SEGMENT REPORTING

12 Months Ended

Dec. 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, home investors and other sellers and buyers 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 and sales and marketing costs not allocated to the business units. Intercompany transactions primarily consist of information technology infrastructure management services.

Financial information for our segments is as follows:

	For the year ended December 31, 2015
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	786,648	$	88,448	$	215,482		$	(39,112	)	$	1,051,466
Cost of revenue	474,169		60,806		187,835			(35,483		)	687,327
Gross profit (loss)	312,479		27,642		27,647			(3,629		)	364,139
Selling, general and administrative expenses	105,153		18,707		29,902			67,106			220,868
Impairment losses	—		—		71,785			—			71,785
Change in the fair value of Equator earn out liability	—		—		(7,591		)	—			(7,591		)
Income (loss) from operations	207,326		8,935		(66,449		)	(70,735		)	79,077
Other income (expense), net	506		58		61			(26,642		)	(26,017		)
Income (loss) before income taxes and non-controlling interests	$	207,832	$	8,993	$	(66,388	)	$	(97,377	)	$	53,060

	For the year ended December 31, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	793,143	$	98,499	$	227,300		$	(40,026	)	$	1,078,916
Cost of revenue	486,387		64,338		192,426			(35,971		)	707,180
Gross profit (loss)	306,756		34,161		34,874			(4,055		)	371,736
Selling, general and administrative expenses	94,686		18,791		32,393			55,863			201,733
Impairment losses	—		—		37,473			—			37,473
Change in the fair value of Equator earn out liability	—		—		(37,924		)	—			(37,924		)
Income (loss) from operations	212,070		15,370		2,932			(59,918		)	170,454
Other income (expense), net	204		62		(31		)	(23,424		)	(23,189		)
Income (loss) before income taxes and non-controlling interests	$	212,274	$	15,432	$	2,901		$	(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	$	599,319		$	92,958		$	100,724	$	(24,644	)	$	768,357
Cost of revenue	376,639			55,328			82,612		(22,099		)	492,480
Gross profit (loss)	222,680			37,630			18,112		(2,545		)	275,877
Selling, general and administrative expenses	46,522			15,571			12,435		39,282			113,810
Income (loss) from operations	176,158			22,059			5,677		(41,827		)	162,067
Other income (expense), net	(136		)	(10		)	7		(19,595		)	(19,734		)
Income (loss) before income taxes and non-controlling interests	$	176,022		$	22,049		$	5,684	$	(61,422	)	$	142,333

(in thousands)	Mortgage Services		Financial Services		Technology Services		Corporate Items and Eliminations		Consolidated Altisource
Total assets:
December 31, 2015	$	325,461	$	53,757	$	165,778	$	182,986	$	727,982
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)	December 31, 2015		December 31, 2014
United States	$	85,021	$	88,274
India	21,187		27,082
Luxembourg	9,944		9,059
Philippines	2,664		3,344
Uruguay	305		—
Total	$	119,121	$	127,759