SEGMENT REPORTING

12 Months Ended

Dec. 31, 2014

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 services that span the mortgage and real estate lifecycle and are typically outsourced by loan servicers, loan originators, investors and other sellers of 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, insurance and hotel industries. The Technology Services segmentprincipally consists of our REALSuite software applications, Equator’s software applications, Mortgage Builder’s software applications and 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 and foreclosure related activities and purchase related services from vendors. Mortgage Builder provides mortgage origination and servicing software applications. 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, legal, compliance, human resources, vendor management, risk and operational effectiveness and marketing.

Financial information for our segments is as follows:

	For the year ended December 31, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	790,076	$	98,499	$	230,367		$	(40,026	)	$	1,078,916
Cost of revenue	484,512		64,338		194,301			(35,971		)	707,180
Gross profit	305,564		34,161		36,066			(4,055		)	371,736
Selling, general and administrative expenses	94,678		18,791		31,950			55,863			201,282
Income from operations	210,886		15,370		4,116			(59,918		)	170,454
Other income (expense), net	204		62		(31		)	(23,424		)	(23,189		)
Income before income taxes and non-controlling interests	$	211,090	$	15,432	$	4,085		$	(83,342	)	$	147,265

	For the year ended December 31, 2013
(in thousands)	Mortgage Services			Financial Services			Technology Services		Corporate Items and Eliminations			Consolidated 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
(in thousands)	Mortgage Services			Financial Services			Technology Services			Corporate Items and Eliminations			Consolidated 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

(in thousands)	Mortgage Services		Financial Services		Technology Services		Corporate Items and Eliminations		Consolidated Altisource
Total assets:
December 31, 2014	$	313,206	$	56,096	$	250,403	$	168,516	$	788,221
December 31, 2013	310,253		55,930		277,941		85,928		730,052

Our services are provided to customers primarily located in the United States.  Premises and equipment, net consist of the following, by country:

(in thousands)	December 31, 2014		December 31, 2013
United States	$	88,274	$	63,615
India	27,082		16,404
Luxembourg	9,059		3,217
Philippines	3,344		4,016
Total	$	127,759	$	87,252