Ecology & Environment (EEI) 10-Q 13 Mar 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jan. 27, 2018	Feb. 28, 2018
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
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 27, 2018
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,008,829
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,292,775

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jan. 27, 2018	Jul. 31, 2017
Current assets:
Cash, cash equivalents and restricted cash	$ 17,707	$ 13,343
Investment securities available for sale	1,486	1,498
Contract receivables, net of allowance for doubtful accounts and contract adjustments of 1,957 and $2,125, respectively	28,365	35,107
Income tax receivable	750	1,293
Other current assets	2,427	2,119
Total current assets	50,735	53,360
Property, buildings and equipment, net of accumulated depreciation of $17,500 and $16,994, respectively	4,361	4,428
Deferred income taxes	733	1,203
Other assets	1,729	1,786
Total assets	57,558	60,777
Current liabilities:
Accounts payable	5,245	8,073
Lines of credit	435	581
Accrued payroll costs	5,727	6,338
Current portion of long-term debt and capital lease obligations	61	382
Billings in excess of revenue	3,363	2,850
Other accrued liabilities	2,488	2,645
Total current liabilities	17,319	20,869
Income taxes payable	329	31
Deferred income taxes	3	3
Long-term debt and capital lease obligations	61	66
Commitments and contingencies (Note 15)
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	17,608	17,608
Retained earnings	23,274	23,509
Accumulated other comprehensive loss	(1,946)	(2,018)
Treasury stock, at cost (Class A common: 27,320 shares; Class B common: 64,801 shares)	(1,037)	(1,037)
Total Ecology and Environment, Inc. shareholders' equity	37,943	38,106
Noncontrolling interests	1,903	1,702
Total shareholders' equity	39,846	39,808
Total liabilities and shareholders' equity	57,558	60,777
Class A [Member]
Shareholders' equity:
Common stock	30	30
Class B [Member]
Shareholders' equity:
Common stock	$ 14	$ 14

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jan. 27, 2018	Jul. 31, 2017
Current assets:
Allowance for doubtful accounts and contract adjustments	$ 1,957	$ 2,125
Accumulated depreciation	$ 17,500	$ 16,994
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)	3,036,149	3,036,149
Treasury stock (in shares)	27,320	27,320
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)	1,357,576	1,357,576
Treasury stock (in shares)	64,801	64,801

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Condensed Consolidated Statements of Operations (Unaudited) [Abstract]
Revenue, net	$ 25,083	$ 24,726	$ 52,165	$ 50,041
Cost of professional services and other direct operating expenses	9,078	9,030	18,559	18,440
Subcontract costs	5,769	5,347	11,498	9,358
Administrative and indirect operating expenses	7,290	7,478	14,748	14,860
Marketing and related costs	2,938	2,344	5,989	5,209
Depreciation and amortization	268	282	537	516
(Loss) income from operations	(260)	245	834	1,658
Net interest expense	(9)	(14)	(13)	(12)
Net foreign exchange loss	(29)	(60)	(26)	(72)
Other income (expense)	12	(6)	11	10
(Loss) income before income tax provision	(286)	165	806	1,584
Income tax provision	311	504	755	1,073
Net (loss) income	(597)	(339)	51	511
Net (income) loss attributable to noncontrolling interests	(171)	21	(286)	59
Net (loss) income attributable to Ecology and Environment, Inc.	$ (768)	$ (318)	$ (235)	$ 570
Net (loss) income per common share: basic and diluted (in dollars per share)	$ (0.18)	$ (0.07)	$ (0.05)	$ 0.13
Weighted average common shares outstanding: basic and diluted (in shares)	4,301,604	4,294,102	4,301,604	4,293,417

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract]
Net (loss) income including noncontrolling interests	$ (597)	$ (339)	$ 51	$ 511
Foreign currency translation adjustments	166	70	195	124
Unrealized investment losses, net	(13)	(20)	(16)	(31)
Comprehensive (loss) income	(444)	(289)	230	604
Comprehensive (income) loss attributable to noncontrolling interests	(264)	4	(393)	(5)
Comprehensive (loss) income attributable to Ecology and Environment, Inc.	$ (708)	$ (285)	$ (163)	$ 599

