What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-08-06 compared with 2024-08-08 · 275 added, 239 removed, 1261 unchanged (29% of the section changed)

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of Fox Corporation:

To the Stockholders and the Board of Directors of Fox Corporation:

Opinion on Internal Control Over Financial Reporting

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of Fox Corporation:

To the Stockholders and the Board of Directors of Fox Corporation:

Opinion on the Financial Statements

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The costs of multi-year sports contracts at the Company are primarily amortized based on the ratio of each contract’s current period's attributable revenue to the estimated total remaining attributable revenue.

Auditing the amortization of the Company’s national sports programming involved subjective estimation and complex auditor judgment because the analysis that the Company relies upon to determine the amortization of this programming is based on estimates of future revenues from the programming.

Auditing the amortization of the Company’s national sports programming involved subjective estimation and complex auditor judgment because amortization of this programming is based on estimates of future revenues from the programming.

Differing estimates of future revenues could materially affect the timing of sports programming amortization.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls that address the risks of material misstatement relating to the amortization of the Company’s national sports programming, including controls over management’s review of the analysis and the significant assumptions used to develop the estimated future revenues.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls that address the risks of material misstatement relating to the amortization of the Company’s national sports programming, including controls over management’s review of the amortization analysis and the significant assumptions used to develop the estimated future revenues.

We also tested management’s controls to validate that the data used in the analysis was complete and accurate.

Among other audit procedures performed, we evaluated the significant assumptions used by the Company to develop the estimated future revenues and tested the completeness and accuracy of the underlying data used in the analysis.

Among other audit procedures performed, we evaluated the significant assumptions used by the Company to estimate future revenues and tested the completeness and accuracy of the underlying data used in the analysis.

For example, we evaluated management’s forecasts of estimated future revenues by performing a look-back analysis of management’s historical estimates compared to actual results.

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The Company is unable to predict the final outcome of these matters and has determined that a loss is neither probable nor reasonably estimable.

Accounting for contingencies related to defamation and disparagement claims requires management to exercise judgment related to the likelihood of a loss and if necessary, the estimate of the amount or range of loss.

Auditing management’s accounting for such claims involves complex auditor judgment in determining whether the final outcome is probable or reasonably estimable.

Significant judgment is required to determine the likelihood of a loss and if necessary, the estimate of the amount or range of loss related to such matters.

Auditing management’s accounting for and disclosure of these matters involved challenging, and subjective auditor judgment in assessing the Company’s evaluation of the probability of a loss, and the estimated amount or range of loss.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls that address the risks of material misstatement relating to management’s evaluation of defamation and disparagement claims, including controls over determining whether a loss is probable and whether the amount of loss can be reasonably estimated, as well as financial statement disclosures.

Accounting for contingencies related to defamation and disparagement claims requires management to make significant judgments to determine the likelihood of a loss and if necessary, the estimate of the amount or range of loss related to such matters.

Auditing management’s accounting for and disclosure of these matters involves complex auditor judgment in assessing the Company’s evaluation of the probability of a loss, and the estimated amount or range of loss.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls that address the risks of material misstatement relating to management’s evaluation of defamation and disparagement claims, including controls over determining whether a loss is probable and whether the amount of loss can be reasonably estimated, as well as financial statement disclosures.

Among other audit procedures, we tested management’s evaluation of the probability of outcome and range of loss, if estimable, through inspection of responses to inquiry letters sent to both internal and external legal counsel, discussions with internal legal counsel to confirm our understanding of the allegations and related merits, and by obtaining written representations from executives of the Company.

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Net income $ 2,293 $ 1,554 $ 1,253

Other comprehensive income, net of tax:

Other comprehensive (loss) income, net of tax:

Benefit plan adjustments and other ( 17 ) 42 77

Other comprehensive income, net of tax 42 77 92

Other comprehensive (loss) income, net of tax ( 17 ) 42 77

Comprehensive income 2,276 1,596 1,330

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Net income $ 2,293 $ 1,554 $ 1,253

Adjustments to reconcile net income to cash provided by operating activities

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization 385 389 411

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Equity losses (earnings) of affiliates 29 44 ( 4 )

Cash distributions received from affiliates 13 — —

Non-operating other, net

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Property, plant and equipment ( 331 ) ( 345 ) ( 357 )

Purchase of investments ( 103 ) ( 54 ) ( 28 )

Acquisitions, net of cash acquired ( 97 ) — —

Proceeds from dispositions, net — — 83

Purchase of investments ( 79 ) ( 103 ) ( 54 )

Other investing activities, net ( 30 ) ( 4 ) ( 27 )

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FINANCING ACTIVITIES

Repurchase of shares ( 1,000 ) ( 1,000 ) ( 2,000 )

Repayment of borrowings ( 600 ) ( 1,250 ) —

Borrowings — 1,232 —

Repurchase of shares ( 1,000 ) ( 2,000 ) ( 1,000 )

Dividends paid and distributions ( 277 ) ( 281 ) ( 299 )

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Net income — — — — — 2,263 — 2,263 31 2,294

Other comprehensive income — — — — — — 42 42 — 42

Other comprehensive loss — — — — — — ( 17 ) ( 17 ) — ( 17 )

Dividends — — — — — ( 246 ) — ( 246 ) — ( 246 )

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211 $ 2 235 $ 2 $ 7,603 $ 4,479 $ ( 124 ) $ 11,962 $ 105 $ 12,067

Excludes Redeemable noncontrolling interests which are reflected in temporary equity (See Note 6—Fair Value under the heading “Redeemable Noncontrolling Interests”).

Excludes Redeemable noncontrolling interests (See Note 6—Fair Value under the heading “Redeemable Noncontrolling Interests”).

The accompanying notes are an integral part of these Consolidated Financial Statements.

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Cable Network Programming and Television.

The Transaction

FOX became a standalone publicly traded company on March 19, 2019, when Twenty-First Century Fox, Inc.

(“21CF”) spun off the Company to 21CF stockholders and FOX's Class A Common Stock, par value $ 0.01 per share (the “Class A Common Stock”), and Class B Common Stock, par value $ 0.01 per share (the “Class B Common Stock” and, together with the Class A Common Stock, the “Common Stock”) began trading independently on The Nasdaq Global Select Market (“the Transaction”).

In connection with the Transaction, the Company entered into the Separation and Distribution Agreement, dated as of March 19, 2019 (the “Separation Agreement”), with 21CF, which effected the internal restructuring (the “Separation”) whereby The Walt Disney Company (“Disney”) acquired the remaining 21CF assets and 21CF became a wholly-owned subsidiary of Disney.

The Separation and the Transaction were effected as part of a series of transactions contemplated by the Amended and Restated Merger Agreement and Plan of Merger, dated as of June 20, 2018, by and among 21CF, Disney and certain subsidiaries of Disney.

Basis of Presentation

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Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Cash and Cash Equivalents

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The allowance for credit losses is estimated based on historical experience, receivable aging, current expected collections, current economic trends and specific identification of certain receivables that are at risk of not being paid.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Receivables, net consist of:

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Licensed programming is recorded at the earlier of payment or when the license period has begun, the cost of the program is known or reasonably determinable and the program is accepted and available for airing.

Advances paid for the right to broadcast sports events within one year and programming with an initial license period of one year or less are classified as current inventories, and license fees for programming with an initial license period of greater than one year are classified as non-current inventories.

Licensed programming is predominantly amortized as the associated programs are made available.

Advances paid for the right to broadcast sports events within one year and programming with an initial license period of one year or less are classified as current inventories included within Inventories, net in the Balance Sheets, and license fees for programming with an initial license period of greater than one year are classified as non-current inventories included within Other non-current assets in the Balance Sheets.

Licensed programming is predominantly amortized as the associated programs are made available over the shorter of the license period or the period in which an economic benefit is expected to be derived.

The costs of multi-year sports contracts are primarily amortized based on the ratio of each contract’s current period attributable revenue to the estimated total remaining attributable revenue.

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Such changes in the future could be material.

Owned programming includes content internally developed and produced as well as co-produced content.

Capitalized costs for owned programming are predominantly amortized using the individual-film-forecast-computation method, which is based on the ratio of current period revenue to estimated total future remaining revenue, and related costs to be incurred throughout the life of the respective program.

Owned programming, included within Other non-current assets in the Balance Sheets, includes content internally developed and produced as well as co-produced content.

Capitalized costs for owned programming, including direct costs, production overhead and development costs, are predominantly amortized using the individual-film-forecast-computation method, which is based on the ratio of current period revenue to estimated total future remaining revenue, and related costs are expensed as incurred.

Future remaining revenue includes imputed license fees for content used by FOX as well as revenue expected to be earned based on distribution strategy and historical performance of similar content.

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When production partners distribute owned programming on the Company’s behalf, the net participation in profits is recorded as content license revenue.

Projects in-process are written off at the earlier of abandonment or three years after initial capitalization.

