28 I5 Arial5! Arial5" Arial5# Arial5$ Arial5% Arial5& Arial5'  Arial5(  Arial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` @  a @  b @  c @  d @  f @  g @ h @ @@ j @  k @@  l @@  m @@  n @@  o @@  p @@  q @@  r @@  s @@  u @  v @@  w @@  x @@  y @@  z @@  { @@  | @@  ~ @@  @  @@  @@  @@  @  @@  @@  @@  @@  @@  @@  @  @  @  @  @  @  @  @  @  @  @@  @  @  @@  @  @@  @  @@  @@  @  @@  @@  @@  @@  @@  @@  @  @@  @@  @  @@  @@  @@  @@  @  @@  @@  @@  @@  @@  @@  @@  @@  @@  @@  @@  @@  @@  @@  @  @  q@' q@' q@'q0*/'ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS6'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES''CONSOLIDATED STATEMENTS OF INCOME'(UNAUDITED);'(U.S. dollars in thousands, except per share amounts)^Three months^Three months^Nine months^Nine months^ended July 31,^ended July 31,^ended July 31,^ended July 31, ^2002 ^2001 ^2002 ^2001 'Net sales "$ 435,148 "$ 435,766 "$1,197,251 "$1,011,247 'Gain on sale of timberland "1,127 "415 "9,677 "78,674 'Other income, net "659 "2,274 "4,696 "4,288 "436,934 "438,455"1,211,624"1,094,209'Cost of products sold "344,767 "344,525 "957,465 "802,6632'Selling, general and administrative expenses "64,591 "60,196 "187,774 "141,695'Restructuring charge"--"--"-- "11,534 'Debt extinguishment charge "4,390"-- "4,390"--'Interest expense, net "13,854 "17,047 "40,949 "29,265 "427,602 "421,768"1,190,578 "985,157/' Income before income taxes, minority?' interest in income of consolidated subsidiaries4' and equity in earnings of affiliates "9,332 "16,687 "21,046 "109,052'Income taxes "3,360 "6,303 "7,577 "41,3317' Income before minority interest in income of7 ' consolidated subsidiaries and equity in&!' earnings of affiliates !"5,972 !"10,384 !"13,469 !"67,7211"'Minority interest in income of consolidated#' subsidiaries #"(155) #"(224) #"(622) #"(358)&$'Equity in earnings of affiliates $"2,134 $"2,753 $"5,826 $"7,083&' Net income&"$ 7,951&"$ 12,913&"$ 18,673&"$ 74,446('Basic earnings per share:)'Class A Common Stock)"$ 0.28)"$ 0.46)"$ 0.67)"$ 2.64*'Class B Common Stock*"$ 0.42*"$ 0.68*"$ 0.99*"$ 3.94!,'Diluted earnings per share:-'Class A Common Stock-"$ 0.28-"$ 0.46-"$ 0.66-"$ 2.63.'Class B Common Stock."$ 0.42."$ 0.68."$ 0.99."$ 3.94A0'See accompanying Notes to Consolidated Financial Statements62'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES!3'CONSOLIDATED BALANCE SHEETS!4'(U.S. dollars in thousands) 8'ASSETS:^July 31,:^October 31, ;^2002 ;^2001<^(Unaudited)='CURRENT ASSETS$>' Cash and cash equivalents>"$ 21,164>"$ 29,7205?' Trade accounts receivable - less allowance,@' of $11,681 ($10,596 in 2001) @"268,805 @"282,982A' Inventories A"133,489 A"123,363#B' Net assets held for sale B"14,369 B"12,530C' Deferred tax asset C"9,648 C"9,697%D' Prepaid expenses and other D"37,726 D"45,904 F"485,201 F"504,196H'LONG-TERM ASSETS'I' Goodwill - less amortization I"235,653 I"236,623"J' Other intangible assets J"30,012 J"33,179#K' Investment in affiliates K"146,555 K"144,071!L' Other long-term assets L"45,146 L"44,282 N"457,366 N"458,1550P'PROPERTIES, PLANTS AND EQUIPMENT - at cost-Q' Timber properties - less depletion Q"78,698 Q"74,851R' Land R"83,072 R"81,048S' Buildings S"233,753 S"235,980"T' Machinery and equipment T"721,505 T"689,637'U' Capital projects in progress U"41,375 U"43,200W"1,158,403W"1,124,716#X' Accumulated