ASML International N.V.
Annual Report 2013

Annual￿Report
2013

13

Form 20-F

United￿States
Securities￿and￿Exchange￿Commission
Washington, D.C. 20549
Form￿20-F
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
for the fiscal year ended December 31, 2013
Commission file number 025566
ASML HOLDING N.V.
(Exact￿Name￿of￿Registrant￿as￿Specified￿in￿Its￿Charter)
THE NETHERLANDS
(Jurisdiction￿of￿Incorporation￿or￿Organization)
DE RUN 6501
5504 DR VELDHOVEN
THE NETHERLANDS
(Address￿of￿Principal￿Executive￿Offices)
Craig DeYoung
Telephone: +1 480 696 2762
E-mail: craig.deyoung@asml.com
2650 W Geronimo Place
Chandler, AZ 85224, USA
(Name,￿Telephone,￿E-mail,￿and￿/￿or￿Facsimile￿number￿and￿Address￿of￿Company￿Contact￿Person)
Securities￿registered￿or￿to￿be￿registered￿pursuant￿to￿Section￿12(b)￿of￿the￿Act:

Title of each class
Ordinary￿Shares
(nominal￿value￿EUR￿0.09￿per￿share)

Name of each exchange on which registered
The￿NASDAQ￿Stock￿Market￿LLC

Securities￿registered￿or￿to￿be￿registered￿pursuant￿to￿Section￿12(g)￿of￿the￿Act:
None
(Title￿of￿Class)
Securities￿for￿which￿there￿is￿a￿reporting￿obligation￿pursuant￿to￿Section￿15(d)￿of￿the￿Act:
None
(Title￿of￿Class)
Indicate￿the￿number￿of￿outstanding￿shares￿of￿each￿of￿the￿issuer’s￿classes￿of
capital￿or￿common￿stock￿as￿of￿the￿close￿of￿the￿period￿covered￿by￿the￿annual￿report.
440,852,334 Ordinary Shares
(nominal value EUR 0.09 per share)
Indicate￿by￿check￿mark￿if￿the￿registrant￿is￿a￿well-known￿seasoned￿issuer,￿as￿defined￿in￿Rule￿405￿of￿the￿Securities￿Act.
Yes￿(x)￿No￿(￿)
If￿this￿report￿is￿an￿annual￿or￿transition￿report,￿indicate￿by￿check￿mark￿if￿the￿registrant
is￿not￿required￿to￿file￿reports￿pursuant￿to￿Section￿13￿or￿15(d)￿of￿the￿Securities￿Exchange￿Act￿of￿1934.
Yes￿(￿)￿No￿(x)
Indicate￿by￿check￿mark￿whether￿the￿registrant:￿(1)￿has￿filed￿all￿reports￿required￿to￿be￿filed￿by￿Section￿13￿or￿15(d)￿of￿the
Securities￿Exchange￿Act￿of￿1934￿during￿the￿preceding￿12￿months￿(or￿for￿such￿shorter￿period￿that￿the￿registrant
was￿required￿to￿file￿such￿reports),￿and￿(2)￿has￿been￿subject￿to￿such￿filing￿requirements￿for￿the￿past￿90￿days.
Yes￿(x)￿No￿(￿)
Indicate￿by￿check￿mark￿whether￿the￿registrant￿has￿submitted￿electronically
and￿posted￿on￿its￿corporate￿web￿site,￿if￿any,￿every￿Interactive
Data￿File￿required￿to￿be￿submitted￿and￿posted￿pursuant￿to￿Rule
405￿of￿Regulation￿S-T￿(§232.405￿of￿this￿chapter)￿during￿the
preceding￿12￿months￿(or￿for￿such￿shorter￿period￿that￿the￿registrant￿was￿required￿to￿submit￿and￿post￿such￿files).
Yes￿(x)￿No￿(￿)
Indicate￿by￿check￿mark￿whether￿the￿registrant￿is￿a￿large￿accelerated￿filer,￿an￿accelerated￿filer,￿or￿a￿non-accelerated￿filer.
See￿definition￿of￿"accelerated￿filer￿and￿large￿accelerated￿filer"￿in￿Rule￿12b-2￿of￿the￿Exchange￿Act.￿(Check￿one):
Large￿accelerated￿filer￿(x)￿Accelerated￿filer￿(￿)￿Non-accelerated￿filer￿(￿)
Indicate￿by￿check￿mark￿which￿basis￿of￿accounting￿the￿registrant￿has￿used￿to￿prepare
the￿financial￿statements￿included￿in￿this￿filing:
U.S.￿GAAP￿(x)￿International￿Financial￿Reporting￿Standards￿as￿issued￿by￿the
￿International￿Accounting￿Standards￿Board￿(￿)￿Other￿(￿)
If￿"Other"￿has￿been￿checked￿in￿response￿to￿the￿previous￿question,￿indicate￿by￿checkmark
which￿financial￿statement￿item￿the￿registrant￿has￿elected￿to￿follow.
Item￿17￿(￿)￿Item￿18(￿)
If￿this￿is￿an￿annual￿report,￿indicate￿by￿check￿mark￿whether￿the￿registrant￿is￿a
shell￿company￿(as￿defined￿in￿Rule￿12b-2￿of￿the￿Exchange￿Act)
Yes￿(￿)￿No￿(x)
Name￿and￿address￿of￿person￿authorized￿to￿receive￿notices￿and￿communications
from￿the￿Securities￿and￿Exchange￿Commission:
James A. McDonald
Skadden, Arps, Slate, Meagher & Flom (UK) LLP
40 Bank Street, Canary Wharf London E14 5DS England