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jan. 27, 2018	Jan. 28, 2017
Cash flows from operating activities:
Net income	$ 51	$ 511
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	537	516
Deferred income tax benefit	436	2,351
Tax impact of share-based compensation	0	(6)
Gain on sale of assets and investment securities	(1)	(3)
Net recovery of contract adjustments and doubtful accounts	(35)	(1,154)
Net bad debt (recovery) expense	(130)	167
Changes in:
- contract receivables	7,248	3,108
- other current assets	(300)	(392)
- income tax receivable	543	(2,098)
- other non-current assets	60	(25)
- accounts payable	(1,996)	(149)
- accrued payroll costs	(640)	(971)
- income taxes payable	294	(3)
- billings in excess of revenue	506	942
- other accrued liabilities	(250)	352
Net cash provided by operating activities	6,323	3,146
Cash flows from investing activities:
Proceeds from sale of subsidiaries	0	75
Purchase of property, buildings and equipment	(425)	(183)
Proceeds from sale of equipment	1	9
Purchase of investment securities	7	(15)
Net cash used in investing activities	(417)	(114)
Cash flows from financing activities:
Dividends paid	(860)	(861)
Repayment of debt	(358)	(159)
Net (repayments) borrowings under lines of credit	(152)	286
Distributions to noncontrolling interests	(192)	(673)
Net cash used in financing activities	(1,562)	(1,407)
Effect of exchange rate changes on cash and cash equivalents	20	74
Net increase in cash, cash equivalents and restricted cash	4,364	1,699
Cash, cash equivalents and restricted cash at beginning of period	13,343	10,161
Cash, cash equivalents and restricted cash at end of period	17,707	11,860
Cash paid during the period for:
Interest	42	77
Income taxes	78	315
Supplemental disclosure of non-cash items:
Dividends declared and not paid	0	859
Proceeds from capital lease obligations	$ 33	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - 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, 2016	$ 30	$ 14	$ 16,606	$ 22,237	$ (2,143)	$ (1,172)	$ 2,333
Balance (in shares) at Jul. 31, 2016	3,035,778	1,357,947				104,073
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 0	$ 0	0	3,015	0	$ 0	(62)
Foreign currency translation adjustment	0	0	0	0	143	0	87
Cash dividends declared	0	0	0	(1,719)	0	0	0
Unrealized investment losses, net	0	0	0	0	(18)	0	0
Issuance of stock under stock award plan	$ 0	$ 0	4	0	0	$ 135	0
Issuance of stock under stock award plan (in shares)	0	0				(11,952)
Tax impact of share based compensation	$ 0	$ 0	(6)	0	0	$ 0	0
Tax impact of noncontrolling interests	0	0	0	(24)	0	0	24
Distributions to noncontrolling interests	0	0	0	0	0	0	(680)
Adjustment to deferred income taxes related to acquisition of noncontrolling interests in prior years	0	0	1,004	0	0	0	0
Balance at Jul. 31, 2017	$ 30	$ 14	17,608	23,509	(2,018)	$ (1,037)	1,702	$ 39,808
Balance (in shares) at Jul. 31, 2017	3,035,778	1,357,947				92,121
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 0	$ 0	0	(235)	0	$ 0	286	51
Foreign currency translation adjustment	0	0	0	0	88	0	107	195
Cash dividends declared								0
Unrealized investment losses, net	0	0	0	0	(16)	0	0	(16)
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)	371	(371)				0
Distributions to noncontrolling interests	$ 0	$ 0	0	0	0	$ 0	(192)
Balance at Jan. 27, 2018	$ 30	$ 14	$ 17,608	$ 23,274	$ (1,946)	$ (1,037)	$ 1,903	$ 39,846
Balance (in shares) at Jan. 27, 2018	3,036,149	1,357,576				92,121

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical)	12 Months Ended
	Jul. 31, 2017$ / shares
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) [Abstract]
Cash dividends declared (in dollars per share)	$ 0.40

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jan. 27, 2018
Organization and Basis of Presentation [Abstract]
Organization and Basis of Presentation	1. Organization and Basis of Presentation Ecology and Environment, Inc., (“EEI”) 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 8 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 more than 50,000 projects for a wide variety of clients in more than 120 countries, providing environmental solutions in nearly every ecosystem on the planet. The Company prepared the condensed consolidated financial statements included herein, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). 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. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), including a description of significant accounting policies, have been condensed or omitted pursuant to SEC rules and regulations. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2017 filed with the Securities and Exchange Commission (the “2017 Annual Report”). The accounting policies followed by the Company for preparation of the consolidated financial statements included in the 2017 Annual Report were also followed for this interim report. The condensed consolidated results of operations for the three and six months ended January 27, 2018 are not necessarily indicative of the results for any subsequent period or the entire fiscal year ending July 31, 2018.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jan. 27, 2018
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) establishes changes to U.S. GAAP in the form of accounting standards updates (“ASUs”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs when they are issued by FASB. ASUs listed below were either adopted by the Company during its current fiscal year, or will be adopted as each ASU becomes effective during future reporting periods. ASUs not listed below were assessed to be not applicable to the Company’s operations or are expected to have minimal impact on the Company’s consolidated financial position or results of operations. Accounting Pronouncements Adopted During the Six Months Ended January 27, 2018 The Company did not adopt any ASUs during the six months ended January 27, 2018 that had, or are expected to have, a material impact on its consolidated financial position or results of operations. Accounting Pronouncements Not Yet Adopted as of January 27, 2018 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. Subsequent to the issuance of ASU 2014-09, FASB issued 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 (the “modified retrospective approach”), and includes a number of optional practical expedients that entities may elect to apply. The Company expects to adopt the revenue recognition guidance using the modified retrospective approach. ASU 2014-09 will be effective for the Company beginning August 1, 2018. The Company is comparing historical accounting policies and practices to the new standard, has made substantial progress on its detailed review of contracts for its operations in the United States, and has begun the evaluation at all of its foreign subsidiaries. Management continues to assess the impact of ASU 2014-09. 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. This accounting standard update will be effective for the Company beginning 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”). 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. 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. ASU 2016-02 will be effective for the Company beginning August 1, 2019. Early adoption is permitted. Management is currently assessing the provisions of ASU 2016-02. The Company anticipates that adoption of ASU 2016-02 will result in the addition of material right-of-use assets and lease liabilities to the Company’s consolidated balance sheet in addition to expanding required disclosures. Management has not yet estimated the impact of ASU 2016-02 on the Company’s consolidated statements of operations and cash flows. 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. ASU No. 2016-13 will be effective for the Company beginning August 1, 2020. Early adoption is permitted for the Company beginning August 1, 2019. Management is currently assessing the provisions of ASU 2016-13 and has not yet estimated its impact on the Company’s consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The amendments included in this update simplify the subsequent measurement of goodwill by revising the steps required during the registrant’s annual goodwill impairment test. This accounting standard update will be effective for the Company beginning August 1, 2021. Management is currently assessing the provisions of ASU 2017-04 and has not yet estimated its impact on the Company’s consolidated financial statements.

