<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES AND EXCHANGE COMMISSION
For the fiscal year ended December 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______.
--------------------------
Commission file number 1-7657
--------------------------
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
LEHMAN BROTHERS HOLDINGS INC.
TAX DEFERRED SAVINGS PLAN
Lehman Brothers Holdings Inc.
3 World Financial Center
New York, NY 10285
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Lehman Brothers Holdings Inc.
3 World Financial Center
New York, NY 10285
<PAGE>
Financial Statements
and Supplemental Information
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
YEARS ENDED DECEMBER 30, 1999 AND 1998
WITH REPORT OF INDEPENDENT AUDITORS
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Financial Statements
and Supplemental Information
Years ended December 30, 1999 and 1998
CONTENTS
Report of Independent Auditors....................................... 1
Financial Statements
Statements of Net Assets Available for Plan Benefits,
with Fund Information.............................................. 2
Statements of Changes in Net Assets Available for Plan Benefits,
with Fund Information.............................................. 4
Notes to Financial Statements........................................ 6
Supplemental Information
Schedule I--Schedule of Investments Held.............................. 16
Schedule II--Schedule of Transactions in Excess of
5% of Net Assets Available for Plan Benefits at Beginning of Year.. 17
<PAGE>
Report of Independent Auditors
The Employee Benefit Plans Committee
Lehman Brothers Holdings Inc.
We have audited the accompanying statements of net assets available for plan
benefits of the Lehman Brothers Holdings Inc. Tax Deferred Savings Plan (the
"Plan") as of December 30, 1999 and 1998, and the related statements of changes
in net assets available for plan benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan at
December 30, 1999 and 1998, and the changes in its net assets available for plan
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of investments held as of December 30, 1999, and reportable transactions in
excess of five percent of net assets available for plan benefits for the year
then ended, are presented for purposes of additional analysis and are not a
required part of the financial statements but are supplementary information
required by the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. These
supplemental schedules are the responsibility of the Plan's management. The
supplemental schedules have been subjected to the auditing procedures applied in
our audits of the financial statements and, in our opinion, are fairly stated in
all material respects in relation to the financial statements taken as a whole.
June 20, 2000
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Statement of Net Assets Available for Plan Benefits,
With Fund Information
December 30, 1999
<TABLE>
<CAPTION>
INVESTMENT FUNDS
-----------------------------------------------------------------------------------------
AMERICAN LEHMAN
EXPRESS BROTHERS AMERICAN
SHORT COMPANY HOLDINGS CENTURY PRIME
TERM FIXED COMMON INC. COMMON ULTRA VALUE TEMPLETON
INTEREST INCOME STOCK STOCK INVESTORS OBLIGATIONS FOREIGN
FUND FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Institutional Contracts (at cost
plus interest) $85,479,027
Investments at fair value:
American Express Company
Common Stock 379,391 shares
(cost: $10,473,167) $62,884,140
Lehman Brothers Holdings Inc.
Common Stock 723,402 shares
(cost: $22,135,709) $61,402,505
American Century Ultra
Investors Fund 2,518,910 $114,308,128
shares (cost: $68,137,838)
Prime Value Obligations Fund
15,026,246 shares (cost: $15,026,246
$15,026,246)
Templeton Foreign Fund
3,834,248 shares (cost: $42,905,230
$36,387,048)
Income Fund of America
1,318,711 shares (cost:
$20,729,446)
Fidelity Capital & Income Fund
2,400,827 shares (cost:
$22,915,798)
Vanguard Index Trust 500
Portfolio
641,283 shares (cost:
$77,089,407)
PIMCO Total Return Fund
1,223,046 shares (cost:
$12,629,905)
Brandywine Blue Fund
204,127 shares (cost:
$5,664,640)
ICM Small Company Portfolio
105,537 shares (cost:
$2,555,269)
Vanguard Fixed Income
Long-Term
Corporate Portfolio
1,244,394 shares
(cost: $11,835,476)
10 Uncommon Value Fund
4,105,603 shares (cost:
$39,886,634)
-----------------------------------------------------------------------------------------
$ - 85,479,027 62,884,140 61,402,505 114,308,128 15,026,246 42,905,230
Cash and short-term investments 384,864 16,708,757 50 617 665 96 282
Interest and dividends receivable 2,351 38,327 - 179 - 68,390 -
Other receivables 10,089 21,568 40,151 2,026,133 3,484 - -
Participant loans
Net Inter-fund transfers 7,659 (274,022) (85,362) (581,262) 203,345 271,496 277,330
(payable) receivable
-----------------------------------------------------------------------------------------
Total assets 404,963 101,973,657 62,838,979 62,848,172 114,515,622 15,366,228 43,182,842
LIABILITIES
Accrued liabilities 2,550 33,516 11,622 11,188 14,284 4,336 9,365
Other liabilities - - - - - 94,994 515
-----------------------------------------------------------------------------------------
Total liabilities 2,550 33,516 11,622 11,188 14,284 99,330 9,880
-----------------------------------------------------------------------------------------
Net assets available for plan $402,413 $101,940,141 $62,827,357 $62,836,984 $114,501,338 $15,266,898 $43,172,962
benefits
=========================================================================================
<CAPTION>
-----------------------------------------------------------------------------------------------
VANGUARD
FIDELITY VANGUARD PIMCO ICM FIXED
INCOME CAPITAL & INDEX TOTAL BRANDYWINE SMALL INCOME
FUND OF INCOME TRUST 500 RETURN BLUE COMPANY LOAN LONG TERM
AMERICA FUND PORTFOLIO FUND FUND PORTFOLIO ACCOUNT CORPORATE
PORTFOLIO
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Institutional Contracts (at cost
plus interest)
Investments at fair value:
American Express Company
Common Stock 379,391 shares
(cost: $10,473,167)
Lehman Brothers Holdings Inc.
