What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-08-06 compared with 2025-08-06 · 331 added, 296 removed, 1240 unchanged (34% of the section changed)

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Program rights amortization – National sports programming

Description of the Matter As disclosed in Note 2 to the consolidated financial statements, the Company has single and multi-year contracts for national sports programming.

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.

Description of the Matter As disclosed in Note 2 to the consolidated financial statements, the Company has multi-year contracts for national sports programming.

The costs of multi-year sports contracts 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 amortization of this programming is based on estimates of future revenues from the programming.

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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 estimate 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.

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 also discloses when it is reasonably possible that a material loss may be incurred.

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

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 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.

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Restructuring, impairment and other corporate matters ( 151 ) ( 350 ) ( 67 )

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

Equity losses of affiliates ( 20 ) ( 29 ) ( 44 )

Interest expense, net ( 274 ) ( 227 ) ( 216 )

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Net income $ 1,727 $ 2,293 $ 1,554

Other comprehensive (loss) income, net of tax:

Other comprehensive income (loss), net of tax:

Benefit plan adjustments and other 17 ( 17 ) 42

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

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

Comprehensive income 1,744 2,276 1,596

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Non-current assets

Property, plant and equipment, net 1,705 1,696

Property and equipment, net 1,842 1,705

Intangible assets, net 2,870 2,969

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Current liabilities

Borrowings $ — $ 599

Accounts payable, accrued expenses and other current liabilities $ 2,667 $ 2,897

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Class A Common Stock , $ 0.01 par value per share, 2,000,000,000 shares authorized, 199,338,182 shares and 210,754,900 shares issued and outstanding at par as of June 30, 2026 and 2025, respectively.

Class B Common Stock , $ 0.01 par value per share, 1,000,000,000 shares authorized, 235,581,025 shares issued and outstanding at par as of June 30, 2025 and 2024.

Class B Common Stock , $ 0.01 par value per share, 1,000,000,000 shares authorized, 220,248,764 shares and 235,581,025 shares issued and outstanding at par as of June 30, 2026 and 2025, respectively.

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

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Depreciation and amortization 410 385 389

Amortization of cable distribution investments 10 16 16

Restructuring, impairment and other corporate matters 151 267 67

Equity-based compensation 132 135 90

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

Equity losses of affiliates 20 29 44

Cash distributions received from affiliates 32 13 —

Non-operating other, net 773 ( 438 ) 47

( 438 ) 47 ( 368 )

Deferred income taxes 271 164 203

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INVESTING ACTIVITIES

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

Acquisitions, net of cash acquired ( 97 ) — —

Property and equipment ( 502 ) ( 331 ) ( 345 )

Purchase of investments ( 178 ) ( 79 ) ( 103 )

Acquisitions, net of cash acquired ( 8 ) ( 97 ) —

Other investing activities, net ( 17 ) ( 30 ) ( 4 )

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

Dividends paid and distributions ( 287 ) ( 277 ) ( 281 )

Purchase of noncontrolling interest ( 208 ) — —

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

Borrowings — — 1,232

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

Sale of subsidiary noncontrolling interest — — 35

Other financing activities, net 84 122 ( 42 )

Net cash used in financing activities ( 2,411 ) ( 1,755 ) ( 1,341 )

Net increase (decrease) in cash and cash equivalents 1,032 47 ( 928 )

Net (decrease) increase in cash and cash equivalents ( 1,146 ) 1,032 47

Cash and cash equivalents, beginning of year 5,351 4,319 4,272

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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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Net income — — — — — 1,685 — 1,685 37 1,722

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

Other comprehensive income — — — — — — 17 17 — 17

Dividends — — — — — ( 243 ) — ( 243 ) — ( 243 )

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200 $ 2 220 $ 2 $ 7,274 $ 4,457 $ ( 107 ) $ 11,628 $ 100 $ 11,728

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

Excludes Redeemable noncontrolling interests (See Note 20—Additional Financial Information under the heading “Redeemable Noncontrolling Interests”).

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

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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.

Equity method investments are initially recorded at cost 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.

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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

Property, plant and equipment are stated at cost.

Depreciation is provided using the straight-line method over an estimated useful life of three to 40 years for buildings and leaseholds and three to 10 years for machinery and equipment.

Property and Equipment

Property and equipment are stated at cost.

Depreciation is provided using the straight-line method over an estimated useful life of three to forty years for buildings, three to ten years for machinery and equipment and three to five years for software developed or acquired for internal use.

Leasehold improvements are amortized using the straight-line method over the shorter of their useful lives or the life of the lease.

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Changes in circumstances, such as technological advances, or changes to the Company’s business model or capital strategy, could result in the actual useful lives differing from the Company’s estimates.

In those cases where the Company determines that the estimated useful life of property, plant and equipment should be shortened, the Company depreciates the asset over its revised remaining useful life, thereby increasing depreciation expense.

In those cases where the Company determines that the estimated useful life of property and equipment should be shortened, the Company depreciates the asset over its revised remaining useful life, thereby increasing depreciation expense.

Goodwill and Other Intangible Assets

The Company’s intangible assets include goodwill, Federal Communications Commission (“FCC”) licenses, traditional and virtual multi-channel video programming distributor (“MVPD”) affiliate agreements and relationships, software and trademarks and other copyrighted products.

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

Goodwill is recorded

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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.

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.

The impairment assessment of indefinite-lived intangibles compares the fair value of the assets to their carrying value.

Intangible assets with finite lives are generally amortized over their estimated useful lives.

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Goodwill is tested for impairment at the reporting unit level, which is an operating segment, or one level below.

If the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount after a qualitative assessment, the Company performs a quantitative impairment test to compare the fair value of each reporting unit to its carrying amount, including goodwill.

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.

If the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company compares the fair value of the reporting unit to its carrying amount, including goodwill.

In performing this 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, market multiples and relevant comparable transactions, as applicable, and the amount and timing of expected future cash flows.

