SEGMENT INFORMATION

The Company classifies its operations into two reportable segments: Cablevision and Cequel. The Company's reportable segments are strategic business units that are managed separately. The Company evaluates segment performance based on several factors, of which the primary financial measure is business segment Adjusted EBITDA, a non-GAAP measure. The Company defines Adjusted EBITDA as net income (loss) excluding income taxes, income (loss) from discontinued operations, non-operating other income or expenses, loss on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments, interest expense (including cash interest expense), interest income, depreciation and amortization (including impairments), share-based compensation expense or benefit, restructuring expense or credits and transaction expenses. The Company has presented the components that reconcile Adjusted EBITDA to operating income, an accepted GAAP measure:



	Year Ended December 31, 2017						Year Ended December 31, 2016
	Cablevision		Cequel		Total		Cablevision		Cequel		Total
Operating income	$	320,686	$	520,322	$	841,008	$	78,008	$	384,801	$	462,809
Share-based compensation	42,060		15,370		57,430		9,164		5,204		14,368
Restructuring and other expense	112,384		40,017		152,401		212,150		28,245		240,395
Depreciation and amortization (including impairments)	2,251,710		678,861		2,930,571		963,665		736,641		1,700,306
Adjusted EBITDA	$	2,726,840	$	1,254,570	$	3,981,410	$	1,262,987	$	1,154,891	$	2,417,878


(a)	Reflects operating results of Cablevision from the date of acquisition.

A reconciliation of reportable segment amounts to the Company's consolidated balances are as follows:



	Year Ended December 31,
	2017			2016
Operating income for reportable segments	$	841,008		$	462,809
Items excluded from operating income:
Interest expense	(1,603,132		)	(1,456,541		)
Interest income	1,921			13,811
Gain on investments, net	237,354			141,896
Loss on derivative contracts, net	(236,330		)	(53,696		)
Gain (loss) on interest rate swap contracts	5,482			(72,961		)
Loss on extinguishment of debt and write-off of deferred financing costs	(600,240		)	(127,649		)
Other income (expense), net	(13,651		)	1,186
Loss before income taxes	$	(1,367,588	)	$	(1,091,145	)

The following table presents the composition of revenue by segment:



	Year Ended December 31, 2017									Year Ended December 31, 2016
	Cablevision (a)		Cequel		Eliminations			Total		Cablevision (a)		Cequel		Total
Residential:
Pay TV	$	3,175,097	$	1,099,025	$	—		$	4,274,122	$	1,668,348	$	1,120,525	$	2,788,873
Broadband	1,649,771		958,824		—			2,608,595		817,160		834,414		1,651,574
Telephony	570,871		129,894		—			700,765		311,832		153,939		465,771
Business services and wholesale	922,691		375,522		—			1,298,213		468,632		350,909		819,541
Advertising	321,149		73,509		(2,792		)	391,866		163,678		88,371		252,049
Other	10,747		22,642		—			33,389		14,402		25,002		39,404
Total Revenue	$	6,650,326	$	2,659,416	$	(2,792	)	$	9,306,950	$	3,444,052	$	2,573,160	$	6,017,212


(a)	Reflects revenue from the Cablevision Acquisition Date.

Capital expenditures (cash basis) by reportable segment are presented below:



	Years Ended December 31,
	2017		2016
Cablevision	$	671,417	$	298,357
Cequel	279,932		327,184
	$	951,349	$	625,541

All revenues and assets of the Company's reportable segments are attributed to or located in the United States.

Total assets by segment are not provided as such amounts are not regularly reviewed by the chief operating decision maker for purposes of decision making regarding resource allocations.