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SEGMENT REPORTING
3 Months Ended
Mar. 31, 2017
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.
Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our chief operating decision maker manages our businesses, allocates resources and evaluates performance. We now report our operations through two new reportable segments: Mortgage Market and Real Estate Market. In addition, we report Other Businesses, Corporate and Eliminations separately. Prior to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services, Financial Services and Technology Services. The former Mortgage Services segment was separated into the Mortgage Market and Real Estate Market segments (as described below) with the software services formerly in the Technology Services segment and the mortgage charge-off collections business that was formerly in the Financial Services segment. Other Businesses, Corporate and Eliminations includes the other business that were formerly in the Financial Services segment as well as IT infrastructure management services formerly in the Technology Services segment. Prior year comparable period segment disclosures have been restated to conform to the current year presentation.
The Mortgage Market segment provides loan servicers and originators with services and a portfolio of software, data analytics and information technologies that span the mortgage lifecycle. The Real Estate Market segment provides rental property investors and real estate consumers with products and services that span the real estate lifecycle. In addition, the Other Businesses, Corporate and Eliminations segment includes businesses that provide collection services primarily to debt originators (e.g., credit card, auto lending and retail credit), customer relationship management services primarily to the utility, insurance and hotel industries and IT infrastructure management services. Other Businesses, Corporate and Eliminations also includes 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 as well as eliminations between the reportable segments.
Financial information for our segments is as follows:
 
 
Three months ended March 31, 2017
(in thousands)
 
Mortgage Market
 
Real Estate Market
 
Other Businesses, Corporate and Eliminations
 
Consolidated Altisource
 
 
 
 
 
 
 
 
 
Revenue
 
$
204,723

 
$
20,063

 
$
15,697

 
$
240,483

Cost of revenue
 
140,150

 
22,143

 
15,660

 
177,953

Gross profit (loss)
 
64,573

 
(2,080
)
 
37

 
62,530

Selling, general and administrative expenses
 
28,682

 
4,325

 
14,694

 
47,701

Income (loss) from operations
 
35,891

 
(6,405
)
 
(14,657
)
 
14,829

Total other income (expense), net
 
10

 

 
(5,093
)
 
(5,083
)
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
$
35,901

 
$
(6,405
)
 
$
(19,750
)
 
$
9,746

 
 
Three months ended March 31, 2016
(in thousands)
 
Mortgage Market
 
Real Estate Market
 
Other Businesses, Corporate and Eliminations
 
Consolidated Altisource
 
 
 
 
 
 
 
 
 
Revenue
 
$
203,401

 
$
23,909

 
$
22,822

 
$
250,132

Cost of revenue
 
134,043

 
14,458

 
20,362

 
168,863

Gross profit
 
69,358

 
9,451

 
2,460

 
81,269

Selling, general and administrative expenses
 
29,454

 
6,174

 
17,988

 
53,616

Income (loss) from operations
 
39,904

 
3,277

 
(15,528
)
 
27,653

Total other income (expense), net
 
60

 
(4
)
 
(6,624
)
 
(6,568
)
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
$
39,964

 
$
3,273

 
$
(22,152
)
 
$
21,085

(in thousands)
 
Mortgage Market
 
Real Estate Market
 
Other Businesses, Corporate and Eliminations
 
Consolidated Altisource
 
 
 
 
 
 
 
 
 
Total assets:
 
 

 
 

 
 

 
 

March 31, 2017
 
$
336,556

 
$
45,750

 
$
271,177

 
$
653,483

December 31, 2016
 
347,067

 
47,863

 
294,282

 
689,212


Our services are provided to customers primarily located in the United States. Premises and equipment, net consist of the following, by country:
(in thousands)
 
March 31,
2017
 
December 31,
2016
 
 
 
 
 
United States
 
$
64,638

 
$
71,418

India
 
12,225

 
14,006

Luxembourg
 
16,252

 
14,791

Philippines
 
2,692

 
3,027

Uruguay
 
216

 
231

 
 
 
 
 
Total
 
$
96,023

 
$
103,473