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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
SEGMENT REPORTING
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 (our Chief Operating Decision Maker) to evaluate operating performance and to assess the allocation of our resources.
We classify our businesses into three reportable segments. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies that span the mortgage and real estate lifecycle. 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, insurance and hotel industries. The Technology Services segment provides software and data analytics solutions that support the management of mortgage and real estate activities and marketplace transactions across the mortgage and real estate lifecycles and information technology infrastructure management services. In addition, Corporate Items and Eliminations include eliminations of transactions between the reportable segments, interest expense and costs related to corporate support functions including executive, finance, law, compliance, human resources, vendor management, risk management and sales and marketing costs not allocated to the business units. Intercompany transactions primarily consist of information technology infrastructure management services.
Financial information for our segments is as follows:
 
 
Three months ended September 30, 2016
(in thousands)
 
Mortgage Services
 
Financial Services
 
Technology Services
 
Corporate Items and Eliminations
 
Consolidated Altisource
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
204,696

 
$
17,599

 
$
41,544

 
$
(11,094
)
 
$
252,745

Cost of revenue
 
132,399

 
13,238

 
38,557

 
(10,192
)
 
174,002

Gross profit (loss)
 
72,297

 
4,361

 
2,987

 
(902
)
 
78,743

Selling, general and administrative expenses
 
27,543

 
4,002

 
6,115

 
16,226

 
53,886

Income (loss) from operations
 
44,754

 
359

 
(3,128
)
 
(17,128
)
 
24,857

Total other income (expense), net
 
8

 
28

 
1

 
(6,098
)
 
(6,061
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
$
44,762

 
$
387

 
$
(3,127
)
 
$
(23,226
)
 
$
18,796

 
 
Three months ended September 30, 2015
(in thousands)
 
Mortgage Services
 
Financial Services
 
Technology Services
 
Corporate Items and Eliminations
 
Consolidated Altisource
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
209,506

 
$
21,337

 
$
51,437

 
$
(9,504
)
 
$
272,776

Cost of revenue
 
122,724

 
15,418

 
44,419

 
(8,711
)
 
173,850

Gross profit (loss)
 
86,782

 
5,919

 
7,018

 
(793
)
 
98,926

Selling, general and administrative expenses
 
23,399

 
4,553

 
7,628

 
15,758

 
51,338

Income (loss) from operations
 
63,383

 
1,366

 
(610
)
 
(16,551
)
 
47,588

Total other income (expense), net
 
9

 
31

 
38

 
(6,466
)
 
(6,388
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
$
63,392

 
$
1,397

 
$
(572
)
 
$
(23,017
)
 
$
41,200

 
 
Nine months ended September 30, 2016
(in thousands)
 
Mortgage Services
 
Financial Services
 
Technology Services
 
Corporate Items and Eliminations
 
Consolidated Altisource
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
612,243

 
$
57,461

 
$
120,291

 
$
(31,319
)
 
$
758,676

Cost of revenue
 
381,543

 
41,645

 
122,874

 
(28,826
)
 
517,236

Gross profit (loss)
 
230,700

 
15,816

 
(2,583
)
 
(2,493
)
 
241,440

Selling, general and administrative expenses
 
83,119

 
12,515

 
20,113

 
45,962

 
161,709

Income (loss) from operations
 
147,581

 
3,301

 
(22,696
)
 
(48,455
)
 
79,731

Total other income (expense), net
 
57

 
63

 
101

 
(16,094
)
 
(15,873
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
$
147,638

 
$
3,364

 
$
(22,595
)
 
$
(64,549
)
 
$
63,858

 
 
Nine months ended September 30, 2015
(in thousands)
 
Mortgage Services
 
Financial Services
 
Technology Services
 
Corporate Items and Eliminations
 
Consolidated Altisource
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
583,873

 
$
67,080

 
$
159,399

 
$
(28,773
)
 
$
781,579

Cost of revenue
 
350,238

 
46,058

 
144,565

 
(26,026
)
 
514,835

Gross profit (loss)
 
233,635

 
21,022

 
14,834

 
(2,747
)
 
266,744

Selling, general and administrative expenses
 
69,188

 
13,856

 
22,189

 
50,077

 
155,310

Change in the fair value of Equator Earn Out
 
—

 
—

 
(7,591
)
 
—

 
(7,591
)
Income (loss) from operations
 
164,447

 
7,166

 
236

 
(52,824
)
 
119,025

Total other income (expense), net
 
28

 
21

 
21

 
(21,843
)
 
(21,773
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
$
164,475

 
$
7,187

 
$
257

 
$
(74,667
)
 
$
97,252

(in thousands)
 
Mortgage Services
 
Financial Services
 
Technology Services
 
Corporate Items and Eliminations
 
Consolidated Altisource
 
 
 
 
 
 
 
 
 
 
 
Total assets:
 
 

 
 

 
 

 
 

 
 

September 30, 2016
 
$
315,384

 
$
44,652

 
$
141,846

 
$
191,450

 
$
693,332

December 31, 2015
 
325,461

 
53,757

 
151,969

 
190,611

 
721,798


Our services are provided to customers primarily located in the United States. Premises and equipment, net consist of the following, by country:
(in thousands)
 
September 30,
2016
 
December 31,
2015
 
 
 
 
 
United States
 
$
76,683

 
$
85,021

India
 
15,705

 
21,187

Luxembourg
 
14,372

 
9,944

Philippines
 
2,776

 
2,664

Uruguay
 
249

 
305

 
 
 
 
 
Total
 
$
109,785

 
$
119,121