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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

During fiscal 2026, the Company recorded a non-cash impairment charge for intangible assets of approximately $ 64 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, 2026.

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.

respectively.

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

During fiscal 2026, the Company determined that the goodwill included in the Balance Sheets as of June 30, 2026 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 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.

The Company has lease agreements primarily for office facilities and other equipment.

At contract inception, the Company determines if a contract is or contains a lease and, if so, whether it is an operating or finance lease.

At contract inception or, for a modified contract, at the modification date the Company determines if a contract is or contains a lease and, if so, whether it is an operating or finance lease.

The Company does not separate lease components from nonlease components for real estate leases.

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Long-Lived Asset Impairments

The Company periodically reviews the carrying amounts of its long-lived assets, including property, plant and equipment, ROU assets and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable.

The Company periodically reviews the carrying amounts of its long-lived assets, including property and equipment, ROU assets and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable.

If the carrying amount of the asset or asset group is greater than the expected undiscounted cash flows to be generated by such asset or asset group, an impairment adjustment is recognized and is measured as the amount by which the carrying value of such asset or asset group exceeds its fair value.

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Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The Company considers the terms of each arrangement to determine the appropriate accounting treatment.

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 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.

those goods or services.

The Company considers the terms of each arrangement to determine the appropriate accounting treatment.

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

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

The Company generates affiliate fee revenue from agreements with MVPDs for cable network programming and for the broadcast of the Company’s owned and operated television stations.

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.

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

The Company generates distribution revenue from affiliate fees for agreements with MVPDs for cable network programming and retransmission fees for the broadcast of the Company’s owned and operated television stations and for agreements with independently owned television stations that are affiliated with the FOX Network.

In addition, the Company generates distribution revenue from subscription fees for the Company’s direct-to-consumer streaming services.

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.

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

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.

The Company amortizes the cable distribution investments on a straight-line basis over the contract period.

Other revenue primarily includes revenue generated from the Company’s content licensing agreements and revenue from production services and rentals.

Subscription revenue for the Company’s direct-to-consumer streaming services are recognized evenly over the subscription period.

Content and Other revenue primarily includes revenue generated from the Company’s content licensing agreements and revenue from production services and rentals.

Revenue from content licensing agreements is recognized when the content is made available under the content licensing agreements.

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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.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Equity-Based Compensation

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The Company accounts for forfeitures when they occur.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Financial Instruments

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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 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.

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, 2026 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.

In December 2023, the Financial Accounting Standards Board (“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.

The Company adopted the guidance for all periods presented in this Annual Report on Form 10-K (See Note 16—Income Taxes).

Disaggregation of Income Statement Expenses

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

Internal-Use Software

In September 2025, the FASB issued updated guidance that eliminates capitalization of internal-use software costs based on project stages and requires that capitalization begin once management authorizes and

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

One Big Beautiful Bill Act

commits to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended.

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, 2029 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.

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.

government enacted The One Big Beautiful Bill Act of 2025 which generally became effective for the Company in fiscal 2026 and includes, among other provisions, the ability to immediately expense qualified property and domestic research and development expenses.

On February 18, 2026, the U.S.

Department of the Treasury issued Notice 2026-7 (the “Notice”) which contained additional interim guidance on the application of the Corporate Alternative Minimum Tax (“CAMT”), to which the Company is subject, which was enacted as part of the Inflation Reduction Act in August 2022.

Neither the Act nor the Notice had a material impact on the Company’s income tax provision but have resulted in a reduction of the Company’s fiscal 2026 U.S.

cash tax obligations and is expected to reduce the Company’s future tax liability.

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 2026, the Company’s acquisitions were no t material.

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.

The incremental revenues and Segment EBITDA (as defined in Note 17—Segment Information) related to the fiscal 2026 and 2025 acquisitions, included in the Company's results of operations, were not material individually or in the aggregate.

During fiscal 2024, the Company made no acquisitions.

Roku Transaction

On June 14, 2026, the Company and Roku, Inc.

(“Roku”) entered into a definitive agreement (the “Merger Agreement”) under which the Company has agreed to acquire Roku for a combination of cash and FOX Class A Common Stock (the “Roku Transaction” or the “Merger”).

Upon the terms and subject to the conditions of the Merger Agreement, FOX will pay $ 96.00 in cash and 0.9693 shares of FOX Class A Common Stock for each share of Roku Class A Common Stock and Roku Class B Common Stock outstanding immediately prior to the effective time of the merger.

The exchange ratio is fixed and will not be adjusted.

Following the completion of the Merger, Roku will be a wholly-owned subsidiary of FOX.

Each of the Boards of Directors of FOX and Roku have unanimously approved the transaction, which is also subject to requisite approval by FOX and Roku stockholders, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the receipt of consents or approvals under certain other antitrust laws and certain investment screening laws and other customary conditions.

The Merger Agreement contains customary termination rights and provides that each party will be required to pay the other party a termination fee of approximately $ 866 million if the Merger Agreement is terminated in certain circumstances, including due to a change in the recommendation of its board of directors.

In addition, FOX will be required to pay Roku a termination fee of approximately $ 1.2 billion if the Merger Agreement is terminated under certain circumstances related to the failure to obtain certain regulatory approvals or upon the entry of a permanent restraint under certain antitrust laws or investment screening laws.

FOX has also agreed to reimburse Roku for up to $ 70 million for reasonable third-party costs and expenses incurred by Roku in connection with the

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

transaction if FOX is unable to obtain the required approval of its Class B Common stockholders of the issuance of FOX Class A Common Stock in connection with the transaction.

The Company expects to fund the cash portion of the Merger consideration with a combination of debt and cash on hand.

