Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 05, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-34354 | ||
Entity Registrant Name | ALTISOURCE PORTFOLIO SOLUTIONS S.A. | ||
Entity Incorporation, State or Country Code | N4 | ||
Entity Tax Identification Number | 98-0554932 | ||
Entity Address, Address Line One | 40, avenue Monterey | ||
Entity Address, Postal Zip Code | L-2163 | ||
Entity Address, City or Town | Luxembourg | ||
Entity Address, Country | LU | ||
City Area Code | 352 | ||
Local Phone Number | 27 61 49 00 | ||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Trading Symbol | ASPS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 168,425,446 | ||
Entity Common Stock, Shares Outstanding | 15,746,525 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement to be filed subsequent to the date hereof with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s Annual Meeting of Shareholders to be held on May 18, 2021 are incorporated by reference into Part III of this report. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the conclusion of the registrant’s fiscal year ended December 31, 2020. | ||
Entity Central Index Key | 0001462418 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 58,263 | $ 82,741 |
Accounts receivable, net | 22,413 | 43,615 |
Prepaid expenses and other current assets | 19,479 | 15,214 |
Investment in equity securities | 0 | 42,618 |
Total current assets | 100,155 | 184,188 |
Premises and equipment, net | 11,894 | 24,526 |
Right-of-use assets under operating leases | 18,213 | 29,074 |
Goodwill | 73,849 | 73,849 |
Intangible assets, net | 46,326 | 61,046 |
Deferred tax assets, net | 5,398 | 10,763 |
Other assets | 9,850 | 10,810 |
Total assets | 265,685 | 394,256 |
Current liabilities: | ||
Accounts payable and accrued expenses | 56,779 | 67,671 |
Deferred revenue | 5,461 | 5,183 |
Other current liabilities | 9,305 | 14,724 |
Total current liabilities | 71,545 | 87,578 |
Long-term debt | 242,656 | 287,882 |
Deferred tax liabilities, net | 8,801 | 9,137 |
Other non-current liabilities | 25,239 | 31,016 |
Commitments, contingencies and regulatory matters (Note 25) | ||
Equity (deficit): | ||
Common stock ($1.00 par value; 100,000 shares authorized, 25,413 issued and 15,664 outstanding as of December 31, 2020; 15,454 outstanding as of December 31, 2019) | 25,413 | 25,413 |
Additional paid-in capital | 141,473 | 133,669 |
Retained Earnings (Accumulated Deficit) | 190,383 | 272,026 |
Treasury stock, at cost (9,749 shares as of December 31, 2020 and 9,959 shares as of December 31, 2019) | (441,034) | (453,934) |
Altisource deficit | (83,765) | (22,826) |
Non-controlling interests | 1,209 | 1,469 |
Total deficit | (82,556) | (21,357) |
Total liabilities and deficit | $ 265,685 | $ 394,256 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 25,413,000 | 25,413,000 |
Common stock, shares outstanding (in shares) | 15,664,000 | 15,454,000 |
Treasury stock, shares (in shares) | 9,749,000 | 9,959,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 365,547 | $ 648,651 | $ 838,202 |
Cost of revenue | 305,194 | 493,256 | 622,165 |
Gross profit | 60,353 | 155,395 | 216,037 |
Selling, general and administrative expenses | 92,736 | 141,076 | 175,670 |
Gain on sale of businesses | 0 | (17,814) | (13,688) |
Restructuring charges | 11,972 | 14,080 | 11,560 |
(Loss) income from operations | (44,355) | 18,053 | 42,495 |
Other income (expense), net: | |||
Interest expense | (17,730) | (21,393) | (26,254) |
Unrealized gain (loss) on investment in equity securities | 4,004 | 14,431 | (12,972) |
Other income (expense), net | 375 | 1,348 | (1,870) |
Total other income (expense), net | (13,351) | (5,614) | (41,096) |
(Loss) income before income taxes and non-controlling interests | (57,706) | 12,439 | 1,399 |
Income tax provision | (8,609) | (318,296) | (4,098) |
Net loss | (66,315) | (305,857) | (2,699) |
Net income attributable to non-controlling interests | (841) | (2,112) | (2,683) |
Net loss attributable to Altisource | $ (67,156) | $ (307,969) | $ (5,382) |
Loss per share: | |||
Basic (in dollars per share) | $ (4.31) | $ (19.26) | $ (0.32) |
Diluted (in dollars per share) | $ (4.31) | $ (19.26) | $ (0.32) |
Weighted average shares outstanding: | |||
Basic (in shares) | 15,598 | 15,991 | 17,073 |
Diluted (in shares) | 15,598 | 15,991 | 17,073 |
Other comprehensive loss, net of tax: | |||
Reclassification of unrealized gain on investment in equity securities, net of income tax provision of $200, to retained earnings from the cumulative effect of an accounting change | $ 0 | $ 0 | $ (733) |
Comprehensive loss, net of tax | (66,315) | (305,857) | (3,432) |
Comprehensive income attributable to non-controlling interests | (841) | (2,112) | (2,683) |
Comprehensive loss attributable to Altisource | $ (67,156) | $ (307,969) | $ (6,115) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Statement [Abstract] | |
Reclassification of unrealized gain on investment in equity securities, income tax provision, to retained earnings from the cumulative effect of an accounting change | $ 200 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Additional paid-in capital | Additional paid-in capitalCumulative Effect, Period of Adoption, Adjustment | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Cumulative Effect, Period of Adoption, Adjustment | Treasury stock, at cost | Non-controlling interests |
Balance at Dec. 31, 2017 | $ 339,985 | $ (10,448) | $ 25,413 | $ 112,475 | $ 0 | $ 626,600 | $ (9,715) | $ 733 | $ (733) | $ (426,609) | $ 1,373 |
Balance (in shares) at Dec. 31, 2017 | 25,413 | ||||||||||
Increase (Decrease) in Equity | |||||||||||
Net loss | (2,699) | (5,382) | 2,683 | ||||||||
Distributions to non-controlling interest holders | (2,819) | (2,819) | |||||||||
Share-based compensation expense | $ 10,192 | 10,192 | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | ||||||||||
Exercise of stock options and issuance of restricted shares | $ 3,644 | (19,245) | 22,889 | ||||||||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances and stock option exercises | (825) | (1,603) | 778 | ||||||||
Repurchase of shares | (40,362) | (40,362) | |||||||||
Balance at Dec. 31, 2018 | 296,668 | $ 25,413 | 122,667 | 590,655 | 0 | (443,304) | 1,237 | ||||
Balance (in shares) at Dec. 31, 2018 | 25,413 | ||||||||||
Increase (Decrease) in Equity | |||||||||||
Net loss | (305,857) | (307,969) | 2,112 | ||||||||
Distributions to non-controlling interest holders | (2,752) | (2,752) | |||||||||
Share-based compensation expense | 11,874 | 11,002 | 872 | ||||||||
Exercise of stock options and issuance of restricted shares | 400 | (7,222) | 7,622 | ||||||||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances and stock option exercises | (1,695) | (3,438) | 1,743 | ||||||||
Repurchase of shares | (19,995) | (19,995) | |||||||||
Balance at Dec. 31, 2019 | (21,357) | $ 25,413 | 133,669 | 272,026 | 0 | (453,934) | 1,469 | ||||
Balance (in shares) at Dec. 31, 2019 | 25,413 | ||||||||||
Increase (Decrease) in Equity | |||||||||||
Net loss | (66,315) | (67,156) | 841 | ||||||||
Distributions to non-controlling interest holders | (1,101) | (1,101) | |||||||||
Share-based compensation expense | 7,804 | 7,804 | |||||||||
Exercise of stock options and issuance of restricted shares | 0 | (9,548) | 9,548 | ||||||||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances and stock option exercises | (1,587) | (4,939) | 3,352 | ||||||||
Balance at Dec. 31, 2020 | $ (82,556) | $ 25,413 | $ 141,473 | $ 190,383 | $ 0 | $ (441,034) | $ 1,209 | ||||
Balance (in shares) at Dec. 31, 2020 | 25,413 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net loss | $ (66,315,000) | $ (305,857,000) | $ (2,699,000) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 14,890,000 | 18,509,000 | 30,799,000 |
Amortization of right-of-use assets under operating leases | 10,245,000 | 11,769,000 | 0 |
Amortization of intangible assets | 14,720,000 | 19,021,000 | 28,412,000 |
Unrealized (gain) loss on investment in equity securities | (4,004,000) | (14,431,000) | 12,972,000 |
Goodwill and intangible assets write-off from business exits | 0 | 5,900,000 | 2,640,000 |
Share-based compensation expense | 7,804,000 | 11,874,000 | 10,192,000 |
Bad debt expense | 2,229,000 | 720,000 | 2,830,000 |
Amortization of debt discount | 666,000 | 666,000 | 717,000 |
Amortization of debt issuance costs | 730,000 | 736,000 | 965,000 |
Deferred income taxes | 5,033,000 | 307,339,000 | (5,791,000) |
Loss on disposal of fixed assets | 461,000 | 750,000 | 727,000 |
Gain on sale of businesses | 0 | (17,814,000) | (13,688,000) |
Loss on debt refinancing | 0 | 0 | 4,434,000 |
Changes in operating assets and liabilities (excludes effect of sale of businesses): | |||
Accounts receivable | 14,973,000 | (12,207,000) | 14,556,000 |
Short-term investments in real estate | 0 | 39,873,000 | (10,468,000) |
Prepaid expenses and other current assets | (4,140,000) | 13,628,000 | 4,617,000 |
Other assets | 947,000 | (132,000) | 2,278,000 |
Accounts payable and accrued expenses | (10,338,000) | (16,257,000) | 1,651,000 |
Current and non-current operating lease liabilities | (10,599,000) | (12,738,000) | |
Other current and non-current liabilities | 297,000 | (4,661,000) | (16,742,000) |
Net cash (used in) provided by operating activities | (22,401,000) | 46,688,000 | 68,402,000 |
Cash flows from investing activities: | |||
Additions to premises and equipment | (2,705,000) | (2,161,000) | (3,916,000) |
Proceeds received from sale of equity securities | 46,622,000 | 7,994,000 | 0 |
Proceeds from the sale of businesses | 3,307,000 | 38,632,000 | 15,000,000 |
Other investing activities | 0 | 422,000 | 0 |
Net cash provided by investing activities | 47,224,000 | 44,887,000 | 11,084,000 |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 0 | 0 | 407,880,000 |
Repayments and repurchases of long-term debt | (46,622,000) | (44,996,000) | (486,759,000) |
Debt issuance costs | 0 | 0 | (5,042,000) |
Proceeds from stock option exercises | 0 | 400,000 | 3,644,000 |
Purchase of treasury shares | 0 | (19,995,000) | (40,362,000) |
Distributions to non-controlling interests | (1,101,000) | (2,752,000) | (2,819,000) |
Payments of tax withholding on issuance of restricted share units and restricted shares | (1,587,000) | (1,695,000) | (825,000) |
Net cash used in financing activities | (49,310,000) | (69,038,000) | (124,283,000) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (24,487,000) | 22,537,000 | (44,797,000) |
Cash, cash equivalents and restricted cash at the beginning of the period | 86,583,000 | 64,046,000 | 108,843,000 |
Cash, cash equivalents and restricted cash at the end of the period | 62,096,000 | 86,583,000 | 64,046,000 |
Supplemental cash flow information: | |||
Interest paid | 15,697,000 | 20,856,000 | 24,123,000 |
Income taxes paid, net | 2,061,000 | 2,688,000 | 7,136,000 |
Acquisition of right-of-use assets with operating lease liabilities | 1,075,000 | 13,775,000 | |
Reduction of right-of-use assets from operating lease modifications or reassessments | (1,691,000) | (5,844,000) | |
Non-cash investing and financing activities: | |||
Net increase (decrease) in payables for purchases of premises and equipment | $ 139,000 | $ (101,000) | $ (32,000) |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Description of Business Altisource Portfolio Solutions S.A., together with its subsidiaries (which may be referred to as “Altisource,” the “Company,” “we,” “us” or “our”), is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. The Company operates with one reportable segment (total Company). |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Presentation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Intercompany transactions and accounts have been eliminated in consolidation. Principles of Consolidation The financial statements include the accounts of the Company, its wholly-owned subsidiaries and those entities in which we have a variable interest and are the primary beneficiary. Altisource consolidates Best Partners Mortgage Cooperative, Inc., which is managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource. Best Partners Mortgage Cooperative, Inc. is a mortgage cooperative doing business as Lenders One ® (“Lenders One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025 (with renewals for three successive five-year periods at MPA’s option). The management agreement between MPA and Lenders One, pursuant to which MPA is the management company, represents a variable interest in a variable interest entity. MPA is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact the cooperative’s economic performance and the right to receive benefits from the cooperative. As a result, Lenders One is presented in the accompanying consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests. As of December 31, 2020, Lenders One had total assets of $2.3 million and total liabilities of $0.1 million. As of December 31, 2019, Lenders One had total assets of $1.6 million and total liabilities of $0.3 million. In 2019, Altisource created Pointillist, Inc. (“Pointillist”) and contributed the Pointillist ® customer journey analytics business and $8.5 million to it. Pointillist is owned by Altisource and management of Pointillist. Management of Pointillist owns a non-controlling interest representing 12.1% of the outstanding equity of Pointillist. Additional equity shares of Pointillist are available for issuance to management and board members of Pointillist. Altisource has no ongoing obligation to provide future funding to Pointillist. Pointillist is presented in the accompanying consolidated financial statements on a consolidated basis and the portion of Pointillist owned by Pointillist management is reported as non-controlling interests. Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, determining share-based compensation, income taxes, collectability of receivables, valuation of acquired intangibles and goodwill, depreciable lives and valuation of fixed assets and contingencies. Actual results could differ materially from those estimates. Cash and Cash Equivalents We classify all highly liquid instruments with an original maturity of three months or less at the time of purchase as cash equivalents. Accounts Receivable, Net Accounts receivable are presented net of an allowance for expected credit losses. We monitor and estimate the allowance for credit losses based on our historical write-offs, historical collections, our analysis of past due accounts based on the contractual terms of the receivables, relevant market and industry reports and our assessment of the economic status of our customers, if known. The carrying value of accounts receivable, net, approximates fair value. Premises and Equipment, Net We report premises and equipment, net at cost or estimated fair value at acquisition for premises and equipment recorded in connection with a business combination and depreciate these assets over their estimated useful lives using the straight-line method as follows: Furniture and fixtures 5 years Office equipment 5 years Computer hardware 3-5 years Computer software 3-7 years Leasehold improvements Shorter of useful life, 10 years or the term of the lease Maintenance and repair costs are expensed as incurred. We capitalize expenditures for significant improvements and new equipment and depreciate the assets over the shorter of the capitalized asset’s life or the life of the lease. We review premises and equipment for impairment following events or changes in circumstances that indicate the carrying amount of an asset or asset group may not be recoverable. We measure recoverability of assets to be held and used by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, we recognize an impairment charge for the amount that the carrying value of the asset or asset group exceeds the fair value of the asset or asset group. Computer software includes the fair value of software acquired in business combinations, capitalized software development costs and purchased software. Capitalized software development and purchased software are recorded at cost and amortized using the straight-line method over their estimated useful lives. Software acquired in business combinations is recorded at fair value and amortized using the straight-line method over its estimated useful life. Business Combinations We account for acquisitions using the purchase method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations . The purchase price of an acquisition is allocated to the assets acquired and liabilities assumed using their fair value as of the acquisition date. Goodwill Goodwill represents the excess cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. We evaluate goodwill for impairment annually during the fourth quarter or more frequently when an event occurs or circumstances change in a manner that indicates the carrying value may not be recoverable. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether we need to perform the quantitative goodwill impairment test. Only if we determine, based on qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying value will we calculate the fair value of the reporting unit. We would then test goodwill for impairment by comparing the fair value of the reporting unit with its carrying amount. If the fair value is determined to be less than its carrying amount, we recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We estimate the fair value of the reporting unit using discounted cash flows and market comparisons. The discounted cash flow method is based on the present value of projected cash flows. Forecasts of future cash flows are based on our estimate of future sales and operating expenses, based primarily on estimated pricing, sales volumes, market segment share, cost trends and general economic conditions. The estimated cash flows are discounted using a rate that represents our weighted average cost of capital. The market comparisons include an analysis of revenue and earnings multiples of guideline public companies compared to the Company. Intangible Assets, Net Identified intangible assets consist primarily of customer related intangible assets, operating agreements, trademarks and trade names and other intangible assets. Identifiable intangible assets acquired in business combinations are recorded based on their fair values at the date of acquisition. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any arrangements, the history of the asset, our long-term strategy for use of the asset and other economic factors. We amortize intangible assets that we deem to have definite lives in proportion to actual and expected customer revenues or on a straight-line basis over their useful lives, generally ranging from 4 to 20 years. We perform tests for impairment if conditions exist that indicate the carrying value may not be recoverable. When facts and circumstances indicate that the carrying value of intangible assets determined to have definite lives may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of cash flows of discrete intangible assets generally consistent with models utilized for internal planning purposes. If the sum of the undiscounted expected future cash flows is less than the carrying value, we recognize an impairment to the extent the carrying amount exceeds fair value. Long-Term Debt Long-term debt is reported net of applicable discount or premium and net of debt issuance costs. The debt discount or premium and debt issuance costs are amortized to interest expense through maturity of the related debt using the effective interest method. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets and liabilities Level 2 — Observable inputs other than quoted prices included in Level 1 Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. Financial assets and financial liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. Functional Currency The currency of the primary economic environment in which our operations are conducted is the United States dollar. Therefore, the United States dollar has been determined to be our functional and reporting currency. Non-United States dollar transactions and balances have been measured in United States dollars in accordance with ASC Topic 830, Foreign Currency Matters . All transaction gains and losses from the measurement of monetary balance sheet items denominated in non-United States dollar currencies are reflected in the consolidated statements of operations and comprehensive loss as income or expenses, as appropriate. Defined Contribution 401(k) Plan Some of our employees currently participate in a defined contribution 401(k) plan under which we may make matching contributions equal to a discretionary percentage determined by us. We recorded expenses of $0.6 million, $0.9 million and $1.2 million for the years ended December 31, 2020, 2019 and 2018, respectively, related to our discretionary contributions. Revenue Recognition We recognize revenue when we satisfy a performance obligation by transferring control of a product or service to a customer in an amount that reflects the consideration that we expect to receive. This revenue can be recognized at a point in time or over time. We invoice customers based on our contractual arrangements with each customer, which may not be consistent with the period that revenues are recognized. When there is a timing difference between when we invoice customers and when revenues are recognized, we record either a contract asset (unbilled accounts receivable) or a contract liability (deferred revenue or other current liabilities), as appropriate. Descriptions of our principal revenue generating activities are as follows: Core Businesses Field Services • For property preservation and inspection services and payment management technologies, we recognize transactional revenue when the service is provided. • For vendor management transactions and our vendor management oversight software-as-a-service (“SaaS”) platform, we recognize revenue over the period during which we perform the services. • Reimbursable expenses revenue related to our property preservation and inspection services is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationships are with us, rather than with our customers. Marketplace • For the real estate auction platform, real estate auction and real estate brokerage services, we recognize revenue on a net basis (i.e., the commission on the sale) as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage or amount. • For SaaS based technology to manage real estate owned (“REO”), short sales, foreclosure, bankruptcy and eviction processes, we recognize revenue over the estimated average number of months the REO are on the platform. We generally recognize revenue for professional services over the contract period. • Reimbursable expenses revenue related to our real estate sales is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationships are with us, rather than with our customers. Mortgage and Real Estate Solutions • For the majority of the services we provide, we recognize transactional revenue when the service is provided. • For loan disbursement processing services, we recognize revenue over the period during which we perform the processing services with full recognition upon completion of the disbursements. For foreclosure trustee services, we recognize revenue over the period during which we perform the related services, with full recognition upon completion and/or recording the related foreclosure deed. We use judgment to determine the period over which we recognize revenue for certain of these services. • Reimbursable expenses revenue related to our title and foreclosure trustee services businesses is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationships are with us, rather than with our customers. Other Businesses Earlier Stage Business • For our customer journey analytics platform, we recognize revenue primarily based on subscription fees. We recognize revenue associated with implementation services and maintenance services ratably over the contract term. Other • For our Financial Services business (sold on July 1, 2019, see Note 4), we generally earned fees for our post-charge-off consumer debt collection services as a percentage of the amount we collected on delinquent consumer receivables and recognized revenue following collection from the borrowers. For mortgage charge-off collections performed on behalf of our clients, we recognized revenue as a percentage of amounts collected following collection from the borrowers. We provided customer relationship management services for which we typically earned and recognized revenue on a per-person, per-call or per-minute basis as the related services were performed. • For loan servicing technologies, we recognized revenue based on the number of loans on the system. We generally recognized revenue from professional services over the contract period. • For short-term investments in real estate (wind down completed in 2019, see Note 8), we recognized revenue associated with our sales of short-term investments in real estate on a gross basis (i.e., the selling price of the property) as we assumed the risks and rewards of ownership of the asset. • For our consumer real estate brokerage (discontinued in the fourth quarter of 2019, see Note 8), we recognized revenue on a net basis (i.e., the commission on the sale) as we performed services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale was a fixed percentage or amount. Share-Based Compensation Share-based compensation is accounted for under the provisions of ASC Topic 718, Compensation - Stock Compensation (“ASC Topic 718”). Under ASC Topic 718, the cost of services received in exchange for an award of equity instruments is generally measured based on the grant date fair value of the award. Share-based awards that do not require future service are expensed immediately. Share-based awards that require future service are recognized over the relevant service period. The Company has made an accounting policy election to account for forfeitures in compensation expense as they occur. Income Taxes We record income taxes in accordance with ASC Topic 740, Income Taxes (“ASC Topic 740”). We account for certain income and expense items differently for financial reporting purposes and income tax purposes. We recognize deferred income tax assets and liabilities for these differences between the financial reporting basis and the tax basis of our assets and liabilities as well as expected benefits of utilizing net operating loss and credit carryforwards. The most significant temporary differences relate to accrued compensation, amortization, loss carryforwards and valuation allowances. We measure deferred income tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we anticipate recovery or settlement of those temporary differences. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions including evaluating uncertainties under ASC Topic 740. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on our results of operations. Earnings Per Share We compute earnings per share in accordance with ASC Topic 260, Earnings Per Share . Basic net income per share is computed by dividing net income attributable to Altisource by the weighted average number of shares of common stock outstanding for the period. Diluted net income per share reflects the assumed conversion of all dilutive securities using the treasury stock method. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This standard simplified the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Prior guidance required that companies compute the implied fair value of goodwill under Step 2 by performing procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. This updated standard requires companies to perform annual or interim goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted this standard effective January 1, 2020 and has applied it prospectively. Adoption of this new standard did not have any impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This standard modified certain disclosure requirements such as the valuation processes for Level 3 fair value measurements. This standard also requires new disclosures such as the disclosure of certain assumptions used to develop significant unobservable inputs for Level 3 fair value measurements. The Company adopted this standard effective January 1, 2020 and has applied it prospectively. Adoption of this new standard did not have any impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) . This standard aligns the requirements for capitalizing implementation costs in a hosting arrangement service contract with the existing guidance for capitalizing implementation costs incurred for an internal-use software license. This standard also requires capitalizing or expensing implementation costs based on the nature of the costs and the project stage during which they are incurred and establishes additional disclosure requirements. The Company adopted this standard effective January 1, 2020 and has applied it prospectively. Adoption of this new standard did not have any impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses ( Topic 326 ): Measurement of Credit Losses on Financial Instruments . This ASU and its related amendments (collectively, the "Credit Loss Standard") introduced the current expected credit losses (“CECL”) methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The CECL model applies to financial assets measured at amortized cost, including trade and other receivables, net, investments in leases, loans receivable held-to-maturity securities and off-balance sheet exposures. The Credit Loss Standard requires consideration of a broader range of information to estimate expected credit losses, including historical information and current conditions through a reasonable forecast period. The Credit Loss Standard requires that the income statement reflect the measurement of credit losses for newly recognized financial assets as well as the expected increase or decrease of expected credit losses that have taken place during the period, which may result in earlier recognition of certain losses. The Company adopted this standard effective January 1, 2020 utilizing a modified retrospective approach, which did not have any impact on the Company’s consolidated financial statements (See Note 6). Future Adoption of New Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is part of the FASB’s initiative to reduce complexity in accounting standards by instituting several simplifying provisions and removing several exceptions pertaining to income tax accounting. This standard will be effective for annual periods beginning after December 15, 2020, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope . This standard applies only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. This standard provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR. This standard is effective from the period from March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a topic or an industry subtopic, the standard must be applied prospectively for all eligible contract modifications for that topic or industry subtopic. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. |