ASML￿ANNUAL￿REPORT￿2013

Contents

Part I

1

1

1

13

21

21

36

43

46

46

Item 1 Identity of Directors, Senior Management and Advisors

Item 2 Offer Statistics and Expected Timetable

Item 3 Key Information
A.￿Selected￿Financial￿Data
B.￿Capitalization￿and￿Indebtedness
C.￿Reasons￿for￿the￿Offer￿and￿Use￿of￿Proceeds
D.￿Risk￿Factors

Item 4 Information on the Company
A.￿History￿and￿Development￿of￿the￿Company
B.￿Business￿Overview
C.￿Organizational￿Structure
D.￿Property,￿Plant￿and￿Equipment

Item 4A Unresolved Staff Comments

Item 5 Operating and Financial Review and Prospects  
Executive￿Summary
A.￿Operating￿Results
B.￿Liquidity￿and￿Capital￿Resources
C.￿Research￿and￿Development,￿Patents￿and￿Licenses,￿etc.
D.￿Trend￿Information
E.￿Off-Balance￿Sheet￿Arrangements
F.￿Tabular￿Disclosure￿of￿Contractual￿Obligations
G.￿Safe￿Harbor

Item 6 Directors, Senior Management and Employees
A.￿Directors￿and￿Senior￿Management
B.￿Compensation
C.￿Board￿Practices
D.￿Employees
E.￿Share￿Ownership

Item 7 Major Shareholders and Related Party Transactions
A.￿Major￿Shareholders
B.￿Related￿Party￿Transactions
C.￿Interests￿of￿Experts￿&￿Counsel

Item 8 Financial Information
A.￿Consolidated￿Statements￿and￿Other￿Financial￿Information
B.￿Significant￿Changes

Item 9 The Offer and Listing
A.￿Offer￿and￿Listing￿Details
B.￿Plan￿of￿Distribution
C.￿Markets
D.￿Selling￿Shareholders
E.￿Dilution
F.￿Expenses￿of￿the￿Issue

ASML￿ANNUAL￿REPORT￿2013

47

56

58

Item 10 Additional Information
A.￿Share￿Capital
B.￿Memorandum￿and￿Articles￿of￿Association
C.￿Material￿Contracts
D.￿Exchange￿Controls
E.￿Taxation
F.￿Dividends￿and￿Paying￿Agents
G.￿Statement￿by￿Experts
H.￿Documents￿on￿Display
I.￿Subsidiary￿Information

