SEGMENT REPORTING

12 Months Ended

Dec. 31, 2013

SEGMENT REPORTING

SEGMENT REPORTING

22.  SEGMENT REPORTING

Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer to evaluate operating performance and to assess the allocation of our resources.

We classify our business into three reportable segments. The Mortgage Services segment provides services that span the mortgage and real estate lifecycle and are typically outsourced by loan servicers, loan originators and investors in single family homes. The Financial Services segment provides collection and customer relationship management services primarily to debt originators and servicers (e.g., credit card, auto lending, retail credit and mortgage) and the utility and insurance industries. The Technology Services segment principally consists of our REALSuite software applications, Equator’s software applications as well as our information technology infrastructure services.  The REALSuite platform provides a fully integrated set of software applications and technologies that manage the end-to-end lifecycle for residential and commercial mortgage loan servicing including the automated management and payment of a distributed network of vendors. Equator’s software applications provide comprehensive, end-to-end workflow and transaction services to manage real estate related activities and purchase related services from vendors.  In addition, Corporate Items and Eliminations includes eliminations of transactions between the reporting segments and costs related to corporate support functions including executive, finance, legal, human resources, vendor management, risk and operational effectiveness.

Financial information for our segments is as follows:

	For the year ended December 31, 2013
									Corporate
	Mortgage			Financial			Technology		Items and			Consolidated
(in thousands)	Services			Services			Services		Eliminations			Altisource
Revenue	$	596,152		$	92,958		$	103,891	$	(24,644	)	$	768,357
Cost of revenue	374,713			55,328			84,538		(22,099		)	492,480
Gross profit	221,439			37,630			19,353		(2,545		)	275,877
Selling, general and administrative expenses	46,515			15,571			12,442		39,282			113,810
Income from operations	174,924			22,059			6,911		(41,827		)	162,067
Other income (expense), net	(136		)	(10		)	7		(19,595		)	(19,734		)
Income before income taxes and non-controlling interests	$	174,788		$	22,049		$	6,918	$	(61,422	)	$	142,333

	For the year ended December 31, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource
Revenue	$	452,796		$	64,522		$	74,189		$	(23,147	)	$	568,360
Cost of revenue	285,586			46,737			54,634			(20,756		)	366,201
Gross profit	167,210			17,785			19,555			(2,391		)	202,159
Selling, general and administrative expenses	25,099			13,415			8,888			27,310			74,712
Income from operations	142,111			4,370			10,667			(29,701		)	127,447
Other income (expense), net	(1,713		)	(27		)	(25		)	(1,033		)	(2,798		)
Income before income taxes and non-controlling interests	$	140,398		$	4,343		$	10,642		$	(30,734	)	$	124,649

	For the year ended December 31, 2011
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource
Revenue	$	311,921	$	71,181		$	56,094		$	(15,509	)	$	423,687
Cost of revenue	202,035		51,096			36,874			(14,156		)	275,849
Gross profit	109,886		20,085			19,220			(1,353		)	147,838
Selling, general and administrative expenses	15,278		15,634			4,867			26,352			62,131
Income from operations	94,608		4,451			14,353			(27,705		)	85,707
Other income (expense), net	248		(34		)	(49		)	38			203
Income before income taxes and non-controlling interests	$	94,856	$	4,417		$	14,304		$	(27,667	)	$	85,910

Our services are provided to customers primarily located in the United States.

							Corporate
	Mortgage		Financial		Technology		Items and		Consolidated
(in thousands)	Services		Services		Services		Eliminations		Altisource
Total assets:
December 31, 2013	$	308,214	$	55,930	$	274,766	$	85,928	$	724,838
December 31, 2012	132,924		37,782		64,570		193,950		429,226

	Premises & equipment, net
Country	(in thousands)
United States	$	63,615
India	16,404
Luxembourg	3,217
Philippines	4,016
Total	$	87,252