CUSTOMER CONCENTRATION
CUSTOMER CONCENTRATION | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER CONCENTRATION | CUSTOMER CONCENTRATION Ocwen Ocwen Financial Corporation (together with its subsidiaries, “Ocwen”) is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of MSRs owned by others. During the year ended December 31, 2020, Ocwen was our largest customer, accounting for 54% of our total revenue. Ocwen purchases certain mortgage services from us under the terms of services agreements and amendments thereto (collectively, the “Ocwen Services Agreements”) with terms extending through August 2025. Certain of the Ocwen Services Agreements contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing, among other things. Revenue from Ocwen primarily consists of revenue earned from the loan portfolios serviced and subserviced by Ocwen when Ocwen engages us as the service provider, and revenue earned directly from Ocwen, pursuant to the Ocwen Services Agreements. For the years ended December 31, 2020, 2019 and 2018, we recognized revenue from Ocwen of $197.8 million, $362.7 million and $437.4 million, respectively. Revenue from Ocwen as a percentage of consolidated revenue was 54%, 56% and 52% for the years ended December 31, 2020, 2019 and 2018, respectively. We earn additional revenue related to the portfolios serviced and subserviced by Ocwen when a party other than Ocwen or the MSR owner selects Altisource as the service provider. For the years ended December 31, 2020, 2019 and 2018, we recognized revenue of $23.8 million, $37.5 million and $47.1 million, respectively, related to the portfolios serviced by Ocwen when a party other than Ocwen or the MSR owner selected Altisource as the service provider. These amounts are not included in deriving revenue from Ocwen and revenue from Ocwen as a percentage of revenue discussed above. In February 2019, Altisource and Ocwen entered into agreements that, among other things, facilitated Ocwen’s transition from REALServicing ® and related technologies to another mortgage servicing software platform, establish a process for Ocwen to review and approve the assignment of one or more of our agreements to potential buyers of Altisource’s business lines, requiring Ocwen to use Altisource as service provider for certain service referrals totaling an amount equal to 100% of the applicable service referrals on certain portfolios plus an amount equal to not less than 90% of applicable service referrals from certain other portfolios (determined on a service by service basis), subject to certain additional restrictions and limitations, and affirm Altisource’s role as a strategic service provider to Ocwen through August 2025. In connection with these agreements, Altisource expressly preserved and did not waive any of its existing contractual rights relating to service referrals, other than with respect to Ocwen transitioning from the REALServicing and related technologies. If Altisource fails certain performance standards for specified periods of time, then Ocwen may terminate Altisource as a provider for the applicable service(s), subject to certain limitations and Altisource’s right to cure. Ocwen’s transition to another mortgage servicing platform was completed during 2019. During the second quarter of 2020, Ocwen informed us that an MSR investor instructed Ocwen to use a field services provider other than Altisource on properties associated with certain MSRs. Based upon the impacted portfolios to date and the designated service provider, Altisource believes that Ocwen received these directions from New Residential Investment Corp. (individually, together with one or more of its subsidiaries or one or more of its subsidiaries individually, “NRZ”). We believe Ocwen commenced using another field services provider for these properties in July 2020 and continued to transition services during the third quarter of 2020. We believe that the transition to the replacement field service provider was largely completed as of September 30, 2020. We estimate that $70.1 million, $150.2 million and $171.0 million of service revenue from Ocwen for the years ended December 31, 2020, 2019 and 2018, respectively, was derived from Field Services referrals from the NRZ portfolios. Ocwen also communicated to Altisource in the fourth quarter of 2020 that the same investor instructed Ocwen to use a provider for default valuations and certain default title services other than Altisource on properties associated with such certain MSRs and commenced moving these referrals to other service providers in the fourth quarter of 2020. We anticipate that the transition of such default valuations and title services will continue during the course of 2021. We estimate that $18.2 million, $33.2 million and $40.1 million of service revenue from Ocwen for the years ended December 31, 2020, 2019 and 2018, respectively, was derived from default valuations and title services referrals from the NRZ portfolios. Altisource believes that any action taken by Ocwen to redirect these service referrals breaches Altisource's agreement with Ocwen. We are currently in discussions with Ocwen to address this matter, and have reserved all of our rights with respect to this matter. To address the reduction in revenue, Altisource is undertaking several measures to further reduce its cost structure and strengthen its operations. As of December 31, 2020, accounts receivable from Ocwen totaled $5.9 million, $5.1 million of which was billed and $0.8 million of which was unbilled. As of December 31, 2019, accounts receivable from Ocwen totaled $19.1 million, $15.7 million of which was billed and $3.4 million of which was unbilled. NRZ NRZ is a real estate investment trust that invests in and manages investments primarily related to residential real estate, including MSRs and excess MSRs. Ocwen has disclosed that NRZ is its largest client. As of December 31, 2020, NRZ MSRs or rights to MSRs relating to approximately 36% of loans serviced and subserviced by Ocwen (measured in unpaid principal balance (“UPB”)). In July 2017 and January 2018, Ocwen and NRZ entered into a series of agreements pursuant to which the parties agreed, among other things, to undertake certain actions to facilitate the transfer from Ocwen to NRZ of Ocwen’s legal title to certain of its MSRs (the “Subject MSRs”) and under which Ocwen will subservice mortgage loans underlying the MSRs for an initial term of five years, subject to early termination rights. On August 28, 2017, Altisource, through its licensed subsidiaries, entered into a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Brokerage Agreement”) with NRZ which extends through August 2025. Under this agreement and related amendments, Altisource remains the exclusive provider of brokerage services for REO associated with the Subject MSRs, irrespective of the subservicer, subject to certain limitations. NRZ’s brokerage subsidiary receives a cooperative brokerage commission on the sale of REO properties from these portfolios subject to certain exceptions. The Brokerage Agreement may be terminated by NRZ upon the occurrence of certain specified events. Termination events include, but are not limited to, a breach of the terms of the Brokerage Agreement (including, without limitation, the failure to meet performance standards and non-compliance with law in a material respect), the failure to maintain licenses which failure materially prevents performance of the contract, regulatory allegations of non-compliance resulting in an adversarial proceeding against NRZ, voluntary or involuntary bankruptcy, appointment of a receiver, disclosure in a Form 10-K or Form 10-Q that there is significant uncertainty about Altisource’s ability to continue as a going concern, failure to maintain a specified level of cash and an unapproved change of control. |
SALE OF BUSINESS
SALE OF BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SALE OF BUSINESS | SALE OF BUSINESSES Financial Services Business On July 1, 2019, Altisource sold its Financial Services business, consisting of its post-charge-off consumer debt and mortgage charge-off collection services and customer relationship management services (the “Financial Services Business”) to Transworld Systems Inc. (“TSI”) for $44.0 million consisting of an up-front payment of $40.0 million, subject to a working capital adjustment (finalized during 2019) and transaction costs upon closing of the sale, and an additional $4.0 million payment on the one year anniversary of the sale closing. In connection with the sale, we recognized a $17.8 million pretax gain on sale for the year ended December 31, 2019. On July 1, 2020, the Company received net proceeds of $3.3 million representing TSI’s final installment payment less certain amounts owed to TSI. The parties also entered into a transition services agreement to provide for the management and orderly transition of certain services and technologies to TSI for periods ranging from 2 months to 13 months, subject to additional 3 month extensions. These services included support for information technology systems and infrastructure, facilities management, finance, compliance and human resources functions and were charged to TSI on a fixed fee or hourly basis. As of December 31, 2020 , all of the transition services and technologies have been fully transitioned to TSI. Rental Property Management Business In August 2018, Altisource entered into an amendment to its agreements with Front Yard Residential Corporation (“RESI”) to sell Altisource’s rental property management business to RESI and permit RESI to internalize certain services that had been provided by Altisource. The proceeds from the transaction totaled $18.0 million, payable in two installments. The first installment of $15.0 million was received on the closing date of August 8, 2018. The second installment of $3.0 million is to be received on the earlier of a RESI change of control or on August 8, 2023. On October 19, 2020, RESI announced that it had entered into a definitive merger agreement to sell RESI. The merger closed on January 11, 2021 and the Company subsequently received the $3.0 million payment. The present value of the second installment is included in other assets in the accompanying consolidated balance sheets at a discounted value of $2.5 million and $2.4 million as of December 31, 2020 and 2019, respectively. Owners.com In October 2019, the Company announced its plans to wind down and close the Owners.com business, which was completed by December 31, 2019. Owners.com was a technology-enabled real estate brokerage and provider of related mortgage brokerage and title services. Owners.com was not material in relation to the Company’s results of operations or financial position. In connection with the wind down of Owners.com, the Company wrote off $5.2 million of goodwill and $0.7 million of intangible assets (see Note 11). In addition, wind down expenses were included in the Project Catalyst restructuring charges (see Note 24). Buy-Renovate-Lease-Sell On November 26, 2018, the Company announced its plans to sell its short-term investments in real estate (“BRS Inventory”) and discontinue the Company’s Buy-Renovate-Lease-Sell (“BRS”) business. Altisource’s BRS business focused on buying, renovating, leasing and selling single-family homes to real estate investors. The BRS business was not material in relation to the Company’s results of operations or financial position. The Company completed the sale of the BRS Inventory during the year ended December 31, 2019. |
INVESTMENT IN EQUITY SECURITIES
INVESTMENT IN EQUITY SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT IN EQUITY SECURITIES | INVESTMENT IN EQUITY SECURITIES During 2016, we purchased 4.1 million shares of RESI common stock. This investment is reflected in the accompanying consolidated balance sheets at fair value and changes in fair value are included in other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss. As of December 31, 2019, we held 3.5 million shares of RESI common stock (no comparative amount as of December 31, 2020). As of December 31, 2019 and 2018, the fair value of our investment was $42.6 million and $36.2 million, respectively (no comparative amount as of December 31, 2020). During the years ended December 31, 2020, 2019 and 2018, we recognized an unrealized gain (loss) from the change in fair value of $4.0 million, $14.4 million and $(13.0) million, respectively, in the consolidated statements of operations and comprehensive loss. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , that required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This standard was effective for the Company on January 1, 2018. The adoption of this standard resulted in a cumulative effect adjustment to increase retained earnings and decrease accumulated other comprehensive income by $0.7 million, net of income tax provision, on January 1, 2018. The unrealized gain for years ended December 31, 2020 and 2019 included $4.1 million and $2.0 million of net gains recognized on RESI shares sold during the period, respectively (no comparative amount for the year ended December 31, 2018). During the years ended December 31, 2020, 2019 and 2018, we earned dividends of $0.5 million, $1.7 million and $2.5 million, respectively, related to this investment. During the year ended December 31, 2020, the Company sold all of its remaining 3.5 million shares for net proceeds of $46.6 million. During the year ended December 31, 2019, the Company sold 0.7 million shares for net proceeds of $8.0 million. As required by our senior secured term loan agreement, the Company used the net proceeds to repay a portion of its senior secured term loan. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | ACCOUNTS RECEIVABLE, NET Accounts receivable, net consists of the following as of December 31: (in thousands) 2020 2019 Billed $ 19,703 $ 35,921 Unbilled 8,291 12,166 27,994 48,087 Less: Allowance for credit losses (5,581) (4,472) Total $ 22,413 $ 43,615 Unbilled accounts receivable consist primarily of certain real estate asset management, REO sales, title and closing services for which we generally recognize revenue when the service is provided but collect upon closing of the sale, and foreclosure trustee services, for which we generally recognize revenues over the service delivery period but bill following completion of the service. We also include amounts in unbilled accounts receivable that are earned during a month and billed in the following month. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU and its related amendments (collectively, the "Credit Loss Standard") introduced the current expected credit losses (“CECL”) methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The CECL model applies to financial assets measured at amortized cost, including trade and other receivables, net, investments in leases, loans receivable held-to-maturity securities and off-balance sheet exposures. The Credit Loss Standard requires consideration of a broader range of information to estimate expected credit losses, including historical information and current conditions through a reasonable forecast period. The Credit Loss Standard requires that the income statement reflect the measurement of credit losses for newly recognized financial assets as well as the expected increase or decrease of expected credit losses that have taken place during the period, which may result in earlier recognition of certain losses. The Company adopted this standard effective January 1, 2020 utilizing a modified retrospective approach, which did not have any impact on the Company’s consolidated financial statements. We are exposed to credit losses through our sales of products and services to our customers which are recorded as Accounts Receivable, net on the Company’s consolidated financial statements. We monitor and estimate the allowance for credit losses based on our historical write-offs, historical collections, our analysis of past due accounts based on the contractual terms of the receivables, relevant market and industry reports and our assessment of the economic status of our customers, if known. Estimated credit losses are written off in the period in which the financial asset is no longer collectible. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to our allowance for credit losses. Prior to January 1, 2020, our allowance for credit losses represents an amount that we estimate to be uncollectible. Bad debt expense amounted to $2.2 million, $0.7 million and $2.8 million for the years ended December 31, 2020, 2019 and 2018, respectively, and is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following as of December 31: (in thousands) 2020 2019 Maintenance agreements, current portion $ 2,513 $ 1,923 Income taxes receivable 7,053 5,098 Prepaid expenses 4,812 3,924 Other current assets 5,101 4,269 Total $ 19,479 $ 15,214 |
DISCONTINUATION OF LINES OF BUS
DISCONTINUATION OF LINES OF BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUATION OF LINES OF BUSINESS | SALE OF BUSINESSES Financial Services Business On July 1, 2019, Altisource sold its Financial Services business, consisting of its post-charge-off consumer debt and mortgage charge-off collection services and customer relationship management services (the “Financial Services Business”) to Transworld Systems Inc. (“TSI”) for $44.0 million consisting of an up-front payment of $40.0 million, subject to a working capital adjustment (finalized during 2019) and transaction costs upon closing of the sale, and an additional $4.0 million payment on the one year anniversary of the sale closing. In connection with the sale, we recognized a $17.8 million pretax gain on sale for the year ended December 31, 2019. On July 1, 2020, the Company received net proceeds of $3.3 million representing TSI’s final installment payment less certain amounts owed to TSI. The parties also entered into a transition services agreement to provide for the management and orderly transition of certain services and technologies to TSI for periods ranging from 2 months to 13 months, subject to additional 3 month extensions. These services included support for information technology systems and infrastructure, facilities management, finance, compliance and human resources functions and were charged to TSI on a fixed fee or hourly basis. As of December 31, 2020 , all of the transition services and technologies have been fully transitioned to TSI. Rental Property Management Business In August 2018, Altisource entered into an amendment to its agreements with Front Yard Residential Corporation (“RESI”) to sell Altisource’s rental property management business to RESI and permit RESI to internalize certain services that had been provided by Altisource. The proceeds from the transaction totaled $18.0 million, payable in two installments. The first installment of $15.0 million was received on the closing date of August 8, 2018. The second installment of $3.0 million is to be received on the earlier of a RESI change of control or on August 8, 2023. On October 19, 2020, RESI announced that it had entered into a definitive merger agreement to sell RESI. The merger closed on January 11, 2021 and the Company subsequently received the $3.0 million payment. The present value of the second installment is included in other assets in the accompanying consolidated balance sheets at a discounted value of $2.5 million and $2.4 million as of December 31, 2020 and 2019, respectively. Owners.com In October 2019, the Company announced its plans to wind down and close the Owners.com business, which was completed by December 31, 2019. Owners.com was a technology-enabled real estate brokerage and provider of related mortgage brokerage and title services. Owners.com was not material in relation to the Company’s results of operations or financial position. In connection with the wind down of Owners.com, the Company wrote off $5.2 million of goodwill and $0.7 million of intangible assets (see Note 11). In addition, wind down expenses were included in the Project Catalyst restructuring charges (see Note 24). Buy-Renovate-Lease-Sell On November 26, 2018, the Company announced its plans to sell its short-term investments in real estate (“BRS Inventory”) and discontinue the Company’s Buy-Renovate-Lease-Sell (“BRS”) business. Altisource’s BRS business focused on buying, renovating, leasing and selling single-family homes to real estate investors. The BRS business was not material in relation to the Company’s results of operations or financial position. The Company completed the sale of the BRS Inventory during the year ended December 31, 2019. |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT, NET | PREMISES AND EQUIPMENT, NET Premises and equipment, net consists of the following as of December 31: (in thousands) 2020 2019 Computer hardware and software $ 52,837 $ 144,608 Leasehold improvements 14,792 23,800 Furniture and fixtures 5,882 8,775 Office equipment and other 1,817 4,004 75,328 181,187 Less: Accumulated depreciation and amortization (63,434) (156,661) Total $ 11,894 $ 24,526 Depreciation and amortization expense amounted to $14.9 million, $18.5 million and $30.8 million for the years ended December 31, 2020, 2019 and 2018, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the consolidated statements of operations and comprehensive loss. Premises and equipment, net consist of the following, by country, as of December 31: (in thousands) 2020 2019 United States $ 5,530 $ 13,426 Luxembourg 5,451 10,295 India 822 671 Uruguay 91 39 Philippines — 95 Total $ 11,894 $ 24,526 |
RIGHT-OF-USE ASSETS UNDER OPERA
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET | RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET Right-of-use assets under operating leases, net consists of the following as of December 31: (in thousands) 2020 2019 Right-of-use assets under operating leases $ 31,932 $ 39,729 Less: Accumulated amortization (13,719) (10,655) Total $ 18,213 $ 29,074 Amortization of operating leases was $10.2 million and $11.8 million for the years ended December 31, 2020 and 2019, respectively (no comparative amount for the year ended December 31, 2018), and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the consolidated statements of operations and comprehensive loss. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill Changes in goodwill during the years ended December 31, 2020 and 2019 are summarized below: (in thousands) Total Balance as of January 1, 2019 $ 81,387 Disposition (1) (2,378) Write-off (2) (5,160) Balance as of December 31, 2020 and 2019 $ 73,849 ______________________________________ (1) During 2019, the Company sold the Financial Services Business (see Note 4) which had $2.4 million of goodwill attributed to it. (2) During 2019, we recorded a $5.2 million write-off of goodwill attributable to the Owners.com business, as a result of our decision to wind down and close the business (see Note 8). Intangible Assets, Net Intangible assets, net consist of the following as of December 31: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) 2020 2019 2020 2019 2020 2019 Definite lived intangible assets: Customer related intangible assets 9 $ 214,973 $ 214,973 $ (187,923) $ (176,043) $ 27,050 $ 38,930 Operating agreement 20 35,000 35,000 (19,126) (17,376) 15,874 17,624 Trademarks and trade names 16 9,709 9,709 (6,307) (5,893) 3,402 3,816 Non-compete agreements 4 1,230 1,230 (1,230) (1,215) — 15 Intellectual property — — 300 — (175) — 125 Other intangible assets 5 1,800 3,745 (1,800) (3,209) — 536 Total $ 262,712 $ 264,957 $ (216,386) $ (203,911) $ 46,326 $ 61,046 Amortization expense for definite lived intangible assets was $14.7 million, $19.0 million and $28.4 million for the years ended December 31, 2020, 2019 and 2018, respectively . Expected annual definite lived intangible asset amortization expense for 2021 through 2025 is $9.5 million, $5.1 million, $5.1 million, $5.1 million and $5.1 million, respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consist of the following as of December 31: (in thousands) 2020 2019 Security deposits $ 2,416 $ 3,473 Restricted cash 3,833 3,842 Other 3,601 3,495 Total $ 9,850 $ 10,810 |