The Company may receive government incentives in connection with the production of owned programming.

The Company records government incentives as a reduction of capitalized costs for owned programming when the monetization of the incentive is probable.

The Company records government incentives as a reduction of capitalized costs for owned programming when the monetization of the incentive is probable, and as a receivable included within Other non-current assets in the Balance Sheets.

Government incentives were not material in fiscal 2025, 2024 and 2023.

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Where an evaluation indicates unamortized costs, including advances on multi-year sports rights contracts, are not recoverable, amortization of rights is accelerated in an amount equal to the amount by which the unamortized costs exceed fair value.

Owned programming is monetized and tested for impairment on an

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

individual basis.

Owned programming is predominantly monetized and tested for impairment on an individual basis.

Licensed programming is predominantly monetized as a group and tested for impairment on a channel, network, or daypart basis.

The recoverability of certain sports rights is assessed on an aggregate basis.

Investments in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling financial interest, are accounted for using the equity method.

Investments in and advances to entities or joint ventures in which the Company has significant influence over the investee’s operating and financial policies, but less than a controlling financial interest, are accounted

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

for using the equity method.

Significant influence generally exists when the Company owns an interest between 20% and 50%.

Equity securities in which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices.

Equity securities without readily determinable fair values are accounted for either at fair value or using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

All gains and losses on investments in equity securities are recognized in the Statements of Operations.

Additionally, investments in partnerships or limited liability companies are accounted for using the equity method when specific ownership accounts are maintained, unless the Company has virtually no influence over the investee’s operating and financial policies.

Equity method investments are initially recorded at fair value and will increase as a result of additional contributions and will decrease as a result of cash distributions received from the equity method investee, amortization of identifiable intangible assets of the investee resulting from the transaction and impairments.

Additionally, the Company’s share of the equity method investee’s net income or loss will increase and decrease the investment, respectively.

Equity investments, including investments in equity securities, in which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices.

Equity investments without readily determinable fair values are accounted for using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

All gains and losses on investments in equity investments are recognized in the Statements of Operations.

Equity method investments are reviewed for impairment by comparing their fair value to their respective carrying amounts when events or circumstances suggest that the carrying amount of the investment may be impaired.

The Company determines the fair value of its private company investments by considering available information, including recent investee equity transactions, discounted cash flow analyses, estimates based on comparable public company operating multiples and, in certain situations, balance sheet liquidation values.

If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether an other-than-temporary decline in market value has occurred, including the length of time and extent to which the market value has been below cost, the financial condition and near-term prospects of the issuer of the security, the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value and other factors influencing the fair market value, such as general market conditions.

The Company regularly reviews equity securities not accounted for using the equity method or at fair value for impairment based on a qualitative assessment which includes, but is not limited to (i) significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee, (ii) significant adverse changes in the regulatory, economic or technological environment of the investee and (iii) significant adverse changes in the general market condition of either the geographical area or the industry in which the investee operates.

If an equity security is impaired, an impairment loss is recognized in the Statements of Operations equal to the difference between the fair value of the investment and its carrying amount.

If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether an other-than-temporary decline in market value has occurred, including the length of time and extent to which the market value has been below cost, the financial condition and near-term prospects of the issuer of the security, the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for an anticipated recovery in market value and other factors influencing the fair market value, such as general market conditions.

The Company regularly reviews equity investments not accounted for using the equity method or at fair value for impairment based on a qualitative assessment which includes, but is not limited to (i) significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee, (ii) significant adverse changes in the regulatory, economic or technological environment of the investee and (iii) significant adverse changes in the general market condition of either the geographical area or the industry in which the investee operates.

If an equity investment is impaired, an impairment loss is recognized in the Statements of Operations equal to the difference between the fair value of the investment and its carrying amount.

Property, Plant and Equipment

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Intangible assets other than goodwill acquired in business combinations are recorded at their estimated fair value at the date of acquisition.

Goodwill is recorded as the difference between the consideration transferred to acquire entities and the estimated fair values assigned to their tangible and identifiable intangible net assets.

Amounts recorded as goodwill are

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

assigned to more than one reporting unit as of the acquisition date when more than one reporting unit is expected to benefit from the synergies of the combination.

is recorded as the difference between the consideration transferred to acquire entities and the estimated fair values assigned to their tangible and identifiable intangible net assets.

Amounts recorded as goodwill are assigned to more than one reporting unit as of the acquisition date when more than one reporting unit is expected to benefit from the synergies of the combination.

The Company’s goodwill and indefinite-lived intangible assets, which primarily consist of FCC licenses, are tested annually for impairment, or earlier if events occur or circumstances change that would more likely than not reduce the fair value below its carrying amount.

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In performing the quantitative assessment, the Company determines the fair value of a reporting unit primarily by using discounted cash flow analysis and market-based valuation approach methodologies.

Determining fair value requires the exercise of significant judgments, including judgments about appropriate discount rates, long-term growth rates, asset lives, company earnings multiples and relevant comparable transactions, as applicable, and the amount and timing of expected future cash flows.

Determining fair value requires the exercise of significant judgments, including judgments about appropriate discount rates, long-term growth rates, asset lives, market multiples and relevant comparable transactions, as applicable, and the amount and timing of expected future cash flows.

The cash flows employed in the analyses are based on the Company’s estimated outlook and various growth rates have been assumed for years beyond the long-term business plan period.

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If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

The Company performs impairment reviews by comparing the estimated fair value of the Company’s FCC licenses with their carrying amount on a station-by-station basis using a discounted cash flow valuation method, assuming a hypothetical start-up scenario for a broadcast station in each of the markets the Company operates in.

The significant assumptions used are the discount rate and terminal growth rates and operating margins, as well as industry data on future advertising revenues in the markets where the Company owns television stations.

These assumptions are based on actual third-party historical performance and estimates of future performance in each market.

During fiscal 2024, the Company determined that the goodwill and indefinite-lived intangible assets included in the Balance Sheets as of June 30, 2024, were not impaired based on the Company’s annual assessments.

The Company determined that there are no reporting units at risk of impairment as of June 30, 2024.

While the Company believes its judgments represent reasonably possible outcomes based on available facts and circumstances, adverse changes to the assumptions, including prevailing market conditions, discount rates, competitive factors, comparable public company trading values and expected future cash flows, could negatively impact the fair value of our reporting units and potentially result in a non-cash goodwill impairment charge in future periods.

The Company performs impairment reviews by comparing the estimated fair value of the Company’s FCC licenses with their carrying amount on a market-by-market basis.

Fair value is determined using a discounted cash flow valuation method, assuming a hypothetical start-up scenario for a broadcast station in each of the markets the Company operates in.

This method also involves the use of management’s judgment in estimating appropriate terminal growth rates, operating margins and discount rates reflecting the risk of a market participant in the broadcast industry, as well as industry data on future advertising revenues in the markets where the Company owns television stations.

The resulting fair values for FCC licenses are sensitive to these long-term assumptions and any adverse changes to the assumptions used could result in an impairment to existing carrying values in future periods and such impairment could be material.

During fiscal 2025, the Company recorded a non-cash impairment charge for intangible assets of approximately $ 70 million primarily related to FCC licenses in Restructuring, impairment and other corporate matters in the Statements of Operations within the Television segment.

Based on the Company’s annual assessment, the carrying value of FCC licenses in certain markets exceeded their fair value primarily as a result of updated market data, including lower expected future advertising revenue.

Additionally, the fair value of FCC licenses in certain markets exceeded their respective carrying value by less than 10 % as of June 30, 2025.

An increase to the discount rate of 0.5 percentage points, or a decrease to the terminal growth rate of 0.5 percentage points, assuming no changes to other long-term assumptions, would cause the aggregate fair value of FCC licenses to fall below the aggregate carrying value by approximately $ 80 million and $ 50 million, respectively.

Further adverse changes in market conditions may result in additional non-cash impairment charges.

During fiscal 2025, the Company determined that the goodwill included in the Balance Sheets as of June 30, 2025 was not impaired based on the Company’s annual assessment and there are no reporting units at risk of impairment.

While the Company believes its judgments represent reasonably possible outcomes

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

based on available facts and circumstances, adverse changes to the assumptions, including prevailing market conditions, discount rates, competitive factors, comparable public company trading values and expected future cash flows, could negatively impact the fair value of our reporting units and potentially result in a non-cash goodwill impairment charge in future periods.

The Company will continue to monitor its goodwill and indefinite-lived intangible assets for any possible future non-cash impairment charges.

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For operating leases that have a lease term of greater than one year, the Company initially recognizes operating lease liabilities and right-of-use (“ROU”) assets at the lease commencement date, which is the date that the lessor makes an underlying asset available for use by the Company.