depreciationX"(374,763)X"(315,879) Z"783,640 Z"808,837\"$1,726,207\"$1,771,188A^'See accompanying Notes to Consolidated Financial Statements6`'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES!a'CONSOLIDATED BALANCE SHEETS!b'(U.S. dollars in thousands)*d'LIABILITIES AND SHAREHOLDERS' EQUITYf^July 31,f^October 31, g^2002 g^2001h^(Unaudited)j'CURRENT LIABILITIESk' Accounts payablek"$ 137,078k"$ 117,1171l' Accrued payrolls and employee benefits l"35,308 l"27,604!m' Restructuring reserves m"4,006 m"15,109 n' Short-term borrowings n"24,636 n"16,533,o' Current portion of long-term debt o"17,890 o"43,140$p' Other current liabilities p"72,517 p"74,016 r"291,435 r"293,519u'LONG-TERM LIABILITIESv' Long-term debt v"630,362 v"654,374!w' Deferred tax liability w"119,597 w"124,346+x' Postretirement benefit liability x"47,675 x"50,028&y' Other long-term liabilities y"53,760 y"62,015 {"851,394 {"890,763~'MINORITY INTEREST ~"1,167 ~"560'SHAREHOLDERS' EQUITY*' Common stock, without par value "11,974 "10,446"' Treasury stock, at cost"(60,298)"(58,812)' Retained earnings "678,853 "671,917/' Accumulated other comprehensive loss1' - foreign currency translation"(34,009)"(21,378)(' - interest rate swaps"(11,469)"(13,071).' - minimum pension liability "(2,840) "(2,756) "582,211 "586,346"$1,726,207"$1,771,188A'See accompanying Notes to Consolidated Financial Statements6'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES+'CONSOLIDATED STATEMENTS OF CASH FLOWS'(UNAUDITED)!'(U.S. dollars in thousands)('For the nine months ended July 31, ^2002 ^2001+'Cash flows from operating activities:' Net income"$ 18,673"$ 74,446:' Adjustments to reconcile net income to net cash1' provided by operating activities:=' Depreciation, depletion and amortization "74,896 "57,462C' Equity in earnings of affiliates, in excess of-' amounts distributed "(3,529) "(4,214)3' Minority interest in income of3' consolidated subsidiaries "622 "358*' Deferred income taxes "(3,090) "23,671@' Gain on disposals of properties, plants and#' equipment"(13,097)"(80,906)' Other, net"(17,682)"(33,484)>' Changes in current assets and liabilities "27,292 "50,0594' Net cash provided by operating activities "84,085 "87,392+'Cash flows from investing activities:1' Acquisition of businesses, net of cash"--"(314,763)8' Purchases of properties, plants and equipment"(38,805)"(124,435):' Proceeds on disposals of properties, plants and' equipment "18,498 "85,6840' Net cash used in investing activities"(20,307)"(353,514)+'Cash flows from financing activities:'' Proceeds from long-term debt "242,750 "760,000%' Payments on long-term debt"(305,729)"(433,196),' Payments on short-term borrowings"-- "(4,902).' Proceeds from short-term borrowings "7,476"--' Dividends paid"(11,740)"(11,197))' Acquisitions of treasury stock "(1,627) "(117)$' Exercise of stock options "1,669"699'Net cash (used in) provided by financing activities"(67,201) "310,657''Effects of exchange rates on cash "(5,133) "(1,622):'Net (decrease) increase in cash and cash equivalents "(8,556) "42,9136'Cash and cash equivalents at beginning of period "29,720 "13,3880'Cash and cash equivalents at end of period"$ 21,164"$ 56,301A'See accompanying Notes to Consolidated Financial Statements 6Sheet1 6Sheet2 6Sheet3d_ Arial  O4!*d"""dFM3FM3 PropertyWK3WK3 Property  : 8: :8: {:CMHdr: