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Correction of Errors and Restatement | 12 Months Ended
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Oct. 31, 2014
Accounting Changes and Error Corrections [Abstract] |
Correction of Errors and Restatement | NOTE 21 – CORRECTION OF ERRORS AND RESTATEMENT In the fourth quarter of 2014, the Company’s financial reporting and income tax processes identified financial statement errors in several prior periods within its Rigid Industrial Packaging & Services segment, its Paper Packaging segment and its Flexible Products & Services segment. The errors related to improperly stated deferred tax assets and liabilities, uncertain tax positions, income tax expense, accounting for paper trading activities at cost, Venezuela hyperinflation accounting, inventory, fixed assets and other asset and liability balances. Consequently, the Company has restated certain prior period amounts. The impact of these prior period errors were not material to the Company in any of those years. However, the aggregate amount of prior period errors, net of tax, of $24.5 million 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 2014 and 2013, by restating the consolidated financial statements and other financial information included herein. The amounts for prior period errors consisted of the following: $8.3 million for deferred tax assets and liabilities; $5.4 million for uncertain tax positions; $6.5 million for Venezuela hyperinflation accounting; $2.4 million for amortization expense; and $1.9 million for the other asset and liability accounts. In addition, the revenue eliminations from the paper trading transactions reduced both net sales and cost of products sold in the Paper Packing segment by $133.5 million and $140.0 million, for the years ended October 31, 2013 and 2012, respectively. 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, 2013 (Dollars in millions, except per share amounts):
|  | For the year ended |
|  | October 31, 2013 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Net Sales |  | $ | 4,353.4 |  |  | $ | (133.5 | ) |  | $ | 4,219.9 |
Cost of products sold |  |  | 3,520.8 |  |  |  | (133.1 | ) |  |  | 3,387.7 |
Gross profit |  |  | 832.6 |  |  |  | (0.4 | ) |  |  | 832.2 |
Timberland gains |  |  | (17.5 | ) |  |  | 0.2 |  |  |  | (17.3 | )
Non-cash asset impairment charges |  |  | 34.0 |  |  |  | (2.6 | ) |  |  | 31.4 |
Operating profit |  |  | 339.6 |  |  |  | 2.0 |  |  |  | 341.6 |
Other (income) expense, net |  |  | 10.8 |  |  |  | 2.3 |  |  |  | 13.1 |
Income before income tax expense and equity earnings of unconsolidated affiliates, net |  |  | 243.7 |  |  |  | (0.3 | ) |  |  | 243.4 |
Income tax (benefit) expense |  |  | 97.6 |  |  |  | 1.2 |  |  |  | 98.8 |
Net Income |  |  | 149.0 |  |  |  | (1.5 | ) |  |  | 147.5 |
Net (income) loss attributable to noncontrolling interests |  |  | (1.7 | ) |  |  | (1.1 | ) |  |  | (2.8 | )
Net income attributable to Greif, Inc. |  |  | 147.3 |  |  |  | (2.6 | ) |  |  | 144.7 |
Basic earnings per share attributable to Greif, Inc. common shareholders: |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  | $ | 2.52 |  |  | $ | (0.05 | ) |  | $ | 2.47 |
Class B Common Stock |  | $ | 3.77 |  |  | $ | (0.07 | ) |  | $ | 3.70 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  | $ | 2.52 |  |  | $ | (0.05 | ) |  | $ | 2.47 |
Class B Common Stock |  | $ | 3.77 |  |  | $ | (0.07 | ) |  | $ | 3.70 |
|  | October 31, 2013 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Inventories |  | $ | 375.3 |  |  | $ | (0.9 | ) |  | $ | 374.4 |
Deferred tax assets |  |  | 22.2 |  |  |  | 7.6 |  |  |  | 29.8 |
Prepaid expenses and other current assets |  |  | 132.2 |  |  |  | (0.4 | ) |  |  | 131.8 |
Total current assets |  |  | 1,094.0 |  |  |  | 6.3 |  |  |  | 1,100.3 |
Long-term assets |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 1,003.5 |  |  |  | (5.1 | ) |  |  | 998.4 |
Other intangible assets, net of amortization |  |  | 180.8 |  |  |  | 4.4 |  |  |  | 185.2 |
Total long-term assets |  |  | 1,389.9 |  |  |  | (0.7 | ) |  |  | 1,389.2 |
Properties, plants and equipment |  |  |  |  |  |  |  |  |  |  |  |
Machinery and equipment |  |  | 1,523.7 |  |  |  | (1.1 | ) |  |  | 1,522.6 |
Total properties, plants and equipment, net |  |  | 1,398.3 |  |  |  | (1.1 | ) |  |  | 1,397.2 |
