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CORRECTION OF ERRORS AND RESTATEMENT | 12 Months Ended
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Oct. 31, 2012
CORRECTION OF ERRORS AND RESTATEMENT | NOTE 19 – CORRECTION OF ERRORS AND RESTATEMENT As previously disclosed in its Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2012 (the “preceding Form 10-Q”), the Company’s internal audit process identified deficiencies in internal controls over financial reporting within its Rigid Industrial Packaging & Services business unit in Brazil and financial statement errors in that business unit were discovered in several prior periods. Consequently, the Company restated certain prior period amounts in the preceding Form 10-Q. During the fourth quarter of 2012, the Company concluded its review of internal controls in that business unit and in the other business units in Latin America. This further investigation identified additional prior period errors related to the Brazil business unit. The errors related to improperly stated reserves, inventory misstatements, and asset balances which the Company was unable to substantiate. During the fourth quarter of 2012, the Company also identified several prior period errors related to accounting for non-routine and complex activities and transactions. The errors related primarily to the financing structures of two of the Company’s joint ventures formed in 2010 and 2011, which resulted in reclassifications to the balance sheets and statements of cash flows. In addition, there were other errors that resulted in balance sheet reclassifications between noncontrolling interest and foreign currency translation. The impact of these additional prior period errors, plus the prior period errors reported in the preceding Form 10-Q, were not material to the Company in any of those years. However, the aggregate amount of prior period errors, net of tax, of $25.6 million, including the $18.4 million reported in the preceding Form 10-Q, would have been material to the Company’s current year consolidated statement of income. The Company has corrected these errors for all prior periods presented, including each of the quarters ended in 2012, by restating the consolidated financial statements and other financial information included herein. The adjustments were not material to the 2012 quarters which were also adjusted. The following are the previously stated and corrected balances of certain consolidated statements of income, consolidated balance sheets and consolidated statements of cash flows. The “As Reported” amounts are the amounts reported in the Annual Report on Form 10-K for the fiscal year ended October 31, 2011(Dollars in millions, except per share amounts):
|  | For the year ended |
|  | October 31, 2011 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Net Sales |  | $ | 4,247.9 |  |  | $ | 0.3 |  |  | $ | 4,248.2 |
Cost of products sold |  |  | 3,446.8 |  |  |  | 3.0 |  |  |  | 3,449.8 |
Gross profit |  |  | 801.1 |  |  |  | (2.7 | ) |  |  | 798.4 |
Selling, general and administrative expenses |  |  | 448.4 |  |  |  | 4.9 |  |  |  | 453.3 |
(Gain) on disposal of properties, plants and equipment, net |  |  | (14.9 | ) |  |  | (1.2 | ) |  |  | (16.1 | )
Operating profit |  |  | 337.1 |  |  |  | (6.4 | ) |  |  | 330.7 |
Interest expense, net |  |  | 79.6 |  |  |  | (3.6 | ) |  |  | 76.0 |
Income before income tax expense and equity earnings of unconsolidated affilitates, net |  |  | 243.4 |  |  |  | (2.8 | ) |  |  | 240.6 |
Income tax expense |  |  | 71.1 |  |  |  | (6.1 | ) |  |  | 65.0 |
Net income |  |  | 177.1 |  |  |  | 3.3 |  |  |  | 180.4 |
Net (income) loss attibutable to noncontrolling interests |  |  | (1.1 | ) |  |  | (1.8 | ) |  |  | (2.9 | )
Net income attributable to Greif, Inc. |  |  | 176.0 |  |  |  | 1.5 |  |  |  | 177.5 |
Basic earnings per share attributable to Greif, Inc. common shareholders: |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  | $ | 3.02 |  |  | $ | 0.03 |  |  | $ | 3.05 |