In connection with the Merger Agreement, in June 2026, the Company entered into a commitment letter under which the lenders provided $ 12.0 billion of commitments ($ 11.0 billion of which is available as of June 30, 2026) to provide senior unsecured bridge loans (the “Bridge Facility”) and a term loan credit agreement under which the lenders committed to provide a $ 1.0 billion senior unsecured term loan facility (the “Term Loan Facility”) (See Note 9—Borrowings).

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.

In connection with the launch of the UFL, the Company deconsolidated the operations of the USFL and contributed the USFL net assets to the UFL.

In August 2025, the Company purchased the noncontrolling interest of one of its majority-owned subsidiaries (See Note 20—Additional Financial Information under the heading “Redeemable Noncontrolling Interests”).

In July 2025, the Company acquired a noncontrolling minority interest in a sports and entertainment company, which was recorded as an equity method investment, initially at cost.

In connection with the launch of the United Football League (the “UFL”) in January 2024, the Company deconsolidated the operations of the United States Football League (the “USFL”) and contributed the USFL net assets to the UFL.

As consideration for the net assets contributed, the Company received an approximately 42 % ownership interest in the UFL, a variable interest entity, which was recorded as an equity method investment, initially at fair value.

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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

RESTRUCTURING, IMPAIRMENT AND OTHER CORPORATE MATTERS

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Impairment charges (b)

( 64 ) ( 68 ) —

Other corporate matters

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( 12 ) ( 126 ) ( 24 )

Newspaper Matters Indemnity (c)

Newspaper Matters Indemnity (d)

2 ( 30 ) ( 20 )

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Total restructuring, impairment and other corporate matters $ ( 151 ) $ ( 350 ) $ ( 67 )

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).

Primarily related to the strategic realignment of facilities to gain efficiencies, which includes the impairment of operating lease assets, and severance costs at the Cable Network Programming and Television reportable segments and Corporate and Other for fiscal 2026, the discontinuation of Venu Sports for fiscal 2025 at Corporate and Other, and, for fiscal 2024, severance costs at the Cable Network Programming and Television reportable segments and Corporate and Other.

See Note 8—Goodwill and Intangible Assets, Net.

Primarily related to the discontinuation of Venu Sports for fiscal 2025 (See Note 14—Commitments and Contingencies under the heading "Venu Sports").

See Note 14—Commitments and Contingencies under the heading "U.K.

Newspaper Matters Indemnity."

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Restructuring

Changes in the restructuring program liabilities were as follows:

Changes in the restructuring program liabilities, which are included in Accounts payable, accrued expenses and other current liabilities in the Balance Sheets, were as follows:

(in millions)

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$ ( 67 ) $ ( 17 ) $ ( 84 )

Additions ( 111 ) — ( 111 )

Payments 52 2 54

Balance, June 30, 2023

$ ( 67 ) $ ( 17 ) $ ( 84 )

Additions and other ( 19 ) 6 ( 13 )

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$ ( 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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Amounts recognized in the Balance Sheets consist of:

As of June 30,

2025 2024 2023

(in millions)

Accounts payable, accrued expenses and other current liabilities

Additions ( 38 ) ( 2 ) ( 40 )

Payments 31 — 31

Balance, June 30, 2026

$ ( 22 ) $ ( 2 ) $ ( 24 )

Other liabilities

Total restructuring liabilities $ 15 $ 17 $ 84

Excludes amounts collected from Disney and Warner Bros.

Discovery Inc.

(“WBD”) related to the discontinuation of Venu Sports.

INVENTORIES, NET

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Total amortization expense $ 6,468 $ 6,638 $ 5,473

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Based on the balance of Inventories, net as of June 30, 2026, the estimated amortization expense for each of the succeeding three fiscal years is as follows:

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The Company recognized impairments of approximately $ 90 million, $ 40 million and $ 40 million in fiscal 2026, 2025 and 2024, respectively, related to owned programming at the Television segment, which were recorded in Operating expenses in the Statements of Operations.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Fair value measurements are disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories:

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Total $ 988 $ 1,249 $ — $ ( 261 )

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

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

See Note 20—Additional Financial Information.

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

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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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Redeemable Noncontrolling Interests

The changes in redeemable noncontrolling interests classified as Level 3 measurements were as follows:

For the years ended June 30,

2025 2024 2023

(in millions)

Beginning of year $ ( 242 ) $ ( 213 ) $ ( 188 )

Acquisitions (a)

Net loss 1 1 16

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

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

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 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, discount rates, long-term growth rates and multiples.

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 carrying value of the Company’s financial instruments exclusive of borrowings, such as cash and cash equivalents, receivables and payables approximates fair value.

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

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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

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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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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:

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

PROPERTY AND EQUIPMENT, NET

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

As of June 30,

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Land $ 205 $ 206

Buildings and leaseholds 1,463 1,369

Machinery and equipment 2,132 1,997

Buildings and leasehold improvements 1,525 1,463

Machinery, equipment and software 2,352 2,132

accumulated depreciation and amortization ( 2,547 ) ( 2,367 )

Construction in progress 307 271

Total property, plant and equipment, net $ 1,705 $ 1,696

Depreciation and amortization expense related to Property, plant and equipment was $ 350 million, $ 344 million and $ 337 million for fiscal 2025, 2024 and 2023, respectively.

Total property and equipment, net $ 1,842 $ 1,705

Depreciation and amortization expense related to Property and equipment was $ 373 million, $ 350 million and $ 344 million for fiscal 2026, 2025 and 2024, respectively.

GOODWILL AND INTANGIBLE ASSETS, NET

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

Cable Network Programming Television Corporate

Total Goodwill

(in millions)

Balance, June 30, 2024

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

Acquisitions (a)

Balance, June 30, 2025

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

Acquisitions (a)

— ( 2 ) — ( 2 )

Balance, June 30, 2026

$ 1,045 $ 2,348 $ 254 $ 3,647

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, 2026 and 2025.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The changes in the carrying values of the Company’s intangible assets and related accumulated amortization were as follows:

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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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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”).

