Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2016 | Sep. 30, 2016 | Jan. 31, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | ECOLOGY & ENVIRONMENT INC | ||
Entity Central Index Key | 809,933 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 28,872,825 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2016 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,000,956 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,293,146 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 10,062 | $ 8,703 |
Investment securities available for sale | 1,598 | 1,434 |
Contract receivables, net of allowance for doubtful accounts and contract adjustments of $5,929 and $5,954, respectively | 34,319 | 42,866 |
Income tax receivable | 916 | 297 |
Other current assets | 2,104 | 1,331 |
Total current assets | 48,999 | 54,631 |
Property, buildings and equipment, net of accumulated depreciation of $18,324 and $23,438, respectively | 6,094 | 7,114 |
Deferred income taxes | 2,650 | 4,812 |
Other assets | 1,769 | 1,932 |
Total assets | 59,512 | 68,489 |
Current liabilities: | ||
Accounts payable | 6,874 | 10,410 |
Lines of credit | 312 | 672 |
Accrued payroll costs | 6,590 | 8,688 |
Current portion of long-term debt and capital lease obligations | 240 | 551 |
Billings in excess of revenue | 3,297 | 2,618 |
Other accrued liabilities | 3,445 | 3,931 |
Total current liabilities | 20,758 | 26,870 |
Income taxes payable | 107 | 107 |
Deferred income taxes | 525 | 632 |
Long-term debt and capital lease obligations | 217 | 395 |
Commitments and contingencies (Note 19) | ||
Shareholders' equity: | ||
Preferred stock, par value $.01 per share (2,000,000 shares authorized; no shares issued) | 0 | 0 |
Capital in excess of par value | 16,606 | 16,575 |
Retained earnings | 22,237 | 23,246 |
Accumulated other comprehensive loss | (2,143) | (1,726) |
Treasury stock, at cost (Class A common: 39,272 and 42,245 shares; Class B common: 64,801 shares) | (1,172) | (1,224) |
Total Ecology and Environment, Inc. shareholders' equity | 35,572 | 36,915 |
Noncontrolling interests | 2,333 | 3,570 |
Total shareholders' equity | 37,905 | 40,485 |
Total liabilities and shareholders' equity | 59,512 | 68,489 |
Class A [Member] | ||
Shareholders' equity: | ||
Common stock | 30 | 30 |
Class B [Member] | ||
Shareholders' equity: | ||
Common stock | $ 14 | $ 14 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Current assets: | ||
Contract receivables, allowance for doubtful accounts and contract adjustments | $ 5,929 | $ 5,954 |
Property, building and equipment, accumulated depreciation | $ 18,324 | $ 23,438 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Class A [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Common stock, shares issued (in shares) | 3,035,778 | 3,023,206 |
Treasury stock (in shares) | 39,272 | 42,245 |
Class B [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 1,357,947 | 1,370,519 |
Treasury stock (in shares) | 64,801 | 64,801 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Consolidated Statements of Operations [Abstract] | |||
Revenue, net | $ 105,817 | $ 126,935 | $ 128,427 |
Cost of professional services and other direct operating expenses | 39,512 | 47,500 | 49,449 |
Subcontract costs | 18,550 | 23,327 | 20,829 |
Administrative and indirect operating expenses | 31,169 | 35,604 | 41,464 |
Marketing and related costs | 11,301 | 11,433 | 13,016 |
Depreciation and amortization | 1,143 | 1,467 | 4,176 |
Income (loss) from operations | 4,142 | 7,604 | (507) |
Interest income | 83 | 85 | 154 |
Interest expense | (156) | (116) | (150) |
Gain on Insurance Settlement | 358 | 0 | 0 |
Gain on sale of assets and investment securities | (135) | 186 | 13 |
Net foreign exchange gain (loss) | 44 | 134 | (25) |
Other income | 31 | 76 | 68 |
Income (loss) before income tax provision | 4,367 | 7,969 | (447) |
Income tax provision | 3,759 | 3,769 | 343 |
Net income (loss) | 608 | 4,200 | (790) |
Net loss (income) attributable to the noncontrolling interest | 278 | (804) | (593) |
Net income (loss) attributable to Ecology and Environment, Inc. | $ 886 | $ 3,396 | $ (1,383) |
Net income (loss) per common share: basic and diluted (in dollars per share) | $ 0.21 | $ 0.79 | $ (0.32) |
Weighted average common shares outstanding: basic and diluted (in shares) | 4,289,993 | 4,287,775 | 4,283,984 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | |||
Net income (loss) including noncontrolling interests | $ 608 | $ 4,200 | $ (790) |
Foreign currency translation adjustments | (557) | (2,152) | (298) |
Unrealized investment gains, net | 21 | (4) | 1 |
Comprehensive income (loss) | 72 | 2,044 | (1,087) |
Comprehensive loss (income) attributable to noncontrolling interests | 397 | (192) | (458) |
Comprehensive income (loss) attributable to Ecology and Environment, Inc. | $ 469 | $ 1,852 | $ (1,545) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 608 | $ 4,200 | $ (790) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Impairment of long-lived assets | 375 | 0 | 0 |
Impairment of goodwill | 0 | 104 | 0 |
Impairment of Investment in ECSI | 0 | 355 | 0 |
Depreciation and amortization | 1,143 | 1,467 | 4,176 |
Deferred income tax benefit | 1,697 | 1,154 | (818) |
Share based compensation expense | 37 | 59 | 353 |
Tax impact of share-based compensation | 0 | (92) | (32) |
Loss (gain) on sale of assets and investment securities | 135 | (186) | (13) |
Net provision for (recovery of) contract adjustments and doubtful accounts | (910) | (413) | 174 |
Net bad debt (recovery) expense | 453 | (326) | 90 |
Decrease (increase) in: | |||
- contract receivables | 7,394 | (934) | 1,855 |
- other current assets | (400) | (440) | 192 |
- income tax receivable | (329) | 270 | 3,247 |
- other non-current assets | 42 | 48 | 29 |
(Decrease) increase in: | |||
- accounts payable | (3,157) | 1,052 | 24 |
- accrued payroll costs | (1,909) | 1,805 | 630 |
- income taxes payable | 40 | 132 | (41) |
- billings in excess of revenue | 607 | (1,909) | (1,419) |
- other accrued liabilities | (29) | 202 | 446 |
Net cash provided by operating activities | 5,797 | 6,548 | 8,103 |
Cash flows from investing activities: | |||
Acquisition of noncontrolling interest of subsidiaries | 0 | (50) | (689) |
Proceeds from sale of subsidiary | 150 | 0 | 0 |
Purchase of property, building and equipment | (722) | (735) | (1,965) |
Proceeds from sale of property, building and equipment | 5 | 255 | 0 |
Proceeds from maturity of investments | 26 | 0 | 0 |
Purchase of investment securities | (154) | (33) | 53 |
Net cash used in investing activities | (695) | (563) | (2,601) |
Cash flows from financing activities: | |||
Dividends paid | (2,066) | (2,066) | (2,054) |
Proceeds from debt | 6 | 384 | 544 |
Repayment of debt | (547) | (753) | (710) |
Net (repayments of) borrowings under lines of credit | (380) | (870) | (4,956) |
Distributions to noncontrolling interests | (530) | (537) | (665) |
Purchase of treasury stock | 0 | 0 | (173) |
Net cash used in financing activities | (3,517) | (3,842) | (8,014) |
Effect of exchange rate changes on cash and cash equivalents | (226) | (329) | (43) |
Net increase (decrease) in cash and cash equivalents | 1,359 | 1,814 | (2,555) |
Cash and cash equivalents at beginning of period | 8,703 | 6,889 | 9,444 |
Cash and cash equivalents at end of period | 10,062 | 8,703 | 6,889 |
Cash paid (received) during the period for: | |||
Interest | 151 | 110 | 146 |
Income taxes | 2,742 | 1,542 | (2,303) |
Supplemental disclosure of non-cash items: | |||
Dividends declared and not paid | 861 | 1,033 | 1,033 |
Acquisition of noncontrolling interest of subsidiaries (loans receivable and stock) | 0 | 233 | 1,073 |
Sale of subsidiary (loans receivable) | 75 | 0 | 0 |
Proceeds from capital lease obligations | $ 69 | $ 322 | $ 43 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Class A [Member] | Common Stock [Member]Class B [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jul. 31, 2013 | $ 27 | $ 17 | $ 20,017 | $ 25,366 | $ (85) | $ (1,798) | $ 3,095 | |
Balance (in shares) at Jul. 31, 2013 | 2,685,151 | 1,708,574 | 143,911 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | $ 0 | $ 0 | 0 | (1,383) | 0 | $ 0 | 592 | $ (790) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (164) | 0 | (133) | (298) |
Cash dividends declared | 0 | 0 | 0 | (2,066) | 0 | 0 | 0 | (2,066) |
Unrealized investment gain (loss), net | 0 | 0 | 0 | 0 | 2 | 0 | 0 | 1 |
Repurchase of Class A common stock | 0 | 0 | 0 | 0 | 0 | $ (173) | 0 | |
Repurchase of Class A common stock (in shares) | 16,091 | |||||||
Issuance of stock under stock award plan | 0 | 0 | (194) | 0 | 0 | $ 194 | 0 | |
Issuance of stock under stock award plan (in shares) | (16,387) | |||||||
Share-based compensation expense | 0 | 0 | 353 | 0 | 0 | $ 0 | 0 | |
Tax impact of share based compensation | 0 | 0 | (32) | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (665) | |
Reclassification adjustment for prior period acquisitions of noncontrolling interests | 0 | 0 | (2,414) | 0 | 0 | 0 | 2,382 | |
Purchase of additional noncontrolling interests | 0 | 0 | (606) | 0 | 64 | $ 553 | (1,157) | |
Purchase of additional noncontrolling interests (in shares) | (44,260) | |||||||
Stock award plan forfeitures | 0 | 0 | 0 | 0 | 0 | $ 0 | 0 | |
Stock award plan forfeitures (in shares) | 5,999 | |||||||
Balance at Jul. 31, 2014 | $ 27 | $ 17 | 17,124 | 21,917 | (183) | $ (1,224) | 4,114 | |
Balance (in shares) at Jul. 31, 2014 | 2,685,151 | 1,708,574 | 105,354 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | $ 0 | $ 0 | 0 | 3,396 | 0 | $ 0 | 804 | 4,200 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (1,540) | 0 | (611) | (2,152) |
Cash dividends declared | 0 | 0 | 0 | (2,067) | 0 | 0 | 0 | (2,066) |
Unrealized investment gain (loss), net | 0 | 0 | 0 | 0 | (3) | 0 | 0 | (4) |
Conversion of Class B common stock to Class A common stock | $ 3 | $ (3) | 0 | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock (in shares) | 338,055 | (338,055) | ||||||
Share-based compensation expense | $ 0 | $ 0 | 59 | 0 | 0 | 0 | 0 | |
Tax impact of share based compensation | 0 | 0 | (92) | 0 | 0 | 0 | 0 | |
Tax impact of noncontrolling interests | 0 | 0 | (428) | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (537) | |
Purchase of additional noncontrolling interests | 0 | 0 | (88) | 0 | 0 | $ 0 | (200) | |
Purchase of additional noncontrolling interests (in shares) | 0 | |||||||
Stock award plan forfeitures | 0 | 0 | 0 | 0 | 0 | $ 0 | 0 | |
Stock award plan forfeitures (in shares) | 1,692 | |||||||
Balance at Jul. 31, 2015 | $ 30 | $ 14 | 16,575 | 23,246 | (1,726) | $ (1,224) | 3,570 | 40,485 |
Balance (in shares) at Jul. 31, 2015 | 3,023,206 | 1,370,519 | 107,046 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | $ 0 | $ 0 | 0 | 887 | 0 | $ 0 | (278) | 608 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (438) | 0 | (119) | (557) |
Cash dividends declared | 0 | 0 | 0 | (1,895) | 0 | 0 | 0 | (1,895) |
Unrealized investment gain (loss), net | 0 | 0 | 0 | 0 | 21 | 0 | 0 | 21 |
Conversion of Class B common stock to Class A common stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock (in shares) | 12,572 | (12,572) | ||||||
Issuance of stock under stock award plan | $ 0 | $ 0 | (6) | 0 | 0 | $ 52 | 0 | |
Issuance of stock under stock award plan (in shares) | (4,533) | |||||||
Share-based compensation expense | 0 | 0 | 37 | 0 | 0 | $ 0 | 0 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (530) | |
Sale of majority-owned subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | (310) | |
Stock award plan forfeitures | 0 | 0 | 0 | 0 | 0 | $ 0 | 0 | |
Stock award plan forfeitures (in shares) | 1,560 | |||||||
Balance at Jul. 31, 2016 | $ 30 | $ 14 | $ 16,606 | $ 22,238 | $ (2,143) | $ (1,172) | $ 2,333 | $ 37,905 |
Balance (in shares) at Jul. 31, 2016 | 3,035,778 | 1,357,947 | 104,073 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Consolidated Statements of Changes in Shareholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 0.44 | $ 0.48 | $ 0.48 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Jul. 31, 2016 | |
Organization and Basis of Presentation [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Ecology and Environment, Inc., (“EEI” or the “Parent Company”) was incorporated in 1970 as a global broad-based environmental consulting firm whose underlying philosophy is to provide professional services worldwide so that sustainable economic and human development may proceed with acceptable impact on the environment. Together with its subsidiaries (collectively, the “Company”), EEI has direct and indirect ownership in 7 active wholly-owned and majority-owned operating subsidiaries in 5 countries. The Company’s staff is comprised of individuals representing more than 80 scientific, engineering, health, and social disciplines working together in multidisciplinary teams to provide innovative environmental solutions. The Company has completed thousands of projects for a wide variety of clients in more than 120 countries, providing environmental solutions in nearly every ecosystem on the planet. The consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of such information. All such adjustments are of a normal recurring nature. Certain prior year amounts were reclassified to conform to the consolidated financial statement presentation for fiscal year ended July 31, 2016. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jul. 31, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Accounting Pronouncements Adopted During the Fiscal Year Ended July 31, 2016 In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes (Topic 740) – Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-17 requires entities to classify deferred tax liabilities and assets as noncurrent in a classified balance sheet. This differs from current U.S. GAAP which requires that deferred income tax liabilities and assets be separated into current and noncurrent amounts in a classified balance sheet. The amendments in ASU 2015-17 are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period. ASU 2015-17 may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted the provisions of ASU 2015-17 effective November 1, 2015, and elected to adopt the guidance retrospectively. As a result of adopting ASU 2015-17, deferred tax assets of $3.9 million were reclassified from current assets to non-current assets on the consolidated balance sheet at July 31, 2015. Refer to Note 12 of these consolidated financial statements for additional disclosures regarding deferred tax assets and liabilities. Accounting Pronouncements Not Yet Adopted as of July 31, 2016 In September 2015, FASB issued ASU No. 2015-16, Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”). ASU 2015-16 requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. In addition, the amendments in ASU 2015-16 require an acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU 2015-16 also require an entity to present separately on the face of the income statement, or disclose in the notes to the financial statements, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized at the acquisition date. The amendments in ASU 2015-16 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, and are to be applied prospectively to adjustments to provisional amounts that occur after the effective date. Earlier application is permitted for financial statements that have not yet been made available for issuance. The Company adopted the provisions of ASU 2015-16 effective August 1, 2016. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In May 2015, FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (Or its Equivalent) (“ASU 2015-07”). ASU 2015-07 removes the requirements to: 1) categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per practical expedient; and 2) make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The amendments in ASU 2015-07 are effective for public entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amendment is required to be applied retrospectively and early adoption is permitted. The Company adopted ASU 2015-07 effective August 1, 2016. Other than the changes to disclosures noted above, the adoption of ASU 2015-07 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) (“ASU 2014-15”). ASU 2014-15 requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). ASU 2014-15 provides guidance for management’s evaluation, including guidance regarding when substantial doubt about an entity’s ability to continue as a going concern exists, and when such doubt may be alleviated by management’s plans that are intended to mitigate those relevant conditions or events. ASU 2014-15 also provides guidance regarding appropriate financial statement disclosures regarding conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that are intended to mitigate those conditions or events. The provisions of ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Earlier application is permitted. The Company adopted ASU 2014-15 effective August 1, 2016. