For the Years Ended December 31,  (Millions of Dollars) 2003 2002 2001 Operating Activities Income before preferred stock dividends $ 536 ) $ 680) $ 696) Principal Non-Cash Charges (Credits) to Income Depreciation and amortization 529 ) 495) 526) Deferred income taxes 418 ) 315) 6) Common equity component of allowance for funds used during construction (15) (10) (1) Prepaid pension costs (net of capitalized amounts) (179) (262) (259) Other non-cash charges (10) 141) 60) Impairment charge 159 ) -) -) Changes in Assets and Liabilities Accounts receivable - customers, less allowance for uncollectibles (107) (96) 297) Materials and supplies, including fuel and gas in storage (87) 25) (20) Prepayments, other receivables and other current assets (32) (88) 119) Recoverable energy costs 46 ) (101) 130) Accounts payable (20) 243) (354) Pensions and retiree benefits (1) 19) 7) Accrued taxes (32) (45) 81) Accrued interest 8 ) 13) (5) Deferred charges and regulatory assets (24) (164) (46) Deferred credits and regulatory liabilities (30) 167) 19) Transmission congestion contracts 159 ) 120) 5) Other assets (71) 34) 176) Other liabilities 72 ) 36) 150) Net Cash Flows From Operating Activities 1,319 1,522) 1,587) Investing Activities Utility construction expenditures (excluding capitalized support costs of $54, $64, and $61 in 2003, 2002 and 2001, respectively) (1,292) (1,204) (1,104) Cost of removal less salvage (128) (124) (101) Non-utility construction expenditures (105) (282) (154) Regulated companies' non-utility construction expenditures (1) (13) -) Common equity component of allowance for funds used during construction  15 ) 10) 1) Nuclear fuel expenditures -) -) (6) Contributions to nuclear decommissioning trust -) -) (89) Divestiture of utility plants (net of federal income tax) -) -) 671) Investments by unregulated subsidiaries (12) (19) (157) Demolition and remediation costs for First Avenue properties (4) (2) (2) Net Cash Flows Used in Investing Activities (1,527) (1,634) (941) Financing Activities Net proceeds from short-term debt (3) (182) 40) Repayment/retirement of long-term debt (856) (311) (310) Additions to long-term debt 778 ) 1,125) 723) Issuance of common stock 431 ) 25) -) Application of funds held for redemption of long-term debt 275 ) (275) (328) Refunding of preferred stock - ) (37) -) Debt and equity issuance costs (27) (17) (23) Common stock dividends (444) (433) (470) Preferred stock dividends (11) (10) (14) Net Cash Flows From/(Used in) Financing Activities 143 ) (115) (382) Cash and Temporary Cash Investments: Net Change For The Period (65) (227) 264) Balance at Beginning of Period 132 ) 359) 95) Balance at End of Period 67 ) 132) 359) Less: Restricted Cash 18 ) 14) 88) Balance: Cash and Temporary Cash Investments $ 49 ) $ 118) $ 271) Supplemental Disclosure of Cash Flow Information Cash paid during the period for: Interest $ 381 ) $ 359) $ 358) Income taxes $ 90 ) $ 226) $ 217) The accompanying notes are an integral part of these financial statements. Con Edison Annual Report 2003 53 Consolidated Statement of Cash Flows  Consolidated Edison, Inc.