FOX · 10-K · 2026A · Full report

FCC License Impairment Risk

Fox Corp (FOX, FOXA) · 2026-08-06 · Importance 40 · Surprise 42 · Matches filing data

FOX recorded a non-cash impairment of approximately $64 million in fiscal 2026, primarily related to FCC licenses in certain television markets. The impairment reflected updated market data, including lower expected future advertising revenue. The fair value of FCC licenses in certain markets exceeded carrying value by less than 10% as of June 30, 2026, indicating limited valuation headroom. A 0.5 percentage-point increase in the discount rate or decrease in the terminal growth rate would reduce aggregate FCC-license fair value below carrying value by approximately $125 million or $90 million, respectively, and further adverse market conditions could produce additional impairments.

Key facts

• An increase to the discount rate of 0.5 percentage points would cause the aggregate fair value of FCC licenses to fall below aggregate carrying value by approximately $125 million; a decrease to the terminal growth rate of 0.5 percentage points would cause it to fall by approximately $90 million, assuming no other changes. source
• During fiscal 2025 the Company recorded a non-cash impairment charge for intangible assets of approximately $70 million primarily related to FCC licenses recorded in Restructuring, impairment and other corporate matters within the Television segment. source
• 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 within the Television segment. source
• The Company identified FCC rules and policies and FCC decisions regarding revocation, renewal or grant of station licenses, waivers and other matters as a potential source of investigations or fines from governmental authorities that could impact the Company. source

Impact estimates