Algonquin Power & Utilities Corp. – Consolidated Financial Statements Algonquin Power & Utilities Corp. Consolidated Statements of Cash Flows See accompanying notes to consolidated financial statements 77 2012 Annual Report 2012 2011 Cash provided by (used in): Operating Activities: Net earnings from continuing operations $ 23,103 $ 28,054  Adjustments and items not affecting cash: Depreciation of property, plant and equipment 50,382  37,988  Amortization of intangible assets 4,151  6,433  Other amortization 2,175 2,192 Gain on sale of assets  - (357) Deferred taxes  (14,304) (22,847) Unrealized (gain)/loss on derivative financial instruments (3,127) 2,324  Share-based compensation 1,956 769 Pension and post retirement expense 2,852  - Write down of long lived assets  - 15,166  Unrealized foreign exchange loss 57  - Changes in non-cash operating items (note 22) (3,884) (1,542) Cash provided/(used) in discontinued operations (note 18) (375) 1,515  62,986 69,695 Financing Activities: Cash dividends on common shares (36,917) (28,582) Cash dividends on preferred shares (769)  - Cash distributions to non-controlling interests (2,640) (523) Issuance of common shares 143,041  118,846  Proceeds from subscription receipts 61,160  - Issuance of preferred shares 115,300  - Deferred financing costs (5,435) (3,642) Increase in long-term liabilities 505,542  204,759  Decrease in long-term liabilities (75,432) (134,932) Increase in advances in aid of construction 1,051  6,288  Decrease in other long-term liabilities (860) (297) 704,041 161,917 Investing Activities: Decrease/(increase) in restricted cash 805  (1,036) Increase in short-term investments  - (833) Increase in other assets (2,481) (2,438) Distributions received in excess of equity income 343  3,839  Receipt of principal on notes receivable 1,894  1,172  Decrease in non-controlling interest - 1,351  Proceeds from liquidation of Highground assets  - 1,073  Increase in long-term investments and notes receivable  - (6,900) Proceeds from sale of property, plant and equipment  - 1,583  Proceeds from sale of subsidiaries 204  - Additions to property, plant and equipment (75,692) (60,745) Additions to intangibles (note 3(f)) (2,237)  - Acquisitions of operating entities (note 3(a),(b), and (d)) (669,905) (100,058) Acquisition of noncontrolling interest in Calpeco (note 3(e)) (38,756)  - (785,825) (162,992) (967) (482) Increase/(decrease) in cash and cash equivalents from continuing operations (19,765) 68,138  Cash and cash equivalents, beginning of the period 72,887  4,749  Cash and cash equivalents, end of the period $ 53,122 $ 72,887  Supplemental disclosure of cash flow information: Cash paid during the period for interest expense $ 28,635 $ 28,143  Cash paid during the period for income taxes $ 252 $ 195  Non-cash transactions Property, plant and equipment acquisitions in accruals $ 10,495 $ 8,556  Effect of exchange rate differences on cash  ( thousands of Canadian dollars )