ACCOUNTS PAYABLE, ACCRUED EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accounts payable and accrued expenses consist of the following as of December 31: (in thousands) 2020 2019 Accounts payable $ 16,797 $ 22,431 Accrued expenses - general 24,422 24,558 Accrued salaries and benefits 11,226 18,982 Income taxes payable 4,334 1,700 Total $ 56,779 $ 67,671 Other current liabilities consist of the following as of December 31: (in thousands) 2020 2019 Operating lease liabilities $ 7,609 $ 11,398 Other 1,696 3,326 Total $ 9,305 $ 14,724 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of the following as of December 31: (in thousands) 2020 2019 Senior secured term loans $ 247,204 $ 293,826 Less: Debt issuance costs, net (2,389) (3,119) Less: Unamortized discount, net (2,159) (2,825) Long-term debt $ 242,656 $ 287,882 Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l. entered into a credit agreement (the “Credit Agreement”) in April 2018 with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders. Under the Credit Agreement, Altisource borrowed $412.0 million in the form of Term B Loans and obtained a $15.0 million revolving credit facility. The Term B Loans mature in April 2024 and the revolving credit facility matures in April 2023. Altisource Portfolio Solutions S.A. and certain subsidiaries are guarantors of the term loan and the revolving credit facility (collectively, the “Guarantors”). Proceeds from the Term B Loans were used to repay the Company’s prior senior secured term loan, which had an outstanding balance of $412.1 million as of April 3, 2018. In connection with the refinancing, we recognized a loss of $4.4 million from the write-off of unamortized debt issuance costs and debt discount in the second quarter of 2018. This loss was included in other income (expense), net in the consolidated statements of operations and comprehensive loss. There are no mandatory repayments of the Term B Loans due until April 2024, when the balance is due at maturity. During 2020 and 2019, the Company sold 3.5 million and 0.7 million, respectively, RESI shares for net proceeds of $46.6 million and $8.0 million, respectively, and used the net proceeds to repay a portion of the senior secured term loan (see Note 5). Also during 2019, the Company used net proceeds of $37.0 million from the sale of the Financial Services Business (see Note 4) to repay a portion of the senior secured term loan. In addition, the Company repaid $49.9 million of the Term B Loans in the fourth quarter of 2018 from proceeds from the sale certain of the BRS Inventory received during December 2018 and in anticipation of receiving additional proceeds during the first half of 2019 (see Note 8). Also during 2018, the Company used the proceeds received from the sale of the rental property management business (see Note 4) to repay $15.0 million of the Term B Loans. These repayments were applied to contractual amortization payments in the direct order of maturity. All amounts outstanding under the Term B Loans will become due on the earlier of (i) April 3, 2024, and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders (as defined in the Credit Agreement; other capitalized terms, unless defined herein, are defined in the Credit Agreement) or as otherwise provided in the Credit Agreement upon the occurrence of any event of default. In addition to the scheduled principal payments, subject to certain exceptions, the Term B Loans are subject to mandatory prepayment upon issuances of debt, certain casualty and condemnation events and sales of assets, as well as from a percentage of Consolidated Excess Cash Flow if our leverage ratio as of each year-end computation date is greater than 3.00 to 1.00, as calculated in accordance with the provisions of the Credit Agreement (the percentage increases if our leverage ratio exceeds 3.50 to 1.00). Our leverage ratio exceeded 3.50 to 1.00 during the year ended December 31, 2020. However, because the Company did not generate any Consolidated Excess Cash Flow in 2020, no amounts are due under this provision. Altisource may incur incremental indebtedness under the Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate incremental principal amount not to exceed $125.0 million, subject to certain conditions set forth in the Credit Agreement, including a sublimit of $80.0 million with respect to incremental revolving credit commitments and, after giving effect to the incremental borrowing, the Company’s leverage ratio does not exceed 3.00 to 1.00. Our leverage ratio exceeded 3.00 to 1.00 during the year ended December 31, 2020. The lenders have no obligation to provide any incremental indebtedness. The Term B Loans bear interest at rates based upon, at our option, the Adjusted Eurodollar Rate or the Base Rate. Adjusted Eurodollar Rate term loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Adjusted Eurodollar Rate for a three month interest period and (y) 1.00% plus (ii) 4.00%. Base Rate term loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Base Rate and (y) 2.00% plus (ii) 3.00%. The interest rate as of December 31, 2020 was 5.00%. Loans under the revolving credit facility bear interest at rates based upon, at our option, the Adjusted Eurodollar Rate or the Base Rate. Adjusted Eurodollar Rate revolving loans bear interest at a rate per annum equal to the sum of (i) the Adjusted Eurodollar Rate for a three month interest period plus (ii) 4.00%. Base Rate revolving loans bear interest at a rate per annum equal to the sum of (i) the Base Rate plus (ii) 3.00%. The unused commitment fee is 0.50%. Borrowings under the revolving credit facility are not permitted if our leverage ratio exceeds 3.50 to 1.00. Our leverage ratio exceeded 3.50 to 1.00 during the year ended December 31, 2020. There were no borrowings outstanding under the revolving credit facility as of December 31, 2020. The payment of all amounts owing by Altisource under the Credit Agreement is guaranteed by the Guarantors and is secured by a pledge of all equity interests of certain subsidiaries of Altisource, as well as a lien on substantially all of the assets of Altisource S.à r.l. and the Guarantors, subject to certain exceptions. The Credit Agreement includes covenants that restrict or limit, among other things, our ability, subject to certain exceptions and baskets, to incur indebtedness; incur liens on our assets; sell, transfer or dispose of assets; make Restricted Junior Payments including share repurchases, dividends and repayment of junior indebtedness; make investments; dispose of equity interests of any Material Subsidiaries; engage in a line of business substantially different than existing businesses and businesses reasonably related, complimentary or ancillary thereto; amend material debt agreements or other material contracts; engage in certain transactions with affiliates; enter into sale/leaseback transactions; grant negative pledges or agree to such other restrictions relating to subsidiary dividends and distributions; make changes to our fiscal year; and engage in mergers and consolidations; and to the extent any Revolving Credit Loans are outstanding on the last day of a fiscal quarter, permit the Total Leverage Ratio to be greater than 3.50:1.00 as of the last day of such fiscal quarter, subject to a customary cure provision (the “Revolving Financial Covenant”). The Credit Agreement contains certain events of default including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the Credit Agreement within five days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of certain other covenants, subject to cure periods described in the Credit Agreement, (iv) a breach of the Revolving Financial Covenant, subject to a customary cure provision and not an Event of Default with respect to the Term Loans unless and until the Required Revolving Lenders accelerate the Revolving Credit Loans, (v) failure to pay principal or interest on any other debt that equals or exceeds $40.0 million when due, (vi) default on any other debt that equals or exceeds $40.0 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vii) occurrence of a Change of Control, (viii) bankruptcy and insolvency events, (ix) entry by a court of one or more judgments against us in an amount in excess of $40.0 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (x) the occurrence of certain ERISA events and (xi) the failure of certain Loan Documents to be in full force and effect. If any event of default occurs and is not cured within applicable grace periods set forth in the Credit Agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated. As of December 31, 2020, debt issuance costs were $2.4 million, net of $2.2 million of accumulated amortization. As of December 31, 2019, debt issuance costs were $3.1 million, net of $1.4 million of accumulated amortization. Interest expense on the senior secured term loans, including amortization of debt issuance costs and the net debt discount, totaled $17.7 million, $21.4 million and $26.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. Maturities of our long-term debt are as follows: (in thousands) Maturities 2021 $ — 2022 — 2023 — 2024 247,204 $ 247,204 |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of the following as of December 31: (in thousands) 2020 2019 Operating lease liabilities $ 12,281 $ 19,707 Income tax liabilities 12,414 10,935 Deferred revenue 504 88 Other non-current liabilities 40 286 Total $ 25,239 $ 31,016 |
FAIR VALUE MEASUREMENTS AND FIN
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The following table presents the carrying amount and estimated fair value of financial instruments and certain liabilities measured at fair value as of December 31, 2020 and 2019. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: December 31, 2020 December 31, 2019 (in thousands) Carrying amount Fair value Carrying amount Fair value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 58,263 $ 58,263 $ — $ — $ 82,741 $ 82,741 $ — $ — Restricted cash 3,833 3,833 — — 3,842 3,842 — — Investment in equity securities — — — — 42,618 42,618 — — Long-term receivable 2,531 — — 2,531 2,371 — — 2,371 Liabilities: Senior secured term loan 247,204 — 201,472 — 293,826 — 277,666 — Fair Value Measurements on a Recurring Basis Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair values due to the highly liquid nature of these instruments and were measured using Level 1 inputs. Investment in equity securities is carried at fair value and consists of 3.5 million shares of RESI common stock as of December 31, 2019 (no comparative amount as of December 31, 2020). The investment in equity securities is measured using Level 1 inputs as these securities have quoted prices in active markets. The fair value of our senior secured term loan is based on quoted market prices. Based on the frequency of trading, we do not believe that there is an active market for our debt. Therefore, the quoted prices are considered Level 2 inputs. In connection with the sale of the rental property management business in August 2018, Altisource is to receive $3.0 million on the earlier of a RESI change of control or on August 8, 2023. On October 19, 2020, RESI announced that it had entered into a definitive merger agreement to sell RESI. The merger closed on January 11, 2021 and the Company subsequently received the $3.0 million payment (See Note 4 for additional information). We measure long-term receivables without a stated interest rate based on the present value of the future payments. There were no transfers between different levels during the periods presented. Concentrations of Credit Risk Financial instruments that subject us to concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. Our policy is to deposit our cash and cash equivalents with larger, highly rated financial institutions. The Company derived 54% of its revenues from Ocwen for the year ended December 31, 2020 (see Note 3 for additional information on Ocwen revenues and accounts receivable balance). The Company strives to mitigate its concentrations of credit risk with respect to accounts receivable by actively monitoring past due accounts and the economic status of larger customers, if known. |
SHAREHOLDERS' EQUITY AND SHARE-
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION | SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Common Stock As of December 31, 2020, we had 100.0 million shares authorized, 25.4 million issued and 15.7 million shares of common stock outstanding. As of December 31, 2019, we had 100.0 million shares authorized, 25.4 million shares issued and 15.5 million shares of common stock outstanding. The holders of shares of Altisource common stock generally are entitled to one vote for each share on all matters voted on by shareholders, and the holders of such shares generally will possess all voting power. Equity Incentive Plan Our 2009 Equity Incentive Plan (the “Plan”) provides for various types of equity awards, including stock options, stock appreciation rights, stock purchase rights, restricted shares, restricted share units and other awards, or a combination of any of the above. Under the Plan, we may grant up to 6.7 million Altisource share-based awards to officers, directors, employees and to employees of our affiliates. As of December 31, 2020, 1.0 million share-based awards were available for future grant under the Plan. Expired and forfeited awards are available for reissuance. Share Repurchase Program On May 15, 2018, our shareholders approved the renewal and replacement of the share repurchase program previously approved by the shareholders on May 17, 2017. Under the program, we are authorized to purchase up to 4.3 million shares of our common stock, based on a limit of 25% of the outstanding shares of common stock on the date of approval, at a minimum price of $1.00 per share and a maximum price of $500.00 per share, for a period of five years from the date of approval. As of December 31, 2020, approximately 2.4 million shares of common stock remain available for repurchase under the program. There were no purchases of shares of common stock during the year ended December 31, 2020. We purchased 1.0 million shares at an average price of $20.33 per share during the year ended December 31, 2019 and 1.6 million shares at an average price of $25.53 per share during the year ended December 31, 2018. Luxembourg law limits share repurchases to the balance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings, less the value of shares repurchased. As of December 31, 2020, we can repurchase up to approximately $91 million of our common stock under Luxembourg law. Our Credit Agreement also limits the amount we can spend on share repurchases, which limit was approximately $430 million as of December 31, 2020, and may prevent repurchases in certain circumstances, including if our leverage ratio exceeds 3.50 to 1.00. Our leverage ratio exceeded 3.50 to 1.00 during the year ended December 31, 2020. Share-Based Compensation We issue share-based awards in the form of stock options, restricted shares and restricted share units for certain employees, officers and directors. We recognized share-based compensation expense of $7.8 million, $11.9 million and $10.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, estimated unrecognized compensation costs related to share-based awards amounted to $6.6 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 1.48 years. Stock Options Stock option grants are composed of a combination of service-based, market-based and performance-based options. Service-Based Options. These options generally vest over three four ten Market-Based Options . These option grants generally have two components, each of which vests only upon the achievement of certain criteria. The first component, which we refer to as “ordinary performance” grants, generally consists of two-thirds of the market-based grant and begins to vest if the stock price is at least double the exercise price, as long as the stock price realizes a compounded annual gain of at least 20% over the exercise price. The remaining third of the market-based options, which we refer to as “extraordinary performance” grants, generally begins to vest if the stock price is at least triple the exercise price, as long as the stock price realizes a compounded annual gain of at least 25% over the exercise price. Market-based options vest in three ten three Performance-Based Options. These option grants generally will vest if certain specific financial measures are achieved; one-fourth vests on each anniversary of the grant date. For certain other financial measures, options cliff-vest upon the achievement of the specific performance during the period from 2019 through 2021. The award of performance-based options is adjusted based on the level of achievement specified in the award agreements. If the performance criteria achieved is above threshold performance levels, participants have the opportunity to vest in 50% to 200% of the option grants, depending upon performance achieved. If the performance criteria achieved is below a certain threshold, the options are canceled. The options generally expire on the earlier of ten There were no stock options granted during 2020 and 2019. Outstanding stock options increased by 228 thousand in February 2019 in connection with the determination of the level of achievement for certain performance-based options granted in 2018. The Company granted 277 thousand stock options (at a weighted average exercise price of $25.15 per share) during the year ended December 31, 2018. The fair values of the service-based options and performance-based options are determined using the Black-Scholes option pricing model and the fair values of the market-based options were determined using a lattice (binomial) model. The following assumptions were used to determine the fair values as of the grant date for the years ended December 31: 2018 Black-Scholes Binomial Risk-free interest rate (%) 2.66 – 3.10 1.64 – 3.22 Expected stock price volatility (%) 70.31 – 71.86 71.36 – 71.86 Expected dividend yield — — Expected option life (in years) 6.00 – 6.25 2.56 – 4.33 Fair value $16.17 – $19.68 $14.67 – $20.26 We determined the expected option life of all service-based stock option grants using the simplified method, determined based on the graded vesting term plus the contractual term of the options, divided by two. We use the simplified method because we believe that our historical data does not provide a reasonable basis upon which to estimate expected option life. The following table summarizes the weighted average grant date fair value of stock options granted per share, the total intrinsic value of stock options exercised and the grant date fair value of stock options that vested during the years ended December 31: (in thousands, except per share data) 2020 2019 2018 Weighted average grant date fair value of stock options granted per share $ — $ — $ 16.31 Intrinsic value of options exercised — 54 4,609 Grant date fair value of stock options that vested 2,730 3,053 1,760 The following table summarizes the activity related to our stock options: Number of options Weighted average exercise price Weighted average contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding as of December 31, 2019 1,468,046 $ 29.19 4.60 $ 94 Forfeited (568,132) 24.00 Outstanding as of December 31, 2020 899,914 32.47 5.63 — Exercisable as of December 31, 2020 557,620 28.69 5.45 — In 2018, the Company modified the performance thresholds that are required to be met in order for vesting to occur for 263 thousand stock options granted to 16 employees during the year ended December 31, 2018. The award modification did not change the inputs into the valuation model or the Company’s assessment of the probability of vesting as of the effective date of the modifications. Consequently, no incremental compensation expense was required as a result of this modification. The following table summarizes information about stock options outstanding and exercisable as of December 31, 2020: Options outstanding Options exercisable Exercise price range (1) Number Weighted average remaining contractual life (in years) Weighted average exercise price Number Weighted average remaining contractual life (in years) Weighted average exercise price $10.01 — $20.00 154,200 4.29 $ 18.79 150,038 4.29 $ 18.79 $20.01 — $30.00 548,348 6.18 25.19 324,937 5.77 25.19 $30.01 — $40.00 68,866 6.08 33.32 21,270 5.59 33.32 $60.01 — $70.00 58,500 1.19 60.76 43,875 1.19 60.76 $80.01 — $90.00 25,000 3.60 86.69 6,250 3.60 86.69 $90.01 — $100.00 45,000 3.18 95.67 11,250 3.18 95.67 899,914 557,620 ______________________________________ (1) These options contain market-based and performance-based components as described above. The following table summarizes the market prices necessary in order for the market-based options to begin to vest: Market-based options Vesting price Ordinary performance Extraordinary performance $50.01 — $60.00 36,726 4,162 $60.01 — $70.00 11,648 6,250 $70.01 — $80.00 — 11,500 $80.01 — $90.00 — 7,362 $90.01 — $100.00 — 5,325 $100.01 — $110.00 — 1,000 $170.01 — $180.00 12,500 — $180.01 — $190.00 7,500 14,625 Over $190.00 15,000 17,500 Total 83,374 67,724 Weighted average share price $ 55.14 $ 50.67 Other Share-Based Awards The Company’s other share-based and similar types of awards are composed of restricted shares and restricted share units. The restricted shares and restricted share units are composed of a combination of service-based awards, performance-based awards and market-based awards. Service-Based Awards. These awards generally vest over two Performance-Based Awards. These awards generally vest if certain specific financial measures are achieved; generally one-third vests on each anniversary of the grant date or the awards cliff-vest on the third anniversary of the grant date. The number of performance-based restricted shares and restricted share units that may vest will be based on the level of achievement, as specified in the award agreements. If the performance criteria achieved is above certain financial performance levels, participants have the opportunity to vest in up to 150% of the restricted share unit award for certain awards. If the performance criteria achieved is below a certain thresholds, the award is canceled. A total of 213 thousand performance-based awards were outstanding as of December 31, 2020. Market-Based Awards. 50% of these awards generally vest if certain specific market conditions are achieved over a 30-day period and the remaining 50% of these awards generally vest on the one year anniversary of the initial vesting. The Company estimates the grant date fair value of these awards using a lattice (binomial) model. A total of 194 thousand market-based awards were outstanding as of December 31, 2020. Performance-Based and Market-Based Awards. These awards generally vest if certain specific financial measures are achieved and if certain specific market conditions are achieved. If the performance criteria achieved is above certain financial performance levels and Altisource’s share performance is above certain established criteria, participants have the opportunity to vest in up to 300% of the restricted share unit award for certain awards. If the performance criteria or the market criteria is below certain thresholds, the award is canceled. The Company estimates the grant date fair value of these awards using a Monte Carlo simulation model. A total of 69 thousand performance-based and market-based awards were outstanding as of December 31, 2020. The Company granted 609 thousand restricted share units (at a weighted average grant date fair value of $13.47 per share) during the year ended December 31, 2020. These grants include 82 thousand performance-based awards that include both a performance condition and a market condition, and 194 thousand market-based awards for the year ended December 31, 2020. The Company granted 68 thousand performance-based awards that include both a performance condition and a market condition for the year ended December 31, 2019 (no comparative amounts for the year ended December 31, 2018). There were no market-based awards granted for the years ended December 31, 2019 and 2018. The following table summarizes the activity related to our restricted shares and restricted share units: Number of restricted shares and restricted Outstanding as of December 31, 2019 636,146 Granted 608,695 Issued (210,556) Forfeited/canceled (155,764) Outstanding as of December 31, 2020 878,521 The following assumptions were used to determine the fair values for the performance-based awards that include both a performance condition and a market condition, and fair values for market-based awards as of the grant date for the years ended December 31: 2020 2019 Monte Carlo Binomial Monte Carlo Binomial Risk-free interest rate (%) 2.47 0.09 – 0.27 2.47 — Expected stock price volatility (%) 17.72 80.36 58.90 — Expected dividend yield — — — — Expected life (in years) 3 2 3 0 Fair value $— $12.58 $20.54 $— In 2018, the Company modified the vesting condition to remove the requirement that a certain employee be employed by the Company in order for the restricted shares to vest for 31 thousand restricted shares granted in the fourth quarter of 2017 and the first quarter of 2018. The award modification did not change the inputs into the valuation model or the Company’s assessment of the probability of vesting as of the effective date of the modifications. Consequently, no incremental compensation expense was required as a result of this modification. During the year ended December 31, 2019, Pointillist issued 1.1 million shares of its common stock, or 12.1% of Pointillist equity to Pointillist management in exchange for their services. The fair value of the Pointillist shares of $0.9 million was recognized as share-based compensation expense for the year ended December 31, 2019. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenues [Abstract] | |
