casc willis owned a lease portfolio of four engines with a net book value of $ 50.1 million as of december 31 , 2020. our investment in the joint venture was $ 15.9 million as of december 31 , 2020. we actively manage our portfolio and structure our leases to maximize the residual values of our leased assets . our leasing business focuses on popular stage iv commercial jet engines manufactured by cfmi , general electric , pratt & whitney , rolls royce and international aero engines . these engines are the most widely used engines in the world , powering airbus , boeing , bombardier and embraer aircraft . covid-19 impact . throughout the next year , we plan to continue to stay focused on cost control and remain prudent with our capital expenditures . we have temporarily closed our headquarters and other offices , required our employees and contractors to predominately work remotely , and implemented travel restrictions , all of which represent a significant disruption in how we operate our business . we have taken various proactive actions in an attempt to mitigate the financial impact of the covid-19 pandemic . additionally , during 2020 , 9 % of our employees have been either furloughed , or subject to a form of reduced compensation . the operations of our 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 can not 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 that has resulted in a dramatic reduction in demand for air travel domestically and abroad , which is likely to continue for the foreseeable future . in addition , dramatically lower demand for air travel in turn presents significant risks to our company , not all of which we are able to fully evaluate or even to foresee at the current time , and could negatively impact collections of accounts receivable , cause our lessee customers to not enter into new leases , reduce spending from new and existing customers for leases or spare parts or equipment , lower usage fees , cause some of our customers to go out of business , and limit the ability of our personnel to travel to customers and potential customers , all of which could adversely affect our business , results of operations , and financial condition . due to the impact of recent events , including challenges from declines in market conditions , we have performed quarterly interim impairment analysis during 2020. the results of the analysis indicated $ 0.5 million additional impairment during 2020 for two engines having net book values in excess of their respective fair value . during 2020 , we 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 periods . additionally , as of december 31 , 2020 , we have , in certain situations , agreed to rent concessions which resulted in a total reduction to rent revenues of $ 6.5 million . the covid-19 pandemic has materially affected our business and financial results for the year ended december 31 , 2020 and may continue to do so indefinitely thereafter . the scope and nature of the impact of covid-19 on the airline industry , and in turn our business , continue to evolve and the outcomes are uncertain . given the uncertainty in the rapidly changing market and economic conditions related to covid-19 , we will continue to evaluate the nature and extent of the impact to our business and financial position . the ultimate extent of the effects of the covid-19 pandemic on our company will depend on future developments , and such effects could exist for an extended period of time . critical accounting policies and estimates the preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates , including those related to residual values , estimated asset lives , impairments and bad debts . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies , grouped by our activities , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : leasing related activities . revenue from leasing of aircraft equipment is recognized as operating lease revenue on a straight-line basis over the terms of the applicable lease agreements . where collection can not be reasonably assured , for example , upon a lessee bankruptcy , we do not recognize revenue until cash is received . we also estimate and charge to income a provision for bad debts based on our experience in the business and with each specific customer and the level of past due accounts . the financial condition of our customers may deteriorate and result in actual losses exceeding the estimated allowances . in addition , any deterioration in the financial condition of our customers may adversely affect future lease revenues . story_separator_special_tag in october 2020 , the company entered into a limited waiver ( the “ waiver ” ) to its fourth amended and restated credit agreement . the waiver provides for the partial exclusion for specified periods of certain asset book values in the calculation of customer concentration limits , as such limits are defined in the amended credit agreement . in february 2019 , the company entered into an $ 8.1 million loan with a financial institution with a maturity date of july 2022. interest is payable at three-month libor plus a margin ranging from 1.85 % to 2.50 % and principal and interest are paid quarterly . the loan is secured by two engines . virtually all of the above debt requires our ongoing compliance with the covenants of each financing , including debt/equity ratios , minimum tangible net worth and minimum interest coverage ratios , and other eligibility criteria including customer and geographic concentration restrictions . under our revolving credit facility , we can typically borrow up to 85 % of an engine 's net book value and 65 % of spare part 's net book value . therefore we must have other available funds for the balance of the purchase price of any new equipment to be purchased or we will not be permitted to draw on our revolver . the facilities are also cross-defaulted against other facilities . if we do not comply with the covenants or eligibility requirements , we may not be permitted to borrow additional funds and accelerated payments may become necessary . additionally , much of the above debt is secured by engines and aircraft to the extent that engines or aircraft are sold , repayment of that portion of the debt could be required . at december 31 , 2020 , we were in compliance with the covenants specified in the revolving credit facility , including the interest coverage ratio requirement of at least 2.25 to 1.00 , and the total leverage ratio requirement to remain below 4.50 to 1.00. the interest coverage ratio , as defined in the credit facility , is the ratio of earnings before interest , taxes , depreciation and amortization ( ebitda ) and other one-time charges to consolidated interest expense . the total leverage ratio , as defined in the credit facility , is the ratio of total indebtedness to tangible net worth . at december 31 , 2020 , we were in compliance with the covenants specified in the west iii , west iv and west v indentures , servicing and other debt related agreements . off-balance sheet arrangements as of december 31 , 2020 , we had no material off-balance sheet arrangements or obligations that have or are reasonably likely to have a current or future effect on our financial condition , change in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures , or capital resources that are material to investors . contractual obligation and commitments repayments of our gross debt obligations primarily consist of scheduled installments due under term loans and are funded by the use of unrestricted cash reserves and from cash flows from ongoing operations . the table below summarizes our contractual commitments at december 31 , 2020 : replace_table_token_3_th from time to time we enter into contractual commitments to purchase engines directly from original equipment manufacturers . as of the date of this report we have purchased three new leap-1b engines and are currently committed to purchasing 17 additional new leap-1b engines . our purchase agreements generally contain terms that allow the company to defer or cancel purchase commitments in certain situations . these deferrals or conversions would not result in penalties or increased costs other than any potential increase due to the normal year-over-year change in engine list prices , which is akin to ordinary inflation . the company continues to expect demand for leap-1b engines to increase as the 737 max is re-certified and aircraft ( and their installed engines ) that have been parked and in storage for more than one year begin the technical process of returning to service . 30 in december 2020 , we entered into definitive agreements for the purchase of 25 modern technology aircraft engines . as part of the purchase , we have committed to certain future overhaul and maintenance services which are anticipated to range between $ 67.1 million and $ 112.0 million . we have estimated the interest payments due under debt obligations by applying the interest rates applicable at december 31 , 2020 to the remaining debt , adjusted for the estimated debt repayments identified in the table above . actual interest payments made will vary due to actual changes in the rates for one-month and three-month libor . we believe our equity base , internally generated funds and existing debt facilities are sufficient to maintain our level of operations through 2021. a decline in the level of internally generated funds could result if the amount of equipment off-lease increases , there is a decrease in availability under our existing debt facilities , or there is a significant step-up in borrowing costs . such decline would impair our ability to sustain our level of operations . we continue to discuss additions to our capital base with our commercial and investment banks . if we are not able to access additional capital , our ability to continue to grow our asset base consistent with historical trends will be impaired and our future growth limited to that which can be funded from internally generated capital . management of interest rate exposure at december 31 , 2020 , $ 783.1 million of our borrowings were on a variable rate basis at various interest rates tied to one-month and three-month libor . our equipment leases are generally structured at fixed rental rates for specified terms . increases in interest rates could narrow or result in a negative spread between the rental revenue we realize

cash flows discussion cash flows provided by operating activities were $ 93.4 million and $ 230.3 million in the years ended december 31 , 2020 and 2019 , respectively . 28 cash flows from operations are driven significantly by payments made under our lease agreements , which comprise lease revenue , security deposits and maintenance reserves , and are offset by interest expense and general and administrative costs . cash received as maintenance reserve payments for some of our engines on lease are partially restricted by our debt arrangements . the lease revenue stream , in the short-term , is at fixed rates while a portion of our debt is at variable rates . if interest rates increase , it is unlikely we could increase lease rates in the short term and this would cause a reduction in our earnings and operating cash flows . revenue and maintenance reserves are also affected by the amount of equipment off lease . approximately 78 % and 86 % , by book value , of our assets were on-lease as of december 31 , 2020 and 2019 , respectively . the average utilization rate for the year ended december 31 , 2020 and 2019 was approximately 84 % and 88 % , respectively . if there is an increase in off-lease rates or deterioration in lease rates that are not offset by reductions in interest rates , there will be a negative impact on earnings and cash flows from operations . distributions received from our investment in wmes were $ 7.2 million and $ 3.3 million in the years ended december 31 , 2020 and 2019 , respectively .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows discussion cash flows provided by operating activities were $ 93.4 million and $ 230.3 million in the years ended december 31 , 2020 and 2019 , respectively . 28 cash flows from operations are driven significantly by payments made under our lease agreements , which comprise lease revenue , security deposits and maintenance reserves , and are offset by interest expense and general and administrative costs . cash received as maintenance reserve payments for some of our engines on lease are partially restricted by our debt arrangements . the lease revenue stream , in the short-term , is at fixed rates while a portion of our debt is at variable rates . if interest rates increase , it is unlikely we could increase lease rates in the short term and this would cause a reduction in our earnings and operating cash flows . revenue and maintenance reserves are also affected by the amount of equipment off lease . approximately 78 % and 86 % , by book value , of our assets were on-lease as of december 31 , 2020 and 2019 , respectively . the average utilization rate for the year ended december 31 , 2020 and 2019 was approximately 84 % and 88 % , respectively . if there is an increase in off-lease rates or deterioration in lease rates that are not offset by reductions in interest rates , there will be a negative impact on earnings and cash flows from operations . distributions received from our investment in wmes were $ 7.2 million and $ 3.3 million in the years ended december 31 , 2020 and 2019 , respectively .