ROU assets represent the

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Company’s right to use an underlying asset for the lease term and lease liabilities represent the present value of the Company’s obligation to make lease payments, primarily escalating fixed payments, over the lease term.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the present value of the Company’s obligation to make lease payments, primarily escalating fixed payments, over the lease term.

The discount rate used to determine the present value of the lease payments is generally the Company’s incremental borrowing rate because the rate implicit in the lease is generally not readily determinable.

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The Company generates advertising revenue from sales of commercial time within the Company’s network programming, and from sales of advertising on the Company’s owned and operated television stations and various digital properties.

Advertising revenue from customers, primarily advertising agencies, is recognized as the commercials are aired.

Certain of the Company’s advertising contracts have guarantees of a certain number of targeted audience views, referred to as impressions.

Revenues for any audience deficiencies are deferred until the guaranteed number of impressions is met, by providing additional advertisements.

Advertising revenue from customers is recognized as the commercials are aired.

Certain of the Company’s advertising contracts have guarantees of a certain number of targeted audience

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

views, referred to as impressions, where the performance obligation is the guarantee and revenue is recognized as the guarantee is satisfied.

For contracts without guarantees, the individual advertising spots are the performance obligation and consideration is allocated based on its relative standalone selling price.

Advertising contracts, which are generally short-term, are billed monthly for the spots aired during the month, with payments due shortly thereafter.

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In addition, the Company generates affiliate fee revenue from agreements with independently owned television stations that are affiliated with the FOX Network and receives retransmission consent fees from MVPDs for their signals.

Affiliate fee revenue is recognized as we continuously make the programming available to the customer over the term of the agreement.

Affiliate fee revenue is recognized as the Company satisfies the performance obligation by continuously making the programming available to the customer over the term of the agreement.

For contracts with affiliate fees based on the number of the affiliate’s subscribers, revenues are recognized based on the contractual rate multiplied by the estimated number of subscribers each period.

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Affiliate contracts are generally multi-year contracts billed monthly with payments due shortly thereafter.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company classifies the amortization of cable distribution investments (capitalized fees paid to MVPDs to facilitate carriage of a cable network) against affiliate fee revenue.

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Earnings Per Share

Basic earnings per share for the Class A Common Stock and Class B Common Stock is calculated by dividing Net income attributable to Fox Corporation stockholders by the weighted average number of outstanding shares of Class A Common Stock, including vested restricted stock units (“RSUs”), and Class B Common Stock.

Basic earnings per share for FOX’s Class A Common Stock, par value $ 0.01 per share (the “Class A Common Stock”), and Class B Common Stock, par value $ 0.01 per share (the “Class B Common Stock” and, together with the Class A Common Stock, the “Common Stock”) is calculated by dividing Net income attributable to Fox Corporation stockholders by the weighted average number of outstanding shares of Class A Common Stock, including vested restricted stock units (“RSUs”), and Class B Common Stock.

Diluted earnings per share for the Class A Common Stock and Class B Common Stock is calculated similarly, except that the calculation for the Class A Common Stock includes the dilutive effect of the assumed issuance of the shares issuable under the Company’s equity-based compensation plan.

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The Company accounts for forfeitures when they occur.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Financial Instruments

The carrying value of the Company’s financial instruments, such as cash and cash equivalents, receivables, payables and investments accounted for using the measurement alternative, approximates fair value.

The carrying value of the Company’s financial instruments exclusive of borrowings, such as cash and cash equivalents, receivables, payables and investments accounted for using the measurement alternative, approximates fair value.

The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market.

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The redeemable noncontrolling interests recorded are put rights held in Credible Labs Inc.

(“Credible”) and an entertainment production company.

(“Credible”), an entertainment production company and a digital media company.

The Company accretes the changes in the redemption value of the redeemable noncontrolling interests over the period from issuance to the earliest redemption date.

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If a redeemable noncontrolling interest is redeemable at an amount in excess of fair value, the portion of the adjustment that reflects a redemption in excess of fair value is presented within net income attributable to noncontrolling interests in the Statements of Operations.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Concentrations of Credit Risk

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Generally, the Company does not require collateral to secure receivables.

As of June 30, 2024, the Company had no customer that accounted for 10% or more of the Company’s receivables.

As of June 30, 2023, the Company had one individual customer that accounted for approximately 11 % of the Company’s receivables.

Recently Adopted, Recently Issued Accounting Guidance and Other

As of June 30, 2025 and 2024, the Company had no individual customers that accounted for 10% or more of the Company’s receivables.

Recently Adopted and Recently Issued Accounting Guidance and Other

Segment Reporting

In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances segment reporting by requiring the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within the reported measure of segment profit or loss.

The amendment will be applied on a retrospective basis and is effective beginning with the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2025 and for interim periods beginning with the Company's Quarterly Report on Form 10-Q for the quarter ending September 30, 2025.

The Company is currently evaluating the impact the new guidance will have on our financial statement disclosures.

The Company adopted the guidance for all periods presented in this Annual Report on Form 10-K (See Note 17—Segment Information).

In December 2023, the FASB issued updated guidance that enhances income tax disclosures, primarily requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid by jurisdiction.

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The Company is currently evaluating the impact the new guidance will have on our financial statement disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued updated guidance that requires disclosure of specified information about certain costs and expenses.

The amendment is effective for the Company beginning with the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2028 and for interim periods beginning with the Company's Quarterly Report on Form 10-Q for the quarter ending September 30, 2028 on a prospective basis, with the option to use retrospective application.

The Company is currently evaluating the impact the new guidance will have on our financial statement disclosures.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

One Big Beautiful Bill Act

On July 4, 2025, the U.S.

government enacted The One Big Beautiful Bill Act of 2025 which includes, among other provisions, changes to the U.S.

corporate income tax system including the allowance of immediate expensing of qualified property and research and development expenses and permanent extensions of certain provisions within the Tax Cuts and Jobs Act.

These provisions generally will be applicable for the Company beginning in fiscal 2026.

The Company is currently evaluating the future impact of these tax law changes on our financial statements.

ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS

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A change in the allocation of consideration transferred and any estimates of useful lives could result in a change in the value allocated to the intangible assets that could impact future amortization expense.

During fiscal 2024 and 2023, the Company made no acquisitions.

During fiscal 2022, the Company made acquisitions, primarily consisting of three entertainment production companies, for total cash consideration of approximately $ 240 million.

During fiscal 2025, the Company acquired controlling ownership interests in two digital media companies.

The incremental revenues and Segment EBITDA (as defined in Note 17—Segment Information) related to the fiscal 2025 acquisitions, included in the Company's results of operations, were not material individually or in the aggregate.

The accounting for the business combinations is based on provisional amounts and the allocation of the consideration transferred is not final and is subject to changes pending the completion of the final valuation of certain assets and liabilities.

During fiscal 2024 and 2023, the Company made no acquisitions.

Other Transactions

In February 2024, FOX announced that it would enter into a joint venture with ESPN, a subsidiary of The Walt Disney Company (“Disney”), and Warner Bros.

Discovery Inc.

(“WBD”) to form a digital distribution platform focused on sports called Venu Sports.

On January 10, 2025, FOX, Disney and WBD announced the decision to discontinue Venu Sports (See Note 14—Commitments and Contingencies under the heading "Venu Sports”).

In connection with that decision, FOX recorded restructuring charges and wrote off the previously capitalized costs in Restructuring, impairment and other corporate matters in the Statements of Operations for the fiscal year ended June 30, 2025 (See Note 4—Restructuring, impairment and other corporate matters).

On January 12, 2024, the United Football League (the “UFL”) was launched as a professional spring football league that combines the legacy operations of the United States Football League (the “USFL”), a majority-owned consolidated subsidiary of FOX, and XFL, a third-party company.

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This equity method investment is included in Other non-current assets in the Balance Sheets.

As a result of this transaction, the Company recorded a gain of approximately $ 170 million in Non-

As a result of this transaction, the Company recorded a gain of approximately $ 170 million in Non-operating other, net in the Statements of Operations for the fiscal year ended June 30, 2024 (See Note 20—Additional Financial Information under the heading “Non-Operating Other, net”).

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

operating other, net in the Statements of Operations for the year ended June 30, 2024 (See Note 20—Additional Financial Information under the heading “Non-Operating Other, net”).

On February 6, 2024, FOX announced that it would enter into a joint venture (“Venu Sports”) with ESPN, a subsidiary of The Walt Disney Company, and Warner Bros.

Discovery to form a digital distribution platform focused on sports.

Each company is expected to own one-third of the joint venture, have equal board representation and license their sports networks to the joint venture on a non-exclusive basis.

The subscription-based streaming service is expected to launch in the fall of 2024.

