content_image/127607.jpg content_image/127608.jpg
Con Edison’s intangible assets consist of the following: 

<img src='content_image/127607.jpg'>

The power purchase agreement was written up to its fair value of $112 million upon implementation of new FASB guidance on derivatives (Derivatives Implementation Group Issue C20), and is being amortized over its remaining useful life of 11 years. See Note V. 

The amortization expense was $6 million and $4 million for the years ended December 31, 2003 and 2002 respectively, and is expected to be $10 million annually for the years 2004-2008. 

## Note M – Income Tax 

The components of income tax are as follows: 

<img src='content_image/127608.jpg'>