U.S. Tax Reform

U.S. Tax Reform	6 Months Ended
	Jan. 27, 2018
U.S. Tax Reform [Abstract]
U.S. Tax Reform	3. U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revised U.S. corporate income tax regulations including, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. The changes included in the Tax Act are broad and complex. The tax provision recorded for the three and six months ended January 27, 2018 reflects management’s estimates of the Tax Act’s impacts. The SEC has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize and record the related tax impacts. Management intends to finalize and record any adjustments related to implementation of Tax Act provisions by the end of the Company’s fiscal year ending July 31, 2018. The final transition impacts of the Tax Act may differ from current estimates due to, among other things, changes in interpretations of the Tax Act, subsequent legislative action to further revise the Tax Act, changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or updates or changes to the Company’s estimates utilized to calculate the transition impacts. Specific impacts of the Tax Act are summarized in Note 9 of these condensed consolidated financial statements.

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	6 Months Ended
	Jan. 27, 2018
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash, Cash Equivalents and Restricted Cash	4. Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Cash and cash equivalents $ 17,412 $ 13,029 Restricted cash 295 314 Total cash, cash equivalents and restricted cash $ 17,707 $ 13,343 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 $0.4 million and $0.2 million were included in cash and cash equivalents in the table above at January 27, 2018 and July 31, 2017, respectively. The Company is required to maintain restricted cash on deposit in Brazil as collateral for pending litigation matters.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jan. 27, 2018
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	5. 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 Company classifies assets and liabilities within the fair value hierarchy 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 Company monitors the availability of observable market data 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 Company reports the transfer as of the beginning of the reporting period. The Company evaluated the significance of transfers between levels based upon the nature of the financial instrument. There were no transfers in or out of levels 1, 2 or 3, respectively during the six months ended January 27, 2018 or the fiscal year ended July 31, 2017. The carrying amount of cash, cash equivalents and restricted cash approximated fair value at January 27, 2018 and July 31, 2017. These assets were classified as level 1 instruments at both dates. Investment securities available for sale of $1.5 million at January 27, 2018 and July 31, 2017 primarily included mutual funds invested in U.S. municipal bonds, which the Company may immediately redeem without prior notice. These mutual funds are valued at the net asset value (“NAV”) of shares held by the Company at period end as a practical expedient to estimate fair value. These mutual funds are deemed to be actively traded, are required to publish their daily NAV and are required to transact at that price. 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. The Company had unrealized losses of less than $0.1 million recorded in accumulated other comprehensive income during the six months ended January 27, 2018 and January 28, 2017. Reclassification adjustments out of accumulated other comprehensive income are included within gain on sale of assets on the accompanying condensed consolidated statements of operations. The Company did not record any sales of investment securities during the six months ended January 27, 2018 and January 28, 2017. 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 January 27, 2018 and July 31, 2017. These liabilities were classified as level 2 instruments at both dates. There were no financial instruments classified as level 3 at January 27, 2018 or July 31, 2017.

Revenue and Contract Receivable

Revenue and Contract Receivables, net	6 Months Ended
	Jan. 27, 2018
Revenue and Contract Receivables, net [Abstract]
Revenue and Contract Receivables, net	6. Revenue and Contract Receivables, net Revenue Recognition The Company derives substantially all of its revenue from environmental consulting work, principally 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. The Company recognizes revenue 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 condensed 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 that the Company has elected to subcontract to other contractors. The Company accounts for time and material contracts 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 2014. The Company records an allowance for project disallowances in other accrued liabilities for potential disallowances resulting from government audits (refer to Note 10 of these condensed 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. The Company recognizes costs related to change orders and claims 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. The Company expenses all bid and proposal and other pre-contract costs 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 the Company collects from its customers and remits to governmental authorities. Billed contract receivables represent amounts billed to clients in accordance with contracted terms but not collected as of the end of the reporting period. Billed contract receivables may include: (i) amounts billed for revenues from incurred costs and fees that have been earned in accordance with contractual terms; and (ii) 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 Contract Receivables, Net Contract receivables, net are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Contract Receivables: Billed $ 14,858 $ 16,033 Unbilled 15,464 21,199 30,322 37,232 Allowance for doubtful accounts and contract adjustments (1,957 ) (2,125 ) Contract receivables, net $ 28,365 $ 35,107 Billed contract receivables included contractual retainage balances of $1.2 million and $1.1 million at January 27, 2018 and July 31, 2017, respectively. Management anticipates that the Company will substantially bill and collect the unbilled receivables and retainage balances outstanding at January 27, 2018 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 January 27, 2018 Balance at July 31, 2017 Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments (in thousands) EEI and its subsidiaries located in the U.S. $ 17,375 $ 595 $ 25,528 $ 797 Subsidiaries located in South America 12,947 1,362 11,704 1,328 Totals $ 30,322 $ 1,957 $ 37,232 $ 2,125 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. The allowance for doubtful accounts and contract adjustments as a percentage of contract receivables at the Company’s subsidiaries located in South America was 11% at January 27, 2018 and July 31, 2017. During the first six months of fiscal year 2018, unstable local economies continued to adversely impact certain of the Company’s South American clients, resulting in increased collection risks and the Company incurring project costs that it may not recover for several months. Management is monitoring any adverse trends or events that may impact the realizability of recorded receivables from our South American clients. Allowance for Doubtful Accounts and Contract Adjustments Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table. Three Months Ended Six Months Ended January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 (in thousands) Balance at beginning of period $ 2,127 $ 6,882 $ 2,125 $ 6,792 Net increase (decrease) due to adjustments in the allowance for: Contract adjustments (1) (35 ) (4,895 ) (35 ) (4,940 ) Doubtful accounts (2) (135 ) 60 (133 ) 195 Balance at end of period $ 1,957 $ 2,047 $ 1,957 $ 2,047 (1) Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations. (2) Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations. During the three months ended January 28, 2017, the Company wrote-off $4.9 million of aged and fully reserved contract receivable balances related to a specific project in the Middle East, based on management’s assessment that cash collections were not likely.