RESTRUCTURING, IMPAIRMENT AND OTHER CORPORATE MATTERS

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(in millions)

Restructuring charges $ ( 13 ) $ ( 111 ) $ —

Restructuring charges (a)

$ ( 35 ) $ ( 13 ) $ ( 111 )

Impairment charges (b)

Other corporate matters

Legal settlement costs (a)

Legal settlement costs (c)

( 126 ) ( 24 ) ( 894 )

Newspaper Matters Indemnity (a)

Newspaper Matters Indemnity (c)

( 30 ) ( 20 ) ( 117 )

Other ( 10 ) ( 60 ) ( 70 )

( 91 ) ( 10 ) ( 60 )

Total restructuring, impairment and other corporate matters $ ( 350 ) $ ( 67 ) $ ( 1,182 )

See Note 14—Commitments and Contingencies under the headings “Defamation and Disparagement Claims” and "U.K.

Newspaper Matters Indemnity."

Primarily related to Venu Sports at Corporate and Other (See Note 3—Acquisitions, Disposals and Other Transactions) for fiscal 2025 and severance costs at the Cable Network Programming and Television reportable segments and Corporate and Other for fiscal 2024 and 2023.

Related to a non-cash impairment charge for intangible assets for fiscal 2025 (See Note 2—Summary of Significant Accounting Policies under the heading "Goodwill and Other Intangible Assets”).

See Note 14—Commitments and Contingencies.

Primarily related to Venu Sports for fiscal 2025 (See Note 3—Acquisitions, Disposals and Other Transactions).

Restructuring

During fiscal 2024, 2023 and 2022, the Company recognized restructuring charges of $ 13 million, $ 111 million and nil , respectively.

These charges were primarily comprised of severance costs at the Cable Network Programming and Television reportable segments and Corporate and Other for fiscal 2024 and 2023.

Changes in the restructuring program liabilities were as follows:

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$ ( 8 ) $ ( 19 ) $ ( 27 )

Payments 8 3 11

Balance, June 30, 2022

$ ( 8 ) $ ( 19 ) $ ( 27 )

Additions ( 111 ) — ( 111 )

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$ ( 17 ) $ — $ ( 17 )

Additions (a)

( 35 ) — ( 35 )

Balance, June 30, 2025

$ ( 15 ) $ — $ ( 15 )

Excludes amounts collected from Disney and WBD related to the decision to discontinue Venu Sports (See Note 3—Acquisitions, Disposals and Other Transactions).

FOX CORPORATION

1 unchanged sentence

Amounts recognized in the Balance Sheets consist of:

For the years ended June 30,

As of June 30,

2025 2024 2023

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The Company will determine if there is an impairment by evaluating the fair value of the inventories, which are primarily supported by internal forecasts as compared to unamortized costs.

The Company recognized impairments of approximately $ 40 million, $ 10 million and $ 50 million in fiscal 2024, 2023 and 2022, respectively, related to owned programming at the Cable Network Programming and Television segments, which were recorded in Operating expenses in the Statements of Operations.

The Company recognized impairments of approximately $ 40 million, $ 40 million and $ 10 million in fiscal 2025, 2024 and 2023, respectively, related to owned programming at the Television segment, which were recorded in Operating expenses in the Statements of Operations.

FOX CORPORATION

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Total $ 555 $ 797 $ — $ ( 242 )

The investment categorized as Level 1 primarily represents an investment in equity securities of Flutter Entertainment plc (“Flutter”) with a readily determinable fair value.

The investments categorized as Level 1 primarily represents an investment in equity securities of Flutter Entertainment plc (“Flutter”) with a readily determinable fair value.

The Company utilizes both the market and income approach valuation techniques for its Level 3 fair value measures.

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FOX has no obligation to commit capital towards this opportunity unless and until it exercises the option.

In addition, Flutter cannot pursue an initial public offering for FanDuel without FOX’s consent or approval from the arbitrator.

In addition, Flutter cannot pursue an initial public offering for FanDuel without FOX’s consent or approval from the arbitrator who presided over a FOX-Flutter arbitration in 2021 and 2022.

FOX CORPORATION

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Net loss 1 1 16

Distributions — — 3

Accretion and other (b)

( 30 ) ( 41 ) 116

Accretion and redemption value adjustments ( 20 ) ( 30 ) ( 41 )

End of year $ ( 288 ) $ ( 242 ) $ ( 213 )

The amount issued in fiscal 2022 was primarily due to the acquisition of an entertainment production company.

As a result of the expiration of the sports network minority shareholder’s final put right during fiscal 2022, approximately $ 110 million was reclassified into equity.

The fair values of the redeemable noncontrolling interests held in the entertainment production company and in Credible were determined by using discounted cash flow analysis and market-based valuation approach methodologies.

Significant unobservable inputs used in the fair value measurements of the Company’s redeemable noncontrolling interests are EBITDA (as defined in Note 17—Segment Information) projections and multiples.

Significant increases (decreases) in multiples would result in a significantly higher (lower) fair value measurement.

The put right held by the Credible minority shareholder will become exercisable in fiscal 2025.

The amount in fiscal 2025 was primarily due to the acquisition of a digital media company.

Redeemable noncontrolling interests held in the entertainment production company and digital media company were determined in accordance with the related contractual redemption terms.

Redeemable noncontrolling interests held at fair value were determined using discounted cash flow analysis and market-based valuation approach methodologies.

Significant changes in these long-term assumptions may result in a significantly different value.

The put right held by the entertainment production company’s minority shareholder will become exercisable in fiscal 2027.

The put right held by the digital media company’s minority shareholders will become exercisable in fiscal 2030.

The put right held by the Credible minority interest shareholder was exercised in December 2024.

The Company and the Credible minority interest shareholder will determine the value of the redeemable noncontrolling interest as part of a predetermined fair market value process, which is expected to be completed in the first half of fiscal 2026.

As of June 30, 2025, the redeemable noncontrolling interest held in Credible has been recorded at the preliminary settlement value.

Financial Instruments

The carrying value of the Company’s financial instruments exclusive of borrowings, such as cash and cash equivalents, receivables, payables and investments, accounted for using the measurement alternative method, approximates fair value.

The following table sets forth the fair value and carrying value of the Company’s Borrowings:

As of June 30,

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Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Company’s assets measured at fair value on a nonrecurring basis include investments accounted for using the equity method and the measurement alternative method, long-lived assets, indefinite-lived intangible assets and goodwill.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

assets and goodwill.

The Company reviews the carrying amounts of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable or at least annually for indefinite-lived intangible assets and goodwill.

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The resulting fair value measurements of the assets are considered to be Level 3 measurements.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

In addition, investments accounted for using the measurement alternative method are recorded at fair value as a result of observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

PROPERTY, PLANT AND EQUIPMENT, NET

The Company’s property, plant and equipment is comprised of the following:

As of June 30,

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$ 2,250 $ 642 $ 2,892 $ 146 $ 3,038

Amortization and other — — — ( 46 ) ( 46 )

Acquisitions (b)

Amortization and other (c)

( 66 ) ( 2 ) ( 68 ) ( 34 ) ( 102 )

Balance, June 30, 2025

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Net of accumulated amortization of $ 441 million and $ 405 million as of June 30, 2025 and 2024, respectively.

See Note 3—Acquisitions, Disposals and Other Transactions.

Includes an impairment charge (See Note 2—Summary of Significant Accounting Policies under the heading “Goodwill and Other Intangible Assets”).

Amortization expense related to finite-lived intangible assets was $ 35 million, $ 45 million and $ 74 million for fiscal 2025, 2024 and 2023, respectively.

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These amounts may vary as acquisitions and dispositions occur in the future.

The changes in the carrying value of goodwill, by reportable segment and Corporate and Other, are as follows:

The changes in the carrying value of goodwill, by reportable segment and Corporate and Other, were as follows:

Cable Network Programming Television Corporate

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$ 1,059 $ 2,246 $ 254 $ 3,559

Acquisitions and other

Balance, June 30, 2023

( 15 ) — — ( 15 )

Balance, June 30, 2024

$ 1,044 $ 2,246 $ 254 $ 3,544

Acquisitions (a)

Balance, June 30, 2025

$ 1,045 $ 2,340 $ 254 $ 3,639

See Note 3—Acquisitions, Disposals and Other Transactions.

The carrying amount of Television segment goodwill was net of accumulated impairments of $ 371 million as of June 30, 2025 and 2024.

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The 2019 Indenture does not contain any financial maintenance covenants.

In October 2023 and April 2020, the Company issued $ 1.25 billion and $ 1.2 billion of senior notes, respectively, and used the net proceeds for general corporate purposes.

In January 2019, the Company issued $ 6.8 billion of senior notes and used the net proceeds, together with available cash on its balance sheet, to fund

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

the estimated taxes associated with the Transaction.

In October 2023, the Company issued $ 1.25 billion of senior notes and used the net proceeds for general corporate purposes.

The following table summarizes the Company’s senior notes, net of repayments:

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5.576 % senior notes due 2049

Total public debt 6,650 7,250

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Current Borrowings

Included in Borrowings within Current liabilities as of June 30, 2024 was $ 600 million of 3.050 % senior notes due in April 2025.

