Correction of Errors

9 Months Ended

Jul. 31, 2012

Accounting Changes and Error Corrections [Abstract]

Correction of Errors

Note 19 – Correction of Errors

The Company’s internal audit process identified deficiencies in internal controls over financial reporting within its Rigid Industrial Packaging & Services business unit in Brazil. Upon further investigation, financial statement errors were discovered in the Brazil business unit in several prior periods. The impact of the errors in the prior years was not material to the Company in any of those years; however, the aggregate amount of the prior period errors of $18.4 million would have been material to the Company’s current year consolidated statement of operations. Consequently, the Company has corrected these errors for all prior periods presented by restating the consolidated financial statements and other financial information included herein. These items include prior period errors that were previously assessed as immaterial and corrections to the financial statements were recorded in the first and second quarters of 2012. Management has determined that the financial statement errors, which related to improperly stated reserves and asset balances which the Company was unable to substantiate, resulted from deficiencies in internal controls over financial reporting within the Company’s Brazil business unit. Periods not presented herein will be restated, as applicable, as they are included in future filings.

The following are the previously reported and corrected balances of certain consolidated statements of operations and consolidated balance sheets (Dollars in millions, except per share amounts):

	Three months ended January 31, 2012
	As Reported		Adjustments			As Adjusted
Selling, general and administrative expenses	$	112.6	$	(2.2	)	$	110.4
Operating profit		58.3		2.2			60.5
Income before income tax expense and equity earnings of unconsolidated affilitates, net		34.8		2.2			37.0
Income tax expense		10.2		0.8			11.0
Net income		24.6		1.4			26.0
Net income attributable to Greif, Inc.		23.9		1.4			25.3
Basic earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	0.41	$	0.03		$	0.44
Class B Common Stock	$	0.61	$	0.04		$	0.65
Diluted earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	0.41	$	0.03		$	0.44
Class B Common Stock	$	0.61	$	0.04		$	0.65

	Three months ended
	April 30, 2012
	As Reported			Adjustments			As Adjusted
Net Sales	$	1,095.3		$	2.8		$	1,098.1
Gross profit		203.1			2.8			205.9
Selling, general and administrative expenses		121.9			(3.2	)		118.7
(Gain) on disposal of properties, plants and equipment, net		(3.2	)		1.2			(2.0	)
Operating profit		74.3			4.8			79.1
Income before income tax expense and equity earnings of unconsolidated affilitates, net		47.5			4.8			52.3
Income tax expense		13.3			1.8			15.1
Net income		36.2			3.0			39.2
Net income attributable to Greif, Inc.		36.8			3.0			39.8
Basic earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	0.63		$	0.05		$	0.68
Class B Common Stock	$	0.95		$	0.07		$	1.02
Diluted earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	0.63		$	0.05		$	0.68
Class B Common Stock	$	0.95		$	0.07		$	1.02

	Three months ended
	July 31, 2011
	As Reported		Adjustments			As Adjusted
Cost of products sold	$	910.6	$	0.2		$	910.8
Gross profit		211.3		(0.2	)		211.1
Selling, general and administrative expenses		109.1		0.2			109.3
Operating profit		108.0		(0.4	)		107.6
Income before income tax expense and equity earnings of unconsolidated affilitates, net		85.1		(0.4	)		84.7
Income tax expense		21.7		(4.4	)		17.3
Net income		64.9		4.0			68.9
Net income attributable to Greif, Inc.		62.9		4.0			66.9
Basic earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	1.08	$	0.07		$	1.15
Class B Common Stock	$	1.61	$	0.11		$	1.72
Diluted earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	1.07	$	0.07		$	1.14
Class B Common Stock	$	1.61	$	0.11		$	1.72

	Nine months ended
	July 31, 2011
	As Reported		Adjustments			As Adjusted
Cost of products sold	$	2,521.7	$	0.7		$	2,522.4
Gross profit		594.8		(0.7	)		594.1
Selling, general and administrative expenses		329.5		0.5			330.0
Operating profit		268.0		(1.2	)		266.8
Income before income tax expense and equity earnings of unconsolidated affilitates, net		204.3		(1.2	)		203.1
Income tax expense		49.7		(4.4	)		45.3
Net income		156.6		3.2			159.8
Net income attributable to Greif, Inc.		155.2		3.2			158.4
Basic earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	2.66	$	0.06		$	2.72
Class B Common Stock	$	3.98	$	0.08		$	4.06
Diluted earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	2.65	$	0.05		$	2.70
Class B Common Stock	$	3.98	$	0.08		$	4.06

