In determining whether or not its goodwill is impaired,  Con Edison is required to make certain estimates and assump- tions that could affect the results of the goodwill impairment test. Actual results could differ from the estimates used. Changes in the Companies’ cash and temporary cash invest- ments resulting from operating, investing and financing activi- ties for the years ended December 31, 2003, 2002 and 2001 are summarized as follows: The Companies apply SFAS No. 13, “Accounting for Leases” and other related accounting pronouncements to their leasing transactions. See Notes K and T to the financial statements. The Companies’ liquidity reflects cash flows from operating, investing and financing activities, as shown on their respective consolidated statement of cash flows and as discussed below.  The principal factors affecting Con Edison’s liquidity at the hold- ing company level are its investments in the Utilities, the divi- dends it pays to its shareholders and the dividends it receives from the Utilities. In addition, in 2003 Con Edison issued 11.9 million shares of common stock for $431 million ($381 million of which it invested in Con Edison of New York) and $200 mil- lion of five-year debt. In 2002, the company issued $325 million of 40-year debt (most of which it invested in its unregulated subsidiaries). The principal factors affecting the Utilities’ liquidity are the cash flow generated from operations, construction expenditures and maturities of their debt securities. In addition, Con Edison of New York in 2003 received a $381 million capital contribution from Con Edison; in 2002 and 2001 issued $225 million and $95 million, respectively, of additional debt net of redemptions; and in 2001 received net proceeds of $597 million from the sale of generating assets, net of a contribution to its nuclear decommissioning trust (see Note J to the financial statements). Also, since 2001, Con Edison of New York has incurred sub- stantial, primarily capital, costs in connection with the attack on the World Trade Center and the subsequent restoration of lower Manhattan and to date has received reimbursement of such costs of $29 million from the federal government (see Note R to the financial statements). In 2003, O&R redeemed $35 million of debt at maturity with commercial paper.  The Companies each believes that it will be able to meet its reasonably likely short-term and long-term cash requirements, assuming that the Utilities’ rate plans reflect their costs of serv- ice, including a return on invested capital. See “Regulatory Matters,” below and “Application of Critical Accounting Policies - Accounting for Contingencies,” above.  The Utilities’ cash flows from operating activities reflect princi- pally their energy sales and deliveries and cost of operations. The volume of energy sales and deliveries is dependent prima- rily on factors external to the Utilities, such as weather and economic conditions. The prices at which the Utilities provide  26 Con Edison Annual Report 2003 Cash Flows from Operating Activities Liquidity and Capital Resources Accounting for Leases Con Edison Con Edison of New York O&R Variance Variance  2003 2002 (Millions of Dollars) 2003 2002 vs. 2002 2001 vs. 2001 Operating activities $128 $104 $24 $107 $(3) Investing activities (71) (60) (11) (61) 1 Financing activities (49) (44) (5) (52) 8 Net change for the period 8 - 8 (6) 6 Balance at beginning of period 2 2 - 8 (6) Balance at end of period  (including restricted cash) $ 10 $ 2 $ 8 $ 2 $ - Variance Variance  2003 2002 (Millions of Dollars) 2003 2002 vs. 2002 2001 vs. 2001 Operating activities $1,169 $1,310 $(141) $1,306 $  4 Investing activities (1,337) (1,273) (64) (569) (704) Financing activities 113 (214) 327 (542) 328 Net change for  the period (55) (177) 122 195 (372) Balance at beginning  of period 88 265 (177) 70 195 Balance at end of period  (including restricted cash) $ 33 $ 88 $ (55) $ 265 $(177) Variance Variance  2003 2002 (Millions of Dollars) 2003 2002 vs. 2002 2001 vs. 2001 Operating activities $1,319 $1,522 $(203) $1,587 $ (65) Investing activities (1,527) (1,634) 107 (941) (693) Financing activities 143 (115) 258 (382) 267 Net change for  the period (65) (227) 162 264 (491) Balance at beginning of period 132 359 (227) 95 264 Balance at end  of period (including  restricted cash) $ 67 $ 132 $ (65) $ 359 $(227)