/2HC       d 1$&|&A%|Page #*7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES('CONSOLIDATED STATEMENTS OF INCOME7'(Dollars in thousands, except per share amounts)&'For the years ended October 31,   'Net sales 0#A ps#A %A'Other income:'Interest and other v2 ^  'Gain on timber sales  1  %    .$A  `#A  d`&A$ 'Costs and expenses (including''depreciation of $30,660 in 1997,%'$26,348 in 1996 and $22,944 in '1995):'Cost of products sold 3!A zA !A*'Selling, general and administrative p9@ @ P@'Interest n   #A !A vc#A!'Income before income taxes As @ p@'Taxes on income , ua @r@'Net income F `@ \@U'Net income per share (based on the average number of shares outstanding during'the year):Q'Based on the assumption that earnings were allocated to Class A and Class V 'B Common Stock to the extent that dividends were actually paid for the year andT!'the remainder were allocated as they would be received by shareholders in theV"'event of liquidation, that is, equally to Class A and Class B shares, share and#'share alike: % % %''Class A Common Stock '{Gz? '? 'Q@('Class B Common Stock ((\? (Gz? (p= ף@P)'Due to the special characteristics of the Company's two classes of stock S*'(see Note 5), earnings per share can be calculated upon the basis of varyingS+'assumptions, none of which, in the opinion of management, would be free fromU,'the claim that it fails fully and accurately to represent the true interest ofL-'the shareholders of each class of stock and in the retained earnings.B/'See accompanying Notes to Consolidated Financial StatementsJ1'Item 8. Financial Statements and Supplementary Data (continued)72'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"3'CONSOLIDATED BALANCE SHEETS5'(Dollars in thousands) 7'ASSETS8'October 31, 8 89'CURRENT ASSETS :'Cash and cash equivalents :7E :g%;'Canadian government securities ;m ;L4<'Trade accounts receivable - less allowance of-='$847 for doubtful items ($826 in 1996) =@ =0@>'Inventories >@ >@@!?'Prepaid expenses and other ?R ??@'Total current assets @A @8AB'LONG TERM ASSETS-C'Cash surrender value of life insurance C. C #D'Goodwill - less amortization DC D E'Other long term assets EQ E G9@ G{91I'PROPERTIES, PLANTS AND EQUIPMENT - at cost)J'Timber properties - less depletion J J K'Land K+ K*L'Buildings LA L@!M'Machinery, equipment, etc. MA MAN'Construction in progress ND N@U@$O'Less accumulated depreciation O Oi QA Q A S A SHEABU'See accompanying Notes to Consolidated Financial StatementsJW'Item 8. Financial Statements and Supplementary Data (continued)7X'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"Y'CONSOLIDATED BALANCE SHEETS['(Dollars in thousands)+]'LIABILITIES AND SHAREHOLDERS' EQUITY^'October 31, ^ ^_'CURRENT LIABILITIES`'Accounts payable `A@ `y{/a'Current portion of long term obligations a8! a -b'Accrued payrolls and employee benefits b5 b#c'Accrued taxes - general ca cd'Taxes on income dT d. e'Total current liabilities e@ e@g'LONG TERM OBLIGATIONS gP@ gX"h'OTHER LONG TERM LIABILITIES h? h.<i'DEFERRED INCOME TAXES i,t iXY"j'Total long term liabilities jp@ j@@l'SHAREHOLDERS' EQUITY'm'Capital stock, without par value m & mJ#n'Class A Common Stock:$o'Authorized 32,000,000 shares; p'issued 21,140,960 shares;$q'outstanding 10,900,672 sharesr'(10,873,172 in 1996)s'Class B Common Stock:/t'Authorized and issued 17,280,000 shares;$u'outstanding 12,001,793 sharesw'Treasury stock, at cost wq w`q.x'Class A Common Stock: 10,240,288 sharesy'(10,267,788 in 1996)-z'Class B Common Stock: 5,278,207 shares|'Retained earnings |A |A(~'Cumulative translation adjustment ~] ~y (lA sA  A HEAB'See accompanying Notes to Consolidated Financial StatementsJ'Item 8. Financial Statements and Supplementary Data (continued)7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(Dollars in thousands)&'For the years ended October 31,   ,'Cash flows from operating activities:'Net income F `@ \@-'Adjustments to reconcile net income to1'net cash provided by operating activities:"'Depreciation, depletion and'amortization | 4g Y'Deferred income taxes _ \$ .'Gain on disposals of properties, plants'and equipment  d /'Increase (decrease) in cash from changes0'in certain assets and liabilities, net of!'effects from acquisitions: 'Trade accounts receivable   'Inventories %  !'Prepaid expenses and other   'Other long term assets 9  'Accounts payable    -'Accrued payrolls and employee benefits a  'Accrued taxes - general   'Taxes on income  I "'Other long term liabilities Q  0'Net cash provided by operating activities `@  @ @,'Cash flows from investing activities:-'Acquisitions of companies, net of cash'acquired    "---'Disposals of investments in government'securities )1  #-'Purchases of investments in government'securities  E *'Purchases of properties, plants and'equipment   ) @+'Proceeds on disposals of properties,'plants and equipment  S ,'Net cash used in investing activities 0 `% ,'Cash flows from financing activities:*'Proceeds from issuance of long term'obligations  @ A, .('Payments on long term obligations 4  )'Payments on short term obligations "--  "--%'Acquisitions of treasury stock  "--  'Exercise of stock options  "-- "--'Dividends paid ȼ T l/'Net cash provided by (used in) financing'activities (  .'Foreign currency translation adjustment }  /'Net (decrease) increase in cash and cash'equivalents w D 5'Cash and cash equivalents at beginning of year g |{ gs4'Cash and cash equivalents at end of year 7E g |{B'See accompanying Notes to Consolidated Financial StatementsJ'Item 8. Financial Statements and Supplementary Data (continued)7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIESA'CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITYB'(Dollars and shares in thousands, except per share amounts)"Capital "Stock"Treasury "Stock "Retained "Translation "Share- "Shares "Amount "Shares"Amount "Earnings" Adjustment"holders' "Equity'Balance at November'1, 1994 v^ J# 7   A  lA'Net income \@ \@'Dividends paid'(Note 5):'Class A - $.40  'Class B - $.59 i i'Treasury shares'acquired  k  'Translation gain    'Balance at October'31, 1995  ^ J#  8  A  ԼA'Net income `@ `@'Dividends paid'(Note 5):'Class A - $.48  'Class B - $.71  'Treasury shares'acquired P   'Translation gain  'Balance at October'31, 1996 [Y J# < `q A y sA'Net income F F'Dividends paid'(Note 5):'Class A - $.60  'Class B - $.89 F F'Treasury shares'acquired    'Stock options'exercised     'Translation loss  'Balance at October'31, 1997 vY  & < q A ] (lAB'See accompanying Notes to Consolidated Financial Statements