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 Suspicious Activity Report : casc willis owned a lease portfolio of four engines with a net book value of $ 50.1 million as of december 31 , 2020. our investment in the joint venture was $ 15.9 million as of december 31 , 2020. we actively manage our portfolio and structure our leases to maximize the residual values of our leased assets . our leasing business focuses on popular stage iv commercial jet engines manufactured by cfmi , general electric , pratt & whitney , rolls royce and international aero engines . these engines are the most widely used engines in the world , powering airbus , boeing , bombardier and embraer aircraft . covid-19 impact . throughout the next year , we plan to continue to stay focused on cost control and remain prudent with our capital expenditures . we have temporarily closed our headquarters and other offices , required our employees and contractors to predominately work remotely , and implemented travel restrictions , all of which represent a significant disruption in how we operate our business . we have taken various proactive actions in an attempt to mitigate the financial impact of the covid-19 pandemic . additionally , during 2020 , 9 % of our employees have been either furloughed , or subject to a form of reduced compensation . the operations of our 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 can not 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 that has resulted in a dramatic reduction in demand for air travel domestically and abroad , which is likely to continue for the foreseeable future . in addition , dramatically lower demand for air travel in turn presents significant risks to our company , not all of which we are able to fully evaluate or even to foresee at the current time , and could negatively impact collections of accounts receivable , cause our lessee customers to not enter into new leases , reduce spending from new and existing customers for leases or spare parts or equipment , lower usage fees , cause some of our customers to go out of business , and limit the ability of our personnel to travel to customers and potential customers , all of which could adversely affect our business , results of operations , and financial condition . due to the impact of recent events , including challenges from declines in market conditions , we have performed quarterly interim impairment analysis during 2020. the results of the analysis indicated $ 0.5 million additional impairment during 2020 for two engines having net book values in excess of their respective fair value . during 2020 , we 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 periods . additionally , as of december 31 , 2020 , we have , in certain situations , agreed to rent concessions which resulted in a total reduction to rent revenues of $ 6.5 million . the covid-19 pandemic has materially affected our business and financial results for the year ended december 31 , 2020 and may continue to do so indefinitely thereafter . the scope and nature of the impact of covid-19 on the airline industry , and in turn our business , continue to evolve and the outcomes are uncertain . given the uncertainty in the rapidly changing market and economic conditions related to covid-19 , we will continue to evaluate the nature and extent of the impact to our business and financial position . the ultimate extent of the effects of the covid-19 pandemic on our company will depend on future developments , and such effects could exist for an extended period of time . critical accounting policies and estimates the preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates , including those related to residual values , estimated asset lives , impairments and bad debts . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies , grouped by our activities , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : leasing related activities . revenue from leasing of aircraft equipment is recognized as operating lease revenue on a straight-line basis over the terms of the applicable lease agreements . where collection can not be reasonably assured , for example , upon a lessee bankruptcy , we do not recognize revenue until cash is received . we also estimate and charge to income a provision for bad debts based on our experience in the business and with each specific customer and the level of past due accounts . the financial condition of our customers may deteriorate and result in actual losses exceeding the estimated allowances . in addition , any deterioration in the financial condition of our customers may adversely affect future lease revenues . story_separator_special_tag in october 2020 , the company entered into a limited waiver ( the “ waiver ” ) to its fourth amended and restated credit agreement . the waiver provides for the partial exclusion for specified periods of certain asset book values in the calculation of customer concentration limits , as such limits are defined in the amended credit agreement . in february 2019 , the company entered into an $ 8.1 million loan with a financial institution with a maturity date of july 2022. interest is payable at three-month libor plus a margin ranging from 1.85 % to 2.50 % and principal and