Total assets |  |  | 3,882.2 |  |  |  | 4.5 |  |  |  | 3,886.7 |
Current Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Other current liabilities |  |  | 178.8 |  |  |  | 7.7 |  |  |  | 186.5 |
Total current liabilities |  |  | 801.7 |  |  |  | 7.7 |  |  |  | 809.4 |
Long-term Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Deferred tax liabilities |  |  | 238.1 |  |  |  | 8.3 |  |  |  | 246.4 |
Other long-term liabilities |  |  | 92.9 |  |  |  | 6.6 |  |  |  | 99.5 |
Total long-term liabilities |  |  | 1,682.5 |  |  |  | 14.9 |  |  |  | 1,697.4 |
Shareholders’ equity |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings |  |  | 1,443.8 |  |  |  | (25.0 | ) |  |  | 1,418.8 |
Accumulated other comprehensive loss |  |  | (159.0 | ) |  |  | 6.4 |  |  |  | (152.6 | )
Total Greif, Inc. shareholders’ equity |  |  | 1,283.2 |  |  |  | (18.6 | ) |  |  | 1,264.6 |
Noncontrolling interests |  |  | 114.8 |  |  |  | 0.5 |  |  |  | 115.3 |
Total shareholders’ equity |  |  | 1,398.0 |  |  |  | (18.1 | ) |  |  | 1,379.9 |
Total liabilities and shareholders’ equity |  |  | 3,882.2 |  |  |  | 4.5 |  |  |  | 3,886.7 |
|  | For the year ended October 31, 2013 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 149.0 |  |  | $ | (1.5 | ) |  | $ | 147.5 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  |  | 156.9 |  |  |  | 0.7 |  |  |  | 157.6 |
Asset impairments |  |  | 34.0 |  |  |  | (2.6 | ) |  |  | 31.4 |
Deferred income taxes |  |  | 2.0 |  |  |  | 0.6 |  |  |  | 2.6 |
Gain on disposals of properties, plants and equipment, net |  |  | (23.1 | ) |  |  | 17.5 |  |  |  | (5.6 | )
Gain on disposals of timberland, net |  |  | — |  |  |  | (17.3 | ) |  |  | (17.3 | )
Increase (decrease) in cash from changes in certain assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  | (35.4 | ) |  |  | (0.2 | ) |  |  | (35.6 | )
Inventories |  |  | (3.5 | ) |  |  | 0.9 |  |  |  | (2.6 | )
Pension and postretirement benefit liabilities |  |  | 7.5 |  |  |  | (11.6 | ) |  |  | (4.1 | )
Other, net |  |  | 8.1 |  |  |  | 13.5 |  |  |  | 21.6 |
Net cash provided by operating activities |  |  | 250.3 |  |  |  | — |  |  |  | 250.3 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Net cash used in investing activities |  |  | (100.7 | ) |  |  | — |  |  |  | (100.7 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from (payments on) trade accounts receivable credit facility, net |  |  | 30.0 |  |  |  | (30.0 | ) |  |  | — |
Proceeds from trade accounts receivable credit facility |  |  | — |  |  |  | 75.6 |  |  |  | 75.6 |
Payments on trade accounts receivable credit facility |  |  | — |  |  |  | (45.6 | ) |  |  | (45.6 | )
Net cash used in financing activities |  |  | (159.9 | ) |  |  | — |  |  |  | (159.9 | )
|  | For the year ended |
|  | October 31, 2012 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Net Sales |  | $ | 4,269.5 |  |  | $ | (140.0 | ) |  | $ | 4,129.5 |
Cost of products sold |  |  | 3,489.9 |  |  |  | (139.9 | ) |  |  | 3,350.0 |
Gross profit |  |  | 779.6 |  |  |  | (0.1 | ) |  |  | 779.5 |
Selling, general and administrative expenses |  |  | 468.4 |  |  |  | 1.4 |  |  |  | 469.8 |
Non-cash asset impairment charges |  |  | 12.9 |  |  |  | 0.3 |  |  |  | 13.2 |
Operating profit |  |  | 282.8 |  |  |  | (1.8 | ) |  |  | 281.0 |
Other (income) expense, net |  |  | 7.5 |  |  |  | 0.2 |  |  |  | 7.7 |
Income before income tax expense and equity earnings of unconsolidated affiliates, net |  |  | 185.4 |  |  |  | (2.0 | ) |  |  | 183.4 |
Income tax (benefit) expense |  |  | 58.8 |  |  |  | 2.3 |  |  |  | 61.1 |
Net Income |  |  | 127.9 |  |  |  | (4.3 | ) |  |  | 123.6 |
Net income attributable to Greif, Inc. |  |  | 122.4 |  |  |  | (4.3 | ) |  |  | 118.1 |
Basic earnings per share attributable to Greif, Inc. common shareholders: |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  | $ | 2.10 |  |  | $ | (0.07 | ) |  | $ | 2.03 |
Class B Common Stock |  | $ | 3.14 |  |  | $ | (0.11 | ) |  | $ | 3.03 |
Diluted earnings per share attributable to Greif, Inc. common shareholders: |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  | $ | 2.10 |  |  | $ | (0.07 | ) |  | $ | 2.03 |
Class B Common Stock |  | $ | 3.14 |  |  | $ | (0.11 | ) |  | $ | 3.03 |
|  | October 31, 2012 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts receivable, less allowance |  | $ | 453.8 |  |  | $ | (0.2 | ) |  | $ | 453.6 |
