SEGMENT REPORTING

9 Months Ended

Sep. 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, home 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 information technology 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 management services.

Financial information for our segments is as follows:

	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
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

	Three months ended September 30, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services		Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	210,747	$	26,852	$	60,925	$	(10,836	)	$	287,688
Cost of revenue	129,312		17,123		52,087		(9,798		)	188,724
Gross profit (loss)	81,435		9,729		8,838		(1,038		)	98,964
Selling, general and administrative expenses	20,643		4,767		7,241		14,097			46,748
Income (loss) from operations	60,792		4,962		1,597		(15,135		)	52,216
Other income (expense), net	18		13		25		(6,405		)	(6,349		)
Income (loss) before income taxes and non-controlling interests	$	60,810	$	4,975	$	1,622	$	(21,540	)	$	45,867

	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		14,598		50,077			147,719
Income (loss) from operations	164,447		7,166		236		(52,824		)	119,025
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

	Nine months ended September 30, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	609,394	$	76,613	$	164,885		$	(27,863	)	$	823,029
Cost of revenue	361,960		47,794		135,833			(25,059		)	520,528
Gross profit (loss)	247,434		28,819		29,052			(2,804		)	302,501
Selling, general and administrative expenses	63,319		14,203		21,358			40,423			139,303
Income (loss) from operations	184,115		14,616		7,694			(43,227		)	163,198
Other income (expense), net	146		24		(97		)	(15,978		)	(15,905		)
Income (loss) before income taxes and non-controlling interests	$	184,261	$	14,640	$	7,597		$	(59,205	)	$	147,293

(in thousands)	Mortgage Services		Financial Services		Technology Services		Corporate Items and Eliminations		Consolidated Altisource
Total assets:
September 30, 2015	$	326,210	$	52,425	$	229,847	$	178,571	$	787,053
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)	September 30, 2015		December 31, 2014
United States	$	91,014	$	88,274
India	23,208		27,082
Luxembourg	5,539		9,059
Philippines	2,655		3,344
Total	$	122,416	$	127,759