Lines of Credit

Lines of Credit	6 Months Ended
	Jan. 27, 2018
Lines of Credit [Abstract]
Lines of Credit	7. Lines of Credit Unsecured lines of credit are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets $ 435 $ 581 Short-term loans issued under lines of credit --- 200 Outstanding letters of credit to support operations 1,908 2,511 Total amounts used under lines of credit 2,343 3,292 Remaining amounts available under lines of credit 37,783 36,529 Total approved unsecured lines of credit $ 40,126 $ 39,821 As of January 27, 2018, contractual interest rates for lines of credit ranged from 3.37% to 4.12% for the Company’s U.S. operations and 9.12% to 13.42% for the Company’s South American operations. 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	6 Months Ended
	Jan. 27, 2018
Debt and Capital Lease Obligations [Abstract]
Debt and Capital Lease Obligations	8. Debt and Capital Lease Obligations Debt and capital lease obligations are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Bank loan (interest rate 2.94% at January 27, 2018) $ 39 $ 328 Capital lease obligations (interest rates ranging from 7.36% to 15.09% at January 27, 2018) 83 120 122 448 Current portion of long-term debt and capital lease obligations (61 ) (382 ) Long-term debt and capital lease obligations $ 61 $ 66 The aggregate maturities of long-term debt and capital lease obligations as of January 27, 2018 are summarized in the following table. Twelve Months Ended January 27, Amount (in thousands) 2019 $ 61 2020 37 2021 24 Total $ 122

Income Taxes

Income Taxes	6 Months Ended
	Jan. 27, 2018
Income Taxes [Abstract]
Income Taxes	9. Income Taxes The estimated effective tax rate was 93.7% and 67.7% for the six months ended January 27, 2018 and January 28, 2017, respectively. During interim reporting periods, the effective tax rate may be impacted by changes in the mix of forecasted income from the U.S. and foreign jurisdictions where the Company operates, by changes in tax rates within those jurisdictions, or by significant unusual or infrequent items that could change assumptions used in the calculation of the income tax provision. The Tax Act (refer to Note 3 of these condensed consolidated financial statements) lowered the Company’s statutory federal tax rate from 34% (effective through December 31, 2017) to 21% (effective January 1, 2018). As the Company has a July 31 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in an average statutory federal tax rate of approximately 26% for the fiscal year ending July 31, 2018, and 21% for subsequent fiscal years. Due to the Company’s minimal loss from U.S. operations, the reduction in the statutory federal tax rate did not have a material impact on the income tax provision related to pre-tax income during the three months ended January 27, 2018. The reduction of the statutory federal tax rate also resulted in revaluation of the Company’s U.S. deferred tax assets and liabilities. Revaluation is based on the tax rates at which the deferred tax assets and liabilities are expected to reverse in the future, which is generally 21%. The Company recorded an estimated net deferred tax expense of $0.3 million during the three months ended January 27, 2018 as a result of revaluation of deferred tax assets and liabilities. The Tax Act includes provisions for a territorial federal tax system that: · imposes a U.S. federal tax on historical cumulative earnings of foreign subsidiaries, replacing the previous system of taxing the earnings of foreign subsidiaries only as they were repatriated to the U.S. in the form of dividends; · eliminates or reduces the ability to utilize certain foreign tax credits that existed prior to enactment of the Tax Act; and · provides for a deduction for dividends received from foreign subsidiaries. The Company recorded net estimated federal tax expense of $0.1 million related to these territorial tax provisions during the three months ended January 27, 2018, representing the net of a one-time transition tax of $0.3 million on cumulative earnings of foreign subsidiaries, offset by $0.2 million of benefit from outstanding unpaid dividends from a foreign subsidiary. There are other transitional impacts of the Tax Act, certain of which were estimated to have an immaterial impact on the income tax provision for the three and six months ended January 27, 2018, and certain of which will become effective during future fiscal years. The effective tax rate for the six months ended January 28, 2017 includes the tax impact of the Company’s portion of dividends declared by its majority owned subsidiary in Chile and reversal of a deferred tax asset previously maintained by the Company’s majority owned subsidiary in Peru.

Other Accrued Liabilities

Other Accrued Liabilities	6 Months Ended
	Jan. 27, 2018
Other Accrued Liabilities [Abstract]
Other Accrued Liabilities	10. Other Accrued Liabilities Other accrued liabilities are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Allowance for project disallowances $ 687 $ 687 Dividends payable to noncontrolling shareholders of majority-owned subsidiaries 557 517 Other accrued expenses 1,244 1,441 Total other accrued liabilities $ 2,488 $ 2,645 The allowance for project disallowances represents potential disallowances of amounts billed and collected resulting from contract close-outs and government audits. Allowances for project disallowances are recorded when the amounts are estimable, and may be revised during subsequent reporting periods when estimates of settlement amounts become more certain, or when actual settlements are finalized. Three Months Ended Six Months Ended January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 (in thousands) Balance at beginning of period $ 687 $ 1,173 $ 687 $ 1,819 Reduction of settlement estimate recorded in prior periods --- (462 ) --- (1,108 ) Balance at end of period $ 687 $ 711 $ 687 $ 711 Dividends payable to noncontrolling shareholders of majority-owned subsidiaries includes dividends declared by a subsidiary in South America during the first half of fiscal year 2017. As of January 28, 2018, management anticipates that these dividends payable will be paid within one year.

