LEHMAN BROTHERS HOLDINGS INC. EXHIBIT 99.7
TOTAL LEVERAGE and NET LEVERAGE CALCULATION
(Preliminary and Unaudited)
(In millions)
Nov 30 Aug 31 May 31 Feb 28 Nov 30
2003 2003 2003 2003 2002
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Net assets:
Total assets $314,000 $291,638 $302,410 $268,293 $260,336
Less:
Secured financing arrangements
(reverse repo and securities borrowed) 139,000 127,462 136,526 117,122 114,838
Collateral received recognized in
inventory pursuant to SFAS 140 3,400 2,472 1,550 1,507 1,994
Goodwill and other identifiable
intangible assets 3,400 246 235 236 213
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Net assets $168,200 $161,458 $164,099 $149,428 $143,291
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Tangible equity capital:
Total stockholders' equity $13,174 $10,276 $9,635 $9,157 $8,942
Trust preferred securities (subject to
limitation) (a) 1,100 1,010 1,010 710 710
Less: Goodwill and other identifiable
intangible assets (3,400) (246) (235) (236) (213)
------------ ----------- ------------- ------------ ------------
Tangible equity capital $10,874 $11,040 $10,410 $9,631 $9,439
============ =========== ============= ============ ============
Total leverage (total assets/ total
stockholders' equity) 23.8x 28.4x 31.4x 29.3x 29.1x
Net leverage (net assets/ tangible
equity capital) 15.5x 14.6x 15.8x 15.5x 15.2x
(a) Under the definition of tangible equity capital used by a leading rating
agency maximum equity credit given to trust preferred is: 10% of tangible equity
capital (trust preferred is included in calculation to determine limits).