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:



	Three Months Ended June 30, 2018						Three Months Ended June 30, 2017
	Cablevision		Cequel		Total		Cablevision		Cequel		Total
Operating income	$	203,265	$	131,794	$	335,059	$	109,799	$	143,469	$	253,268
Share-based compensation	10,357		1,869		12,226		11,960		6,119		18,079
Restructuring and other expense	8,515		1,176		9,691		11,171		1,217		12,388
Depreciation and amortization (including impairments)	473,138		175,389		648,527		542,203		164,587		706,790
Adjusted EBITDA	$	695,275	$	310,228	$	1,005,503	$	675,133	$	315,392	$	990,525



	Six Months Ended June 30, 2018						Six Months Ended June 30, 2017
	Cablevision		Cequel		Total		Cablevision		Cequel		Total
Operating income	$	373,958	$	274,139	$	648,097	$	231,843	$	271,535	$	503,378
Share-based compensation	26,529		7,320		33,849		17,042		8,885		25,927
Restructuring and other expense	11,598		1,680		13,278		69,818		19,499		89,317
Depreciation and amortization (including impairments)	958,502		332,730		1,291,232		985,379		330,135		1,315,514
Adjusted EBITDA	$	1,370,587	$	615,869	$	1,986,456	$	1,304,082	$	630,054	$	1,934,136

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Operating income for reportable segments	$	335,059		$	253,268		$	648,097		$	503,378
Items excluded from operating income:
Interest expense	(390,543		)	(420,370		)	(767,801		)	(853,664		)
Interest income	5,313			180			8,416			412
Gain (loss) on investments and sale of affiliate interests, net	(45,113		)	57,130			(293,715		)	188,788
Gain (loss) on derivative contracts, net	42,159			(66,463		)	210,511			(137,507		)
Gain (loss) on interest rate swap contracts	(12,929		)	9,146			(44,851		)	11,488
Loss on extinguishment of debt and write-off of deferred financing costs	(36,911		)	(561,382		)	(41,616		)	(561,382		)
Other expense, net	(629		)	(3,935		)	(12,287		)	(6,035		)
Loss before income taxes	$	(103,594	)	$	(732,426	)	$	(293,246	)	$	(854,522	)

The following tables present the composition of revenue by segment:



	Three Months Ended June 30, 2018									Three Months Ended June 30, 2017
	Cablevision		Cequel		Eliminations (a)			Total		Cablevision		Cequel		Total
Residential:
Pay TV	$	766,257	$	268,147	$	—		$	1,034,404	$	796,456	$	274,707	$	1,071,163
Broadband	449,426		262,776		—			712,202		405,199		237,421		642,620
Telephony	133,635		29,864		—			163,499		145,323		32,938		178,261
Business services and wholesale	236,763		100,625		—			337,388		230,964		92,677		323,641
Advertising	95,981		18,366		(4,449		)	109,898		78,802		18,699		97,501
Other	3,665		3,097		—			6,762		2,782		6,394		9,176
Total Revenue	$	1,685,727	$	682,875	$	(4,449	)	$	2,364,153	$	1,659,526	$	662,836	$	2,322,362



	Six Months Ended June 30, 2018									Six Months Ended June 30, 2017
	Cablevision		Cequel		Eliminations (a)			Total		Cablevision		Cequel		Total
Residential:
Pay TV	$	1,529,977	$	538,135	$	—		$	2,068,112	$	1,598,650	$	556,391	$	2,155,041
Broadband	889,777		524,046		—			1,413,823		801,532		467,006		1,268,538
Telephony	269,220		60,317		—			329,537		291,880		67,342		359,222
Business services and wholesale	470,935		199,543		—			670,478		459,508		183,553		643,061
Advertising	170,624		35,434		(8,578		)	197,480		143,934		36,928		180,862
Other	6,488		7,949		—			14,437		6,009		11,888		17,897
Total Revenue	$	3,337,021	$	1,365,424	$	(8,578	)	$	4,693,867	$	3,301,513	$	1,323,108	$	4,624,621

(a) Reflects revenue recognized by Cablevision from the sale of services to Cequel.

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Cablevision	$	170,356	$	141,166	$	337,157	$	325,565
Cequel	70,326		64,997		161,140		138,025
	$	240,682	$	206,163	$	498,297	$	463,590

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.