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.