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). The objective of ASU 2016-09 is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in ASU 2016-09 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any interim or annual period, subject to transition requirements. The Company intends to adopt the provisions of ASU 2016-09 effective August 1, 2017. Management is currently assessing the provisions of ASU 2016-09 and has not yet estimated its impact on the Company’s consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is the result of a joint project of FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for use in the U.S and internationally. ASU 2014-09 supersedes the revenue recognition requirements in Topic 605 of FASB’s Accounting Standards Codification (the “Codification”) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU 2014-09 enhances comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets, reduces the number of requirements an entity must consider for recognizing revenue, and requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. ASU 2014-09 was to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within the annual reporting period. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. The Company intends to adopt the provisions of ASU 2014-09 effective August 1, 2018. During the year ended July 31, 2016, FASB issued four additional ASUs that provide clarification for specific aspects of ASU 2014-09. The effective dates and transition requirements for these ASUs are the same as the effective dates and transition requirements included in ASU 2014-09 and ASU 2015-14. ASU 2014-09 requires retrospective application by either restating each prior period presented in the financial statements, or by recording the cumulative effect on prior reporting periods to beginning retained earnings in the year that the standard becomes effective. Management is currently assessing the provisions of ASU 2014-09 and has not yet estimated its impact or selected a transition method. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The amendments included in this update make targeted improvements to U.S. GAAP. Entities are required to apply the amendments included in ASU 2016-01 by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. For public entities, the amendments included in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2016-01 effective August 1, 2018. Management is currently assessing the provisions of ASU 2016-01 and has not yet estimated its impact on the Company’s consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The amendments included in this update provide guidance regarding eight specific cash flow classification issues that are not specifically addressed in previous U.S. GAAP. For public entities, the amendments included in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2016-01 effective August 1, 2018. Management is currently assessing the provisions of ASU 2016-15 and has not yet estimated its impact on the Company’s consolidated financial statements. In March 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize the assets and liabilities that arise from most leases. The main difference between previous U.S. GAAP and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. For lessors, the guidance included in ASU 2016-02 modifies the classification criteria and the accounting for sales-type and direct financing leases. ASU 2016-02 provides specific guidance for determining whether a contractual arrangement contains a lease, lease classification by lessees and lessors, initial and subsequent measurement of leases by lessees and lessors, sale and leaseback transactions, transition, and financial statement disclosures. ASU 2016-02 requires entities to use a modified retrospective approach to apply its guidance, and includes a number of optional practical expedients that entities may elect to apply. For public entities, the amendments included in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2016-02 effective August 1, 2019. Early adoption of the amendments included in ASU 2016-02 is permitted. Management is currently assessing the provisions of ASU 2016-02 and has not yet estimated its impact on the Company’s consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”). The amendments included in this update affect entities holding financial assets, including trade receivables and investment securities available for sale, that are not accounted for at fair value through net income. ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments included in this update also provide guidance for measurement of expected credit losses and for presentation of increases or decreases of expected credit losses on the statement of operations. For public entities, the amendments included in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company intends to adopt the provisions of ASU 2016-01 effective August 1, 2020. Management is currently assessing the provisions of ASU 2016-15 and has not yet estimated its impact on the Company’s consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Consolidation The consolidated financial statements include the accounts of EEI and its wholly owned and majority owned subsidiaries. All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions as of the date of the financial statements, which affect the reported values of assets and liabilities and revenues and expenses and disclosures of contingent assets and liabilities. Actual results may differ from those estimates. Investment Securities Available for Sale Investment securities available for sale are stated at fair value. Unrealized gains or losses related to investment securities available for sale are recorded in accumulated other comprehensive income, net of applicable income taxes in the accompanying condensed consolidated balance sheets and condensed consolidated statements of changes in shareholders' equity. The cost basis of securities sold is based on the specific identification method. Reclassification adjustments out of accumulated other comprehensive income resulting from disposition of investment securities available for sale are included within other income (expense) in the condensed consolidated statements of operations. Investment securities available for sale include mutual funds that are valued at the net asset value (“NAV”) of shares held by the Company at period end. Mutual funds held by the Company are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily NAV and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. Refer to Note 6 of these consolidated financial statements for additional disclosures regarding the Company’s investment securities available for sale. Revenue Recognition and Contract Receivables, Net Substantially all of the Company's revenue is derived from environmental consulting work, which is principally derived from the sale of labor hours. The consulting work is performed under a mix of fixed price, cost-type, and time and material contracts. Contracts are required from all customers. Revenue is recognized as follows: Contract Type Work Type Revenue Recognition Policy Time and materials Consulting As incurred at contract rates. Fixed price Consulting Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours. Cost-plus Consulting Costs as incurred plus fees. Fees are recognized as revenue using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts. Revenues reflected in the Company's consolidated statements of operations represent services rendered for which the Company maintains a primary contractual relationship with its customers. Included in revenues are certain services outside the Company's normal operations which the Company has elected to subcontract to other contractors. Time and material contracts are accounted for over the period of performance, in proportion to the costs of performance, predominately based on labor hours incurred. Revenue earned from fixed price and cost-plus contracts is recognized using the “percentage-of-completion” method, wherein revenue is recognized as project progress occurs. If an estimate of costs at completion on any contract indicates that a loss will be incurred, the entire estimated loss is charged to operations in the period the loss becomes evident. Substantially all of the Company's cost-type work is with federal governmental agencies and, as such, is subject to audits after contract completion. Under these cost-type contracts, provisions for adjustments to accrued revenue are recognized on a quarterly basis and based on past audit settlement history. Government audits have been completed and final rates have been negotiated through fiscal year 2010. The Company records an allowance for project disallowances in other accrued liabilities for potential disallowances resulting from government audits (refer to Note 12 of these consolidated financial statements). Allowances for project disallowances are recorded as adjustments to revenue when the amounts are estimable. Resolution of these amounts is dependent upon the results of government audits and other formal contract close-out procedures. Change orders can occur when changes in scope are made after project work has begun, and can be initiated by either the Company or its clients. Claims are amounts in excess of the agreed contract price which the Company seeks to recover from a client for customer delays and /or errors or unapproved change orders that are in dispute. Costs related to change orders and claims are recognized as incurred. Revenues and profit are recognized on change orders when it is probable that the change order will be approved and the amount can be reasonably estimated. Revenues are recognized only up to the amount of costs incurred on contract claims when realization is probable, estimable and reasonable support from the customer exists. All bid and proposal and other pre-contract costs are expensed as incurred. Out of pocket expenses such as travel, meals, field supplies, and other costs billed direct to contracts are included in both revenues and cost of professional services. Sales and cost of sales at the Company’s South American subsidiaries exclude tax assessments by governmental authorities, which are collected by the Company from its customers and then remitted to governmental authorities. Billed contract receivables represent amounts billed to clients in accordance with contracted terms, which have not been collected from clients as of the end of the reporting period. Billed contract receivables may include: (1) amounts billed for revenues from incurred costs and fees that have been earned in accordance with contractual terms; and (2) progress billings in accordance with contractual terms that include revenue not yet earned as of the end of the reporting period. Unbilled contract receivables result from: (i) revenues from incurred costs and fees which have been earned, but are not billed as of period-end; and (ii) differences between year-to-date provisional billings and year-to-date actual contract costs incurred. The Company reduces contract receivables by establishing an allowance for contract adjustments related to revenues that are deemed to be unrealizable, or that may become unrealizable in the future. The Company also reduces contract receivables by recording an Refer to Note 7 of these consolidated financial statements for additional disclosures regarding the Company’s contract receivables, net. Property, Buildings and Equipment, Depreciation and Amortization Property, buildings and equipment are stated at the lower of depreciated or amortized cost or fair value. Land and land improvements are not depreciated or amortized. Methods of depreciation or amortization and useful lives for all other long-lived assets are summarized in the following table. Depreciation / Amortization Method Useful Lives Buildings Straight-line 32-40 Years Building Improvements Straight-line 7-15 Years Field Equipment Straight-line 3-7 Years Computer equipment Straight-line and Accelerated 3-7 Years Computer software Straight-line 10 Years Office furniture and equipment Straight-line 3-7 Years Vehicles Straight-line 3-5 Years Leasehold improvements Straight-line (1) (1) Leasehold improvements are amortized for book purposes over the terms of the leases or the estimated useful lives of the assets, whichever is shorter. Expenditures for maintenance and repairs are charged to expense as incurred. Expenditures for improvements are capitalized when either the value or useful life of the related asset have been increased. When property or equipment is retired or sold, any gain or loss on the transaction is reflected in the current year's earnings. The Company capitalizes costs of software acquisition and development projects, including costs related to software design, configuration, coding, installation, testing and parallel processing. Capitalized software costs are recorded in fixed assets, net of accumulated amortization, on the consolidated balance sheets. Capitalized software development costs generally include: ● external direct costs of materials and services consumed to obtain or develop software for internal use; ● payroll and payroll-related costs for employees who are directly associated with and who devote time to the project, to the extent of time spent directly on the project; ● costs to obtain or develop software that allows for access or conversion of old data by new systems; ● costs of upgrades and/or enhancements that result in additional functionality for existing software; and ● interest costs incurred while developing internal-use software that could have been avoided if the expenditures had not been made. The costs of computer software obtained or developed for internal use is amortized on a straight-line basis over the estimated useful life of the software. Amortization begins when the software and all related software modules on which it is functionally dependent are ready for their intended use. Amortization expense is recorded in depreciation and amortization in the consolidated statements of operations. The following software-related costs are expensed as incurred and recorded in general and administrative expenses on the consolidated statements of operations: ● research costs, such as costs related to the determination of needed technology and the formulation, evaluation and selection of alternatives; ● costs to determine system performance requirements for a proposed software project; ● costs of selecting a vendor for acquired software; ● costs of selecting a consultant to assist in the development or installation of new software; ● internal or external training costs related to software; ● internal or external maintenance costs related to software; ● costs associated with the process of converting data from old to new systems, including purging or cleansing existing data, reconciling or balancing of data in the old and new systems and creation of new data; ● updates and minor modifications; and ● fees paid for general systems consulting and overall control reviews that are not directly associated with the development of software. Capitalized software costs are evaluated for recoverability/impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, including when: ● existing software is not expected to provide future service potential; ● it is no longer probable that software under development will be completed and placed in service; and ● costs of developing or modifying internal-use software significantly exceed expected development costs or costs of comparable third-party software. Refer to Note 8 of these consolidated financial statements for additional disclosures regarding the Company’s property, buildings and equipment. Goodwill Goodwill is included in other assets on the accompanying consolidated balance sheets. Goodwill is subject to an annual assessment for impairment by comparing the estimated fair values of reporting units to which goodwill has been assigned to the recorded book value of the respective reporting units. The estimated fair value of reporting units is calculated using a discounted cash flows methodology. Goodwill is also assessed for impairment between annual assessments whenever events or circumstances make it more likely than not that an impairment may have occurred. Refer to Note 9 of these consolidated financial statements for additional disclosures regarding the Company’s recorded goodwill. Impairment of Long-Lived Assets The Company assesses recoverability of the carrying value of long-lived assets by estimating the future net cash flows (undiscounted) expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value. Refer to Note 8 of these consolidated financial statements for additional disclosures regarding impairment of property, buildings and equipment. Income Taxes The Company follows the asset and liability approach to account for income taxes. