Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Drew Crum - Stifel Nicolaus.
Drew Crum - Stifel Nicolaus
Good morning, everyone. I wonder if you could address your comments concerning the reduced forecast for toys? Is there a specific property that is driving that decision? Just quantify for us what Hasbro’s expectations were for toys in the second half of the year?
Secondly, if you could address the deferred revenue line item, which I think sequentially is up about 47%. Is that all Hasbro-related and when might we expect minimum guarantees from Iron Man and Hulk to hit the balance sheet? Thanks.
Ken West
With respect to the revenues that are recorded in our toys segment, about 85% of those amounts reflect our royalty earnings from Hasbro. Just to give you a little bit more specifics, the amount of revenue that was recorded in the second quarter for reported earnings under that Hasbro license agreement was $16.4 million on the quarter which means that for the first half we have recognized approximately $37.5 million. Our agreement with Hasbro is that it allows us to disclose only the amount of royalty earnings under the license, which I just mentioned. So there’s really no other additional information that we are allowed to disclose at this time.
Drew Crum - Stifel Nicolaus
Fair enough.
Peter Cuneo
Now you had, also Drew, a question about deferred revenue?
Drew Crum - Stifel Nicolaus
Correct.
Ken West
The components of deferred revenue at June 30, 2007 have many components, the most significant of which relate to the Hasbro advantage which cumulatively we have collected $105 million over a year ago, $70 million which was collected during the current quarter, we have earned out the $37.5 million that we have disclosed so far. So that is the major component of deferred revenue, as well as multi-character license agreements that have characters licensed both for the Iron Man movie and the Hulk movie which are being deferred until the earliest in-store exploitation date next year for those movie releases.
Operator
Our next question comes from the line of Barton Crockett - JP Morgan.
Barton Crockett - JP Morgan
I suspect you may not be able to go here, but I just wanted to give it a shot. The Spider-Man gross toy sales in the last movie I think were like $175 million in ’04. Is there any sense just generally, I know you can’t say specifically with Hasbro, but generally should we be looking for gross toy sales north of that or south of that? That would be the first question.
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