The tax effect of temporary differences, which gave rise to deferred tax assets and liabilities, is as follows: Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes is as follows: Con Edison Con Edison of New York O&R (% of Pre-tax income) 2003 2002 2001 2003 2002 2001 2003 2002 2001 Statutory Tax Rate Federal 35% 35% 35% 35% 35% 35% 35% 35% 35% Changes in computed taxes resulting from: State income tax 6% 6% 9% 7% 6% 9% 8% 4% 8% Depreciation related differences 7% 5% 3% 6% 5% 4% 3% 1% -% Cost of removal (6).e (5) . (4) (5) (5) (4) (1) (2) (1) Amortization of taxes associated with divested assets - - - - - - - (1) (1) Other (5) (6) (4) (5) (5) (4) (2) (2) (1) Effective Tax Rate 37% 35% 39% 38% 36% 40% 43% 35% 40% Con Edison  Con Edison of New York O&R (Millions of Dollars) 2003 2002 2003 2002 2003 2002 Liabilities: Depreciation $1,599 $1,566 $1,493 $1,457 $ 98 $ 97 Regulatory liability – future income tax 629 614 589 575 40 39 Other 1,044 712 835 559 72 42 To tal Liabilities 3 ,272 2,892 2,917 2,591 210 178 Assets: Other (205) (216) (162) (168) (32) (44) To tal Assets ( 205) (216) (162) (168) (32) (44) Net Liability $3,067 $2,676 $2,755 $2,423 $178 $134 Con Edison Annual Report 2003 79