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Although realization is not assured, management believes it is more likely than not that the recorded net deferred tax assets will be realized. Since in some cases management has utilized estimates, the amount of the net deferred tax asset considered realizable could be reduced in the near term. The Company does not record United States income taxes applicable to undistributed earnings of foreign subsidiaries that the Company intends to indefinitely reinvest in the operations of those entities. Excess cash accumulated by any foreign subsidiary, beyond that necessary to fund operations or business expansion, may be repatriated to the U.S. at the discretion of Board of Directors of the respective entities. The Company would be required to accrue and pay taxes on any amounts repatriated to the U.S. from foreign subsidiaries. Income tax expense includes U.S. and international income taxes, determined using the applicable statutory rates. A deferred tax asset is recognized for all deductible temporary differences and net operating loss carryforwards, and a deferred tax liability is recognized for all taxable temporary differences. The Company has deferred tax assets, resulting principally from timing differences in the recognition of entity operating losses, contract reserves and accrued expenses. The Company periodically evaluates the likelihood of realization of deferred tax assets, and provides for a valuation allowance when necessary. U.S. GAAP prescribes a recognition threshold and measurement principles for financial statement disclosure of tax positions taken or expected to be taken on a tax return. A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions shall be recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the position will be sustained. Tax positions that meet the more likely than not threshold should be measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position, is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in administrative and indirect operating expenses. Refer to Note 12 of these consolidated financial statements for additional disclosures regarding income taxes. Defined Contribution Plans EEI has a non-contributory defined contribution plan providing deferred benefits for substantially all of its employees (the “EEI Defined Contribution Plan”). The annual expense of the EEI Defined Contribution Plan is based on a percentage of eligible wages as authorized by EEI’s Board of Directors. EEI also has a supplemental retirement plan that provides post-retirement health care coverage for EEI’s founders and their spouses. As of July 31, 2016, one founder, his spouse and the spouse of a deceased founder were receiving healthcare coverage under this plan. The annual expense associated with this plan is determined based on discounted annual cost estimates over the estimated life expectancy of the founders and their spouses. Walsh Environmental Scientists & Engineers, LLC (“Walsh”), a wholly-owned subsidiary of EEI, has a defined contribution plan providing deferred benefits for substantially all of its employees and the employees of two if its majority owned subsidiaries (the “Walsh Defined Contribution Plan”). The respective entities contribute a percentage of eligible wages up to a maximum of 4%. Refer to Note 17 of these consolidated financial statements for additional disclosures regarding the Company’s defined contribution plans. Incentive Compensation The Company expenses cash bonuses during the performance period to which they relate. The value of stock awards is expensed over the vesting period of the respective award. Share-based awards are measured at fair value on the respective grant date, based on the estimated number of awards that are expected to vest. Compensation cost for awards that vest is not reversed if the awards expire without being exercised. Refer to Note 14 of these consolidated financial statements for additional disclosures regarding the Company’s incentive compensation awards. Earnings per Share Basic and diluted earnings per share (“EPS”) are computed by dividing the net income (loss) attributable to Ecology and Environment, Inc. common shareholders by the weighted average number of common shares outstanding for the period. After consideration of all the rights and privileges of the Class A and Class B stockholders (refer to Note 14 of these consolidated financial statements), in particular the right of the holders of the Class B Common Stock to elect no less than 75% of the Board of Directors making it highly unlikely that the Company will pay a dividend on Class A Common Stock in excess of Class B Common Stock, the Company allocates undistributed earnings between the classes on a one-to-one basis when computing earnings per share. As a result, basic and fully diluted earnings per Class A and Class B share are equal amounts. The Company has determined that its unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. These securities are included in the computation of earnings per share pursuant to the two-class method. As a result, unvested restricted shares are included in the weighted average shares outstanding calculation. Refer to Note 18 of these consolidated financial statements for additional disclosures regarding the Company’s earnings per share. Comprehensive Income (Loss) Comprehensive income or loss represents the change in shareholders’ equity during a period, excluding changes arising from transactions with shareholders. Comprehensive income or loss includes net income (loss) from the consolidated statements of operations, plus (less) other comprehensive income (loss) during a reporting period. Other comprehensive income (loss) represents the net effect of accounting transactions that are recognized directly in shareholders’ equity, such as the unrealized net impact of currency translation adjustments from foreign operations and unrealized gains (losses) on available-for-sale securities. Refer to Note 15 of these consolidated financial statements for additional disclosures regarding accumulated other comprehensive income (loss). Foreign Currencies and Inflation The financial statements of foreign subsidiaries where the local currency is the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates during each reporting period for results of operations. Translation adjustments are deferred in accumulated other comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company recorded foreign currency transaction gains (losses) of less than $0.1 million, $0.1 million and less than $(0.1) million for the fiscal years ended July 31, 2016, 2015 and 2014, respectively. The financial statements of foreign subsidiaries located in highly inflationary economies are remeasured as if the functional currency were the U.S. dollar. The remeasurement of local currencies into U.S. dollars creates transaction adjustments which are included in net income. The Company did not record any highly inflationary economy translation adjustments for the fiscal years ended July 31, 2016, 2015 or 2014. Noncontrolling Interests Earnings and other comprehensive income (loss) are separately attributed to both the controlling and noncontrolling interests. Purchases of noncontrolling interests are recorded as reductions of shareholders’ equity on the consolidated statements of shareholders’ equity. EPS is calculated based on net income (loss) attributable to the Company’s controlling interests. |
Significant Adjustments During
Significant Adjustments During the Three Months Ended July 31, 2016 | 12 Months Ended |
Jul. 31, 2016 | |
Significant Adjustments During the Three Months Ended July 31, 2016 [Abstract] | |
Significant Adjustments During the Three Months Ended July 31, 2016 | 4. Significant Adjustments During the Three Months Ended July 31, 2016 During the three months ended July 31, 2016, the Company identified and recorded the following adjustments of amounts previously reported during periods prior to 2016. The Company determined that these amounts are not material to the current or any prior period · Accrued severance liabilities maintained by the Company’s South American subsidiaries, which were reported in accrued payroll costs on the consolidated balance sheet at July 31, 2015 for the three and twelve month periods ended July 31, 2016 for the three and twelve month periods ended July 31, 2016 · Correction of deferred tax assets and liabilities reported as of July 31, 2015 for the three and twelve month periods ended July 31, 2016 for the three and twelve month periods ended July 31, 2016 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Jul. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. The Company invests cash in excess of operating requirements in income-producing short-term investments. Money market funds of $0.3 million and less than $0.1 million were included in cash and cash equivalents in the accompanying consolidated balance sheets and consolidated statements of cash flows at July 31, 2016 and 2015, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jul. 31, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments The Company’s financial assets or liabilities are measured using inputs from the three levels of the fair value hierarchy. The asset’s or liability’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company has not elected a fair value option on any assets or liabilities. The three levels of the hierarchy are as follows: Level 1 Inputs Level 2 Inputs Level 3 Inputs The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers in or out of levels 1, 2 or 3 during fiscal years 2016, 2015 or 2014. The fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis is summarized by level within the fair value hierarchy in the following table. Balance at July 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets Investment securities available for sale $ 1,598 $ --- $ --- $ 1,598 Balance at July 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Assets Investment securities available for sale $ 1,434 $ --- $ --- $ 1,434 The Company recorded gross unrealized gains (losses) of less than $0.1 million related to investment securities available for sale in accumulated other comprehensive income (loss) at July 31, 2016 and 2015 and 2014. The Company did not record any sales of investment securities during the twelve months ended July 31, 2016. The carrying amount of cash and cash equivalents approximated fair value at July 31, 2016 and 2015. These assets were classified as level 1 instruments at both dates. Long-term debt consists of bank loans and capitalized equipment leases. Lines of credit consist of borrowings for working capital requirements. Based on the Company's assessment of the current financial market and corresponding risks associated with the debt and line of credit borrowings, management believes that the carrying amount of these liabilities approximated fair value at July 31, 2016 and 2015. These liabilities were classified as level 2 instruments at both dates. Refer to Note 10 and Note 11 of these consolidated financial statements for additional disclosures regarding the Company’s lines of credit, debt and capital lease obligations. |
Contract Receivables, net
Contract Receivables, net | 12 Months Ended |
Jul. 31, 2016 | |
Contract Receivables, net [Abstract] | |
Contract Receivables, net | 7. Contract Receivables, net Contract receivables, net are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Contract Receivables: Billed $ 19,552 $ 22,916 Unbilled 20,696 25,904 40,248 48,820 Allowance for doubtful accounts and contract adjustments (5,929 ) (5,954 ) Contract receivables, net $ 34,319 $ 42,866 Billed contract receivables included contractual retainage balances of $0.9 million and $0.5 million at July 31, 2016 and 2015, respectively. Management anticipates that unbilled contract receivables and retainage balances at July 31, 2016 will be substantially billed and collected within one year. Contract Receivable Concentrations Significant concentrations of contract receivables and the allowance for doubtful accounts and contract adjustments are summarized in the following table. Balance at July 31, 2016 Balance at July 31, 2015 Region Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments (in thousands) United States, Canada and South America $ 35,266 $ 1,034 $ 43,629 $ 1,043 Middle East and Africa 4,921 4,895 5,067 4,894 Asia 61 --- 124 17 Totals $ 40,248 $ 5,929 $ 48,820 $ 5,954 Contract adjustments related to projects in the United States, Canada and South America typically result from cost overruns related to current or recently completed projects, or from recoveries of cost overruns recorded as contract adjustments in prior reporting periods. Contract adjustments related to projects in the Middle East, Africa and Asia typically result from difficulties encountered while attempting to settle and close-out claims that may be several years old. Combined contract receivables related to projects in the Middle East, Africa and Asia represented 12% and 11% of total contract receivables at July 31, 2016 Allowance for Doubtful Accounts and Contract Adjustments Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Balance at beginning of period $ 5,954 $ 6,508 $ 5,969 Net increase (decrease) due to adjustments in the allowance for: Contract adjustments (1) (577 ) (263 ) 474 Doubtful accounts (2) 552 (291 ) 95 Transfer of reserves (to) from allowance for project disallowances (3) --- --- (30 ) Balance at end of period $ 5,929 $ 5,954 $ 6,508 (1) Increases (decreases) to the allowance for contract adjustments on the consolidated balance sheets are recorded as (decreases) increases to revenue on the consolidated statements of operations. (2) Increases (decreases) to the allowance for doubtful accounts on the consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the consolidated statements of operations. (3) The allowance for project disallowances is included in other accrued liabilities on the consolidated balance sheets. Refer to Note 13 of these consolidated financial statements. During fiscal year 2016, the Company’s Brazilian operations continued to be adversely affected by an economic downturn, the total scope and duration of which are uncertain. Management is monitoring any adverse trends or events that may impact the realizability of the recorded net book value of contract receivables from customers in Brazil. The Company maintained $0.8 million and $0.4 million of allowance for doubtful accounts at July 31, 2016 and 2015, respectively, related to the Company’s Brazilian operations. |
Property, Buildings and Equipme
Property, Buildings and Equipment, net | 12 Months Ended |
Jul. 31, 2016 | |
Property, Buildings and Equipment, net [Abstract] | |
