Non-Operating Assets (also known as "redundant assets") are physical assets owned by the business that are not required for the day-to-day operations.
Non-Operating Assets may still generate income or provide a return on investment. These assets are listed on a company’s Balance Sheet, and may be lumped in with other assets or be broken our separately.
For example, excess cash may be considered as part of non-operating assets because it is money just sitting in the bank and not adding any value to the business on a day-to-day basis.
Other examples of Non-Operating Assets include vacant land, idle equipment, and loans receivable.