Boneyard

DEFINITION of 'Boneyard'

A boneyard is a storage space for obsolete items. The term "boneyard" derives from the term's association with cemeteries. The fact that items stored here are generally stripped of any functional parts, and only their "skeletons" remain, tie the concepts together. The terms "boneyard" and "graveyard" may be seen as interchangeable when referring to these storage systems.

BREAKING DOWN 'Boneyard'

Scrap yards for vehicles and industrial machinery often resemble metal boneyards. In the office environment, storage rooms for obsolete computers and other hardware may be considered to fit the boneyard category as well.

Types of Boneyards

Boneyards can exist in a wide range of environments. Often, items kept in a boneyard are of little to no value in their current condition and may be considered just a storage space for the items as they are prepared for disposal.

In a technological sense, a boneyard may include parts for outdated systems. The CRT computer monitor, once fairly common, is no longer in use traditionally. Even a part that may have some use, such as internal computer hard drive, may be deemed obsolete if its capacity is well below the standards of the day. A company may place those items in a boneyard until they can properly handle and dispose of them.

Another common form of a boneyard centers on the automotive or industrial industries. These can include vehicles or other types of equipment that are no longer in working order but may have value as a source of spare parts. It can also include any parts stripped from the original equipment that may be useful to repair equipment that is in better condition. Scrap metal boneyards may have items whose only value is in the material in which they are made.

Examples of Boneyards

Some of the more notable boneyards, or graveyards, include those used to store decommissioned aircraft. One of the largest within the United States is located at Davis-Monthan Air Force Base in Tucson, Arizona. The approximately 2,600-acre property holds an estimated inventory of over 4,400 decommissioned aircraft.

In Las Vegas, Nevada, the Neon Boneyard houses a variety of neon signage that the variety of casino properties in the area have removed or decommissioned. While the facility functions as storage for the items, it also functions as a museum. This allows the items to be cared for and shared for the historical value the pieces may provide even if their functional value is quite low.

RELATED TERMS
  1. Big Ticket Item

    Big ticket items are high-value items, such as houses and cars, ...
  2. Monetary Item

    An asset or liability carrying a value in dollars that will not ...
  3. Unusual Item

    In financial accounting, unusual items are line items on an income ...
  4. Inventory Management

    Inventory management is the overseeing and controlling of the ...
  5. Functional Obsolescence

    A reduction in the usefulness or desirability of an object because ...
  6. Exceptional Item

    Charges incurred that must be noted on a company's balance sheet, ...
Related Articles
  1. Investing

    Financial Statement: Extraordinary Vs. Nonrecurring Items

    When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ...
  2. Markets

    GE and the Future of Energy Storage

    Find out how energy storage, led by GE, is surging as power companies search for methods to smooth usage and backstop new technologies.
  3. Personal Finance

    5 Avoidable Shopping Mistakes

    By avoiding these common shopping mistakes, you may be able to save your hard-earned dollars and get more bang for your buck.
  4. Personal Finance

    How To Use Price Adjustments To Get The Best Deals

    We take a look at 6 top retailers' price adjustment policies, and tell you how to get your money's worth.
  5. Investing

    5 Money-Saving Shopping Tips

    Reducing the amount you spend is the easiest way to make your money grow.
  6. Markets

    3 Reasons Why U.S. Oil Imports Are Rising (PSX, BP)

    Explore the reasons behind increasing oil imports to the United States, despite production and inventory levels at or near all-time highs.
  7. Investing

    This Once-Hot IPO Is A Value Trap -- Short It Now

    SodaStream International Ltd. (Nasdaq:SODA) is a classic case of a widely anticipated initial public offering that didn't pan out. Since bursting onto the scene in a late-2010 IPO, the carbonated ...
  8. Markets

    How The Auction Market Works

    Here's a look into the online auction market and how to get yourself the best value possible on sites like eBay and Quibids.
  9. Entrepreneurship & Small Business

    3 Reasons To Buy Government Surplus for Your Small Business

    Learn why it's wise to access government surplus auctions to buy furnishings, equipment and other items to start a new business or expand an existing business.
  10. Investing

    The One-Time Expense Warning

    These income statement red flags may not spell a company's downfall. Learn why here.
RELATED FAQS
  1. How much inventory space is available in the United States to store oil?

    Find out how much available storage space there is for crude oil in the United States and why continuing rising supply levels ... Read Answer >>
  2. What is the difference between cost and price?

    Consider how cost affects a product's price. Corporate expenses and the current cost of living both impact the final sticker ... Read Answer >>
  3. What's the difference between the substitution effect and price effect?

    Learn how the increase in an item's price affects consumer demand. Explore the differences between the substitution and price ... Read Answer >>
  4. What are the different types of tangible assets?

    Learn what tangible assets are, what other names they are called, what specific items are included and how they are handled ... Read Answer >>
  5. How do I know whether to itemize deductions or take the standard deduction?

    Taking the standard deduction is the easiest and most common method chosen by filers, but many taxpayers may wind up paying ... Read Answer >>
  6. What items on the balance sheet are most important in fundamental analysis?

    Read about which balance sheet items are considered most important for fundamental analysis, including cash, current liabilities ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center