Item 11 Quantitative and Qualitative Disclosures About Market Risk

Item 12 Description of Securities Other Than Equity Securities

Part II

59

59

59

60

Item 13 Defaults, Dividend Arrearages and Delinquencies

Item 14 Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 15 Controls and Procedures

Item 16   
A.￿Audit￿Committee￿Financial￿Expert
B.￿Code￿of￿Ethics
C.￿Principal￿Accountant￿Fees￿and￿Services
D.￿Exemptions￿from￿the￿Listing￿Standards￿for￿Audit￿Committees
E.￿Purchases￿of￿Equity￿Securities￿by￿the￿Issuer￿and￿Affiliated￿Purchasers
F.￿Change￿in￿Registrant’s￿Certifying￿Accountant
G.￿Corporate￿Governance
H.￿Mine￿Safety￿Disclosure

Part III

63

63

63

Item 17 Financial Statements

Item 18 Financial Statements

Item 19 Exhibits

ASML￿ANNUAL￿REPORT￿2013

ASML￿ANNUAL￿REPORT￿2013

Part I

Special Note Regarding Forward-Looking Statements

In￿addition￿to￿historical￿information,￿this￿Annual￿Report￿contains￿statements￿relating￿to￿our￿future￿business￿and/or
results.￿These￿statements￿include￿certain￿projections￿and￿business￿trends￿that￿are￿"forward-looking"￿within￿the￿meaning
of￿the￿Private￿Securities￿Litigation￿Reform￿Act￿of￿1995.￿You￿can￿generally￿identify￿these￿statements￿by￿the￿use￿of
words￿like￿"may",￿"will",￿"could",￿"should",￿"project",￿"believe",￿"anticipate",￿"expect",￿"plan",￿"estimate",￿"forecast",
"potential",￿"intend",￿"continue"￿and￿variations￿of￿these￿words￿or￿comparable￿words.￿They￿appear￿in￿a￿number￿of￿places
throughout￿this￿report￿and￿include￿statements￿with￿respect￿to￿expected￿financial￿results,￿including￿expected￿sales
levels￿made￿on￿expected￿gross￿margin￿and￿expenses,￿realization￿of￿systems￿backlog,￿expected￿shipment￿of￿tools,
productivity￿of￿our￿tools,￿purchase￿commitments,￿IC￿unit￿demand,￿statements￿about￿our￿CCIP,￿the￿expected￿benefits￿of
the￿Cymer￿acquisition￿and￿the￿development￿of￿EUV￿technology￿and￿the￿number￿of￿EUV￿systems￿expected￿to￿be￿shipped
and￿recognized￿in￿revenue￿and￿the￿timing￿of￿shipments,￿our￿dividend￿policy￿and￿our￿intention￿to￿repurchase￿shares.
These￿statements￿are￿not￿historical￿facts,￿but￿rather￿are￿based￿on￿current￿expectations,￿estimates,￿assumptions￿and
projections￿about￿the￿business￿and￿our￿future￿financial￿results￿and￿readers￿should￿not￿place￿undue￿reliance￿on￿them.

Forward-looking￿statements￿do￿not￿guarantee￿future￿performance￿and￿involve￿risks￿and￿uncertainties.￿Actual￿results
may￿differ￿materially￿from￿projected￿results￿as￿a￿result￿of￿certain￿risks￿and￿uncertainties.￿These￿risks￿and￿uncertainties
include,￿without￿limitation,￿those￿described￿under￿Item￿3.D.￿"Risk￿Factors".￿These￿forward-looking￿statements￿are￿made
only￿as￿of￿the￿date￿of￿this￿Annual￿Report.￿We￿do￿not￿undertake￿to￿update￿or￿revise￿the￿forward-looking￿statements,
whether￿as￿a￿result￿of￿new￿information,￿future￿events￿or￿otherwise.

