REC Silicon Annual Report 2019

68 Notes to the consolidated financial statements, REC Silicon Group REC Silicon Annual Report 2019 TRADE PAYABLES, PROVISIONS AND OTHER LIABILITIES Non-financial liabilities, interest calculation (USD INMILLION) 2019 2018 Non-current prepayments interest calculation 0.5 4.2 Current portion of prepayments interest calculation 4.1 3.2 Total prepayments, interest calculation 4.6 7.4 Trade payables and other liabilities (USD INMILLION) 2019 2018 Trade and other payables 9.0 17.4 Accrued costs for capex - external 0.0 0.0 VAT and other public taxes and duties payables 30.0 28.6 Accrued operating costs - external 3.6 4.3 Accrued finance costs - external 7.7 7.4 Other non-interest bearing liabilities 1) 6.2 4.4 Trade payables and other liabilities 56.6 62.1 1) Includes payment penalty of USD 5.2 million in relation to outstanding capital contribution from REC Silicon to the Yulin JV (see note 8 and 29). Provisions (USD INMILLION 2019 2018 Provisions, current 0.0 0.0 Provisions, non-current 0.0 0.0 Non-current provision, interest calculation 3.3 3.0 Total provision 3.3 3.0 Specification of provisions (USD INMILLION ASSETRETIREMENT OBLIGATION TOTAL At January 1, 2019 3.0 3.0 Net periodic asset retirement obligation costs including net interest 0.3 0.3 At December 31, 2019 3.3 3.3 Estimated fair values of the Group’s guarantees, indemnification loans and option contract related to the RECWafer bankruptcy are not reported as provisions but included in other line items in the statement of financial position. NON-CURRENT PROVISIONS During 2019 the Company recorded additional provision for ARO’s of USD 0.3million. At December 31, 2019 the Company has recorded USD 3.3million in asset retirement obligations (AROs). These obligations consist of USD 1.5million to restore leased waste water containment ponds to conditions specified in the lease agreement and USD 1.8million for the eventual cleanup of the Company’s manufacturing operations in Moses Lake, Washington and Butte, Montana. The AROs represents the present value of estimated future costs discounted at 8 percent for 2 years for the waste water containment ponds. The restoration of the production sites is discounted between 8 to 11.5 percent and between 26 to 39 years. The restoration of production sites is subject to significant uncertainty due to variability in restoration requirements imposed by regulatory authorities as well as the timing of restoration. 20