Class B Common Stock |  | $ | 4.52 |  |  | $ | 0.04 |  |  | $ | 4.56 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  | $ | 3.01 |  |  | $ | 0.03 |  |  | $ | 3.04 |
Class B Common Stock |  | $ | 4.52 |  |  | $ | 0.04 |  |  | $ | 4.56 |
|  | October 31, 2011 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts receivable, less allowance |  | $ | 568.6 |  |  | $ | (7.2 | ) |  | $ | 561.4 |
Inventories |  |  | 432.5 |  |  |  | (3.5 | ) |  |  | 429.0 |
Net assets held for sale |  |  | 11.4 |  |  |  | (2.0 | ) |  |  | 9.4 |
Prepaid expenses and other current assets |  |  | 140.0 |  |  |  | (7.5 | ) |  |  | 132.5 |
Total current assets |  |  | 1,305.3 |  |  |  | (20.2 | ) |  |  | 1,285.1 |
Long-term assets |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 1,004.9 |  |  |  | (2.3 | ) |  |  | 1,002.6 |
Other intangible assets, net of amortization |  |  | 229.8 |  |  |  | (1.0 | ) |  |  | 228.8 |
Deferred tax assets |  |  | 70.6 |  |  |  | 4.4 |  |  |  | 75.0 |
Other long-term assets |  |  | 92.2 |  |  |  | 1.2 |  |  |  | 93.4 |
Total long-term assets |  |  | 1,466.7 |  |  |  | 2.3 |  |  |  | 1,469.0 |
Properties, plants and equipment |  |  |  |  |  |  |  |  |  |  |  |
Machinery and equipment |  |  | 1,389.0 |  |  |  | (0.6 | ) |  |  | 1,388.4 |
Total properties, plants and equipment, net |  |  | 1,435.3 |  |  |  | (0.6 | ) |  |  | 1,434.7 |
Total assets |  |  | 4,207.3 |  |  |  | (18.5 | ) |  |  | 4,188.8 |
Current Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 487.8 |  |  |  | 5.5 |  |  |  | 493.3 |
Other current liabilities |  |  | 167.7 |  |  |  | (3.3 | ) |  |  | 164.4 |
Total current liabilities |  |  | 929.8 |  |  |  | 2.2 |  |  |  | 932.0 |
Long-term Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Long-term debt |  |  | 1,345.1 |  |  |  | 26.3 |  |  |  | 1,371.4 |
Deferred tax liabilities |  |  | 196.7 |  |  |  | (0.1 | ) |  |  | 196.6 |
Other long-term liabilities |  |  | 203.3 |  |  |  | 3.1 |  |  |  | 206.4 |
Total long-term liabilities |  |  | 1,885.3 |  |  |  | 29.4 |  |  |  | 1,914.7 |
Shareholders’ equity |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings |  |  | 1,401.7 |  |  |  | (25.7 | ) |  |  | 1,376.0 |
Foreign currency translation |  |  | (46.4 | ) |  |  | 4.5 |  |  |  | (41.9 | )
Total Greif, Inc. shareholders’ equity |  |  | 1,235.4 |  |  |  | (21.2 | ) |  |  | 1,214.2 |
Noncontrolling interests |  |  | 156.8 |  |  |  | (28.9 | ) |  |  | 127.9 |
Total shareholders’ equity |  |  | 1,392.2 |  |  |  | (50.1 | ) |  |  | 1,342.1 |
Total liabilities and shareholders’ equity |  |  | 4,207.3 |  |  |  | (18.5 | ) |  |  | 4,188.8 |
|  | For the year ended |
|  | October 31, 2010 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Net sales |  | $ | 3,461.5 |  |  | $ | 0.3 |  |  | $ | 3,461.8 |
Cost of products sold |  |  | 2,757.9 |  |  |  | 2.5 |  |  |  | 2,760.4 |
Gross profit |  |  | 703.6 |  |  |  | (2.2 | ) |  |  | 701.4 |
Selling, general and administrative expenses |  |  | 362.9 |  |  |  | 2.2 |  |  |  | 365.1 |
Operating profit |  |  | 325.4 |  |  |  | (4.4 | ) |  |  | 321.0 |
Interest expense, net |  |  | 65.8 |  |  |  | (0.3 | ) |  |  | 65.5 |
Income before income tax expense and equity earnings of unconsolidated affilitates, net |  |  | 252.5 |  |  |  | (4.1 | ) |  |  | 248.4 |
Income tax expense |  |  | 40.6 |  |  |  | 2.9 |  |  |  | 43.5 |
Net income |  |  | 215.5 |  |  |  | (7.0 | ) |  |  | 208.5 |
Net income attributable to noncontrolling interests |  |  | (5.5 | ) |  |  | (0.2 | ) |  |  | (5.7 | )
Net income attributable to Greif, Inc. |  |  | 210.0 |  |  |  | (7.2 | ) |  |  | 202.8 |
Basic earnings per share attributable to Greif, Inc. common shareholders: |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  | $ | 3.60 |  |  | $ | (0.12 | ) |  | $ | 3.48 |
Class B Common Stock |  | $ | 5.40 |  |  | $ | (0.19 | ) |  | $ | 5.21 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  | $ | 3.58 |  |  | $ | (0.12 | ) |  | $ | 3.46 |
