EEI 2017 Form 10-K

Table of Contents 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, 2017 2016 2015 (in thousands) Revenue, net, by Business Segment: EEI and its subsidiaries located in the United States $ 82,094 $ 83,095 $ 88,715 Subsidiaries located in South America (1) 22,408 22,722 38,220 (1) Significant South American revenues included revenues from subsidiaries located in Peru ($6.3 million, $9.7 million and $22.8 million for fiscal years 2017, 2016 and 2015, respectively), Brazil ($8.2 million, $5.0 million and $8.0 million for fiscal years 2017, 2016 and 2015, respectively) and Chile ($7.7 million, $7.5 million and $6.5 million for fiscal years 2017, 2016 and 2015, respectively). Balance at July 31, 2017 2016 (in thousands) Long-lived assets by geographic location: EEI and its subsidiaries located in the United States $ 3,293 $ 4,916 Subsidiaries located in South America 1,135 1,178 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 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. 56