Algonquin Power & Utilities Corp. – Consolidated Financial Statements ALGONQUIN POWER & UTILITIES CORP.  Notes to the Consolidated Financial Statements  December 31, 2012 and 2011   (in thousands of Canadian dollars except as noted and amounts per share)  3.  Business acquisitions and development projects (continued) 2012 Annual Report 92 The determination of the fair value of assets and liabilities acquired has been based upon  management’s preliminary estimates and certain assumptions with respect to the fair values  of the assets acquired and liabilities assumed. The Company has not completed the fair  value measurements. In addition, the purchase agreements provides for a final purchase  price adjustment based on final agreed working capital and rate base balances at the  acquisition date. The Company will continue to review information and perform further  analysis prior to finalizing the fair value of the consideration paid and the fair value of the  assets acquired and liabilities assumed. The actual fair values of the assets acquired and  liabilities assumed may differ from the amounts above. The following table summarizes the preliminary determination of the fair value of the assets  acquired and liabilities assumed at the acquisition date:  On August 1, 2012, Liberty Utilities acquired certain regulated natural gas distribution utility  assets (the "Midwest Gas Utilities") located in Missouri, Iowa, and Illinois. The total purchase  price for the Midwest Utilities was approximately $128,890 (U.S. $128,223), subject to final  closing adjustments. Granite State and EnergyNorth contributed revenue of $86,993 and a net loss of $354 to the  Company’s results in 2012. Pro forma financial information is disclosed in note 3 (c). All transaction costs related to the acquisition have been expensed through the Consolidated Statement of Operations.  Property, plant & equipment are amortized in accordance with regulatory requirements  which are generally over the estimated useful lives of the assets using the straight line  method. The weighted average life of the acquired assets of EnergyNorth and Granite State  are 40 years and 28 years respectively. (a) Acquisition of New Hampshire electric and gas utilities (continued)  (b) Acquisition of Midwest Gas Utilities  Working capital and restricted cash  $ 7,130 Property, plant and equipment  123,631 Regulatory assets  146 Deferred income tax assets, net  9,215 Goodwill  25,162 Current portion of long-term liabilities  (1,841) Current portion of derivative liabilities  (547) Advances in aid of construction  (276) Regulatory liabilities  (28,581) Pension and OPEB (5,149) Total net assets acquired  $128,890