/2H7  d 1$&%*7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"'CONSOLIDATED BALANCE SHEETS'(Dollars in thousands) 'ASSETS'October 31, ^2000 ^1999'CURRENT ASSETS 'Cash and cash equivalents"$ 13,388"$ 8,935% 'Canadian government securities  "--  "5,3144 'Trade accounts receivable - less allowance of '$2,293 ($2,456 in 1999) "119,645 "124,754 'Income tax receivable  "14,343  "-- 'Inventories  "42,741  "50,706'Deferred tax asset "2,216 "6,857'Net assets held for sale "8,495 "6,462!'Prepaid expenses and other "12,315 "14,270'Total current assets"213,143"217,298'LONG-TERM ASSETS#'Goodwill - less amortization"136,284"142,977'Investment in affiliates"136,374"124,360'Other long-term assets "17,868 "25,218"290,526"292,5551'PROPERTIES, PLANTS AND EQUIPMENT - at cost)'Timber properties - less depletion "21,518 "9,925 'Land "12,330 "12,280'Buildings"133,591"124,594'Machinery and equipment"521,685"491,533#'Capital projects in progress "23,354 "40,651"712,478"678,983 'Accumulated depreciation "(276,816) "(277,850)!"435,662!"401,133#"$939,331#"$910,986C%'See accompanying Notes to Consolidated Financial Statements.7''GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"('CONSOLIDATED BALANCE SHEETS)'(Dollars in thousands)++'LIABILITIES AND SHAREHOLDERS' EQUITY,'October 31, ,^2000 ,^1999-'CURRENT LIABILITIES.'Accounts payable."$ 45,075."$ 46,703-/'Accrued payrolls and employee benefits /"11,216 /"10,1540'Restructuring reserves 0"-- 0"5,157 1'Other current liabilities 1"8,656 1"10,017 2'Total current liabilities 2"64,947 2"72,0314'LONG-TERM LIABILITIES5'Long-term obligations5"235,0005"258,0006'Deferred tax liability 6"58,895 6"48,960'7'Postretirement benefit liability 7"20,095 7"21,154"8'Other long-term liabilities 8"17,880 8"22,859"9'Total long-term liabilities9"331,8709"350,973;'SHAREHOLDERS' EQUITY'<'Capital stock, without par value <"10,383 <"10,207='Class A Common Stock:$>'Authorized 32,000,000 shares; ?'issued 21,140,960 shares;$@'outstanding 10,523,196 shares"A'(10,653,396 shares in 1999)B'Class B Common Stock:/C'Authorized and issued 17,280,000 shares;$D'outstanding 11,847,359 shares"E'(11,873,896 shares in 1999)G'Treasury stock, at costG"(57,894)G"(52,940).H'Class A Common Stock: 10,617,764 shares"I'(10,487,564 shares in 1999)-J'Class B Common Stock: 5,432,641 shares!K'(5,406,104 shares in 1999)M'Retained earningsM"598,301M"537,126-O'Accumulated other comprehensive income%P'- foreign currency translationP"(8,276)P"(6,411)Q"542,514Q"487,982S"$939,331S"$910,986CU'See accompanying Notes to Consolidated Financial Statements.7W'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,X'CONSOLIDATED STATEMENTS OF CASH FLOWSY'(Dollars in thousands)&['For the years ended October 31, [^2000 [^1999 [^1998,\'Cash flows from operating activities:]'Net income]"$ 75,794]"$ 51,373]"$ 37,4411^'Adjustments to reconcile net income to net-_'cash provided by operating activities:/`'Depreciation, depletion and amortization `"45,222 `"42,360 `"39,686/a'Equity in earnings of affiliates, net ofb'dividends receivedb"(10,976)b"(10,755)b"(4,337)c'Deferred income taxes c"13,548 c"15,815 c"(964).d'Gain on disposals of properties, plantse'and equipment, net e"(502)e"(7,962)e"(1,747)2f'Increase (decrease) in cash from changes in-g'certain assets and liabilities, net of!h'effects from acquisitions: i'Trade accounts receivable i"5,109i"(21,578)i"(4,271)j'Income tax