Common Stock 723,402 shares
(cost: $22,135,709)
American Century Ultra
Investors Fund 2,518,910
shares (cost: $68,137,838)
Prime Value Obligations Fund
15,026,246 shares (cost:
$15,026,246)
Templeton Foreign Fund
3,834,248 shares (cost:
$36,387,048)
Income Fund of America
1,318,711 shares (cost: $20,703,763
$20,729,446)
Fidelity Capital & Income Fund
2,400,827 shares (cost: $22,231,659
$22,915,798)
Vanguard Index Trust 500
Portfolio $85,662,574
641,283 shares (cost:
$77,089,407)
PIMCO Total Return Fund
1,223,046 shares (cost: $12,144,844
$12,629,905)
Brandywine Blue Fund
204,127 shares (cost: $7,317,965
$5,664,640)
ICM Small Company Portfolio
105,537 shares (cost: $2,159,290
$2,555,269)
Vanguard Fixed Income
Long-Term
Corporate Portfolio $10,943,379
1,244,394 shares
(cost: $11,835,476)
10 Uncommon Value Fund
4,105,603 shares (cost:
$39,886,634)
-----------------------------------------------------------------------------------------------
20,703,763 22,231,659 85,662,574 12,144,844 7,317,965 2,159,290 $ - 10,943,379
Cash and short-term investments 51 44 140 12 476 450 407 16
Interest and dividends receivable - 144,130 48 68,304 16 - 66 62,061
Other receivables 199 - 31,040 - 2,957 1,137 - -
Participant loans 5,084,521 -
Net Inter-fund transfers (493,083) (158,079) 286,319 15,813 368,023 154,291 - 129,437
(payable) receivable
-----------------------------------------------------------------------------------------------
Total assets 20,210,930 22,217,754 85,980,121 12,228,973 7,689,437 2,315,168 5,084,994 11,134,893
LIABILITIES
Accrued liabilities 5,371 5,323 12,766 2,917 1,016 212 - 2,581
Other liabilities - 2,186 - 4,494 - - 2,157 1,837
-----------------------------------------------------------------------------------------------
Total liabilities 5,371 7,509 12,766 7,411 1,016 212 2,157 4,418
-----------------------------------------------------------------------------------------------
Net assets available for plan $20,205,559 $22,210,245 $85,967,355 $12,221,562 $7,688,421 $2,314,956 $5,082,837 $11,130,475
benefits
===============================================================================================
<CAPTION>
------------------------------
10
UNCOMMON
VALUE
FUND TOTAL
------------------------------
<S> <C> <C>
ASSETS
Institutional Contracts (at cost
plus interest) $85,479,027
Investments at fair value:
American Express Company
Common Stock 379,391 shares 62,884,140
(cost: $10,473,167)
Lehman Brothers Holdings Inc.
Common Stock 723,402 shares 61,402,505
(cost: $22,135,709)
American Century Ultra
Investors Fund 2,518,910 114,308,128
shares (cost: $68,137,838)
Prime Value Obligations Fund
15,026,246 shares (cost: 15,026,246
$15,026,246)
Templeton Foreign Fund
3,834,248 shares (cost: 42,905,230
$36,387,048)
Income Fund of America
1,318,711 shares (cost: 20,703,763
$20,729,446)
Fidelity Capital & Income Fund
2,400,827 shares (cost: 22,231,659
$22,915,798)
Vanguard Index Trust 500
Portfolio 85,662,574
641,283 shares (cost:
$77,089,407)
PIMCO Total Return Fund
1,223,046 shares (cost: 12,144,844
$12,629,905)
Brandywine Blue Fund
204,127 shares (cost: 7,317,965
$5,664,640)
ICM Small Company Portfolio
105,537 shares (cost: 2,159,290
$2,555,269)
Vanguard Fixed Income
Long-Term
Corporate Portfolio 10,943,379
1,244,394 shares
(cost: $11,835,476)
10 Uncommon Value Fund
4,105,603 shares (cost: $47,434,807 47,434,807
$39,886,634)
------------------------------
47,434,807 590,603,557
Cash and short-term investments (3,973) 17,092,954
Interest and dividends receivable - 383,872
Other receivables 358 2,137,116
Participant loans - 5,084,521
Net Inter-fund transfers (121,905) -
(payable) receivable
------------------------------
Total assets 47,309,287 615,302,020
LIABILITIES
Accrued liabilities 5,999 123,046
Other liabilities - 106,183
------------------------------
Total liabilities 5,999 229,229
------------------------------
Net assets available for plan $47,303,288 $615,072,791
benefits
==============================
</TABLE>
SEE ACCOMPANYING NOTES.
2
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Statement of Net Assets Available for Plan Benefits,
With Fund Information
December 30, 1998
Investment Funds
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
AMERICAN LEHMAN BROTHERS AMERICAN
SHORT EXPRESS COMPANY HOLDINGS INC. CENTURY
TERM FIXED COMMON COMMON ULTRA
INTEREST INCOME STOCK STOCK INVESTORS
FUND FUND FUND FUND FUND
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Institutional Contracts (at cost plus interest) $107,798,944
Investments at fair value:
American Express Company Common Stock Fund 419,796
shares (cost: $11,517,390) $43,999,868
Lehman Brothers Holdings Inc. Common Stock Fund
762,688 shares (cost: $20,393,942) $33,033,924
American Century Ultra Investors Fund
2,524,064 shares (cost: $64,399,562) $83,925,129
Prime Value Obligations Fund
16,771,235 shares (cost: $16,771,235)
Templeton Foreign Fund
4,039,463 shares (cost: $38,504,473)
Income Fund of America
1,488,947 shares (cost: $23,178,143)
Fidelity Capital & Income Fund
2,360,964 shares (cost: $22,475,386)
Vanguard Index Trust 500 Portfolio
613,345 shares (cost: $42,522,721)
PIMCO Total Return Fund
1,152,063 shares (cost: $11,921,823)
Brandywine Blue Fund
225,804 shares (cost: $6,101,144)
ICM Small Company Portfolio
59,669 shares (cost: $1,552,157)
Vanguard Fixed Income Long-Term
Corporate Portfolio
1,244,394 shares (cost: $10,981,727)
--------------------------------------------------------------------------------
- 107,798,944 43,999,868 33,033,924 83,925,129
Cash and short-term investments $ 354,122 3,393,619 57 1,882,099 -
Interest and dividends receivable 1,911 7,766 52 398 -
Participant loans - - - - -
Other receivables 10,084 6,457 42,788 100,827 4,243
Net Inter-fund transfers (payable) receivable 7,813 (620,670) (50,077) (17,084) (63,176)
--------------------------------------------------------------------------------
Total assets 373,930 110,586,116 43,992,688 35,000,164 83,866,196
LIABILITIES
Accrued liabilities 1,050 55,287 15,216 13,184 28,378
Other liabilities - - - - -
--------------------------------------------------------------------------------
Total liabilities 1,050 55,287 15,216 13,184 28,378
--------------------------------------------------------------------------------
Net assets available for plan benefits $ 372,880 $110,530,829 $43,977,472 $34,986,980 $83,837,818
