Moody’s Corporation has received a $15.9 million insurance recovery for incremental costs incurred and lost profits related to the Sept. 11, 2001 tragedy.
Combined with a $4 million advance payment received in 2002, the company’s total recovery related to this matter was $19.9 million. The portion of the recovery that exceeded Moody’s incremental costs incurred will be recorded as a non-recurring gain of approximately $13.6 million, or $0.05 per diluted share, in the first quarter of 2003.
Because this gain was not known with sufficient certainty at the time, it was not included in Moody’s previous 2003 earnings guidance as set forth in the company’s 2002 earnings report on Feb. 4, 2003. Excluding this gain, and before the estimated $0.04 per share impact of expensing stock options as previously announced, Moody’s continues to expect that percent growth in 2003 diluted earnings per share will be in the low double digits.
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