content_image/139434.jpg
## 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) 

## 5. Property, plant and equipment (continued) 

In 2012, APCo wrote down its investment in a small hydro facility and recognized an impairment charge on property, plant and equipment of $253 (2011 - $1,370) representing the difference between the carrying value of the assets and their estimated fair value. The fair value of the facilities was estimated based on prior transactions involving sales of comparable facilities and management’s best estimates. 

In December 2011, Liberty Utilities wrote down $1,058 from facilities` assets based on regulatory decisions in 2011 that these costs are not capitalizable for rate-base purposes. 

## 6. Intangible assets 

Intangible assets consist of the following: 

<img src='content_image/139434.jpg'>

The Region of Peel elected not to extend the existing waste processing contract with the Company. As a result, the remaining intangible assets associated with the existing waste management and energy contracts of the facility were written off in 2011 and the Company recognized a charge on intangible assets of $13,430. 

Estimated amortization expense for intangibles for the next four years is $4,200 each year and $2,450 in year five. 

