MITSUBISHI ESTATE Annual Report 2014

Millions of yenThousands of U.S. dollars (Note 3)201420132014Cash flows from operating activitiesIncome before income taxes and minority interests¥ 108,685¥   56,741$ 1,056,022Depreciation and amortization74,805 73,364 726,836 (Gain) loss on sales or disposal of property and equipment(3,131)11,560 (30,429)(Gain) loss on sales of securities(314)(260)(3,059)Valuation loss on equity investments7,648 8,985 74,316 Impairment loss32,644 2,826 317,187 Equity in net income of affiliates(1,547)(517)(15,039)Increase (decrease) in allowances(7,180)4,973 (69,766)Increase (decrease) in liability for retirement benefits(2,746)—(26,688)Interest and dividend income(4,109)(4,023)(39,926)Interest expense22,176 24,594 215,477 (Increase) decrease in notes and accounts receivable(1,143)11,672 (11,114)(Increase) decrease in inventories93,854 43,173 911,921 (Increase) decrease in equity investments(18,180)(24,319)(176,649)Increase (decrease) in notes and accounts payable49,165 (13,833)477,707 Increase (decrease) in lease deposits received3,995 5,965 38,820 Other28,593 (26,539)277,820 Subtotal383,216 174,363 3,723,435 Interest and dividends received4,530 6,277 44,020 Interest paid(22,154)(24,940)(215,261)Income taxes paid(29,102)(33,413)(282,768)Net cash provided by operating activities336,489 122,286 3,269,426 Cash flows from investing activitiesProceeds from sales of marketable securities—181 —Proceeds from sales of property and equipment32,440 9,948 315,203 Purchases of property and equipment(159,366)(206,608)(1,548,453)Proceeds from sales of investment securities1,034 2,247 10,050 Purchases of investment securities(1,401)(2,804)(13,617)Other(6,243)(20,957)(60,668)Net cash used in investing activities(133,537)(217,992)(1,297,485)Cash flows from financing activitiesNet increase and decrease in short-term borrowings(20,905)(13,301)(203,126)Net increase and decrease in commercial paper(35,000)35,000 (340,069)Increase in long-term borrowings165,587 399,752 1,608,898 Repayment of long-term borrowings(207,047)(486,374)(2,011,732)Proceeds from issuance of corporate bonds15,761 187,650 153,143 Repayment of corporate bonds(68,207)(82,881)(662,721)Cash dividends paid(16,658)(16,652)(161,862)Other(11,044)3,958 (107,312)Net cash provided by (used in) financing activities(177,514)27,150 (1,724,783)Effect of exchange rate changes on cash and cash equivalents8,321 3,838 80,851 Net increase and decrease in cash and cash equivalents33,758 (64,716)328,008 Cash and cash equivalents at beginning of year191,837 215,771 1,863,945 Increase in cash and cash equivalents arising from newly consolidated subsidiaries—42,724 —Cash and cash equivalents of subsidiaries excluded from consolidation(856)(1,942)(8,320)Cash and cash equivalents at end of year (Note 16)¥ 224,739¥ 191,837$ 2,183,634See accompanying notes to consolidated financial statements.Consolidated Statements of Cash FlowsMitsubishi Estate Co., Ltd. and Consolidated SubsidiariesYears ended March 31, 2014 and 2013ANNUAL REPORT 201455