Variable Interest Entities and Equity Method Investment (Tables)

12 Months Ended

Jul. 31, 2018

Variable Interest Entities and Equity Method Investment [Abstract]

Financial Position of Variable Interest Entity

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

Activity Recorded for Equity Method Investment

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

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details