Lehman Preferred Series "J" Preferred (fka LEHJQ)

[DJN]

NOL from the MOR:

Taxes

Due to the uncertainties of future taxable profits, the deferred tax assets recorded by LBHI and its subsidiaries prior to the bankruptcy
filings have been reversed through valuation allowances. Deferred tax assets have not been recorded for the post-petition portion of
2008 or for 2009. Provisions for 2009 federal taxes are reported at $0. Payables accounts contain amounts for state and local income
taxes, some of which are reported on a combined basis, including LBHI and certain subsidiaries, and some of which are imposed on a
separate company basis. There exists a recorded federal income tax refund claim of approximately $350 million, included in
receivables and other assets, related to the estimated anticipated carry-back of net operating losses. The Company recently filed its
2008 consolidated Federal tax return with a net operating loss of approximately $47 billion and is currently evaluating the potential
impact of the five-year net operating loss carry-back provision recently enacted into federal law