Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Activity Related to Net Revenue and Adjusted EBITDA by Segment

The following tables present net revenue and Adjusted EBITDA attributable to Wayfair’s reportable segments for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in millions)
U.S. net revenue	$	2,572	$	2,440	$	7,772	$	7,778
International net revenue	372		400		1,117		1,339
Total net revenue	$	2,944	$	2,840	$	8,889	$	9,117

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in millions)
Adjusted EBITDA:
U.S.	$	123	$	(51)	$	313	$	(109)
International	(23)		(73)		(99)		(236)
Total reportable segments Adjusted EBITDA	100		(124)		214		(345)
Less: reconciling items (1)	(263)		(159)		(778)		(635)
Net loss	$	(163)	$	(283)	$	(564)	$	(980)

(1)The following adjustments are made to reconcile total reportable segments Adjusted EBITDA to consolidated net loss:

		Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
		(in millions)
Depreciation and amortization		$	106	$	94	$	312	$	270
Equity-based compensation and related taxes		146		123		464		368
Interest expense, net		5		5		15		19
Other expense, net		4		1		2		—
Provision for income taxes, net		2		1		6		3
Other:
Impairment and other related net charges (a)		—		—		14		40
Restructuring charges (b)		—		31		65		31
Gain on debt extinguishment (c)		—		(96)		(100)		(96)
Total reconciling items		$	263	$	159	$	778	$	635
(a)	During the nine months ended September 30, 2023, Wayfair recorded charges of $14 million, inclusive of $5 million related to consolidation of certain customer service centers and $9 million related to construction in progress assets at identified U.S. locations. During the nine months ended September 30, 2022, Wayfair recorded $40 million of lease impairment and other charges related to changes in market conditions around future sublease income for one office location in the U.S.
(b)	During the nine months ended September 30, 2023, Wayfair incurred $65 million of charges consisting primarily of one-time employee severance and benefit costs associated with the January 2023 workforce reductions. During the three and nine months ended September 30, 2022, Wayfair incurred $31 million of charges consisting primarily of one-time employee severance and benefit costs associated with the August 2022 workforce reductions.
(c)	During the nine months ended September 30, 2023, Wayfair recorded a $100 million gain on debt extinguishment upon repurchase of $83 million in aggregate principal amount of the 2024 Notes and $535 million in aggregate principal amount of the 2025 Notes. During the three and nine months ended September 30, 2022, Wayfair recorded a $96 million gain on debt extinguishment upon repurchase of $375 million aggregate principal amount of the 2024 Notes and $229 million in aggregate principal amount of the 2025 Notes.