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