Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

>>NOL can be carried back 2 years to recover past taxes paid, and forward 20 years to offset taxable income in future periods. After 20 years, any remaining NOL expire and are no longer available for use. NOL carried forward are recorded on the balance sheet as deferred tax assets ("DTA").<<

Another point about accounting for NOLs. They are only put on the balance sheet if they can be reasonably used to offset future taxes. Accounting rules do not allow them to be considered an asset unless it looks like they will be used. The deferred tax asset amount on the balance sheet will be the value of the Nols as to whole much they are projected to reduce taxes. The full amount of NOLs does not appear on the balance sheet. they may be shown in notes to the balance sheet, but not on the balance sheet itself. if taxes go up, the value of the NOLs goes up. If tax rates go down, the dollar value as a deferred tax asset goes down.