REVENUE | REVENUE We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services and sales of short-term investments in real estate. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One, a consolidated entity that is a mortgage cooperative managed, but not owned, by Altisource. The Lenders One members’ earnings are included in revenue and reduced from net income to arrive at net income attributable to Altisource (see Note 2). Our services are provided to customers located in the United States. The components of revenue were as follows for the years ended December 31: (in thousands) 2020 2019 2018 Service revenue $ 347,313 $ 621,866 $ 805,480 Reimbursable expenses 16,285 24,172 30,039 Non-controlling interests 1,949 2,613 2,683 Total $ 365,547 $ 648,651 $ 838,202 The Company adopted ASU No. 2014-09, Revenue from Contracts from Customers (Topic 606) , and related interpretations (“Topic 606”), effective January 1, 2018 retrospectively with the cumulative effect recognized on the date of initial application (the modified retrospective approach) for all contracts. As a result of this adoption, the Company recognized an $11.2 million increase in deferred revenue, a $1.1 million increase in unbilled accounts receivable, a $0.3 million increase in other current liabilities and a $10.4 million decrease in retained earnings as of January 1, 2018. Disaggregation of Revenue Disaggregation of total revenues by major source is as follows: (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue For the year ended December 31, 2020 $ 332,084 $ 17,178 $ 16,285 $ 365,547 For the year ended December 31, 2019 579,929 44,550 24,172 648,651 For the year ended December 31, 2018 719,739 88,424 30,039 838,202 Contract Balances Our contract assets consist of unbilled accounts receivable (see Note 6). Our contract liabilities consist of current deferred revenue and other non-current liabilities as reported on the accompanying consolidated balance sheets. Revenue recognized that was included in the contract liability at the beginning of the period was $4.8 million, $9.8 million and $20.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
COST OF REVENUE
COST OF REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Cost of Revenue [Abstract] | |
COST OF REVENUE | COST OF REVENUE Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service and operations roles, fees paid to external providers related to the provision of services, cost of real estate sold, reimbursable expenses, technology and telecommunications costs as well as depreciation and amortization of operating assets. The components of cost of revenue were as follows for the years ended December 31: (in thousands) 2020 2019 2018 Compensation and benefits $ 94,365 $ 135,502 $ 200,486 Outside fees and services 146,322 240,796 278,380 Technology and telecommunications 35,912 36,302 41,588 Reimbursable expenses 16,285 24,172 30,039 Depreciation and amortization 12,310 13,721 24,013 Cost of real estate sold — 42,763 47,659 Total $ 305,194 $ 493,256 $ 622,165 |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Selling, General and Administrative Expense [Abstract] | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses include payroll and employee benefits associated with personnel employed in executive, sales and marketing, finance, law, compliance, human resources, vendor management, facilities and risk management roles. This category also includes professional services fees, occupancy costs, marketing costs, depreciation and amortization of non-operating assets and other expenses. The components of selling, general and administrative expenses were as follows for the years ended December 31: (in thousands) 2020 2019 2018 Compensation and benefits $ 35,521 $ 49,875 $ 51,043 Occupancy related costs 19,363 26,042 30,851 Amortization of intangible assets 14,720 19,021 28,412 Professional services 11,444 14,975 16,950 Marketing costs 3,325 11,212 14,707 Depreciation and amortization 2,580 4,788 6,786 Other 5,783 15,163 26,921 Total $ 92,736 $ 141,076 $ 175,670 |
OTHER INCOME (EXPENSE), NET
OTHER INCOME (EXPENSE), NET | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET Other income (expense), net consists of the following for the years ended December 31: (in thousands) 2020 2019 2018 Interest income $ 114 $ 342 $ 740 Loss on debt refinancing — — (4,434) Other, net 261 1,006 1,824 Total $ 375 $ 1,348 $ (1,870) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income before income taxes and non-controlling interests consist of the following for the years ended December 31: (in thousands) 2020 2019 2018 Domestic - Luxembourg $ (50,821) $ 8,919 $ (22,513) Foreign - U.S. (13,243) (12,602) 8,398 Foreign - non-U.S. 6,359 16,122 15,514 Total $ (57,705) $ 12,439 $ 1,399 The income tax (provision) benefit consists of the following for the years ended December 31: (in thousands) 2020 2019 2018 Current: Domestic - Luxembourg $ (2,158) $ — $ (275) Foreign - U.S. federal 4,992 187 (1,838) Foreign - U.S. state (322) (174) (336) Foreign - non-U.S. (6,088) (10,970) (7,440) $ (3,576) $ (10,957) $ (9,889) Deferred: Domestic - Luxembourg $ 224 $ (308,657) $ 4,927 Foreign - U.S. federal (2,808) 329 291 Foreign - U.S. state (465) 341 (134) Foreign - non-U.S. (1,984) 648 707 $ (5,033) $ (307,339) $ 5,791 Income tax (provision) benefit $ (8,609) $ (318,296) $ (4,098) We operate under a tax holiday in Uruguay. The Philippines and India tax holidays expired on June 30, 2019 and March 31, 2019 with the election of the reduced income tax rate, respectively. We operate in a Uruguay free trade zone that provides an indefinite future tax benefit. The tax holiday is conditioned upon our meeting certain employment and investment thresholds. The impact of these tax holidays decreased foreign taxes by $0.1 million ($0.01 per diluted share), $0.3 million ($0.02 per diluted share) and $0.7 million ($0.04 per diluted share) for the years ended December 31, 2020, 2019 and 2018, respectively. The Company accounts for certain income and expense items differently for financial reporting purposes and income tax purposes. We recognize deferred income tax assets and liabilities for these differences between the financial reporting basis and the tax basis of our assets and liabilities as well as expected benefits of utilizing net operating loss and credit carryforwards. We measure deferred income tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. A summary of the tax effects of the temporary differences is as follows for the years ended December 31: (in thousands) 2020 2019 Non-current deferred tax assets: Net operating loss carryforwards $ 353,358 $ 338,403 U.S. federal and state tax credits 242 189 Other non-U.S. deferred tax assets 11,327 13,980 Share-based compensation 1,658 2,010 Accrued expenses 1,205 2,691 Unrealized losses 10,351 9,011 Other — 526 Non-current deferred tax liabilities: Intangible assets (8,133) (8,325) Depreciation (441) (302) Other non-U.S. deferred tax liability (7) (998) Other (736) — 368,824 357,185 Valuation allowance (372,227) (355,559) Non-current deferred tax (liabilities) assets, net $ (3,403) $ 1,626 A valuation allowance is provided when it is deemed more likely than not that some portion or all of a deferred tax asset will not be realized. In determining whether a valuation allowance is needed requires an extensive analysis of positive and negative evidence regarding realization of the deferred tax assets and, inherent in that, an assessment of the likelihood of sufficient future taxable income. When there is a cumulative pretax loss for financial reporting for the current and two preceding years (i.e., a three year cumulative loss), this is a significant element of negative evidence that would be difficult to overcome on a more likely than not or any other basis. Therefore, the Company recorded a valuation allowance of $372.2 million and $355.6 million for the year ending December 31, 2020 and 2019, respectively. Previously, the Company has not recognized deferred taxes on cumulative earnings of non-Luxembourg affiliates. In 2019 with the sale of the NCI business and the impending closure of the Philippines, taxes of $0.9 million were provided on the Philippines earnings. In 2020, the Company recognized income tax expense on $68 million of accumulated earnings in India that had previously been considered indefinitely reinvested. The Company also recognized income tax expense on 2020 earnings in India. The Company continues to remain indefinitely reinvested in all other non-Luxembourg earning not previously discussed. The other non-Luxembourg earnings reinvested as of December 31, 2020 were approximately $13.8 million, which if distributed would result in additional tax due totaling approximately $0.5 million. The Company had a deferred tax asset of $353.4 million as of December 31, 2020 relating to Luxembourg, U.S. federal, state and foreign net operating losses compared to $338.4 million as of December 31, 2019. As of December 31, 2020 and 2019, a valuation allowance of $349.8 million and $337.7 million, respectively, has been established related to Luxembourg net operating loss (“NOL”), a valuation allowance of $0.8 million and $0.5 million, respectively, has been established related to state NOLs and a valuation allowance of $2.4 million and $0.1 million, respectively, has been established related to U.S. federal NOLs. The gross amount of net operating losses available for carryover to future years is approximately $1,415.9 million as of December 31, 2020 and approximately $1,355.4 million as of December 31, 2019. These losses are scheduled to expire between the years 2023 and 2040. The deferred tax asset created from the sale of the Financial Services Business was adjusted to reflect the final capital loss balance of $10.4 million in the U.S. Because it is not more likely than not the Company will have sufficient taxable income of the appropriate character (a capital gain) in the carryforward period, a full valuation allowance has been established related to the capital loss. On September 20, 2019, the corporate income tax rate in India lowered from 34.94% to 25.17% retroactive to April 1, 2019. The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. As of December 31, 2020, the amount recorded related to remeasurement of our deferred tax balance was $1.4 million. On April 25, 2019, the Luxembourg Parliament voted to approve the 2019 Budget Law. The new legislation reduced the overall effective corporate income tax rate from 26.01% to 24.94% for accounting periods beginning on or after January 1, 2019. The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 24.94%. As of December 31, 2019, the amount recorded related to remeasurement of our deferred tax balance was $14.0 million. In addition, the Company had a deferred tax asset of $0.9 million and $0.6 million as of December 31, 2020 and 2019, respectively, relating to state tax credits. Some of the state tax credit carryforwards have an indefinite carryforward period. The Company is taking advantage of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act signed into law on March 27, 2020 by utilizing a five year carryback of the full net operating loss generated in the U.S. in 2020. The CARES Act allows a five year carryback of the $14.8 million net operating loss generated in the U.S. in 2020 The effective tax rate differs from the Luxembourg statutory tax rate due to tax rate differences on foreign earnings, increases in uncertain tax positions, state taxes, remeasurement of deferred tax assets related to tax rate changes, a decrease in unrecognized tax benefits and a valuation allowance against deferred tax assets the Company believes it is more likely than not will not be realized The following table reconciles the Luxembourg statutory tax rate to our effective tax rate for the years ended December 31: 2020 2019 2018 Statutory tax rate 24.94 % 24.94 % 26.01 % Change in valuation allowance (29.79) 2,526.53 43.08 State tax expense (1.25) (1.63) 28.58 Tax credits 0.10 — — Uncertain tax positions (2.94) 39.60 114.18 Unrecognized tax loss — (67.18) — Income tax rate change (2.40) — — Tax rate differences on foreign earnings (6.62) 28.75 73.11 Other 3.04 7.85 7.96 Effective tax rate (14.92) % 2,558.86 % 292.92 % The Company follows ASC Topic 740 which clarifies the accounting and disclosure for uncertainty in tax positions. We analyzed our tax filing positions in the domestic and foreign tax jurisdictions where we are required to file income tax returns as well as for all open tax years subject to audit in these jurisdictions. The Company has open tax years in the United States (2017 through 2019), India (2011 through 2019) and Luxembourg (2014 through 2018). The following table summarizes changes in unrecognized tax benefits during the years ended December 31: (in thousands) 2020 2019 Amount of unrecognized tax benefits as of the beginning of the year $ 9,767 $ 9,687 Decreases as a result of tax positions taken in a prior period (2,591) (192) Increases as a result of tax positions taken in a prior period 767 22 Increases as a result of tax positions taken in the current period 598 250 Amount of unrecognized tax benefits as of the end of the year $ 8,541 $ 9,767 The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate is $13.2 million and $13.5 million as of December 31, 2020 and 2019, respectively. The Company recognizes interest, if any, related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2020 and 2019, the Company had recorded accrued interest and penalties related to unrecognized tax benefits of $4.6 million and $3.7 million, respectively. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHAREBasic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted loss per share reflects the assumed conversion of all dilutive securities using the treasury stock method. Diluted net loss per share excludes all dilutive securities because their impact would be anti-dilutive, as described below. Basic and diluted loss per share are calculated as follows for the years ended December 31: (in thousands, except per share data) 2020 2019 2018 Net loss attributable to Altisource $ (67,156) $ (307,969) $ (5,382) Weighted average common shares outstanding, basic 15,598 15,991 17,073 Weighted average common shares outstanding, diluted 15,598 15,991 17,073 Loss per share: Basic $ (4.31) $ (19.26) $ (0.32) Diluted $ (4.31) $ (19.26) $ (0.32) For the years ended December 31, 2020, 2019 and 2018, 1.6 million, 1.6 million and 1.2 million, respectively, stock options, restricted shares and restricted share units were excluded from the computation of loss per share, as a result of the following: • As a result of the net loss attributable to Altisource for the years ended December 31, 2020, 2019 and 2018, 0.2 million, 0.3 million and 0.5 million, respectively, stock options, restricted shares and restricted share units in each period were excluded from the computation of diluted loss per share, as their impacts were anti-dilutive • For the years ended December 31, 2020, 2019 and 2018, 0.5 million, 0.5 million and 0.3 million, respectively, stock options were anti-dilutive and have been excluded from the computation of diluted loss per share because their exercise price was greater than the average market price of our common stock • For the years ended December 31, 2020, 2019 and 2018, 0.9 million, 0.8 million and 0.5 million, respectively, stock options, restricted shares and restricted share units, which begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and an annualized rate of return to shareholders that have not yet been met in each period have been excluded from the computation of diluted loss per share. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES In August 2018, Altisource initiated Project Catalyst, a project intended to optimize its operations and reduce costs to better align its cost structure with its anticipated revenues and improve its operating margins (finalized in 2020). During the years ended December 31, 2020, 2019 and 2018, Altisource incurred $12.0 million, $14.1 million and $11.6 million, respectively, of severance costs, professional services fees, facility consolidation costs, technology costs and business wind down costs related to the reorganization plan. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS | COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS We record a liability for contingencies if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where the reasonable estimate of loss is a range, we record a best estimate of loss within the range. Litigation We are currently involved in legal actions in the course of our business, some of which seek monetary damages. We do not believe that the outcome of these proceedings, both individually and in the aggregate, will have a material impact on our financial condition, results of operations or cash flows. Regulatory Matters Periodically, we are subject to audits, examinations and investigations by federal, state and local governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority. We are currently responding to such inquiries from governmental authorities relating to certain aspects of our business. We believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with these inquiries. Sales Taxes On June 21, 2018, the United States Supreme Court rendered a 5-4 majority decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning existing court precedent. During the year ended December 31, 2019, the Company completed the analysis of its services for potential exposure to sales tax in various jurisdictions in the United States. The Company recognized a $(2.7) million loss reimbursement, $0.3 million and $6.2 million net loss for the years ended December 31, 2020, 2019 and 2018, respectively, in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss. The Company began invoicing, collecting and remitting sales tax in applicable jurisdictions in 2019. Future changes in our estimated sales tax exposure could result in a material adjustment to our consolidated financial statements, which would impact our financial condition and results of operations. Ocwen Related Matters As discussed in Note 3, during the year ended December 31, 2020, Ocwen was our largest customer, accounting for 54% of our total revenue. Additionally, 7% of our revenue for the year ended December 31, 2020 was earned on the loan portfolios serviced by Ocwen, when a party other than Ocwen or the MSR owner selected Altisource as the service provider. Ocwen has disclosed that it is subject to a number of ongoing federal and state regulatory examinations, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Ocwen for substantial monetary damages. In addition to monetary damages, various complaints have sought to obtain injunctive relief, consumer redress, refunds, restitution, disgorgement, civil penalties, costs and fees and other relief. Existing or future similar matters could result in, and in some cases, have resulted in, adverse regulatory or other actions against Ocwen. Previous regulatory actions against Ocwen have subjected Ocwen to independent oversight of its operations and placed certain restrictions on its ability to acquire servicing rights. In addition to the above, Ocwen may become subject to future adverse regulatory or other actions. Ocwen has disclosed that NRZ is its largest client. As of December 31, 2020, NRZ MSRs or rights to MSRs relating to approximately 36% of loans serviced and subserviced by Ocwen (measured in UPB). In July 2017 and January 2018, Ocwen and NRZ entered into a series of agreements pursuant to which the parties agreed, among other things, to undertake certain actions to facilitate the transfer from Ocwen to NRZ of Ocwen’s legal title to the Subject MSRs and under which Ocwen will subservice mortgage loans underlying the MSRs for an initial term of five years. NRZ can terminate its sub-servicing agreement with Ocwen in exchange for the payment of a termination fee. The existence or outcome of Ocwen regulatory matters or the termination of the NRZ sub-servicing agreement with Ocwen may have significant adverse effects on Ocwen’s business and/or our continuing relationship with Ocwen. For example, Ocwen may be required to alter the way it conducts business, including the parties it contracts with for services, it may be required to seek changes to its existing pricing structure with us, it may lose its non-government-sponsored enterprise (“GSE”) servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination licenses. Additional regulatory actions or adverse financial developments may impose additional restrictions on or require changes in Ocwen’s business that could require it to sell assets or change its business operations. Any or all of these effects and others could result in our eventual loss of Ocwen as a customer or a reduction in the number and/or volume of services they purchase from us or the loss of other customers. During the second quarter of 2020, Ocwen informed us that an MSR investor instructed Ocwen to use a field services provider other than Altisource on properties associated with certain MSRs. Based upon the impacted portfolios to date and the designated service provider, Altisource believes that Ocwen received these directions from NRZ. We believe Ocwen commenced using another field services provider for these properties in July 2020 and continued to transition services during the third quarter of 2020. We believe that the transition to the replacement field service provider was largely completed as of September 30, 2020. We estimate that $70.1 million, $150.2 million and $171.0 million of service revenue from Ocwen for the year ended December 31, 2020, 2019 and 2018, respectively, was derived from Field Services referrals from the NRZ portfolios. Ocwen also communicated to Altisource in the fourth quarter of 2020 that the same investor instructed Ocwen to use a provider for default valuations and certain default title services other than Altisource on properties associated with such certain MSRs and commenced moving these referrals to other service providers in the fourth quarter of 2020. We anticipate that the transition of such default valuations and title services will continue during the course of 2021. We estimate that $18.2 million, $33.2 million and $40.1 million of service revenue from Ocwen for the year ended December 31, 2020, 2019 and 2018, respectively, was derived from default valuations and title services referrals from the NRZ portfolios. Altisource believes that any action taken by Ocwen to redirect these service referrals breaches Altisource's agreement with Ocwen. We are currently in discussions with Ocwen to address this matter, and have reserved all of our rights with respect to this matter. To address the reduction in revenue, Altisource is undertaking several measures to further reduce its cost structure and strengthen its operations. In addition to expected reductions in our revenue from the transition of referrals for default related services previously identified, if any of the following events occurred, Altisource’s revenue could be further significantly reduced and our results of operations could be materially adversely affected, including from the possible impairment or write-off of goodwill, intangible assets, property and equipment, other assets and accounts receivable: • Altisource loses Ocwen as a customer or there is an additional significant reduction in the volume of services they purchase from us • Ocwen loses, sells or transfers a significant portion of its GSE servicing rights or subservicing arrangements or remaining non-GSE servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider • The contractual relationship between Ocwen and NRZ changes significantly and this change results in a change in our status as a provider of services related to the Subject MSRs • Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio • The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue • Altisource otherwise fails to be retained as a service provider Management cannot predict whether any of these events will occur or the amount of any impact they may have on Altisource. However, we are focused on diversifying and growing our revenue and customer base and we have a sales and marketing strategy to support these efforts. Moreover, in the event one or more of these events materially negatively impact Altisource, we believe the variable nature of our cost structure would allow us to realign our cost structure to address some of the impact to revenue and that current liquidity would be sufficient to meet our working capital, capital expenditures, debt service and other cash needs. There can be no assurance that our plans will be successful or our operations will be profitable. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and in July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (collectively “Topic 842”). Topic 842 introduced a new lessee model that brings substantially all leases on the balance sheet. The Company adopted Topic 842 effective January 1, 2019 using the modified retrospective transition approach. In addition, the Company elected the practical expedients permitted under the transition guidance within the new standard, including allowing the Company to carry forward its historical lease classification, using hindsight to determine the lease term for existing leases, combining fixed lease and non-lease components and excluding short-term leases. Adoption of this new standard resulted in the recognition of $42.1 million of right-of-use assets in right-of-use assets under operating leases, $45.5 million of operating lease liabilities ($16.7 million in other current liabilities We lease certain premises and equipment, primarily consisting of office space and information technology equipment. Certain of our leases include options to renew at our discretion or terminate leases early, and these options are considered in our determination of the expected lease term. Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. We sublease certain office space to third parties. Sublease income was $1.4 million, $1.7 million and $1.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. The amortization periods of right-of-use assets are generally limited by the expected lease term. Our leases generally have expected lease terms at adoption of one Information about our lease terms and our discount rate assumption is as follows as of December 31: 2020 2019 Weighted average remaining lease term (in years) 3.18 3.23 Weighted average discount rate 7.01 % 7.11 % Our lease activity was as follows for the years ended December 31: (in thousands) 2020 2019 Operating lease costs: Selling, general and administrative expense $ 9,712 $ 10,698 Cost of revenue 1,919 2,757 Cash used in operating activities for amounts included in the measurement of lease liabilities $ 13,113 $ 15,446 Short-term (twelve months or less) lease costs 3,797 4,999 Maturities of our lease liabilities as of December 31, 2020 are as follows: (in thousands) Operating lease obligations 2021 $ 8,268 2022 5,765 2023 4,671 2024 2,901 2025 599 Total lease payments 22,204 Less: interest (2,314) Present value of lease liabilities $ 19,890 We have executed three standby letters of credit totaling $0.8 million related to three office leases that are secured by restricted cash balances. Escrow Balances We hold customers’ assets in escrow accounts at various financial institutions pending completion of certain real estate activities. These amounts are held in escrow accounts for limited periods of time and are not included in the consolidated balance sheets. Amounts held in escrow accounts were $20.0 million and $12.3 million as of December 31, 2020 and 2019, respectively. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following tables contain selected unaudited statement of operations information for each quarter of 2020 and 2019. The following information reflects all recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Our business can be affected by seasonality. 