Stock Award Plan

Stock Award Plan	6 Months Ended
	Jan. 27, 2018
Stock Award Plan [Abstract]
Stock Award Plan	11 . 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, are referred to as the “Stock Award Plan”. The Stock Award Plan is not a qualified plan under 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. In October 2016, the Company’s Board of Directors adopted the current supplemental plan (the “2016 Stock Award Plan”). The 2016 Stock Award 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. As of January 27, 2018, the Company issued a total of 7,502 Class A shares under the 2016 Stock Award Plan, valued at less than $0.1 million, to four directors as a portion of their annual compensation. These shares will fully vest in April 2018 upon expiration of certain restrictions regarding transfer of the shares. EEI recorded non-cash compensation expense of less than $0.1 million during the six months ended January 27, 2018 and January 28, 2017.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jan. 27, 2018
Shareholders' Equity [Abstract]
Shareholders' Equity	12. 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 Cash Dividends The Company declared and accrued $0.9 million of cash dividends in January 2017, which were paid in February 2017. The Company paid dividends of $0.9 million in August 2017 and 2016 that were declared and accrued in prior periods. The Company declared and paid $0.9 million of cash dividends in February 2018. Stock Repurchase Plan 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 January 27, 2018, 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 the six months ended January 27, 2018 or January 28, 2017. Noncontrolling Interests The Company discloses noncontrolling interests as a separate component of consolidated shareholders’ equity on the accompanying condensed consolidated balance sheets. Earnings and other comprehensive income (loss) are separately attributed to both the controlling and noncontrolling interests. The Company calculates earnings per share based on net income (loss) attributable to the Company’s controlling interests. The Company considers acquiring additional interests in majority owned subsidiaries when noncontrolling shareholders express their intent to sell their interests. The Company settles and records acquisitions of noncontrolling interests at amounts that approximate fair value. Purchases of noncontrolling interests are recorded as reductions of shareholders’ equity on the condensed consolidated statements of shareholders’ equity. The Company did not acquire additional interest in any of its majority-owned subsidiaries during the six months ended January 27, 2018 or January 28, 2017. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Unrealized net foreign currency translation losses $ (1,945 ) $ (2,033 ) Unrealized net investment (losses) gains on available for sale investments (1 ) 15 Total accumulated other comprehensive loss $ (1,946 ) $ (2,018 )

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jan. 27, 2018
Earnings Per Share [Abstract]
Earnings Per Share	13. Earnings Per Share The Company calculates basic and diluted earnings per share by dividing the net income 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 summarized in Note 11, 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 two classes of stock 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 shall be included in the computation of earnings per share pursuant to the two-class method. The resulting impact was to include unvested restricted shares in the weighted average shares outstanding calculation. The computation of earnings per share is included in the following table. Three Months Ended Six Months Ended January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 (in thousands, except share and per share amounts) Net (loss) income attributable to Ecology and Environment, Inc. $ (768 ) $ (318 ) $ (235 ) $ 570 Dividends declared --- (859 ) --- (859 ) Balance at end of period $ (768 ) $ (1,177 ) $ (235 ) $ (289 ) Weighted-average common shares outstanding - basic and diluted 4,301,604 4,294,102 4,301,604 4,293,417 Distributed earnings per share - basic and diluted $ --- $ 0.20 $ --- $ 0.20 Undistributed earnings (distributions in excess of earnings) per share - basic and diluted (0.18 ) (0.27 ) (0.05 ) (0.07 ) Net income per common share - basic and diluted $ (0.18 ) $ (0.07 ) $ (0.05 ) $ 0.13

Segment Reporting

Segment Reporting	6 Months Ended
	Jan. 27, 2018
Segment Reporting [Abstract]
Segment Reporting	14. Segment Reporting The Company reports segment information based on the geographic location of EEI and its direct and indirect subsidiaries (for revenues) and the location of its offices (for long-lived assets). Revenue, net by business segment is summarized in the following table. Three Months Ended Six Months Ended January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 (in thousands) EEI and its subsidiaries located in the U.S. $ 17,050 $ 18,950 $ 36,748 $ 39,265 Subsidiaries located in South America: Peru 2,690 1,675 5,689 2,737 Chile 3,128 2,096 5,242 4,057 Brazil 2,145 1,931 4,395 3,838 Other 70 74 91 144 8,033 5,776 15,417 10,776 Total revenue, net $ 25,083 $ 24,726 $ 52,165 $ 50,041 Long-lived assets by business segment are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) EEI and its subsidiaries located in the United States $ 3,095 $ 3,293 Subsidiaries located in South America 1,266 1,135

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jan. 27, 2018
Commitments and Contingencies [Abstract]
Commitments and Contingencies	15. 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 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 January 27, 2018, the Company maintained a reserve of approximately $0.4 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 the six months ended January 27, 2018 or during the fiscal year ended July 31, 2017.

