Company: FOX
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001628280-25-003592
Chunk: 15

Company: Fox Corp
Filing Date: 2025-02-04
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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The Company’s acquisitions support the Company’s strategy to strengthen its core brands, grow its digital businesses and selectively enhance production capabilities for its digital and linear platforms. During the six months ended December 31, 2024 and 2023, the Company made no acquisitions.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 8—Commitments and Contingencies under the heading "Venu Sports”). In connection with that decision, FOX expensed the costs that were previously capitalized in anticipation of the launch in Restructuring, impairment and other corporate matters in the Statements of Operations during the three months ended December 31, 2024.

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FOX CORPORATIONNOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3. INVENTORIES, NET

The Company’s inventories were comprised of the following:As ofDecember 31,2024As ofJune 30,2024(in millions) Licensed programming, including prepaid sports rights$1,448 $841 Owned programming617 497 Total inventories, net2,065 1,338 Less: current portion of inventories, net(1,171)(626)Total non-current inventories, net$894 $712 Owned programmingReleased$269 $238 In-process or other348 259 Total$617 $497 The following table presents the aggregate amortization expense related to Inventories, net included in Operating expenses in the Statements of Operations:For the three months ended December 31, For the six months ended December 31, 2024202320242023(in millions)Total amortization expense$2,758 $2,467 $3,888 $3,462 

NOTE 4. FAIR VALUE

Fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: (i) inputs that are quoted prices in active markets (“Level 1”); (ii) inputs other than quoted prices included within Level 1 that are observable, including quoted prices for similar assets or liabilities (“Level 2”); and (iii)