2020 quarter ended (1)(2)(3)(4)(5)(6) (in thousands, except per share data) March 31, June 30, September 30, December 31, Revenue $ 121,444 $ 95,342 $ 88,795 $ 59,966 Gross profit 26,863 12,714 16,225 4,551 Loss before income taxes and non-controlling interests (9,124) (33,747) (11,140) (3,695) Net loss (11,545) (34,864) (12,897) (7,009) Net loss attributable to Altisource (11,650) (35,061) (13,237) (7,208) Loss per share: Basic $ (0.75) $ (2.25) $ (0.85) $ (0.46) Diluted $ (0.75) $ (2.25) $ (0.85) $ (0.46) Weighted average shares outstanding: Basic 15,497 15,601 15,637 15,657 Diluted 15,497 15,601 15,637 15,657 2019 quarter ended (1)(2)(3)(4)(5)(7)(8) (in thousands, except per share data) March 31, June 30, September 30, December 31, Revenue $ 169,935 $ 196,535 $ 141,493 $ 140,688 Gross profit 45,720 43,821 30,771 35,083 (Loss) income before income taxes and non-controlling interests (3,966) 11,909 12,955 (8,459) Net (loss) income (2,744) (4,604) 7,576 (306,085) Net (loss) income attributable to Altisource (3,184) (5,844) 7,165 (306,106) (Loss) earnings per share: Basic $ (0.20) $ (0.36) $ 0.45 $ (19.66) Diluted $ (0.20) $ (0.36) $ 0.44 $ (19.66) Weighted average shares outstanding: Basic 16,292 16,214 15,897 15,568 Diluted 16,292 16,214 16,151 15,568 ______________________________________ (1) The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted average shares outstanding for each period. (2) The income tax provisions on losses before income taxes and non-controlling interests for each quarter of 2020 were primarily driven by the income in our US and other foreign operations from transfer pricing on services provided to our Luxembourg operating company and no tax benefit on pretax losses from our Luxembourg operating company. During the fourth quarter of 2019, we recognized net income tax provision of $318.3 million, which included an increase in the valuation allowance in connection with the Luxembourg net operating loss carryforward of $291.5 million, the impact of a decrease in the Luxembourg statutory income tax rate on deferred taxes of $1.7 million and foreign income tax reserves of $5.6 million. During the second quarter of 2019, we recognized $12.3 million as a result of the change in the Luxembourg statutory income tax rate on deferred taxes. See Note 22. (3) During the first quarter of 2020, second quarter of 2020, third quarter of 2020 and fourth quarter of 2020, we recognized unrealized (losses) gains from our investment in RESI common shares of $(1.3) million, $(11.2) million, $0.1 million and $16.4 million, respectively. During the first quarter of 2019, second quarter of 2019, third quarter of 2019 and fourth quarter of 2019, we recognized unrealized gains (losses) from our investment in RESI common shares of $2.2 million, $11.8 million, $(2.3) million and $2.7 million, respectively. See Note 5. (4) In August 2018, we initiated Project Catalyst, a restructuring plan intended to optimize our operations and reduce costs to align our cost structure with our anticipated revenues and improve our operating margins. During the first quarter of 2020, second quarter of 2020, third quarter of 2020 and fourth quarter of 2020, we recognized $2.9 million, $5.8 million, $2.2 million and $1.1 million, respectively, of severance costs, professional services fees, facility consolidation costs, technology costs and business wind down costs related to the restructuring plan. During the first quarter of 2019, second quarter of 2019, third quarter of 2019 and fourth quarter of 2019, we recognized $4.4 million, $1.9 million, $2.8 million and $5.0 million, respectively, of severance costs, professional services fees, facility consolidation costs, technology costs and business wind down costs related to the restructuring plan. See Note 24. (5) In connection with a United States Supreme Court decision in June 2018, we analyzed our services for potential exposure to sales tax in various jurisdictions in the United States and recognized a net loss reimbursement of $(0.6) million and $(2.1) million for the third and fourth quarter of 2020, respectively. In addition, we recognized a net (loss reimbursement) loss of $2.1 million and $(1.7) million in the first and third quarter of 2019, respectively. See Note 25. (6) During the third quarter of 2020 we recognized $0.7 million of severance in connection with cost savings initiatives (no comparable amounts in 2019). (7) In July 2019, we sold the Financial Services Business to TSI for $44.0 million consisting of an up-front payment of $40.0 million, subject to a working capital adjustment and transaction costs upon closing of the sale, and an additional $4.0 million payment on the one year anniversary of the sale closing. We recognized a $17.6 million pretax gain on sale in the third quarter of 2019 and a working capital true-up gain of an additional $0.3 million in the fourth quarter of 2019. See Note 4. (8) In connection with the wind down of Owners.com, we wrote off $5.2 million of goodwill and $0.7 million of intangible assets during the fourth quarter of 2019. In November 2018, we announced our plans to sell the BRS Inventory and discontinue the BRS business. During the second quarter of 2019, we recognized a loss on the sale of the BRS Inventory of $1.8 million. See Note 8. |
SCHEDULE II. VALUATION AND QUAL
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2020, 2019 and 2018: Additions (in thousands) Balance at Beginning of Period Charged to Expenses Charged to Other Accounts Note (1) Deductions Note (2) Balance at End of Period Deductions from asset accounts: Allowance for doubtful accounts and expected credit losses: Year 2020 $ 4,472 $ 2,229 $ — $ 1,120 $ 5,581 Year 2019 10,883 720 (70) 7,061 4,472 Year 2018 10,579 2,830 (7) 2,519 10,883 Valuation allowance for deferred tax assets: Year 2020 $ 355,559 $ 16,668 $ — $ — $ 372,227 Year 2019 46,751 308,808 — — 355,559 Year 2018 46,283 468 — — 46,751 ______________________________________ (1) For allowance for credit losses, primarily includes amounts previously written off which were credited directly to this account when recovered. (2) For allowance for credit losses, amounts written off as uncollectible or transferred to other accounts or utilized. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Presentation | Basis of Accounting and Presentation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Intercompany transactions and accounts have been eliminated in consolidation. |
Principles of Consolidation | Principles of Consolidation The financial statements include the accounts of the Company, its wholly-owned subsidiaries and those entities in which we have a variable interest and are the primary beneficiary. Altisource consolidates Best Partners Mortgage Cooperative, Inc., which is managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource. Best Partners Mortgage Cooperative, Inc. is a mortgage cooperative doing business as Lenders One ® (“Lenders One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025 (with renewals for three successive five-year periods at MPA’s option). The management agreement between MPA and Lenders One, pursuant to which MPA is the management company, represents a variable interest in a variable interest entity. MPA is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact the cooperative’s economic performance and the right to receive benefits from the cooperative. As a result, Lenders One is presented in the accompanying consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests. As of December 31, 2020, Lenders One had total assets of $2.3 million and total liabilities of $0.1 million. As of December 31, 2019, Lenders One had total assets of $1.6 million and total liabilities of $0.3 million. In 2019, Altisource created Pointillist, Inc. (“Pointillist”) and contributed the Pointillist ® customer journey analytics business and $8.5 million to it. Pointillist is owned by Altisource and management of Pointillist. Management of Pointillist owns a non-controlling interest representing 12.1% of the outstanding equity of Pointillist. Additional equity shares of Pointillist are available for issuance to management and board members of Pointillist. Altisource has no ongoing obligation to provide future funding to Pointillist. Pointillist is presented in the accompanying consolidated financial statements on a consolidated basis and the portion of Pointillist owned by Pointillist management is reported as non-controlling interests. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, determining share-based compensation, income taxes, collectability of receivables, valuation of acquired intangibles and goodwill, depreciable lives and valuation of fixed assets and contingencies. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents We classify all highly liquid instruments with an original maturity of three months or less at the time of purchase as cash equivalents. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable are presented net of an allowance for expected credit losses. We monitor and estimate the allowance for credit losses based on our historical write-offs, historical collections, our analysis of past due accounts based on the contractual terms of the receivables, relevant market and industry reports and our assessment of the economic status of our customers, if known. The carrying value of accounts receivable, net, approximates fair value. |
Premises and Equipment, Net | Premises and Equipment, Net We report premises and equipment, net at cost or estimated fair value at acquisition for premises and equipment recorded in connection with a business combination and depreciate these assets over their estimated useful lives using the straight-line method as follows: Furniture and fixtures 5 years Office equipment 5 years Computer hardware 3-5 years Computer software 3-7 years Leasehold improvements Shorter of useful life, 10 years or the term of the lease Maintenance and repair costs are expensed as incurred. We capitalize expenditures for significant improvements and new equipment and depreciate the assets over the shorter of the capitalized asset’s life or the life of the lease. We review premises and equipment for impairment following events or changes in circumstances that indicate the carrying amount of an asset or asset group may not be recoverable. We measure recoverability of assets to be held and used by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, we recognize an impairment charge for the amount that the carrying value of the asset or asset group exceeds the fair value of the asset or asset group. Computer software includes the fair value of software acquired in business combinations, capitalized software development costs and purchased software. Capitalized software development and purchased software are recorded at cost and amortized using the straight-line method over their estimated useful lives. Software acquired in business combinations is recorded at fair value and amortized using the straight-line method over its estimated useful life. |
Business Combinations | Business Combinations We account for acquisitions using the purchase method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations |
Goodwill | GoodwillGoodwill represents the excess cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. We evaluate goodwill for impairment annually during the fourth quarter or more frequently when an event occurs or circumstances change in a manner that indicates the carrying value may not be recoverable. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether we need to perform the quantitative goodwill impairment test. Only if we determine, based on qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying value will we calculate the fair value of the reporting unit. We would then test goodwill for impairment by comparing the fair value of the reporting unit with its carrying amount. If the fair value is determined to be less than its carrying amount, we recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We estimate the fair value of the reporting unit using discounted cash flows and market comparisons. The discounted cash flow method is based on the present value of projected cash flows. Forecasts of future cash flows are based on our estimate of future sales and operating expenses, based primarily on estimated pricing, sales volumes, market segment share, cost trends and general economic conditions. The estimated cash flows are discounted using a rate that represents our weighted average cost of capital. The market comparisons include an analysis of revenue and earnings multiples of guideline public companies compared to the Company. |
Intangible Assets, Net | Intangible Assets, Net Identified intangible assets consist primarily of customer related intangible assets, operating agreements, trademarks and trade names and other intangible assets. Identifiable intangible assets acquired in business combinations are recorded based on their fair values at the date of acquisition. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any arrangements, the history of the asset, our long-term strategy for use of the asset and other economic factors. We amortize intangible assets that we deem to have definite lives in proportion to actual and expected customer revenues or on a straight-line basis over their useful lives, generally ranging from 4 to 20 years. |
Long-Term Debt | Long-Term Debt Long-term debt is reported net of applicable discount or premium and net of debt issuance costs. The debt discount or premium and debt issuance costs are amortized to interest expense through maturity of the related debt using the effective interest method. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets and liabilities Level 2 — Observable inputs other than quoted prices included in Level 1 Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. Financial assets and financial liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. |
Functional Currency | Functional Currency The currency of the primary economic environment in which our operations are conducted is the United States dollar. Therefore, the United States dollar has been determined to be our functional and reporting currency. Non-United States dollar transactions and balances have been measured in United States dollars in accordance with ASC Topic 830, Foreign Currency Matters . All transaction gains and losses from the measurement of monetary balance sheet items denominated in non-United States dollar currencies are reflected in the consolidated statements of operations and comprehensive loss as income or expenses, as appropriate. |
Defined Contribution 401(k) Plan | Defined Contribution 401(k) PlanSome of our employees currently participate in a defined contribution 401(k) plan under which we may make matching contributions equal to a discretionary percentage determined by us. |
Revenue Recognition | Revenue Recognition We recognize revenue when we satisfy a performance obligation by transferring control of a product or service to a customer in an amount that reflects the consideration that we expect to receive. This revenue can be recognized at a point in time or over time. We invoice customers based on our contractual arrangements with each customer, which may not be consistent with the period that revenues are recognized. When there is a timing difference between when we invoice customers and when revenues are recognized, we record either a contract asset (unbilled accounts receivable) or a contract liability (deferred revenue or other current liabilities), as appropriate. Descriptions of our principal revenue generating activities are as follows: Core Businesses Field Services • For property preservation and inspection services and payment management technologies, we recognize transactional revenue when the service is provided. • For vendor management transactions and our vendor management oversight software-as-a-service (“SaaS”) platform, we recognize revenue over the period during which we perform the services. • Reimbursable expenses revenue related to our property preservation and inspection services is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationships are with us, rather than with our customers. Marketplace • For the real estate auction platform, real estate auction and real estate brokerage services, we recognize revenue on a net basis (i.e., the commission on the sale) as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage or amount. • For SaaS based technology to manage real estate owned (“REO”), short sales, foreclosure, bankruptcy and eviction processes, we recognize revenue over the estimated average number of months the REO are on the platform. We generally recognize revenue for professional services over the contract period. • Reimbursable expenses revenue related to our real estate sales is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationships are with us, rather than with our customers. Mortgage and Real Estate Solutions • For the majority of the services we provide, we recognize transactional revenue when the service is provided. • For loan disbursement processing services, we recognize revenue over the period during which we perform the processing services with full recognition upon completion of the disbursements. For foreclosure trustee services, we recognize revenue over the period during which we perform the related services, with full recognition upon completion and/or recording the related foreclosure deed. We use judgment to determine the period over which we recognize revenue for certain of these services. • Reimbursable expenses revenue related to our title and foreclosure trustee services businesses is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationships are with us, rather than with our customers. Other Businesses Earlier Stage Business • For our customer journey analytics platform, we recognize revenue primarily based on subscription fees. We recognize revenue associated with implementation services and maintenance services ratably over the contract term. Other • For our Financial Services business (sold on July 1, 2019, see Note 4), we generally earned fees for our post-charge-off consumer debt collection services as a percentage of the amount we collected on delinquent consumer receivables and recognized revenue following collection from the borrowers. For mortgage charge-off collections performed on behalf of our clients, we recognized revenue as a percentage of amounts collected following collection from the borrowers. We provided customer relationship management services for which we typically earned and recognized revenue on a per-person, per-call or per-minute basis as the related services were performed. • For loan servicing technologies, we recognized revenue based on the number of loans on the system. We generally recognized revenue from professional services over the contract period. • For short-term investments in real estate (wind down completed in 2019, see Note 8), we recognized revenue associated with our sales of short-term investments in real estate on a gross basis (i.e., the selling price of the property) as we assumed the risks and rewards of ownership of the asset. • For our consumer real estate brokerage (discontinued in the fourth quarter of 2019, see Note 8), we recognized revenue on a net basis (i.e., the commission on the sale) as we performed services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale was a fixed percentage or amount. |
Share-Based Compensation | Share-Based Compensation Share-based compensation is accounted for under the provisions of ASC Topic 718, Compensation - Stock Compensation (“ASC Topic 718”). Under ASC Topic 718, the cost of services received in exchange for an award of equity instruments is generally measured based on the grant date fair value of the award. Share-based awards that do not require future service are expensed immediately. Share-based awards that require future service are recognized over the relevant service period. The Company has made an accounting policy election to account for forfeitures in compensation expense as they occur. |
Income Taxes | Income Taxes We record income taxes in accordance with ASC Topic 740, Income Taxes (“ASC Topic 740”). We account for certain income and expense items differently for financial reporting purposes and income tax purposes. We recognize deferred income tax assets and liabilities for these differences between the financial reporting basis and the tax basis of our assets and liabilities as well as expected benefits of utilizing net operating loss and credit carryforwards. The most significant temporary differences relate to accrued compensation, amortization, loss carryforwards and valuation allowances. We measure deferred income tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we anticipate recovery or settlement of those temporary differences. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Earnings Per Share | Earnings Per Share We compute earnings per share in accordance with ASC Topic 260, Earnings Per Share . Basic net income per share is computed by dividing net income attributable to Altisource by the weighted average number of shares of common stock outstanding for the period. Diluted net income per share reflects the assumed conversion of all dilutive securities using the treasury stock method. |
Recently Adopted Accounting Pronouncements and Future Adoption of New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This standard simplified the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Prior guidance required that companies compute the implied fair value of goodwill under Step 2 by performing procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. This updated standard requires companies to perform annual or interim goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted this standard effective January 1, 2020 and has applied it prospectively. Adoption of this new standard did not have any impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This standard modified certain disclosure requirements such as the valuation processes for Level 3 fair value measurements. This standard also requires new disclosures such as the disclosure of certain assumptions used to develop significant unobservable inputs for Level 3 fair value measurements. The Company adopted this standard effective January 1, 2020 and has applied it prospectively. Adoption of this new standard did not have any impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) . This standard aligns the requirements for capitalizing implementation costs in a hosting arrangement service contract with the existing guidance for capitalizing implementation costs incurred for an internal-use software license. This standard also requires capitalizing or expensing implementation costs based on the nature of the costs and the project stage during which they are incurred and establishes additional disclosure requirements. The Company adopted this standard effective January 1, 2020 and has applied it prospectively. Adoption of this new standard did not have any impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses ( Topic 326 ): Measurement of Credit Losses on Financial Instruments . This ASU and its related amendments (collectively, the "Credit Loss Standard") introduced the current expected credit losses (“CECL”) methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The CECL model applies to financial assets measured at amortized cost, including trade and other receivables, net, investments in leases, loans receivable held-to-maturity securities and off-balance sheet exposures. The Credit Loss Standard requires consideration of a broader range of information to estimate expected credit losses, including historical information and current conditions through a reasonable forecast period. The Credit Loss Standard requires that the income statement reflect the measurement of credit losses for newly recognized financial assets as well as the expected increase or decrease of expected credit losses that have taken place during the period, which may result in earlier recognition of certain losses. The Company adopted this standard effective January 1, 2020 utilizing a modified retrospective approach, which did not have any impact on the Company’s consolidated financial statements (See Note 6). Future Adoption of New Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is part of the FASB’s initiative to reduce complexity in accounting standards by instituting several simplifying provisions and removing several exceptions pertaining to income tax accounting. This standard will be effective for annual periods beginning after December 15, 2020, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope . This standard applies only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. This standard provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR. This standard is effective from the period from March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a topic or an industry subtopic, the standard must be applied prospectively for all eligible contract modifications for that topic or industry subtopic. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives using the straight-line method | We report premises and equipment, net at cost or estimated fair value at acquisition for premises and equipment recorded in connection with a business combination and depreciate these assets over their estimated useful lives using the straight-line method as follows: Furniture and fixtures 5 years Office equipment 5 years Computer hardware 3-5 years Computer software 3-7 years Leasehold improvements Shorter of useful life, 10 years or the term of the lease |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | Accounts receivable, net consists of the following as of December 31: (in thousands) 2020 2019 Billed $ 19,703 $ 35,921 Unbilled 8,291 12,166 27,994 48,087 Less: Allowance for credit losses (5,581) (4,472) Total $ 22,413 $ 43,615 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following as of December 31: (in thousands) 2020 2019 Maintenance agreements, current portion $ 2,513 $ 1,923 Income taxes receivable 7,053 5,098 Prepaid expenses 4,812 3,924 Other current assets 5,101 4,269 Total $ 19,479 $ 15,214 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment, net | Premises and equipment, net consists of the following as of December 31: (in thousands) 2020 2019 Computer hardware and software $ 52,837 $ 144,608 Leasehold improvements 14,792 23,800 Furniture and fixtures 5,882 8,775 Office equipment and other 1,817 4,004 75,328 181,187 Less: Accumulated depreciation and amortization (63,434) (156,661) Total $ 11,894 $ 24,526 |
Schedule of premises and equipment, net by country | Premises and equipment, net consist of the following, by country, as of December 31: (in thousands) 2020 2019 United States $ 5,530 $ 13,426 Luxembourg 5,451 10,295 India 822 671 Uruguay 91 39 Philippines — 95 Total $ 11,894 $ 24,526 |
RIGHT-OF-USE ASSETS UNDER OPE_2
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Right-of-Use Assets Under Operating Leases | Right-of-use assets under operating leases, net consists of the following as of December 31: (in thousands) 2020 2019 Right-of-use assets under operating leases $ 31,932 $ 39,729 Less: Accumulated amortization (13,719) (10,655) Total $ 18,213 $ 29,074 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | Changes in goodwill during the years ended December 31, 2020 and 2019 are summarized below: (in thousands) Total Balance as of January 1, 2019 $ 81,387 Disposition (1) (2,378) Write-off (2) (5,160) Balance as of December 31, 2020 and 2019 $ 73,849 ______________________________________ (1) During 2019, the Company sold the Financial Services Business (see Note 4) which had $2.4 million of goodwill attributed to it. (2) During 2019, we recorded a $5.2 million write-off of goodwill attributable to the Owners.com business, as a result of our decision to wind down and close the business (see Note 8). |