Item 1 Identity of Directors, Senior Management and Advisors

Not￿applicable.

Item 2 Offer Statistics and Expected Timetable

Not￿applicable.

Item 3 Key Information

A. Selected Financial Data
The￿following￿selected￿consolidated￿financial￿data￿should￿be￿read￿in￿conjunction￿with￿Item￿5￿"Operating￿and￿Financial
Review￿and￿Prospects"￿and￿Item￿18￿"Financial￿Statements".

On￿May￿30,￿2013,￿we￿acquired￿100￿percent￿of￿the￿issued￿share￿capital￿of￿Cymer.￿Comparative￿financial￿information
presented￿in￿our￿Annual￿Report￿does￿not￿include￿Cymer,￿unless￿indicated￿otherwise.

A￿summary￿of￿all￿abbreviations￿and￿technical￿terms￿used￿in￿this￿Annual￿Report￿is￿set￿forth￿on￿pages￿D-1￿through￿D-4.

ASML￿ANNUAL￿REPORT￿2013

1

Five-Year Financial Summary

Year ended December 31
(in thousands, except per share data)

2013
EUR

2012
EUR

2011 1
EUR

2010
EUR

2009
EUR

Consolidated Statements of Operations data
Net￿sales
Cost￿of￿sales

5,245,326
(3,068,064)

4,731,555
(2,726,298)

5,651,035
(3,201,645)

4,507,938
(2,552,768)

1,596,063
(1,137,671)

Gross profit
Other￿income
Research￿and￿development￿costs
Selling,￿general￿and￿administrative￿costs

2,177,262
64,456
(882,029)
(311,741)

2,005,257
-
(589,182)
(259,301)

2,449,390
-
(590,270)
(217,904)

1,955,170
-
(523,426)
(181,045)

458,392
-
(466,761)
(154,756)

Income (loss) from operations
Interest￿and￿other,￿net

1,047,948
(24,471)

1,156,774
(6,196)

1,641,216
7,419

1,250,699
(8,176)

(163,125)
(8,425)

Income (loss) before income taxes
(Provision￿for)￿benefit￿from￿income￿taxes

1,023,477
(7,987)

1,150,578
(4,262)

1,648,635
(181,675)

1,242,523
(220,703)

(171,550)
20,625

Net income (loss)

1,015,490

1,146,316

1,466,960

1,021,820

(150,925)

Earnings per share data
Basic￿net￿income￿(loss)￿per￿ordinary￿share
Diluted￿net￿income￿(loss)￿per￿ordinary￿share2

Number￿of￿ordinary￿shares￿used￿in
computing￿per￿share￿amounts￿(in￿thousands)
Basic
Diluted2

2.36
2.34

2.70
2.68

3.45
3.42

2.35
2.33

(0.35)
(0.35)

429,770
433,446

424,096
426,986

425,618
429,053

435,146
438,974

432,615
432,615

1

2

As￿of￿January￿1,￿2011,￿we￿adopted￿ASU￿2009-13,￿"Sales￿Arrangements￿with￿Multiple￿Deliverables"￿which￿amended￿ASC￿605-25.￿The￿ASU￿was
adopted￿prospectively￿and￿had￿an￿insignificant￿impact￿on￿timing￿and￿allocation￿of￿revenues.￿See￿Note￿1￿to￿the￿Financial￿Statements.
The￿calculation￿of￿diluted￿net￿income￿per￿ordinary￿share￿assumes￿the￿exercise￿of￿options￿issued￿under￿our￿stock￿option￿plans￿and￿the￿issuance￿of
shares￿under￿our￿share￿plans￿for￿periods￿in￿which￿exercises￿or￿issuances￿would￿have￿a￿dilutive￿effect.￿The￿calculation￿of￿diluted￿net￿income￿per
ordinary￿share￿does￿not￿assume￿exercise￿of￿such￿options￿or￿issuance￿of￿shares￿when￿such￿exercises￿or￿issuance￿would￿be￿anti-dilutive.

