(3) Business Combinations (Puget Energy Only) On February 6, 2009, Puget Holdings completed its merger with Puget Energy. As a result of the merger, Puget Energy is the direct wholly-owned subsidiary of Puget Equico, which is an indirect wholly-owned subsidiary of Puget Holdings. After the merger, Puget Energy has 1,000 shares authorized, of which 200 shares have been issued at a par value of $0.01 per share. At the time of the merger, each issued and outstanding share of common stock of Puget Energy was cancelled and converted automatically into the right to receive $30.00 in cash, without interest. The fair value of consideration transferred was $3.9 billion, including funding by Puget Holdings of $3.0 billion, debt of $0.6 billion issued by Puget Energy and $0.3 billion that was the result of the stepped-up basis of the investors' previously owned shares. The table below is the statement of fair value of assets acquired and accrued liabilities assumed as of February 6, 2009 measured in accordance with ASC 805. There were no adjustments subsequent to the merger transaction date. (Dollars in Thousands) Amount Net utility plant $ 6,346,032 Other property and investments 151,913 Goodwill 1,656,513 Current assets 1,259,505 Long-term and regulatory assets 2,497,355 Long-term debt 2,490,544 Current liabilities 2,173,079 Long-term liabilities 3,358,000 The following tables present the fair value adjustments to Puget Energy's balance sheet and recognition of goodwill in accordance with ASC 805: ASSETS (Dollars in Thousands) February 6, 2009 Increase (Decrease) Utility plant: Electric plant $ (2,367,756 ) Gas plant (666,278 ) Common plant (302,015 ) Less: Accumulated depreciation and amortization 3,381,095 Net utility plant 45,046 Other property and investments: Goodwill 1,656,513 Non-utility property 4,250 Total other property and investments 1,660,763 Current assets: Materials and supplies 13,700 Fuel and gas inventory (27,561 ) Unrealized gain on derivative instruments 3,765 Power contract acquisition adjustment gain