Property, Buildings and Equipment, net | 8. Property, Buildings and Equipment, net Property, buildings and equipment is summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Land and land improvements $ 393 $ 393 Buildings and building improvements 9,700 10,368 Field equipment 2,222 2,786 Computer equipment 4,439 4,685 Computer software 3,105 6,112 Office furniture and equipment 2,683 4,076 Vehicles 1,333 1,439 Other 543 693 24,418 30,552 Accumulated depreciation and amortization (18,324 ) (23,438 ) Property, buildings and equipment, net $ 6,094 $ 7,114 During the three months ended April 30, 2016, the Company’s Board of Directors directed management to sell vacant buildings owned by the Company. The buildings had a recorded net book value of $1.9 million at April 30, 2016. Management assessed the recoverability of the net book value of the buildings based on its plan to sell the buildings, expected future use of the buildings, and the buildings’ appraised market value. Based upon this assessment, management determined that the net book value of the buildings was impaired as of April 30, 2016. As a result, during the three months ended April 30, 2016, the Company recorded an impairment loss of approximately $0.4 million as a reduction of property, buildings and equipment, net in the consolidated balance sheet and as additional administrative and indirect operating expenses in the consolidated statement of operations. Also during the three months ended April 30, 2016, the Company received net insurance proceeds of approximately $0.4 million related to storm damage to two of its buildings. These proceeds were recorded as a gain on insurance settlement in the consolidated statement of operations. |
Goodwill
Goodwill | 12 Months Ended |
Jul. 31, 2016 | |
Goodwill [Abstract] | |
Goodwill | 9. Goodwill Goodwill of $1.1 million is included in other assets on the accompanying consolidated balance sheets at July 31, 2016 and 2015. The Company’s most recent annual impairment assessment for goodwill was completed during the fourth quarter of fiscal year 2016. Based on this assessment, the fair values of the reporting units to which goodwill is assigned exceeded the book values of the respective reporting units. As a result, no impairment of goodwill was identified. |
Lines of Credit
Lines of Credit | 12 Months Ended |
Jul. 31, 2016 | |
Lines of Credit [Abstract] | |
Lines of Credit | 10 . Lines of Credit Unsecured lines of credit are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Outstanding cash draws, recorded as lines of credit on the accompanying consolidated balance sheets $ 312 $ 672 Outstanding letters of credit to support operations 2,187 1,144 Total amounts used under lines of credit 2,499 1,816 Remaining amounts available under lines of credit 36,496 30,993 Total approved unsecured lines of credit $ 38,995 $ 32,809 Contractual interest rates ranged from 3.50% to 15.60% at July 31, 2016. The Company’s lenders have reaffirmed the lines of credit within the past twelve months. |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 12 Months Ended |
Jul. 31, 2016 | |
Debt and Capital Lease Obligations [Abstract] | |
Debt and Capital Lease Obligations | 11. Debt and Capital Lease Obligations Debt and capital lease obligations are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Various loans and advances (interest rates ranging from 3.25% to 12%) $ 217 $ 635 Capital lease obligations (interest rates ranging from 7.36% to 14%) 240 311 457 946 Current portion of long-term debt and capital lease obligations (240 ) (551 ) Long-term debt and capital lease obligations $ 217 $ 395 The aggregate maturities of long-term debt and capital lease obligations as of July 31, 2016 are summarized in the following table. Fiscal Year Ended July 31, Amount (in thousands) 2017 $ 240 2018 171 2019 27 2020 13 Thereafter 6 Total $ 457 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes Income (loss) before income tax provision is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Domestic $ 4,558 $ 3,500 $ (4,305 ) Foreign (191 ) 4,469 3,858 $ 4,367 $ 7,969 $ (447 ) The income tax provision is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Current: Federal $ 1,155 $ 488 $ 86 State 177 80 63 Foreign 730 2,047 1,012 Total current 2,062 2,615 1,161 Deferred: Federal 587 1,379 (975 ) State 269 172 24 Foreign 841 (397 ) 133 Total deferred 1,697 1,154 (818 ) Total income tax provision $ 3,759 $ 3,769 $ 343 A reconciliation of the income tax provision using the statutory U.S. income tax rate compared with the actual income tax provision reported on the consolidated statements of operations is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Income tax (benefit) provision at the U.S. federal statutory income tax rate $ 1,485 $ 2,709 $ (152 ) Brazil valuation allowance 1,582 --- --- Income from "pass-through" entities taxable to noncontrolling partners (39 ) 31 35 International rate differences (145 ) (338 ) (144 ) Other foreign taxes, net of federal benefit 153 161 (34 ) Foreign dividend income 263 508 597 State taxes, net of federal benefit 312 166 28 Re-evaluation and settlements of tax contingencies --- --- (20 ) Peru non-deductible expenses 59 167 44 Canada and China valuation allowance 1 156 (83 ) Other permanent differences 88 209 72 Income tax provision, as reported on the consolidated statements of operations $ 3,759 $ 3,769 $ 343 The Company adopted the provisions of ASU 2015-17 effective November 1, 2015, and elected to adopt the guidance retrospectively. As a result of adopting ASU 2015-17, deferred income tax assets of $3.9 million were reclassified from current assets and included in non-current deferred income tax assets on the consolidated balance sheet at July 31, 2015. The significant components of deferred tax assets and liabilities are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Deferred tax assets: Contract and other reserves $ 3,023 $ 3,257 Accrued compensation and expenses 734 836 Net operating loss carryforwards 1,265 737 Foreign and state income taxes 59 57 Foreign tax credit 296 296 Federal benefit from foreign tax audits 157 212 Other (26 ) 454 Deferred tax assets 5,508 5,849 Less: valuation allowance (2,278 ) (560 ) Net deferred tax assets $ 3,230 $ 5,289 Deferred tax liabilities: Federal expense on state deferred taxes $ (133 ) $ (225 ) Fixed assets and intangibles (759 ) (341 ) Federal expense from foreign accounting differences (213 ) (542 ) Net deferred tax liabilities $ (1,105 ) $ (1,108 ) During the fiscal year ended July 31, 2014, the Company generated a net operating loss in the U.S. of $1.7 million, which was carried forward and fully utilized in fiscal year 2015. As of July 31, 2016, net operating losses attributable to operations in Brazil, Canada and China and net operating losses for state income tax purposes still exist. The Company periodically evaluates the likelihood of realization of deferred tax assets, and provides for a valuation allowance when necessary. Fiscal Year Ended July 31, 2016 2015 (in thousands) Balance at beginning of period $ 560 $ 398 Additions during the period 1,765 176 Reductions during period (47 ) (14 ) Balance at end of period $ 2,278 $ 560 The valuation allowance maintained by the Company primarily relates to: (i) net operating losses in Brazil and Canada, the utilization of which is dependent on future earnings; (ii) excess foreign tax credit carryforwards, the utilization of which is dependent on future foreign source income; and (iii) capital loss carryforwards, the utilization of which is dependent on future capital gains. Additions to the valuation allowance during the fiscal year ended July 31, 2016 primarily related to a deferred tax asset that resulted from net operating loss carryforwards from the Company’s Brazilian operations. During the fiscal year ended July 31, 2016, based on available evidence including recent cumulative operating losses, management determined that it is more likely than not that these deferred tax assets will not be realized. The Company has recorded $0.1 million and $0 of income taxes applicable to undistributed earnings of foreign subsidiaries that will not be indefinitely reinvested in those operations. At July 31, 2016, the Company’s operations in Chile, Peru and Ecuador had $6.9 million of combined undistributed earnings that were indefinitely reinvested in those operations. The Company files numerous consolidated and separate income tax returns in U.S. federal, state and foreign jurisdictions. The Company’s tax matters for the fiscal years 2013 through 2016 remain subject to examination by the IRS. The Company’s tax matters in other material jurisdictions remain subject to examination by the respective state, local, and foreign tax jurisdiction authorities. No waivers have been executed that would extend the period subject to examination beyond the period prescribed by statute. At July 31, 2016, 2015 and 2014, the Company had $0.1 million of uncertain tax positions (“UTPs”) resulting from gross unrecognized tax benefits that if realized, would favorably affect the effective income tax rate in future periods. It is reasonably possible that the liability associated with UTPs will increase or decrease within the next twelve months. At this time, an estimate of the range of the reasonably possible outcomes cannot be made. The Company recognizes interest and penalties related to liabilities for UTPs in other accrued liabilities on the consolidated balance sheets and in administrative and indirect operating expenses on the consolidated statements of operations. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Jul. 31, 2016 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | 13. Other Accrued Liabilities Other accrued liabilities are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Allowance for project disallowances $ 1,819 $ 2,243 Other 1,626 1,688 Total other accrued liabilities $ 3,445 $ 3,931 Activity within the allowance for project disallowances is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Balance at beginning of period $ 2,243 $ 2,393 $ 2,663 Reduction of reserves recorded in prior fiscal years (424 ) (150 ) (300 ) Net change during the period, recorded as a transfer of reserves from allowance for doubtful accounts and contract adjustments --- --- 30 Balance at end of period $ 1,819 $ 2,243 $ 2,393 The reductions in the allowance for project disallowances during fiscal years 2016, 2015 and 2014, which were recorded as additions to revenue, net on the consolidated statements of operations, resulted from settlements of allowances recorded in prior fiscal years. The settlements resulted in cash payments of less than $0.1 million during fiscal years 2016, 2015 and 2014. |
Incentive Compensation
Incentive Compensation | 12 Months Ended |
Jul. 31, 2016 | |
Incentive Compensation [Abstract] | |
Incentive Compensation | 14. Incentive Compensation EEI and its subsidiaries may, at the discretion of their respective Boards of Directors, award incentive compensation to Directors, senior management and other employees based on the respective company’s financial performance and the individual’s job performance. Incentive compensation may be awarded as cash bonuses, Class A Common Stock issued under EEI’s Stock Award Plan (defined below), or a combination of both cash and stock. Cash Bonuses The Company recorded $1.7 million, $3.0 million and $1.4 million of cash bonus awards as incentive compensation expense during the fiscal years ended July 31, 2016, 2015 and 2014, respectively. Stock Award Plan EEI adopted the 1998 Stock Award Plan effective March 16, 1998. This plan, together with supplemental plans that were subsequently adopted by the Company’s Board of Directors, is referred to as the “Stock Award Plan”. The Stock Award Plan is not a qualified plan Section 401(a) of the Internal Revenue Code. Under the Stock Award Plan, Directors, officers and other key employees of EEI or any of its subsidiaries may be awarded Class A Common Stock as a bonus for services rendered to the Company or its subsidiaries, based upon the fair market value of the common stock at the time of the award. The Stock Award Plan authorizes the Company’s Board of Directors to determine the vesting period and the circumstances under which the awards may be forfeited. Under the supplemental plan in place as of July 31, 2016, which expired in October 2016, the Company issued 17,386 shares of Class A Common Stock under the Stock Award Plan, all of which were fully vested at July 31, 2016. In October 2016, the Company’s Board of Directors adopted the current supplemental plan, the 2016 Stock Award Plan. This plan permits awards of up to 200,000 shares of Class A Common Stock for a period of up to five years until its termination in October 2021. EEI recorded non-cash compensation expense of less than $0.1 million during the twelve months ended July 31, 2016 and 2015 and $0.4 million during the twelve months ended July 31, 2014 in connection with outstanding stock compensation awards. As of July 31, 2016, all previous stock awards were fully expensed. The "pool" of excess tax benefits accumulated in Capital in Excess of Par Value was $0 and $0.1 million at July 31, 2016 and 2015, respectively. In September 2015, EEI issued 4,533 Class A shares from the Stock Award Plan, which were valued at less than $0.1 million, to three directors as additional compensation for their roles as Chairman and members of EEI’s Audit Committee. In September 2016, the Company issued an additional 4,450 Class A shares, valued at less than $0.1 million, to the Chairman and members of the Company’s Audit Committee. These stock awards vested immediately upon issuance, subject to certain restrictions regarding transfer of the shares that expire one year after issuance. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jul. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 15. Shareholders' Equity Class A and Class B Common Stock The relative rights, preferences and limitations of the Company's Class A and Class B Common Stock are summarized as follows: Holders of Class A shares are entitled to elect 25% of the Board of Directors so long as the number of outstanding Class A shares is at least 10% of the combined total number of outstanding Class A and Class B common shares. Holders of Class A common shares have one-tenth the voting power of Class B common shares with respect to most other matters. In addition, Class A shares are eligible to receive dividends in excess of (and not less than) those paid to holders of Class B shares. Holders of Class B shares have the option to convert at any time, each share of Class B Common Stock into one share of Class A Common Stock. Upon sale or transfer, shares of Class B Common Stock will automatically convert into an equal number of shares of Class A Common Stock, except that sales or transfers of Class B Common Stock to an existing holder of Class B Common Stock or to an immediate family member will not cause such shares to automatically convert into Class A Common Stock. Restrictive Shareholder Agreement Messrs. Gerhard J. Neumaier (deceased), Frank B. Silvestro, Ronald L. Frank, and Gerald A. Strobel entered into a Stockholders’ Agreement dated May 12, 1970, as amended January 24, 2011, which governs the sale of certain shares of Ecology and Environment, Inc. common stock (now classified as Class B Common Stock) owned by them, certain children of those individuals and any such shares subsequently transferred to their spouses and/or children outright or in trust for their benefit upon the demise of a signatory to the Agreement (“Permitted Transferees”). The Agreement provides that prior to accepting a bona fide offer to purchase some or all of their shares of Class B Common Stock governed by the Agreement, that the selling party must first allow the other signatories to the Agreement (not including any Permitted Transferee) the opportunity to acquire on a pro rata basis, with right of over-allotment, all of such shares covered by the offer on the same terms and conditions proposed by the offer. Cash Dividends The Company declared cash dividends of $1.9 million, $2.1 million and $2.1 million during the fiscal years ended July 31, 2016, 2015 and 2014. The Company paid cash dividends of $2.1 million during the fiscal years ended July 31, 2016, 2015 and 2014. The Company paid cash dividends of $0.9 million, $1.0 million and $1.0 million in August 2016, 2015 and 2014, respectively, that were declared and accrued in prior periods. Stock Repurchase Program In August 2010, the Company’s Board of Directors approved a program for repurchase of 200,000 shares of Class A Common Stock (the “Stock Repurchase Program”). As of July 31, 2016, the Company repurchased 122,918 shares of Class A stock, and 77,082 shares had yet to be repurchased under the Stock Repurchase Program. The Company did not acquire any Class A shares under the Stock Repurchase Program during fiscal years 2016 or 2015. The Company acquired 16,091 shares of Class A stock under the Stock Repurchase Program during fiscal year 2014 for a total acquisition cost of approximately $0.2 million. Noncontrolling Interests During the fiscal year ended July 31, 2015, Gustavson Associates, LLC (“Gustavson”), a majority owned indirect subsidiary of EEI, purchased an additional 7.2% of its outstanding common shares from noncontrolling shareholders for $0.3 million, paid as follows: (i) $0.1 million of cash paid on the transaction date; and (ii) $0.2 million payable in 3 annual installments during the fiscal years ended July 31, 2016, 2017 and 2018, plus interest accrued at 6% per annum. EEI’s indirect ownership of Gustavson increased to 83.6% as a result of this transaction. During the fiscal year ended July 31, 2014, in three separate transactions, EEI purchased a combined 10.5% of outstanding Walsh Environmental, LLC (“Walsh”) common shares from noncontrolling shareholders for $1.8 million, paid as follows: (i) $0.8 million in cash paid on the purchase transaction dates; (ii) $0.5 million EEI Class A Common Stock issued on one of the transaction dates; and (iii) $0.5 million of cash payable in two annual installments during the fiscal years ended July 31, 2015 and 2016, plus interest accrued at 3.25% per annum. EEI’s direct ownership of Walsh increased to 100% as a result of these transactions. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Unrealized net foreign currency translation losses $ (2,176 ) $ (1,738 ) Unrealized net investment gains on available for sale investments 33 12 Total accumulated other comprehensive loss $ (2,143 ) $ (1,726 ) |
