Glossary

Record of transactions between U.S. residents and foreign residents during a given time period. Includes transactions in goods, services, income, assets, and liabilities. It is broken down into the current accounts (international), capital accounts (international), and financial accounts (international).

Net insurance settlements paid to the rest of the world as policyholders. Excludes taxes paid by domestic corporations to foreign governments.

Transactions covering a wide range of private services sold to or purchased from foreigners, such as advertising, telecommunications, computer and data processing services, and accounting and legal services.

Record of capital transfers between U.S. residents and foreign residents, such as debt forgiveness and migrants' transfers, and acquisitions and disposals of nonproduced nonfinancial assets between residents and nonresidents.

The difference between private capital consumption allowances (CCA) and private consumption of fixed capital (CFC).

Consists of tax-return-based depreciation charges for corporations and nonfarm proprietorships and of historical-cost depreciation (calculated by BEA) for farm proprietorships, rental income of persons, and nonprofit institutions.

Expenditures made to acquire, add to, or improve property, plant, and equipment (PP&E). PP&E includes: land, timber, and minerals; structures, machinery, equipment, special tools, and other depreciable property; construction in progress; and tangible and intangible exploration and development costs. Changes in PP&E due to changes in entity-such as mergers, acquisitions, and divestitures-or to changes in accounting methods are excluded. Capital expenditures are measured on a gross basis; sales and other dispositions of fixed assets are not netted against them.

Table that expands the fixed investment component of the input-output (I-O) use table to show the types of new equipment, new structures, and software used by each industry.

Income accruing to employees as remuneration for their work for domestic production. It is the sum of wage and salary accruals and of supplements to wages and salaries. It includes compensation paid to the rest of the world and excludes compensation received from the rest of the world.

Wage and salary disbursements and supplements to wages and salaries received by U.S. residents, including wages and salaries received from the rest of the world.

The charge for the using up of private and government fixed capital located in the United States. It is the decline in the value of the stock of fixed assets due to wear and tear, obsolescence, accidental damage, and aging. For general government and for nonprofit institutions that primarily serve individuals, CFC serves as a measure of the value of the current services of the fixed assets owned and used by these entities.

This measure–profits from current production–is the income that arises from current production, measured before income taxes, of organizations treated as corporations in the national income and product accounts (NIPAS). With several differences, this income is measured as receipts less expenses as defined in Federal tax law. Among these differences are: Receipts exclude capital gains and dividends received; expenses exclude bad debt, depletion, and capital losses; inventory withdrawals are valued at current cost; and depreciation is on a consistent accounting basis and valued at current replacement cost.

The sum of imports of goods and services, income payments to the rest of the world, and current taxes and transfer payments to the rest of the world.

The sum of exports of goods and services and income receipts from the rest of the world.

The current operating revenue and subsidies received by government enterprises from other levels of government less the current expenses of government enterprises.

Payments consisting of business current transfer payments to the rest of the world (net), plus nonresident taxes paid by domestic corporations to foreign governments.

Funds that parent companies provide to their affiliates net of funds that affiliates provide to their parents. For U.S. direct investment abroad, capital flows also include funds that U.S. direct investors pay to unaffiliated foreign residents when foreign affiliates are acquired and funds that U.S. investors receive from them when foreign affiliates are sold. Similarly, for foreign direct investment in the United States, capital flows include funds that foreign direct investors pay to unaffiliated U.S. residents when U.S. affiliates are acquired and funds that foreign direct investors receive from them when U.S. affiliates are sold. Foreign direct investment in the United States capital flows also include debt and equity transactions between U.S. affiliates and members of their foreign parent groups other than their foreign parents. Direct investment capital flows consist of equity capital flows, intercompany debt, and reinvested earnings. Direct investment capital flows are components of the financial account (international).

Receipts received by U.S. residents of dividends from foreign corporations plus earnings distributed by unincorporated foreign affiliates to their U.S. parents.

Investment in equipment and software consists of capital account purchases of new machinery, equipment, furniture, vehicles, and computer software; dealers' margins on sales of used equipment; and net purchases of used equipment from government agencies, persons, and the rest of the world. Own-account production of computer software is also included.

Equity capital increases and decreases. Equity capital increases consist of payments by parent companies to third parties abroad for the purchase of capital stock or other equity interests when they acquire an existing business, payments made to acquire additional ownership interests in their affiliates, and capital contributions to their affiliates. Equity capital decreases are funds that parent companies receive (except from distributions of earnings) when they reduce their equity interest in their affiliates.

Goods and services sold by U.S. residents to foreign residents.

Produced assets that are used repeatedly, or continuously, in processes of production for an extended period of time. They consist of equipment, structures (including, by convention, owner-occupied housing) and intellectual property products, but exclude consumer durables

Consists of purchases of residential and nonresidential structures, equipment and intellectual property products by private businesses, by nonprofit institutions, and by governments in the United States. (Owner-occupied housing is treated like a business in the NIPAs.)

Expenditures consisting of compensation of general government employees, consumption of fixed capital (CFC), and intermediate purchases of goods and services less sales to other sectors and own-account production of structures and software. It excludes current transactions of government enterprises, interest paid or received by government, and subsidies.