FOX · 10-K · 2026A · Full report

Interest Rate Environment

Fox Corp (FOX, FOXA) · 2026-08-06 · Importance 30 · Surprise 40

Fox expects to use discount rates of 5.6% and 5.1% for fiscal 2027 pension service cost and interest cost, respectively, and an expected long-term asset return rate of 6.1%. Pension and postretirement plan deferred losses declined to $145 million at June 30, 2026 from $170 million a year earlier, while future contributions remain dependent on plan returns, statutory requirements, and interest-rate movements. 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; fiscal 2027 pension expense is expected to decline to approximately $28 million from $35 million in fiscal 2026.

Key facts

• Interest expense, net increased $47 million or 21% for fiscal 2026 and totaled $274 million. source
• Discount rates used for service cost were 5.6% for fiscal 2026, 5.5% for fiscal 2025 and 5.3% for fiscal 2024; discount rates for interest cost were 5.0% for fiscal 2026, 5.3% for fiscal 2025 and 5.4% for fiscal 2024. source