Table 3.—BEA Rates of Depreciation, Service Lives, Declining-Balance Rates, and Hulten-Wykoff Categories

Type of asset Rate of depreciation Service life (years) Declining-balance rate Hulten-Wykoff category/1/
Private nonresidential equipment
Office, computing, and accounting machinery/2/:
Before 1978 0.2729 8 2.1832 B
1978 and later .3119 7 2.1832 B
Communications equipment:
Business services/3/ .1500 11 1.6500 C
Other industries/3/ .1100 15 1.6500 C
Instruments/4/ .1350 12 1.6203 C
Photocopy and related equipment/5/ .1800 9 1.6203 C
Nuclear fuel/6/ 4
Other fabricated metal products/7/ .0917 18 1.6500 C
Steam engines and turbines/8/ .0516 32 1.6500 C
Internal combustion engines/8/ .2063 8 1.6500 C
Metalworking machines/9/ .1225 16 1.9600 A
Special industrial machinery, n.e.c. .1031 16 1.6500 C
General industrial, including materials handling equipment .1072 16 1.7150 A
Electrical transmission, distribution, and industrial apparatus .0500 33 1.6500 C
Trucks, buses, and truck trailers:
Local and interurban passenger transit/10/ .1232 14 1.7252 A
Trucking and warehousing; and auto repair, services, and parking/10/ .1725 10 1.7252 A
Other industries .1917 9 1.7252 A
Autos/11/
Aircraft:
Transportation by air, depository institutions, and business services:
Before 1960 .1031 16 1.6500 C
1960 and later .0825 20 1.6500 C
Other industries:
Before 1960 .1375 12 1.6500 C
1960 and later .1100 15 1.6500 C
Ships and boats .0611 27 1.6500 B
Railroad equipment .0589 28 1.6500 C
Household furniture and fixtures/12/ .1375 12 1.6500 C
Other furniture/12/ .1179 14 1.6500 C
Farm tractors/13/ .1452 9 1.3064 A
Construction tractors/13/ .1633 8 1.3064 A
Agricultural machinery, except tractors .1179 14 1.6500 C
Construction machinery, except tractors .1550 10 1.5498 A
Mining and oil field machinery .1500 11 1.6500 C
Service industry machinery:
Wholesale and retail trade/14/ .1650 10 1.6500 C
Other industries/14/ .1500 11 1.6500 C
Household appliances/15/ .1650 10 1.6500 C
Other electrical equipment/16/ .1834 9 1.6500 C
Other/4/ .1473 11 1.6230 C
Private nonresidential structures
Industrial buildings .0314 31 .9747 A
Mobile offices/17/ .0556 16 .8892 A
Office buildings/17/ .0247 36 .8892 A
Commercial warehouses/17/ .0222 40 .8892 A
Other commercial buildings/17/ .0262 34 .8892 A
Religious buildings .0188 48 .9024 C
Educational buildings .0188 48 .9024 C
Hospital and institutional buildings .0188 48 .9024 B
Hotels and motels/18/ .0281 32 .8990 B
Amusement and recreational buildings/18/ .0300 30 .8990 B
All other nonfarm buildings/18/ .0249 38 .8990 B
Railroad replacement track/19/ .0275 38 .9480 C
Other railroad structures/19/ .0166 54 .9480 C
Telecommunications/19/ .0237 40 .9480 C
Electric light and power/19/:
Before 1946 .0237 40 .9480 C
1946 and later .0211 45 .9480 C
Gas/19/ .0237 40 .9480 C
Petroleum pipelines/19/ .0237 40 .9480 C
Farm/20/ .0239 38 .9100 C
Mining exploration, shafts, and wells:
Petroleum and natural gas/21/:
Before 1973 .0563 16 .9008 C
1973 and later .0751 12 .9008 C
Other/21/ .0450 20 .9008 C
Local transit/22/ .0237 38 .8990 C
Other/22/ .0225 40 .8990 C
Residential capital (private and government)
1-to-4-unit structures-new/20/ .0114 80 .9100 A
1-to-4-unit structures-additions and alterations/20/ .0227 40 .9100 A
1-to-4-unit structures-major replacements/20/ .0364 25 .9100 A
5-or-more-unit structures-new/20/ .0140 65 .9100 A
5-or-more-unit structures-additions and alterations/20/ .0284 32 .9100 A
5-or-more-unit structures-major replacements/20/ .0455 20 .9100 A
Mobile homes/20/ .0455 20 .9100 A
Other structures/20/ .0227 40 .9100 A
Equipment/23/ .1500 11 1.6500 C
Durable goods owned by consumers/24/
Furniture, including mattresses and bedsprings .1179 14 1.6500 B
Kitchen and other household appliances .1500 11 1.6500 C
China, glassware, tableware, and utensils/25/ .1650 10 1.6500 C
Other durable house furnishings/25/ .1650 10 1.6500 C