Included in Borrowings within Current liabilities as of June 30, 2023 was $ 1.25 billion of 4.030 % senior notes which matured and were repaid in full in January 2024.

Included in Borrowings within Current liabilities as of June 30, 2024 was $ 600 million of 3.050 % senior notes which matured and were repaid in full in April 2025.

Revolving Credit Agreement

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Weighted average discount rate 5 % 5 %

In December 2022, the Company renewed the operating lease for its corporate headquarters at 1211 Avenue of the Americas in New York through fiscal 2042.

In connection with this extension, the Company recorded additional operating lease assets and liabilities of approximately $ 540 million as of June 30, 2023.

The following table presents information about the Company’s lease costs and supplemental cash flows information for leases:

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Operating cash flows from operating leases $ 125 $ 126 $ 119

ROU assets obtained in exchange for operating lease liabilities $ 36 $ 568 $ 137

ROU assets obtained in exchange for operating lease liabilities (b)

$ 19 $ 36 $ 568

Total lease costs are net of sublease income of approximately $ 15 million in each period.

The Company recorded an additional $ 540 million in operating lease assets and liabilities as of June 30, 2023, in connection with the extension of the operating lease for its corporate headquarters at 1211 Avenue of the Americas in New York through fiscal 2042.

FOX CORPORATION

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The Company’s lessor arrangements primarily relate to its owned production and office facilities at the FOX Studio Lot, which is located in Los Angeles, California .

The Company le ases production and office space on the FOX Studio Lot to Disney for an initial term of seven years , subject to two five-year renewal options exercisable by Disney.

As a result, the FOX Studio Lot will predominantly be utilized by Disney until 2026.

The Company will receive approximately $ 50 million annually in lease payments over the remaining lease term.

The Company recorded total lease income for fiscal 2024, 2023 and 2022 of approximately $ 55 million in each period, which is included in Revenues in the Statements of Operations.

The Company le ases production and office space on the FOX Studio Lot, which will predominantly be utilized by Disney until March of 2026 for approximately $ 35 million annually in lease payments.

The Company recorded total lease income for fiscal 2025, 2024 and 2023 of approximately $ 45 million, $ 55 million and $ 55 million, respectively, which is included in Revenues in the Statements of Operations.

The Company recognizes lease payments for operating leases as revenue on a straight-line basis over the lease term and variable lease payments as revenue in the period incurred.

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The program has no time limit and may be modified, suspended or discontinued at any time.

As of June 30, 2024, the Company’s remaining stock repurchase authorization was approximately $ 1.4 billion.

As of June 30, 2025, the Company’s remaining stock repurchase authorization was approximately $ 400 million.

Fiscal 2023 and 2024

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The final number of shares purchased under the ASR agreement was determined using a price of $ 33.03 per share (the volume-weighted average market price of the Class A Common Stock on the Nasdaq during the term of the ASR agreement less a discount).

The Company accounted for the ASR agreement as two s eparate transactions.

The Company accounted for the ASR agreement as two separate transactions.

The initial delivery of Class A Common Stock was accounted for as a treasury stock transaction recorded on the acquisition date.

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Comprehensive Income

Comprehensive income is reported in the Statements of Comprehensive Income and consists of Net income and Other comprehensive income, including benefit plan adjustments, which affect stockholders’ equity, and under GAAP, are excluded from Net income.

The following tables summarize the activity within Other comprehensive income:

Comprehensive income is reported in the Statements of Comprehensive Income and consists of Net income and Other comprehensive (loss) income, including benefit plan adjustments, which affect stockholders’ equity, and under GAAP, are excluded from Net income.

The following tables summarize the activity within Other comprehensive (loss) income:

For the year ended June 30, 2025

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(in millions)

Benefit plan adjustments and other

Unrealized gains $ 47 $ ( 11 ) $ 36

Benefit plan and cumulative translation adjustments

Unrealized losses $ ( 32 ) $ 8 $ ( 24 )

Reclassifications realized in net income (a)

Other comprehensive income $ 55 $ ( 13 ) $ 42

Cumulative translation adjustment

Other comprehensive loss $ ( 25 ) $ 8 $ ( 17 )

FOX CORPORATION

3 unchanged sentences

(in millions)

Benefit plan, cumulative translation adjustments and other

Benefit plan adjustments and other

Unrealized gains $ 47 $ ( 11 ) $ 36

Reclassifications realized in net income (a)

Cumulative translation adjustment 3 — 3

Other comprehensive income $ 55 $ ( 13 ) $ 42

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(in millions)

Benefit plan and cumulative translation adjustments

Benefit plan, cumulative translation adjustments and other

Unrealized gains $ 79 $ ( 19 ) $ 60

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Any person who holds RSUs has no ownership interest in the shares of Class A Common Stock to which such RSUs relate until and unless shares of Class A Common Stock are delivered to the holder.

In fiscal 2024, 2023 and 2022 , a total of approximately 3.0 million, 2.1 million and 1.7 million RSUs were granted , respectively, which generally vest in equal annual installments over a three-year period subject to the participants’ continued employment with the Company.

RSUs generally vest in equal annual installments over a three-year period subject to the participants’ continued employment with the Company.

Performance Stock Units

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The fair value of the TSR condition is determined using a Monte Carlo simulation model.

In fiscal 2024, 2023 and 2022 , a total of approximately 0.2 million PSUs were granted in each period, which have a three-yea r performance measurement period.

The awards are subject to the achievement of three pre-established objective performance measures determined by the Compensation Committee.

PSUs have a three-yea r performance measurement period and are subject to the achievement of three pre-established objective performance measures determined by the Compensation Committee.

The awards issued will be settled in shares of Class A Common Stock upon vesting and are subject to the participants’ continued employment with the Company.

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Stock options are awards that entitle the holder to purchase a specified number of shares of Class A Common Stock at a specified price for a specified period of time and become exercisable over time, subject to the terms and conditions of the SAP, the applicable award documents and such other terms and conditions as the Compensation Committee of the Board may establish.

Stock Options granted under the SAP were fair valued using a Black-Scholes option valuation model that uses the following assumptions:

(i) expected volatility was generally based on historical volatility of the Company and the Company’s peer group over the expected term of the stock options;

(ii) expected term of stock options granted was generally determined by analyzing historical data of the Company’s peer group and represented the period of time that stock options granted were expected to be outstanding;

(iii) risk-free interest rate was based on the U.S.

Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award;

and (iv) expected dividend yield.

There were no stock options granted during fiscal 2025, 2024 or 2023.

Performance-Based Stock Options

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The PSOs were fair valued using a Monte Carlo simulation model that uses the following assumptions:

(i) expected volatility;

(ii) expected term;

(iii) risk-free interest rate;

(i) expected volatility was generally based on historical volatility of the Company and the Company’s peer group over the expected term of the PSOs;

(ii) expected term of PSOs granted was generally determined by analyzing historical data of the Company’s peer group and represented the period of time that PSOs granted were expected to be outstanding;

(iii) risk-free interest rate was based on the U.S.

Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award;

and (iv) expected dividend yield.

Compensation cost related to the PSO will be recognized even if the market condition is not met.

During fiscal 2024, 2023 and 2022, the Company granted approximately 3.9 million, 4.3 million and 4.0 million PSOs, respectively.

The PSOs will vest in full at the end of the applicable three-year performance period if the market condition is met, and have a term of seven years thereafter.

The PSOs granted during fiscal 2025, 2024 and 2023 will vest in full at the end of the applicable three-year performance period as the market condition has been met, and have a term of seven years thereafter.

FOX CORPORATION

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Weighted average remaining contractual term of options exercisable at the end of the year 3.51 years 3.51 years 2.96 years

During fiscal 2024, 2023 and 2022, the Company received approximately $ 34 million, $ 7 million and $ 17 million, respectively, in cash payments from the exercise of stock options.

During fiscal 2025, 2024 and 2023, the Company received approximately $ 171 million, $ 34 million and $ 7 million, respectively, in cash payments from the exercise of options.

The intrinsic value of options outstanding as of June 30, 2025, 2024 and 2023 was $ 340.2 million, $ 31.7 million and $ 37.1 million, respectively.

The intrinsic value of options exercisable as of June 30, 2025, 2024 and 2023 was $ 129.7 million, $ 28.7 million and $ 6.8 million, respectively.

The fair value of each PSO and stock option grant is estimated on the date of grant with the following weighted average assumptions used for grants during fiscal 2024, 2023 and 2022 :

The fair value of each PSO grant is estimated on the date of grant with the following weighted average assumptions used for grants during fiscal 2025, 2024 and 2023 :

For the years ended June 30,

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Newspaper Matters Indemnity obligation to News Corporation).

As of June 30, 2024 and 2023, the amounts due to related parties were $ 74 million and $ 124 million, respectively, which were included in Accounts payable, accrued expenses and other current liabilities in the Balance Sheets.

