Income Tax (Tables)

12 Months Ended

Dec. 31, 2015

The components of income tax are as follows:



	Con Edison			CECONY
(Millions of Dollars)	2015	2014	2013	2015	2014	2013
State
Current	$38	$59	$151	$48	$66	$111
Deferred	93	61	(70)	82	65	(14)
Federal
Current	(86)	(9)	285	77	158	187
Deferred	569	463	115	372	271	241
Amortization of investment tax credits	(9)	(6)	(5)	(5)	(5)	(5)
Total income tax expense	$605	$568	$476	$574	$555	$520

Schedule of Differences on Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:



	Con Edison		CECONY
(Millions of Dollars)	2015	2014	2015	2014
Deferred tax liabilities:
Property basis differences	$8,614	$7,510	$7,922	$6,938
Regulatory assets:
Unrecognized pension and other postretirement costs	1,562	1,968	1,490	1,872
Future income tax	947	910	899	863
Environmental remediation costs	365	376	322	333
Deferred storm costs	75	129	45	91
Other regulatory assets	367	347	308	300
Equity investments	295	168	—	—
Total deferred tax liabilities	$12,225	$11,408	$10,986	$10,397
Deferred tax assets:
Accrued pension and other postretirement costs	$982	$1,306	$857	$1,155
Regulatory liabilities	836	615	752	574
Superfund and other environmental costs	308	306	268	264
Asset retirement obligations	97	77	94	75
Loss carryforwards	29	21	—	—
Tax credits carryforward	258	—	1	—
Valuation allowance	(15)	(11)	—	—
Other	362	272	292	203
Total deferred tax assets	2,857	2,586	2,264	2,271
Net deferred tax liabilities	$9,368	$8,822	$8,722	$8,126
Unamortized investment tax credits	169	126	33	37
Net deferred tax liabilities and unamortized investment tax credits	$9,537	$8,948	$8,755	$8,163

Schedule of Income Tax Reconciliation

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						CECONY
(% of Pre-tax income)	2015		2014		2013		2015		2014		2013
STATUTORY TAX RATE
Federal	35	%	35	%	35	%	35	%	35	%	35	%
Changes in computed taxes resulting from:
State income tax	5		5		4		5		5		5
Cost of removal	(5	)	(5	)	(5	)	(5	)	(5	)	(5	)
Manufacturing deduction	—		—		(1	)	—		—		—
Other	(1	)	(1	)	(2	)	—		(1	)	(1	)
Effective tax rate	34	%	34	%	31	%	35	%	34	%	34	%

Summary of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows:



	Con Edison			CECONY
(Millions of Dollars)	2015	2014	2013	2015	2014		2013
Balance at January 1,	$34	$9	$86	$2		$—	$74
Additions based on tax positions related to the current year	—	—	5	—	—		—
Additions based on tax positions of prior years	1	27	253	—	2		—
Reductions for tax positions of prior years	—	(2)	(86)	—	—		(74)
Reductions from expiration of statute of limitations	(1)	—	—	—	—		—
Settlements	—	—	(249)	—	—		—
Balance at December 31,	$34	$34	$9	$2	$2			$—