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)  The changes in non-cash operating items is comprised of the following: 22.  Non-cash operating items  2012 2011 Accounts receivable  $ (14,895)  $ (11,674)  Related party balances  1,476  145  Supplies and consumable inventory  (3,621)  (1,087)  Income tax receivable  (423)  (133)  Prepaid expenses  (4,629)  (2,071)  Accounts payable  (7,553)  3,991  Accrued liabilities  31,105  9,010  Current income tax liability 131  207  Net regulatory assets and liabilities  (5,475)  70 $ (3,884)  $ (1,542)  23. Segmented information APUC has two operating segments: APCo which owns or has interests in renewable energy  facilities and thermal energy facilities and Liberty Utilities which owns and operates utilities in the  United States of America providing water, wastewater and local electric and natural gas  distribution services. Within APCo there are three divisions: Renewable Energy, Thermal Energy and Development. The  Renewable Energy division operates the Company’s hydro-electric and wind power facilities. The  Thermal Energy division operates co-generation, energy from waste, steam production and other  thermal facilities. The Development division develops the Company’s greenfield power generation  projects as well as any expansion of the Company’s existing portfolio of renewable energy and  thermal energy facilities$_{.}$ Effective July 2012, the Company changed its operational segments within Liberty Utilities to be  aggregated and reported by the following geographic territories: Liberty Utilities (West), Liberty  Utilities (Central) and Liberty Utilities (East). Liberty Utilities (West) is comprised of Calpeco and  the water distribution and wastewater utilities located in Arizona. Liberty Utilities (Central) is  comprised of the Midwest Gas Utilities and the water distribution and wastewater utilities located  in Texas, Missouri and Illinois. Liberty Utilities (East) is comprised of the New Hampshire electric  and gas utilities. The Company has restated the comparative items of segmented financial  information to reflect the aggregation of segmented financial information adopted in the current  year. APUC’s reportable segments are APCo - Renewable Energy, APCo - Thermal Energy, Liberty  Utilities (West), Liberty Utilities (Central) and Liberty Utilities (East). The development activities of  APCo are reported under Renewable Energy or Thermal Energy as appropriate. For purposes of  evaluating divisional performance, the Company allocates the realized portion of the loss on financial  instruments to specific divisions. This allocation is determined when the initial foreign exchange  forward contract is entered into. The unrealized portion of any gains or losses on derivatives  instruments is not considered in management’s evaluation of divisional performance and is therefore  allocated and reported in the corporate segment. The interest rate swaps relate to specific debt  facilities and gains and losses are allocated in the same manner as interest expense. Amounts  relating to the convertible debentures are reported in the corporate segment. Operational segments  The results of operations and assets for these segments are as follows:  2012 Annual Report 127