SEGMENT REPORTING

6 Months Ended

Jun. 30, 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, law, compliance, human resources, vendor management, risk, sales and marketing. Intercompany transactions primarily consist of information technology infrastructure services.

Financial information for our segments is as follows:

	Three months ended June 30, 2015
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	197,361	$	23,389	$	55,992		$	(8,421	)	$	268,321
Cost of revenue	112,710		15,537		47,423			(7,511		)	168,159
Gross profit (loss)	84,651		7,852		8,569			(910		)	100,162
Selling, general and administrative expenses	25,228		4,588		(345		)	14,504			43,975
Income (loss) from operations	59,423		3,264		8,914			(15,414		)	56,187
Other income (expense), net	23		2		(18		)	(4,950		)	(4,943		)
Income (loss) before income taxes and non-controlling interests	$	59,446	$	3,266	$	8,896		$	(20,364	)	$	51,244

	Three months ended June 30, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	222,216	$	25,476	$	57,111		$	(8,731	)	$	296,072
Cost of revenue	129,411		16,058		46,414			(7,884		)	183,999
Gross profit (loss)	92,805		9,418		10,697			(847		)	112,073
Selling, general and administrative expenses	23,503		4,773		7,502			13,243			49,021
Income (loss) from operations	69,302		4,645		3,195			(14,090		)	63,052
Other income (expense), net	80		12		(106		)	(4,813		)	(4,827		)
Income (loss) before income taxes and non-controlling interests	$	69,382	$	4,657	$	3,089		$	(18,903	)	$	58,225

	Six months ended June 30, 2015
(in thousands)	Mortgage Services		Financial Services			Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	374,367	$	45,743		$	107,962		$	(19,269	)	$	508,803
Cost of revenue	227,514		30,640			100,146			(17,315		)	340,985
Gross profit (loss)	146,853		15,103			7,816			(1,954		)	167,818
Selling, general and administrative expenses	45,789		9,303			6,970			34,319			96,381
Income (loss) from operations	101,064		5,800			846			(36,273		)	71,437
Other income (expense), net	19		(10		)	(17		)	(15,377		)	(15,385		)
Income (loss) before income taxes and non-controlling interests	$	101,083	$	5,790		$	829		$	(51,650	)	$	56,052

	Six months ended June 30, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	398,647	$	49,761	$	103,960		$	(17,027	)	$	535,341
Cost of revenue	232,648		30,671		83,746			(15,261		)	331,804
Gross profit (loss)	165,999		19,090		20,214			(1,766		)	203,537
Selling, general and administrative expenses	42,676		9,436		14,117			26,326			92,555
Income (loss) from operations	123,323		9,654		6,097			(28,092		)	110,982
Other income (expense), net	128		11		(122		)	(9,573		)	(9,556		)
Income (loss) before income taxes and non-controlling interests	$	123,451	$	9,665	$	5,975		$	(37,665	)	$	101,426

(in thousands)	Mortgage Services		Financial Services		Technology Services		Corporate Items and Eliminations		Consolidated Altisource
Total assets:
June 30, 2015	$	277,759	$	53,286	$	244,978	$	159,985	$	736,008
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)	June 30, 2015		December 31, 2014
United States	$	88,273	$	88,274
India	24,756		27,082
Luxembourg	10,753		9,059
Philippines	2,855		3,344
Total	$	126,637	$	127,759