/2 HE d 1$&%*7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES('CONSOLIDATED STATEMENTS OF INCOME7'(Dollars in thousands, except per share amounts)&'For the years ended October 31, "1999 "1998 "1997"(As Restated)"(As Restated)'Net sales"$818,827"$814,432"$660,782'Other income, net "17,834 "15,718 "13,801"836,661"830,150"674,583 'Cost of products sold "640,473 "644,892 "562,165* 'Selling, general and administrative 'expenses "112,995  "90,282  "74,958 'Restructuring costs  "--  "27,461  "5,285'Interest expense "15,835 "11,928 "2,670"769,303"774,563"645,078%'Income before income taxes and''equity in earnings of affiliates "67,358 "55,587 "29,505'Income taxes "26,740 "22,483 "11,419*'Income before equity in earnings of'affiliates "40,618 "33,104 "18,086''Equity in earnings of affiliates "10,755 "4,337 "4,440'Net income"$ 51,373"$ 37,441"$ 22,526 'Basic earnings per share:'Class A Common Stock"$ 1.78"$ 1.30"$ 0.78'Class B Common Stock"$ 2.67"$ 1.94"$ 1.17"!'Diluted earnings per share:#'Class A Common Stock#"$ 1.78#"$ 1.29#"$ 0.78$'Class B Common Stock$"$ 2.67$"$ 1.94$"$ 1.17C&'See accompanying Notes to Consolidated Financial Statements.J)'Item 8. Financial Statements and Supplementary Data (continued)7*'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"+'CONSOLIDATED BALANCE SHEETS,'(Dollars in thousands) .'ASSETS/'October 31, /"1999 /"19980"(As Restated)1'CURRENT ASSETS 2'Cash and cash equivalents2"$ 8,9352"$ 41,329%3'Canadian government securities 3"5,314 3"6,65444'Trade accounts receivable - less allowance of15'$2,456 for doubtful items ($2,918 in 1998)5"124,7545"113,9316'Inventories 6"50,706 6"64,8517'Deferred tax asset 7"6,857 7"13,3558'Net assets held for sale 8"6,462 8"1,760!9'Prepaid expenses and other 9"14,270 9"16,626:'Total current assets:"217,298:"258,506<'LONG-TERM ASSETS#='Goodwill - less amortization="142,977="123,677>'Investment in affiliates>"124,360 >"49,059?'Other long-term assets ?"25,218 ?"27,393@"292,555@"200,1291B'PROPERTIES, PLANTS AND EQUIPMENT - at cost)C'Timber properties - less depletion C"9,925 C"9,067 D'Land D"12,280 D"17,170E'BuildingsE"124,594E"157,501F'Machinery and equipmentF"491,533F"505,236#G'Capital projects in progress G"40,651 G"17,045H"678,983H"706,019J'Accumulated depreciationJ"(277,850)J"(286,234)K"401,133K"419,785M"$910,986M"$878,420CO'See accompanying Notes to Consolidated Financial Statements.JR'Item 8. Financial Statements and Supplementary Data (continued)7T'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"U'CONSOLIDATED BALANCE SHEETSV'(Dollars in thousands)+X'LIABILITIES AND SHAREHOLDERS' EQUITYY'October 31, Y"1999 Y"1998Z"(As Restated)['CURRENT LIABILITIES\'Accounts payable\"$ 46,703\"$ 45,361-]'Accrued payrolls and employee benefits ]"10,154 ]"9,859^'Restructuring reserves ^"5,157 ^"32,411 _'Other current liabilities _"10,017 _"10,604 `'Total current liabilities `"72,031 `"98,235b'LONG-TERM LIABILITIESc'Long-term obligationsc"258,000c"235,000d'Deferred tax liability d"48,960 d"42,299'e'Postretirement benefit liability e"21,154 e"27,257"f'Other long-term liabilities f"22,859 f"15,527"g'Total long-term liabilitiesg"350,973g"320,083i'SHAREHOLDERS' EQUITY'j'Capital stock, without par value j"10,207 j"9,936k'Class A Common Stock:$l'Authorized 32,000,000 shares; m'issued 21,140,960 shares;$n'outstanding 10,653,396 shares"o'(10,909,672 shares in 1998)p'Class B Common Stock:/q'Authorized and issued 17,280,000 shares;$r'outstanding 11,873,896 shares"s'(12,001,793 shares in 1998)t'Treasury stock, at costt"(52,940)t"(41,858).u'Class A Common Stock: 10,487,564 shares"v'(10,231,288 shares in 1998)-w'Class B Common Stock: 5,406,104 shares!x'(5,278,207 shares in 1998)z'Retained earningsz"537,126z"500,068-|'Accumulated other comprehensive income%}'- foreign currency translation}"(6,411)}"(8,044)~"487,982~"460,102"$910,986"$878,420C'See accompanying Notes to Consolidated Financial Statements.J'Item 8. Financial Statements and Supplementary Data (continued)7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(Dollars in thousands)&'For the years ended October 31, "1999 "1998 "1997"(As Restated)"(As Restated),'Cash flows from operating activities:'Net income"$ 51,373"$ 37,441"$ 22,526*'Adjustments to reconcile net income('to net cash provided by operating'activities:"'Depreciation, depletion and'amortization "42,360 "39,686 "31,926''Equity in earnings of affiliates"(10,755)"(4,337)"(4,440)'Deferred income taxes "15,815 "(964) "4,703''Gain on disposals of properties, 'plants and equipment, net"(7,962)"(1,747)"(7,023)''Increase (decrease) in cash from$'changes in certain assets and''liabilities, net of effects from'acquisitions: 'Trade accounts receivable"(21,578)"(4,271) "(769)'Inventories "11,046"(2,794) "9,660!'Prepaid expenses and other "2,846"(1,367)"(2,563)'Other long-term assets "2,597"(5,447)"(11,719)'Accounts payable "3,534 "1,362 "1,809-'Accrued payrolls and employee benefits "307"(2,729) "130'Restructuring reserves"(23,882) "17,858 "4,319 'Other current liabilities"(1,858) "6,288"(6,989)''Postretirement benefit liability "591"(1,765) "--"'Other long-term liabilities "7,332 "(352)"(1,455)%'Net cash provided by operating'activities "71,766 "76,862 "40,115,'Cash flows from investing activities:-'Acquisitions of companies, net of cash'acquired"(74,233)"(186,472)"(41,121)-'Disposals of investments in government'securities "1,340 "-- "12,585-'Purchases of investments in government'securities "-- "-- "(639)*'Purchases of properties, plants and'equipment"(49,253)"(38,093)"(36,193)+'Proceeds on disposals of properties,'plants and equipment "18,874 "3,041 "7,634,'Net cash used in investing activities"(103,272)"(221,524)"(57,734),'Cash flows from financing activities:*'Proceeds from issuance of long-term'obligations "54,500"271,000 "52,753('Payments on long-term obligations"(31,500)"(88,152)"(25,804)'Debit issuance costs "-- "(410) "--%'Acquisitions of treasury stock"(11,102) "-- "(31) 'Exercise of stock options "291 "207 "735'Dividends paid"(14,315)"(13,756)"(17,208)%'Net cash (used in) provided by'financing activities"(2,126)"168,889 "10,445('Effects of exchange rates on cash "1,238 "(617)"(1,667)*'Net (decrease) increase in cash and'cash equivalents"(32,394) "23,610"(8,841)#'Cash and cash equivalents at'beginning of year "41,329 "17,719 "26,560#'Cash and cash equivalents at'end of year"$ 8,935"$ 41,329"$ 17,719C'See accompanying Notes to Consolidated Financial Statements.