An idle facility is a plant, office, warehouse or other structure and/or land that has been vacated by a company’s operating unit and is in a condition to make it ready for sale or lease. If a facility is partially vacated, it does not qualify for idle facility treatment unless the vacated portion will be separately sold or subleased. In order to treat a facility as idle, business units should first request and obtain the approval of their corporate controller and WA corporate accounting.

This sample policy is designed to help companies account for costs related to idle facilities.