Created attachment 4826 
screenshot of xfce4-power-manager setting

chrism@skel:~$ while [ 1 ]; do cat /proc/acpi/button/lid/LID0/state; sleep 1; done
state:      open
state:      open
state:      open
state:      open
state:      closed ### Should suspend here but doesn't ###
state:      closed
state:      closed
state:      closed
state:      closed
state:      closed
state:      open
state:      open
state:      open
state:      open
^C

Laptop is HP Folio Ultrabook core i5.