Primarily related to an impairment charge for FCC licenses for fiscal 2026 and 2025 (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 $ 37 million, $ 35 million and $ 45 million for fiscal 2026, 2025 and 2024, respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Based on the balance of finite-lived intangible assets as of June 30, 2026, the estimated amortization expense for each of the succeeding five fiscal years is as follows:

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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, were as follows:

Cable Network Programming Television Corporate

Total Goodwill

(in millions)

Balance, June 30, 2023

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

( 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.

Public Debt - Senior Notes Issued

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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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4.709 % senior notes due 2029

$ 2,000 $ 2,000

3.500 % senior notes due 2030

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Total borrowings $ 6,606 $ 6,602

Current Borrowings

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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The interest rates and fees under the Revolving Credit Agreement are based on the Company’s long-term senior unsecured non-credit enhanced debt ratings.

Given the current credit ratings, the interest rate on borrowings under the Revolving Credit Agreement would be the forward-looking term rate based on the Secured Overnight Financing Rate plus 1.125 % and the facility fee is 0.125 %.

As of June 30, 2026, there were no borrowings outstanding under the Revolving Credit Agreement.

Term Loan Agreement

On June 30, 2026, in connection with the Merger Agreement, the Company entered into a term loan agreement (the “Term Loan Agreement”), among the Company, as Borrower, the initial lenders named therein, and Morgan Stanley Senior Funding, Inc., as administrative agent.

The Term Loan Agreement provides that the lenders party thereto are committed to provide, contingent on the consummation of the Roku Transaction and certain other customary conditions, a $ 1.0 billion senior unsecured term loan facility (referred to as the Term Loan Facility).

Subject to certain conditions, the Company has the ability to incur up to $ 1.0 billion of additional term loans under the facility.

Borrowings under the Term Loan Facility will be used to fund the cash portion of the Merger consideration.

The facility matures on the date that is two years after the closing of the Roku Transaction and the Term Loan Facility is funded.

The material terms of the Term Loan Agreement include the requirement that the Company maintain specific leverage ratios and limitations on indebtedness.

The interest rates and fees under the Term Loan Agreement are based on the Company’s long-term senior unsecured non-credit enhanced debt ratings.

Given the current credit ratings, the interest rate on borrowings under the Term Loan Agreement would be the forward-looking term rate based on SOFR plus 1.250 % and the unused commitment fee is 0.125 %.

As of June 30, 2026, there were no borrowings outstanding under the Term Loan Agreement.

FOX CORPORATION

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Operating cash flows from operating leases $ 82 $ 125 $ 126

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.

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ROU assets obtained in exchange for operating lease liabilities $ 147 $ 19 $ 36

Total lease costs for fiscal 2026, 2025 and 2024 are net of sublease income of approximately $ 5 million, $ 15 million and $ 15 million, respectively.

The following table presents the lease payments relating to the Company’s operating leases:

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Present value of operating lease liabilities $ 962

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Lessor Arrangements

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, which will predominantly be utilized by Disney until March of 2026 for approximately $ 35 million annually in lease payments.

In fiscal 2026 and 2025, t he Company le ased production and office space on the FOX Studio Lot, which was predominantly utilized by The Walt Disney Company (“Disney”) until March of 2026.

The Company recorded total lease income for fiscal 2026, 2025 and 2024 of approximately $ 25 million, $ 45 million and $ 55 million, respectively, which is included in Revenues in the Statements of Operations.

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In the event of any merger or consolidation with or into another entity, the holders of Class A Common Stock and the holders of Class B Common Stock generally are entitled to receive substantially identical per share consideration.

Under the Certificate of Incorporation, the Board is authorized to issue shares of preferred stock or common stock at any time, without stockholder approval, and to determine all the terms of those shares,

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

including the following:

(i) the voting rights, if any, except that the issuance of preferred stock or series common stock which entitles holders thereof to more than one vote per share requires the affirmative vote of the holders of a majority of the combined voting power of the then outstanding shares of the Company’s capital stock entitled to vote generally in the election of directors;

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The Board has the authority, without any further vote or action by the stockholders, to issue preferred stock and series common stock in one or more series and to fix the number of shares, designations, relative rights (including voting rights), preferences, qualifications and limitations of such series to the full extent permitted by Delaware law.

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Stock Repurchase Program

The Company’s Board has authorized a stock repurchase program under which the Company can repurchase $ 7 billion of Class A Common Stock and Class B Common Stock .

The Company’s Board previously authorized a stock repurchase program under which the Company can repurchase $ 7 billion of Class A Common Stock and Class B Common Stock .

In August 2025 , the Board authorized incremental stock repurchases of an additional $ 5 billion of Common Stock.

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

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

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

Fiscal 2023 and 2024

In connection with the stock repurchase program, the Company entered into an accelerated share repurchase (“ASR”) agreement in February 2023 under which the Company paid a third-party financial institution $ 1 billion and received an initial delivery of approximately 22.5 million shares of Class A Common Stock, representing 80 % of the shares expected to be repurchased under the ASR agreement, at a price of $ 35.54 per share, which was the Nasdaq Global Select Market (“Nasdaq”) closing share price of the Class A Common Stock on February 8, 2023.

Upon settlement of the ASR agreement in August 2023, the Company received a final delivery of approximately 7.8 million shares of Class A Common Stock.

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 separate transactions.

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

The final settlement of Class A Common Stock was accounted for as a forward contract indexed to the Class A Common Stock and qualified as an equity transaction.

In addition to the shares purchased under the ASR agreement, the Company repurchased shares of Class A Common Stock and Class B Common Stock in the open market during fiscal 2025, 2024 and 2023.

As of June 30, 2026, the Company’s remaining stock repurchase authorization was approximately $ 3.4 billion.

Repurchased sh ares are retired and reduce the number of shares issued and outstanding.