As of June 30, 2025 and 2024, the amounts due to related parties were $ 67 million and $ 74 million, respectively, which were primarily included in Accounts payable, accrued expenses and other current liabilities in the Balance Sheets.

COMMITMENTS AND CONTINGENCIES

10 unchanged sentences

Total commitments $ 35,186 $ 6,130 $ 10,833 $ 12,702 $ 5,521

See Note 9—Borrowings.

Licensed programming

Under the Company’s contracts with the National Football League (“NFL”), the remaining future minimum payments for program rights to broadcast certain football games are payable over the remaining term of the contract through the 2033 NFL season.

The NFL has a one-time right to terminate the agreement after the 2029 NFL season.

The Company’s contract with Major League Baseball (“MLB”) gives the Company rights to broadcast certain regular season and post-season games, as well as exclusive rights to broadcast MLB’s World Series and All-Star Game through the 2028 MLB season.

The NFL has a one-time termination right after the 2029 NFL season.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company’s contracts with the National Association of Stock Car Auto Racing (“NASCAR”) give the Company rights to broadcast certain races and ancillary content through calendar year 2031.

2 unchanged sentences

Primarily includes obligations relating to talent costs and television rating services agreements.

See Note 10—Leases.

Pension and other postretirement benefits

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Newspaper Matters Indemnity

In connection with the separation of 21CF and News Corporation in June 2013 (the “21CF News Corporation Separation”), 21CF agreed to indemnify News Corporation, on an after-tax basis, for payments made after the 21CF News Corporation Separation arising out of civil claims and investigations relating to phone hacking, illegal data access and inappropriate payments to public officials that occurred at subsidiaries of News Corporation before the 21CF News Corporation Separation, as well as legal and professional fees and expenses paid in connection with the related criminal matters, other than fees, expenses and costs relating to employees who are not (i) directors, officers or certain designated employees or (ii) with respect to civil matters, co-defendants with News Corporation (the “U.K.

In connection with the separation of Twenty-First Century Fox, Inc.

(“21CF”) and News Corporation in June 2013 (the “21CF News Corporation Separation”), 21CF agreed to indemnify News Corporation, on an after-tax basis, for payments made after the 21CF News Corporation Separation arising out of civil claims and investigations relating to phone hacking, illegal data access and inappropriate payments to public officials that occurred at subsidiaries of News Corporation before the 21CF News Corporation Separation, as well as legal and professional fees and expenses paid in connection with the related criminal matters, other than fees, expenses and costs relating to employees who are not (i) directors, officers or certain designated employees or

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(ii) with respect to civil matters, co-defendants with News Corporation (the “U.K.

Newspaper Matters Indemnity”).

In accordance with the Separation Agreement, the Company assumed certain costs and liabilities related to the U.K.

In accordance with the separation agreement entered into connection with the separation of 21CF and the Company in 2019 and 21CF becoming a wholly-owned subsidiary of Disney (the “Transaction”), the Company assumed certain costs and liabilities related to the U.K.

Newspaper Matters Indemnity.

The liability recorded in the Balance Sheets related to the indemnity was approximately $ 65 million as of June 30, 2024 and approximately $ 30 million as of June 30, 2025.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Defamation and Disparagement Claims

5 unchanged sentences

Following these rulings, on April 18, 2023, the Company and its subsidiary, Fox News Network, LLC, entered into a Release and Settlement Agreement with Dominion pursuant to which the parties agreed to resolve the lawsuits among them.

The Company paid an aggregate of approximately $ 800 million to settle this and a related lawsuit in April 2023, which is included in Restructuring, impairment and other corporate matters in the Consolidated Statement of Operations for fiscal 2023 (See Note 4—Restructuring, Impairment and Other Corporate Matters).

The Company paid an aggregate of approximately $ 800 million to settle this and a related lawsuit in April 2023.

The Company continues to believe the Smartmatic and other pending lawsuits alleging defamation or disparagement are without merit and intends to defend against them vigorously, including through any appeals.

The Smartmatic case has been stayed by operation of New York law due to the death of Lou Dobbs, and it is unclear when the stay will be lifted.

At this time, a trial in the Smartmatic lawsuit is not expected to commence until 2025.

The parties filed motions for summary judgment in the Smartmatic case on April 30, 2025, and opposition and reply briefs were filed on June 18, 2025 and July 28, 2025, respectively.

At this time, a trial in the Smartmatic lawsuit is not expected to commence until late 2025 or early 2026 at the earliest.

The Company is unable to predict the final outcome of these matters and has determined that a loss in the Smartmatic case is neither probable nor reasonably estimable.

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and awarding the plaintiffs attorneys' fees and costs.

On June 25, 2024, the defendants filed a motion to dismiss the amended complaint, and a hearing on the motion is scheduled for November 2024.

The Company intends to vigorously contest the lawsuit.

On December 27, 2024, the Chancery Court denied the defendants’ motion to dismiss the amended complaint.

On February 18, 2025, the Chancellor of the Chancery Court, on the Chancellor’s own motion, reassigned the consolidated lawsuit to a different Vice Chancellor.

On April 28, 2025, the Chancery Court granted the defendants’ motion for leave to move for summary judgment on an issue relating to director independence.

The Company intends to continue to vigorously defend against these claims.

Actions and Claims Arising from Alleged Misuse of Personal Information

3 unchanged sentences

Tubi was filed with the U.S.

District Court for the Northern District of Illinois, Eastern Division (the “District Court”), alleging that Tubi shared viewer information with third parties in violation of the privacy protection provisions of the federal Video Privacy Protection Act.

In February 2024, the District Court denied Tubi’s motion to compel arbitration and motion to dismiss, and Tubi appealed those rulings to the U.S.

Court of Appeals for the Seventh Circuit.

Following a determination that Campos lacked standing to sue Tubi, plaintiff’s counsel filed a new putative class action titled Gregory v.

After a determination that Campos lacked standing to sue Tubi, plaintiff’s counsel filed a new putative class action titled Gregory v.

Tubi with the 17th Judicial Circuit Court in Winnebago County, Illinois (the “Illinois State Court”).

On July 26, 2024, the parties entered into a Settlement and Release Agreement to resolve all claims, which includes the dismissal of the Campos lawsuit and settlement of the Gregory lawsuit.

The Company is unable to predict the final outcome of this matter until the Illinois State Court has approved the Settlement and Release Agreement, but has established an accrued liability for the settlement amount.

If approved, the settlement will not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

The Company intends to vigorously defend against any other actions and arbitration claims arising from the alleged misuse of personal information that have not been settled or resolved by the Gregory settlement.

The Company is unable to predict the final outcome of these pending matters and has determined that a loss in these matters is neither probable

On January 24, 2025, the Illinois State

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

nor reasonably estimable.

There can be no assurance that the ultimate resolution of these matters will not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

Court entered a final order approving the Settlement and Release Agreement.

While ten individuals appealed the Illinois State Court’s final order, the Illinois Court of Appeals dismissed their appeal on June 6, 2025.

As a result, the Illinois State Court’s final order is now entered and final.

The settlement did not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

On May 20, 2025, Tubi settled arbitration claims brought on behalf of approximately 23,000 individuals in 2024 that involved the alleged misuse of personal information.

The settlement did not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

In February 2024, FOX announced that it would enter into a joint venture with ESPN, a subsidiary of Disney, and WBD to form a digital distribution platform focused on sports called Venu Sports.

On February 20, 2024, FuboTV Inc.

and FuboTV Media Inc (collectively, “Fubo”) filed a lawsuit against Disney, ESPN, Inc., ESPN Enterprises, Inc., HULU, LLC, FOX and WBD in the U.S.

District Court for the Southern District of New York alleging claims under federal and New York antitrust laws.

On January 6, 2025, Disney and Fubo announced that they have entered into an agreement to combine the Hulu + Live TV business with Fubo, forming a combined virtual MVPD company (the “Disney/Fubo Transaction”).

In conjunction with the Disney/Fubo Transaction, Fubo and the defendants settled the Venu Sports lawsuit and the defendants made an aggregate $ 220 million settlement payment to Fubo, of which approximately $ 80 million was the Company’s portion, which was recorded in Restructuring, impairment and other corporate matters in the Statements of Operations during the three months ended December 31, 2024.

On January 10, 2025, the defendants announced their decision to discontinue the Venu Sports joint venture and not launch its streaming service effective immediately, and as a result the Company wrote off the previously capitalized costs.

Under certain circumstances, including if the Disney/Fubo Transaction does not close due to the failure to obtain certain regulatory approvals, a termination fee of $ 130 million will be payable to Fubo.

Concurrently with the Disney/Fubo transaction, Disney has committed to provide Fubo a senior unsecured term loan of up to $ 145 million in January 2026.

If any such payment is required for the termination fee or senior unsecured term loan, it will be paid by FOX, Disney and WBD.