Operating Lease Commitments
Operating Lease Commitments | 12 Months Ended |
Jul. 31, 2016 | |
Operating Lease Commitments [Abstract] | |
Operating Lease Commitments | 16. Operating Lease Commitments The Company rents certain office facilities and equipment under non-cancelable operating leases and certain other facilities for servicing project sites over the term of the related long-term government contracts. Lease agreements may contain step rent provisions and/or free rent concessions. Lease payments based on a price index have rent expense recognized on a straight line or substantially equivalent basis, and are included in the calculation of minimum lease payments. Gross rental expense associated with lease commitments was $3.5 million, $3.5 million and $3.9 million for the fiscal years ended July 31, 2016, 2015 and 2014, respectively. Future minimum rental commitments under operating leases as of July 31, 2016 are summarized in the following table. Fiscal Year Ended July 31, Amount (in thousands) 2017 $ 2,565 2018 2,289 2019 1,813 2020 1,278 2021 1,134 Thereafter 886 |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Jul. 31, 2016 | |
Defined Contribution Plans [Abstract] | |
Defined Contribution Plans | 17. Defined Contribution Plans Contributions to the EEI Defined Contribution Plan and EEI Supplemental Retirement Plan are discretionary and determined annually by its Board of Directors. The Walsh Defined Contribution Plan provides for mandatory employer contributions to match 100% of employee contributions up to 4% of each participant’s compensation. The total expense under these plans was $1.4 million, $1.2 million, and $1.7 million for fiscal years 2016, 2015 and 2014, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. Earnings Per Share The computation of basic and diluted EPS is included in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands, except share and per share amounts) Net (loss) income attributable to Ecology and Environment, Inc. $ 886 $ 3,396 $ (1,383 ) Dividend declared 1,895 2,066 2,066 Undistributed earnings $ (1,009 ) $ 1,330 $ (3,449 ) Weighted-average common shares outstanding (basic and diluted) 4,289,993 4,287,775 4,283,984 Distributed earnings per share $ 0.44 $ 0.48 $ 0.48 Undistributed earnings per share (0.23 ) 0.31 (0.80 ) Total earnings per share $ 0.21 $ 0.79 $ (0.32 ) |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 19. Segment Reporting The Company reports segment information based on the geographic location of EEI and its direct and indirect subsidiaries. Revenue, net and long-lived assets by business segment are summarized in the following tables. Fiscal Years Ended July 31, 2016 2015 2014 (in thousands) Revenue, net, by Business Segment: EEI and its subsidiaries located in the United States $ 83,095 $ 88,715 $ 85,456 Subsidiaries located in South America (1) 22,722 38,220 42,569 Other foreign subsidiaries --- --- 402 (1) Significant South American revenues included revenues from subsidiaries located in Peru ($9.7 million, $22.8 million and $19.5 million for fiscal years 2016, 2015 and 2014, respectively), Brazil ($5.0 million, $8.0 million and $13.8 million for fiscal years 2016, 2015 and 2014, respectively) and Chile ($7.5 million, $6.5 million and $8.8 million for fiscal years 2016, 2014 and 2014, respectively). Balance at July 31, 2016 2015 2014 (in thousands) Long-lived assets by geographic location: EEI and its subsidiaries located in the United States $ 4,916 $ 5,901 $ 6,566 Subsidiaries located in South America 1,178 1,213 1,374 Other foreign subsidiaries --- --- 1 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies Legal Proceedings From time to time, the Company is a named defendant in legal actions arising out of the normal course of business. The Company is not a party to any pending legal proceeding, the resolution of which the management believes will have a material adverse effect on the Company’s results of operations, financial condition or cash flows, or to any other pending legal proceedings other than ordinary, routine litigation incidental to its business. The Company maintains liability insurance against risks arising out of the normal course of business. On February 4, 2011, the Chico Mendes Institute of Biodiversity Conservation of Brazil (the “Institute”) issued a Notice of Infraction to ecology and environment do brasil Ltda (“E&E Brasil”), a majority-owned subsidiary of EEI. The Notice of Infraction concerned the taking and collecting wild animal specimens without authorization by the competent authority and imposed a fine of 520,000 Reais against E&E Brazil. The Institute also filed Notices of Infraction against four employees of E&E Brasil alleging the same claims and imposed fines against those individuals that, in the aggregate, were equal to the fine imposed against E&E Brasil. No claim has been made against EEI. E&E Brasil has filed court claims appealing the administrative decisions of the Institute for E & E Brasil’s employees that: (a) deny the jurisdiction of the Institute; (b) state that the Notice of Infraction is constitutionally vague; and (c) affirmatively state that E&E Brasil had obtained the necessary permits for the surveys and collections of specimens under applicable Brazilian regulations and that the protected conservation area is not clearly marked to show its boundaries. The claim of violations against one of the four employees was dismissed. The remaining three employees have fines assessed against them that are being appealed through the federal courts. Violations against E&E Brasil are pending agency determination. At July 31, 2016, the Company recorded a reserve of approximately $0.3 million in other accrued liabilities related to these claims. Contract Termination Provisions Certain contracts contain termination provisions under which the customer may, without penalty, terminate the contracts upon written notice to the Company. In the event of termination, the Company would be paid only termination costs in accordance with the particular contract. Generally, termination costs include unpaid costs incurred to date, earned fees and any additional costs directly allocable to the termination. The Company did not experience early termination of any material contracts during fiscal years 2016 or 2015. |
Sale of Subsidiary
Sale of Subsidiary | 12 Months Ended |
Jul. 31, 2016 | |
Sale of Subsidiary [Abstract] | |
Sale of Subsidiary | 21. Sale of Subsidiary In October 2015, EEI sold its majority interest in ECSI, LLC (“ECSI”), an engineering and environmental consulting company headquartered in Kentucky, to ECSI’s minority shareholders for $0.3 million. EEI recognized a loss on valuation of its investment in ECSI of approximately $0.4 million in administrative and indirect operating expenses on the accompanying consolidated statements of operations during the fourth quarter of the fiscal year ended July 31, 2015. The offsetting allowance for loss on valuation of investment in ECSI was recorded in other assets on the accompanying consolidated balance sheets at July 31, 2015. Effective with consummation of the sale in October 2015, ECSI and its owners are no longer related parties to EEI or any of its consolidated subsidiaries. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Consolidation | Consolidation The consolidated financial statements include the accounts of EEI and its wholly owned and majority owned subsidiaries. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions as of the date of the financial statements, which affect the reported values of assets and liabilities and revenues and expenses and disclosures of contingent assets and liabilities. Actual results may differ from those estimates. |
Investment Securities Available for Sale | Investment Securities Available for Sale Investment securities available for sale are stated at fair value. Unrealized gains or losses related to investment securities available for sale are recorded in accumulated other comprehensive income, net of applicable income taxes in the accompanying condensed consolidated balance sheets and condensed consolidated statements of changes in shareholders' equity. The cost basis of securities sold is based on the specific identification method. Reclassification adjustments out of accumulated other comprehensive income resulting from disposition of investment securities available for sale are included within other income (expense) in the condensed consolidated statements of operations. Investment securities available for sale include mutual funds that are valued at the net asset value (“NAV”) of shares held by the Company at period end. Mutual funds held by the Company are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily NAV and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. Refer to Note 6 of these consolidated financial statements for additional disclosures regarding the Company’s investment securities available for sale. |
Revenue Recognition and Contract Receivables, Net | Revenue Recognition and Contract Receivables, Net Substantially all of the Company's revenue is derived from environmental consulting work, which is principally derived from the sale of labor hours. The consulting work is performed under a mix of fixed price, cost-type, and time and material contracts. Contracts are required from all customers. Revenue is recognized as follows: Contract Type Work Type Revenue Recognition Policy Time and materials Consulting As incurred at contract rates. Fixed price Consulting Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours. Cost-plus Consulting Costs as incurred plus fees. Fees are recognized as revenue using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts. Revenues reflected in the Company's consolidated statements of operations represent services rendered for which the Company maintains a primary contractual relationship with its customers. Included in revenues are certain services outside the Company's normal operations which the Company has elected to subcontract to other contractors. Time and material contracts are accounted for over the period of performance, in proportion to the costs of performance, predominately based on labor hours incurred. Revenue earned from fixed price and cost-plus contracts is recognized using the “percentage-of-completion” method, wherein revenue is recognized as project progress occurs. If an estimate of costs at completion on any contract indicates that a loss will be incurred, the entire estimated loss is charged to operations in the period the loss becomes evident. Substantially all of the Company's cost-type work is with federal governmental agencies and, as such, is subject to audits after contract completion. Under these cost-type contracts, provisions for adjustments to accrued revenue are recognized on a quarterly basis and based on past audit settlement history. Government audits have been completed and final rates have been negotiated through fiscal year 2010. The Company records an allowance for project disallowances in other accrued liabilities for potential disallowances resulting from government audits (refer to Note 12 of these consolidated financial statements). Allowances for project disallowances are recorded as adjustments to revenue when the amounts are estimable. Resolution of these amounts is dependent upon the results of government audits and other formal contract close-out procedures. Change orders can occur when changes in scope are made after project work has begun, and can be initiated by either the Company or its clients. Claims are amounts in excess of the agreed contract price which the Company seeks to recover from a client for customer delays and /or errors or unapproved change orders that are in dispute. Costs related to change orders and claims are recognized as incurred. Revenues and profit are recognized on change orders when it is probable that the change order will be approved and the amount can be reasonably estimated. Revenues are recognized only up to the amount of costs incurred on contract claims when realization is probable, estimable and reasonable support from the customer exists. All bid and proposal and other pre-contract costs are expensed as incurred. Out of pocket expenses such as travel, meals, field supplies, and other costs billed direct to contracts are included in both revenues and cost of professional services. Sales and cost of sales at the Company’s South American subsidiaries exclude tax assessments by governmental authorities, which are collected by the Company from its customers and then remitted to governmental authorities. Billed contract receivables represent amounts billed to clients in accordance with contracted terms, which have not been collected from clients as of the end of the reporting period. Billed contract receivables may include: (1) amounts billed for revenues from incurred costs and fees that have been earned in accordance with contractual terms; and (2) progress billings in accordance with contractual terms that include revenue not yet earned as of the end of the reporting period. Unbilled contract receivables result from: (i) revenues from incurred costs and fees which have been earned, but are not billed as of period-end; and (ii) differences between year-to-date provisional billings and year-to-date actual contract costs incurred. The Company reduces contract receivables by establishing an allowance for contract adjustments related to revenues that are deemed to be unrealizable, or that may become unrealizable in the future. The Company also reduces contract receivables by recording an Refer to Note 7 of these consolidated financial statements for additional disclosures regarding the Company’s contract receivables, net. |