Video and audio products, computers and peripheral equipment, and musical instruments/26/ .1833 9 1.6500 B
Jewelry and watches/25/ .1500 11 1.6500 C
Ophthalmic products and orthopedic appliances/25/ .2750 6 1.6500 C
Books and maps/25/ .1650 10 1.6500 C
Wheel goods, sports and photographic equipment, boats, and pleasure aircraft/27/ .1650 10 1.6500 C
Autos/11/
Other motor vehicles/28/ .2316 8 1.8530 A
Tires, tubes, accessories, and other parts/28/ .6177 3 1.8530 A
Government nonresidential equipment/29/
Federal:
National defense:
Aircraft:
Airframes:
Bombers .0660 25 1.6500 C
F-14 type .0868 19 1.6500 C
Attack, F-15 and F-16 types .0825 20 1.6500 C
F-18 type .1100 15 1.6500 C
Electronic warfare .0717 23 1.6500 C
Cargo and trainers .0660 25 1.6500 C
Helicopters .0825 20 1.6500 C
Engines .2750 6 1.6500 C
Other:
Before 1982 .1179 14 1.6500 C
1982 and later .1650 10 1.6500 C
Missiles:/30/
Strategic 20
Tactical 15
Torpedoes 15
Fire control equipment 10
Space programs 20
Ships:
Surface ships .0550 30 1.6500 C
Submarines .0660 25 1.6500 C
Government furnished equipment:
Electrical .1834 9 1.6500 C
Propulsion .0825 20 1.6500 C
Hull, mechanical .0660 25 1.6500 C
Ordnance .1650 10 1.6500 C
Other .1650 10 1.6500 C
Vehicles:
Tanks, armored personnel carriers, and other combat vehicles .0825 20 1.6500 C
Noncombat vehicles:
Trucks .2875 6 1.7252 C
Autos/31/
Other .2465 7 1.7252 C
Electronic equipment:
Computers and peripheral equipment/32/
Electronic countermeasures .2357 7 1.6500 C
Other .1650 10 1.6500 C
Other equipment:
Medical .1834 9 1.6500 C
Construction .1550 10 1.5498 C
Industrial .0917 18 1.6500 C
Ammunition plant .0868 19 1.6500 C
Atomic energy .1375 12 1.6500 C
Weapons and fire control .1375 12 1.6500 C
General .1650 10 1.6500 C
Other .1375 12 1.6500 C
Nondefense:
General government:
Computers and peripheral equipment/32/
Aerospace equipment .1100 15 1.6500 C
Vehicles .4533 5 2.2664 C
Other .1650 10 1.6500 C
Enterprises:
U.S. Postal Service:
Computers and peripheral equipment/32/
Vehicles .3238 7 2.2664 C
Other .1100 15 1.6500 C
Tennessee Valley Power Authority .0500 33 1.6500 C
Bonneville Power Authority .0500 33 1.6500 C
Other .0660 25 1.6500 C
State and local:
Power tools, lawn and garden equipment .1650 10 1.6500 C
Miscellaneous metal products .0917 18 1.6500 C
Agricultural machinery and equipment .1833 9 1.6500 C
Construction machinery and equipment .1650 10 1.6500 C
Metalworking machinery and equipment .1031 16 1.6500 C
General purpose machinery and equipment .1500 11 1.6500 C
Special industry machinery and equipment .1500 11 1.6500 C
Integrating and measuring instruments .1375 12 1.6500 C
Motors, generators, motor generator sets .0516 32 1.6500 C
Switchgear and switchboard equipment .0500 33 1.6500 C
Electronic components and accessories .1833 9 1.6500 C
Miscellaneous electrical machinery .1375 12 1.6500 C
Calculating and accounting machines .2357 7 1.6500 C
Typewriters .2357 7 1.6500 C
Computers and peripheral equipment
Machine shop products .2063 8 1.6500 C
Wood commercial furniture .1179 14 1.6500 C
Metal commercial furniture .1179 14 1.6500 C
Household appliances .1500 11 1.6500 C
Home electronic equipment .1500 11 1.6500 C
Motor vehicles .1650 10 1.6500 C
Motorcycles .1650 10 1.6500 C
Aircraft .1100 15 1.6500 C
Railroad equipment .0590 28 1.6500 C
Sporting and athletic goods .1650 10 1.6500 C
Photographic and photocopying equipment .1650 10 1.6500 C
Mobile classrooms, mobile offices, etc .1650 10 1.6500 C
Musical instruments .1834 9 1.6500 C
Other equipment .1375 12 1.6500 C
Government nonresidential structures/33/
Federal, State and local:
National defense:
Buildings:
Industrial .0285 32 .9100 C
Educational .0182 50 .9100 C
Hospital .0182 50 .9100 C
Other .0182 50 .9100 C
Nonbuildings:
Highways and streets .0152 60 .9100 C
Conservation and development .0152 60 .9100 C
Sewer systems .0152 60 .9100 C
Water systems .0152 60 .9100 C
Other .0152 60 .9100 C