================================================================================
<CAPTION>
-----------------------------------------------------------------------
PRIME FIDELITY
VALUE TEMPLETON CAPITAL &
OBLIGATIONS FOREIGN INCOME INCOME
FUND FUND FUND OF AMERICA FUND
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Institutional Contracts (at cost plus interest)
Investments at fair value:
American Express Company Common Stock Fund 419,796
shares (cost: $11,517,390)
Lehman Brothers Holdings Inc. Common Stock Fund
762,688 shares (cost: $20,393,942)
American Century Ultra Investors Fund
2,524,064 shares (cost: $64,399,562)
Prime Value Obligations Fund
16,771,235 shares (cost: $16,771,235) $16,771,235
Templeton Foreign Fund
4,039,463 shares (cost: $38,504,473) $33,850,697
Income Fund of America
1,488,947 shares (cost: $23,178,143) $25,758,789
Fidelity Capital & Income Fund
2,360,964 shares (cost: $22,475,386) $22,216,669
Vanguard Index Trust 500 Portfolio
613,345 shares (cost: $42,522,721)
PIMCO Total Return Fund
1,152,063 shares (cost: $11,921,823)
Brandywine Blue Fund
225,804 shares (cost: $6,101,144)
ICM Small Company Portfolio
59,669 shares (cost: $1,552,157)
Vanguard Fixed Income Long-Term
Corporate Portfolio
1,244,394 shares (cost: $10,981,727)
-----------------------------------------------------------------------
16,771,235 33,850,697 25,758,789 22,216,669
Cash and short-term investments - (13,987) 4,030 -
Interest and dividends receivable 70,775 - - -
Participant loans - - - -
Other receivables - 13,959 1,240 4,896
Net Inter-fund transfers (payable) receivable 234,472 6,296 (11,016) (40,577)
-----------------------------------------------------------------------
Total assets 17,076,482 33,856,965 25,753,043 22,180,988
LIABILITIES
Accrued liabilities 7,799 15,337 13,960 9,051
Other liabilities 101,687 - - 4,889
-----------------------------------------------------------------------
Total liabilities 109,486 15,337 13,960 13,940
-----------------------------------------------------------------------
Net assets available for plan benefits $16,966,996 $33,841,628 $25,739,083 $22,167,048
=======================================================================
<CAPTION>
-------------------------------------------------------------------
VANGUARD PIMCO ICM
INDEX TOTAL BRANDYWINE SMALL
TRUST 500 RETURN BLUE COMPANY
PORTFOLIO FUND FUND PORTFOLIO
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Institutional Contracts (at cost plus interest)
Investments at fair value:
American Express Company Common Stock Fund 419,796
shares (cost: $11,517,390)
Lehman Brothers Holdings Inc. Common Stock Fund
762,688 shares (cost: $20,393,942)
American Century Ultra Investors Fund
2,524,064 shares (cost: $64,399,562)
Prime Value Obligations Fund
16,771,235 shares (cost: $16,771,235)
Templeton Foreign Fund
4,039,463 shares (cost: $38,504,473)
Income Fund of America
1,488,947 shares (cost: $23,178,143)
Fidelity Capital & Income Fund
2,360,964 shares (cost: $22,475,386)
Vanguard Index Trust 500 Portfolio
613,345 shares (cost: $42,522,721) $70,031,696
PIMCO Total Return Fund
1,152,063 shares (cost: $11,921,823) $12,142,743
Brandywine Blue Fund
225,804 shares (cost: $6,101,144) $5,755,751
ICM Small Company Portfolio
59,669 shares (cost: $1,552,157) $1,420,115
Vanguard Fixed Income Long-Term
Corporate Portfolio
1,244,394 shares (cost: $10,981,727)
-------------------------------------------------------------------
70,031,696 12,142,743 5,755,751 1,420,115
Cash and short-term investments 15,248 414 - -
Interest and dividends receivable - - 4 -
Participant loans - - - -
Other receivables 35,033 - - -
Net Inter-fund transfers (payable) receivable 315,186 30,684 (13,385) 209,665
-------------------------------------------------------------------
Total assets 70,397,163 12,173,841 5,742,370 1,629,780
LIABILITIES
Accrued liabilities 34,756 5,326 1,105 151
Other liabilities - 256 995 966
-------------------------------------------------------------------
Total liabilities 34,756 5,582 2,100 1,117
-------------------------------------------------------------------
Net assets available for plan benefits $70,362,407 $12,168,259 $5,740,270 $1,628,663
===================================================================
<CAPTION>
-------------------------------------------------------
VANGUARD FIXED
INCOME LONG TERM
LOAN CORPORATE
ACCOUNT PORTFOLIO TOTAL
-------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Institutional Contracts (at cost plus interest) $107,798,944
Investments at fair value:
American Express Company Common Stock Fund 419,796
shares (cost: $11,517,390) 43,999,868
Lehman Brothers Holdings Inc. Common Stock Fund
762,688 shares (cost: $20,393,942) 33,033,924
American Century Ultra Investors Fund
2,524,064 shares (cost: $64,399,562) 83,925,129
Prime Value Obligations Fund
16,771,235 shares (cost: $16,771,235) 16,771,235
Templeton Foreign Fund
4,039,463 shares (cost: $38,504,473) 33,850,697
Income Fund of America
1,488,947 shares (cost: $23,178,143) 25,758,789
Fidelity Capital & Income Fund
2,360,964 shares (cost: $22,475,386) 22,216,669
Vanguard Index Trust 500 Portfolio
613,345 shares (cost: $42,522,721) 70,031,696
PIMCO Total Return Fund
1,152,063 shares (cost: $11,921,823) 12,142,743
Brandywine Blue Fund
225,804 shares (cost: $6,101,144) 5,755,751
ICM Small Company Portfolio
59,669 shares (cost: $1,552,157) 1,420,115
Vanguard Fixed Income Long-Term
Corporate Portfolio
1,244,394 shares (cost: $10,981,727) $11,722,187 11,722,187
-------------------------------------------------------
- 11,722,187 468,427,747
Cash and short-term investments - - 5,635,602
Interest and dividends receivable - - 80,906
Participant loans 3,976,563 - 3,976,563
Other receivables - 1,798 221,325
Net Inter-fund transfers (payable) receivable - 11,869 -
-------------------------------------------------------
Total assets 3,976,563 11,735,854 478,342,143
LIABILITIES
Accrued liabilities - 4,469 205,069
Other liabilities - - 108,793
-------------------------------------------------------
Total liabilities - 4,469 313,862
-------------------------------------------------------
Net assets available for plan benefits $3,976,563 $11,731,385 $478,028,281
=======================================================
</TABLE>
SEE ACCOMPANYING NOTES.