Property, Buildings and Equipment, Depreciation and Amortization | Property, Buildings and Equipment, Depreciation and Amortization Property, buildings and equipment are stated at the lower of depreciated or amortized cost or fair value. Land and land improvements are not depreciated or amortized. Methods of depreciation or amortization and useful lives for all other long-lived assets are summarized in the following table. Depreciation / Amortization Method Useful Lives Buildings Straight-line 32-40 Years Building Improvements Straight-line 7-15 Years Field Equipment Straight-line 3-7 Years Computer equipment Straight-line and Accelerated 3-7 Years Computer software Straight-line 10 Years Office furniture and equipment Straight-line 3-7 Years Vehicles Straight-line 3-5 Years Leasehold improvements Straight-line (1) (1) Leasehold improvements are amortized for book purposes over the terms of the leases or the estimated useful lives of the assets, whichever is shorter. Expenditures for maintenance and repairs are charged to expense as incurred. Expenditures for improvements are capitalized when either the value or useful life of the related asset have been increased. When property or equipment is retired or sold, any gain or loss on the transaction is reflected in the current year's earnings. The Company capitalizes costs of software acquisition and development projects, including costs related to software design, configuration, coding, installation, testing and parallel processing. Capitalized software costs are recorded in fixed assets, net of accumulated amortization, on the consolidated balance sheets. Capitalized software development costs generally include: ● external direct costs of materials and services consumed to obtain or develop software for internal use; ● payroll and payroll-related costs for employees who are directly associated with and who devote time to the project, to the extent of time spent directly on the project; ● costs to obtain or develop software that allows for access or conversion of old data by new systems; ● costs of upgrades and/or enhancements that result in additional functionality for existing software; and ● interest costs incurred while developing internal-use software that could have been avoided if the expenditures had not been made. The costs of computer software obtained or developed for internal use is amortized on a straight-line basis over the estimated useful life of the software. Amortization begins when the software and all related software modules on which it is functionally dependent are ready for their intended use. Amortization expense is recorded in depreciation and amortization in the consolidated statements of operations. The following software-related costs are expensed as incurred and recorded in general and administrative expenses on the consolidated statements of operations: ● research costs, such as costs related to the determination of needed technology and the formulation, evaluation and selection of alternatives; ● costs to determine system performance requirements for a proposed software project; ● costs of selecting a vendor for acquired software; ● costs of selecting a consultant to assist in the development or installation of new software; ● internal or external training costs related to software; ● internal or external maintenance costs related to software; ● costs associated with the process of converting data from old to new systems, including purging or cleansing existing data, reconciling or balancing of data in the old and new systems and creation of new data; ● updates and minor modifications; and ● fees paid for general systems consulting and overall control reviews that are not directly associated with the development of software. Capitalized software costs are evaluated for recoverability/impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, including when: ● existing software is not expected to provide future service potential; ● it is no longer probable that software under development will be completed and placed in service; and ● costs of developing or modifying internal-use software significantly exceed expected development costs or costs of comparable third-party software. Refer to Note 8 of these consolidated financial statements for additional disclosures regarding the Company’s property, buildings and equipment. |
Goodwill | Goodwill Goodwill is included in other assets on the accompanying consolidated balance sheets. Goodwill is subject to an annual assessment for impairment by comparing the estimated fair values of reporting units to which goodwill has been assigned to the recorded book value of the respective reporting units. The estimated fair value of reporting units is calculated using a discounted cash flows methodology. Goodwill is also assessed for impairment between annual assessments whenever events or circumstances make it more likely than not that an impairment may have occurred. Refer to Note 9 of these consolidated financial statements for additional disclosures regarding the Company’s recorded goodwill. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses recoverability of the carrying value of long-lived assets by estimating the future net cash flows (undiscounted) expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value. Refer to Note 8 of these consolidated financial statements for additional disclosures regarding impairment of property, buildings and equipment. |
Income Taxes | Income Taxes The Company follows the asset and liability approach to account for income taxes. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Although realization is not assured, management believes it is more likely than not that the recorded net deferred tax assets will be realized. Since in some cases management has utilized estimates, the amount of the net deferred tax asset considered realizable could be reduced in the near term. The Company does not record United States income taxes applicable to undistributed earnings of foreign subsidiaries that the Company intends to indefinitely reinvest in the operations of those entities. Excess cash accumulated by any foreign subsidiary, beyond that necessary to fund operations or business expansion, may be repatriated to the U.S. at the discretion of Board of Directors of the respective entities. The Company would be required to accrue and pay taxes on any amounts repatriated to the U.S. from foreign subsidiaries. Income tax expense includes U.S. and international income taxes, determined using the applicable statutory rates. A deferred tax asset is recognized for all deductible temporary differences and net operating loss carryforwards, and a deferred tax liability is recognized for all taxable temporary differences. The Company has deferred tax assets, resulting principally from timing differences in the recognition of entity operating losses, contract reserves and accrued expenses. The Company periodically evaluates the likelihood of realization of deferred tax assets, and provides for a valuation allowance when necessary. U.S. GAAP prescribes a recognition threshold and measurement principles for financial statement disclosure of tax positions taken or expected to be taken on a tax return. A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions shall be recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the position will be sustained. Tax positions that meet the more likely than not threshold should be measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position, is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in administrative and indirect operating expenses. Refer to Note 12 of these consolidated financial statements for additional disclosures regarding income taxes. |
Defined Contribution Plans | Defined Contribution Plans EEI has a non-contributory defined contribution plan providing deferred benefits for substantially all of its employees (the “EEI Defined Contribution Plan”). The annual expense of the EEI Defined Contribution Plan is based on a percentage of eligible wages as authorized by EEI’s Board of Directors. EEI also has a supplemental retirement plan that provides post-retirement health care coverage for EEI’s founders and their spouses. As of July 31, 2016, one founder, his spouse and the spouse of a deceased founder were receiving healthcare coverage under this plan. The annual expense associated with this plan is determined based on discounted annual cost estimates over the estimated life expectancy of the founders and their spouses. Walsh Environmental Scientists & Engineers, LLC (“Walsh”), a wholly-owned subsidiary of EEI, has a defined contribution plan providing deferred benefits for substantially all of its employees and the employees of two if its majority owned subsidiaries (the “Walsh Defined Contribution Plan”). The respective entities contribute a percentage of eligible wages up to a maximum of 4%. Refer to Note 17 of these consolidated financial statements for additional disclosures regarding the Company’s defined contribution plans. |
Incentive Compensation | Incentive Compensation The Company expenses cash bonuses during the performance period to which they relate. The value of stock awards is expensed over the vesting period of the respective award. Share-based awards are measured at fair value on the respective grant date, based on the estimated number of awards that are expected to vest. Compensation cost for awards that vest is not reversed if the awards expire without being exercised. Refer to Note 14 of these consolidated financial statements for additional disclosures regarding the Company’s incentive compensation awards. |
Earnings per Share | Earnings per Share Basic and diluted earnings per share (“EPS”) are computed by dividing the net income (loss) attributable to Ecology and Environment, Inc. common shareholders by the weighted average number of common shares outstanding for the period. After consideration of all the rights and privileges of the Class A and Class B stockholders (refer to Note 14 of these consolidated financial statements), in particular the right of the holders of the Class B Common Stock to elect no less than 75% of the Board of Directors making it highly unlikely that the Company will pay a dividend on Class A Common Stock in excess of Class B Common Stock, the Company allocates undistributed earnings between the classes on a one-to-one basis when computing earnings per share. As a result, basic and fully diluted earnings per Class A and Class B share are equal amounts. The Company has determined that its unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. These securities are included in the computation of earnings per share pursuant to the two-class method. As a result, unvested restricted shares are included in the weighted average shares outstanding calculation. Refer to Note 18 of these consolidated financial statements for additional disclosures regarding the Company’s earnings per share. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income or loss represents the change in shareholders’ equity during a period, excluding changes arising from transactions with shareholders. Comprehensive income or loss includes net income (loss) from the consolidated statements of operations, plus (less) other comprehensive income (loss) during a reporting period. Other comprehensive income (loss) represents the net effect of accounting transactions that are recognized directly in shareholders’ equity, such as the unrealized net impact of currency translation adjustments from foreign operations and unrealized gains (losses) on available-for-sale securities. Refer to Note 15 of these consolidated financial statements for additional disclosures regarding accumulated other comprehensive income (loss). |
Foreign Currencies and Inflation | Foreign Currencies and Inflation The financial statements of foreign subsidiaries where the local currency is the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates during each reporting period for results of operations. Translation adjustments are deferred in accumulated other comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company recorded foreign currency transaction gains (losses) of less than $0.1 million, $0.1 million and less than $(0.1) million for the fiscal years ended July 31, 2016, 2015 and 2014, respectively. The financial statements of foreign subsidiaries located in highly inflationary economies are remeasured as if the functional currency were the U.S. dollar. The remeasurement of local currencies into U.S. dollars creates transaction adjustments which are included in net income. The Company did not record any highly inflationary economy translation adjustments for the fiscal years ended July 31, 2016, 2015 or 2014. |
Noncontrolling Interests | Noncontrolling Interests Earnings and other comprehensive income (loss) are separately attributed to both the controlling and noncontrolling interests. Purchases of noncontrolling interests are recorded as reductions of shareholders’ equity on the consolidated statements of shareholders’ equity. EPS is calculated based on net income (loss) attributable to the Company’s controlling interests. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Revenue Recognition Policy | Revenue is recognized as follows: Contract Type Work Type Revenue Recognition Policy Time and materials Consulting As incurred at contract rates. Fixed price Consulting Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours. Cost-plus Consulting Costs as incurred plus fees. Fees are recognized as revenue using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts. |
Summary of Methods of Depreciation or Amortization and Useful Lives for All Other Long-Lived Assets | Methods of depreciation or amortization and useful lives for all other long-lived assets are summarized in the following table. Depreciation / Amortization Method Useful Lives Buildings Straight-line 32-40 Years Building Improvements Straight-line 7-15 Years Field Equipment Straight-line 3-7 Years Computer equipment Straight-line and Accelerated 3-7 Years Computer software Straight-line 10 Years Office furniture and equipment Straight-line 3-7 Years Vehicles Straight-line 3-5 Years Leasehold improvements Straight-line (1) (1) Leasehold improvements are amortized for book purposes over the terms of the leases or the estimated useful lives of the assets, whichever is shorter. |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis is summarized by level within the fair value hierarchy in the following table. Balance at July 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets Investment securities available for sale $ 1,598 $ --- $ --- $ 1,598 Balance at July 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Assets Investment securities available for sale $ 1,434 $ --- $ --- $ 1,434 |
Contract Receivables, net (Tabl
Contract Receivables, net (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Contract Receivables, net [Abstract] | |
Contract Receivables, Net | Contract receivables, net are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Contract Receivables: Billed $ 19,552 $ 22,916 Unbilled 20,696 25,904 40,248 48,820 Allowance for doubtful accounts and contract adjustments (5,929 ) (5,954 ) Contract receivables, net $ 34,319 $ 42,866 |
Contract Receivables and Allowance for Doubtful Accounts and Contract Adjustments by Geographical Areas | Significant concentrations of contract receivables and the allowance for doubtful accounts and contract adjustments are summarized in the following table. Balance at July 31, 2016 Balance at July 31, 2015 Region Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments (in thousands) United States, Canada and South America $ 35,266 $ 1,034 $ 43,629 $ 1,043 Middle East and Africa 4,921 4,895 5,067 4,894 Asia 61 --- 124 17 Totals $ 40,248 $ 5,929 $ 48,820 $ 5,954 |
Allowance for Doubtful Accounts and Contract Adjustments | Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Balance at beginning of period $ 5,954 $ 6,508 $ 5,969 Net increase (decrease) due to adjustments in the allowance for: Contract adjustments (1) (577 ) (263 ) 474 Doubtful accounts (2) 552 (291 ) 95 Transfer of reserves (to) from allowance for project disallowances (3) --- --- (30 ) Balance at end of period $ 5,929 $ 5,954 $ 6,508 (1) Increases (decreases) to the allowance for contract adjustments on the consolidated balance sheets are recorded as (decreases) increases to revenue on the consolidated statements of operations. (2) Increases (decreases) to the allowance for doubtful accounts on the consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the consolidated statements of operations. (3) The allowance for project disallowances is included in other accrued liabilities on the consolidated balance sheets. Refer to Note 13 of these consolidated financial statements. |
Property, Buildings and Equip34
Property, Buildings and Equipment, net (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Property, Buildings and Equipment, net [Abstract] | |