Deferred tax assets |  |  | 18.9 |  |  |  | 6.6 |  |  |  | 25.5 |
Prepaid expenses and other current assets |  |  | 114.8 |  |  |  | (0.5 | ) |  |  | 114.3 |
Total current assets |  |  | 1,055.3 |  |  |  | 5.9 |  |  |  | 1,061.2 |
Long-term assets |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 976.1 |  |  |  | (5.1 | ) |  |  | 971.0 |
Other intangible assets, net of amortization |  |  | 198.6 |  |  |  | 5.2 |  |  |  | 203.8 |
Total long-term assets |  |  | 1,373.2 |  |  |  | 0.1 |  |  |  | 1,373.3 |
Properties, plants and equipment |  |  |  |  |  |  |  |  |  |  |  |
Machinery and equipment |  |  | 1,472.6 |  |  |  | (3.5 | ) |  |  | 1,469.1 |
Total properties, plants and equipment, net |  |  | 1,424.9 |  |  |  | (3.5 | ) |  |  | 1,421.4 |
Total assets |  |  | 3,853.4 |  |  |  | 2.5 |  |  |  | 3,855.9 |
Current Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Other current liabilities |  |  | 187.9 |  |  |  | 8.5 |  |  |  | 196.4 |
Total current liabilities |  |  | 867.3 |  |  |  | 8.5 |  |  |  | 875.8 |
Long-term Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Deferred tax liabilities |  |  | 197.0 |  |  |  | 7.8 |  |  |  | 204.8 |
Other long-term liabilities |  |  | 117.0 |  |  |  | 5.1 |  |  |  | 122.1 |
Total long-term liabilities |  |  | 1,675.3 |  |  |  | 12.9 |  |  |  | 1,688.2 |
Shareholders’ equity |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings |  |  | 1,394.8 |  |  |  | (22.6 | ) |  |  | 1,372.2 |
Accumulated other comprehensive loss |  |  | (196.0 | ) |  |  | 4.3 |  |  |  | (191.7 | )
Total Greif, Inc. shareholders’ equity |  |  | 1,191.2 |  |  |  | (18.3 | ) |  |  | 1,172.9 |
Noncontrolling interests |  |  | 119.6 |  |  |  | (0.6 | ) |  |  | 119.0 |
Total shareholders’ equity |  |  | 1,310.8 |  |  |  | (18.9 | ) |  |  | 1,291.9 |
Total liabilities and shareholders’ equity |  |  | 3,853.4 |  |  |  | 2.5 |  |  |  | 3,855.9 |
|  | For the year ended October 31, 2012 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 127.9 |  |  | $ | (4.3 | ) |  | $ | 123.6 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  |  | 154.8 |  |  |  | 0.8 |  |  |  | 155.6 |
Asset impairments |  |  | 12.9 |  |  |  | 0.3 |  |  |  | 13.2 |
Deferred income taxes |  |  | 20.2 |  |  |  | 1.8 |  |  |  | 22.0 |
Increase (decrease) in cash from changes in certain assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  | 96.7 |  |  |  | 0.1 |  |  |  | 96.8 |
Accounts payable |  |  | 3.5 |  |  |  | (0.2 | ) |  |  | 3.3 |
Other, net |  |  | 45.3 |  |  |  | 1.5 |  |  |  | 46.8 |
Net cash provided by operating activities |  |  | 473.3 |  |  |  | — |  |  |  | 473.3 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Net cash used in investing activities |  |  | (153.8 | ) |  |  | — |  |  |  | (153.8 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from (payments on) trade accounts receivable credit facility, net |  |  | (20.0 | ) |  |  | 20.0 |  |  |  | — |
Proceeds from trade accounts receivable credit facility |  |  | — |  |  |  | 40.8 |  |  |  | 40.8 |
Payments on trade accounts receivable credit facility |  |  | — |  |  |  | (60.8 | ) |  |  | (60.8 | )
Net cash used in financing activities |  |  | (352.2 | ) |  |  | — |  |  |  | (352.2 | )
The following are the previously reported and corrected balances of certain equity accounts as of October 31, 2011.
|  | October 31, 2011 |
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
Retained Earnings |  | $ | 1,370.1 |  |  | $ | (18.5 | ) |  | $ | 1,351.6 |
Noncontrolling interests |  |  | 127.9 |  |  |  | (0.6 | ) |  |  | 127.3 |
Accumulated Other Comprehensive Income (Loss) |  |  | (143.6 | ) |  |  | 4.3 |  |  |  | (139.3 | )
Shareholders’ Equity |  |  | 1,336.2 |  |  |  | (14.8 | ) |  |  | 1,321.4 |

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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 7 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22644-107794 Reference 2: 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 3: 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=28359718&loc=d3e22595-107794 Reference 4: 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=28359718&loc=d3e22499-107794 Reference 5: 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=26874127&loc=d3e30840-122693 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 1 -Section N + Details
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