Cash, Cash Equivalents and Re24

Cash, Cash Equivalents and Restricted Cash (Tables)	6 Months Ended
	Jan. 27, 2018
Cash, Cash Equivalents and Restricted Cash [Abstract]
Summary of Cash, Cash Equivalents and Restricted Cash	Cash, cash equivalents and restricted cash are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Cash and cash equivalents $ 17,412 $ 13,029 Restricted cash 295 314 Total cash, cash equivalents and restricted cash $ 17,707 $ 13,343

Revenue and Contract Receivab25

Revenue and Contract Receivables, net (Tables)	6 Months Ended
	Jan. 27, 2018
Revenue and Contract Receivables, net [Abstract]
Revenue Recognition	The Company recognizes revenue 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.
Contract Receivables, Net	Contract receivables, net are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Contract Receivables: Billed $ 14,858 $ 16,033 Unbilled 15,464 21,199 30,322 37,232 Allowance for doubtful accounts and contract adjustments (1,957 ) (2,125 ) Contract receivables, net $ 28,365 $ 35,107
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 January 27, 2018 Balance at July 31, 2017 Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments Total Billed and Unbilled Contract Receivables Allowance for Doubtful Accounts and Contract Adjustments (in thousands) EEI and its subsidiaries located in the U.S. $ 17,375 $ 595 $ 25,528 $ 797 Subsidiaries located in South America 12,947 1,362 11,704 1,328 Totals $ 30,322 $ 1,957 $ 37,232 $ 2,125
Allowance for Doubtful Accounts and Contract Adjustments	Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table. Three Months Ended Six Months Ended January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 (in thousands) Balance at beginning of period $ 2,127 $ 6,882 $ 2,125 $ 6,792 Net increase (decrease) due to adjustments in the allowance for: Contract adjustments (1) (35 ) (4,895 ) (35 ) (4,940 ) Doubtful accounts (2) (135 ) 60 (133 ) 195 Balance at end of period $ 1,957 $ 2,047 $ 1,957 $ 2,047 (1) Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations. (2) Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations.

Lines of Credit (Tables)

Lines of Credit (Tables)	6 Months Ended
	Jan. 27, 2018
Lines of Credit [Abstract]
Unsecured Lines of Credit	Unsecured lines of credit are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets $ 435 $ 581 Short-term loans issued under lines of credit --- 200 Outstanding letters of credit to support operations 1,908 2,511 Total amounts used under lines of credit 2,343 3,292 Remaining amounts available under lines of credit 37,783 36,529 Total approved unsecured lines of credit $ 40,126 $ 39,821

Debt and Capital Lease Obliga27

Debt and Capital Lease Obligations (Tables)	6 Months Ended
	Jan. 27, 2018
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 January 27, 2018 July 31, 2017 (in thousands) Bank loan (interest rate 2.94% at January 27, 2018) $ 39 $ 328 Capital lease obligations (interest rates ranging from 7.36% to 15.09% at January 27, 2018) 83 120 122 448 Current portion of long-term debt and capital lease obligations (61 ) (382 ) Long-term debt and capital lease obligations $ 61 $ 66
Aggregate Maturities of Long-term Debt and Capital Lease Obligations	The aggregate maturities of long-term debt and capital lease obligations as of January 27, 2018 are summarized in the following table. Twelve Months Ended January 27, Amount (in thousands) 2019 $ 61 2020 37 2021 24 Total $ 122

Other Accrued Liabilities (Tabl

Other Accrued Liabilities (Tables)	6 Months Ended
	Jan. 27, 2018
Other Accrued Liabilities [Abstract]
Other Accrued Liabilities	Other accrued liabilities are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Allowance for project disallowances $ 687 $ 687 Dividends payable to noncontrolling shareholders of majority-owned subsidiaries 557 517 Other accrued expenses 1,244 1,441 Total other accrued liabilities $ 2,488 $ 2,645
Allowance for Project Disallowances	Activity within the allowance for project disallowances is summarized in the following table. Three Months Ended Six Months Ended January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 (in thousands) Balance at beginning of period $ 687 $ 1,173 $ 687 $ 1,819 Reduction of settlement estimate recorded in prior periods --- (462 ) --- (1,108 ) Balance at end of period $ 687 $ 711 $ 687 $ 711

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jan. 27, 2018
Shareholders' Equity [Abstract]
Components of Accumulated Other Comprehensive Loss	The components of accumulated other comprehensive loss are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) Unrealized net foreign currency translation losses $ (1,945 ) $ (2,033 ) Unrealized net investment (losses) gains on available for sale investments (1 ) 15 Total accumulated other comprehensive loss $ (1,946 ) $ (2,018 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jan. 27, 2018
Earnings Per Share [Abstract]
Computation of Earnings Per Share	The computation of earnings per share is included in the following table. Three Months Ended Six Months Ended January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 (in thousands, except share and per share amounts) Net (loss) income attributable to Ecology and Environment, Inc. $ (768 ) $ (318 ) $ (235 ) $ 570 Dividends declared --- (859 ) --- (859 ) Balance at end of period $ (768 ) $ (1,177 ) $ (235 ) $ (289 ) Weighted-average common shares outstanding - basic and diluted 4,301,604 4,294,102 4,301,604 4,293,417 Distributed earnings per share - basic and diluted $ --- $ 0.20 $ --- $ 0.20 Undistributed earnings (distributions in excess of earnings) per share - basic and diluted (0.18 ) (0.27 ) (0.05 ) (0.07 ) Net income per common share - basic and diluted $ (0.18 ) $ (0.07 ) $ (0.05 ) $ 0.13

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jan. 27, 2018
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	Revenue, net by business segment is summarized in the following table. Three Months Ended Six Months Ended January 27, 2018 January 28, 2017 January 27, 2018 January 28, 2017 (in thousands) EEI and its subsidiaries located in the U.S. $ 17,050 $ 18,950 $ 36,748 $ 39,265 Subsidiaries located in South America: Peru 2,690 1,675 5,689 2,737 Chile 3,128 2,096 5,242 4,057 Brazil 2,145 1,931 4,395 3,838 Other 70 74 91 144 8,033 5,776 15,417 10,776 Total revenue, net $ 25,083 $ 24,726 $ 52,165 $ 50,041
Long-lived Assets by Geographic Areas	Long-lived assets by business segment are summarized in the following table. Balance at January 27, 2018 July 31, 2017 (in thousands) EEI and its subsidiaries located in the United States $ 3,095 $ 3,293 Subsidiaries located in South America 1,266 1,135

