Replies to post #4004 on Lehman Brothers Financial SA (LEHNQ)

[linda1]

Following is an excerpt about the NOLs from Page 125 of the DS -



The Debtors do not state how the $ 53 B in NOLs are divided among LBHI and Subsidiaries. It is my understanding that since LBHI filed consolidated tax returns for the Subsidiaries then the NOLS will belong to LBHI.


As you will read the Debtors did file for a 5-year carry-back tax credit for 2008 - however as usual they are not clear and do not mention what credit they received or how much NOLS were used.


It could also be interpreted - from the following excerpt - that the Debtors used all of the $ 48 B in NOLS that were available at the end of 2008 for a 5-year carry back tax credit/refund.


Since the $ 53 B in NOLS are as of Dec 31, 2009, I am presuming they include the losses from LBI.




1. Tax Filing Status; Tax Attributes


LBHI, on behalf of itself and the other members of the LBHI Group, including the

domestic Subsidiary Debtors and other LBHI directly and indirectly owned corporations,

including LBI, file a federal income tax return on a consolidated basis. For the tax year ended

December 31, 2008, for federal income tax purposes, the LBHI Group reported a consolidated

NOL of approximately $48 billion. For the tax year ended December 31, 2009, the Debtors’

federal consolidated income tax return reflected an additional NOL of approximately $5 billion.

Under recent legislation, LBHI elected to carry back its 2008 NOL for five tax years. The loss

carried back to 2003, the fifth previous tax year, is limited to 50% of the taxable income reported

for that year. For the tax year that ended December 31, 2010, the Debtors believe the LBHI

Group will also report an additional NOL.