REC Silicon Annual Report 2019

56 Notes to the consolidated financial statements, REC Silicon Group REC Silicon Annual Report 2019 INVENTORIES Inventories in the statement of financial position 2019 2018 (USD INMILLION) BEFORE WRITEDOWNS WRITEDOWNS AFTER WRITEDOWNS BEFORE WRITEDOWNS WRITEDOWNS AFTER WRITEDOWNS Stock of materials, merchandise, production supplies 4.2 0.0 4.2 4.9 0.0 4.9 Spare parts 42.2 -32.9 9.3 42.5 -19.0 23.5 Work in progress 10.7 -1.1 9.6 12.5 -1.7 10.8 Finished goods 41.6 -17.0 24.6 90.9 -51.0 39.9 Total 98.7 -51.0 47.7 150.8 -71.7 79.1 Inventories have been written down to estimated net realizable values. Write-downs of materials and spare parts represent the estimated obsolescence related to items held in inventories at cost. Write-downs of work in progress and finished goods have been estimated by comparing the net realizable value of anticipated sales to the manufacturing costs of items held in inventory. CASH AND CASH EQUIVALENTS AND RESTRICTED BANK ACCOUNTS Cash and cash equivalents are primarily bank deposits. Restricted bank accounts (not included as cash and cash equivalents) (USD INMILLION) 2019 2018 Restricted bank accounts non-current 0.0 0.0 Restricted bank accounts current 4.4 4.4 Total restricted bank accounts 4.4 4.4 At December 31, 2019 and December 31, 2018, restricted bank accounts consisted of USD 3.8million security for the indemnification loan, USD 0.2million security for bank guarantees for REC Solar AS (a subsidiary of the Company) and restricted cash for the US subsidiaries of USD 0.4million. 14 13