3
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits,
With Fund Information
Year ended December 30, 1999
Investment Funds
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
AMERICAN LEHMAN
EXPRESS BROTHERS AMERICAN
SHORT COMPANY HOLDINGS CENTURY PRIME
TERM FIXED COMMON INC. COMMON ULTRA VALUE TEMPLETON
INTEREST INCOME STOCK STOCK INVESTORS OBLIGATIONS FOREIGN
FUND FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 29,483 $7,135,088 $ 361,129 $ 285,347 $ 127 $ 826,296 $1,168,780
Net realized and unrealized
appreciation/(depreciation)
in fair value of investments - 68 22,398,899 30,092,679 33,700,496 - 11,872,485
-----------------------------------------------------------------------------------------------
29,483 7,135,156 22,760,028 30,378,026 33,700,623 826,296 13,041,265
Contributions:
Employer - - - 2,045,136 - - -
Participants - 2,632,205 - 3,503,589 6,933,252 1,083,198 3,371,556
Rollovers - 134,618 87,691 264,463 824,319 69,537 231,836
-----------------------------------------------------------------------------------------------
- 2,766,823 87,691 5,813,188 7,757,571 1,152,735 3,603,392
Net inter-fund transfers (out) in - (8,716,108) (2,171,788) (5,973,199) (3,068,942) (2,091,355) (3,719,189)
Administrative fees 50 (48,489) (18,036) (22,666) (24,303) (3,441) (9,966)
Participant withdrawals - (9,728,070) (1,808,010) (2,345,345) (7,701,429) (1,584,333) (3,584,168)
-----------------------------------------------------------------------------------------------
50 (18,492,667) (3,997,834) (8,341,210) (10,794,674) (3,679,129) (7,313,323)
-----------------------------------------------------------------------------------------------
Net increase (decrease) 29,533 (8,590,688) 18,849,885 27,850,004 30,663,520 (1,700,098) 9,331,334
Net assets available for plan
benefits, beginning of year 372,880 110,530,829 43,977,472 34,986,980 83,837,818 16,966,996 33,841,628
===============================================================================================
Net assets available for plan
benefits, end of year $402,413 $101,940,141 $62,827,357 $62,836,984 $114,501,338 $15,266,898 $43,172,962
===============================================================================================
<CAPTION>
--------------------------------------------------------------------------------------
FIDELITY VANGUARD PIMCO ICM
INCOME CAPITAL & INDEX TOTAL BRANDYWINE SMALL
FUND OF INCOME TRUST 500 RETURN BLUE COMPANY
AMERICA FUND PORTFOLIO FUND FUND PORTFOLIO
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $1,193,745 $2,418,513 $ 924,551 $ 810,943 $ 59 $ 24,904
Net realized and unrealized
appreciation/(depreciation)
in fair value of investments (865,543) 625,515 14,029,190 (754,280) 2,465,556 9,767
--------------------------------------------------------------------------------------
328,202 3,044,028 14,953,741 56,663 2,465,615 34,671
Contributions:
Employer - - - - - -
Participants 1,569,605 2,296,014 9,235,609 932,072 1,122,659 513,133
Rollovers 127,467 355,640 3,151,953 82,658 78,487 207,874
--------------------------------------------------------------------------------------
1,697,072 2,651,654 12,387,562 1,014,730 1,201,146 721,007
Net inter-fund transfers (out) in (5,374,824) (4,037,571) (3,770,960) (243,701) (1,062,582) 89,160
Administrative fees (5,497) (6,561) (25,624) (3,292) (2,449) (898)
Participant withdrawals (2,178,477) (1,608,353) (7,939,771) (771,097) (653,579) (157,647)
--------------------------------------------------------------------------------------
(7,558,798) (5,652,485) (11,736,355) (1,018,090) (1,718,610) (69,385)
--------------------------------------------------------------------------------------
Net increase (decrease) (5,533,524) 43,197 15,604,948 53,303 1,948,151 686,293
Net assets available for plan
benefits, beginning of year 25,739,083 22,167,048 70,362,407 12,168,259 5,740,270 1,628,663
======================================================================================
Net assets available for plan
benefits, end of year $20,205,559 $22,210,245 $85,967,355 $12,221,562 $7,688,421 $2,314,956
======================================================================================
<CAPTION>
-----------------------------------------------------
VANGUARD
FIXED INCOME 10
LONG TERM UNCOMMON
LOAN CORPORATE VALUE
ACCOUNT PORTFOLIO FUND TOTAL
--------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 384,804 $ 818,392 $ 2,429 $ 16,384,590
Net realized and unrealized
appreciation/(depreciation)
in fair value of investments - (1,497,102) 7,562,374 119,640,104
--------------------------------------------------------
384,804 (678,710) 7,564,803 136,024,694
Contributions:
Employer - - - 2,045,136
Participants - 1,022,753 - 34,215,645
Rollovers - 111,677 - 5,728,220
--------------------------------------------------------
- 1,134,430 - 41,989,001
Net inter-fund transfers (out) in 840,328 (503,409) 39,804,140 -
Administrative fees - (3,088) (9,193) (183,453)
Participant withdrawals (118,858) (550,133) (56,462) (40,785,732)
--------------------------------------------------------
721,470 (1,056,630) 39,738,485 (40,969,185)
--------------------------------------------------------
Net increase (decrease) 1,106,274 (600,910) 47,303,288 137,044,510
Net assets available for plan
benefits, beginning of year 3,976,563 11,731,385 - 478,028,281
========================================================
Net assets available for plan
benefits, end of year $5,082,837 $11,130,475 $47,303,288 $615,072,791
========================================================
</TABLE>
SEE ACCOMPANYING NOTES.
