8.	Variable Interest Entities and Equity Method Investment

Variable Interest Entities

As of July 31, 2018 and 2017, the Company’s consolidated one majority owned subsidiary that was deemed to be a VIE. The financial position of this VIE as of July 31, 2018 and 2017 is summarized in the following table.

	July 31, 2018			July 31, 2017
	(in thousands)

Current assets	$	2,359		$	3,217
Noncurrent assets		878			483
Total assets	$	3,237		$	3,700

Current liabilities	$	5,408		$	6,193
Noncurrent liabilities		32			36
Total liabilities		5,440			6,229
Total Ecology and Environment Inc. shareholder’s equity		(1,051	)		(1,321	)
Noncontrolling interests shareholders’ equity		(1,152	)		(1,208	)
Total shareholders’ equity		(2,203	)		(2,529	)
Total liabilities and shareholders’ equity	$	3,237		$	3,700

Total gross revenue of the consolidated VIE was $10.0 million, $8.9 million and $5.0 million for the fiscal years ended July 31, 2018, 2017 and 2016, respectively. With the exception of restricted cash of $0.3 million included in noncurrent assets at July 31, 2018 and 2017 (refer to Note 5), all assets of the VIE were available for the general operations of the VIE.

Equity Method Investment

The Company’s equity method investment in GAC had a carrying value of $2.1 million and $1.5 million at July 31, 2018 and 2017, respectively. The Company’s ownership percentage was 55.1% at both dates. The equity method investment in GAC is included within the Company’s South American operating segment.

Activity recorded for the Company’s equity method investment during the fiscal years ended July 31, 2018, 2017 and 2016 is summarized in the following table.

	Fiscal Year Ended July 31,
	2018		2017 (Restated)			2016 (Restated)
	(in thousands)

Equity investment carrying value at beginning of period	$	1,463	$	1,944		$	1,793
GAC net income attributable to EEI		595		368			363
EEI’s portion of dividends declared by GAC		---		(849	)		(212	)
Equity investment carrying value at end of period	$	2,058	$	1,463		$	1,944

GAC’s financial position as of July 31, 2018 and 2017 is summarized in the following table.

	July 31, 2018		July 31, 2017
	(in thousands)

Current assets	$	5,713	$	4,383
Noncurrent assets		501		167
Total assets	$	6,214	$	4,550

Current liabilities	$	2,620	$	2,643
Noncurrent liabilities		593		10
Total liabilities		3,213		2,653
Total Ecology and Environment Inc. shareholder’s equity		1,678		1,175
Noncontrolling interests shareholders’ equity		1,323		722
Total shareholders’ equity		3,001		1,897
Total liabilities and shareholders’ equity	$	6,214	$	4,550

The results of GAC’s operations for fiscal years 2018, 2017 and 2016 are summarized in the following table.

	Fiscal Year Ended July 31,
	2018			2017			2016
	(in thousands)

Gross revenue	$	11,987		$	7,737		$	7,530
Direct cost of services and subcontract costs		(7,286	)		(4,633	)		(4,632	)
Income from operations		1,381			568			727
Net income		1,079			668			659
Net income attributable to EEI		595			368			363