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. Segment results for Australia include retail and ecommerce operations in Australia and New Zealand. Current year segment results for Europe include retail and ecommerce operations in France. Our segment results for Europe also previously included retail operations in Italy, Germany, Austria, Ireland and Switzerland.

Our chief operating decision makers (“CODM”) are our Chief Executive Officer and our Principal Financial and Accounting Officer, who have responsibility for allocating resources and assessing performance for the operating segments. Our CODM measures segment profit using operating income (loss), which is defined as net income (loss) from operations before net interest (income) expense and income taxes.

Transactions between our reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the three months ended May 3, 2025 and May 4, 2024. Information on total assets by segment is not disclosed as such information is not used by our CODM to evaluate segment performance or to allocate resources and capital.

The following tables present segment information:

(1) Property and equipment, net for Canada and France (Europe) is classified as Assets held for sale on our Condensed Consolidated Balance Sheets.

9. Assets Held for Sale

During the first quarter of 2025, we committed to a plan to divest our operations in Canada and France and reclassified all relevant assets and liabilities associated with these operations to assets and liabilities held for sale in our Condensed Consolidated Balance Sheets. The following table presents the assets and liabilities classified as held for sale:

Based on the expected fair value of the consideration to be received for these businesses, net of our costs to sell, we recognized an impairment on assets held for sale for both the French and Canadian disposal groups in the aggregate amount of $35.5 million. The impairment consists of the difference between the fair value and the carrying value of the net assets, including related amounts in Accumulated other comprehensive income.

10. 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 three months ended May 3, 2025.

We recognized an income tax expense of $3.5 million, or 7.2%, for the three months ended May 3, 2025, compared to an income tax benefit of $3.4 million, or 9.5%, for the three months ended May 4, 2024.

Our effective income tax rate for the three months ended May 3, 2025 was primarily due to forecasted income taxes due in certain jurisdictions in which we operate, partially offset by tax benefits recognized in the current period.

Our effective income tax rate for the three months ended May 4, 2024 was primarily due to the recognition of tax benefits on certain period losses, partially offset by forecasted income taxes due in certain jurisdictions in which we operate.

11. Subsequent Events

The Company evaluated subsequent events through June 10, 2025, the date the financial statements were issued.

Between May 3, 2025 and June 10, 2025, the Company purchased 4,710 Bitcoin for cash. The purchase occurred after the balance sheet date and did not affect the Company's financial condition or results of operations as of May 3, 2025.

On May 4, 2025, we sold our Canadian subsidiary, Electronics Boutique Canada, Inc., which operated our Canadian stores and e-commerce business. The proceeds and loss are expected to be immaterial to our financial statements.