FOX · 10-K · 2026A · Full report

Pension Expense and Funding

Fox Corp (FOX, FOXA) · 2026-08-06 · Importance 35 · Surprise 48 · In source text

Net periodic pension expense is expected to decrease from $35 million in fiscal 2026 to approximately $28 million in fiscal 2027, a 20% reduction primarily driven by asset gains recognized during fiscal 2026. The Company contributed $36 million to its pension plans in fiscal 2026, compared with $40 million in fiscal 2025 and $86 million in fiscal 2024, with most contributions made voluntarily to improve plan funding. Accumulated pre-tax net losses on pension and postretirement plans declined to $145 million as of June 30, 2026, from $170 million as of June 30, 2025. A 0.25 percentage-point decrease in the discount rate would increase annual pension expense by $3 million and projected benefit obligations by $27 million, while the Company currently expects no material statutory contributions in the immediate future assuming plan returns and interest rates remain stable.

Key facts

• Net periodic pension expense for the Company’s pension plans is expected to decrease from $35 million in fiscal 2026 to approximately $28 million in fiscal 2027. source
• Assuming actual plan returns are consistent with the Company’s expected plan returns in fiscal 2027 and beyond and that interest rates remain constant, the Company would not be required to make any material statutory contributions to its pension plans for the immediate future. source
• Assuming plan asset returns consistent with expected returns and interest rates remain constant, the Company would not be required to make any material contributions to its pension plans for the immediate future and required pension plan contributions for the next fiscal year are not expected to be material. source
• The Company will continue to make voluntary contributions as necessary to improve funded status. source
• The Company’s pension plan contributions were $36 million in fiscal 2026 and $40 million in fiscal 2025, the majority voluntarily made to improve funded status. source
• The expected long-term rate of return on plan assets used in fiscal 2026 was 5.9%, 5.6% in fiscal 2025 and 5.3% in fiscal 2024 based on a target allocation of 22% equity, 71% fixed income and 7% other. source
• The Company will utilize discount rates of 5.6% and 5.1% in calculating the fiscal 2027 service cost and interest cost, respectively, for its plans. source
• The Company will use an expected long-term rate of return of 6.1% for fiscal 2027. source

Impact estimates