Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income Millions of yen Thousands of U.S. dollars (Note 4) Years ended December 31, 2013 2012 2013 Net sales........................................................................................................................................................................................ \151,081 \148,203 $1,433,548 Cost of sales................................................................................................................................................................................ 112,204 108,246 1,064,656 Gross profit.................................................................................................................................................................................. 38,877 39,956 368,891 Selling, general and administrative expenses (Notes 20 and 25)............................................................... 24,376 25,372 231,296 Operating income................................................................................................................................................................... 14,501 14,583 137,594 Other income (expenses): Interest and dividend income.................................................................................................................................. 450 452 4,271 Equity in earnings of affiliates................................................................................................................................... 294 271 2,798 Interest on refund of income taxes and other................................................................................................ 66 214 630 Foreign currency exchange gain........................................................................................................................... 186 37 1,764 Interest expense................................................................................................................................................................ (127) (142) (1,210) Environment readiness fee........................................................................................................................................ (99) (158) (943) Subsidy income................................................................................................................................................................. 294 287 2,796 Compensation income (Note 9)............................................................................................................................. 124 515 1,176 Gain on extinguishment of tie-in shares (Note 10)...................................................................................... . 87 . Loss on disposal of property, plant and equipment (Note 12)............................................................ (249) (521) (2,368) Impairment loss on property, plant and equipment (Note 13)........................................................... (784) (787) (7,442) Loss on valuation of investment securities....................................................................................................... . (313) . Other, net.............................................................................................................................................................................. 75 (8) 713 Income before income taxes and minority interests......................................................................................... 14,731 14,518 139,783 Income taxes (Note 21): Current.................................................................................................................................................................................... 4,845 5,348 45,980 Prior years (Note 11)....................................................................................................................................................... . (712) . Deferred................................................................................................................................................................................. 11 (168) 109 4,857 4,466 46,089 Income before minority interests.................................................................................................................................. 9,874 10,051 93,693 Minority interests..................................................................................................................................................................... 269 352 2,554 Net income (Note 31)........................................................................................................................................................... \ 9,605 \ 9,699 $ 91,138 Consolidated Statements of Comprehensive Income Millions of yen Thousands of U.S. dollars (Note 4) Years ended December 31, 2013 2012 2013 Income before minority interests.................................................................................................................................. \ 9,874 \10,051 $ 93,693 Unrealized holding gain on available-for-sale securities................................................................................. 3,015 245 28,608 Translation adjustments...................................................................................................................................................... 1,883 1,047 17,870 Total other comprehensive income............................................................................................................................ 4,898 1,293 46,479 Comprehensive income (Note 14)............................................................................................................................... \14,772 \11,345 $140,172 Comprehensive income attributable to owners of the parent................................................................... \14,340 \10,901 $136,069 Comprehensive income attributable to minority interests........................................................................... 432 443 4,102 See accompanying notes to consolidated financial statements. Toagosei Co., Ltd. and Consolidated Subsidiaries 34 Annual Report 2013