10. Gain on Extinguishment of Tie-in Shares The Company recorded a gain for the year ended December 31, 2012 on extinguishment of tie-in shares of non-consolidated subsidiary, Tokaiunyuseikei Co., Ltd., by consolidated subsidiary, Aronkasei Co., Ltd., on April 1, 2012. 11. Income Taxes for Prior Years The Company received an income tax refund during year ended December 31, 2012 for income taxes for prior years based on a mutual agreement reached between Japan and the United States on transfer pricing taxation. 12. Loss on Disposal of Property, Plant and Equipment The components of loss on disposal of property, plant and equipment for the years ended December 31, 2013 and 2012 were as follows: Millions of yen Thousands of U.S. dollars 2013 2012 2013 Machinery, equipment and other...... \ 48 \ 59 $ 463 Disposal costs................................................. 140 370 1,334 Buildings and structures, etc. ............... 60 92 569 13. Impairment Loss on Property, Plant and Equipment The Company and its consolidated subsidiaries have recognized impairment losses on the following classes of assets for the years ended December 31, 2013 and 2012: 2013 Location Major use Category Millions of yen Thousands of U.S. dollars Takaishi city, Osaka Facilities for manufacturing ethylene carbonate Machinery, etc. \645 $6,124 Minato-ku, Nagoya city Facilities for manufacturing ethylene carbonate Machinery, etc. 138 1,317 Total................................................................................................................ \784 $7,442 2012 Location Major use Category Millions of yen Minato-ku, Nagoya city Facilities for manufacturing inorganic chloride Buildings, structures and etc. \542 Minato-ku, Nagoya city Idle Buildings and structures 245 Total................................................................................................................ \787 The Company and its consolidated subsidiaries have grouped business-use assets according to the minimum independent cash-flow-generating unit for the year ended December 31, 2013. The Company wrote down the book values of certain ethylene carbonate production facilities that experienced a material drop in profitability to their respective recoverable amounts. Accordingly, \784 million (U.S.$7,442 thousand) of impairment losses were recognized in the statement of income for the year ended December 31, 2013. The Company and its consolidated subsidiaries have grouped business-use assets according to the minimum independent cash-flow-generating unit and have identified idle assets as one group for the purpose of accounting for impairment of property, plant and equipment on an individual basis for the year ended December 31, 2012. When there is a decrease in profitability, no specific plan for future use, or the book value of such idle assets is less than their respective recoverable amounts, the book value of the assets is written down to its recoverable amount. The assets listed in the above tables were written down to their respective recoverable amounts and \787 million of impairment losses were recognized in the statement of income for the year ended December 31, 2012. The impairment losses consisted of \78 million (U.S.$744 thousand) for buildings and structures, \704 million (U.S.$6,681 thousand) for machinery, equipment and other and \1 million (U.S.$15 thousand) for other for the year ended December 31, 2013, and consisted of \184 million for buildings and structures, \0 million for other, and \602 million for removal costs for the year ended December 31, 2012. The recoverable amounts applicable to assets for which impairment losses were recognized for corresponding year ended December 31, 2013 were measured using the utility value. This utility value was calculated by discounting future cash flows using a discount rate of 8.1%. The corresponding recoverable amounts were measured based on the memorandum value of the assets for the year ended December 31, 2012. 14. Comprehensive Income Reclassification adjustment and tax effect of other comprehensive income were summarized as follows: Millions of yen Thousands of U.S. dollars 2013 2012 2013 Unrealized holding gain on available-for-sale securities Amount arising during the fiscal year......................................... \4,585 \99 $43,512 Reclassification adjustment............. (3) 278 (34) Amount before tax effect........... 4,582 378 43,477 Tax effect............................................... (1,567) (133) (14,869) Unrealized holding gain on available-for-sale securities..... 3,015 245 28,608 Translation adjustments Amount arising during the fiscal year......................................... 1,883 1,047 17,870 Amount before tax effect........... 1,883 1,047 17,870 Tax effect............................................... . . . Translation adjustments........................... 1,883 1,047 17,870 Total other comprehensive income..... \4,898 \1,293 $46,479 15. Cash and Cash Equivalents The components of cash and cash equivalents at December 31, 2013 and 2012 were summarized as follows: Millions of yen Thousands of U.S. dollars 2013 2012 2013 Cash and deposits........................................ \17,029 \17,096 $161,584 Securities............................................................ 23,000 14,000 218,237 Time deposits with terms in excess of 3 months.............................. (230) (1,567) (2,187) \39,798 \29,529 $377,634 16. Financial Instruments 1. Matters related to the status of financial instruments (1) Policies on financial instruments When managing surplus funds, the Group limits the application of such funds to highly secure financial assets, mainly short-term bank deposits, and it procures funds mainly through bank borrowings. Derivative transactions are Notes to Consolidated Financial Statements 40 Annual Report 2013