Organization and Basis of Pre32

Organization and Basis of Presentation (Details)	6 Months Ended
	Jan. 27, 2018SubsidiaryCountryDisciplineProject
Organization and Basis of Presentation [Abstract]
Number of wholly owned and majority owned operating subsidiaries | Subsidiary	8
Number of countries in which the company operates	5
Number of disciplines | Discipline	80
Number of projects completed by the entity for a wide variety of clients, minimum | Project	50,000
Minimum number of countries in which the entity completed projects	120

Cash, Cash Equivalents and Re33

Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Jul. 31, 2017	Jan. 28, 2017	Jul. 31, 2016
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	$ 17,412	$ 13,029
Restricted cash	295	314
Total cash, cash equivalents and restricted cash	17,707	13,343	$ 11,860	$ 10,161
Money Market Funds [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Short-term investments	$ 400	$ 200

Fair Value of Financial Instr34

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jul. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 1,486		$ 1,498
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross unrealized losses	$ (100)	$ (100)

Revenue and Contract Receivab35

Revenue and Contract Receivables, net, Revenue Recognition Policy (Details) - Consulting [Member]	6 Months Ended
	Jan. 27, 2018
Time and Materials [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue recognition policy	As incurred at contract rates.
Fixed Price [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]
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.

Revenue and Contract Receivab36

Revenue and Contract Receivables, net, Summary of Contract Receivables, net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jan. 27, 2018	Oct. 28, 2017	Jul. 31, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 31, 2016
Revenue and Contract Receivables, net [Abstract]
Billed contracts receivable	$ 14,858		$ 16,033
Unbilled contracts receivable	15,464		21,199
Contract receivables, gross	30,322		37,232
Allowance for doubtful accounts and contract adjustments	(1,957)	$ (2,127)	(2,125)	$ (2,047)	$ (6,882)	$ (6,792)
Contract receivables, net	28,365		35,107
Contractual retainage balance included under billed contract receivable	$ 1,200		$ 1,100
Management anticipation for receivables collection	1 year

Revenue and Contract Receivab37

Revenue and Contract Receivables, net, Contract Receivables Concentrations (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Oct. 28, 2017	Jul. 31, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total billed and unbilled contract receivables	$ 30,322		$ 37,232
Allowance for doubtful accounts and contract adjustments	$ 1,957	$ 2,127	$ 2,125	$ 2,047	$ 6,882	$ 6,792
Contract receivables	11.00%		11.00%
U.S. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total billed and unbilled contract receivables	$ 17,375		$ 25,528
Allowance for doubtful accounts and contract adjustments	595		797
South America [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total billed and unbilled contract receivables	12,947		11,704
Allowance for doubtful accounts and contract adjustments	$ 1,362		$ 1,328

Revenue and Contract Receivab38

Revenue and Contract Receivables, net, Allowance for Doubtful Accounts and Contract Adjustments (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period		$ 2,127	$ 6,882	$ 2,125	$ 6,792
Net increase (decrease) due to adjustments in the allowance for contract adjustments	[1]	(35)	(4,895)	(35)	(4,940)
Net increase (decrease) due to adjustments in the allowance for doubtful accounts	[2]	(135)	60	(133)	195
Balance at end of period		$ 1,957	2,047	$ 1,957	$ 2,047
Specific write offs of aged and uncollectable contract receivables			$ 4,900
[1]	Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations.
[2]	Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations.

Lines of Credit (Details)

Lines of Credit (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Jul. 31, 2017
Line of Credit Facility [Line Items]
Outstanding cash draws, recorded as lines of credit on the accompanying condensed consolidated balance sheets	$ 435	$ 581
Short-term loans issued under lines of credit	0	200
Outstanding letters of credit to support operations	1,908	2,511
Total amounts used under lines of credit	2,343	3,292
Remaining amounts available under lines of credit	37,783	36,529
Total approved unsecured lines of credit	$ 40,126	$ 39,821
Minimum [Member] | U.S. [Member]
Line of Credit Facility [Line Items]
Interest rate	3.37%
Minimum [Member] | South America [Member]
Line of Credit Facility [Line Items]
Interest rate	9.12%
Maximum [Member] | U.S. [Member]
Line of Credit Facility [Line Items]
Interest rate	4.12%
Maximum [Member] | South America [Member]
Line of Credit Facility [Line Items]
Interest rate	13.42%

Debt and Capital Lease Obliga40

Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Jul. 31, 2017
Debt Instrument [Line Items]
Total	$ 122	$ 448
Current portion of long-term debt and capital lease obligations	(61)	(382)
Long-term debt and capital lease obligations	61	66
Long-term Debt, by Maturity [Abstract]
2,019	61
2,020	37
2,021	24
Total	122	448
Bank Loans [Member]
Debt Instrument [Line Items]
Total	$ 39	328
Interest rate	2.94%
Long-term Debt, by Maturity [Abstract]
Total	$ 39	328
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Total	83	120
Long-term Debt, by Maturity [Abstract]
Total	$ 83	$ 120
Capital Lease Obligations [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate	7.36%
Capital Lease Obligations [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate	15.09%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	5 Months Ended	6 Months Ended		7 Months Ended	12 Months Ended
	Jan. 27, 2018	Dec. 31, 2017	Jan. 27, 2018	Jan. 28, 2017	Jul. 31, 2018	Jul. 31, 2018
Income Tax Disclosure [Line Items]
Estimated effective tax rate			93.70%	67.70%
Statutory federal tax rate		34.00%
Estimated net deferred tax expense	$ 0.3
Estimated federal tax expense	0.1
One-time transition tax	0.3
Benefit from outstanding unpaid dividends from a foreign subsidiary	0.2
Transition tax as a non-current income tax liability	$ 0.3		$ 0.3
Transition tax non-current income tax liability expected pay period			8 years
Plan [Member]
Income Tax Disclosure [Line Items]
Statutory federal tax rate					21.00%	26.00%

