Get this: Fox may not have to cough up $787.5M in their settlement with Dominion. Here’s the scoop.

Fox Corp.’s recent settlement with Dominion Voting Systems over defamation charges is making headlines, but the ultimate cost to the media company may not be as high as some expect. The $787.5 million settlement is certainly eye-popping, but there are ways Fox can defray some of the expense, primarily through insurance and the use of tax deductions.

For example, Fox can deduct the Dominion settlement from its income taxes as an expense necessary for the cost of doing business. Big companies often deduct large settlements to help offset some of the cost, but since settlement amounts are usually confidential, it’s difficult to pin down exactly how much they benefit.

Additionally, if Fox is insured, insurance is likely to cover some of the settlement. However, there could be an annual aggregate limit of liability, which could mean that insurers wouldn’t cover another big-money settlement. And media companies and insurers don’t always agree on who should cover what, since there are caveats written into contracts that allow insurers to avoid paying under certain circumstances.

Despite the settlement, Fox has said it doesn’t expect the settlement to affect its operations. MoffettNathanson’s analyst Robert Fishman said everything indicates the company will be able to run its business as usual. Fishman said he doesn’t expect the settlement to hamper Fox’s ability to return money to shareholders, including a $1 billion accelerated share repurchase program announced in February.

While Fox has a similar lawsuit looming with another voting machine company, Smartmatic, the case might not go to court for a couple of years.