Consolidated Statements of Cash Flows Millions of yen Thousands of U.S. dollars (Note 4) Years ended December 31, 2013 2012 2013 Operating activities Income before income taxes and minority interests.................................................................................................................. \14,731 \14,518 $139,783 Adjustments to reconcile income before income taxes and minority interests to net cash provided by operating activities: Depreciation and amortization....................................................................................................................................................... 7,645 8,422 72,546 Impairment losses on property, plant and equipment..................................................................................................... 784 787 7,442 Amortization of goodwill.................................................................................................................................................................... 9 9 94 Increase (decrease) in provision for doubtful receivables............................................................................................... 12 (40) 118 Reversal of provision for retirement benefits.......................................................................................................................... (374) (328) (3,553) Decrease in other provisions............................................................................................................................................................ (13) (12) (124) Interest and dividend income.......................................................................................................................................................... (450) (452) (4,271) Interest expense........................................................................................................................................................................................ 127 142 1,210 Foreign currency exchange gain................................................................................................................................................... (287) (123) (2,727) Equity in earnings of affiliates........................................................................................................................................................... (294) (271) (2,798) Subsidy income......................................................................................................................................................................................... (294) (287) (2,796) Compensation income......................................................................................................................................................................... (124) (515) (1,176) Loss on disposal of property, plant and equipment........................................................................................................... 249 521 2,368 Loss on valuation of investment securities.............................................................................................................................. . 313 . Decrease (increase) in receivables................................................................................................................................................. 794 (1,041) 7,536 Decrease in inventories........................................................................................................................................................................ 554 1,198 5,264 Increase (decrease) in payables....................................................................................................................................................... 627 (327) 5,954 Other, net...................................................................................................................................................................................................... (524) (148) (4,976) Subtotal................................................................................................................................................................................................. 23,174 22,364 219,892 Interest and dividends received.............................................................................................................................................................. 769 682 7,305 Interest paid......................................................................................................................................................................................................... (134) (144) (1,272) Subsidy income received............................................................................................................................................................................ 294 287 2,796 Compensation income received............................................................................................................................................................ 124 515 1,176 Income taxes paid............................................................................................................................................................................................ (6,205) (411) (58,878) Net cash provided by operating activities........................................................................................................................................ 18,023 23,293 171,021 Investing activities Decrease (increase) in time deposits................................................................................................................................................... 1,417 (1,034) 13,453 Purchases of investment securities....................................................................................................................................................... (353) (955) (3,358) Proceeds from redemption of investment securities................................................................................................................. 115 300 1,091 Purchases of property, plant and equipment................................................................................................................................ (6,917) (12,827) (65,638) Other, net.............................................................................................................................................................................................................. (1,113) (523) (10,568) Net cash used in investing activities.................................................................................................................................................... (6,852) (15,041) (65,020) Financing activities Decrease in short-term bank loans....................................................................................................................................................... (46) (50) (443) Proceeds from long-term debt................................................................................................................................................................ 4,721 450 44,795 Repayment of long-term debt................................................................................................................................................................. (3,802) (790) (36,080) Proceeds from sales of treasury stock................................................................................................................................................. 6 5 63 Purchases of treasury stock........................................................................................................................................................................ (63) (22) (599) Repayment of lease obligations.............................................................................................................................................................. (102) (110) (972) Cash dividends to shareholders.............................................................................................................................................................. (2,807) (2,858) (26,634) Net cash used in financing activities.................................................................................................................................................... (2,094) (3,377) (19,871) Effect of exchange rate changes on cash and cash equivalents................................................................................... 1,192 658 11,311 Net increase in cash and cash equivalents................................................................................................................................... 10,269 5,533 97,440 Cash and cash equivalents at beginning of the year............................................................................................................. 29,529 23,992 280,193 Increase in cash and cash equivalents resulting from merger of subsidiaries.................................................... . 3 . Cash and cash equivalents at end of the