Adjusted Gross Receipts
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| In one sentence | A movie's gross receipts after subtracting a short, specific list of off the top deductions, like taxes and collection costs. |
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| Category | Film and Television |
| Related | Gross Receipts, Off-the-Tops, First Dollar Gross |
Imagine your lemonade stand's total sales for the summer, before subtracting anything, is your grand total. Now subtract just a few unavoidable costs, like the small fee the farmers market charged you to set up your table, and taxes you owed on the sales. What is left is a slightly smaller, adjusted number.
Adjusted gross receipts works this way for a movie. It generally means Gross Receipts minus Off-the-Tops, a short specific list of deductions like collection costs, currency conversion, taxes, and dues. Some people use the term a little more loosely, to mean gross receipts minus all distribution costs, so it is always worth checking exactly which meaning a particular contract intends.
Fun facts
- Adjusted gross receipts is usually a much bigger number than a movie's actual profit, since only a small, specific list of deductions has been taken out so far.
- A First Dollar Gross participation is calculated based on adjusted gross receipts, which is part of why it is such a valuable kind of deal for the talent who receive it.
- Because the term can be used in two slightly different ways, contracts always spell out their own precise definition rather than relying on a shared, universal one.