
Borrowings at variable interest rates | $ 822,800,000 | $ 783,100,000 | |
Number of interest rate swap agreements | agreement | 6 | ||
Number of interest rate swaps entered into | agreement | 4 | ||
Derivative, notional amount | $ 100,000,000 | ||
Net fair value of swap liability | 2,500,000 | $ (4,000,000) | |
Fair value of interest rate swap, asset | 4,900,000 | ||
Fair value of interest rate swap, liability | 2,300,000 | ||
Interest expense for derivative instruments | $ 900,000 | $ 36,000 | |
2021 Swap Agreements, Group 1 | |||
Derivative [Line Items] | |||
Number of interest rate swap agreements | agreement | 2 | ||
Remaining maturity term | 34 months | ||
2021 Swap Agreements, Group 2 | |||
Derivative [Line Items] | |||
Number of interest rate swap agreements | agreement | 2 | ||
Remaining maturity term | 58 months | ||
2019 Swap Ageement | |||
Derivative [Line Items] | |||
Number of interest rate swap agreements | agreement | 1 | ||
Derivative, notional amount | $ 100,000,000 | ||
Remaining maturity term | 39 months | ||
2016 Swap Agreement | |||
Derivative [Line Items] | |||
Number of interest rate swap agreements | agreement | 1 | ||
Derivative, notional amount | $ 100,000,000 | ||
Remaining maturity term | 1 month |
Derivative Instruments - Cash f
Derivative Instruments - Cash flow hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Effects of derivative instruments | ||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 6,497 | $ (3,318) |
Interest rate contracts | ||
Effects of derivative instruments | ||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 6,497 | $ (3,318) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax (benefit) expense | $ (359) | $ 4,245 |
Effective tax rate (as a percent) | 21.20% | 49.80% |
Employment Retention Credit recognized, CARES Act | $ 700 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)airframeequipment | Mar. 31, 2020USD ($)engine | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | |||
Fair value of notes receivable | $ 201,300,000 | $ 159,200,000 | |
Fair value of notes payable | 1,757,100,000 | 1,691,000,000 | |
Increase in interest expense | 900,000 | $ 36,000 | |
Asset write-down | $ 1,900,000 | $ 2,100,000 | |
Number of assets impaired | 1 | 3 | |
Remaining book value | $ 44,600,000 | ||
Number of assets previously impaired | equipment | 22 | ||
Interest rate contract | |||
Derivative [Line Items] | |||
Net fair value of swap liability | $ 2,500,000 | $ (4,000,000) | |
Fair value of interest rate swap, asset | 4,900,000 | ||
Fair value of interest rate swap, liability | $ 2,300,000 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Equipment held for lease | $ 1,867 | $ 2,059 |
Equipment held for sale | 0 | 70 |
Total | $ 1,867 | $ 2,129 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Shares not included in computation of diluted weighted average earnings per common (in shares) | 0 | 0 |
Net (loss) income attributable to common shareholders | $ (2,154) | $ 3,455 |
Basic weighted average common shares outstanding (in shares) | 5,995,000 | 5,860,000 |
Potentially dilutive common shares (in shares) | 0 | 264,000 |
Diluted weighted average common shares outstanding (in shares) | 5,995,000 | 6,124,000 |
Basic weighted average (loss) earnings per common share (in dollars per share) | $ (0.36) | $ 0.59 |
Diluted weighted average (loss) earnings per common share (in dollars per share) | $ (0.36) | $ 0.56 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Repurchase of common stock authorized by Board of Directors | $ 60,000,000 | ||
Dividend rate (as a percent) | 6.50% | ||
Preferred stock dividends paid | $ 800,000 | $ 800,000 | |
Common Stock | |||
Class of Stock [Line Items] | |||
Common stock repurchased (in shares) | 0 | 0 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Stock compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock-based compensation plans | ||
Stock compensation expense | $ 2,762 | $ 2,117 |
