limited to, those related to customer demand and acceptance of our products, our ability to collect our accounts
receivable as they become due, successfully achieving our product release schedules and attaining our forecasted
sales objectives, the impact of acquisitions and other strategic transactions in which we may engage, the impact
of competition, economic conditions in the United States and abroad, the seasonal and cyclical nature of our
business and operating results, risks of product returns and the other risks described in the "Risk Factors" section,
included in Part I, Item 1A of this report.
programmers and by non-employee software developers ("independent artists" or "third-party developers"). We
typically advance development funds to the independent artists and third-party developers during development of
our games, usually in installment payments made upon the completion of specified development milestones.
Contractually, these payments are generally considered advances against subsequent royalties on the sales of the
products. These terms are set forth in written agreements entered into with the independent artists and third-party
developers.
payments and marketing commitments that may not be dependent on any deliverables. Celebrities and
organizations with whom we have contracts include: FIFA, FIFPRO Foundation, FAPL (Football Association
Premier League Limited), and DFL Deutsche Fußball Liga GmbH (German Soccer League) (professional
soccer); National Basketball Association (professional basketball); PGA TOUR, Tiger Woods and Augusta
National (professional golf); National Hockey League and NHL Players' Association (professional hockey);
National Football League Properties, PLAYERS Inc., and Red Bear Inc. (professional football); Collegiate
Licensing Company (collegiate football); Zuffa, LLC (Ultimate Fighting Championship); ESPN (content in EA
SPORTS games); Hasbro, Inc. (most of Hasbro's toy and game intellectual properties); and LucasArts and Lucas
Licensing (Star Wars: The Old Republic). These developer and content license commitments represent the sum
of (1) the cash payments due under non-royalty-bearing licenses and services agreements and (2) the minimum
guaranteed payments and advances against royalties due under royalty-bearing licenses and services agreements,
the majority of which are conditional upon performance by the counterparty. These minimum guarantee
payments and any related marketing commitments are included in the table below.
expect them to have on our liquidity and cash flow in future periods (in millions):