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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
SEGMENT INFORMATION | 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 September 30, 2018 |  | Three Months Ended September 30, 2017
| Cablevision |  | Cequel |  | Total |  | Cablevision |  | Cequel |  | Total
Operating income (loss) | $ | 340,455 |  |  | $ | 165,103 |  |  | $ | 505,558 |  |  | $ | (3,103 | ) |  | $ | 123,678 |  |  | $ | 120,575 |
Share-based compensation | 9,038 |  |  | 3,289 |  |  | 12,327 |  |  | 11,555 |  |  | 3,450 |  |  | 15,005 |
Restructuring and other expense | 14,122 |  |  | 2,465 |  |  | 16,587 |  |  | 35,364 |  |  | 18,084 |  |  | 53,448 |
Depreciation and amortization (including impairments) | 378,549 |  |  | 157,504 |  |  | 536,053 |  |  | 656,122 |  |  | 167,164 |  |  | 823,286 |
Adjusted EBITDA | $ | 742,164 |  |  | $ | 328,361 |  |  | $ | 1,070,525 |  |  | $ | 699,938 |  |  | $ | 312,376 |  |  | $ | 1,012,314 |
| Nine Months Ended September 30, 2018 |  | Nine Months Ended September 30, 2017
| Cablevision |  | Cequel |  | Total |  | Cablevision |  | Cequel |  | Total
Operating income | $ | 714,413 |  |  | $ | 439,242 |  |  | $ | 1,153,655 |  |  | $ | 228,740 |  |  | $ | 395,213 |  |  | $ | 623,953 |
Share-based compensation | 35,567 |  |  | 10,609 |  |  | 46,176 |  |  | 28,597 |  |  | 12,335 |  |  | 40,932 |
Restructuring and other expense | 25,720 |  |  | 4,145 |  |  | 29,865 |  |  | 105,182 |  |  | 37,583 |  |  | 142,765 |
Depreciation and amortization (including impairments) | 1,337,051 |  |  | 490,234 |  |  | 1,827,285 |  |  | 1,641,501 |  |  | 497,299 |  |  | 2,138,800 |
Adjusted EBITDA | $ | 2,112,751 |  |  | $ | 944,230 |  |  | $ | 3,056,981 |  |  | $ | 2,004,020 |  |  | $ | 942,430 |  |  | $ | 2,946,450 |
A reconciliation of reportable segment amounts to the Company's condensed consolidated balances are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Operating income for reportable segments | $ | 505,558 |  |  | $ | 120,575 |  |  | $ | 1,153,655 |  |  | $ | 623,953 |
Items excluded from operating income: |  |  |  |  |  |  |
Interest expense | (389,594 | ) |  | (379,066 | ) |  | (1,157,395 | ) |  | (1,232,730 | )
Interest income | 1,427 |  |  | 961 |  |  | 9,843 |  |  | 1,373 |
Gain (loss) on investments and sale of affiliate interests, net | 111,684 |  |  | (18,900 | ) |  | (182,031 | ) |  | 169,888 |
Gain (loss) on derivative contracts, net | (79,628 | ) |  | (16,763 | ) |  | 130,883 |  |  | (154,270 | )
Gain (loss) on interest rate swap contracts | (19,554 | ) |  | 1,051 |  |  | (64,405 | ) |  | 12,539 |
Loss on extinguishment of debt and write-off of deferred financing costs | — |  |  | (38,858 | ) |  | (41,616 | ) |  | (600,240 | )
Other expense, net | (186 | ) |  | (2,984 | ) |  | (12,473 | ) |  | (9,019 | )
Income (loss) before income taxes | $ | 129,707 |  |  | $ | (333,984 | ) |  | $ | (163,539 | ) |  | $ | (1,188,506 | )
The following tables present the composition of revenue by reportable segment:
| Three Months Ended September 30, 2018 |  | Three Months Ended September 30, 2017
| Cablevision |  | Cequel |  | Eliminations (a) |  | Total |  | Cablevision |  | Cequel |  | Eliminations (a) |  | Total
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pay TV | $ | 783,252 |  |  | $ | 271,415 |  |  | $ | — |  |  | $ | 1,054,667 |  |  | $ | 798,583 |  |  | $ | 271,363 |  |  | $ | — |  |  | $ | 1,069,946 |
Broadband | 457,709 |  |  | 272,198 |  |  | — |  |  | 729,907 |  |  | 416,972 |  |  | 241,306 |  |  | — |  |  | 658,278 |
Telephony | 130,494 |  |  | 30,857 |  |  | — |  |  | 161,351 |  |  | 140,830 |  |  | 31,649 |  |  | — |  |  | 172,479 |
Business services and wholesale | 242,305 |  |  | 101,888 |  |  | — |  |  | 344,193 |  |  | 230,200 |  |  | 94,442 |  |  | — |  |  | 324,642 |
Advertising | 105,719 |  |  | 18,107 |  |  | (760 | ) |  | 123,066 |  |  | 72,316 |  |  | 17,456 |  |  | (480 | ) |  | 89,292 |
Other | 2,209 |  |  | 2,408 |  |  | — |  |  | 4,617 |  |  | 2,458 |  |  | 5,426 |  |  | — |  |  | 7,884 |
Total Revenue | $ | 1,721,688 |  |  | $ | 696,873 |  |  | $ | (760 | ) |  | $ | 2,417,801 |  |  | $ | 1,661,359 |  |  | $ | 661,642 |  |  | $ | (480 | ) |  | $ | 2,322,521 |
| Nine Months Ended September 30, 2018 |  | Nine Months Ended September 30, 2017
| Cablevision |  | Cequel |  | Eliminations (a) |  | Total |  | Cablevision |  | Cequel |  | Eliminations (a) |  | Total
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pay TV | $ | 2,313,229 |  |  | $ | 809,550 |  |  | $ | — |  |  | $ | 3,122,779 |  |  | $ | 2,397,233 |  |  | $ | 827,754 |  |  | $ | — |  |  | $ | 3,224,987 |
Broadband | 1,347,486 |  |  | 796,244 |  |  | — |  |  | 2,143,730 |  |  | 1,218,504 |  |  | 708,312 |  |  | — |  |  | 1,926,816 |
Telephony | 399,714 |  |  | 91,174 |  |  | — |  |  | 490,888 |  |  | 432,710 |  |  | 98,991 |  |  | — |  |  | 531,701 |
Business services and wholesale | 713,240 |  |  | 301,431 |  |  | — |  |  | 1,014,671 |  |  | 689,708 |  |  | 277,995 |  |  | — |  |  | 967,703 |
Advertising | 276,343 |  |  | 53,541 |  |  | (9,338 | ) |  | 320,546 |  |  | 216,250 |  |  | 54,384 |  |  | (480 | ) |  | 270,154 |
Other | 8,697 |  |  | 10,357 |  |  | — |  |  | 19,054 |  |  | 8,467 |  |  | 17,314 |  |  | — |  |  | 25,781 |
Total Revenue | $ | 5,058,709 |  |  | $ | 2,062,297 |  |  | $ | (9,338 | ) |  | $ | 7,111,668 |  |  | $ | 4,962,872 |  |  | $ | 1,984,750 |  |  | $ | (480 | ) |  | $ | 6,947,142 |
(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 September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Cablevision | $ | 217,326 |  |  | $ | 180,287 |  |  | $ | 554,483 |  |  | $ | 505,852 |
Cequel | 117,201 |  |  | 75,042 |  |  | 278,341 |  |  | 213,067 |
| $ | 334,527 |  |  | $ | 255,329 |  |  | $ | 832,824 |  |  | $ | 718,919 |
Primarily 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 makers for purposes of decision making regarding resource allocations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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