SEGMENT REPORTING

3 Months Ended

Mar. 31, 2016

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 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:

	Three months ended March 31, 2016
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	198,986	$	20,104	$	40,647		$	(9,605	)	$	250,132
Cost of revenue	121,518		14,258		41,893			(8,806		)	168,863
Gross profit (loss)	77,468		5,846		(1,246		)	(799		)	81,269
Selling, general and administrative expenses	26,969		4,309		6,558			15,780			53,616
Income (loss) from operations	50,499		1,537		(7,804		)	(16,579		)	27,653
Other income (expense), net	14		13		7			(6,602		)	(6,568		)
Income (loss) before income taxes and non-controlling interests	$	50,513	$	1,550	$	(7,797	)	$	(23,181	)	$	21,085

	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

(in thousands)	Mortgage Services		Financial Services		Technology Services		Corporate Items and Eliminations		Consolidated Altisource
Total assets:
March 31, 2016	$	307,913	$	48,492	$	206,167	$	153,022	$	715,594
December 31, 2015	325,461		53,757		165,778		176,802		721,798

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, 2016		December 31, 2015
United States	$	84,107	$	85,021
India	19,287		21,187
Luxembourg	10,842		9,944
Philippines	2,424		2,664
Uruguay	277		305
Total	$	116,937	$	119,121