4
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits,
With Fund Information
Year ended December 30, 1998
Investment Funds
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS
SHORT AMERICAN EXPRESS HOLDINGS INC. AMERICAN CENTURY
TERM FIXED COMPANY COMMON COMMON ULTRA
INTEREST INCOME STOCK STOCK INVESTORS
FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 29,251 $ 7,590,053 $ 283,510 $ 225,844 $ (39)
Net realized and unrealized
appreciation/(depreciation) in fair
value of investments - - 6,180,264 (4,770,276) 21,856,734
-----------------------------------------------------------------------------------------
29,251 7,590,053 6,463,774 (4,544,432) 21,856,695
Contributions:
Employer - - - 2,077,735 -
Participants - 2,821,357 - 3,190,813 6,466,345
Rollovers - 388,080 - 590,184 544,803
-----------------------------------------------------------------------------------------
- 3,209,437 - 5,858,732 7,011,148
Net inter-fund transfers (out) in - (4,127,748) (1,439,591) (1,068,932) (2,758,482)
Administrative fees 50 (104,062) (29,277) (32,548) (49,935)
Participant withdrawals - (14,846,816) (2,064,178) (2,346,102) (5,634,191)
Transfer (to) from other plan - - 2,427,416 228,200 -
-----------------------------------------------------------------------------------------
50 (19,078,626) (1,105,630) (3,219,382) (8,442,608)
-----------------------------------------------------------------------------------------
Net increase (decrease) 29,301 (8,279,136) 5,358,144 (1,905,082) 20,425,235
Net assets available for plan benefits,
beginning of year 343,579 118,809,965 38,619,328 36,892,062 63,412,583
-----------------------------------------------------------------------------------------
Net assets available for plan benefits,
end of year $ 372,880 $ 110,530,829 $ 43,977,472 $ 34,986,980 $ 83,837,818
=========================================================================================
<CAPTION>
-------------------------------------------------------------------
PRIME FIDELITY
VALUE TEMPLETON INCOME CAPITAL & INCOME
OBLIGATIONS FOREIGN FUND OF AMERICA FUND
FUND FUND
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 899,433 $ 954,383 $ 1,214,108 $ 1,756,813
Net realized and unrealized
appreciation/(depreciation) in fair
value of investments - (2,825,659) 1,037,865 (756,739)
-------------------------------------------------------------------
899,433 (1,871,276) 2,251,973 1,000,074
Contributions:
Employer - - - -
Participants 1,105,194 4,024,880 1,669,221 2,419,907
Rollovers 60,372 325,635 369,239 304,872
-------------------------------------------------------------------
1,165,566 4,350,515 2,038,460 2,724,779
Net inter-fund transfers (out) in 2,045,683 (2,718,360) (526,918) (408,145)
Administrative fees (10,766) (24,292) (17,114) (15,087)
Participant withdrawals (3,633,097) (2,540,965) (1,962,083) (1,712,724)
Transfer (to) from other plan 256,418 - - -
-------------------------------------------------------------------
(1,341,762) (5,283,617) (2,506,115) (2,135,956)
-------------------------------------------------------------------
Net increase (decrease) 723,237 (2,804,378) 1,784,318 1,588,897
Net assets available for plan benefits,
beginning of year 16,243,759 36,646,006 23,954,765 20,578,151
-------------------------------------------------------------------
Net assets available for plan benefits,
end of year $ 16,966,996 $ 33,841,628 $ 25,739,083 $ 22,167,048
===================================================================
<CAPTION>
-----------------------------------------------------------------------------
PIMCO ICM
VANGUARD INDEX TOTAL BRANDYWINE SMALL
TRUST 500 RETURN BLUE COMPANY
PORTFOLIO FUND FUND PORTFOLIO
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 782,231 $ 838,317 $ 45,112 $ 7,691
Net realized and unrealized
appreciation/(depreciation) in fair
value of investments 14,171,726 255,730 (192,747) (66,953)
-----------------------------------------------------------------------------
14,953,957 1,094,047 (147,635) (59,262)
Contributions:
Employer - - - -
Participants 7,436,154 788,415 1,078,208 92,815
Rollovers 1,713,908 200,346 345,775 74,808
-----------------------------------------------------------------------------
9,150,062 988,761 1,423,983 167,623
Net inter-fund transfers (out) in 3,884,540 106,457 982,606 1,522,619
Administrative fees (41,207) (7,778) (3,983) (446)
Participant withdrawals (4,624,071) (748,714) (182,183) (1,871)
Transfer (to) from other plan - - - -
-----------------------------------------------------------------------------
(780,738) (650,035) 796,440 1,520,302
-----------------------------------------------------------------------------
Net increase (decrease) 23,323,281 1,432,773 2,072,788 1,628,663
Net assets available for plan benefits,
beginning of year 47,039,126 10,735,486 3,667,482 -
-----------------------------------------------------------------------------
Net assets available for plan benefits,
end of year $ 70,362,407 $ 12,168,259 $ 5,740,270 $ 1,628,663
=============================================================================
<CAPTION>
-------------------------------------------------------
VANGUARD FIXED
INCOME LONG
LOAN TERM CORPORATE
ACCOUNT PORTFOLIO TOTAL
-------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Interest and dividends $ 136,113 $ 693,039 $ 15,455,859
Net realized and unrealized
appreciation/(depreciation) in fair
value of investments - 301,110 35,191,055
-------------------------------------------------------
136,113 994,149 50,646,914
Contributions:
Employer - - 2,077,735
Participants - 859,368 31,952,677
Rollovers - 169,730 5,087,752
-------------------------------------------------------
- 1,029,098 39,118,164
Net inter-fund transfers (out) in 3,897,432 608,839 -
Administrative fees - (7,716) (344,161)
Participant withdrawals (56,982) (1,095,197) (41,449,174)
Transfer (to) from other plan - - 2,912,034
-------------------------------------------------------
3,840,450 (494,074) (38,881,301)
-------------------------------------------------------
Net increase (decrease) 3,976,563 1,529,173 50,883,777
Net assets available for plan benefits,
beginning of year - 10,202,212 427,144,504
-------------------------------------------------------
Net assets available for plan benefits,
end of year $ 3,976,563 $ 11,731,385 $ 478,028,281
=======================================================
</TABLE>
SEE ACCOMPANYING NOTES
5
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Notes to Financial Statements
December 30, 1999
1. DESCRIPTION OF THE PLAN
GENERAL
The Lehman Brothers Holdings Inc. Tax Deferred Savings Plan (the "Plan") is a
defined contribution plan. The Plan became effective January 1, 1984, was
amended and restated effective January 1, 1989 and was subsequently amended
through November 15, 1998. Under the terms of the Plan, qualified employees of
Lehman Brothers Holdings Inc. ("Lehman") and its participating subsidiaries
(collectively, the "Company") are eligible to become Plan participants as soon
as administratively possible upon employment. Prior to July 1, 1995, there was a
12-month service requirement for plan participants.
