Segment Information The Company is comprised of two reportable segments: MSG Entertainment and MSG Sports. In determining its reportable segments, the Company assessed the guidance of ASC 280-10-50-1, which provides the definition of a reportable segment. In accordance with the FASBs guidance, the Company takes into account whether two or more operating segments can be aggregated together as one reportable segment as well as the type of discrete financial information that is available and regularly reviewed by its chief operating decision maker. The Company has evaluated this guidance and determined that there are two reportable segments. The Company allocates certain corporate costs and its performance venue operating expenses to each of its reportable segments. Allocated venue operating expenses include the non-event related costs of operating the Companys venues, and include such costs as rent for the Companys leased venues, real estate taxes, insurance, utilities, repairs and maintenance, and labor related to the overall management of the venues. Depreciation and amortization expense related to The Garden , The Hulu Theater at Madison Square Garden, the Forum, and certain corporate property, equipment and leasehold improvements not allocated to the reportable segments is reported in  Corporate and Other . Additionally, the Company does not allocate any purchase accounting adjustments to the reporting segments. The Company evaluates segment performance based on several factors, of which the key financial measure is operating income (loss) before (i) depreciation, amortization and impairments of property and equipment and intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, and (iv) gains or losses on sales or dispositions of businesses, which is referred to as adjusted operating income (loss) , a non-GAAP measure. In addition to excluding the impact of the items discussed above, the impact of purchase accounting adjustments related to business acquisitions is also excluded in evaluating the Companys consolidated adjusted operating income (loss) . Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. Management believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of the Company's business without regard to the settlement of an obligation that is not expected to be made in cash. The Company believes adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of its business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze the Companys performance. The Company uses revenues and adjusted operating income (loss) measures as the most important indicators of its business performance, and evaluates managements effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. The Company has presented the components that reconcile operating income (loss), the most directly comparable GAAP financial measure, to adjusted operating income (loss) . In addition, the retrospective adoption of ASU No. 2017-07 resulted in an immaterial improvement in operating income (loss) and adjusted operating income (loss) for the three months ended September 30, 2017 . Information as to the operations of the Companys reportable segments is set forth below. Three Months Ended September 30, 2018 MSG Entertainment MSG Sports Corporate and Other Purchase accounting adjustments Inter-segment eliminations Total Revenues $ 162,953 $ 55,352 $  $  $ (170 ) $ 218,135 Direct operating expenses 107,785 15,319 21 954 (170 ) 123,909 Selling, general and administrative expenses (a) 48,969 42,217 24,076 59  115,321 Depreciation and amortization (b) 4,482 1,942 19,270 3,996  29,690 Operating income (loss) $ 1,717 $ (4,126 ) $ (43,367 ) $ (5,009 ) $  $ (50,785 ) Earnings in equity method investments 10,525 Interest income 7,174 Interest expense (4,033 ) Miscellaneous income (c) 3,767 Loss from operations before income taxes $ (33,352 ) Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ 1,717 $ (4,126 ) $ (43,367 ) $ (5,009 ) $  $ (50,785 ) Add back: Share-based compensation 2,841 2,772 4,576   10,189 Depreciation and amortization 4,482 1,942 19,270 3,996  29,690 Other purchase accounting adjustments    1,013  1,013 Adjusted operating income (loss) $ 9,040 $ 588 $ (19,521 ) $  $  $ (9,893 ) Other information: Capital expenditures (d) $ 8,299 $ 912 $ 32,804 $  $  $ 42,015 Three