The Company allocates the amount of the repurchase price over par value between additional paid-in capital and retained earnings.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

In connection with the stock repurchase program, the Company entered into an accelerated share repurchase (“ASR”) agreement in October 2025 in which the Company paid a third-party financial institution $ 700 million and $ 800 million and received initial deliveries of approximately 8.5 million and 10.9 million shares of Class A Common Stock and Class B Common Stock, respectively, representing 80 % of the value of such payments in shares, calculated at a price of $ 65.51 and $ 58.83 per share, which were the Nasdaq Global Select Market (“Nasdaq”) closing share prices of the Class A Common Stock and Class B Common Stock, respectively, on October 30, 2025.

Upon final settlement of the ASR, the Company received final deliveries of approximately 1.8 million shares of Class A Common Stock in February 2026 and 2.6 million shares of Class B Common Stock in March 2026.

The number of shares received upon final settlement were determined using a price of $ 67.36 and $ 59.39 per share of the Class A Common Stock and Class B Common Stock, respectively (the volume-weighted average market price of the Common Stock on the Nasdaq during the term of the ASR agreement less a discount, less the initial deliveries).

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

The initial deliveries of Common Stock were accounted for as a treasury stock transaction recorded on the acquisition date.

The final settlements of Common Stock were accounted for as a forward contract indexed to the Class A Common Stock or Class B Common Stock, as applicable, and qualified as an equity transaction.

In connection with the stock repurchase program, the Company entered into an ASR agreement in February 2023.

Upon final settlement of the ASR, the Company received a final delivery of approximately 7.8 million shares of Class A Common Stock in August 2023.

The number of shares received upon final settlement were 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, less the initial deliveries).

The final settlement of Class A Common Stock was accounted for as a forward contract indexed to the Class A Common Stock and qualified as an equity transaction.

In addition to the shares purchased under the ASR agreements, the Company repurchased shares of Class A Common Stock and Class B Common Stock in the open market during fiscal 2026, 2025 and 2024.

The foll owing table summarizes the Company’s repurchases of its Class A Common Stock and Class B Common Stock:

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These amounts exclude any fees, commissions, excise taxes or other costs associated with the share repurchases.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Stockholders Agreement

The Company announced on November 6, 2019 that it had entered into a stockholders agreement with the Murdoch Family Trust pursuant to which the Company and the Murdoch Family Trust have agreed not to take actions that would result in the Murdoch Family Trust and Murdoch family members together owning more than 44 % of the outstanding voting power of the shares of Class B Common Stock or would increase the Murdoch Family Trust’s voting power by more than 1.75 % in any rolling twelve-month period.

The Murdoch Family Trust would forfeit votes to the extent necessary to ensure that the Murdoch Family Trust and the Murdoch family collectively do not exceed 44 % of the outstanding voting power of the Class B shares, except where a Murdoch family member votes their own shares differently from the Murdoch Family Trust on any matter.

O n September 8, 2025, the Company entered into a stockholders agreement (the “2025 Stockholders Agreement”) with LGC Holdco, LLC (“LGC Holdco”) and certain Murdoch family trusts (collectively, the “LGC Family Trusts”).

In connection with this, the stockholders agreement between the Company and the Murdoch Family Trust (See Note 11—Stockholders’ Equity in the 2025 Form 10-K) was terminated.

The 2025 Stockholders Agreement limits the LGC Family Trusts and LGC Holdco from owning, collectively with certain Murdoch family members (the “Murdoch Individuals”), more than 44 % of the outstanding voting power of the shares of Class B Common Stock and requires the LGC Family Trusts and LGC Holdco to forfeit votes to the extent necessary to ensure that the Murdoch Individuals, the LGC Family Trusts and LGC Holdco collectively do not exceed 44 % of the outstanding voting power of the shares of Class B Common Stock, except where a Murdoch Individual votes their own shares differently from the others on any matter.

In addition, the 2025 Stockholders Agreement provides the Company with a right of first refusal with respect to any underwritten public offering of the shares of Class B Common Stock held by the LGC Family Trusts or LGC Holdco to anyone other than the Murdoch Individuals and their affiliates, subject to certain exceptions, and provides the LGC Family Trusts and LGC Holdco with certain customary registration rights.

The following table summarizes the dividends declared and paid per share on both the Company’s Class A Common Stock and Class B Common Stock:

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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:

Comprehensive income is reported in the Statements of Comprehensive Income and consists of Net income and Other comprehensive income (loss), 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 (loss):

For the year ended June 30, 2026

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Benefit plan and cumulative translation adjustments

Unrealized gains $ 19 $ ( 5 ) $ 14

Reclassifications realized in net income (a)

Other comprehensive income $ 25 $ ( 8 ) $ 17

For the year ended June 30, 2025

Before tax Tax benefit

(in millions)

Benefit plan and cumulative translation adjustments

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

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Other comprehensive income $ 55 $ ( 13 ) $ 42

For the year ended June 30, 2023

Before tax Tax benefit

(in millions)

Benefit plan, cumulative translation adjustments and other

Unrealized gains $ 79 $ ( 19 ) $ 60

Reclassifications realized in net income (a)

Cumulative translation adjustment 3 — 3

Other comprehensive income $ 101 $ ( 24 ) $ 77

Reclassifications of amounts related to benefit plan adjustments are included in Non-operating other, net in the Statements of Operations (See Note 15—Pension and Other Postretirement Benefits for additional information).

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EQUITY-BASED COMPENSATION

The Company has equity-based compensation plans, including the Fox Corporation 2019 Shareholder Alignment Plan (the “SAP”), under which stock options (including performance-based stock options (“PSOs”), stock appreciation rights, restricted and unrestricted stock, RSUs, performance stock units “PSUs”) an d other types of FOX or subsidiary equity awards may be granted.