Class B Common Stock |  | $ | 5.40 |  |  | $ | (0.19 | ) |  | $ | 5.21 |
|  | October 31, 2010 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts receivable, less allowance |  | $ | 480.2 |  |  | $ | (5.3 | ) |  | $ | 474.9 |
Inventories |  |  | 396.6 |  |  |  | (1.5 | ) |  |  | 395.1 |
Prepaid expenses and other current assets |  |  | 134.3 |  |  |  | (6.6 | ) |  |  | 127.7 |
Total current assets |  |  | 1,149.3 |  |  |  | (13.4 | ) |  |  | 1,135.9 |
Long-term assets |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 709.7 |  |  |  | (2.3 | ) |  |  | 707.4 |
Other intangible assets, net of amortization |  |  | 173.2 |  |  |  | (0.7 | ) |  |  | 172.5 |
Deferred tax assets |  |  | 30.0 |  |  |  | 1.3 |  |  |  | 31.3 |
Total long-term assets |  |  | 1,057.4 |  |  |  | (1.7 | ) |  |  | 1,055.7 |
Properties, plants and equipment |  |  |  |  |  |  |  |  |  |  |  |
Machinery and equipment |  |  | 1,319.3 |  |  |  | (1.8 | ) |  |  | 1,317.5 |
Total properties, plants and equipment, net |  |  | 1,291.7 |  |  |  | (1.8 | ) |  |  | 1,289.9 |
Total assets |  |  | 3,498.4 |  |  |  | (16.9 | ) |  |  | 3,481.5 |
Current Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 467.9 |  |  |  | 5.3 |  |  |  | 473.2 |
Other current liabilities |  |  | 123.8 |  |  |  | (0.3 | ) |  |  | 123.5 |
Total current liabilities |  |  | 781.3 |  |  |  | 5.0 |  |  |  | 786.3 |
Long-term liabilities |  |  |  |  |  |  |  |  |  |  |  |
Deferred tax liabilities |  |  | 180.5 |  |  |  | (0.1 | ) |  |  | 180.4 |
Other long-term liabilities |  |  | 116.9 |  |  |  | 5.2 |  |  |  | 122.1 |
Total long-term liabilities |  |  | 1,381.2 |  |  |  | 5.1 |  |  |  | 1,386.3 |
Shareholders’ equity |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings |  |  | 1,323.5 |  |  |  | (27.2 | ) |  |  | 1,296.3 |
Foreign currency translation |  |  | 0.4 |  |  |  | (14.1 | ) |  |  | (13.7 | )
Total Greif, Inc. shareholders’ equity |  |  | 1,234.5 |  |  |  | (41.3 | ) |  |  | 1,193.2 |
Noncontrolling interests |  |  | 101.4 |  |  |  | 14.3 |  |  |  | 115.7 |
Total shareholders’ equity |  |  | 1,335.9 |  |  |  | (27.0 | ) |  |  | 1,308.9 |
Total liabilities and shareholders’ equity |  |  | 3,498.4 |  |  |  | (16.9 | ) |  |  | 3,481.5 |
|  | For the year ended |
|  | October 31, 2010 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net cash provided by operating activities |  |  | 178.1 |  |  |  | — |  |  |  | 178.1 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Acquisitions of companies, net of cash acquired |  |  | (179.4 | ) |  |  | (98.2 | ) |  |  | (277.6 | )
Net cash used in investing activities |  |  | (327.2 | ) |  |  | (98.2 | ) |  |  | (425.4 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from joint venture partner |  |  | — |  |  |  | 98.2 |  |  |  | 98.2 |
Net cash provided by (used in) financing activities |  |  | 145.9 |  |  |  | 98.2 |  |  |  | 244.1 |
|  | October 31, 2009 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Retained Earnings |  | $ | 1,206.6 |  |  | $ | (20.2 | ) |  | $ | 1,186.4 |
Noncontrolling interests |  |  | 7.0 |  |  |  | 3.9 |  |  |  | 10.9 |
Accumulated Other Comprehensive Income (Loss) |  |  | (107.8 | ) |  |  | (3.9 | ) |  |  | (111.7 | )
Shareholders’ Equity |  |  | 1,087.0 |  |  |  | (20.2 | ) |  |  | 1,066.8 |

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 1.N.Q3) -URI http://asc.fasb.org/extlink&oid=6369664&loc=d3e30840-122693 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22644-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 1 -Section N Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 23 -URI http://asc.fasb.org/extlink&oid=6368906&loc=d3e21914-107793 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22595-107794 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 17, 22, 25, 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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