Property, Buildings and Equipment, net | Property, buildings and equipment is summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Land and land improvements $ 393 $ 393 Buildings and building improvements 9,700 10,368 Field equipment 2,222 2,786 Computer equipment 4,439 4,685 Computer software 3,105 6,112 Office furniture and equipment 2,683 4,076 Vehicles 1,333 1,439 Other 543 693 24,418 30,552 Accumulated depreciation and amortization (18,324 ) (23,438 ) Property, buildings and equipment, net $ 6,094 $ 7,114 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Lines of Credit [Abstract] | |
Unsecured Lines of Credit | Unsecured lines of credit are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Outstanding cash draws, recorded as lines of credit on the accompanying consolidated balance sheets $ 312 $ 672 Outstanding letters of credit to support operations 2,187 1,144 Total amounts used under lines of credit 2,499 1,816 Remaining amounts available under lines of credit 36,496 30,993 Total approved unsecured lines of credit $ 38,995 $ 32,809 |
Debt and Capital Lease Obliga36
Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Debt and Capital Lease Obligations [Abstract] | |
Debt Inclusive of Capital Lease Obligations | Debt and capital lease obligations are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Various loans and advances (interest rates ranging from 3.25% to 12%) $ 217 $ 635 Capital lease obligations (interest rates ranging from 7.36% to 14%) 240 311 457 946 Current portion of long-term debt and capital lease obligations (240 ) (551 ) Long-term debt and capital lease obligations $ 217 $ 395 |
Aggregate Maturities of Long-term Debt and Capital Lease Obligations | The aggregate maturities of long-term debt and capital lease obligations as of July 31, 2016 are summarized in the following table. Fiscal Year Ended July 31, Amount (in thousands) 2017 $ 240 2018 171 2019 27 2020 13 Thereafter 6 Total $ 457 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Income Taxes [Abstract] | |
Income (Loss) Before Income Tax Provision | Income (loss) before income tax provision is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Domestic $ 4,558 $ 3,500 $ (4,305 ) Foreign (191 ) 4,469 3,858 $ 4,367 $ 7,969 $ (447 ) |
Components of Income Tax Provision | The income tax provision is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Current: Federal $ 1,155 $ 488 $ 86 State 177 80 63 Foreign 730 2,047 1,012 Total current 2,062 2,615 1,161 Deferred: Federal 587 1,379 (975 ) State 269 172 24 Foreign 841 (397 ) 133 Total deferred 1,697 1,154 (818 ) Total income tax provision $ 3,759 $ 3,769 $ 343 |
Reconciliation of Income Tax Provision to Effective Tax Rate | A reconciliation of the income tax provision using the statutory U.S. income tax rate compared with the actual income tax provision reported on the consolidated statements of operations is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Income tax (benefit) provision at the U.S. federal statutory income tax rate $ 1,485 $ 2,709 $ (152 ) Brazil valuation allowance 1,582 --- --- Income from "pass-through" entities taxable to noncontrolling partners (39 ) 31 35 International rate differences (145 ) (338 ) (144 ) Other foreign taxes, net of federal benefit 153 161 (34 ) Foreign dividend income 263 508 597 State taxes, net of federal benefit 312 166 28 Re-evaluation and settlements of tax contingencies --- --- (20 ) Peru non-deductible expenses 59 167 44 Canada and China valuation allowance 1 156 (83 ) Other permanent differences 88 209 72 Income tax provision, as reported on the consolidated statements of operations $ 3,759 $ 3,769 $ 343 |
Significant Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Deferred tax assets: Contract and other reserves $ 3,023 $ 3,257 Accrued compensation and expenses 734 836 Net operating loss carryforwards 1,265 737 Foreign and state income taxes 59 57 Foreign tax credit 296 296 Federal benefit from foreign tax audits 157 212 Other (26 ) 454 Deferred tax assets 5,508 5,849 Less: valuation allowance (2,278 ) (560 ) Net deferred tax assets $ 3,230 $ 5,289 Deferred tax liabilities: Federal expense on state deferred taxes $ (133 ) $ (225 ) Fixed assets and intangibles (759 ) (341 ) Federal expense from foreign accounting differences (213 ) (542 ) Net deferred tax liabilities $ (1,105 ) $ (1,108 ) |
Summary of Valuation Allowance | Activity within the deferred tax asset valuation allowance is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 (in thousands) Balance at beginning of period $ 560 $ 398 Additions during the period 1,765 176 Reductions during period (47 ) (14 ) Balance at end of period $ 2,278 $ 560 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Allowance for project disallowances $ 1,819 $ 2,243 Other 1,626 1,688 Total other accrued liabilities $ 3,445 $ 3,931 |
Allowance for Project Disallowances | Activity within the allowance for project disallowances is summarized in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands) Balance at beginning of period $ 2,243 $ 2,393 $ 2,663 Reduction of reserves recorded in prior fiscal years (424 ) (150 ) (300 ) Net change during the period, recorded as a transfer of reserves from allowance for doubtful accounts and contract adjustments --- --- 30 Balance at end of period $ 1,819 $ 2,243 $ 2,393 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are summarized in the following table. Balance at July 31, 2016 2015 (in thousands) Unrealized net foreign currency translation losses $ (2,176 ) $ (1,738 ) Unrealized net investment gains on available for sale investments 33 12 Total accumulated other comprehensive loss $ (2,143 ) $ (1,726 ) |
Operating Lease Commitments (Ta
Operating Lease Commitments (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Operating Lease Commitments [Abstract] | |
Future Minimum Rental Commitments | Future minimum rental commitments under operating leases as of July 31, 2016 are summarized in the following table. Fiscal Year Ended July 31, Amount (in thousands) 2017 $ 2,565 2018 2,289 2019 1,813 2020 1,278 2021 1,134 Thereafter 886 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic Earnings Per Share | The computation of basic and diluted EPS is included in the following table. Fiscal Year Ended July 31, 2016 2015 2014 (in thousands, except share and per share amounts) Net (loss) income attributable to Ecology and Environment, Inc. $ 886 $ 3,396 $ (1,383 ) Dividend declared 1,895 2,066 2,066 Undistributed earnings $ (1,009 ) $ 1,330 $ (3,449 ) Weighted-average common shares outstanding (basic and diluted) 4,289,993 4,287,775 4,283,984 Distributed earnings per share $ 0.44 $ 0.48 $ 0.48 Undistributed earnings per share (0.23 ) 0.31 (0.80 ) Total earnings per share $ 0.21 $ 0.79 $ (0.32 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | The Company reports segment information based on the geographic location of EEI and its direct and indirect subsidiaries. Revenue, net and long-lived assets by business segment are summarized in the following tables. Fiscal Years Ended July 31, 2016 2015 2014 (in thousands) Revenue, net, by Business Segment: EEI and its subsidiaries located in the United States $ 83,095 $ 88,715 $ 85,456 Subsidiaries located in South America (1) 22,722 38,220 42,569 Other foreign subsidiaries --- --- 402 (1) Significant South American revenues included revenues from subsidiaries located in Peru ($9.7 million, $22.8 million and $19.5 million for fiscal years 2016, 2015 and 2014, respectively), Brazil ($5.0 million, $8.0 million and $13.8 million for fiscal years 2016, 2015 and 2014, respectively) and Chile ($7.5 million, $6.5 million and $8.8 million for fiscal years 2016, 2014 and 2014, respectively). Balance at July 31, 2016 2015 2014 (in thousands) Long-lived assets by geographic location: EEI and its subsidiaries located in the United States $ 4,916 $ 5,901 $ 6,566 Subsidiaries located in South America 1,178 1,213 1,374 Other foreign subsidiaries --- --- 1 |
Organization and Basis of Pre43
Organization and Basis of Presentation (Details) | 12 Months Ended |
Jul. 31, 2016SubsidiaryCountryDiscipline | |
Organization and Basis of Presentation [Abstract] | |
Number of wholly owned and majority owned operating subsidiaries | Subsidiary | 7 |
Number of countries in which the company operates | 5 |
Number of disciplines | Discipline | 80 |
Minimum number of countries in which the company completed projects | 120 |
Recent Accounting Pronounceme44
Recent Accounting Pronouncements (Details) $ in Millions | Jul. 31, 2015USD ($) |
Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred income tax assets non current | $ 3.9 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2016USD ($)Founder | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | ||
Defined Contribution Plan Disclosure [Line Items] | ||||
Number of founders | Founder | 1 | |||
Employee contribution, percentage | 4.00% | |||
Minimum percentage right of Class B common stock holders to elect Board of Directors | 75.00% | |||
Foreign currency transaction gains (losses) | $ | $ 44 | $ 134 | $ (25) | |
Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employee contribution, percentage | 4.00% | |||
Time and Materials [Member] | Consulting [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenue recognition policy | As incurred at contract rates. | |||
Fixed Price [Member] | Consulting [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenue recognition policy | Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours. | |||
Cost-Plus [Member] | Consulting [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenue recognition policy | Costs as incurred plus fees. Fees are recognized as revenue using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts. | |||
Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation/ amortization method | Straight-line | |||
Buildings [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 32 years | |||
Buildings [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 40 years | |||
Building Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation/ amortization method | Straight-line | |||
Building Improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 7 years | |||
Building Improvements [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 15 years | |||
Field Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation/ amortization method | Straight-line | |||
Field Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 3 years | |||
Field Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 7 years | |||
Computer Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation/ amortization method | Straight-line and Accelerated | |||
Computer Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 3 years | |||
Computer Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 7 years | |||
Computer Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation/ amortization method | Straight-line | |||
Useful lives | 10 years | |||
Office Furniture and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation/ amortization method | Straight-line | |||
Office Furniture and Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 3 years | |||
Office Furniture and Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 7 years | |||
Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation/ amortization method | Straight-line | |||
Vehicles [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 3 years | |||
Vehicles [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives | 5 years | |||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation/ amortization method | Straight-line | |||
Useful lives | [1] | |||
[1] | Leasehold improvements are amortized for book purposes over the terms of the leases or the estimated useful lives of the assets, whichever is shorter. |
Significant Adjustments Durin46
Significant Adjustments During the Three Months Ended July 31, 2016 (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 31, 2016 | Jul. 31, 2016 | |
South America [Member] | Subsidiaries [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Increase in general and administrative expense | $ 0.6 | |
Increase in income tax provision | 0.1 | |
Increase (decrease) in net income attributable to Ecology and Environment, Inc. | 0.3 | |
U.S. and South American Operations [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Increase in income tax provision | 0.4 | $ 0.4 |
Increase (decrease) in net income attributable to Ecology and Environment, Inc. | $ (0.2) | $ (0.2) |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Maximum [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Cash and Cash Equivalents [Line Items] | ||
Maturity period considered for highly liquid instruments to be cash equivalents | 3 months | |
Money Market Funds [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments | $ 0.3 | $ 0.1 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Maximum [Member] | |||
Assets [Abstract] | |||
Gross unrealized gains (losses) | $ 100 | $ 100 | $ 100 |
Recurring [Member] | |||
Assets [Abstract] | |||
Investment securities available for sale | 1,598 | 1,434 | |
Recurring [Member] | Level 1 [Member] | |||
Assets [Abstract] | |||
Investment securities available for sale | 1,598 | 1,434 | |
Recurring [Member] | Level 2 [Member] | |||
Assets [Abstract] | |||
Investment securities available for sale | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | |||
Assets [Abstract] | |||
Investment securities available for sale | $ 0 | $ 0 |
Contract Receivables, net, Summ
Contract Receivables, net, Summary of Contract Receivables, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Contract Receivables, net [Abstract] | ||||
Billed Contracts Receivable | $ 19,552 | $ 22,916 | ||
Unbilled Contracts Receivable | 20,696 | 25,904 | ||
Contracts Receivable, Gross | 40,248 | 48,820 | ||
Allowance for doubtful accounts and contract adjustments | (5,929) | (5,954) | $ (6,508) | $ (5,969) |
Contract receivables, net | 34,319 | 42,866 | ||
Contractual retainage balance included under billed contract receivable | $ 900 | $ 500 | ||
Management anticipation for receivables collection | 1 year |
Contract Receivables, net, Cont
Contract Receivables, net, Contract Receivable Concentrations (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contracts Receivable, Gross | $ 40,248 | $ 48,820 | ||
Allowance for doubtful accounts and contract adjustments | $ 5,929 | $ 5,954 | $ 6,508 | $ 5,969 |
Contract receivables | 12.00% | 11.00% | ||
Allowance for doubtful accounts receivables | 83.00% | 82.00% | ||
United States, Canada and South America [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contracts Receivable, Gross | $ 35,266 | $ 43,629 | ||
Allowance for doubtful accounts and contract adjustments | 1,034 | 1,043 | ||
Middle East and Africa [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contracts Receivable, Gross | 4,921 | 5,067 | ||
Allowance for doubtful accounts and contract adjustments | 4,895 | 4,894 | ||
Asia [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contracts Receivable, Gross | 61 | 124 | ||
Allowance for doubtful accounts and contract adjustments | $ 0 | $ 17 |
Contract Receivables, net, Allo
Contract Receivables, net, Allowance for Doubtful Accounts and Contract Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance at beginning of period | $ 5,954 | $ 6,508 | $ 5,969 | |
Net increase (decrease) due to adjustments in the allowance for contract adjustments | [1] | (577) | (263) | 474 |
Net increase (decrease) due to adjustments in the allowance for doubtful accounts | [2] | 552 | (291) | 95 |
Transfer of reserves (to) from allowance for project disallowances | [3] | 0 | 0 | (30) |
Balance at end of period | 5,929 | 5,954 | 6,508 | |
Allowance for doubtful accounts | 5,954 | 5,954 | $ 6,508 | |
Brazil [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance at beginning of period | 400 | |||
Balance at end of period | 800 | 400 | ||
Allowance for doubtful accounts | $ 400 | $ 400 | ||
[1] | Increases (decreases) to the allowance for contract adjustments on the consolidated balance sheets are recorded as (decreases) increases to revenue on the consolidated statements of operations. | |||
[2] | Increases (decreases) to the allowance for doubtful accounts on the consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the consolidated statements of operations. | |||