Schedule of intangible assets, net | Intangible assets, net consist of the following as of December 31: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) 2020 2019 2020 2019 2020 2019 Definite lived intangible assets: Customer related intangible assets 9 $ 214,973 $ 214,973 $ (187,923) $ (176,043) $ 27,050 $ 38,930 Operating agreement 20 35,000 35,000 (19,126) (17,376) 15,874 17,624 Trademarks and trade names 16 9,709 9,709 (6,307) (5,893) 3,402 3,816 Non-compete agreements 4 1,230 1,230 (1,230) (1,215) — 15 Intellectual property — — 300 — (175) — 125 Other intangible assets 5 1,800 3,745 (1,800) (3,209) — 536 Total $ 262,712 $ 264,957 $ (216,386) $ (203,911) $ 46,326 $ 61,046 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets consist of the following as of December 31: (in thousands) 2020 2019 Security deposits $ 2,416 $ 3,473 Restricted cash 3,833 3,842 Other 3,601 3,495 Total $ 9,850 $ 10,810 |
ACCOUNTS PAYABLE, ACCRUED EXP_2
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consist of the following as of December 31: (in thousands) 2020 2019 Accounts payable $ 16,797 $ 22,431 Accrued expenses - general 24,422 24,558 Accrued salaries and benefits 11,226 18,982 Income taxes payable 4,334 1,700 Total $ 56,779 $ 67,671 |
Schedule of other current liabilities | Other current liabilities consist of the following as of December 31: (in thousands) 2020 2019 Operating lease liabilities $ 7,609 $ 11,398 Other 1,696 3,326 Total $ 9,305 $ 14,724 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following as of December 31: (in thousands) 2020 2019 Senior secured term loans $ 247,204 $ 293,826 Less: Debt issuance costs, net (2,389) (3,119) Less: Unamortized discount, net (2,159) (2,825) Long-term debt $ 242,656 $ 287,882 |
Schedule of maturities of long-term debt | Maturities of our long-term debt are as follows: (in thousands) Maturities 2021 $ — 2022 — 2023 — 2024 247,204 $ 247,204 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other non-current liabilities | Other non-current liabilities consist of the following as of December 31: (in thousands) 2020 2019 Operating lease liabilities $ 12,281 $ 19,707 Income tax liabilities 12,414 10,935 Deferred revenue 504 88 Other non-current liabilities 40 286 Total $ 25,239 $ 31,016 |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring and nonrecurring | The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: December 31, 2020 December 31, 2019 (in thousands) Carrying amount Fair value Carrying amount Fair value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 58,263 $ 58,263 $ — $ — $ 82,741 $ 82,741 $ — $ — Restricted cash 3,833 3,833 — — 3,842 3,842 — — Investment in equity securities — — — — 42,618 42,618 — — Long-term receivable 2,531 — — 2,531 2,371 — — 2,371 Liabilities: Senior secured term loan 247,204 — 201,472 — 293,826 — 277,666 — |
SHAREHOLDERS' EQUITY AND SHAR_2
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of assumptions used to determine the fair value of options as of the grant date | The following assumptions were used to determine the fair values as of the grant date for the years ended December 31: 2018 Black-Scholes Binomial Risk-free interest rate (%) 2.66 – 3.10 1.64 – 3.22 Expected stock price volatility (%) 70.31 – 71.86 71.36 – 71.86 Expected dividend yield — — Expected option life (in years) 6.00 – 6.25 2.56 – 4.33 Fair value $16.17 – $19.68 $14.67 – $20.26 |
Summary of the weighted average fair value of stock options granted, the total intrinsic value of stock options exercised and the fair value of options vested | The following table summarizes the weighted average grant date fair value of stock options granted per share, the total intrinsic value of stock options exercised and the grant date fair value of stock options that vested during the years ended December 31: (in thousands, except per share data) 2020 2019 2018 Weighted average grant date fair value of stock options granted per share $ — $ — $ 16.31 Intrinsic value of options exercised — 54 4,609 Grant date fair value of stock options that vested 2,730 3,053 1,760 |
Summary of the activity of the entity's stock options | The following table summarizes the activity related to our stock options: Number of options Weighted average exercise price Weighted average contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding as of December 31, 2019 1,468,046 $ 29.19 4.60 $ 94 Forfeited (568,132) 24.00 Outstanding as of December 31, 2020 899,914 32.47 5.63 — Exercisable as of December 31, 2020 557,620 28.69 5.45 — |
Shares authorized under stock option plans, by exercise price range | The following table summarizes information about stock options outstanding and exercisable as of December 31, 2020: Options outstanding Options exercisable Exercise price range (1) Number Weighted average remaining contractual life (in years) Weighted average exercise price Number Weighted average remaining contractual life (in years) Weighted average exercise price $10.01 — $20.00 154,200 4.29 $ 18.79 150,038 4.29 $ 18.79 $20.01 — $30.00 548,348 6.18 25.19 324,937 5.77 25.19 $30.01 — $40.00 68,866 6.08 33.32 21,270 5.59 33.32 $60.01 — $70.00 58,500 1.19 60.76 43,875 1.19 60.76 $80.01 — $90.00 25,000 3.60 86.69 6,250 3.60 86.69 $90.01 — $100.00 45,000 3.18 95.67 11,250 3.18 95.67 899,914 557,620 ______________________________________ (1) These options contain market-based and performance-based components as described above. |
Shares authorized under stock option plans by vesting price range | The following table summarizes the market prices necessary in order for the market-based options to begin to vest: Market-based options Vesting price Ordinary performance Extraordinary performance $50.01 — $60.00 36,726 4,162 $60.01 — $70.00 11,648 6,250 $70.01 — $80.00 — 11,500 $80.01 — $90.00 — 7,362 $90.01 — $100.00 — 5,325 $100.01 — $110.00 — 1,000 $170.01 — $180.00 12,500 — $180.01 — $190.00 7,500 14,625 Over $190.00 15,000 17,500 Total 83,374 67,724 Weighted average share price $ 55.14 $ 50.67 |
Restricted shares and restricted share units activity | The following table summarizes the activity related to our restricted shares and restricted share units: Number of restricted shares and restricted Outstanding as of December 31, 2019 636,146 Granted 608,695 Issued (210,556) Forfeited/canceled (155,764) Outstanding as of December 31, 2020 878,521 |
Fair Value of Performance-based Awards | The following assumptions were used to determine the fair values for the performance-based awards that include both a performance condition and a market condition, and fair values for market-based awards as of the grant date for the years ended December 31: 2020 2019 Monte Carlo Binomial Monte Carlo Binomial Risk-free interest rate (%) 2.47 0.09 – 0.27 2.47 — Expected stock price volatility (%) 17.72 80.36 58.90 — Expected dividend yield — — — — Expected life (in years) 3 2 3 0 Fair value $— $12.58 $20.54 $— |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenues [Abstract] | |
Schedule of revenue | The components of revenue were as follows for the years ended December 31: (in thousands) 2020 2019 2018 Service revenue $ 347,313 $ 621,866 $ 805,480 Reimbursable expenses 16,285 24,172 30,039 Non-controlling interests 1,949 2,613 2,683 Total $ 365,547 $ 648,651 $ 838,202 |
Disaggregation of revenue | Disaggregation of total revenues by major source is as follows: (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue For the year ended December 31, 2020 $ 332,084 $ 17,178 $ 16,285 $ 365,547 For the year ended December 31, 2019 579,929 44,550 24,172 648,651 For the year ended December 31, 2018 719,739 88,424 30,039 838,202 |
COST OF REVENUE (Tables)
COST OF REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cost of Revenue [Abstract] | |
Schedule of components of cost of revenue | The components of cost of revenue were as follows for the years ended December 31: (in thousands) 2020 2019 2018 Compensation and benefits $ 94,365 $ 135,502 $ 200,486 Outside fees and services 146,322 240,796 278,380 Technology and telecommunications 35,912 36,302 41,588 Reimbursable expenses 16,285 24,172 30,039 Depreciation and amortization 12,310 13,721 24,013 Cost of real estate sold — 42,763 47,659 Total $ 305,194 $ 493,256 $ 622,165 |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Selling, General and Administrative Expense [Abstract] | |
Schedule of the components of selling, general and administrative expenses | The components of selling, general and administrative expenses were as follows for the years ended December 31: (in thousands) 2020 2019 2018 Compensation and benefits $ 35,521 $ 49,875 $ 51,043 Occupancy related costs 19,363 26,042 30,851 Amortization of intangible assets 14,720 19,021 28,412 Professional services 11,444 14,975 16,950 Marketing costs 3,325 11,212 14,707 Depreciation and amortization 2,580 4,788 6,786 Other 5,783 15,163 26,921 Total $ 92,736 $ 141,076 $ 175,670 |
OTHER INCOME (EXPENSE), NET (Ta
OTHER INCOME (EXPENSE), NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense), net | Other income (expense), net consists of the following for the years ended December 31: (in thousands) 2020 2019 2018 Interest income $ 114 $ 342 $ 740 Loss on debt refinancing — — (4,434) Other, net 261 1,006 1,824 Total $ 375 $ 1,348 $ (1,870) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | The components of income before income taxes and non-controlling interests consist of the following for the years ended December 31: (in thousands) 2020 2019 2018 Domestic - Luxembourg $ (50,821) $ 8,919 $ (22,513) Foreign - U.S. (13,243) (12,602) 8,398 Foreign - non-U.S. 6,359 16,122 15,514 Total $ (57,705) $ 12,439 $ 1,399 |
Schedule of income tax provision (benefit) | The income tax (provision) benefit consists of the following for the years ended December 31: (in thousands) 2020 2019 2018 Current: Domestic - Luxembourg $ (2,158) $ — $ (275) Foreign - U.S. federal 4,992 187 (1,838) Foreign - U.S. state (322) (174) (336) Foreign - non-U.S. (6,088) (10,970) (7,440) $ (3,576) $ (10,957) $ (9,889) Deferred: Domestic - Luxembourg $ 224 $ (308,657) $ 4,927 Foreign - U.S. federal (2,808) 329 291 Foreign - U.S. state (465) 341 (134) Foreign - non-U.S. (1,984) 648 707 $ (5,033) $ (307,339) $ 5,791 Income tax (provision) benefit $ (8,609) $ (318,296) $ (4,098) |
Summary of tax effects of the temporary differences | A summary of the tax effects of the temporary differences is as follows for the years ended December 31: (in thousands) 2020 2019 Non-current deferred tax assets: Net operating loss carryforwards $ 353,358 $ 338,403 U.S. federal and state tax credits 242 189 Other non-U.S. deferred tax assets 11,327 13,980 Share-based compensation 1,658 2,010 Accrued expenses 1,205 2,691 Unrealized losses 10,351 9,011 Other — 526 Non-current deferred tax liabilities: Intangible assets (8,133) (8,325) Depreciation (441) (302) Other non-U.S. deferred tax liability (7) (998) Other (736) — 368,824 357,185 Valuation allowance (372,227) (355,559) Non-current deferred tax (liabilities) assets, net $ (3,403) $ 1,626 |
Schedule of the reconciliation of income tax provision to the Luxembourg statutory income tax rate | The following table reconciles the Luxembourg statutory tax rate to our effective tax rate for the years ended December 31: 2020 2019 2018 Statutory tax rate 24.94 % 24.94 % 26.01 % Change in valuation allowance (29.79) 2,526.53 43.08 State tax expense (1.25) (1.63) 28.58 Tax credits 0.10 — — Uncertain tax positions (2.94) 39.60 114.18 Unrecognized tax loss — (67.18) — Income tax rate change (2.40) — — Tax rate differences on foreign earnings (6.62) 28.75 73.11 Other 3.04 7.85 7.96 Effective tax rate (14.92) % 2,558.86 % 292.92 % |
Summary of income tax contingencies | The following table summarizes changes in unrecognized tax benefits during the years ended December 31: (in thousands) 2020 2019 Amount of unrecognized tax benefits as of the beginning of the year $ 9,767 $ 9,687 Decreases as a result of tax positions taken in a prior period (2,591) (192) Increases as a result of tax positions taken in a prior period 767 22 Increases as a result of tax positions taken in the current period 598 250 Amount of unrecognized tax benefits as of the end of the year $ 8,541 $ 9,767 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted EPS calculation | Basic and diluted loss per share are calculated as follows for the years ended December 31: (in thousands, except per share data) 2020 2019 2018 Net loss attributable to Altisource $ (67,156) $ (307,969) $ (5,382) Weighted average common shares outstanding, basic 15,598 15,991 17,073 Weighted average common shares outstanding, diluted 15,598 15,991 17,073 Loss per share: Basic $ (4.31) $ (19.26) $ (0.32) Diluted $ (4.31) $ (19.26) $ (0.32) |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease term and assumption | Information about our lease terms and our discount rate assumption is as follows as of December 31: 2020 2019 Weighted average remaining lease term (in years) 3.18 3.23 Weighted average discount rate 7.01 % 7.11 % |
Lease activity during period | Our lease activity was as follows for the years ended December 31: (in thousands) 2020 2019 Operating lease costs: Selling, general and administrative expense $ 9,712 $ 10,698 Cost of revenue 1,919 2,757 Cash used in operating activities for amounts included in the measurement of lease liabilities $ 13,113 $ 15,446 Short-term (twelve months or less) lease costs 3,797 4,999 |
Maturities of operating lease liabilities | Maturities of our lease liabilities as of December 31, 2020 are as follows: (in thousands) Operating lease obligations 2021 $ 8,268 2022 5,765 2023 4,671 2024 2,901 2025 599 Total lease payments 22,204 Less: interest (2,314) Present value of lease liabilities $ 19,890 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly results | The operating results for any quarter are not necessarily indicative of results for any future period. Our business can be affected by seasonality. 2020 quarter ended (1)(2)(3)(4)(5)(6) (in thousands, except per share data) March 31, June 30, September 30, December 31, Revenue $ 121,444 $ 95,342 $ 88,795 $ 59,966 Gross profit 26,863 12,714 16,225 4,551 Loss before income taxes and non-controlling interests (9,124) (33,747) (11,140) (3,695) Net loss (11,545) (34,864) (12,897) (7,009) Net loss attributable to Altisource (11,650) (35,061) (13,237) (7,208) Loss per share: Basic $ (0.75) $ (2.25) $ (0.85) $ (0.46) Diluted $ (0.75) $ (2.25) $ (0.85) $ (0.46) Weighted average shares outstanding: Basic 15,497 15,601 15,637 15,657 Diluted 15,497 15,601 15,637 15,657 2019 quarter ended (1)(2)(3)(4)(5)(7)(8) (in thousands, except per share data) March 31, June 30, September 30, December 31, Revenue $ 169,935 $ 196,535 $ 141,493 $ 140,688 Gross profit 45,720 43,821 30,771 35,083 (Loss) income before income taxes and non-controlling interests (3,966) 11,909 12,955 (8,459) Net (loss) income (2,744) (4,604) 7,576 (306,085) Net (loss) income attributable to Altisource (3,184) (5,844) 7,165 (306,106) (Loss) earnings per share: Basic $ (0.20) $ (0.36) $ 0.45 $ (19.66) Diluted $ (0.20) $ (0.36) $ 0.44 $ (19.66) Weighted average shares outstanding: Basic 16,292 16,214 15,897 15,568 Diluted 16,292 16,214 16,151 15,568 ______________________________________ (1) The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted average shares outstanding for each period. (2) The income tax provisions on losses before income taxes and non-controlling interests for each quarter of 2020 were primarily driven by the income in our US and other foreign operations from transfer pricing on services provided to our Luxembourg operating company and no tax benefit on pretax losses from our Luxembourg operating company. During the fourth quarter of 2019, we recognized net income tax provision of $318.3 million, which included an increase in the valuation allowance in connection with the Luxembourg net operating loss carryforward of $291.5 million, the impact of a decrease in the Luxembourg statutory income tax rate on deferred taxes of $1.7 million and foreign income tax reserves of $5.6 million. During the second quarter of 2019, we recognized $12.3 million as a result of the change in the Luxembourg statutory income tax rate on deferred taxes. See Note 22. (3) During the first quarter of 2020, second quarter of 2020, third quarter of 2020 and fourth quarter of 2020, we recognized unrealized (losses) gains from our investment in RESI common shares of $(1.3) million, $(11.2) million, $0.1 million and $16.4 million, respectively. During the first quarter of 2019, second quarter of 2019, third quarter of 2019 and fourth quarter of 2019, we recognized unrealized gains (losses) from our investment in RESI common shares of $2.2 million, $11.8 million, $(2.3) million and $2.7 million, respectively. See Note 5. (4) In August 2018, we initiated Project Catalyst, a restructuring plan intended to optimize our operations and reduce costs to align our cost structure with our anticipated revenues and improve our operating margins. During the first quarter of 2020, second quarter of 2020, third quarter of 2020 and fourth quarter of 2020, we recognized $2.9 million, $5.8 million, $2.2 million and $1.1 million, respectively, of severance costs, professional services fees, facility consolidation costs, technology costs and business wind down costs related to the restructuring plan. During the first quarter of 2019, second quarter of 2019, third quarter of 2019 and fourth quarter of 2019, we recognized $4.4 million, $1.9 million, $2.8 million and $5.0 million, respectively, of severance costs, professional services fees, facility consolidation costs, technology costs and business wind down costs related to the restructuring plan. See Note 24. (5) In connection with a United States Supreme Court decision in June 2018, we analyzed our services for potential exposure to sales tax in various jurisdictions in the United States and recognized a net loss reimbursement of $(0.6) million and $(2.1) million for the third and fourth quarter of 2020, respectively. In addition, we recognized a net (loss reimbursement) loss of $2.1 million and $(1.7) million in the first and third quarter of 2019, respectively. See Note 25. (6) During the third quarter of 2020 we recognized $0.7 million of severance in connection with cost savings initiatives (no comparable amounts in 2019). (7) In July 2019, we sold the Financial Services Business to TSI for $44.0 million consisting of an up-front payment of $40.0 million, subject to a working capital adjustment and transaction costs upon closing of the sale, and an additional $4.0 million payment on the one year anniversary of the sale closing. We recognized a $17.6 million pretax gain on sale in the third quarter of 2019 and a working capital true-up gain of an additional $0.3 million in the fourth quarter of 2019. See Note 4. (8) In connection with the wind down of Owners.com, we wrote off $5.2 million of goodwill and $0.7 million of intangible assets during the fourth quarter of 2019. In November 2018, we announced our plans to sell the BRS Inventory and discontinue the BRS business. During the second quarter of 2019, we recognized a loss on the sale of the BRS Inventory of $1.8 million. See Note 8. |
ORGANIZATION (Details)
ORGANIZATION (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)term | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Principles of Consolidation | |||
Total assets | $ 265,685 | $ 394,256 | |
Defined Contribution 401(k) Plan | |||
Expense recorded for discretionary amounts contributed | $ 600 | $ 900 | $ 1,200 |
Pointillist, Inc. | |||
Principles of Consolidation | |||
Noncontrolling ownership percentage | 12.10% | ||
Variable Interest Entity, Primary Beneficiary | |||
Principles of Consolidation | |||
Number of agreement terms | term | 3 | ||
Agreement term | 5 years | ||
Total assets | $ 2,300 | $ 1,600 | |
Total liabilities | $ 100 | 300 | |
Minimum | |||
Intangible Assets, Net | |||
Estimated useful life | 4 years | ||
Maximum | |||
Intangible Assets, Net | |||
Estimated useful life | 20 years | ||
Furniture and fixtures | |||
Premises and Equipment, Net | |||
Estimated useful lives | 5 years | ||
Office equipment | |||
Premises and Equipment, Net | |||
Estimated useful lives | 5 years | ||
Computer hardware | Minimum | |||
Premises and Equipment, Net | |||
Estimated useful lives | 3 years | ||
Computer hardware | Maximum | |||
Premises and Equipment, Net | |||
Estimated useful lives | 5 years | ||
Computer software | Minimum | |||
Premises and Equipment, Net | |||
Estimated useful lives | 3 years | ||
Computer software | Maximum | |||
Premises and Equipment, Net | |||
Estimated useful lives | 7 years | ||
Leasehold improvements | |||
Premises and Equipment, Net | |||
Estimated useful lives | 10 years | ||
Pointillist, Inc. | |||
Principles of Consolidation | |||
Contributions for the creation of Pointillist | $ 8,500 |
CUSTOMER CONCENTRATION (Details
CUSTOMER CONCENTRATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||||||||||
Revenue | $ 59,966 | $ 88,795 | $ 95,342 | $ 121,444 | $ 140,688 | $ 141,493 | $ 196,535 | $ 169,935 | $ 365,547 | $ 648,651 | $ 838,202 |
Supplier Concentration Risk | Service Renewals | Maximum | Ocwen | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk | 100.00% | ||||||||||
Supplier Concentration Risk | Service Renewals | Minimum | Ocwen | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk | 90.00% | ||||||||||
Ocwen | NRZ | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Subservice transferred subject MSRs, initial term | 5 years | ||||||||||
Ocwen | Customer Concentration Risk | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Accounts receivable from largest customer | 5,900 | 19,100 | $ 5,900 | 19,100 | |||||||
Ocwen | Customer Concentration Risk | Billed | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Accounts receivable from largest customer | 5,100 | 15,700 | 5,100 | 15,700 | |||||||
Ocwen | Customer Concentration Risk | Unbilled | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Accounts receivable from largest customer | $ 800 | $ 3,400 | $ 800 | $ 3,400 | |||||||
Ocwen | Customer Concentration Risk | Revenue | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk | 54.00% | 56.00% | 52.00% | ||||||||
Revenue | $ 197,800 | $ 362,700 | $ 437,400 | ||||||||
Ocwen | Customer Concentration Risk | Revenue | NRZ | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk | 36.00% | ||||||||||
Highly Correlated - Ocwen | Customer Concentration Risk | Revenue | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk | 7.00% | ||||||||||
Revenue | $ 23,800 | 37,500 | 47,100 | ||||||||
Ocwen, Investor | Mortgage Servicing Rights | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenue | 70,100 | 150,200 | 171,000 | ||||||||
Ocwen, Investor | Default Valuations and Title Services | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenue | $ 18,200 | 33,200 | 40,100 | ||||||||
NRZ | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Subservice transferred subject MSRs, initial term | 5 years | ||||||||||
NRZ | Customer Concentration Risk | Revenue | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenue | $ 8,600 | 12,500 | 28,700 | ||||||||
Highly Correlated - NRZ | Customer Concentration Risk | Revenue | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenue | $ 35,100 | $ 60,000 | $ 83,600 |
SALE OF BUSINESS (Details)
SALE OF BUSINESS (Details) $ in Thousands | Jan. 13, 2021USD ($) | Jul. 01, 2019USD ($) | Aug. 31, 2018USD ($)installment | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 01, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain on sale of business | $ 0 | $ 17,814 | $ 13,688 | |||||
Proceeds from the sale of business | 3,307 | 38,632 | $ 15,000 | |||||
Long-term receivable | $ 2,531 | 2,371 | ||||||
Financial Services Business | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Total proceeds from the sale of business | $ 44,000 | |||||||
Payment included in consideration, subject to working capital adjustment upon closing of the sale | 40,000 | $ 3,300 | ||||||
Additional payment to be received on one-year anniversary of the sale closing | $ 4,000 | |||||||
Gain on sale of business | $ 17,600 | $ 17,800 | ||||||
Transition services extension term | 3 months | |||||||
Rental Property Management Business | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Total proceeds from the sale of business | $ 18,000 | |||||||
Number of installment payments | installment | 2 | |||||||
Proceeds from the sale of business | $ 15,000 | |||||||
Future proceeds from the sale of business | $ 3,000 | |||||||
Rental Property Management Business | Discontinued Operations, Disposed of by Sale | Subsequent Event | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from the sale of business | $ 3,000 | |||||||
Minimum | Financial Services Business | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Transition services agreement term | 2 months | |||||||
Maximum | Financial Services Business | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Transition services agreement term | 13 months |
INVESTMENT IN EQUITY SECURITI_2
INVESTMENT IN EQUITY SECURITIES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2017 | |
Marketable Securities [Line Items] | |||||||||||||
Investment in equity securities | $ 0 | $ 42,618,000 | $ 0 | $ 42,618,000 | |||||||||
Equity | $ (82,556,000) | $ (21,357,000) | (82,556,000) | (21,357,000) | $ 296,668,000 | $ 339,985,000 | |||||||
Proceeds received from sale of equity securities | $ 46,622,000 | $ 7,994,000 | 0 | ||||||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||||||
Marketable Securities [Line Items] | |||||||||||||
Equity | (10,448,000) | ||||||||||||
Altisource Residential Corporation | |||||||||||||
Marketable Securities [Line Items] | |||||||||||||
Number of available for sale shares acquired (in shares) | 4,100,000 | ||||||||||||
Number of securities outstanding (in shares) | 0 | 3,500,000 | 0 | 3,500,000 | |||||||||
Investment in equity securities | $ 0 | $ 42,600,000 | $ 0 | $ 42,600,000 | 36,200,000 | ||||||||
Unrealized gain (loss) on investment in equity securities | 16,400,000 | $ 100,000 | $ (11,200,000) | $ (1,300,000) | 2,700,000 | $ (2,300,000) | $ 11,800,000 | $ 2,200,000 | 4,000,000 | 14,400,000 | (13,000,000) | ||
Unrealized gain (loss) from sale | 4,100,000 | 2,000,000 | 0 | ||||||||||
Investment income, dividend | $ 500,000 | $ 1,700,000 | 2,500,000 | ||||||||||
Number of shares disposed (in shares) | 3,500,000 | 700,000 | |||||||||||
Proceeds received from sale of equity securities | $ 46,600,000 | $ 8,000,000 | |||||||||||
Accumulated other comprehensive income (loss) | |||||||||||||
Marketable Securities [Line Items] | |||||||||||||
Equity | 0 | 0 | 0 | 0 | 0 | 733,000 | |||||||
Accumulated other comprehensive income (loss) | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||||
Marketable Securities [Line Items] | |||||||||||||
Equity | (733,000) | ||||||||||||
Accumulated other comprehensive income (loss) | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||||
Marketable Securities [Line Items] | |||||||||||||
Equity | (700,000) | ||||||||||||
Retained earnings | |||||||||||||
Marketable Securities [Line Items] | |||||||||||||
Equity | $ 190,383,000 | $ 272,026,000 | $ 190,383,000 | $ 272,026,000 | $ 590,655,000 | 626,600,000 | |||||||
