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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 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 segment provides 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 June 30, 2016
(in thousands)
 
Mortgage
Services
 
Financial
Services
 
Technology
Services
 
Corporate
Items and
Eliminations
 
Consolidated
Altisource
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
208,561

 
$
19,758

 
$
38,100

 
$
(10,620
)
 
$
255,799

Cost of revenue
 
127,626

 
14,149

 
42,424

 
(9,828
)
 
174,371

Gross profit (loss)
 
80,935

 
5,609

 
(4,324
)
 
(792
)
 
81,428

Selling, general and administrative expenses
 
28,607

 
4,204

 
7,440

 
13,956

 
54,207

Income (loss) from operations
 
52,328

 
1,405

 
(11,764
)
 
(14,748
)
 
27,221

Total other income (expense), net
 
35

 
22

 
93

 
(3,394
)
 
(3,244
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
$
52,363

 
$
1,427

 
$
(11,671
)
 
$
(18,142
)
 
$
23,977

 
 
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

 
7,246

 
14,504

 
51,566

Change in the fair value of Equator Earn Out
 
—

 
—

 
(7,591
)
 
—

 
(7,591
)
Income (loss) from operations
 
59,423

 
3,264

 
8,914

 
(15,414
)
 
56,187

Total 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

 
 
Six months ended June 30, 2016
(in thousands)
 
Mortgage
Services
 
Financial
Services
 
Technology
Services
 
Corporate
Items and
Eliminations
 
Consolidated
Altisource
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
407,547

 
$
39,862

 
$
78,747

 
$
(20,225
)
 
$
505,931

Cost of revenue
 
249,144

 
28,407

 
84,317

 
(18,634
)
 
343,234

Gross profit (loss)
 
158,403

 
11,455

 
(5,570
)
 
(1,591
)
 
162,697

Selling, general and administrative expenses
 
55,576

 
8,513

 
13,998

 
29,736

 
107,823

Income (loss) from operations
 
102,827

 
2,942

 
(19,568
)
 
(31,327
)
 
54,874

Total other income (expense), net
 
49

 
35

 
100

 
(9,996
)
 
(9,812
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and non-controlling interests
 
$
102,876

 
$
2,977

 
$
(19,468
)
 
$
(41,323
)
 
$
45,062

 
 
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

 
14,561

 
34,319

 
103,972

Change in the fair value of Equator Earn Out
 
—

 
—

 
(7,591
)
 
—

 
(7,591
)
Income (loss) from operations
 
101,064

 
5,800

 
846

 
(36,273
)
 
71,437

Total 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

(in thousands)
 
Mortgage
Services
 
Financial
Services
 
Technology
Services
 
Corporate
Items and
Eliminations
 
Consolidated
Altisource
 
 
 
 
 
 
 
 
 
 
 
Total assets:
 
 

 
 

 
 

 
 

 
 

June 30, 2016
 
$
333,136

 
$
46,348

 
$
144,719

 
$
151,273

 
$
675,476

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)
 
June 30,
2016
 
December 31,
2015
 
 
 
 
 
United States
 
$
81,540

 
$
85,021

India
 
17,370

 
21,187

Luxembourg
 
12,650

 
9,944

Philippines
 
2,777

 
2,664

Uruguay
 
239

 
305

 
 
 
 
 
Total
 
$
114,576

 
$
119,121