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Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company’s CODM is its Chief Executive Officer. On March 2, 2022, the Company announced that it revised its reportable segments to reflect the way the Company manages its business and to promote improved visibility to its business performance. The change led to the following two operating and reportable segments: Product Commerce and Developing Offerings. These segments are based on how the CODM manages the business, allocates resources, makes operating decisions and evaluates operating performance. Prior to this change, we operated in one operating and one reportable segment.
Product Commerce - primarily includes core retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, our fresh grocery offering, as well as advertising products associated with these offerings. Revenues from Product Commerce are derived primarily from online product sales of owned inventory to customers in Korea and from commissions earned from merchants that sell products through the Company’s mobile application and website.
Developing Offerings - primarily includes more nascent offerings and services, including Coupang Eats, our restaurant ordering and delivery service, Coupang Play, our online content streaming service, fintech, certain international initiatives, as well as advertising products associated with these offerings. Revenues from Developing Offerings are primarily generated from online restaurant ordering and delivery services provided on the Company’s mobile applications and websites.
Our segment operating performance measure is segment adjusted EBITDA. Segment adjusted EBITDA is defined as income (loss) before income taxes for a period before depreciation and amortization, equity-based compensation expense, interest expense, interest income, and other income (expense), net. Segment adjusted EBITDA also excludes impairments and other items that we do not believe are reflective of our ongoing operations.
We generally allocate operating expenses to the respective segments based on usage. The CODM does not evaluate segments using asset information and, accordingly, the Company does not report asset information by segment.
Results of operations for the reportable segments and reconciliation to income (loss) before income taxes is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2022202120222021
Net revenues
Product Commerce$4,947,174 $4,481,525 $14,760,758 $12,911,901 
Developing Offerings154,160 163,180 495,083 417,778 
Total net revenues$5,101,334 $4,644,705 $15,255,841 $13,329,679 
Segment adjusted EBITDA
Product Commerce$239,222 $(118,235)$339,939 $(235,397)
Developing Offerings(44,303)(89,199)(169,720)(227,150)
Total segment adjusted EBITDA$194,919 $(207,434)$170,219 $(462,547)
Reconciling items:
Depreciation and amortization$(54,424)$(51,540)$(174,063)$(145,866)
Equity-based compensation(63,075)(56,138)(191,584)(193,450)
Interest expense(6,485)(7,376)(19,996)(38,047)
Interest income15,403 2,603 26,301 5,450 
Other income (expense), net11,224 (4,026)2,485 (7,479)
Fulfillment center fire losses— — — (295,501)
Income (loss) before income taxes$97,562 $(323,911)$(186,638)$(1,137,440)