8.	Variable Interest Entities and Equity Method Investment

Variable Interest Entities

As of July 31, 2019 and 2018, the Company consolidated one majority owned subsidiary that was deemed to be a VIE. The financial position of this VIE as of July 31, 2019 and 2018 is summarized in the following table.

	July 31, 2019			July 31, 2018
	(in thousands)

Current assets	$	3,549		$	2,359
Noncurrent assets		781			878
Total assets	$	4,330		$	3,237

Current liabilities	$	5,728		$	5,408
Noncurrent liabilities		12			32
Total liabilities		5,740			5,440
Total Ecology and Environment Inc. shareholder’s equity		(708	)		(1,051	)
Noncontrolling interests shareholders’ equity		(702	)		(1,152	)
Total shareholders’ equity		(1,410	)		(2,203	)
Total liabilities and shareholders’ equity	$	4,330		$	3,237

Total gross revenue of the consolidated VIE was $12.1 million, $10.0 million and $8.9 million for the fiscal years ended July 31, 2019, 2018 and 2017, respectively. With the exception of restricted cash of $0.3 million included in noncurrent assets at July 31, 2019 and 2018 (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 $1.7 million and $2.1 million at July 31, 2019 and 2018, respectively. The Company’s ownership percentage was 52.48% and 55.10% at July 31, 2019 and 2018. 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 in GAC is summarized in the following table.

	Fiscal Year Ended July 31,
	2019			2018		2017
	(in thousands)

Equity investment carrying value at beginning of period	$	2,058		$	1,463	$	1,944
GAC net income attributable to EEI		346			595		368
EEI’s portion of other comprehensive loss recorded by GAC		(414	)		---		---
Gain on dilution of investment in GAC		17			---		---
EEI’s portion of dividends declared by GAC		(349	)		---		(849	)
Equity investment carrying value at end of period	$	1,658		$	2,058	$	1,463

GAC’s financial position is summarized in the following table.

	July 31, 2019		July 31, 2018
	(in thousands)

Current assets	$	5,671	$	5,713
Noncurrent assets		1,215		501
Total assets	$	6,886	$	6,214

Current liabilities	$	3,232	$	2,620
Noncurrent liabilities		847		593
Total liabilities		4,079		3,213
Total Ecology and Environment Inc. shareholder’s equity		1,806		1,678
Noncontrolling interest in shareholders’ equity		1,001		1,323
Total shareholders’ equity		2,807		3,001
Total liabilities and shareholders’ equity	$	6,886	$	6,214

GAC’s results of operations are summarized in the following table.

	Fiscal Year Ended July 31,
	2019			2018			2017
	(in thousands)

Gross revenue	$	12,912		$	11,987		$	7,737
Direct cost of services and subcontract costs	(8,353		)	(7,286		)	(4,633		)
Income from operations		924			1,381			568
Net income		637			1,079			668
Net income attributable to EEI		346			595			368