Retained earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||||
Marketable Securities [Line Items] | |||||||||||||
Equity | (9,715,000) | ||||||||||||
Retained earnings | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||||
Marketable Securities [Line Items] | |||||||||||||
Equity | $ 700,000 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts receivable, net | |||
Accounts receivable, gross | $ 27,994 | $ 48,087 | |
Less: Allowance for credit losses | (5,581) | (4,472) | |
Total | 22,413 | 43,615 | |
Bad debt expense | 2,229 | 720 | $ 2,830 |
Billed | |||
Accounts receivable, net | |||
Accounts receivable, gross | 19,703 | 35,921 | |
Unbilled | |||
Accounts receivable, net | |||
Accounts receivable, gross | $ 8,291 | $ 12,166 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Maintenance agreements, current portion | $ 2,513 | $ 1,923 |
Income taxes receivable | 7,053 | 5,098 |
Prepaid expenses | 4,812 | 3,924 |
Other current assets | 5,101 | 4,269 |
Total | $ 19,479 | $ 15,214 |
DISCONTINUATION OF LINES OF B_2
DISCONTINUATION OF LINES OF BUSINESS (Details) - Owners.com - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Goodwill impairment | $ 5.2 | $ 5.2 |
Intangible asset impairment | $ 0.7 | $ 0.7 |
PREMISES AND EQUIPMENT, NET (De
PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PREMISES AND EQUIPMENT, NET | |||
Premises and equipment, gross | $ 75,328 | $ 181,187 | |
Less: Accumulated depreciation and amortization | (63,434) | (156,661) | |
Total | 11,894 | 24,526 | |
Depreciation and amortization expense | 14,890 | 18,509 | $ 30,799 |
Computer hardware and software | |||
PREMISES AND EQUIPMENT, NET | |||
Premises and equipment, gross | 52,837 | 144,608 | |
Leasehold improvements | |||
PREMISES AND EQUIPMENT, NET | |||
Premises and equipment, gross | 14,792 | 23,800 | |
Furniture and fixtures | |||
PREMISES AND EQUIPMENT, NET | |||
Premises and equipment, gross | 5,882 | 8,775 | |
Office equipment and other | |||
PREMISES AND EQUIPMENT, NET | |||
Premises and equipment, gross | $ 1,817 | $ 4,004 |
PREMISES AND EQUIPMENT, NET - S
PREMISES AND EQUIPMENT, NET - Summary by Country (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 11,894 | $ 24,526 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 5,530 | 13,426 |
Luxembourg | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 5,451 | 10,295 |
India | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 822 | 671 |
Uruguay | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 91 | 39 |
Philippines | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 0 | $ 95 |
RIGHT-OF-USE ASSETS UNDER OPE_3
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Leases [Abstract] | ||||
Right-of-use assets under operating leases | $ 31,932,000 | $ 39,729,000 | ||
Less: Accumulated amortization | (13,719,000) | (10,655,000) | ||
Total | 18,213,000 | 29,074,000 | $ 42,100,000 | |
Amortization of right-of-use assets under operating leases | $ 10,245,000 | $ 11,769,000 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended |
Dec. 31, 2019 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Balance at the beginning of the period | $ 81,387 | $ 81,387 |
Balance at the end of the period | 73,849 | 73,849 |
Discontinued Operations, Disposed of by Sale | Financial Services Business | ||
Goodwill [Roll Forward] | ||
Disposition/Write-off | (2,400) | (2,378) |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Owners.com | ||
Goodwill [Roll Forward] | ||
Disposition/Write-off | $ (5,200) | $ (5,160) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets, Net | |||
Gross carrying amount | $ 262,712 | $ 264,957 | |
Accumulated amortization | (216,386) | (203,911) | |
Net book value | 46,326 | 61,046 | |
Amortization expense for definite lived intangible assets | 14,720 | 19,021 | $ 28,412 |
Amortization expense, 2021 | 9,500 | ||
Amortization expense, 2022 | 5,100 | ||
Amortization expense, 2023 | 5,100 | ||
Amortization expense, 2024 | 5,100 | ||
Amortization expense, 2025 | 5,100 | ||
Customer related intangible assets | |||
Intangible Assets, Net | |||
Gross carrying amount | 214,973 | 214,973 | |
Accumulated amortization | (187,923) | (176,043) | |
Net book value | $ 27,050 | 38,930 | |
Customer related intangible assets | Weighted average | |||
Intangible Assets, Net | |||
Estimated useful life | 9 years | ||
Operating agreement | |||
Intangible Assets, Net | |||
Gross carrying amount | $ 35,000 | 35,000 | |
Accumulated amortization | (19,126) | (17,376) | |
Net book value | $ 15,874 | 17,624 | |
Operating agreement | Weighted average | |||
Intangible Assets, Net | |||
Estimated useful life | 20 years | ||
Trademarks and trade names | |||
Intangible Assets, Net | |||
Gross carrying amount | $ 9,709 | 9,709 | |
Accumulated amortization | (6,307) | (5,893) | |
Net book value | $ 3,402 | 3,816 | |
Trademarks and trade names | Weighted average | |||
Intangible Assets, Net | |||
Estimated useful life | 16 years | ||
Non-compete agreements | |||
Intangible Assets, Net | |||
Gross carrying amount | $ 1,230 | 1,230 | |
Accumulated amortization | (1,230) | (1,215) | |
Net book value | $ 0 | 15 | |
Non-compete agreements | Weighted average | |||
Intangible Assets, Net | |||
Estimated useful life | 4 years | ||
Intellectual property | |||
Intangible Assets, Net | |||
Gross carrying amount | $ 0 | 300 | |
Accumulated amortization | 0 | (175) | |
Net book value | $ 0 | 125 | |
Intellectual property | Weighted average | |||
Intangible Assets, Net | |||
Estimated useful life | 0 years | ||
Other intangible assets | |||
Intangible Assets, Net | |||
Gross carrying amount | $ 1,800 | 3,745 | |
Accumulated amortization | (1,800) | (3,209) | |
Net book value | $ 0 | $ 536 | |
Other intangible assets | Weighted average | |||
Intangible Assets, Net | |||
Estimated useful life | 5 years |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Security deposits | $ 2,416 | $ 3,473 |
Restricted cash | 3,833 | 3,842 |
Other | 3,601 | 3,495 |
Total | $ 9,850 | $ 10,810 |
ACCOUNTS PAYABLE, ACCRUED EXP_3
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable | $ 16,797 | $ 22,431 |
Accrued expenses - general | 24,422 | 24,558 |
Accrued salaries and benefits | 11,226 | 18,982 |
Income taxes payable | 4,334 | 1,700 |
Total | $ 56,779 | $ 67,671 |
ACCOUNTS PAYABLE, ACCRUED EXP_4
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Payables and Accruals [Abstract] | |||
Operating lease liabilities | $ 7,609 | $ 11,398 | $ 16,700 |
Other | 1,696 | 3,326 | |
Total | $ 9,305 | $ 14,724 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 03, 2018 |
Debt Instrument [Line Items] | |||
Gross, long-term debt | $ 247,204 | ||
Less: Debt issuance costs, net | (2,389) | $ (3,119) | |
Less: Unamortized discount, net | (2,159) | (2,825) | |
Long-term debt | 242,656 | 287,882 | |
Senior secured term loans | |||
Debt Instrument [Line Items] | |||
Gross, long-term debt | $ 247,204 | $ 293,826 | $ 412,100 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) shares in Millions | Dec. 31, 2020USD ($) | Apr. 30, 2018USD ($)lender | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Apr. 03, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||
Gross, long-term debt | $ 247,204,000 | $ 247,204,000 | ||||||
Loss on debt refinancing | 0 | $ 0 | $ 4,434,000 | |||||
Proceeds received from sale of equity securities | 46,622,000 | 7,994,000 | 0 | |||||
Debt issuance costs, net | 2,389,000 | 2,389,000 | 3,119,000 | |||||
Accumulated amortization | $ (2,200,000) | (2,200,000) | (1,400,000) | |||||
Interest on long-term debt | $ 17,730,000 | $ 21,393,000 | 26,254,000 | |||||
Altisource Residential Corporation | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of shares disposed (in shares) | shares | 3.5 | 0.7 | ||||||
Proceeds received from sale of equity securities | $ 46,600,000 | $ 8,000,000 | ||||||
Term B Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio to be maintained under the credit facility covenants | 3 | |||||||
Covenant threshold, leverage ratio | 3.50 | 3.50 | 3.50 | |||||
Term B Loans | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of principal or interest if failed to pay considered as event of default | $ 40,000,000 | |||||||
Amount of debt which results in acceleration of debt if failed to pay considered as event of default | 40,000,000 | |||||||
Amount of unbonded, undischarged or unstayed debt under entry by court of one or more judgments for certain period to determine as event of default | $ 40,000,000 | |||||||
Senior secured term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Gross, long-term debt | $ 247,204,000 | $ 247,204,000 | 293,826,000 | $ 412,100,000 | ||||
Loss on debt refinancing | $ 4,400,000 | |||||||
Interest on long-term debt | $ 17,700,000 | 21,400,000 | 26,300,000 | |||||
April 3, 2018 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of incremental lenders (or more) | lender | 1 | |||||||
Increase in incremental indebtedness limit | $ 125,000,000 | |||||||
April 3, 2018 Credit Agreement | Term B Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 412,000,000 | |||||||
Interest rate at the end of the period | 5.00% | 5.00% | ||||||
April 3, 2018 Credit Agreement | Term B Loans | Adjusted Eurodollar Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed interest rate base | 1.00% | |||||||
Interest rate margin | 4.00% | |||||||
April 3, 2018 Credit Agreement | Term B Loans | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed interest rate base | 2.00% | |||||||
Interest rate margin | 3.00% | |||||||
April 3, 2018 Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 15,000,000 | |||||||
Gross, long-term debt | $ 0 | $ 0 | ||||||
Covenant threshold, leverage ratio | 3.50 | |||||||
Increase in incremental indebtedness limit | $ 80,000,000 | |||||||
Unused commitment fee | 0.50% | |||||||
April 3, 2018 Credit Agreement | Line of Credit | Revolving Credit Facility | Adjusted Eurodollar Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 4.00% | |||||||
April 3, 2018 Credit Agreement | Line of Credit | Revolving Credit Facility | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.00% | |||||||
Financial Services Business | Discontinued Operations, Disposed of by Sale | Senior secured term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 37,000,000 | |||||||
Buy-Renovate-Lease-Sell Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Term B Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 49,900,000 | |||||||
Rental Property Management Business | Discontinued Operations, Disposed of by Sale | Term B Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 15,000,000 |
LONG-TERM DEBT - Schedule of Ma
LONG-TERM DEBT - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 0 |
2022 | 0 |
2023 | 0 |
2024 | 247,204 |
Total | $ 247,204 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Other Liabilities Disclosure [Abstract] | |||
Operating lease liabilities | $ 12,281 | $ 19,707 | $ 28,800 |
Income tax liabilities | 12,414 | 10,935 | |
Deferred revenue | 504 | 88 | |
Other non-current liabilities | 40 | 286 | |
Total | $ 25,239 | $ 31,016 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 58,263 | $ 82,741 |
Restricted cash | 3,833 | 3,842 |
Investment in equity securities | 0 | 42,618 |
Long-term receivable | 2,531 | 2,371 |
Senior secured term loan | ||
Liabilities: | ||
Senior secured term loan | 247,204 | 293,826 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash and cash equivalents | 58,263 | 82,741 |
Restricted cash | 3,833 | 3,842 |
Investment in equity securities | 0 | 42,618 |
Long-term receivable | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Senior secured term loan | ||
Liabilities: | ||
Senior secured term loan | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Investment in equity securities | 0 | 0 |
Long-term receivable | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | Senior secured term loan | ||
Liabilities: | ||
Senior secured term loan | 201,472 | 277,666 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Investment in equity securities | 0 | 0 |
Long-term receivable | 2,531 | 2,371 |
Level 3 | Fair Value, Measurements, Recurring | Senior secured term loan | ||
Liabilities: | ||
Senior secured term loan | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | Jan. 13, 2021 | Aug. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Proceeds from the sale of businesses | $ 3,307 | $ 38,632 | $ 15,000 | ||
Ocwen | Revenue | Customer Concentration Risk | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Concentration risk | 54.00% | 56.00% | 52.00% | ||
Altisource Residential Corporation | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Number of securities outstanding (in shares) | 0 | 3,500,000 | |||
Discontinued Operations, Disposed of by Sale | Rental Property Management Business | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Future proceeds from the sale of business | $ 3,000 | ||||
Proceeds from the sale of businesses | $ 15,000 | ||||
Discontinued Operations, Disposed of by Sale | Rental Property Management Business | Subsequent Event | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Proceeds from the sale of businesses | $ 3,000 |
SHAREHOLDERS' EQUITY AND SHAR_3
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands | Dec. 31, 2020USD ($)shares | May 15, 2018$ / sharesshares | Feb. 28, 2019shares | Apr. 30, 2018 | Dec. 31, 2020USD ($)votecomponent$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)employee$ / sharesshares |
Common Stock [Abstract] | |||||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Common stock, shares issued (in shares) | 25,413,000 | 25,413,000 | 25,413,000 | ||||
Common stock, shares outstanding (in shares) | 15,664,000 | 15,664,000 | 15,454,000 | ||||
Voting rights per share | vote | 1 | ||||||
Equity Incentive Plan [Abstract] | |||||||
Maximum number of Altisource share-based awards that can be granted under the Plan (in shares) | 6,700,000 | 6,700,000 | |||||
Share-based awards available for future grants under the Plan (in shares) | 1,000,000 | 1,000,000 | |||||
Share Repurchase Program [Abstract] | |||||||
Authorized amount (approximately) | $ | $ 91,000 | $ 91,000 | |||||
Capacity available to repurchase common stock under senior secured term loan | $ | 430,000 | 430,000 | |||||
Share-Based Compensation [Abstract] | |||||||
Share-based compensation expense | $ | 7,800 | $ 11,900 | $ 10,200 | ||||
Estimated unrecognized compensation costs | $ | $ 6,600 | $ 6,600 | |||||
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized | 1 year 5 months 23 days | ||||||
Options outstanding (in shares) | 899,914 | 899,914 | 1,468,046 | ||||
Plan modification, number of stock options affected (in shares) | 263,000 | ||||||
Plan modification, number of employees affected | employee | 16 | ||||||
Weighted average fair value of stock options granted and total intrinsic value of stock options exercised | |||||||
Weighted average fair value at grant date per share (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 16.31 | ||||
Intrinsic value of options exercised | $ | $ 0 | $ 54 | $ 4,609 | ||||
Grant date fair value of stock options that vested | $ | $ 2,730 | $ 3,053 | $ 1,760 | ||||
Term B Loans | |||||||
Share Repurchase Program [Abstract] | |||||||
Covenant threshold, leverage ratio | 3.50 | 3.50 | 3.50 | ||||
Stock Repurchase Program, Current | |||||||
Share Repurchase Program [Abstract] | |||||||
Number of shares of common stock authorized to be purchased (in shares) | 4,300,000 | ||||||
Percentage of outstanding shares authorized to be repurchased | 25.00% | ||||||
Minimum purchase price authorized (in dollars per share) | $ / shares | $ 1 | ||||||
Maximum purchase price authorized (in dollars per share) | $ / shares | $ 500 | ||||||
Stock repurchase program, period in force | 5 years | ||||||
Remaining number of shares available for repurchase under the plan (in shares) | 2,400,000 | 2,400,000 | |||||
Stock Repurchase Programs | |||||||
Share Repurchase Program [Abstract] | |||||||
Number of shares of common stock purchased (in shares) | 0 | 1,000,000 | 1,600,000 | ||||
Average purchase price per share (in dollars per share) | $ / shares | $ 20.33 | $ 25.53 | |||||
Stock Options | |||||||
Share-Based Compensation [Abstract] | |||||||
Performance criteria achieved (in shares) | 228,000 | ||||||
Stock options granted, approximate (in shares) | 0 | 0 | 277,000 | ||||
Weighted average exercise price of stock options granted (in dollars per share) | $ / shares | $ 25.15 | ||||||
Stock Options | Black-Scholes | |||||||
Assumptions used to determine the fair value of options as of the grant date | |||||||
Expected dividend yield | 0.00% | ||||||
Stock Options | Binomial | |||||||
Assumptions used to determine the fair value of options as of the grant date | |||||||
Expected dividend yield | 0.00% | ||||||
Stock Options | Minimum | Black-Scholes | |||||||
Assumptions used to determine the fair value of options as of the grant date | |||||||
Risk-free interest rate (%) | 2.66% | ||||||
Expected stock price volatility (%) | 70.31% | ||||||
Expected option life (in years) | 6 years | ||||||
Fair value (in usd per share) | $ / shares | $ 16.17 | ||||||
Stock Options | Minimum | Binomial | |||||||
Assumptions used to determine the fair value of options as of the grant date | |||||||
Risk-free interest rate (%) | 1.64% | ||||||
Expected stock price volatility (%) | 71.36% | ||||||
Expected option life (in years) | 2 years 6 months 21 days | ||||||
Fair value (in usd per share) | $ / shares | $ 14.67 | ||||||
Stock Options | Maximum | Black-Scholes | |||||||
Assumptions used to determine the fair value of options as of the grant date | |||||||
Risk-free interest rate (%) | 3.10% | ||||||
Expected stock price volatility (%) | 71.86% | ||||||
Expected option life (in years) | 6 years 3 months | ||||||
Fair value (in usd per share) | $ / shares | $ 19.68 | ||||||
Stock Options | Maximum | Binomial | |||||||
Assumptions used to determine the fair value of options as of the grant date | |||||||
Risk-free interest rate (%) | 3.22% | ||||||
Expected stock price volatility (%) | 71.86% | ||||||
Expected option life (in years) | 4 years 3 months 29 days | ||||||
Fair value (in usd per share) | $ / shares | $ 20.26 | ||||||
Stock Options, Service-Based | |||||||
Share-Based Compensation [Abstract] | |||||||
Options outstanding (in shares) | 253,000 | 253,000 | |||||
Stock Options, Service-Based | Minimum | |||||||
Share-Based Compensation [Abstract] | |||||||
Vesting period | 3 years | ||||||
Stock Options, Service-Based | Maximum | |||||||
Share-Based Compensation [Abstract] | |||||||
Vesting period | 4 years | ||||||
Expiration term | 10 years | ||||||
Stock Options, Market-Based | |||||||
Share-Based Compensation [Abstract] | |||||||
Options outstanding (in shares) | 201,000 | 201,000 | |||||
Number of components of an award | component | 2 | ||||||
Allowable performance period before expiration date | 3 years | ||||||
Stock Options, Market-Based | Minimum | |||||||
Share-Based Compensation [Abstract] | |||||||
Vesting period | 3 years | ||||||
Expiration term | 10 years | ||||||
Stock Options, Market-Based | Maximum | |||||||
Share-Based Compensation [Abstract] | |||||||
Vesting period | 4 years | ||||||
Stock Options, Market-Based, Ordinary Performance | |||||||
Share-Based Compensation [Abstract] | |||||||
Percentage of awards | 67.00% | 67.00% | |||||
Vesting threshold | 2 | 2 | |||||
Stock Options, Market-Based, Ordinary Performance | Minimum | |||||||
Share-Based Compensation [Abstract] | |||||||
Percentage of compounded annual gain of stock price over exercise price required for the award to vest | 20.00% | ||||||
Stock Options, Market-Based, Extraordinary Performance | |||||||
Share-Based Compensation [Abstract] | |||||||
Percentage of awards | 33.00% | 33.00% | |||||
Stock Options, Market-Based, Extraordinary Performance | Minimum | |||||||
Share-Based Compensation [Abstract] | |||||||
Percentage of compounded annual gain of stock price over exercise price required for the award to vest | 25.00% | ||||||
Stock Options, Performance-Based | |||||||
Share-Based Compensation [Abstract] | |||||||
Options outstanding (in shares) | 446,000 | 446,000 | |||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche One | |||||||
Share-Based Compensation [Abstract] | |||||||
Award vesting rights, percentage | 25.00% | ||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Two | |||||||
Share-Based Compensation [Abstract] | |||||||
Award vesting rights, percentage | 25.00% | ||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Three | |||||||
Share-Based Compensation [Abstract] | |||||||
Award vesting rights, percentage | 25.00% | ||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Four | |||||||
Share-Based Compensation [Abstract] | |||||||
Award vesting rights, percentage | 25.00% | ||||||
Stock Options, Performance-Based | Minimum | |||||||
Share-Based Compensation [Abstract] | |||||||
Allowable performance period before expiration date | 10 years | ||||||
Attainment above threshold performance levels, vesting percentage | 50.00% | ||||||
Stock Options, Performance-Based | Maximum | |||||||
Share-Based Compensation [Abstract] | |||||||
Attainment above threshold performance levels, vesting percentage | 200.00% |
SHAREHOLDERS' EQUITY AND SHAR_4
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of options | ||
Outstanding at the beginning of the period (in shares) | 1,468,046 | |
Forfeited (in shares) | (568,132) | |
Outstanding at the end of the period (in shares) | 899,914 | 1,468,046 |
Exercisable at the end of the period (in shares) | 557,620 | |
Weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 29.19 | |
Forfeited (in dollars per share) | 24 | |
Outstanding at the end of the period (in dollars per share) | 32.47 | $ 29.19 |
Exercisable at the end of the period (in dollars per share) | $ 28.69 | |
Weighted average contractual term (in years) | ||
Weighted average contractual term | 5 years 7 months 17 days | 4 years 7 months 6 days |
Exercisable at the end of the period | 5 years 5 months 12 days | |
Aggregate intrinsic value (in thousands) | ||
Aggregate intrinsic value (in dollars) | $ 0 | $ 94 |
Exercisable at the end of the period (in dollars) | $ 0 |
SHAREHOLDERS' EQUITY AND SHAR_5
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Stock option information (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Options outstanding | |
Number (in shares) | shares | 899,914 |
Options exercisable | |
Number (in shares) | shares | 557,620 |
$10.01 — $20.00 | |
Stock options outstanding and exercisable | |
Exercise price, low end of range (in dollars per share) | $ 10.01 |
Exercise price, high end of range (in dollars per share) | $ 20 |
Options outstanding | |
Number (in shares) | shares | 154,200 |
Weighted average remaining contractual life (in years) | 4 years 3 months 14 days |
Weighted average exercise price (in dollars per share) | $ 18.79 |
Options exercisable | |
Number (in shares) | shares | 150,038 |
Weighted average remaining contractual life (in years) | 4 years 3 months 14 days |
Weighted average exercise price (in dollars per share) | $ 18.79 |
$20.01 — $30.00 | |
Stock options outstanding and exercisable | |
Exercise price, low end of range (in dollars per share) | 20.01 |
Exercise price, high end of range (in dollars per share) | $ 30 |
Options outstanding | |
Number (in shares) | shares | 548,348 |
Weighted average remaining contractual life (in years) | 6 years 2 months 4 days |
Weighted average exercise price (in dollars per share) | $ 25.19 |
Options exercisable | |
Number (in shares) | shares | 324,937 |
Weighted average remaining contractual life (in years) | 5 years 9 months 7 days |
Weighted average exercise price (in dollars per share) | $ 25.19 |
$30.01 — $40.00 | |
Stock options outstanding and exercisable | |
Exercise price, low end of range (in dollars per share) | 30.01 |
Exercise price, high end of range (in dollars per share) | $ 40 |
Options outstanding | |
Number (in shares) | shares | 68,866 |
Weighted average remaining contractual life (in years) | 6 years 29 days |
Weighted average exercise price (in dollars per share) | $ 33.32 |
Options exercisable | |
Number (in shares) | shares | 21,270 |
Weighted average remaining contractual life (in years) | 5 years 7 months 2 days |
Weighted average exercise price (in dollars per share) | $ 33.32 |
$60.01 — $70.00 | |
Stock options outstanding and exercisable | |
Exercise price, low end of range (in dollars per share) | 60.01 |
Exercise price, high end of range (in dollars per share) | $ 70 |
Options outstanding | |
Number (in shares) | shares | 58,500 |
Weighted average remaining contractual life (in years) | 1 year 2 months 8 days |
Weighted average exercise price (in dollars per share) | $ 60.76 |
Options exercisable | |
Number (in shares) | shares | 43,875 |
Weighted average remaining contractual life (in years) | 1 year 2 months 8 days |
Weighted average exercise price (in dollars per share) | $ 60.76 |
$80.01 — $90.00 | |
Stock options outstanding and exercisable | |
Exercise price, low end of range (in dollars per share) | 80.01 |
Exercise price, high end of range (in dollars per share) | $ 90 |
Options outstanding | |
Number (in shares) | shares | 25,000 |
Weighted average remaining contractual life (in years) | 3 years 7 months 6 days |
Weighted average exercise price (in dollars per share) | $ 86.69 |
Options exercisable | |
Number (in shares) | shares | 6,250 |
Weighted average remaining contractual life (in years) | 3 years 7 months 6 days |
Weighted average exercise price (in dollars per share) | $ 86.69 |
$90.01 — $100.00 | |
Stock options outstanding and exercisable | |
Exercise price, low end of range (in dollars per share) | 90.01 |
Exercise price, high end of range (in dollars per share) | $ 100 |
Options outstanding | |
Number (in shares) | shares | 45,000 |
Weighted average remaining contractual life (in years) | 3 years 2 months 4 days |
Weighted average exercise price (in dollars per share) | $ 95.67 |
Options exercisable | |
Number (in shares) | shares | 11,250 |
Weighted average remaining contractual life (in years) | 3 years 2 months 4 days |
Weighted average exercise price (in dollars per share) | $ 95.67 |
SHAREHOLDERS' EQUITY AND SHAR_6
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Market-based options vesting prices (Details) | Dec. 31, 2020$ / sharesshares |
Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 83,374 |
Market-based options, weighted average share price (in dollars per share) | $ / shares | $ 55.14 |
Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 67,724 |
Market-based options, weighted average share price (in dollars per share) | $ / shares | $ 50.67 |
$50.01 — $60.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, low end of range (in dollars per share) | $ / shares | 50.01 |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 60 |
$50.01 — $60.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 36,726 |
$50.01 — $60.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 4,162 |
$60.01 — $70.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, low end of range (in dollars per share) | $ / shares | $ 60.01 |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 70 |
$60.01 — $70.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 11,648 |
$60.01 — $70.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 6,250 |
