Variable Interest Entities and Equity Method Investment (Tables)

3 Months Ended

Oct. 27, 2018

Variable Interest Entities and Equity Method Investment [Abstract]

Financial Position of Variable Interest Entity

As of October 27, 2018 and July 31, 2018, the Company consolidated one majority owned subsidiary that was deemed to be a VIE. The financial position of this VIE as of October 27, 2018 and July 31, 2018 is summarized in the following table.

	October 27, 2018			July 31, 2018
	(in thousands)

Current assets	$	2,580		$	2,359
Noncurrent assets		682			878
Total assets	$	3,262		$	3,237

Current liabilities	$	5,279		$	5,408
Noncurrent liabilities		27			32
Total liabilities		5,306			5,440
Total Ecology and Environment Inc. shareholder’s equity		(937	)		(1,051	)
Noncontrolling interests shareholders’ equity		(1,107	)		(1,152	)
Total shareholders’ equity		(2,044	)		(2,203	)
Total liabilities and shareholders’ equity	$	3,262		$	3,237

Activity Recorded for Equity Method Investment

Activity recorded for the Company’s equity method investment during the three months ended October 27, 2018 and October 28, 2017 is summarized in the following table.

	Three Months Ended
	October 27, 2018			October 28, 2017 (Restated)
	(in thousands)
Equity investment carrying value at beginning of period		$	2,058	$	1,464
GAC net income attributable to EEI			60		18
Equity investment carrying value at end of period		$	2,118	$	1,482

GAC’s financial position as of October 27, 2018 and July 31, 2018 is summarized in the following table.

	October 27, 2018		July 31, 2018
	(in thousands)

Current assets	$	5,469	$	5,713
Noncurrent assets		348		501
Total assets	$	5,817	$	6,214

Current liabilities	$	2,113	$	2,620
Noncurrent liabilities		928		593
Total liabilities		3,041		3,213
Total Ecology and Environment Inc. shareholder’s equity		1,658		1,678
Noncontrolling interests shareholders’ equity		1,118		1,323
Total shareholders’ equity		2,776		3,001
Total liabilities and shareholders’ equity	$	5,817	$	6,214

The results of GAC’s operations for the three months ended October 27, 2018 and October 28, 2017 are summarized in the following table.

	Three Months Ended
	October 27, 2018		October 28, 2017
	(in thousands)

Gross revenue	$	2,852	$	2,113
Direct cost of services and subcontract costs		1,974		1,321
Income from operations		157		54
Net income		109		33
Net income attributable to EEI		60		18

- 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.

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