	For the year ended
	October 31, 2011
	As Reported			Adjustments			As Adjusted
Cost of products sold	$	3,446.8		$	0.9		$	3,447.7
Gross profit		801.1			(0.9	)		800.2
Selling, general and administrative expenses		448.4			0.7			449.1
(Gain) on disposal of properties, plants and equipment, net		(14.9	)		(1.2	)		(16.1	)
Operating profit		337.1			(0.4	)		336.7
Income before income tax expense and equity earnings of unconsolidated affilitates, net		243.4			(0.4	)		243.0
Income tax expense		71.1			(3.9	)		67.2
Net income		177.1			3.5			180.6
Net income attributable to Greif, Inc.		176.0			3.5			179.5
Basic earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	3.02		$	0.06		$	3.08
Class B Common Stock	$	4.52		$	0.09		$	4.61
Diluted earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	3.01		$	0.06		$	3.07
Class B Common Stock	$	4.52		$	0.09		$	4.61

	October 31, 2011
	As Reported		Adjustments			As Adjusted
Current assets
Trade accounts receivable, less allowance	$	568.6	$	(5.6	)	$	563.0
Inventories		432.5		(0.7	)		431.8
Prepaid expenses and other current assets		140.0		(5.9	)		134.1
Long-term assets
Goodwill		1,004.9		0.2			1,005.1
Other intangible assets, net of amortization		229.8		(1.0	)		228.8
Other long-term assets		92.2		1.2			93.4
Properties, plants and equipment
Machinery and equipment		1,398.2		(1.4	)		1,396.8
Total assets		4,207.3		(13.2	)		4,194.1
Current Liabilities
Accounts payable		487.8		5.1			492.9
Long-term liabilities
Other long-term liabilities		203.2		0.1			203.3
Shareholders’ equity
Retained earnings		1,401.7		(18.4	)		1,383.3
Total liabilities and shareholders’ equity		4,207.3		(13.2	)		4,194.1

	For the year ended
	October 31, 2010
	As Reported		Adjustments			As Adjusted
Cost of products sold	$	2,757.9	$	1.6		$	2,759.5
Gross profit		703.6		(1.6	)		702.0
Selling, general and administrative expenses		362.9		1.7			364.6
Operating profit		325.4		(3.3	)		322.1
Income before income tax expense and equity earnings of unconsolidated affilitates, net		252.5		(3.3	)		249.2
Income tax expense		40.6		(0.1	)		40.5
Net income		215.5		(3.2	)		212.3
Net income attributable to Greif, Inc.		210.0		(3.2	)		206.8
Basic earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	3.60	$	(0.05	)	$	3.55
Class B Common Stock	$	5.40	$	(0.09	)	$	5.31
Diluted earnings per share attributable to Greif, Inc. common shareholders:
Class A Common Stock	$	3.58	$	(0.05	)	$	3.53
Class B Common Stock	$	5.40	$	(0.09	)	$	5.31

	October 31, 2010
	As Reported		Adjustments			As Adjusted
Current assets
Trade accounts receivable, less allowance	$	480.2	$	(4.3	)	$	475.9
Inventories		396.6		(0.9	)		395.7
Prepaid expenses and other current assets		134.3		(5.6	)		128.7
Long-term assets
Goodwill		709.7		0.2			709.9
Other intangible assets, net of amortization		173.2		(0.7	)		172.5
Properties, plants and equipment
Machinery and equipment		1,319.3		(1.3	)		1,318.0
Total assets		3,498.4		(12.6	)		3,485.8
Current Liabilities
Accounts payable		467.9		5.1			473.0
Long-term liabilities
Other long-term liabilities		116.9		4.2			121.1
Shareholders’ equity
Retained earnings		1,323.5		(21.9	)		1,301.6
Total liabilities and shareholders’ equity		3,498.4		(12.6	)		3,485.8