$70.01 — $80.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, low end of range (in dollars per share) | $ / shares | $ 70.01 |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 80 |
$70.01 — $80.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 0 |
$70.01 — $80.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 11,500 |
$80.01 — $90.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, low end of range (in dollars per share) | $ / shares | $ 80.01 |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 90 |
$80.01 — $90.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 0 |
$80.01 — $90.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 7,362 |
$90.01 — $100.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, low end of range (in dollars per share) | $ / shares | $ 90.01 |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 100 |
$90.01 — $100.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 0 |
$90.01 — $100.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 5,325 |
$100.01 — $110.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, low end of range (in dollars per share) | $ / shares | $ 100.01 |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 110 |
$100.01 — $110.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 0 |
$100.01 — $110.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 1,000 |
$170.01 — $180.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, low end of range (in dollars per share) | $ / shares | $ 170.01 |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 180 |
$170.01 — $180.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 12,500 |
$170.01 — $180.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 0 |
$180.01 — $190.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, low end of range (in dollars per share) | $ / shares | $ 180.01 |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 190 |
$180.01 — $190.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 7,500 |
$180.01 — $190.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 14,625 |
Over $190.00 | |
Market prices for market performance options to vest | |
Market-based options, vesting price, high end of range (in dollars per share) | $ / shares | $ 190 |
Over $190.00 | Stock Options, Market-Based, Ordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 15,000 |
Over $190.00 | Stock Options, Market-Based, Extraordinary Performance | |
Market prices for market performance options to vest | |
Market-based options, options expected to vest (in shares) | 17,500 |
SHAREHOLDERS' EQUITY AND SHAR_7
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Restricted stock awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Share-based compensation expense | $ 7.8 | $ 11.9 | $ 10.2 | |
Restricted Shares and Restricted Share Units | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Other than options, outstanding (in shares) | 878,521 | 636,146 | 636,146 | |
Other than options, granted (in shares) | 608,695 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 636,146 | |||
Granted (in shares) | 608,695 | |||
Issued (in shares) | (210,556) | |||
Forfeited/canceled (in shares) | (155,764) | |||
Outstanding, end of period (in shares) | 878,521 | 636,146 | ||
Restricted Shares and Restricted Stock Units (RSUs), Service-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Other than options, outstanding (in shares) | 403,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, end of period (in shares) | 403,000 | |||
Restricted Shares and Restricted Stock Units (RSUs), Performance-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Other than options, outstanding (in shares) | 213,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, end of period (in shares) | 213,000 | |||
Restricted Shares and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche One | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Award vesting rights, percentage | 33.00% | |||
Restricted Shares and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche Two | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Award vesting rights, percentage | 33.00% | |||
Restricted Shares and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche Three | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Award vesting rights, percentage | 33.00% | |||
Restricted Shares and Restricted Stock Units (RSUs), Market-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Other than options, outstanding (in shares) | 194,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, end of period (in shares) | 194,000 | |||
Restricted Shares and Restricted Stock Units (RSUs), Performance-Based and Market-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Other than options, outstanding (in shares) | 69,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, end of period (in shares) | 69,000 | |||
Restricted Share Units | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Other than options, granted (in shares) | 609,000 | |||
Other than options, granted (in dollars per share) | $ 13.47 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Granted (in shares) | 609,000 | |||
Restricted Stock Units (RSUs), Performance-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Other than options, granted (in shares) | 82,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Granted (in shares) | 82,000 | |||
Restricted Stock Units (RSUs), Market-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Other than options, granted (in shares) | 194,000 | 68,000 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Granted (in shares) | 194,000 | 68,000 | 0 | |
Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Other than options, plan modification, affected (in shares) | 31,000 | |||
Pointillist, Inc. | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Shares issued to management for services (in shares) | 1,100,000 | |||
Share-based compensation expense | $ 0.9 | |||
Pointillist, Inc. | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Noncontrolling ownership percentage | 12.10% | |||
Minimum | Restricted Shares and Restricted Stock Units (RSUs), Service-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Vesting period | 2 years | |||
Minimum | Restricted Shares and Restricted Stock Units (RSUs), Market-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Vesting period | 30 days | |||
Award vesting rights, percentage | 50.00% | |||
Maximum | Restricted Shares and Restricted Stock Units (RSUs), Service-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Vesting period | 4 years | |||
Maximum | Restricted Shares and Restricted Stock Units (RSUs), Performance-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Attainment above threshold performance levels, vesting percentage | 150.00% | |||
Maximum | Restricted Shares and Restricted Stock Units (RSUs), Market-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Vesting period | 1 year | |||
Award vesting rights, percentage | 50.00% | |||
Maximum | Restricted Shares and Restricted Stock Units (RSUs), Performance-Based and Market-Based | ||||
Schedule of Share-based compensation, Restricted Stock and Restricted Stock units activity [Line Items] | ||||
Attainment above threshold performance levels, vesting percentage | 300.00% |
SHAREHOLDERS' EQUITY AND SHAR_8
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION - Assumptions Used to Determine the Fair Values for Performance-Based Awards (Details) - Restricted Shares and Restricted Share Units - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Monte Carlo | ||
Equity And Share-Based Compensation | ||
Risk-free interest rate (%) | 2.47% | 2.47% |
Expected stock price volatility (%) | 17.72% | 58.90% |
Expected dividend yield | 0.00% | 0.00% |
Expected option life (in years) | 3 years | 3 years |
Fair value (in usd per share) | $ 0 | $ 20.54 |
Binomial | ||
Equity And Share-Based Compensation | ||
Risk-free interest rate (%), minimum | 0.09% | |
Risk-free interest rate (%) | 0.00% | |
Risk-free interest rate (%), minimum | 0.27% | |
Expected stock price volatility (%) | 80.36% | 0.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected option life (in years) | 2 years | 0 years |
Fair value (in usd per share) | $ 12.58 | $ 0 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | $ 59,966 | $ 88,795 | $ 95,342 | $ 121,444 | $ 140,688 | $ 141,493 | $ 196,535 | $ 169,935 | $ 365,547 | $ 648,651 | $ 838,202 | |
Increase in deferred revenue | 5,461 | 5,183 | 5,461 | 5,183 | ||||||||
Increase in other current liabilities | 9,305 | 14,724 | 9,305 | 14,724 | ||||||||
Decrease in retained earnings | $ (190,383) | $ (272,026) | (190,383) | (272,026) | ||||||||
Revenue recognized that was included in the contract liability at the beginning of the period | 4,800 | 9,800 | 20,600 | |||||||||
Service revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 347,313 | 621,866 | 805,480 | |||||||||
Reimbursable expenses | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 16,285 | 24,172 | 30,039 | |||||||||
Non-controlling interests | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | $ 1,949 | $ 2,613 | $ 2,683 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Increase in deferred revenue | $ 11,200 | |||||||||||
Increase in unbilled accounts receivable | 1,100 | |||||||||||
Increase in other current liabilities | 300 | |||||||||||
Decrease in retained earnings | $ 10,400 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 59,966 | $ 88,795 | $ 95,342 | $ 121,444 | $ 140,688 | $ 141,493 | $ 196,535 | $ 169,935 | $ 365,547 | $ 648,651 | $ 838,202 |
Revenue recognized when services are performed or assets are sold | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 332,084 | 579,929 | 719,739 | ||||||||
Revenue related to technology platforms and professional services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 17,178 | 44,550 | 88,424 | ||||||||
Reimbursable expenses revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 16,285 | $ 24,172 | $ 30,039 |
COST OF REVENUE (Details)
COST OF REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of Revenue [Abstract] | |||
Compensation and benefits | $ 94,365 | $ 135,502 | $ 200,486 |
Outside fees and services | 146,322 | 240,796 | 278,380 |
Technology and telecommunications | 35,912 | 36,302 | 41,588 |
Reimbursable expenses | 16,285 | 24,172 | 30,039 |
Depreciation and amortization | 12,310 | 13,721 | 24,013 |
Cost of real estate sold | 0 | 42,763 | 47,659 |
Total | $ 305,194 | $ 493,256 | $ 622,165 |
SELLING, GENERAL AND ADMINIST_3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selling, General and Administrative Expense [Abstract] | |||
Compensation and benefits | $ 35,521 | $ 49,875 | $ 51,043 |
Occupancy related costs | 19,363 | 26,042 | 30,851 |
Amortization of intangible assets | 14,720 | 19,021 | 28,412 |
Professional services | 11,444 | 14,975 | 16,950 |
Marketing costs | 3,325 | 11,212 | 14,707 |
Depreciation and amortization | 2,580 | 4,788 | 6,786 |
Other | 5,783 | 15,163 | 26,921 |
Total | $ 92,736 | $ 141,076 | $ 175,670 |
OTHER INCOME (EXPENSE), NET (De
OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 114 | $ 342 | $ 740 |
Loss on debt refinancing | 0 | 0 | (4,434) |
Other, net | 261 | 1,006 | 1,824 |
Total | $ 375 | $ 1,348 | $ (1,870) |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income before income taxes and non-controlling interests [Line Items] | |||
Domestic - Luxembourg | $ (50,821) | $ 8,919 | $ (22,513) |
Total | (57,705) | 12,439 | 1,399 |
Foreign - U.S. | |||
Income before income taxes and non-controlling interests [Line Items] | |||
Foreign - U.S. and Non-U.S. | (13,243) | (12,602) | 8,398 |
Foreign - non-U.S. | |||
Income before income taxes and non-controlling interests [Line Items] | |||
Foreign - U.S. and Non-U.S. | $ 6,359 | $ 16,122 | $ 15,514 |
INCOME TAXES - Income Tax (Prov
INCOME TAXES - Income Tax (Provision) Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Domestic - Luxembourg | $ (3,576) | $ (10,957) | $ (9,889) |
Deferred: | |||
Domestic - Luxembourg | (5,033) | (307,339) | 5,791 |
Income tax (provision) benefit | (8,609) | (318,296) | (4,098) |
Domestic - Luxembourg | |||
Current: | |||
Domestic - Luxembourg | (2,158) | 0 | (275) |
Deferred: | |||
Domestic - Luxembourg | 224 | (308,657) | 4,927 |
Foreign - U.S. federal | |||
Current: | |||
Foreign | 4,992 | 187 | (1,838) |
Deferred: | |||
Foreign | (2,808) | 329 | 291 |
Foreign - U.S. state | |||
Current: | |||
Foreign | (322) | (174) | (336) |
Deferred: | |||
Foreign | (465) | 341 | (134) |
Foreign - non-U.S. | |||
Current: | |||
Foreign | (6,088) | (10,970) | (7,440) |
Deferred: | |||
Foreign | $ (1,984) | $ 648 | $ 707 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2019 | |
Tax effects of temporary differences | ||||
Decrease in foreign taxes due to tax holidays | $ 100 | $ 300 | $ 700 | |
Effect on diluted per share due to decrease in foreign tax holiday (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.04 | |
Undistributed earnings | $ 13,800 | |||
Deferred tax liability that would be recognized if earnings were distributed | 500 | |||
Net operating loss carryforwards | 353,358 | $ 338,403 | ||
Operating loss carryforwards | $ 1,415,900 | $ 1,355,400 | ||
Statutory tax rate | 24.94% | 24.94% | 26.01% | |
Operating loss carryback, CARES Act | $ 14,800 | |||
Unrecognized tax benefits that would affect the effective tax rate | 13,200 | $ 13,500 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 4,600 | 3,700 | ||
Domestic - Luxembourg | ||||
Tax effects of temporary differences | ||||
Operating loss carryforwards, valuation allowance | 349,800 | 337,700 | ||
Change in statutory income tax rate | 14,000 | |||
Foreign - U.S. state | ||||
Tax effects of temporary differences | ||||
Income recognized on deferred foreign income | 465 | (341) | $ 134 | |
Operating loss carryforwards, valuation allowance | 800 | 500 | ||
Deferred tax asset relating to tax credits | 900 | 600 | ||
Foreign - U.S. federal | ||||
Tax effects of temporary differences | ||||
Income recognized on deferred foreign income | 2,808 | (329) | (291) | |
Operating loss carryforwards, valuation allowance | 2,400 | 100 | ||
Foreign - non-U.S. | ||||
Tax effects of temporary differences | ||||
Income recognized on deferred foreign income | 1,984 | (648) | $ (707) | |
Change in statutory income tax rate | 1,400 | |||
Philippines | ||||
Tax effects of temporary differences | ||||
Income recognized on deferred foreign income | $ 900 | |||
India | ||||
Tax effects of temporary differences | ||||
Income recognized on deferred foreign income | $ 68,000 | |||
Financial Services Business | Discontinued Operations, Disposed of by Sale | ||||
Tax effects of temporary differences | ||||
Capital loss, deferred tax asset | $ 10,400 |
INCOME TAXES - Summary of Tax E
INCOME TAXES - Summary of Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current deferred tax assets: | ||
Net operating loss carryforwards | $ 353,358 | $ 338,403 |
U.S. federal and state tax credits | 242 | 189 |
Other non-U.S. deferred tax assets | 11,327 | 13,980 |
Share-based compensation | 1,658 | 2,010 |
Accrued expenses | 1,205 | 2,691 |
Unrealized losses | 10,351 | 9,011 |
Other | 0 | 526 |
Non-current deferred tax liabilities: | ||
Intangible assets | (8,133) | (8,325) |
Depreciation | (441) | (302) |
Other non-U.S. deferred tax liability | (7) | (998) |
Other | (736) | 0 |
Deferred tax assets net of deferred tax liabilities | 368,824 | 357,185 |
Valuation allowance | (372,227) | (355,559) |
Non-current deferred tax (liabilities) assets, net | $ (3,403) | |
Non-current deferred tax (liabilities) assets, net | $ 1,626 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Luxembourg Statutory Tax Rate to Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Income Tax Provision to the Luxembourg income tax rate | |||
Statutory tax rate | 24.94% | 24.94% | 26.01% |
Change in valuation allowance | (29.79%) | 2526.53% | 43.08% |
State tax expense | (1.25%) | (1.63%) | 28.58% |
Tax credits | 0.10% | 0.00% | 0.00% |
Uncertain tax positions | (2.94%) | 39.60% | 114.18% |
Unrecognized tax loss | 0.00% | (67.18%) | 0.00% |
Income tax rate change | (2.40%) | 0.00% | 0.00% |
Tax rate differences on foreign earnings | (6.62%) | 28.75% | 73.11% |
Other | 3.04% | 7.85% | 7.96% |
Effective tax rate | (14.92%) | 2558.86% | 292.92% |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Amount of unrecognized tax benefits as of the beginning of the year | $ 9,767 | $ 9,687 |
Decreases as a result of tax positions taken in a prior period | (2,591) | (192) |
Increases as a result of tax positions taken in a prior period | 767 | 22 |
Increases as a result of tax positions taken in the current period | 598 | 250 |
Amount of unrecognized tax benefits as of the end of the year | $ 8,541 | $ 9,767 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss attributable to Altisource | $ (7,208) | $ (13,237) | $ (35,061) | $ (11,650) | $ (306,106) | $ 7,165 | $ (5,844) | $ (3,184) | $ (67,156) | $ (307,969) | $ (5,382) |
Weighted average common shares outstanding, basic (in shares) | 15,657 | 15,637 | 15,601 | 15,497 | 15,568 | 15,897 | 16,214 | 16,292 | 15,598 | 15,991 | 17,073 |
Weighted average common shares outstanding, diluted (in shares) | 15,657 | 15,637 | 15,601 | 15,497 | 15,568 | 16,151 | 16,214 | 16,292 | 15,598 | 15,991 | 17,073 |
Loss per share: | |||||||||||
Basic (in dollars per share) | $ (0.46) | $ (0.85) | $ (2.25) | $ (0.75) | $ (19.66) | $ 0.45 | $ (0.36) | $ (0.20) | $ (4.31) | $ (19.26) | $ (0.32) |
Diluted (in dollars per share) | $ (0.46) | $ (0.85) | $ (2.25) | $ (0.75) | $ (19.66) | $ 0.44 | $ (0.36) | $ (0.20) | $ (4.31) | $ (19.26) | $ (0.32) |
Anti-dilutive securities | |||||||||||
Excluded from the computation of diluted EPS (in shares) | 1,600 | 1,600 | 1,200 | ||||||||
Options, Restricted Stock and Restricted Stock Units Whose Impacts are Anti-Dilutive Because of Net Loss | |||||||||||
Anti-dilutive securities | |||||||||||
Excluded from the computation of diluted EPS (in shares) | 200 | 300 | 500 | ||||||||
Options Whose Exercise Price is Greater than Average Market Price | |||||||||||
Anti-dilutive securities | |||||||||||
Excluded from the computation of diluted EPS (in shares) | 500 | 500 | 300 | ||||||||
Options, Restricted Shares and Restricted Share Units Issuable upon Achievement of Certain Market and Performance Criteria That Has Not Been Met | |||||||||||
Anti-dilutive securities | |||||||||||
Excluded from the computation of diluted EPS (in shares) | 900 | 800 | 500 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |||||||||||
Restructuring charges | $ 1,100 | $ 2,200 | $ 5,800 | $ 2,900 | $ 5,000 | $ 2,800 | $ 1,900 | $ 4,400 | $ 11,972 | $ 14,080 | $ 11,560 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Details) $ in Thousands | Dec. 31, 2020USD ($)agreementlease | Dec. 31, 2020USD ($)agreementlease | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)agreementlease | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) |
Concentration Risk | |||||||||||||
Revenue | $ 59,966 | $ 88,795 | $ 95,342 | $ 121,444 | $ 140,688 | $ 141,493 | $ 196,535 | $ 169,935 | $ 365,547 | $ 648,651 | $ 838,202 | ||
Right-to-use assets | $ 18,213 | 18,213 | 29,074 | 18,213 | 29,074 | $ 42,100 | |||||||
Lease obligation liabilities | 19,890 | 19,890 | 19,890 | 45,500 | |||||||||
Lease obligation liabilities, current | $ 7,609 | $ 7,609 | $ 11,398 | $ 7,609 | $ 11,398 | $ 16,700 | |||||||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | |||||||
Lease obligation liabilities, noncurrent | $ 12,281 | $ 12,281 | $ 19,707 | $ 12,281 | $ 19,707 | $ 28,800 | |||||||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |||||||
Reduction accrued rent and lease incentives, effect of adopting accounting standard | $ 3,400 | ||||||||||||
Sublease income | $ 1,400 | $ 1,700 | 1,600 | ||||||||||
Lease term, not commenced | 5 years | 5 years | 5 years | ||||||||||
Amounts held in escrow and trust accounts | $ 20,000 | $ 20,000 | $ 12,300 | $ 20,000 | 12,300 | ||||||||
Sales Tax Exposure | |||||||||||||
Concentration Risk | |||||||||||||
Loss (gain) related to sales tax exposure | $ (2,100) | $ (600) | $ 2,100 | $ (2,700) | $ 300 | $ 6,200 | |||||||
Ocwen | Customer Concentration Risk | Revenue | |||||||||||||
Concentration Risk | |||||||||||||
Percentage of revenue from largest customer | 54.00% | 56.00% | 52.00% | ||||||||||
Revenue | $ 197,800 | $ 362,700 | $ 437,400 | ||||||||||
Highly Correlated - Ocwen | Customer Concentration Risk | Revenue | |||||||||||||
Concentration Risk | |||||||||||||
Percentage of revenue from largest customer | 7.00% | ||||||||||||
Revenue | $ 23,800 | 37,500 | 47,100 | ||||||||||
NRZ | |||||||||||||
Concentration Risk | |||||||||||||
Subservice transferred subject MSRs, initial term | 5 years | ||||||||||||
NRZ | Customer Concentration Risk | Revenue | |||||||||||||
Concentration Risk | |||||||||||||
Percentage of loans serviced and subserviced by largest customer's largest client | 36.00% | ||||||||||||
Revenue | $ 8,600 | 12,500 | 28,700 | ||||||||||
Ocwen, Investor | Mortgage Servicing Rights | |||||||||||||
Concentration Risk | |||||||||||||
Revenue | 70,100 | 150,200 | 171,000 | ||||||||||
Ocwen, Investor | Default Valuations and Title Services | |||||||||||||
Concentration Risk | |||||||||||||
Revenue | $ 18,200 | $ 33,200 | $ 40,100 | ||||||||||
NRZ | Ocwen | |||||||||||||
Concentration Risk | |||||||||||||
Subservice transferred subject MSRs, initial term | 5 years | ||||||||||||
NRZ | Ocwen | Customer Concentration Risk | Revenue | |||||||||||||
Concentration Risk | |||||||||||||
Percentage of revenue from largest customer | 36.00% | ||||||||||||
Standby Letters of Credit | |||||||||||||
Concentration Risk | |||||||||||||
Standby letters of credit, number | agreement | 3 | 3 | 3 | ||||||||||
Standby letters of credit, amount | $ 800 | $ 800 | $ 800 | ||||||||||
Number of office leases | lease | 3 | 3 | 3 | ||||||||||
Minimum | |||||||||||||
Concentration Risk | |||||||||||||
Lease term | 1 year | ||||||||||||
Maximum | |||||||||||||
Concentration Risk | |||||||||||||
Lease term | 6 years |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Lease Term and Assumption (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted average remaining lease term (in years) | 3 years 2 months 4 days | 3 years 2 months 23 days |
Weighted average discount rate | 7.01% | 7.11% |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Lease Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Cash used in operating activities for amounts included in the measurement of lease liabilities | $ 13,113 | $ 15,446 |
Short-term (twelve months or less) lease costs | 3,797 | 4,999 |
Selling, general and administrative expense | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 9,712 | 10,698 |
Cost of revenue | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 1,919 | $ 2,757 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 8,268 | |
2022 | 5,765 | |
2023 | 4,671 | |
2024 | 2,901 | |
2025 | 599 | |
Total lease payments | 22,204 | |
Less: interest | (2,314) | |
Present value of lease liabilities | $ 19,890 | $ 45,500 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2020 | Jul. 01, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Revenue | $ 59,966 | $ 88,795 | $ 95,342 | $ 121,444 | $ 140,688 | $ 141,493 | $ 196,535 | $ 169,935 | $ 365,547 | $ 648,651 | $ 838,202 | ||
Gross profit | 4,551 | 16,225 | 12,714 | 26,863 | 35,083 | 30,771 | 43,821 | 45,720 | 60,353 | 155,395 | 216,037 | ||
Loss before income taxes and non-controlling interests | (3,695) | (11,140) | (33,747) | (9,124) | (8,459) | 12,955 | 11,909 | (3,966) | (57,706) | 12,439 | 1,399 | ||
Net loss | (7,009) | (12,897) | (34,864) | (11,545) | (306,085) | 7,576 | (4,604) | (2,744) | (66,315) | (305,857) | (2,699) | ||
Net loss attributable to Altisource | $ (7,208) | $ (13,237) | $ (35,061) | $ (11,650) | $ (306,106) | $ 7,165 | $ (5,844) | $ (3,184) | $ (67,156) | $ (307,969) | $ (5,382) | ||
Loss per share: | |||||||||||||
Basic (in dollars per share) | $ (0.46) | $ (0.85) | $ (2.25) | $ (0.75) | $ (19.66) | $ 0.45 | $ (0.36) | $ (0.20) | $ (4.31) | $ (19.26) | $ (0.32) | ||
Diluted (in dollars per share) | $ (0.46) | $ (0.85) | $ (2.25) | $ (0.75) | $ (19.66) | $ 0.44 | $ (0.36) | $ (0.20) | $ (4.31) | $ (19.26) | $ (0.32) | ||
Weighted average shares outstanding: | |||||||||||||
Basic (in shares) | 15,657 | 15,637 | 15,601 | 15,497 | 15,568 | 15,897 | 16,214 | 16,292 | 15,598 | 15,991 | 17,073 | ||
Diluted (in shares) | 15,657 | 15,637 | 15,601 | 15,497 | 15,568 | 16,151 | 16,214 | 16,292 | 15,598 | 15,991 | 17,073 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Income tax provision | $ 8,609 | $ 318,296 | $ 4,098 | ||||||||||
Income tax expense, foreign income tax reserves | $ 5,600 | ||||||||||||
Restructuring charges | $ 1,100 | $ 2,200 | $ 5,800 | $ 2,900 | 5,000 | $ 2,800 | $ 1,900 | $ 4,400 | 11,972 | 14,080 | 11,560 | ||
Severance | 700 | ||||||||||||
Gain on sale of business | 0 | 17,814 | 13,688 | ||||||||||
Financial Services Business | Discontinued Operations, Disposed of by Sale | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Total proceeds from the sale of business | $ 44,000 | ||||||||||||
Payment included in consideration, subject to working capital adjustment upon closing of the sale | $ 3,300 | 40,000 | |||||||||||
Additional payment to be received on one-year anniversary of the sale closing | $ 4,000 | ||||||||||||
Gain on sale of business | 17,600 | 17,800 | |||||||||||
Working capital adjustment | 300 | ||||||||||||
Owners.com | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Goodwill impairment | 5,200 | 5,200 | |||||||||||
Intangible asset impairment | 700 | 700 | |||||||||||
Buy-Renovate-Lease-Sell Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Loss on sale of inventory | 1,800 | ||||||||||||
Altisource Residential Corporation | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Unrealized gain (loss) on investment in equity securities | 16,400 | 100 | $ (11,200) | $ (1,300) | 2,700 | (2,300) | 11,800 | 2,200 | 4,000 | 14,400 | (13,000) | ||
Luxembourg | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Change in valuation for net operating loss carryforward | 291,500 | ||||||||||||
Change in statutory income tax rate | $ 1,700 | $ 12,300 | |||||||||||
Sales Tax Exposure | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Net reimbursement from third party | $ (1,700) | ||||||||||||
Loss (gain) related to sales tax exposure | $ (2,100) | $ (600) | $ 2,100 | $ (2,700) | $ 300 | $ 6,200 |
SCHEDULE II. VALUATION AND QU_2
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Allowance for doubtful accounts | ||||
Deductions from asset accounts: | ||||
Balance at Beginning of Period | $ 4,472 | $ 10,883 | $ 10,579 | |
Additions, Charged to Expenses | 2,229 | 720 | 2,830 | |
Additions, Charged to Other Accounts | [1] | 0 | (70) | (7) |
Deductions | [2] | 1,120 | 7,061 | 2,519 |
Balance at End of Period | 5,581 | 4,472 | 10,883 | |
Valuation allowance for deferred tax assets | ||||
Deductions from asset accounts: | ||||
Balance at Beginning of Period | 355,559 | 46,751 | 46,283 | |
Additions, Charged to Expenses | 16,668 | 308,808 | 468 | |
Additions, Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 0 | 0 | 0 | |
Balance at End of Period | $ 372,227 | $ 355,559 | $ 46,751 | |
[1] | For allowance for credit losses, primarily includes amounts previously written off which were credited directly to this account when recovered. | |||
[2] | For allowance for credit losses, amounts written off as uncollectible or transferred to other accounts or utilized. |