Supplemental Financial Statement Disclosures

3 Months Ended

Mar. 31, 2024

Balance Sheet Components Disclosure [Abstract]

Supplemental Financial Statement Disclosures

2. Supplemental Financial Statement Disclosures

Accounts Receivable, Net

As of March 31, 2024, accounts receivable was $113 million, net of allowance for credit losses of $25 million. As of December 31, 2023, accounts receivable was $140 million, net of allowance for credit losses of $22 million. The changes in the allowance for credit losses were not material for the three months ended March 31, 2024. Management believes credit risk is mitigated for the three months ended March 31, 2024, as approximately 99.4% of the net revenue recognized was collected in advance of recognition.

Contract Liabilities

Contractual liabilities, included in other current liabilities, were $187 million at March 31, 2024 and $204 million at December 31, 2023. During the three months ended March 31, 2024, Wayfair recognized $123 million of net revenue that was included within other current liabilities as of December 31, 2023.

Net revenue from contracts with customers is disaggregated by geographic region because this manner of disaggregation best depicts how the nature, amount, timing, and uncertainty of net revenue and cash flows are affected by economic factors. Refer to Note 10, Segment and Geographic Information, for additional information.

Restructuring Charges

On January 19, 2024, Wayfair announced a workforce realignment plan, including a workforce reduction involving approximately 1,650 employees. As a result, during the three months ended March 31, 2024, Wayfair incurred $79 million of charges recorded within restructuring charges on the condensed consolidated statements of operations. The charges consisted primarily of one-time employee severance and benefit costs. As of March 31, 2024, $34 million is accrued within other current liabilities for employee severance benefits which are expected to be paid in the second quarter of 2024.