The Company’s operations are subject to tax primarily in various domestic jurisdictions and as a matter of course, the Company is regularly audited by federal and state tax authorities.

The Company believes it has appropriately accrued for the expected outcome of all pending tax matters and does not currently anticipate that the ultimate resolution of pending tax matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity.

Each member of the 21CF consolidated group, which includes 21CF, the Company (prior to the Transaction) and 21CF’s other subsidiaries, is jointly and severally liable for the U.S.

In connection with the Transaction, each member of the 21CF consolidated group, which includes 21CF, the Company (prior to the Transaction) and 21CF’s other subsidiaries, is jointly and severally liable for the U.S.

federal income and, in certain jurisdictions, state tax liabilities of each other member of the consolidated group.

Consequently, the Company could be liable in the event any such liability is incurred, and not discharged, by any other member of the 21CF consolidated group.

The tax matters agreement entered into in connection with the Separation requires 21CF and/or Disney to indemnify the Company for any such liability.

The tax matters agreement entered into in connection with the Transaction requires 21CF and/or Disney to indemnify the Company for any such liability.

Disputes or assessments could arise during future audits by the IRS in amounts that the Company cannot quantify.

7 unchanged sentences

Accordingly, the funded and unfunded position of each plan is recorded in the Balance Sheets.

Actuarial gains and losses that have not yet been recognized through income are recorded in Accumulated other comprehensive loss net of taxes, and they are systematically amortized as a component of net periodic benefit cost.

The Company’s benefit obligation for the plans is calculated using assumptions which the Company reviews on a regular basis.

The funded status of the plans can change from year to year, but the assets of the funded plans have been sufficient to pay all benefits that came due in each of fiscal 2024, 2023 and 2022.

Actuarial gains and losses that have not yet been recognized through income are recorded in

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accumulated other comprehensive loss net of taxes, and they are systematically amortized as a component of net periodic benefit cost.

The Company’s benefit obligation for the plans is calculated using assumptions which the Company reviews on a regular basis.

The funded status of the plans can change from year to year, but the assets of the funded plans have been sufficient to pay all benefits that came due in each of fiscal 2025, 2024 and 2023.

The Company uses a June 30 measurement date for all pension and postretirement benefit plans.

10 unchanged sentences

( 37 ) ( 50 ) — —

Actuarial gains (b)

Actuarial losses (gains) (b)

37 ( 48 ) ( 1 ) ( 1 )

Other — ( 1 ) — —

Projected benefit obligation, end of the year 1,155 1,119 44 45

12 unchanged sentences

Represents the full settlement of former employees’ deferred pension benefit obligations through lump sum payments.

Actuarial gains for June 30, 2024 and June 30, 2023 were primarily due to higher interest rates utilized in measuring plan obligations.

Actuarial losses for June 30, 2025 and actuarial gains for June 30, 2024 were primarily due to a change in the mortality assumption and higher interest rates, respectively, utilized in measuring the plan obligations.

The Company has established an irrevocable grantor trust (the “Grantor Trust”), administered by an independent trustee, with the intention of making cash contributions to the Trust to fund certain future pension benefit obligations of the Company.

The assets in the Grantor Trust are unsecured funds of the Company and can be used to satisfy the Company’s obligations in the event of bankruptcy or insolvency.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Amounts recognized in the Balance Sheets consist of:

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Net amounts recognized $ ( 251 ) $ ( 228 ) $ ( 44 ) $ ( 45 )

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Amounts recognized in Accumulated other comprehensive loss, before tax, consist of:

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Accumulated pension benefit obligations as of June 30, 2025 and 2024 were $ 1.05 billion and $ 1.01 billion, respectively.

As of June 30, 2024, the fair value of plan assets exceeds the projected benefit obligation and accumulated benefit obligation for each funded plan.

As of June 30, 2023, the projected benefit obligation exceeds the fair value of plan assets for the funded plans except for two plans that have assets of $ 123 million, a projected benefit obligation of $ 115 million and an accumulated benefit obligation of $ 112 million.

As of June 30, 2025 and 2024, the fair value of plan assets exceeds the projected benefit obligation and accumulated benefit obligation for each funded plan.

As of June 30, 2025 and 2024, the projected benefit obligation and accumulated benefit obligation exceeds the fair value of plan assets for each unfunded plan.

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Expected return on plan assets ( 50 ) ( 45 ) ( 40 ) — — —

Amortization of deferred losses 12 23 31 ( 4 ) ( 4 ) 1

Other — — 3 — — —

Amortization of deferred losses (gains) 5 12 23 ( 4 ) ( 4 ) ( 4 )

Net periodic benefit costs $ 35 $ 55 $ 65 $ ( 1 ) $ ( 2 ) $ ( 1 )

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The Company utilizes a full yield curve approach in the estimation of the service and interest components of net periodic benefit costs for pension and postretirement benefits by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to their underlying projected cash flows.

The Company utilizes the latest mortality table released by the Society of Actuaries.

The following assumed health care cost trend rates as of June 30 were also used in accounting for postretirement benefits:

The Company utilizes the latest mortality table released by the Society of Actuaries with adjustments to reflect plan specific characteristics.

The following assumed health care cost trend rates were also used in accounting for postretirement benefits:

Postretirement benefits

As of June 30,

Health care cost trend rate 6.4 % 6.6 %

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2031-2035 482 19

The above table presents expected benefit payments for the postretirement benefits net of a nominal amount of U.S.

Medicare subsidy receipts per year.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The above table presents expected benefit payments for the postretirement benefits net of a nominal amount of U.S.

Medicare subsidy receipts per year.

Plan Assets and Grantor Trust

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Balanced funds

Domestic government obligations (d)

Total fair value of Grantor Trust assets $ 266 $ 266 $ —

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Includes cash and cash equivalents.

The investment objective for the funded pension plans is to grow assets to satisfy future benefit obligations and to maintain funded status.

The investment objective for the funded pension plans is to grow assets at a level commensurate with the growth in the liability while minimizing funded status volatility.

The asset allocation strategy will change over time by shifting assets from return seeking assets to liability hedging assets upon the achievement of certain funding milestones.

Return seeking assets are diversified across equity, fixed income and other investments and liability hedging assets are primarily fixed income investments, which are managed to correlate highly with the pension liabilities to reduce interest rate risk.

The target asset allocation on June 30, 2024 is 37 % return seeking assets and 63 % liability hedging assets.

The actual asset allocation on June 30, 2024 is 44 % return seeking assets and 56 % liability hedging assets.

The target asset allocation on June 30, 2025 is 32 % return seeking assets and 68 % liability hedging assets which approximates the actual asset allocation as of June 30, 2025.

Assets are generally managed by external investment managers.

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Provision for income taxes $ 768 $ 550 $ 483

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table is a reconciliation of income tax computed at the statutory rate to income tax expense:

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Valuation allowance movement — 2 2

Return to accrual (a)

Nondeductible compensation 1 1 —

Other — — ( 1 )

Effective tax rate 25 % 26 % 28 %

Primarily attributable to a remeasurement of the Company’s net deferred tax assets associated with changes in the mix of jurisdictional earnings.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following is a summary of the components of the deferred tax accounts:

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Operating lease liabilities 210 232

Sports rights contracts 90 —

Net operating loss carryforwards 48 38

Tax credit carryforwards 45 96

Pension benefit obligations — 14

Equity-based compensation 44 39

Net operating loss carryforwards 38 37

Other 339 238

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$ 2,716 $ 2,873

As a result of the Separation and the Transaction, which was a taxable transaction for which the estimated tax liability of $ 5.8 billion was included in the transaction tax paid by the Company, FOX obtained a tax basis in its assets equal to their respective fair market values.

This amount includes the additional estimated deferred tax asset recorded as a result of the increased tax basis (See Note 1—Description of Business and Basis of Presentation under the heading “The Transaction”).

Includes a $ 5 million and $ 6 million deferred tax liability recorded in Other liabilities in the Balance Sheets as of June 30, 2024 and 2023, respectively.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As a result of the Transaction (See Note 14—Commitments and Contingencies under the heading "Other"), which was a taxable transaction for which the estimated tax liability of $ 5.8 billion was included in the transaction tax paid by the Company, FOX obtained a tax basis in its assets equal to their respective fair market values.

This amount includes the remaining estimated deferred tax asset recorded as a result of the additional tax basis.

Includes a $ 5 million deferred tax liability recorded in Other liabilities in the Balance Sheets as of June 30, 2025 and 2024.

As of June 30, 2025, the Company had $ 48 million of tax attributes from net operating loss carryforwards available to offset future taxable income.

A substantial portion of these losses can be carried forward indefinitely.

The net increase in the valuation allowance to $ 119 million as of June 30, 2024 was primarily due to the additional valuation allowance required on the basis differences on investments.

