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Segment and Geographic Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information
10. Segment and Geographic Information
Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Wayfair’s CODM is its Chief Executive Officer. 
Wayfair's operating and reportable segments are the U.S. and International. These segments reflect the way the CODM allocates resources and evaluates financial performance, which is based upon each segment's Adjusted EBITDA. Adjusted EBITDA is defined as net income or loss before depreciation and amortization, equity-based compensation and related taxes, interest income or expense, net, other income or expense, net, provision or benefit for income taxes, net, non-recurring items, and other items not indicative of ongoing operating performance. These charges are excluded from the evaluation of segment performance because it facilitates reportable segment performance comparisons on a period-to-period basis as these costs may vary independent of business performance. The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies, included in Part II, Item 8, Financial Statements and Supplementary Data, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Wayfair allocates certain operating expenses to the operating and reportable segments, including customer service and merchant fees and selling, operations, technology, general and administrative expenses based on the usage and relative contribution provided to the segments. It excludes from the allocations certain operating expense lines, including depreciation and amortization, equity-based compensation and related taxes, impairment and other related net charges and restructuring charges, as
well as interest income or expense, net, other income or expense, net, gain or loss on debt extinguishment and provision or benefit for income taxes, net. There are no net revenue transactions between Wayfair's reportable segments.
U.S.
The U.S. segment primarily consists of amounts earned through product sales through Wayfair's family of sites in the U.S.
International
The International segment primarily consists of amounts earned through product sales through Wayfair's international sites.
Net revenue from external customers for each group of similar products and services are not reported to the CODM. Separate identification of this information for purposes of segment disclosure is impractical, as it is not readily available and the cost to develop it would be excessive. No individual country outside the U.S. provided greater than 10% of consolidated net revenue.
The following tables present net revenue and Adjusted EBITDA attributable to Wayfair’s reportable segments for the periods presented:
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
(in millions)
U.S. net revenue$2,730 $2,785 $5,121 $5,200 
International net revenue387 386 725 745 
Total net revenue$3,117 $3,171 $5,846 $5,945 
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
(in millions)
Adjusted EBITDA:
U.S.$199 $161 $320 $190 
International(36)(33)(82)(76)
Total reportable segments Adjusted EBITDA163 128 238 114 
Less: reconciling items (1)
(205)(174)(528)(515)
Net loss$(42)$(46)$(290)$(401)
(1)The following adjustments are made to reconcile total reportable segments Adjusted EBITDA to consolidated net loss:
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
(in millions)
Depreciation and amortization$99 $102 $203 $206 
Equity-based compensation and related taxes98 167 225 318 
Interest expense, net4 5 10 10 
Other expense, net1 (3)5 (2)
Provision for income taxes, net2 2 5 4 
Other:
Impairment and other related net charges (a)
1 1 1 14
Restructuring charges (b)
— — 79 65 
Gain on debt extinguishment (c)
— (100)— (100)
Total reconciling items$205 $174 $528 $515 
(a)
During the three and six months ended June 30, 2024, Wayfair recorded charges of $1 million related to changes in sublease market conditions for an identified U.S. office location. During the six months ended June 30, 2023, Wayfair recorded charges of $5 million related to consolidation of certain customer service centers in identified U.S. locations. During the three and six months ended June 30, 2023, Wayfair recorded charges of $1 million and $9 million, respectively, related to construction in progress assets at identified U.S. locations.
(b)
During the six months ended June 30, 2024, Wayfair incurred $79 million of charges consisting primarily of one-time employee severance and benefit costs associated with the January 2024 workforce reductions. During the six months ended June 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.
(c)
During the three and six months ended June 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.
See “Non-GAAP Financial Measures” in Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q for more information regarding the use of Adjusted EBITDA.