The Plan is subject to the provisions of ERISA. A complete description of the
Plan is contained in the Plan document available to all participants from the
Plan Administrator.
CONTRIBUTIONS
Upon enrollment, a participant may elect to contribute, on a pre-tax basis,
between one and fifteen percent of the participant's annual compensation, as
defined in the Plan document. The Company may make a contribution, in Company
stock or cash, on behalf of eligible participants who have completed 12 months
of service and are employees on the last day of the Plan year. The amount of the
contribution, if any, will be determined by the Company's Board of Directors. If
a Company contribution is made it will be allocated as follows:
1. Participants whose compensation is below $37,800 per year and are not
Investment Representatives, Investment Representative Trainees, Branch
Managers, or Institutional Salespeople will receive a Company contribution
of $400 plus a matching contribution of 100 percent of the first $600 of
the employee's Before-Tax contributions.
6
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
2. Participants whose compensation is between $37,800 and $100,000 per year
will receive a matching contribution of up to 100 percent of the first
$1,000 of the employee's Before-Tax contributions. Company contributions
to participants whose compensation is between $37,800 and $100,000 per
year will be made only if there are funds remaining after contributions
are made for participants making less than $37,800 per year.
3. Company contributions will not be made for participants whose
compensation exceeds $100,000 per year.
In 1999 and 1998, Company contributions were made in cash. Boston Safe Deposit &
Trust Company ("Boston Safe"), the Plan's custodian, used cash to purchase the
Company's common stock.
A participant's Before-Tax Contributions will not be subject to tax until
distribution. The Internal Revenue Code of 1986, as amended (the "Code"),
provides that Before-Tax Contributions (and any elective deferrals to other
plans containing a cash or deferred arrangement) will be included in a
participant's gross income to the extent such contributions exceed the statutory
limitation, which is indexed for inflation. The maximum limitation amount was
$10,000 for 1999 and 1998. The Company's contributions on behalf of a
participant, as well as the income and appreciation on amounts invested in the
investment funds offered under the Plan, are not includable in the participant's
taxable income until distributed.
Rollover contributions arise from contributions to the Plan of certain assets
previously held on behalf of participants by other qualified plans.
7
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
VALUATION OF PARTICIPANT ACCOUNTS
Separate accounts are maintained for each participant whereby the participant's
account is credited for contributions and investment income and credited or
charged, as appropriate, for investment appreciation or depreciation.
Participant accounts are charged for withdrawals. The periodic allocation of
investment income and investment appreciation or depreciation is based upon the
participant's beneficial interest in each of the investment funds at the
valuation date.
INVESTMENTS
Participants' contributions can be invested in any of the funds listed below.
Investments of contributions among the investment funds can be made in
increments of 10%, with a maximum of 50% of contributions permitted to be
invested in the Lehman Brothers Holdings Inc. Common Stock Fund. Participants
can elect to change their contribution rate and investment direction of new
contributions on a monthly basis. Participants may also elect to transfer
existing fund balances among the investment funds, generally on a monthly basis.
The following is a general description of each investment fund in which the Plan
invested, as directed by participants:
8
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
FIXED INCOME FUND: This fund invests its assets with one or more insurance
companies or financial institutions (collectively, "institutions") which
issue contracts ("contracts") providing for the repayment of principal with a
specified annual rate of interest for a specified period. The fund is
currently invested in contracts negotiated with the following institutions:
<TABLE>
<CAPTION>
CARRYING VALUE AT
MATURITY INTEREST DECEMBER 30
DATE RATE (%) 1999 1998
------------------------------------------------
<S> <C> <C> <C> <C>
Metropolitan Life Insurance Co.
Contract #24565 06/30/99 7.30 $ - $5,976,916
Contract #13955 06/15/99 8.25 - 6,697,411
Allstate Life Insurance Company
Contract #GICGA5584 12/15/00 7.30 10,841,725 15,082,111
Contract #GICGA5806 07/05/00 6.81 5,412,558 7,564,002
Prudential Asset Management Group
Contract #7430-211 12/15/99 6.52 - 10,363,944
American International Life
Assurance Company of New York
Contract #18180T 6/15/00 5.45 9,421,075 8,934,160
People's Security Insurance Co.
Contract #BDA00473FR 08/15/01 8.20 14,860,342 13,734,267
Contract #BDA00568FR 12/15/01 6.85 12,783,173 11,963,674
The Principal Financial Group
Contract #4-08804-01 12/15/00 6.15 4,529,461 4,267,388
Contract #4-08804-02 12/15/02 6.40 11,999,361 11,277,600
New York Life Insurance Company
Contract #30727 6/14/02 6.52 3,627,452 3,405,565
Transamerica Life Insurance
Company
Contract #51499 12/15/02 6.02 3,646,384 3,439,335
Travelers Life Insurance Company
Contract #GA16953 12/15/02 6.02 5,399,146 5,092,571
Bank of America
Contract #99-238 11/15/04 6.20 2,958,350 -
------------------------------
$85,479,027 $107,798,944
==============================
</TABLE>
9
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
The carrying value of the contracts approximates their fair value as of
December 30, 1999 and 1998. Carrying Value was estimated using an analysis
based on the Plan's current investment rate for a similar contract.
AMERICAN EXPRESS COMPANY COMMON STOCK FUND: This fund invests solely in the
common stock of American Express. As of May 31, 1994, this fund has been
closed to any new contributions, dividend reinvestments, or transfers in
from other funds.
LEHMAN BROTHERS HOLDINGS INC. COMMON STOCK FUND: This fund invests solely in
the common stock of the Company.
AMERICAN CENTURY ULTRA INVESTORS FUND: The primary objective of this fund is
to provide a high level of capital appreciation by investing primarily in
medium and large-sized companies with above average growth potential.
PRIME VALUE OBLIGATIONS FUND: The objective of this short-term, fixed income
money market fund is to provide current income and stability of principal.