As of June 30, 2025, the Company has $ 45 million of tax credit carryforwards primarily attributable to the corporate alternative minimum tax credit which can be carried forward indefinitely.

The net increase in the valuation allowance to $ 140 million as of June 30, 2025 was primarily due to the additional valuation allowance required on tax attributes.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the change in the uncertain tax positions, excluding interest and penalties:

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Balance, end of year $ 50 $ 26 $ 26

The additions for prior year tax positions in fiscal 2025 is primarily due to federal tax matters related to the corporate alternative minimum tax.

The additions for prior year tax positions in fiscal 2024 is primarily due to the impact of state tax law changes.

The reduction for tax positions in fiscal 2024 of $ 6 million is primarily due to the expiration of statutes of limitations.

The reduction for tax positions in fiscal 2023 of $ 6 million is primarily due to audit settlements and the expiration of statutes of limitations.

The reduction for tax positions in fiscal 2022 includes $ 5 million from the expiration of statutes of limitations.

The reduction for tax positions was primarily due to audit settlements or the expiration of statutes of limitations.

The Company recognizes interest and penalty charges related to uncertain tax positions as income tax (expense) benefit.

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The Company believes it has appropriately accrued for the expected outcome of all pending tax matters and does not anticipate that the resolution of these pending tax matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity.

The movement in the balance of uncertain tax positions in fiscal 2024 is primarily attributable to state matters.

The movement in the balance of uncertain tax positions in fiscal 2025 is primarily attributable to federal tax matters.

The Company does not expect significant changes to these positions over the next 12 months.

As of June 30, 2024 and 2023, $ 20 million and $ 21 million, respectively, would affect the Company’s effective income tax rate if the Company’s position with respect to the uncertainties is sustained.

As of June 30, 2025 and 2024, $ 20 million would affect the Company’s effective income tax rate if the Company’s position with respect to the uncertainties is sustained.

SEGMENT INFORMATION

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• Television , which produces, acquires, markets and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, 29 full power broadcast television stations, including 11 duopolies, and other digital platforms, primarily in the U.S.

Eighteen of the broadcast television stations are affiliated with the FOX Network, 10 are affiliated with MyNetworkTV and one is an independent station.

Eighteen of the broadcast television stations are affiliated with the FOX Network and 11 are affiliated with MyNetworkTV.

The segment also includes various production companies that produce content for the Company and third parties.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Credible and the FOX Studio Lot operating segments do not meet the criteria under GAAP to be separately reported as a reportable segment or aggregated with other operating segments, and as such are presented as part of Corporate and Other, which is not a reportable segment.

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The FOX Studio Lot, located in Los Angeles, California, provides television and film production services along with office space, studio operation services and includes all operations of the facility.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company’s operating segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities.

The Company evaluates performance based upon several factors, of which the primary financial measure is segment operating income before depreciation and amortization, or Segment EBITDA.

The Company evaluates performance based upon several factors, of which the primary financial measure is Segment EBITDA (defined below).

Due to the integrated nature of these operating segments, estimates and judgments are made in allocating certain assets, revenues and expenses.

Intersegment transactions principally relate to the sublicensing of sports content and rental of studio and administrative space, which are recorded consistently with the recognition of transactions with third parties and are eliminated in consolidation.

Segment EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses.

1 unchanged sentence

Amortization of cable distribution investments, Depreciation and amortization, Restructuring, impairment and other corporate matters, Equity earnings (losses) of affiliates, Interest expense, net, Non-operating other, net and Income tax expense.

Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources to the Company’s businesses.

Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s operating segments because it is the primary measure used by the Company’s chief operating decision maker, the Chief Executive Officer, to monitor actual versus budget and prior fiscal year financial results, forecast future periods and perform competitive analyses to evaluate performance and allocate resources.

The tables below present summarized financial information for each of the Company’s reportable segments and Corporate and Other.

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(in millions)

Reconciliation of Revenues to Segment EBITDA

Cable Network Programming

Revenues $ 6,930 $ 5,955 $ 6,043

Operating expenses ( 3,275 ) ( 2,668 ) ( 2,927 )

Selling, general and administrative ( 635 ) ( 610 ) ( 660 )

Amortization of cable distribution investments 10 16 16

Segment EBITDA $ 3,030 $ 2,693 $ 2,472

Revenues $ 9,325 $ 7,875 $ 8,710

Operating expenses ( 7,308 ) ( 6,372 ) ( 6,704 )

Selling, general and administrative ( 1,072 ) ( 997 ) ( 997 )

Segment EBITDA $ 945 $ 506 $ 1,009

For the years ended June 30,

2025 2024 2023

(in millions)

Revenues by Segment by Component

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Total depreciation and amortization $ 385 $ 389 $ 411

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended June 30,

6 unchanged sentences

Total capital expenditures $ 331 $ 345 $ 357

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of June 30,

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VALUATION AND QUALIFYING ACCOUNTS

The changes in valuation and qualifying accounts were as follows:

Additions Utilization Other Balance as

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(in millions)

Net (losses) gains on investments in equity securities (a)

Net gains (losses) on investments in equity securities (a)

$ 449 $ ( 189 ) $ 403

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Total non-operating other, net $ 438 $ ( 47 ) $ 368

Net gains (losses) on investments in equity securities includes the gains (losses) related to the changes in fair value of the Company’s investment in Flutter (See Note 6—Fair Value) and, for the year ended June 30, 2024, the losses related to the write-down of the Company’s investment in a live streaming mobile platform that ceased operations.

Net gains (losses) on investments in equity securities includes the gains (losses) related to the change in fair value of the Company’s investment in Flutter (See Note 6—Fair Value), and for the year ended June 30, 2024, the losses related to the Company’s investment in a live streaming mobile platform.

See Note 3—Acquisitions, Disposals and Other Transactions.

7 unchanged sentences

$ 1,621 $ 1,129

Operating lease assets (b)

Operating lease assets 814 904

Inventories, net 742 712

2 unchanged sentences

Total other non-current assets $ 3,732 $ 3,315

Includes investments accounted for at fair value on a recurring basis of $ 797 million and $ 884 million as of June 30, 2024 and 2023, respectively (See Note 6—Fair Value).

See Note 10—Leases under the heading “ Lessee Arrangements .”

Includes investments accounted for at fair value on a recurring basis of $ 1.2 billion and $ 797 million as of June 30, 2025 and 2024, respectively (See Note 6—Fair Value).

Accounts Payable, Accrued Expenses and Other Current Liabilities

12 unchanged sentences

(in millions)

Non-current operating lease liabilities (a)

Non-current operating lease liabilities $ 822 $ 879

Accrued non-current pension/postretirement liabilities 276 276

1 unchanged sentence

Total other liabilities $ 1,341 $ 1,366

See Note 10—Leases under the heading “ Lessee Arrangements .”

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Future Performance Obligations

As of June 30, 2025, approximately $ 5.4 billion of revenues are expected to be recognized primarily over the next one to three years.

The Company’s most significant remaining performance obligations relate to affiliate contracts, sports advertising contracts and content licensing contracts with fixed fees.

The amount disclosed does not include (i) revenues related to performance obligations that are part of a contract whose original expected duration is one year or less, (ii) revenues that are in the form of sales- or usage-based royalties and (iii) revenues related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice.

The Company’s most significant remaining performance obligations relate to affiliate contracts, content licensing contracts with fixed fees and sports advertising contracts.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(iii) revenues related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice.

Supplemental Information

The following table summarizes supplemental information on the Statements of Cash Flows:

For the years ended June 30,

1 unchanged sentence

(in millions)

Supplemental cash flows information

Supplemental cash flow information

Cash paid for interest $ ( 402 ) $ ( 398 ) $ ( 345 )

Cash paid for income taxes $ ( 515 ) $ ( 232 ) $ ( 245 )

Supplemental information on acquisitions

Fair value of assets acquired, excluding cash $ — $ — $ 348

Cash acquired — — 9

Liabilities assumed — — ( 47 )

Redeemable noncontrolling interests issued — — ( 5 )

Cash paid — — ( 252 )

Fair value of equity instruments issued as consideration to third parties (a)

Issuance of subsidiary common units — — ( 53 )

Fair value of equity instruments consideration $ — $ — $ —

Includes Redeemable noncontrolling interests.

SUBSEQUENT EVENTS

2 unchanged sentences

Subsequent to June 30, 2025 , the Company repurchased a total of approximately 0.9 million shares of Class A Common Stock for $ 50 million in the open market.

Subsequent to June 30, 2025, the Company announced that the Board has authorized incremental stock repurchases of an additional $ 5 billion of Class A and Class B Common Stock.

With this increase, the Company’s total stock repurchase authorization is now $ 12 billion .

In July 2025, the Company acquired a noncontrolling minority interest in a sports and entertainment company.

This investment will not have a material effect on the Company’s business, financial condition, results of operations or cash flows.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data