SEGMENT REPORTING

3 Months Ended

Mar. 31, 2015

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 segmentprovides a portfolio of software, data analytics and infrastructure management services that support the efficient and compliant management of mortgage and real estate activities and marketplace transactions across the lifecycle. 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. Intercompany transactions primarily consist of information technology infrastructure services.

Financial information for our segments is as follows:

	Three months ended March 31, 2015
(in thousands)	Mortgage Services			Financial Services			Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	177,006		$	22,354		$	51,970		$	(10,848	)	$	240,482
Cost of revenue	114,804			15,103			52,723			(9,804		)	172,826
Gross profit (loss)	62,202			7,251			(753		)	(1,044		)	67,656
Selling, general and administrative expenses	20,561			4,715			7,315			19,815			52,406
Income (loss) from operations	41,641			2,536			(8,068		)	(20,859		)	15,250
Other income (expense), net	(4		)	(12		)	1			(10,427		)	(10,442		)
Income (loss) before income taxes and non-controlling interests	$	41,637		$	2,524		$	(8,067	)	$	(31,286	)	$	4,808

	Three months ended March 31, 2014
(in thousands)	Mortgage Services		Financial Services			Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	176,430	$	24,285		$	46,850		$	(8,296	)	$	239,269
Cost of revenue	103,237		14,613			37,332			(7,377		)	147,805
Gross profit (loss)	73,193		9,672			9,518			(919		)	91,464
Selling, general and administrative expenses	19,174		4,663			6,614			13,083			43,534
Income (loss) from operations	54,019		5,009			2,904			(14,002		)	47,930
Other income (expense), net	48		(1		)	(16		)	(4,760		)	(4,729		)
Income (loss) before income taxes and non-controlling interests	$	54,067	$	5,008		$	2,888		$	(18,762	)	$	43,201

(in thousands)	Mortgage Services		Financial Services		Technology Services		Corporate Items and Eliminations		Consolidated Altisource
Total assets:
March 31, 2015	$	299,647	$	54,365	$	238,580	$	168,089	$	760,681
December 31, 2014	313,550		56,096		250,059		168,516		788,221

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, 2015		December 31, 2014
United States	$	86,043	$	88,274
India	25,952		27,082
Luxembourg	11,430		9,059
Philippines	3,096		3,344
Total	$	126,521	$	127,759