First American Defers $14.2-Million Gain

First American Corp., which operates the nation’s second-largest title insurer, said Thursday that it will defer a one-time $14.2-million gain on the sale of its Contour Software unit, rather than recognize the full gain in the first quarter this year.

The Santa Ana company said that the deferral has no impact on its previously reported operating earnings of 30 cents a share and will have no impact on its future operational net income.

First American said its public accountants, PricewaterhouseCoopers LLP, originally advised the company to recognize the pretax capital gain in the first quarter, but later said the gain should be deferred over the life of a three-year promissory note received as part of the consideration for the sale.