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)  Goodwill represents the excess of the fair value of the consideration paid over the fair value  of net assets acquired. The contributing factors to the amount recorded as goodwill include  expected future cash flows, potential operational synergies, the utilization of technology, and  cost savings opportunities in the delivery of certain shared administrative and other services.  The goodwill related to Midwest Gas Utilities has been allocated to the Liberty Utilities  (Central) segment. Property, plant & equipment are amortized in accordance with regulatory requirements over  the estimated useful life of the asset using the straight line method. The weighted average  life is 30 years.  All transaction costs related to the acquisition have been expensed through the Consolidated  Statement of Operations.  Midwest Gas Utilities contributed revenue of $25,936 and net earnings of $1,229 to the  Company’s results in 2012. Pro forma financial information is disclosed in note 3 (c).  (b) Acquisition of Midwest Gas Utilities (continued)  (c)  Pro forma financial information  The supplemental pro forma financial information below was prepared using the acquisition  method of accounting and is based on the historical financial information of APUC, Granite  State, EnergyNorth and the Midwest Gas Utilities, reflecting results of operations for the  years ended December 31, 2012 and 2011 on a comparative basis as though the  aforementioned companies were combined as of the beginning of fiscal year 2011. The  estimated acquirees’ pre-acquisition results have been added to APUC’s historical results,  and the totals have been adjusted for the pro forma effects of acquisition-related costs,  interest expense related to the financing of the business combinations, and related income  taxes.  The above unaudited pro forma financial information is presented for informational purposes  only and does not purport to represent what the results would have been had the  acquisition closed on the date assumed, nor is it necessarily indicative of the results that  may be expected in future periods.  2012 Annual Report 93 3.  Business acquisitions and development projects (continued)  Pro forma  2012 2011 Total revenue  $ 521,538  $ 574,618 Net earnings attributable to APUC  22,584 33,328 Basic net earnings per share  0.14 0.23 Diluted net earnings per share  0.14 0.23