Employee Stock Purchase Plan | ||
Stock-based compensation plans | ||
Stock compensation expense | 78 | 32 |
2007 Stock Incentive Plan | ||
Stock-based compensation plans | ||
Stock compensation expense | 685 | 1,025 |
2018 Stock Incentive Plan | ||
Stock-based compensation plans | ||
Stock compensation expense | $ 1,999 | $ 1,060 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Apr. 01, 2018 | |
Employee Stock Purchase Plan | |||
Stock-based compensation plans | |||
Number of shares authorized (in shares) | 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 | $ 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) | 8,307 | 3,892 | |
2007 Stock Incentive Plan | Restricted Stock | |||
Stock-based compensation plans | |||
Number of shares authorized (in shares) | 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 | 4 years | ||
2018 Stock Incentive Plan | Restricted Stock | |||
Stock-based compensation plans | |||
Number of shares authorized (in shares) | 800,000 | ||
Shares granted to date (in shares) | 598,750 | ||
Number of shares available for future issuance (in shares) | 295,846 | ||
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 | 4 years |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Restricted stock activity (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2021shares | |
Number Outstanding | |
Balance at the beginning of the period (in shares) | 581,715 |
Shares granted (in shares) | 0 |
Shares forfeited (in shares) | 0 |
Shares vested (in shares) | (4,333) |
Balance at the end of the period (in shares) | 577,382 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021USD ($)segment. | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | ||
Reportable Segments | ||||
Number of reportable segments | segment. | 2 | |||
Number of operating segments | segment. | 2 | |||
Revenue: | ||||
Lease rent revenue | $ 46,395 | |||
Gain on sale of leased equipment | $ 0 | 2,067 | ||
Total revenue | 61,125 | 81,609 | ||
Expenses: | ||||
Depreciation and amortization expense | 24,141 | 23,390 | ||
Cost of spare parts and equipment sales | 3,809 | 6,688 | ||
Write-down of equipment | 1,867 | 2,129 | ||
General and administrative | 16,151 | 19,567 | ||
Technical expense | 1,310 | 1,127 | ||
Interest expense | 15,019 | 15,696 | ||
Loss on debt extinguishment | 0 | 4,688 | ||
Total net finance costs | 15,019 | 20,384 | ||
Total expenses | 62,297 | 73,285 | ||
(Loss) earnings from operations | (1,172) | 8,324 | ||
Total assets | [1] | 2,409,674 | $ 2,364,948 | |
Operating Segments | Leasing and Related Operations | ||||
Revenue: | ||||
Lease rent revenue | 46,395 | |||
Gain on sale of leased equipment | 2,067 | |||
Total revenue | 56,623 | 73,724 | ||
Expenses: | ||||
Depreciation and amortization expense | 24,112 | 23,375 | ||
Cost of spare parts and equipment sales | 6 | 148 | ||
Write-down of equipment | 1,867 | 2,129 | ||
General and administrative | 15,557 | 18,542 | ||
Technical expense | 1,310 | 1,127 | ||
Interest expense | 15,019 | 15,696 | ||
Loss on debt extinguishment | 4,688 | |||
Total net finance costs | 15,019 | 20,384 | ||
Total expenses | 57,871 | 65,705 | ||
(Loss) earnings from operations | (1,248) | 8,019 | ||
Total assets | 2,358,186 | 2,312,172 | ||
Operating Segments | Spare Parts Sales | ||||
Revenue: | ||||
Lease rent revenue | 0 | |||
Gain on sale of leased equipment | 0 | |||
Total revenue | 4,647 | 8,119 | ||
Expenses: | ||||
Depreciation and amortization expense | 29 | 15 | ||
Cost of spare parts and equipment sales | 3,817 | 6,540 | ||
Write-down of equipment | 0 | 0 | ||
General and administrative | 484 | 1,025 | ||
Technical expense | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Loss on debt extinguishment | 0 | |||
Total net finance costs | 0 | 0 | ||
Total expenses | 4,330 | 7,580 | ||
(Loss) earnings from operations | 317 | 539 | ||
Total assets | 51,488 | 52,776 | ||
Eliminations | ||||
Revenue: | ||||
