Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Jun. 30, 2025

Schedule of Projected Benefit Obligation, Changes in Fair Value of Plan Assets and Funded Status

The Company uses a June 30 measurement date for all pension and postretirement benefit plans. The following table sets forth the change in the projected benefit obligation, change in the fair value of plan assets and funded status for the Company’s pension and postretirement benefit plans:


	Pension benefits				Postretirement benefits
	As of June 30,
	2025		2024		2025		2024
	(in millions)
Projected benefit obligation, beginning of the year	$	1,119	$	1,172	$	45	$	47
Service cost	23		27		1		—
Interest cost	57		61		2		2
Benefits paid	(44)		(43)		(3)		(3)
Settlements(a)	(37)		(50)		—		—
Actuarial losses (gains)(b)	37		(48)		(1)		(1)
Projected benefit obligation, end of the year	1,155		1,119		44		45
Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year	891		853		—		—
Actual return on plan assets	54		45		—		—
Employer contributions	40		86		3		3
Benefits paid	(44)		(43)		(3)		(3)
Settlements(a)	(37)		(50)		—		—
Fair value of plan assets, end of the year	904		891		—		—
Funded status(c)	$	(251)	$	(228)	$	(44)	$	(45)
Grantor Trust assets(c)	$	265	$	266	$	—	$	—


(a)			Represents the full settlement of former employees’ deferred pension benefit obligations through lump sum payments.
(b)			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.
(c)			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.

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized in the Balance Sheets consist of:


	Pension benefits				Postretirement benefits
	As of June 30,
	2025		2024		2025		2024
	(in millions)
Pension assets	$	10	$	36	$	—	$	—
Accrued pension liabilities	(261)		(264)		(44)		(45)
Net amounts recognized	$	(251)	$	(228)	$	(44)	$	(45)

Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss

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


	Pension benefits				Postretirement benefits
	As of June 30,
	2025		2024		2025		2024
	(in millions)
Actuarial losses (gains)	$	197	$	169	$	(27)	$	(30)

Schedule of Accumulated and Projected Benefit Obligations and Fair Value of Plan Assets for Funded and Unfunded Pension Plans

Information about funded and unfunded pension plans is presented below:


	Funded plans				Unfunded plans
	As of June 30,
	2025		2024		2025			2024
	(in millions)
Projected benefit obligation	$	894	$	855	$	261		$	264
Accumulated benefit obligation	794		747		256			260
Fair value of plan assets	904		891		—		(a)	—		(a)


(a)			The fair value of the assets in the Grantor Trust as of June 30, 2025 and 2024 was $265 million and $266 million, respectively.

Schedule of Components of Periodic Benefit Costs

The components of net periodic benefit costs were as follows:


	Pension benefits						Postretirement benefits
	For the years ended June 30,
	2025		2024		2023		2025		2024		2023
	(in millions)
Service cost	$	23	$	27	$	30	$	1	$	—	$	1
Interest cost	57		61		52		2		2		2
Expected return on plan assets	(50)		(45)		(40)		—		—		—
Amortization of deferred losses (gains)	5		12		23		(4)		(4)		(4)
Net periodic benefit costs	$	35	$	55	$	65	$	(1)	$	(2)	$	(1)

Schedule of Assumptions Used

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.


	Pension benefits						Postretirement benefits
	For the years ended June 30,
	2025		2024		2023		2025		2024		2023
Additional information
Weighted-average assumptions used to determine benefit obligations
Discount rate	5.5	%	5.5	%	5.3	%	5.3	%	5.4	%	5.3	%
Weighted-average assumptions used to determine net periodic benefit costs
Discount rate for service cost	5.5	%	5.3	%	4.8	%	5.5	%	5.3	%	4.8	%
Discount rate for interest cost	5.3	%	5.4	%	4.5	%	5.3	%	5.4	%	4.5	%
Expected return on plan assets	5.6	%	5.3	%	5.0	%	N/A		N/A		N/A

N/A – not applicable.

Schedule of Assumed Health Care Cost Trend Rates

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


	Postretirement benefits
	As of June 30,
	2025		2024
Health care cost trend rate	6.4	%	6.6	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.9	%	4.9	%
Year that the rate reaches the ultimate trend rate	2031		2031

Schedule of Expected Estimated Benefit Payments

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:


	Expected benefit payments
	Pension benefits		Postretirement benefits
	(in millions)
Fiscal year
2026	$	88	$	3
2027	87		4
2028	89		4
2029	96		4
2030	98		4
2031-2035	482		19

Schedule of Plan Assets and Grantor Trust Assets by Level within Fair Value Hierarchy

The assets are classified by level within the fair value hierarchy, as described in Note 6—Fair Value, as of June 30, 2025 and 2024:


	As of June 30, 2025
			Fair value measurements at reporting date using		Assets measured
	Total		Level 1		at NAV(a)
	(in millions)
Pension plan assets
Pooled funds(b)
Money market funds	$	35	$	35	$	—
Domestic equity funds	116		116		—
Domestic fixed income funds(c)	582		582		—
International equity funds	83		83		—
Balanced funds	55		55		—
Partnership interests	33		—		33
Total fair value of plan assets	$	904	$	871	$	33

Grantor Trust assets
Pooled funds(b)
Money market funds	$	8	$	8	$	—
Domestic fixed income funds(c)	68		68		—
Balanced funds	60		60		—
Domestic government obligations(d)	128		128		—
Other(e)	1		1		—
Total fair value of Grantor Trust assets	$	265	$	265	$	—


	As of June 30, 2024
			Fair value measurements at reporting date using		Assets measured
	Total		Level 1		at NAV(a)
	(in millions)
Pension plan assets
Pooled funds(b)
Money market funds	$	12	$	12	$	—
Domestic equity funds	156		156		—
Domestic fixed income funds(c)	488		488		—
International equity funds	118		118		—
Balanced funds	69		69		—
Partnership interests	48		—		48
Total fair value of plan assets	$	891	$	843	$	48

Grantor Trust assets
Pooled funds(b)
Money market funds	$	26	$	26	$	—
Domestic fixed income funds(c)	66		66		—
Balanced funds	53		53		—
Domestic government obligations(d)	120		120		—
Other(e)	1		1		—
Total fair value of Grantor Trust assets	$	266	$	266	$	—


(a)			Investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy disclosure. These investments have monthly liquidity.
(b)			Pooled funds that have a readily determinable fair value are valued at the regularly published NAV.
(c)			Domestic fixed income funds consist primarily of investment grade securities.
(d)			Government obligations consist of investment grade securities whose fair value is based on observable market data obtained from dealers and brokers.
(e)			Includes cash and cash equivalents.

Schedule of Weighted Average Asset Allocations by Asset Category

The funded plans weighted-average asset allocation, by asset category, are as follows:


	Pension benefits
	As of June 30,
	2025		2024
Asset category
Equity investments	22	%	31	%
Fixed income investments, including cash	72		61
Other	6		8
Total	100	%	100	%

Fox Corp 10-K