receivablej"(14,343) j"-- j"--k'Inventories k"7,965 k"11,046k"(2,794)!l'Prepaid expenses and other l"1,955 l"2,846l"(1,367)m'Other long-term assets m"6,579 m"2,597m"(5,447)n'Accounts payablen"(1,628) n"3,534 n"1,362-o'Accrued payrolls and employee benefits o"1,062 o"307o"(2,729)p'Restructuring reservesp"(5,157)p"(23,882) p"17,858 q'Other current liabilitiesq"(1,361)q"(1,858) q"6,288'r'Postretirement benefit liabilityr"(1,059) r"591r"(1,765)"s'Other long-term liabilitiess"(4,979) s"7,332 s"(352)0t'Net cash provided by operating activitiest"117,229 t"71,766 t"76,862,u'Cash flows from investing activities:-v'Acquisitions of companies, net of cashw'acquired w"--w"(74,233)w"(186,472)-x'Disposals of investments in governmenty'securities y"5,314 y"1,340 y"--3z'Purchases of properties, plants and equipmenz"t (78,833)z"(49,253)z"(38,093)2{'Proceeds on disposals of properties, plants|'and equipment |"4,672 |"18,874 |"3,041,}'Net cash used in investing activities}"(68,847)}"(103,272)}"(221,524),~'Cash flows from financing activities:*'Proceeds from issuance of long-term'obligations "-- "54,500"271,000('Payments on long-term obligations"(23,000)"(31,500)"(88,152)'Debt issuance costs "-- "-- "(410)%'Acquisitions of treasury stock"(4,968)"(11,102) "-- 'Exercise of stock options "190 "291 "207'Dividends paid"(14,619)"(14,315)"(13,756)/'Net cash (used in) provided by financing'activities"(42,397)"(2,126)"168,889('Effects of exchange rates on cash"(1,532) "1,238 "(617)/'Net increase (decrease) in cash and cash'equivalents "4,453"(32,394) "23,6105'Cash and cash equivalents at beginning of year "8,935 "41,329 "17,719/'Cash and cash equivalents at end of year"$ 13,388"$ 8,935"$ 41,329C'See accompanying Notes to Consolidated Financial Statements.7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIESA'CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITYB'(Dollars and shares in thousands, except per share amounts)^Accumulated ^Other^Capital ^Stock^Treasury ^ Stock^Retained^Comprehensive^Shareholders' ^Shares ^Amount ^Shares ^Amount^Earnings ^Income ^Equity'Balance at'November 1, 1997 " 22,902"$ 9,739 "15,519"$(41,868)"$476,383"$(5,283)"$438,971'Net income "37,441 "37,441 'Other'comprehensive'income -'foreign'currency'translation"(2,761)"(2,761)'Comprehensive 'income "34,680'Dividends paid'(Note 6):'Class A - $0.48"(5,235)"(5,235)'Class B - $0.71"(8,521)"(8,521)'Stock options'exercised "9 "197 "(9)" 10 "207'Balance at'October 31, 1998 " 22,911"$ 9,936 "15,510"$(41,858)"$500,068"$(8,044)"$460,102'Net income "51,373 "51,373 'Other'comprehensive'income -'foreign'currency'translation "1,633 "1,633'Comprehensive 'income "53,006'Dividends paid'(Note 6):'Class A - $0.50"(5,435)"(5,435)'Class B - $0.74"(8,880)"(8,880)'Treasury shares'acquired  " (396) "396"(11,102)"(11,102)'Stock options'exercised  " 12 "271 "(12)" 20 "291'Balance at'October 31, 1999  "22,527"$10,207 "15,894"$(52,940)"$537,126"$(6,411)"$487,982'Net income "75,794 "75,794 'Other'comprehensive'income -'foreign'currency'translation"(1,865)"(1,865)'Comprehensive 'income "73,929'Dividends paid'(Note 6):'Class A - $0.52"(5,492)"(5,492)'Class B - $0.77"(9,127)"(9,127)'Treasury shares'acquired  "(163) "163"(4,968)"(4,968)'Stock options'exercised  " 7 "176 "(7)" 14 "190'Balance at'October 31, 2000  "22,371"$10,383 "16,050"$(57,894)"$598,301"$(8,276)"$542,514C'See accompanying Notes to Consolidated Financial Statements.