TEMPLETON FOREIGN FUND: The primary objective of this fund is to provide
long-term growth of capital by investing primarily in securities of
companies located outside the United States.
INCOME FUND OF AMERICA: This fund's objective is to provide current income
by investing in debt securities and capital appreciation by investing in
equity securities.
FIDELITY CAPITAL & INCOME FUND: The primary objective of this fund is to
provide a high total return of capital growth and income. The fund invests
primarily in lower rated debt securities and securities of companies with
uncertain financial position.
10
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
VANGUARD INDEX TRUST 500 PORTFOLIO/S&P 500 INDEX FUND: This equity fund's
objective is to replicate the investment performance of the Standard &
Poor's 500 Index.
PIMCO TOTAL RETURN FUND: This fund is an intermediate term, fixed income
fund whose objective is to provide a high level of current income with
reasonable risk by investing in a diversified portfolio of fixed income
securities of varying maturities.
BRANDYWINE BLUE FUND: This fund invests in high quality blue chip stocks
with the objective of providing long-term growth.
VANGUARD FIXED INCOME LONG-TERM CORPORATE PORTFOLIO: This fund invests in a
diversified portfolio of long-term corporate and government bonds with the
objective of providing a high level of current income.
ICM SMALL COMPANY PORTFOLIO: This fund invests in common stock of smaller
companies in terms of revenue and assets and more, importantly, in terms of
market capitalization with the objective of providing maximum long-term
total return. This fund was added as an investment option to the Plan on
June 1, 1998.
10 UNCOMMON VALUES FUND: This fund is a unit investment trust comprised of
ten stocks chosen on or about July 1 of each year by the Lehman Brothers
Investment Policy Committee. Its objective is to outperform the S&P 500 over
the 12-month period. This fund was added as an investment option to the Plan
on July 2, 1999.
In addition to the funds described above, a short-term interest fund provides
overnight investments in money market funds of Boston Safe for temporarily
invested cash. While cash for withdrawals is disbursed from this fund,
withdrawals are recorded in the investment fund from which the participant
withdrew.
11
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
INVESTMENTS IN EXCESS OF 5% OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
The following is a schedule of investments held in excess of 5% of the net
assets available for plan benefits at the end of 1999:
<TABLE>
<CAPTION>
MARKET VALUE
NUMBER AT DECEMBER
FUNDS OF SHARES 30, 1999
----- -----------------------------
<S> <C> <C>
American Express Company common stock 379,391 $ 62,884,140
Lehman Brothers Holdings Inc. common stock 723,402 61,402,505
American Century Ultra Investors Fund 2,518,910 114,308,128
Templeton Foreign Fund 3,834,248 42,905,230
Vanguard Index Trust 500 Portfolio 641,283 85,662,574
10 Uncommon Values Fund 4,105,603 47,434,807
</TABLE>
BENEFITS
A participant may elect, after attaining the age of 59-1/2, to withdraw all or
any portion of the value of his accounts, provided that each withdrawal is at
least $1,000 (or is 100% of the value of his account if less than $1,000).
Withdrawals by participants before the age of 59-1/2 are permitted of before-tax
contributions and pre-1989 earnings thereon, only after meeting specified
financial hardship criteria and after obtaining approval by the Employee Benefit
Plans Committee of the Company. A participant can elect to withdraw all or a
part of their rollover contribution made to the Plan. Prior to 1999, such a
withdrawal must have been at least $1,000 (or 100% of the value of his account
if less) and was allowed only once during any consecutive 12-month period.
12
<PAGE>
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
Although hardship and rollover withdrawals are allowed, a participant may be
subject to an additional 10% tax imposed by the Code. If a participant's
employment with the Company terminates for a reason other than death, for
distributions before age 591/2 the balance in the participant's account is paid
to the participant in a lump-sum payment. However, if the balance in his account
exceeds $5,000, payment will not be made before age 65 without the participant's
consent. Upon death of the participant, the balance in the participant's account
is paid to the designated beneficiary (as provided by the Plan) in a lump-sum
payment.
BENEFITS PAYABLE
Benefits payable to those participants who have elected to receive a
distribution (or be paid automatically as described above) from the Plan but
have not yet been paid was $7,166,446 and $5,319,943 in 1999 and 1998,
respectively.
VESTING
Plan participants are 100 percent vested in all amounts in their respective Plan
accounts.
INCOME TAX STATUS
The Plan received a determination letter from the Internal Revenue Service
("IRS") dated February 14, 1995, stating that the Plan is qualified under
Section 401(a) of the Internal Revenue Code ("Code") and, therefore, the related
trust is exempt from taxation. The Plan has been amended subsequent to the
receipt of the determination letter. The Employee Benefit Plans Committee
intends to apply for a new determination letter from the IRS. Once qualified,
the Plan is required to operate in conformity with the Code to maintain its
qualification. The Employee Benefit Plans Committee believes the Plan is being
operated in compliance with the applicable requirements of the Code and,
therefore, believes that the Plan is qualified and the related trust is tax
exempt.
13
<PAGE>
1. DESCRIPTION OF THE PLAN (CONTINUED)
PARTICIPANT LOANS RECEIVABLE
Participants may borrow from their plan accounts a minimum of $1,000 up to a
maximum of $50,000 or 50% of their vested account balance, whichever is less.
Loan transactions are treated as a transfer from (to) the investment fund to
(from) the loan account. Loan terms range from 1 year to 5 years or up to 10
years for the purchase of a primary residence as long as documentation is
provided. The loans are secured by one half of the balance in the participant's
accounts and bear interest at the rate of prime plus one. Principal and interest
are paid ratably through biweekly or monthly payroll deductions, depending on
the frequency with which the employee is paid. Participants who terminate with
outstanding loan balances have until the end of the quarter following the
quarter in which they terminate to pay the balance of their loan in full, in one
lump sum payment. Loans not repaid in that timeframe will be reported as taxable
distributions. Outstanding loan balances will also be treated as taxable
distributions for those participants who request a distribution of their account
prior to repaying their loan. For the year ended December 30, 1999, $118,858 in
outstanding loan balances was reclassified as taxable distributions.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
VALUATION OF INVESTMENTS
Investments in mutual funds are valued at the quoted redemption prices on the
last business day of the Plan year; investments in the common stock of American
Express and the Company are valued at the quoted market price on the last
business day of the Plan year; short-term investments and deposits with
insurance companies in connection with contracts are valued at cost plus accrued
interest, which approximates fair value.