2019 Shareholder Alignment Plan

The Company maintains the Fox Corporation 2019 Shareholder Alignment Plan (the “SAP”), under which stock options (including performance-based stock options (“PSOs”), stock appreciation rights, restricted and unrestricted stock, RSUs, performance stock units “PSUs”) an d other types of FOX or subsidiary equity awards may be granted.

The Company’s officers, directors and employees are eligible to participate in the SAP.

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Awards granted under the SAP (other than stock options or stock appreciation rights) entitle the holder to receive Dividend Equivalents (as defined in the SAP) for each regular cash dividend on the common stock underlying the award paid by the Company during the award period.

Dividend equivalents granted with respect

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

to equity awards will be accrued during the applicable award period and such dividend equivalents will vest and be paid only if and when the underlying award vests.

Dividend equivalents granted with respect to equity awards will be accrued during the applicable award period and such dividend equivalents will vest and be paid only if and when the underlying award vests.

The fair value of equity-based compensation under the SAP was calculated according to the type of award issued.

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RSUs awarded under the SAP are fair valued based upon the fair market value of Class A Common Stock on the grant date.

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.

Any person who holds RSUs has no ownership interest in the shares

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

of Class A Common Stock to which such RSUs relate until and unless shares of Class A Common Stock are delivered to the holder.

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

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Certain of these awards have a graded vesting provision and the expense recognition is accelerated.

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The following table summarizes the activity related to RSUs and target PSUs granted to the Company’s employees to be settled in stock (RSUs and PSUs in thousands):

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There were no stock options granted during fiscal 2026, 2025, or 2024.

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Performance-Based Stock Options

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The PSOs granted during fiscal 2026, 2025 and 2024 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.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes information about the Company’s stock options and PSOs granted under the SAP during fiscal 2026, 2025 and 2024 (options in thousands):

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During fiscal 2026, 2025 and 2024, the Company received approximately $ 156 million, $ 171 million and $ 34 million, respectively, in cash payments from the exercise of options.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The intrinsic value of options outstanding as of June 30, 2026, 2025 and 2024 was $ 204.2 million, $ 340.2 million and $ 31.7 million, respectively.

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Expected term 6.50 years 7.15 years 6.50 years

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the Company’s equity-based compensation:

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Newspaper Matters Indemnity obligation to News Corporation).

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.

As of June 30, 2026 and 2025, the amounts due to related parties were $ 82 million and $ 67 million, respectively, which were included in Accounts payable, accrued expenses and other current liabilities and Other liabilities in the Balance Sheets.

COMMITMENTS AND CONTINGENCIES

The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments.

These firm commitments secure the future rights to various assets and services to be used in the normal course of operations.

These firm commitments secure the future rights to various assets and services to be

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

used in the normal course of operations.

The following table summarizes the Company’s material firm commitments as of June 30, 2026:

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

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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.

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Other commitments and contractual obligations

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

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

See Note 10—Leases.

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Because of the current overall funded status of the Company’s material plans, the accrued liability does not represent expected near-term liquidity needs and, accordingly, this amount is not included in the contractual obligations table.

Contingencies

Legal and Other Contingencies

The Company establishes an accrued liability for legal claims and indemnification claims when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated.

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The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters.

Any fees, expenses, fines, penalties, judgments or settlements which might be incurred by the Company in connection with the various proceedings could affect the Company’s results of operations and financial condition.

Any fees, expenses, fines, penalties, judgments or

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

settlements which might be incurred by the Company in connection with the various proceedings could affect the Company’s results of operations and financial condition.

For the contingencies disclosed below for which there is at least a reasonable possibility that a loss may be incurred, other than the accrual provided, the Company was unable to estimate the amount of loss or range of loss.

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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

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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 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.

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 “Disney 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.

The liability recorded in the Balance Sheets related to the indemnity was approximately $ 20 million and $ 30 million as of June 30, 2026 and June 30, 2025, respectively.

Defamation and Disparagement Claims

From time to time, the Company and its news businesses, including FOX News Media and the FOX Television Stations, and their employees are subject to lawsuits alleging defamation or disparagement.

These include lawsuits filed by Smartmatic USA Corp.

and certain of its affiliates (collectively, “Smartmatic”) in February 2021 seeking $ 2.7 billion in damages and Dominion Voting Systems, Inc.

and certain of its affiliates (collectively, “Dominion”) in March 2021 seeking $ 1.6 billion in damages.

On March 31, 2023, the court in the Dominion case issued its rulings on summary judgment motions that were unfavorable to the Company.

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.

This includes the lawsuit filed by Smartmatic USA Corp.

and certain of its affiliates (collectively, “Smartmatic”) in February 2021 seeking $ 2.7 billion in damages.

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 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 parties argued summary judgment motions in the Smartmatic case on December 2, 2025.

At this time, no trial date has been set by the court in the Smartmatic lawsuit and a trial is not expected to commence until later in 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.

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

On April 11, 2023 and April 20, 2023, stockholders of the Company filed derivative lawsuits in the Delaware Court of Chancery (the “Chancery Court”) against certain directors of the Company, which the Chancery Court subsequently consolidated into one matter captioned In re Fox Corporation Deriv.

In 2023, stockholders of the Company filed derivative lawsuits in the Delaware Court of Chancery (the “Chancery Court”) against certain directors and officers of the Company, naming the Company as a nominal defendant.

The Chancery Court consolidated the lawsuits into one matter captioned In re Fox Corporation Deriv.

2023-0418 (Del.Ch.).

Two additional derivative lawsuits were subsequently filed by the Company’s stockholders in the Chancery Court on September 12, 2023 against certain directors and officers of the Company and are part of the consolidated lawsuit.

Each of the lawsuits names the Company as a nominal defendant.

On April 26, 2024, the lead plaintiffs filed an amended complaint that alleges that certain directors and officers, as applicable, breached their fiduciary duties by allowing the Company’s news channel to air allegations regarding election fraud in connection with the 2020 U.S.

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and awarding the plaintiffs attorneys' fees and costs.