[3] | The allowance for project disallowances is included in other accrued liabilities on the consolidated balance sheets. Refer to Note 12 of these consolidated financial statements. |
Property, Buildings and Equip52
Property, Buildings and Equipment, net (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2016USD ($)Building | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 24,418 | $ 30,552 | ||
Accumulated depreciation and amortization | (18,324) | (23,438) | ||
Property, buildings and equipment, net | 6,094 | 7,114 | ||
Insurance proceeds received | 358 | 0 | $ 0 | |
Number of buildings damaged | Building | 2 | |||
Land and Land Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 393 | 393 | ||
Building and Building Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 9,700 | 10,368 | ||
Field Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 2,222 | 2,786 | ||
Computer Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 4,439 | 4,685 | ||
Computer Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 3,105 | 6,112 | ||
Office Furniture and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 2,683 | 4,076 | ||
Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 1,333 | 1,439 | ||
Other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 543 | $ 693 | ||
Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, buildings and equipment, net | $ 1,900 | |||
Impairment loss | 400 | |||
Insurance proceeds received | $ 400 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Jul. 31, 2016 | Jul. 31, 2015 |
Goodwill [Abstract] | ||
Goodwill | $ 1.1 | $ 1.1 |
Lines of Credit (Details)
Lines of Credit (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Line of Credit Facility [Line Items] | ||
Outstanding cash draws, recorded as lines of credit on the accompanying consolidated balance sheets | $ 312 | $ 672 |
Outstanding letters of credit to support operations | 2,187 | 1,144 |
Total amounts used under lines of credit | 2,499 | 1,816 |
Remaining amounts available under lines of credit | 36,496 | 30,993 |
Total approved unsecured lines of credit | $ 38,995 | $ 32,809 |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 3.50% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 15.60% |
Debt and Capital Lease Obliga55
Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Debt Instrument [Line Items] | ||
Total | $ 457 | $ 946 |
Current portion of long-term debt and capital lease obligations | (240) | (551) |
Long-term debt and capital lease obligations | 217 | 395 |
Long-term Debt, by Maturity [Abstract] | ||
2,017 | 240 | |
2,018 | 171 | |
2,019 | 27 | |
2,020 | 13 | |
Thereafter | 6 | |
Total | 457 | 946 |
Various Loans and Advances [Member] | ||
Debt Instrument [Line Items] | ||
Total | 217 | 635 |
Long-term Debt, by Maturity [Abstract] | ||
Total | $ 217 | $ 635 |
Various Loans and Advances [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.25% | 3.25% |
Various Loans and Advances [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 12.00% | 12.00% |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 240 | $ 311 |
Long-term Debt, by Maturity [Abstract] | ||
Total | $ 240 | $ 311 |
Capital Lease Obligations [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.36% | 7.36% |
Capital Lease Obligations [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 14.00% | 14.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income (loss) from continuing operations before provision (benefit) for income taxes and noncontrolling interest [Abstract] | |||||||
Domestic | $ 4,558 | $ 3,500 | $ (4,305) | ||||
Foreign | (191) | 4,469 | 3,858 | ||||
Income (loss) before income tax provision | 4,367 | 7,969 | (447) | ||||
Current [Abstract] | |||||||
Federal | 1,155 | 488 | 86 | ||||
State | 177 | 80 | 63 | ||||
Foreign | 730 | 2,047 | 1,012 | ||||
Total current | 2,062 | 2,615 | 1,161 | ||||
Deferred [Abstract] | |||||||
Federal | 587 | 1,379 | (975) | ||||
State | 269 | 172 | 24 | ||||
Foreign | 841 | (397) | 133 | ||||
Total deferred | 1,697 | 1,154 | (818) | ||||
Total income tax provision | 3,759 | 3,769 | 343 | ||||
Reconciliation of income tax provision from statutory U.S. income tax rate to the effective income tax rate [Abstract] | |||||||
Income tax (benefit) provision at the U.S. federal statutory income tax rate | 1,485 | 2,709 | (152) | ||||
Income from "pass-through" entities taxable to noncontrolling partners | (39) | 31 | 35 | ||||
International rate differences | (145) | (338) | (144) | ||||
Other foreign taxes, net of federal benefit | 153 | 161 | (34) | ||||
Foreign dividend income | 263 | 508 | 597 | ||||
State taxes, net of federal benefit | 312 | 166 | 28 | ||||
Re-evaluation and settlements of tax contingencies | 0 | 0 | (20) | ||||
Peru non-deductible expenses | 59 | 167 | 44 | ||||
Other permanent differences | 88 | 209 | 72 | ||||
Total income tax provision | 3,759 | 3,769 | 343 | ||||
Deferred tax assets [Abstract] | |||||||
Contract and other reserves | $ 3,023 | $ 3,257 | |||||
Accrued compensation and expenses | 734 | 836 | |||||
Net operating loss carryforwards | 1,265 | 737 | |||||
Foreign and state income taxes | 59 | 57 | |||||
Foreign tax credit | 296 | 296 | |||||
Federal benefit from foreign tax audits | 157 | 212 | |||||
Other | (26) | 454 | |||||
Deferred tax assets | 5,508 | 5,849 | |||||
Less: Valuation allowance | (2,278) | (560) | (398) | (2,278) | (560) | $ (398) | |
Net deferred tax assets | 3,230 | 5,289 | |||||
Deferred tax liabilities [Abstract] | |||||||
Federal expense on state deferred taxes | (133) | (225) | |||||
Fixed assets and intangibles | (759) | (341) | |||||
Federal expense from foreign accounting differences | (213) | (542) | |||||
Net deferred tax liabilities | (1,105) | (1,108) | |||||
Amount of undistributed income that will not be indefinitely reinvested in foreign operations | 100 | 0 | |||||
Amount of undistributed income indefinitely reinvested in foreign operations | 6,900 | ||||||
Deferred tax assets valuation allowance [Abstract] | |||||||
Balance at beginning of period | 560 | 398 | |||||
Additions during the period | 1,765 | 176 | |||||
Reductions during period | (47) | (14) | |||||
Balance at end of period | 2,278 | 560 | 398 | ||||
Domestic operating income (losses) | (1,700) | ||||||
Gross unrecognized tax benefits that would impact effective tax rate in future periods | 100 | 100 | $ 100 | ||||
Unrecognized tax benefits, income tax penalties and interest accrued [Abstract] | |||||||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 100 | 100 | |||||
Maximum [Member] | |||||||
Unrecognized tax benefits, income tax penalties and interest expense [Abstract] | |||||||
Unrecognized tax benefits, income tax penalties and interest expense | 100 | 100 | 100 | ||||
Canada And China [Member] | |||||||
Reconciliation of income tax provision from statutory U.S. income tax rate to the effective income tax rate [Abstract] | |||||||
Valuation allowance | 1 | 156 | (83) | ||||
Brazil [Member] | |||||||
Reconciliation of income tax provision from statutory U.S. income tax rate to the effective income tax rate [Abstract] | |||||||
Valuation allowance | $ 1,582 | $ 0 | $ 0 | ||||
IRS [Member] | |||||||
Income Tax Examination [Line Items] | |||||||
Income tax examination, year subject to examination | 2,016 | 2,015 | 2,014 | 2,013 | |||
Accounting Standards Update 2015-17 [Member] | |||||||
Income Tax Examination [Line Items] | |||||||
Deferred income tax assets non current | $ 3,900 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | |
Other Accrued Liabilities [Line Items] | |||||
Allowance for project disallowances | $ 2,243 | $ 2,243 | $ 2,393 | $ 1,819 | $ 2,243 |
Other | 1,626 | 1,688 | |||
Total other accrued liabilities | $ 3,445 | $ 3,931 | |||
Allowance for Project Disallowances [Roll Forward] | |||||
Balance at beginning of period | 2,243 | 2,393 | 2,663 | ||
Reduction of reserves recorded in prior fiscal years | (424) | (150) | (300) | ||
Net change during the period, recorded as a transfer of reserves from allowance for doubtful accounts and contract adjustments | 0 | 0 | 30 | ||
Balance at end of period | 1,819 | 2,243 | 2,393 | ||
Maximum [Member] | |||||
Allowance for Project Disallowances [Roll Forward] | |||||
Reduction of reserves recorded in prior fiscal years | $ 100 | $ 100 | $ 100 |
Incentive Compensation (Details
Incentive Compensation (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($)shares | Jul. 31, 2016USD ($)Directorshares | Jul. 31, 2015USD ($)shares | Jul. 31, 2014USD ($) | Oct. 31, 2016shares | |
Class of Stock [Line Items] | ||||||
Incentive compensation expense | $ 37 | $ 59 | $ 353 | |||
Term of the award plan | 5 years | |||||
Share-based award, vesting period | 1 year | |||||
Excess tax benefits accumulated in capital in excess of par value | $ 0 | 100 | ||||
Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
Compensation expense | 100 | 100 | 400 | |||
Class A [Member] | ||||||
Class of Stock [Line Items] | ||||||
Incentive compensation expense | $ 1,700 | $ 3,000 | $ 1,400 | |||
Shares awarded (in shares) | shares | 17,386 | |||||
Shares authorized (in shares) | shares | 6,000,000 | 6,000,000 | ||||
Class A [Member] | Directors Chairman [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares awarded (in shares) | shares | 4,533 | |||||
Number of directors | Director | 3 | |||||
Class A [Member] | Directors Chairman [Member] | Subsequent Event [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares awarded (in shares) | shares | 4,450 | |||||
Shares authorized (in shares) | shares | 200,000 | |||||
Class A [Member] | Maximum [Member] | Directors Chairman [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares awarded, value | $ 100 | |||||
Class A [Member] | Maximum [Member] | Directors Chairman [Member] | Subsequent Event [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares awarded, value | $ 100 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Aug. 31, 2014USD ($) | Jul. 31, 2016USD ($)shares | Jul. 31, 2015USD ($)Installmentsshares | Jul. 31, 2014USD ($)TransactionInstallmentsshares | Aug. 31, 2010shares | |
Cash Dividends [Abstract] | |||||||
Cash dividends declared | $ 1,895 | $ 2,066 | $ 2,066 | ||||
Dividends paid | $ 1,000 | $ 1,000 | 2,100 | 2,100 | 2,100 | ||
Schedule of Equity Method Investments [Line Items] | |||||||
Purchase of noncontrolling interest | 0 | 50 | 689 | ||||
Other Comprehensive Loss, Net of Tax [Abstract] | |||||||
Unrealized net foreign currency translation losses | (2,176) | (1,738) | |||||
Unrealized net investment gains on available for sale investments | 33 | 12 | |||||
Total accumulated other comprehensive loss | (2,143) | (1,726) | |||||
Subsequent Event [Member] | |||||||
Cash Dividends [Abstract] | |||||||
Dividends paid | $ 900 | ||||||
Noncontrolling Interest [Member] | |||||||
Cash Dividends [Abstract] | |||||||
Cash dividends declared | $ 0 | $ 0 | $ 0 | ||||
Noncontrolling Interest [Member] | Gustavson [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Interest purchased | 7.20% | ||||||
Purchase of noncontrolling interest | $ 300 | ||||||
Purchase of noncontrolling interest, 1st installment | 100 | ||||||
Purchase of noncontrolling interest, three annual installments | $ 200 | ||||||
Number of annual installments | Installments | 3 | ||||||
Interest on promissory notes | 6.00% | ||||||
Increase in indirect ownership | 83.60% | ||||||
Noncontrolling Interest [Member] | Walsh [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Interest purchased | 10.50% | ||||||
Purchase of noncontrolling interest | $ 1,800 | ||||||
Number of separate transactions | Transaction | 3 | ||||||
Purchase of noncontrolling interest, 1st installment | $ 800 | ||||||
Purchase of noncontrolling interest, 2nd and 3rd installment | $ 500 | ||||||
Number of annual installments | Installments | 2 | ||||||
Interest on promissory notes | 3.25% | ||||||
Increase in indirect ownership | 100.00% | ||||||
Class A [Member] | |||||||
Class A and Class B common stock [Abstract] | |||||||
Percentage equity holders entitled to elect Board of Directors | 25.00% | ||||||
Minimum percentage of the number of outstanding Class A shares to combined classes of shares | 10.00% | ||||||
Voting power of Class A common share holders to the Class B common share holders | 0.1 | ||||||
Stock Repurchase [Abstract] | |||||||
Number of shares authorized to be repurchased (in shares) | shares | 122,918 | 200,000 | |||||
Remaining number of shares authorized to be repurchased (in shares) | shares | 77,082 | ||||||
Number of share acquired (in shares) | shares | 0 | 0 | 16,091 | ||||
Acquisition cost | $ 200 | ||||||
Class A [Member] | Noncontrolling Interest [Member] | Walsh [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Common stock issued, new shares (in shares) | shares | 0.5 | ||||||
Class B [Member] | |||||||
Class A and Class B common stock [Abstract] | |||||||
Number of Class B shares to be converted into Class A shares (in shares) | shares | 1 |
Operating Lease Commitments (De
Operating Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Operating Lease Commitments [Abstract] | |||
Gross rental expense | $ 3,500 | $ 3,500 | $ 3,900 |
Future minimum rental commitments [Abstract] | |||
2,017 | 2,565 | ||
2,018 | 2,289 | ||
2,019 | 1,813 | ||
2,020 | 1,278 | ||
2,021 | 1,134 | ||
Thereafter | $ 886 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Contribution Plans [Abstract] | |||
Employer matching contribution percentage | 100.00% | ||
Employee contribution | 4.00% | ||
Total plan expense | $ 1.4 | $ 1.2 | $ 1.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Net (loss) income attributable to Ecology and Environment, Inc. | $ 886 | $ 3,396 | $ (1,383) |
Dividend declared | 1,895 | 2,066 | 2,066 |
Undistributed earnings | $ (1,009) | $ 1,330 | $ (3,449) |
Weighted-average common shares outstanding (basic and diluted) (in shares) | 4,289,993 | 4,287,775 | 4,283,984 |
Distributed earnings per share (in dollars per share) | $ 0.44 | $ 0.48 | $ 0.48 |
Undistributed earnings per share (in dollars per share) | (0.23) | 0.31 | (0.80) |
Total earnings per share (in dollars per share) | $ 0.21 | $ 0.79 | $ (0.32) |
Segment Reporting (Details)
Segment Reporting (Details) - Reportable Geographical Components [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | ||
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 83,095 | $ 88,715 | $ 85,456 | |
Long-lived assets | 4,916 | 5,901 | 6,566 | |
South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | [1] | 22,722 | 38,220 | 42,569 |
Long-lived assets | 1,178 | 1,213 | 1,374 | |
Peru [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 9,700 | 22,800 | 19,500 | |
Brazil [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 5,000 | 8,000 | 13,800 | |
Chile [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 7,500 | 6,500 | 8,800 | |
Other Foreign Countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 0 | 0 | 402 | |
Long-lived assets | $ 0 | $ 0 | $ 1 | |
[1] | Significant South American revenues included revenues from subsidiaries located in Peru ($9.7 million, $22.8 million and $19.5 million for fiscal years 2016, 2015 and 2014, respectively), Brazil ($5.0 million, $8.0 million and $13.8 million for fiscal years 2016, 2015 and 2014, respectively) and Chile ($7.5 million, $6.5 million and $8.8 million for fiscal years 2016, 2015 and 2014, respectively). |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016USD ($)Employee | Jul. 31, 2016BRL | Jul. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||
Other accrued liabilities | $ | $ 3,445 | $ 3,931 | |
Pending Litigation [Member] | Ecology and Environment do Brasil LTDA [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | BRL | BRL 520,000 | ||
Number of employees individually served with notices of infraction | 4 | ||
Settled Litigation [Member] | Ecology and Environment do Brasil LTDA [Member] | |||
Loss Contingencies [Line Items] | |||
Number of employees individually served with claim of violations dismissed | 1 | ||
Number of employees that have fines assessed against them, which are being appealed | 3 | ||
Other accrued liabilities | $ | $ 300 |
Sale of Subsidiary (Details)
Sale of Subsidiary (Details) - ECSI LLC [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Oct. 31, 2015 | Jul. 31, 2015 | |
Subsidiary, Sale of Stock [Line Items] | ||
Sale of ownership interest to minority shareholders | $ 0.3 | |
Recognized loss on valuation of investment | $ (0.4) |