Purchase and sales of securities are reflected on a trade-date basis.
14
<PAGE>
1. DESCRIPTION OF THE PLAN (CONTINUED)
OTHER
Dividend income is recorded on the ex-dividend date. Income from other
investments is recorded on the accrual basis.
USE OF ESTIMATES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States requires the use of estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
3. ADMINISTRATIVE FEES
Except to the extent paid by the Company, all expenses of the Plan are paid by
the Plan. In 1999 and 1998, the Plan was charged $183,453 and $344,161 for
administrative expenses incurred during the respective years. The Company paid
all expenses not directly relating to the administration of the Plan.
4. PLAN TERMINATION
While it has not expressed any intent to do so, the Company has the right to
terminate the Plan at any time subject to the provisions set forth in ERISA and
the Code.
5. TRANSFER FROM OTHER PLAN
On December 1, 1998, a transfer was made from the Lehman Brothers Holdings Inc.
Employee Stock Ownership Plan upon its termination for participants who elected
to transfer their account balances in the amount of $2,912,034. 24,259 shares of
American Express common shares valued at $2,427,416, 4,564 shares of Lehman
Brothers Holdings common shares valued at $228,200, and $256,418 in cash were
transferred into the Plan on behalf of these participants.
15
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Lehman Brothers Holdings Inc. Employee Benefit Plans Committee has
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
LEHMAN BROTEHRS HOLDINGS INC.
TAX DEFERRED SAVINGS PLAN
By: /s/ Wendy McKinley
-------------------------------
Wendy McKinley
Lehman Brothers Holdings Inc.
Employee Benefit Plans Committee
June 28, 2000
<PAGE>
Supplemental Information
<PAGE>
SCHEDULE I
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Line 27a--Schedule of Investments Held
Plan No. 003
Employer Identification No. 13-3216325
December 30, 1999
<TABLE>
<CAPTION>
PAR VALUE/ CURRENT VALUE COST AT
NUMBER OF AT DECEMBER DECEMBER
SHARES 30, 1999 30, 1999
------------- --------------- --------------
<S> <C> <C> <C>
CONTRACTS ISSUED BY INSTITUTIONS
Allstate Life Insurance Co
Contract #GICA5584 10,841,725 $10,841,725 $10,841,725
Contract #GICA5806 5,412,558 5,412,558 5,412,558
American International Life Assurance Company of
New York
Contract #18180T 9,421,075 9,421,075 9,421,075
People's Security Insurance Co.
Contract #BDA00473FR 14,860,342 14,860,342 14,860,342
Contract #BDA00568FR 12,783,173 12,783,173 12,783,173
The Principal Financial Group
Contract #4-08804-01 4,529,461 4,529,461 4,529,461
Contract #4-08804-02 11,999,361 11,999,361 11,999,361
New York Life Insurance Co.
Contract #30727 3,627,452 3,627,452 3,627,452
TransAmerica Life Insurance Co.
Contract #51499 3,646,384 3,646,384 3,646,384
Travelers Life Insurance Co.
Contract #GA16953 5,399,146 5,399,146 5,399,146
Bank of America
Contract #99-238 2,958,350 2,958,350 2,958,350
------------------------------
85,479,027 85,479,027
STOCK FUNDS
American Express Company common stock 379,391 62,884,140 10,473,167
Lehman Brothers Holdings Inc. common stock 723,402 61,402,505 22,135,709
------------------------------
124,286,645 32,608,876
MUTUAL FUNDS
Twentieth Century Ultra Investors Fund 2,518,910 114,308,128 68,137,838
Prime Value Obligations Fund 15,026,246 15,026,246 15,026,246
Templeton Foreign Fund 3,834,248 42,905,230 36,387,048
Income Fund of America 1,318,711 20,703,763 20,729,446
Fidelity Capital & Income fund 2,400,827 22,231,659 22,915,798
Vanguard Index Trust 500 Portfolio 641,283 85,662,574 77,089,407
PIMCO Total Return Fund 1,223,046 12,144,844 12,629,905
Vanguard Fixed Income Long-Term Corporate Portfolio 1,342,746 10,943,379 11,835,475
ICM Small Company Portfolio Fund 105,537 2,159,290 2,555,269
Brandywine Blue Fund 204,127 7,317,965 5,664,640
10 Uncommon Values Fund 4,105,603 47,434,807 39,886,634
------------------------------
380,837,885 312,857,706
LOAN ACCOUNT 5,084,521 -
------------------------------
TOTAL INVESTMENTS $595,688,078 $430,945,609
==============================
</TABLE>
16
<PAGE>
SCHEDULE II
Lehman Brothers Holdings Inc.
Tax Deferred Savings Plan
Line 27d--Schedule of Reportable Transactions
Plan No. 003
Employer Identification No. 13-3216325
Year ended December 30, 1999
<TABLE>
<CAPTION>
CURRENT
VALUE
OF ASSET ON
IDENTITY OF PARTY INVOLVED AND PURCHASE SALES COST OF TRANSACTION NET GAIN
DESCRIPTION OF ASSETS PRICE PRICE ASSETS DATE (LOSS)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CATEGORY (I)--SINGLE
TRANSACTION IN EXCESS OF
5% OF PLAN ASSETS
Vanguard Institutional Index Fund $75,529,048 $75,529,048
Vanguard Index Trust 500 Portfolio $75,529,048 $48,407,509 75,529,048 $27,121,539
10 Uncommon Value Fund 24,010,012 24,010,012
CATEGORY (III)--SERIES OF
TRANSACTIONS IN EXCESS OF
5% OF PLAN ASSETS
American Century Ultra
Investors Fund 12,698,093 12,698,093
American Century Ultra
Investors Fund 12,665,309 8,961,478 12,665,309 3,703,831
Vanguard Index Trust 500 Portfolio 92,831,698 92,831,698
Vanguard Index Trust 500 Portfolio 90,571,009 58,249,764 90,571,009 32,321,245
10 Uncommon Value Fund 40,211,441 40,211,441
10 Uncommon Value Fund 339,729 324,807 339,729 14,922
</TABLE>
THERE WERE NO CATEGORY (II), OR (IV) TRANSACTIONS DURING THE YEAR ENDED DECEMBER
30, 1999.
17
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
----------- -----------
(23) Consent of Experts
