This is a significant breakthrough, which I have encouraged them to do for some time.
Here is the BEA’s official release (March 25, 2016), which re-defined GDP as follows:
“Real gross domestic product — the value of the goods and services produced by the nation’s economy [GO] less the value of the goods and services used up in production [II], adjusted for price changes — increased at an annual rate of 1.4 percent in the fourth quarter of 2015, according to the “third” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 2.0 percent.”
Thus, the BEA defines GDP as follows:
GDP = GO – II,
GDP = gross domestic product (value of final goods and services)
GO = gross output (total revenues/sales at all stages of production)
II = intermediate inputs (value of supply chain)
I am not sure why the BEA won’t simplify the definition of GDP to define it simply as “the value of final goods and services.” But in any case, it’s a good way to introduce GO.