Months Ended September 30, 2017 MSG Entertainment MSG Sports Corporate and Other Purchase accounting adjustments Total Revenues $ 164,281 $ 80,934 $  $  $ 245,215 Direct operating expenses 105,564 16,728 21 1,167 123,480 Selling, general and administrative expenses (a) 44,391 41,976 19,293 24 105,684 Depreciation and amortization (b) 4,161 1,906 20,300 4,179 30,546 Operating income (loss) $ 10,165 $ 20,324 $ (39,614 ) $ (5,370 ) $ (14,495 ) Earnings in equity method investments 4,725 Interest income 4,386 Interest expense (3,711 ) Miscellaneous expense (c) (1,010 ) Loss from operations before income taxes $ (10,105 ) Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ 10,165 $ 20,324 $ (39,614 ) $ (5,370 ) $ (14,495 ) Add back: Share-based compensation 3,901 4,236 4,767  12,904 Depreciation and amortization 4,161 1,906 20,300 4,179 30,546 Other purchase accounting adjustments    1,191 1,191 Adjusted operating income (loss) $ 18,227 $ 26,466 $ (14,547 ) $  $ 30,146 Other information: Capital expenditures $ 7,706 $ 971 $ 10,862 $  $ 19,539 _________________ (a) Corporate and Other s selling, general and administrative expenses primarily consist of unallocated corporate general and administrative costs, including expenses associated with the Company's business development initiatives. (b) Corporate and Other principally includes depreciation and amortization of The Garden, The Hulu Theater at Madison Square Garden, the Forum, and certain corporate property, equipment and leasehold improvement assets not allocated to the Companys reportable segments. (c) Miscellaneous income for the three months ended September 30, 2018 includes $4,364 of unrealized gains in connection with the prospective adoption of ASU No. 2016-01 and $480 of dividend income for the Companys investment in Townsquare . The Company also recorded $1,077 and $1,010 of non-service cost components of net periodic pension and postretirement benefit cost , which are no longer presented as a component of operating expenses in connection with the retrospective adoption of ASU No. 2017-07 for the three months ended September 30, 2018 and 2017 , respectively. (d) Corporate and Other s capital expenditures for the three months ended September 30, 2018 are primarily related to the Companys new venues in Las Vegas and London. Substantially all revenues and assets of the Companys reportable segments are attributed to or located in the United States and are primarily concentrated in the New York metropolitan area. Supplemental Information  Adoption Impact of ASC Topic 606 by Reportable Segment The adoption of ASC Topic 606 has the following impacts on revenues, operating expenses and operating income (loss) for the three months ended September 30, 2018 : Three Months Ended September 30, 2018 MSG Entertainment MSG Sports Corporate and Other Purchase accounting adjustments Inter-segment eliminations Total As Reported under ASC Topic 606: Revenues $ 162,953 $ 55,352 $  $  $ (170 ) $ 218,135 Direct operating expenses 107,785 15,319 21 954 (170 ) 123,909 Selling, general and administrative expenses 48,969 42,217 24,076 59  115,321 Depreciation and amortization 4,482 1,942 19,270 3,996  29,690 Operating income (loss) $ 1,717 $ (4,126 ) $ (43,367 ) $ (5,009 ) $  $ (50,785 ) Changes due to the adoption of ASC Topic 606 (a) Revenues $ 5,019 $ 35,279 $  $  $  $ 40,298 Direct operating expenses 4,695 86    4,781 Selling, general and administrative expenses       Depreciation and amortization       Operating income $ 324 $ 35,193 $  $  $  $ 35,517 Amounts without the adoption of ASC Topic 606 Revenues $ 167,972 $ 90,631 $  $  $ (170 ) $ 258,433 Direct operating expenses 112,480 15,405 21 954 (170 ) 128,690 Selling, general and administrative expenses 48,969 42,217 24,076 59  115,321 Depreciation and amortization 4,482 1,942 19,270 3,996  29,690 Operating income (loss) $ 2,041 $ 31,067 $ (43,367 ) $ (5,009 ) $  $ (15,268 ) _________________ (a) Other than the changes to the operating income (loss) as shown above, the adoption of ASC Topic 606 did not impact other components of the reconciliation of operating income (loss) to adjusted operating income (loss), such as share-based compensation and purchase accounting adjustments. See Note 2 for additional information regarding the adoption of ASC Topic 606.