GameStop Corp

8. Segment Information

We operate our business infour geographic segments: United States, Canada, Australia and Europe. We identified segments based on a combination of geographic areas and management responsibility. Segment results for the United States include retail operations in 50 states; our ecommerce website www.gamestop.com; and our GameStop Pro®loyalty program. The United States segment also includes general and administrative expenses related to our corporate offices in Grapevine, Texas. Segment results for Canada include retail and ecommerce operations in Canada and segment results for Australia include retail and ecommerce operations in Australia and New Zealand, respectively. Segment results for Europe currently include retail and ecommerce operations in France, Italy and Germany. Our segment results for Europe previously also included retail operations in Austria, Switzerland and Ireland. We measure segment profit using operating earnings, which is defined as income (loss) from operations before net interest (income) expense and income taxes. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the three and nine months ended November 2, 2024 and October 28, 2023.

9. Income Taxes

Our interim tax provision was determined using an estimated annual effective tax rate and adjusted for discrete taxable events and/or adjustments that have occurred during the nine months ended November 2, 2024.

We recognized an income tax expense of $3.4 million, or 16.3%, for the three months ended November 2, 2024, compared to an income tax benefit of $1.2 million, or 27.9%, for the three months ended October 28, 2023.

We recognized income tax expense of $2.6 million, or 100.0%, for the nine months ended November 2, 2024, compared to an income tax benefit of $1.5 million, or 2.6%, for the nine months ended October 28, 2023.

Our effective income tax rate for the three and nine months ended November 2, 2024 was primarily due to tax expense recognized during the third quarter in connection with our sale of property in Ireland, and in connection with an Italian tax audit.

Our effective income tax rate for the three and nine months ended October 28, 2023 are primarily due to the recognition of tax benefits on certain current period losses, partially offset by forecasted income taxes due in certain jurisdictions in which we operate.