20 2000 purposes, the company recorded the exchange as two simultaneous but separate events; that is, a sale of its Austin TV station for which  a non-operating gain was recognized and the acquisition of the Sacramento station accounted for under the purchase method. In its second quarter, the company reported a net non-operating gain of $55 million ($33 million after tax) principally as a result of this transaction. In June 2000, Gannett acquired the entire share capital of News Communications & Media plc (“Newscom”) for approximately 444 million British pounds (U.S. $702 million). Gannett also financed the repayment of Newscom’s existing debt. With the Newscom acquisition, Newsquest (which includes Newscom) now publishes more than 300 titles in the United Kingdom, including 15 daily newspapers. On July 21, 2000, the company concluded the acquisition of  19 daily newspapers as well as numerous weekly and niche publica- tions from Thomson Newspapers Inc. for an aggregate purchase price of $1.036 billion. The company acquired eight daily newspa- pers in Wisconsin, eight daily newspapers in central Ohio, and daily newspapers in Lafayette, La.; Salisbury, Md.; and St. George, Utah (collectively, “Thomson”). The aggregate purchase price, including liabilities assumed,  for businesses and assets acquired in 1999, including Newsquest, KXTV-TV and certain smaller non-daily newspaper publishing  operations, totaled approximately $1.8 billion. In March 1999, the company contributed The San Bernardino County Sun to the California Newspapers Partnership in exchange for a partnership interest. The company completed its acquisition of Central Newspapers, Inc. (“Central”), on Aug. 1, 2000, for an approximate cash purchase price of $2.6 billion. The company also retired Central’s existing debt of approximately $206 million. Central’s properties include The Arizona Republic; The Indianapolis Star; three other dailies in Indiana and one daily in Louisiana; a direct marketing business; CNI Ventures, an Internet and technology investment management group; and other related media and information businesses. In March 2000, the company completed the acquisition of WJXX-TV, the ABC affiliate in Jacksonville, Fla. Gannett continues to own and operate WTLV-TV, the NBC affiliate in Jacksonville. The Newscom, Thomson, Central and WJXX-TV acquisitions were recorded under the purchase method of accounting. The aggregate purchase price, including liabilities assumed,  for businesses and assets acquired in 2000, including Newscom, Thomson, Central, WJXX-TV and certain smaller newspaper  publishing operations, totaled approximately $4.8 billion. A consolidated summary of the company’s results is presented below. Note that this summary separates from ongoing results  the second quarter 1999 net non-operating gain of $55 million ($33 million after tax) principally from an exchange of a television station. The sale of the assets of the company’s cable division for $2.7  billion was completed on Jan. 31, 2000. Upon closing, an after-tax gain of approximately $745 million or $2.77 per diluted share was recognized which, along with the cable segment operating results, is reported as discontinued operations in the company’s financial  statements.  Early in the fourth quarter of 2000, the company contributed  the assets of its newspapers, the Marin Independent Journal and the Classified Gazette, to the California Newspapers Partnership (a part- nership that includes 20 daily California newspapers) in exchange for an increased ownership interest in the partnership. The company now has a 19.49% ownership interest in the partnership. In July 1999, Gannett acquired the stock of Newsquest plc (“Newsquest”) for a total price of approximately 922 million British pounds (U.S. $1.5 billion). Gannett also financed the repayment of Newsquest’s existing debt. Newsquest’s principal activities are pub- lishing and printing regional and local newspapers in England with a portfolio of more than 180 titles that includes paid-for daily and weekly newspapers and free weekly newspapers. The acquisition was recorded under the purchase method of accounting. In June 1999, the company completed a broadcast station  transaction under which it exchanged its ABC affiliate KVUE-TV  in Austin, Texas, and received KXTV-TV, the ABC affiliate in Sacramento, Calif., plus cash consideration. For financial reporting 1999 RESULTS OF CONTINUING OPERATIONS Consolidated summary In millions of dollars, except per share amounts 2001 Change 2000 Change 1999 Change Operating revenues $6,344  2% $ 6,222 22% $ 5,095 8% Operating expenses  $4,754  8% $ 4,405 25% $ 3,532 6% Operating income $1,590  (13%) $ 1,817 16% $ 1,563 13% Income from continuing operations, excluding gain on exchange of  properties $ 831 (14%) $ 972 10% $ 886 13% After-tax gain on exchange of properties $ 33 Income from  continuing operations, as reported $ 831 (14%) $ 972 6% $ 919 (5%) Earnings per share  from continuing operations,  excluding gain on exchange of properties Basic $ 3.14  (14%) $ 3.65 15% $ 3.18 15% Diluted $ 3.12  (14%) $ 3.63 15% $ 3.15 15% Earnings per share from gain on exchange of  properties Basic $ .11 Diluted $ .11 Earnings per share  from continuing  operations, as  reported Basic $ 3.14  (14%) $ 3.65 11% $ 3.29 (4%) Diluted $ 3.12  (14%) $ 3.63 11% $ 3.26 (4%)