Index First American Profile Financial Highlights Letter to Stockholders First American's Strength in Numbers Title Information and Services Real Estate Information and Services Consumer Information and Services Management's Discussion and Analysis Selected Financial Data Common Stock Prices and Dividends Quarterly Financial Data Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Accountants Officers Board of Directors Primary Companies Stockholder Information Back Cover

notes to consolidated financial statements

 NOTE 16

Other Comprehensive Income:

    Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income.

    Components of other comprehensive income are as follows:

(in thousands)	Unrealized gains on securities		Minimum pension liability adjustment		Accumulated other comprehensive income (loss)
Balance at December 31, 1998	$ 8,944		$   (1,206	)	$    7,738
Pretax change	(6,591	)	1,175		(5,416	)
Tax effect	2,308		(412	)	1,896
Balance at December 31, 1999	4,661		(443	)	4,218
Pretax change	2,893		(1,738	)	1,155
Tax effect	(1,013	)	609		(404	)
Balance at December 31, 2000	6,541		(1,572	)	4,969
Pretax change	(5,928	)	(22,665	)	(28,593	)
Tax effect	2,076		7,932		10,008
Balance at December 31, 2001	$ 2,689		$ (16,305	)	$ (13,616	)

    The change in unrealized gains on debt and equity securities includes reclassification adjustments of $(2.6) million and $3.7 million of net realized (losses) gains for the years ended December 31, 2000 and 1999, respectively. There were no reclassification adjustments in 2001.