Lease rent revenue | 0 | |||
Gain on sale of leased equipment | 0 | |||
Total revenue | (145) | (234) | ||
Expenses: | ||||
Depreciation and amortization expense | 0 | 0 | ||
Cost of spare parts and equipment sales | (14) | 0 | ||
Write-down of equipment | 0 | 0 | ||
General and administrative | 110 | 0 | ||
Technical expense | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Loss on debt extinguishment | 0 | |||
Total net finance costs | 0 | 0 | ||
Total expenses | 96 | 0 | ||
(Loss) earnings from operations | (241) | (234) | ||
Total assets | 0 | $ 0 | ||
Lease rent revenue | ||||
Revenue: | ||||
Lease rent revenue | 31,520 | 46,395 | ||
Lease rent revenue | Operating Segments | Leasing and Related Operations | ||||
Revenue: | ||||
Lease rent revenue | 31,520 | 46,395 | ||
Lease rent revenue | Operating Segments | Spare Parts Sales | ||||
Revenue: | ||||
Lease rent revenue | 0 | 0 | ||
Lease rent revenue | Eliminations | ||||
Revenue: | ||||
Lease rent revenue | 0 | 0 | ||
Maintenance reserve revenue | ||||
Revenue: | ||||
Lease rent revenue | 19,812 | 20,528 | ||
Maintenance reserve revenue | Operating Segments | Leasing and Related Operations | ||||
Revenue: | ||||
Lease rent revenue | 19,812 | 20,528 | ||
Maintenance reserve revenue | Operating Segments | Spare Parts Sales | ||||
Revenue: | ||||
Lease rent revenue | 0 | 0 | ||
Maintenance reserve revenue | Eliminations | ||||
Revenue: | ||||
Lease rent revenue | 0 | 0 | ||
Spare parts and equipment sales | ||||
Revenue: | ||||
Maintenance reserve revenue | 4,566 | 9,105 | ||
Spare parts and equipment sales | Operating Segments | Leasing and Related Operations | ||||
Revenue: | ||||
Maintenance reserve revenue | 85 | 1,225 | ||
Spare parts and equipment sales | Operating Segments | Spare Parts Sales | ||||
Revenue: | ||||
Maintenance reserve revenue | 4,591 | 7,880 | ||
Spare parts and equipment sales | Eliminations | ||||
Revenue: | ||||
Maintenance reserve revenue | (110) | 0 | ||
Other revenue | ||||
Revenue: | ||||
Maintenance reserve revenue | 5,227 | 3,514 | ||
Other revenue | Operating Segments | Leasing and Related Operations | ||||
Revenue: | ||||
Maintenance reserve revenue | 5,206 | 3,509 | ||
Other revenue | Operating Segments | Spare Parts Sales | ||||
Revenue: | ||||
Maintenance reserve revenue | 56 | 239 | ||
Other revenue | Eliminations | ||||
Revenue: | ||||
Maintenance reserve revenue | $ (35) | $ (234) | ||
[1] | Total assets at March 31, 2021 and December 31, 2020, respectively, include the following assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the VIEs: Restricted cash $33,763 and $35,262; Equipment $1,025,492 and $1,037,684; Maintenance Rights $767 and $767; Inventory $5,437 and $5,437; Notes receivable $26,220 and $26,392; and Other assets $604 and $558, respectively. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Chief Executive Officer | ||
Related Party Transaction [Line Items] | ||
Daily lease payment made to related party | $ 750 | |
Aggregate lease payment made to related party | 12,000 | |
WMES | Other Income | Asset Management | ||
Related Party Transaction [Line Items] | ||
Maintenance reserve revenue | $ 300,000 | $ 500,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Apr. 30, 2021 - Subsequent Event $ in Millions | USD ($) | debtSeries | engine | airframe |
Subsequent Event [Line Items] | ||||
Number of debt series issued | debtSeries | 3 | |||
WEST VI | ||||
Subsequent Event [Line Items] | ||||
Number of assets used to secure debt | 29 | 1 | ||
WEST VI | WEST VI Notes | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, face amount | $ 336.7 | |||
WEST VI | WEST VI Series A Notes | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, face amount | 278.6 | |||
WEST VI | WEST VI Series B Notes | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, face amount | 38.7 | |||
WEST VI | WEST VI Series C Notes | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, face amount | $ 19.4 |