Supplemental Financial Statement Disclosures

6 Months Ended

Jun. 30, 2024

Balance Sheet Components Disclosure [Abstract]

Supplemental Financial Statement Disclosures

2. Supplemental Financial Statement Disclosures

Accounts Receivable, Net

As of June 30, 2024, accounts receivable was $161 million, net of allowance for credit losses of $27 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 and six months ended June 30, 2024. Management believes credit risk is mitigated for the three and six months ended June 30, 2024, as approximately 99.2% and 99.3%, respectively, of the net revenue recognized was collected in advance of recognition.

Contract Liabilities

Contractual liabilities, included in other current liabilities, were $232 million at June 30, 2024 and $204 million at December 31, 2023. During the six months ended June 30, 2024, Wayfair recognized $134 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

In January 2024, Wayfair announced a workforce realignment plan, including a workforce reduction involving approximately 1,650 employees. As a result, during the six months ended June 30, 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. Wayfair does not expect to incur any further material charges related to this workforce reduction.