Other Accrued Liabilities (Deta

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jul. 31, 2017
Other Accrued Liabilities [Abstract]
Allowance for project disallowances	$ 687	$ 1,173	$ 687	$ 1,819	$ 687	$ 687
Dividends payable to noncontrolling shareholders of majority-owned subsidiaries					557	517
Other accrued expenses					1,244	1,441
Total other accrued liabilities					$ 2,488	$ 2,645
Allowance for Project Disallowances [Roll Forward]
Balance at beginning of period	687	1,173	687	1,819
Reduction of settlement estimate recorded in prior periods	0	(462)	0	(1,108)
Balance at end of period	$ 687	$ 711	$ 687	$ 711

Stock Award Plan (Details)

Stock Award Plan (Details) $ in Millions	6 Months Ended
	Jan. 27, 2018USD ($)Directorshares	Jan. 28, 2017USD ($)	Jul. 31, 2017shares
Maximum [Member]
Class of Stock [Line Items]
Non-cash compensation expense | $	$ 0.1	$ 0.1
Class A Common Stock [Member]
Class of Stock [Line Items]
Shares authorized (in shares)	6,000,000		6,000,000
Class A Common Stock [Member] | Directors Chairman [Member] | Maximum [Member]
Class of Stock [Line Items]
Shares authorized (in shares)	200,000
Term of the award plan	5 years
Class A Common Stock [Member] | Directors [Member] | 2016 Stock Award Plan [Member]
Class of Stock [Line Items]
Shares awarded (in shares)	7,502
Number of directors | Director	4
Class A Common Stock [Member] | Directors [Member] | Maximum [Member] | 2016 Stock Award Plan [Member]
Class of Stock [Line Items]
Shares awarded, value | $	$ 0.1

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ in Thousands	1 Months Ended					3 Months Ended		6 Months Ended
	Feb. 28, 2018	Aug. 31, 2017	Feb. 28, 2017	Jan. 31, 2017	Aug. 31, 2016	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017	Jul. 31, 2017	Aug. 31, 2010
Cash Dividends [Abstract]
Cash dividends declared				$ 900		$ 0	$ 859	$ 0	$ 859
Dividends paid		$ 900	$ 900		$ 900
Accumulated Other Comprehensive Loss [Abstract]
Unrealized net foreign currency translation losses						(1,945)		(1,945)		$ (2,033)
Unrealized net investment (losses) gains on available for sale investments						(1)		(1)		15
Total accumulated other comprehensive loss						$ (1,946)		$ (1,946)		$ (2,018)
Subsequent Event [Member]
Cash Dividends [Abstract]
Dividends paid	$ 900
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
Number of Class B shares to be converted into Class A shares (in shares)								1
Stock Repurchase [Abstract]
Number of shares authorized to be repurchased (in shares)											200,000
Number of shares repurchased during the period (in shares)								122,918
Remaining number of shares authorized to be repurchased (in shares)						77,082		77,082
Number of share acquired (in shares)								0	0

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Earnings Per Share [Abstract]
Minimum percentage right of Class B common stock holders to elect Board of Directors				75.00%
Net (loss) income attributable to Ecology and Environment, Inc.		$ (768)	$ (318)	$ (235)	$ 570
Dividends declared	$ (900)	0	(859)	0	(859)
Balance at end of period		$ (768)	$ (1,177)	$ (235)	$ (289)
Weighted-average common shares outstanding - basic and diluted (in shares)		4,301,604	4,294,102	4,301,604	4,293,417
Distributed earnings per share - basic and diluted (in dollars per share)		$ 0	$ 0.20	$ 0	$ 0.20
Undistributed earnings (distributions in excess of earnings) per share - basic and diluted (in dollars per share)		(0.18)	(0.27)	(0.05)	(0.07)
Net income per common share - basic and diluted (in dollars per share)		$ (0.18)	$ (0.07)	$ (0.05)	$ 0.13

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017	Jul. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 25,083	$ 24,726	$ 52,165	$ 50,041
Reportable Geographical Components [Member] | United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	17,050	18,950	36,748	39,265
Long-Lived Assets	3,095		3,095		$ 3,293
Reportable Geographical Components [Member] | South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	8,033	5,776	15,417	10,776
Long-Lived Assets	1,266		1,266		$ 1,135
Reportable Geographical Components [Member] | Peru [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,690	1,675	5,689	2,737
Reportable Geographical Components [Member] | Chile [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	3,128	2,096	5,242	4,057
Reportable Geographical Components [Member] | Brazil [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,145	1,931	4,395	3,838
Reportable Geographical Components [Member] | Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 70	$ 74	$ 91	$ 144

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	6 Months Ended
	Jan. 27, 2018USD ($)Employee	Jan. 27, 2018BRL (R$)	Jul. 31, 2017USD ($)
Loss Contingencies [Line Items]
Other accrued liabilities | $	$ 2,488		$ 2,645
Pending Litigation [Member] | Ecology and Environment do Brasil LTDA [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss | R$		R$ 520000
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 | $	$ 400