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

On December 27, 2024, the Chancery Court

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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.

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 and limited discovery on this issue is ongoing.

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

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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.

On January 24, 2025, the Illinois State

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

On January 24, 2025, the Illinois State 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.

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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”).

On January 6, 2025, Disney and Fubo announced that they 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 Disney/Fubo Transaction closed in October 2025.

Tax Contingencies

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.

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.

In connection with the Disney Transaction, each member of the 21CF consolidated group, which includes 21CF, the Company (prior to the Disney 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 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.

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

Disputes or assessments could arise during current or future audits by the IRS and other jurisdictional tax authorities in amounts that the Company cannot quantify.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company participates in and/or sponsors various pension, savings and postretirement benefit plans.

Pension plans and postretirement benefit plans are closed to new participants with the exception of a small group covered by collective bargaining agreements.

Pension plans and postretirement benefit plans are closed to new participants with the exception of a limited number of employees covered by collective bargaining agreements.

The Company has a legally enforceable obligation to contribute to some plans and is not required to contribute to others.

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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

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.

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.

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( 41 ) ( 37 ) — —

Actuarial losses (gains) (b)

Actuarial (gains) losses (b)

( 5 ) 37 ( 3 ) ( 1 )

Plan amendments 3 — — —

Projected benefit obligation, end of the year 1,146 1,155 41 44

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

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

Actuarial gains for June 30, 2026 were primarily due to higher interest rates and actuarial losses for June 30, 2025 were primarily due to a change in the mortality assumption utilized in measuring the plan obligations.

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.

Amounts recognized in the Balance Sheets consist of:

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Actuarial losses (gains) $ 169 $ 196 $ ( 27 ) $ ( 27 )

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

Prior service cost 3 1 — —

Net amounts recognized $ 172 $ 197 $ ( 27 ) $ ( 27 )

Accumulated pension benefit obligations were $ 1.05 billion as of June 30, 2026 and 2025.

As of June 30, 2026 and 2025, the fair value of plan assets exceeds the projected benefit obligation and accumulated benefit obligation for each funded plan.

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The fair value of the assets in the Grantor Trust as of June 30, 2026 and 2025 was $ 262 million and $ 265 million, respectively.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The components of net periodic benefit costs were as follows:

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The components of net periodic benefit costs other than the service cost component are included in Non- operating other, net in the Statements of Operations.

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Pension benefits Postretirement benefits

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The following table sets forth the estimated benefit payments and estimated settlements for the next five fiscal years and in aggregate for the five fiscal years thereafter.

These payments are estimated based on the same assumptions used to measure the Company’s benefit obligation at the end of the fiscal year and include benefits attributable to estimated future employee service:

These payments are estimated based on the

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

same assumptions used to measure the Company’s benefit obligation at the end of the fiscal year and include benefits attributable to estimated future employee service:

Expected benefit payments

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2032-2036 466 18

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.

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Employer contributions to such plans were $ 78 million, $ 74 million and $ 70 million for fiscal 2026, 2025 and 2024, respectively.

Income before income tax expense was attributable primarily to the U.S.

jurisdiction.

Significant components of the Company’s provision for income taxes were as follows:

The following table summarizes Income before income tax expense by U.S.

and foreign jurisdictions:

For the years ended June 30,

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(in millions)

$ 2,274 $ 3,052 $ 2,097

Foreign 4 9 7

Income before income tax expense $ 2,278 $ 3,061 $ 2,104

Significant components of the Company’s provision for income tax expense were as follows:

For the years ended June 30,

2026 2025 2024

(in millions)

Federal $ 198 $ 455 $ 300

State, local and other 175 47 35

State and local 69 138 41

Foreign 13 11 6

Total current 280 604 347

Deferred 164 203 321

Federal 259 164 168

State and local 14 1 36

Foreign ( 2 ) ( 1 ) ( 1 )

Total deferred 271 164 203

Provision for income taxes $ 551 $ 768 $ 550

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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2026 2025 2024

Amount % Amount % Amount %

(in millions, except %)

federal income tax rate $ 478 21 % $ 643 21 % $ 442 21 %

State and local taxes 3 4 4

Effect of enacted tax law changes — ( 2 ) 1

State and local income tax, net of federal income tax effect (a)

62 3 107 3 55 3

Foreign tax effects — — 4 — — —

Tax credits - research and development ( 9 ) — ( 14 ) — ( 17 ) ( 1 )

Valuation allowance movement ( 1 ) — 10 — 37 2

Nontaxable or nondeductible items

Nondeductible compensation 30 1 17 1 18 1

Tax (windfall) shortfall on share-based payment awards ( 26 ) ( 1 ) ( 7 ) — ( 1 ) —

Other 16 1 17 — 16 1

Changes in unrecognized tax benefits 5 — 2 — 5 —

Other ( 4 ) ( 1 ) ( 11 ) — ( 5 ) ( 1 )

Effective tax rate $ 551 24 % $ 768 25 % $ 550 26 %

State taxes in California, New York, Pennsylvania, New Jersey and Massachusetts contributed to the majority of the tax effect in this category in fiscal 2026, 2025 and 2024.

FOX CORPORATION

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Sports rights contracts 70 90

Net operating loss carryforwards 48 38

Tax credit carryforwards 51 45

Net operating loss carryforwards 48 48

Equity-based compensation 47 44

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Accrued liabilities — ( 10 )

Pension benefit obligations — ( 19 )

Sports rights contracts — ( 33 )

Total deferred tax liabilities ( 206 ) ( 208 )

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$ 2,439 $ 2,716

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.

As a result of the Disney Transaction (See Note 14—Commitments and Contingencies under the heading "Tax Contingencies"), 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.

Includes a $ 4 million and $ 5 million deferred tax liability recorded in Other liabilities in the Balance Sheets as of June 30, 2026 and 2025, respectively.