1. This column refers to Hulten-Wykoff categories (Hulten and Wykoff 1981b; Wykoff and Hulten 1979). Type A assets are types of assets for which Hulten and Wykoff specifically estimated age-price profiles. Type B assets are those for which they used empirical research by others and their judgement to estimate the depreciation rate. Type C assets are assets for which they estimated an average declining-balance rate from data for all type A and B assets.

2. The depreciation rate for this type of asset is not used for computers and peripheral equipment. Depreciation rates for these assets are taken from Oliner as described in the text.

3. The declining-balance rate is from the Hulten-Wykoff communications equipment aggregate.

4. Instruments and other private nonresidential equipment, called producer durable equipment by Hulten-Wykoff, are classified by them as type C but appear to be type B as they were given a declining-balance rate of 1.6203.

5. The declining-balance rate is from the Hulten-Wykoff other producer durable equipment aggregate.

6. The depreciation rates for nuclear fuel are based on a straight-line rate pattern and a Winfrey retirement pattern.

7. The declining-balance rate is from the Hulten-Wykoff fabricated metal products aggregate.

8. The declining-balance rate is from the Hulten-Wykoff engines and turbines aggregate.

9. The depreciation rate and service life listed apply to nonmanufacturing industries; the service lives and depreciation rates used for manufacturing industries differ by industry. The Hulten-Wykoff type of asset listed applies to all industries.

10. The declining-balance rate is from the Hulten-Wykoff trucks, buses, and truck trailer aggregate.

11. Depreciation rates for autos are derived from data on new- and used-auto prices.

12. The declining-balance rate is from the Hulten-Wykoff furniture and fixtures aggregate.

13. The declining-balance rate is from the Hulten-Wykoff tractors aggregate.

14. The declining-balance rate is from the Hulten-Wykoff service industry machinery aggregate.

15. The declining-balance rate is set to the Hulten-Wykoff producer durable equipment default.

16. The declining-balance rate is from the Hulten-Wykoff electrical equipment (not elsewhere classified) aggregate.

17. The declining-balance rate is from the Hulten-Wykoff commercial aggregate.

18. The declining-balance rate is from the Hulten-Wykoff other private nonresidential structures aggregate, which consists of buildings used primarily for social and recreational activities and buildings not elsewhere classified.

19. The declining-balance rate is from the Hulten-Wykoff public utilities aggregate.

20. The declining-balance rate is set to the Hulten-Wykoff private nonresidential structures default.

21. The declining-balance rate is from the Hulten-Wykoff mining exploration, shafts, and wells aggregate.

22. The declining-balance rate is from the Hulten-Wykoff other private nonresidential structures aggregate, which consists of streets, dams and reservoirs, and sewer and water facilities.

23. The declining-balance rate is set to the Hulten-Wykoff producer durable equipment default.

24. For all consumer durables except for motor vehicles and parts and computing equipment, the declining-balance rate is set to the Hulten-Wykoff producer durable equipment default.

25. The corresponding Hulten-Wykoff consumer durables category is other.

26. Depreciation rates for computers and peripheral equipment are taken from Oliner as described in the text of the article. The information listed applies to video and audio products and musical instruments. The corresponding Hulten-Wykoff aggregate is radio and television receivers, recorders, and musical instruments. Radio and television receivers, recorders, and musical instruments are classified by Hulten-Wykoff as type B but are indistinguishable from type C as their declining-balance rate is 1.65.

27. The corresponding Hulten-Wykoff consumer durables category is wheel goods, durable toys, sports equipment.

28. The declining-balance rate is from the Hulten-Wykoff motor vehicles and parts aggregate. The declining-balance rate for this category is calculated under the assumption that the service life for consumer durables motor vehicles and parts is equal to the service life for producer durable equipment autos previously used by BEA.

29. For most government nonresidential equipment, the declining-balance rate is set to the Hulten-Wykoff producer durable equipment default. Where possible, the rate is set equal to the rate used for comparable equipment in the private sector.

30. Missiles are depreciated using straight-line patterns of depreciation and a Winfrey retirement pattern.

31. Depreciation rates for government-owned autos are derived from data on autos that are privately owned.

32. Depreciation rates for these assets are taken from Oliner as described in the text of the article.

33. For all government nonresidential structures, the declining-balance rate is set to the Hulten-Wykoff private nonresidential structures default.