Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Elizabeth Osur - Citigroup.
Elizabeth Osur – Citigroup
Thanks, great quarter, guys. I just wanted to follow up on your toy expectations for next year. I was hoping you could give us a little bit more color in terms of what level of toy sales you are expecting or what sort of royalties you're expecting, and how those might split out between the different movie properties? Thank you.
Ken West
Liz, I think the best way for us to answer that is we expect the operating income from our toy business next year to represent 30% of our total guidance. That would include not only what we get from Hasbro but also all of our other toy licenses and the business that we're still running ourselves.
Elizabeth Osur – Citigroup
Okay, so you can't give anymore color between the films?
Ken West
I think it would be unfair to Hasbro for us to offer specific guidance. I think if you're interested in that, you might direct that question to Hasbro.
Elizabeth Osur – Citigroup
Okay. Thanks.
Operator
Your next question comes from Eric Handler – Lehman Brothers.
Eric Handler – Lehman Brothers
Thanks, good morning. Can you just dig a little deeper on your balance sheet for the third quarter? Your cash was higher than expected and I was surprised you paid down your credit facilities as much as you did. Was there anything specific in the quarter that you got in terms of a licensing payment that helped out the third quarter free cash flow? Also, can you discuss free cash flow expectations for 2007?
Ken West
Eric, that's a very good question. Number one, with respect to the first question, we are just continually receiving the scheduled minimum guaranty payments and overages anticipated for the full year. Additionally, we are collecting advances on Spiderman 3 merchandise license agreements, that as I mentioned, will be recognized in Q1 and Q2 of 2007. As far as cash flow from operations that we anticipate for 2007, we're initially estimating that to be in $80 million to $90 million cash range.
Eric Handler – Lehman Brothers
Thank you.
Operator
Our next question comes from the line of Gordon Hodge - Thomas Weisel Partners.
Gordon Hodge - Thomas Weisel Partners.
Good morning, a couple of questions. I was wondering if you had succeeded with any of the international presales related to the Iron Man film or Hulk, or if that is something we should anticipate shortly. Also I think you mentioned in '07 guidance that you're expecting strong interactive revenues. I think, if I’m not mistaken, you might have a mobile license that's expiring or being renewed, whatever. Maybe you could talk about that.
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