As of June 30, 2026, the Company had $ 48 million of tax attributes from net operating loss carryforwards available to offset future taxable income.

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As of June 30, 2026, the Company has $ 51 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.

The net decrease in the valuation allowance to $ 109 million as of June 30, 2026 was primarily due to the valuation allowance decrease on the basis difference deferred tax asset.

FOX CORPORATION

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Additions for prior year tax positions (a)

Additions for current year tax positions — — 2

Reduction for prior year tax positions (b)

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Balance, end of year $ 53 $ 50 $ 26

The additions for prior year tax positions in fiscal 2026 is primarily due to state tax matters.

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 was primarily due to audit settlements or the expiration of statutes of limitations.

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

The movement in the balance of uncertain tax positions in fiscal 2026 is primarily attributable to state tax matters.

As of June 30, 2026 and 2025, $ 22 million and $ 20 million respectively, 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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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.

Corporate and Other principally consists of Credible, the FOX Studio Lot and corporate overhead costs.

Corporate and Other principally consists of FOX One, the Company’s direct-to-consumer subscription streaming service launched in August 2025, Credible, the FOX Studio Lot and corporate overhead costs.

Credible is a U.S.

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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.

Intersegment transactions principally relate to the sublicensing of sports content, direct-to-consumer streaming services 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.

Segment EBITDA does not include:

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.

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.

Effective July 1, 2025, the Company no longer removes the impact of amortization of cable distribution investments when calculating Segment EBITDA.

Prior periods were not restated as the impact of the change is immaterial to the calculation.

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.

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Television 9,666 9,325 7,875

Total segment revenues 17,014 16,255 13,830

Corporate and Other 526 244 209

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Television 1,438 945 506

Total segment EBITDA 4,537 3,975 3,199

Corporate and Other ( 631 ) ( 351 ) ( 316 )

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Restructuring, impairment and other corporate matters ( 151 ) ( 350 ) ( 67 )

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

Equity losses of affiliates ( 20 ) ( 29 ) ( 44 )

Interest expense, net ( 274 ) ( 227 ) ( 216 )

27 unchanged sentences

Cable Network Programming

Affiliate fee $ 4,316 $ 4,188 $ 4,175

Distribution $ 4,662 $ 4,440 $ 4,291

Advertising 1,687 1,531 1,262

Other 1,083 505 465

Content and other 999 959 402

Total Cable Network Programming revenues 7,348 6,930 5,955

Advertising 5,652 5,334 4,182

Affiliate fee 3,340 3,136 2,876

Other 651 557 630

Distribution 3,346 3,340 3,136

Content and other 668 651 557

Total Television revenues 9,666 9,325 7,875

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Net income attributable to Fox Corporation stockholders per share - diluted $ 3.84 $ 4.91 $ 3.13

Weighted average common shares include the incremental shares that would be issued upon the assumed vesting of RSUs, PSUs and stock options (including PSOs) if the effect is dilutive, and, for those shares that are contingently issuable, all necessary conditions have been satisfied for the periods presented (See Note 12—Equity-Based Compensation).

Weighted average common shares include the incremental shares that would be issued upon the assumed vesting of RSUs, PSUs and stock options (including PSOs) if the effect is dilutive, and, for those shares that are contingently issuable, if all necessary conditions have been satisfied for the periods presented (See Note 12—Equity-Based Compensation).

FOX CORPORATION

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(in millions)

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

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

$ ( 761 ) $ 449 $ ( 189 )

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Total non-operating other, net $ ( 773 ) $ 438 $ ( 47 )

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.

Net (losses) gains on investments in equity securities includes the (losses) gains 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.

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Inventories, net 845 742

Grantor Trust assets - long-term 246 247

Grantor Trust assets 244 246

Other 322 309

Total other non-current assets $ 3,227 $ 3,732

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).

Includes investments accounted for at fair value on a recurring basis of $ 467 million and $ 1.2 billion as of June 30, 2026 and 2025, respectively (See Note 6—Fair Value).

Accounts Payable, Accrued Expenses and Other Current Liabilities

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Total other liabilities $ 1,395 $ 1,341

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, content licensing contracts with fixed fees and sports advertising contracts.

Redeemable Noncontrolling Interests

Put rights held by minority shareholders in consolidated companies are recorded by the Company as redeemable noncontrolling interests.

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 unobservable inputs used in the fair

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.

value measurements of the Company’s redeemable noncontrolling interests are EBITDA (as defined in Note 17—Segment Information) projections, discount rates, long-term growth rates and multiples.

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

The put right held by the Credible minority interest shareholder was exercised in December 2024 and was settled during fiscal 2026.

The put right held by the entertainment production company’s minority shareholder will become exercisable in fiscal 2029.

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

The changes in redeemable noncontrolling interests classified as Level 3 measurements were as follows:

For the years ended June 30,

2026 2025 2024

(in millions)

Beginning of year $ 288 $ 242 $ 213

Acquisitions (a)

Net income (loss) 5 ( 1 ) ( 1 )

Redemption of noncontrolling interests ( 208 ) — —

Accretion and redemption value adjustments 1 20 30

End of year $ 86 $ 288 $ 242

See Note 3—Acquisitions, Disposals and Other Transactions.

Future Performance Obligations

As of June 30, 2026, approximately $ 6 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 distribution contracts, content licensing contracts with fixed fees and sports advertising contracts.

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.

Supplemental Information

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Cash paid for income taxes

Federal $ ( 245 ) $ ( 394 ) $ ( 207 )

State ( 77 ) ( 113 ) ( 18 )

Foreign ( 13 ) ( 8 ) ( 7 )

Total cash paid for income taxes $ ( 335 ) $ ( 515 ) $ ( 232 )

FOX CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SUBSEQUENT EVENTS

1 unchanged sentence

The dividend declared is payable on September 23, 2026 with a record date for determining dividend entitlements of September 02, 2026 .

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