interest are paid quarterly . the loan is secured by two engines . virtually all of the above debt requires our ongoing compliance with the covenants of each financing , including debt/equity ratios , minimum tangible net worth and minimum interest coverage ratios , and other eligibility criteria including customer and geographic concentration restrictions . under our revolving credit facility , we can typically borrow up to 85 % of an engine 's net book value and 65 % of spare part 's net book value . therefore we must have other available funds for the balance of the purchase price of any new equipment to be purchased or we will not be permitted to draw on our revolver . the facilities are also cross-defaulted against other facilities . if we do not comply with the covenants or eligibility requirements , we may not be permitted to borrow additional funds and accelerated payments may become necessary . additionally , much of the above debt is secured by engines and aircraft to the extent that engines or aircraft are sold , repayment of that portion of the debt could be required . at december 31 , 2020 , we were in compliance with the covenants specified in the revolving credit facility , including the interest coverage ratio requirement of at least 2.25 to 1.00 , and the total leverage ratio requirement to remain below 4.50 to 1.00. the interest coverage ratio , as defined in the credit facility , is the ratio of earnings before interest , taxes , depreciation and amortization ( ebitda ) and other one-time charges to consolidated interest expense . the total leverage ratio , as defined in the credit facility , is the ratio of total indebtedness to tangible net worth . at december 31 , 2020 , we were in compliance with the covenants specified in the west iii , west iv and west v indentures , servicing and other debt related agreements . off-balance sheet arrangements as of december 31 , 2020 , we had no material off-balance sheet arrangements or obligations that have or are reasonably likely to have a current or future effect on our financial condition , change in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures , or capital resources that are material to investors . contractual obligation and commitments repayments of our gross debt obligations primarily consist of scheduled installments due under term loans and are funded by the use of unrestricted cash reserves and from cash flows from ongoing operations . the table below summarizes our contractual commitments at december 31 , 2020 : replace_table_token_3_th from time to time we enter into contractual commitments to purchase engines directly from original equipment manufacturers . as of the date of this report we have purchased three new leap-1b engines and are currently committed to purchasing 17 additional new leap-1b engines . our purchase agreements generally contain terms that allow the company to defer or cancel purchase commitments in certain situations . these deferrals or conversions would not result in penalties or increased costs other than any potential increase due to the normal year-over-year change in engine list prices , which is akin to ordinary inflation . the company continues to expect demand for leap-1b engines to increase as the 737 max is re-certified and aircraft ( and their installed engines ) that have been parked and in storage for more than one year begin the technical process of returning to service . 30 in december 2020 , we entered into definitive agreements for the purchase of 25 modern technology aircraft engines . as part of the purchase , we have committed to certain future overhaul and maintenance services which are anticipated to range between $ 67.1 million and $ 112.0 million . we have estimated the interest payments due under debt obligations by applying the interest rates applicable at december 31 , 2020 to the remaining debt , adjusted for the estimated debt repayments identified in the table above . actual interest payments made will vary due to actual changes in the rates for one-month and three-month libor . we believe our equity base , internally generated funds and existing debt facilities are sufficient to maintain our level of operations through 2021. a decline in the level of internally generated funds could result if the amount of equipment off-lease increases , there is a decrease in availability under our existing debt facilities , or there is a significant step-up in borrowing costs . such decline would impair our ability to sustain our level of operations . we continue to discuss additions to our capital base with our commercial and investment banks . if we are not able to access additional capital , our ability to continue to grow our asset base consistent with historical trends will be impaired and our future growth limited to that which can be funded from internally generated capital . management of interest rate exposure at december 31 , 2020 , $ 783.1 million of our borrowings were on a variable rate basis at various interest rates tied to one-month and three-month libor . our equipment leases are generally structured at fixed rental rates for specified terms . increases in interest rates could narrow or result in a negative spread between the rental revenue we realize

