Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income Millions of yen Thousands of U.S. dollars (Note 6) Years ended December 31, 2012 2011 2012 Net sales ....................................................................................................................................................................................... \148,203 \153,007 $1,711,746 Cost of sales ............................................................................................................................................................................... 108,246 107,663 1,250,246 Gross profit ................................................................................................................................................................................. 39,956 45,344 461,500 Selling, general and administrative expenses (Notes 23 and 27) .............................................................. 25,372 28,006 293,054 Operating income .................................................................................................................................................................. 14,583 17,338 168,445 Other income (expenses): Interest and dividend income ................................................................................................................................. 452 465 5,221 Equity in earnings of affiliates .................................................................................................................................. 271 414 3,137 Interest on refund of income taxes and other ............................................................................................... 214 . 2,478 Interest expense ............................................................................................................................................................... (142) (213) (1,640) Environment readiness fee ....................................................................................................................................... (158) (434) (1,828) Foreign currency exchange loss ............................................................................................................................. . (62) . Subsidy income ................................................................................................................................................................ 287 . 3,314 Compensation income (Note 11) .......................................................................................................................... 515 . 5,955 Gain on extinguishment of tie-in shares (Note 12) ..................................................................................... 87 . 1,009 Gain on negative goodwill ........................................................................................................................................ . 3,080 . Gain on revision of retirement benefit plan .................................................................................................... . 149 . Loss on disposal of property, plant and equipment .................................................................................. (521) (515) (6,021) Impairment loss on property, plant and equipment (Note 15) .......................................................... (787) (476) (9,093) Loss on valuation of investment securities ...................................................................................................... (313) (441) (3,624) Loss on disaster (Note 16) .......................................................................................................................................... . (462) . Other, net ............................................................................................................................................................................. 28 150 332 Income before income taxes and minority interests ........................................................................................ 14,518 18,992 167,687 Income taxes (Note 24): Current ................................................................................................................................................................................... 5,348 3,313 61,771 Prior years (Note 13) ...................................................................................................................................................... (712) . (8,233) Deferred ................................................................................................................................................................................ (168) 2,043 (1,947) 4,466 5,357 51,590 Income before minority interests ................................................................................................................................. 10,051 13,635 116,096 Minority interests .................................................................................................................................................................... 352 635 4,065 Net income (Note 33) .......................................................................................................................................................... \ 9,699 \ 13,000 $ 112,031 Consolidated Statements of Comprehensive Income Millions of yen Thousands of U.S. dollars (Note 6) Years ended December 31, 2012 2011 2012 Income before minority interests ................................................................................................................................. \10,051 \13,635 $116,096 Unrealized holding gain on available-for-sale securities ................................................................................ 245 (337) 2,834 Translation adjustments ..................................................................................................................................................... 1,047 (331) 12,104 Total other comprehensive income ............................................................................................................................ 1,293 (668) 14,938 Comprehensive income (Note 17) ............................................................................................................................... \11,345 \12,966 $131,035 Comprehensive income attributable to owners of the parent .................................................................. \10,901 \12,351 $125,911 Comprehensive income attributable to minority interests .......................................................................... 443 615 5,124 See accompanying notes to consolidated financial statements. Toagosei Co., Ltd. and Consolidated Subsidiaries 34 Annual Report 2012