ASML￿ANNUAL￿REPORT￿2013

2

2013
EUR

2012
EUR

2011 1
EUR

2010
EUR

2009
EUR

Five-Year Financial Summary

As of December 31
(in thousands, unless otherwise indicated)
Consolidated Balance Sheets data
Cash￿and￿cash￿equivalents
Short-term￿investments
Working￿capital2
Total￿assets
Long-term￿debt3
Total￿shareholders’￿equity
Share￿capital

Consolidated Statements of Cash Flows data
Depreciation￿and￿amortization
Impairment
Net￿cash￿provided￿by￿(used￿in)￿operating￿activities
Purchase￿of￿property,￿plant￿and￿equipment4
Purchase￿of￿available￿for￿sale￿securities
Maturity￿of￿available￿for￿sale￿securities
Acquisition￿of￿subsidiary￿(net￿of￿cash￿acquired)
Net￿cash￿provided￿by￿(used￿in)￿investing￿activities
Net￿proceeds￿from￿issuance￿of￿shares
Capital￿repayment
Dividend￿paid
Deposits￿from￿customers
Purchase￿of￿shares
Net￿proceeds￿from￿issuance￿of￿notes
Repurchase￿of￿notes
Net￿cash￿provided￿by￿(used￿in)￿financing￿activities
Net￿increase￿(decrease)￿in￿cash￿and￿cash￿equivalents

2,330,694
679,884
4,156,917
11,513,730
1,074,570
6,922,427
40,092

228,775
13,057
1,054,173
(210,804)
(904,856)
1,195,031
(443,712) 5
(368,341)
31,822
-
(216,085)
-
(300,000)
740,445 8
(368,303) 9
(113,111)
563,098

1,767,596
930,005
3,745,559
7,410,478
759,490
4,066,893
37,470

186,620
3,234
703,478
(171,878)
(1,379,997)
449,992
(10,292)
(1,119,833)
3,907,666 6
(3,728,324) 7
(188,892)
-
(535,373)
-
-
(545,583)
(964,186)

Ratios and other data
Gross￿profit￿as￿a￿percentage￿of￿net￿sales
Income￿(loss)￿from￿operations￿as￿a￿percentage￿of￿net￿sales
Net￿income￿(loss)￿as￿a￿percentage￿of￿net￿sales
Shareholders’￿equity￿as￿a￿percentage￿of￿total￿assets
Income￿taxes￿as￿a￿percentage￿of￿income￿(loss)￿before￿income￿taxes
Sales￿of￿systems￿(in￿units)
ASP￿of￿system￿sales￿(in￿millions)
Value￿of￿systems￿backlog￿excluding￿EUV￿(in￿millions)10,11
Systems￿backlog￿excluding￿EUV￿(in￿units)10,11
ASP￿of￿systems￿backlog￿excluding￿EUV￿(in￿millions)10,11
Value￿of￿booked￿systems￿excluding￿EUV￿(in￿millions)10,11
Net￿bookings￿excluding￿EUV￿(in￿units)10,11
ASP￿of￿booked￿systems￿excluding￿EUV￿(in￿millions)10,11
Number￿of￿payroll￿employees￿(in￿FTEs)
Number￿of￿temporary￿employees￿(in￿FTEs)
Increase￿(decrease)￿net￿sales￿in￿percentage
Number￿of￿ordinary￿shares￿issued￿and￿outstanding￿(in￿thousands)
ASML￿share￿price￿in￿EUR12
Volatility￿260￿days￿in￿percentage￿of￿our￿shares￿listed￿at￿NYSE
Euronext￿Amsterdam13
ASML￿share￿price￿in￿USD14
Volatility￿260￿days￿in￿percentage￿of￿our￿shares￿listed￿at￿NASDAQ15
Dividend￿per￿ordinary￿share￿in￿EUR
Dividend￿per￿ordinary￿share￿in￿USD

41.5
20.0
19.4
60.1
0.8
157
25.4
1,953.3
56
34.9
4,644.0
166
28.0
10,360
2,865
10.9
440,852
68.04
23.98

93.70
24.01

0.61 16
0.00 16,17

42.4
24.4
24.2
54.9
0.4
170
22.4
1,214.1
46
26.4
3,312.3
144
23.0
8,497
2,139
(16.3)
407,165
48.00
28.64

64.39
30.05
0.53
0.73

2,731,782
-
3,473,767
7,260,815
736,368
3,444,154
38,354

165,185
12,272
2,070,440
(300,898)
-
-
-
(300,898)
34,084
-
(172,645)
(150,000)
(700,452)
-
-
(991,561)
781,948

43.3
29.0
26.0
47.4
11.0
222
22.0
1,732.5
71
24.4
2,909.3
134
21.7
7,955
1,935
25.4
413,669
32.48
32.46

41.79
41.83
0.46
0.60

1,949,834
-
2,787,220
6,180,358
710,060
2,773,908
39,293

1,037,074
-
1,704,714
3,764,151
699,756
1,774,768
39,028

151,444
8,563
940,048
(128,728)
-
-
-
(124,903)
31,000
-
(86,960)
150,000
-
-
-
92,702
912,760

43.4
27.7
22.7
44.9
17.8
197
19.8
3,855.7
157
24.6
6,212.7
285
21.8
7,184
2,061
182.4
436,593
28.90
30.25

38.34
35.25
0.40
0.54

141,631
15,896
99,194
(104,959)
-
-
-
(98,082)
11,073
-
(86,486)
-
-
-
-
(74,874)
(72,110)

28.7
(10.2)
(9.5)
47.1
12.0
70
16.8
2,113.7
69
30.6
2,535.4
98
25.9
6,548
1,137
(46.0)
433,639
24.00
38.45

34.09
44.82
0.20
0.27

1

As￿of￿January￿1,￿2011,￿we￿adopted￿ASU￿2009-13,￿"Sales￿Arrangements￿with￿Multiple￿Deliverables"￿which￿amended￿ASC￿605-25.￿The￿ASU￿was
adopted￿prospectively￿and￿had￿an￿insignificant￿impact￿on￿timing￿and￿allocation￿of￿revenues.￿See￿Note￿1￿to￿the￿Financial￿Statements.

2 Working￿capital￿is￿calculated￿as￿the￿difference￿between￿total￿current￿assets￿and￿total￿current￿liabilities.
3
4

Long-term￿debt￿includes￿the￿current￿portion￿of￿long-term￿debt.
An￿amount￿of￿EUR￿115.9￿million￿(2012:￿EUR￿204.8￿million,￿2011:￿EUR￿300.5￿million,￿2010:￿EUR￿214.1￿million,￿2009:￿EUR￿159.0￿million)￿of￿the￿additions
in￿property,￿plant￿and￿equipment￿relates￿to￿non-cash￿transfers￿from￿inventory,￿an￿amount￿of￿EUR￿12.5￿million￿(2012:￿EUR￿9.6￿million,￿2011:￿EUR
17.7￿million,￿2010￿and￿2009:￿EUR￿nil￿million)￿relates￿to￿other￿non-cash￿movements￿(mainly￿investments￿not￿yet￿paid￿and￿inceptions￿of￿finance￿lease
arrangements).￿For￿further￿details￿see￿Note￿12￿to￿the￿Financial￿Statements.
In￿addition￿to￿the￿cash￿paid￿in￿relation￿to￿the￿acquisition￿of￿Cymer,￿we￿issued￿36,464,576￿shares￿for￿an￿amount￿of￿EUR￿2,346.7￿million￿(non-cash
event)￿as￿part￿of￿the￿consideration￿paid.
The￿net￿proceeds￿from￿issuance￿of￿shares￿includes￿an￿amount￿of￿EUR￿3,853.9￿million￿related￿to￿the￿share￿issuances￿in￿connection￿to￿the￿CCIP.
The￿difference￿of￿EUR￿125.6￿million￿between￿the￿capital￿repayment￿of￿EUR￿3,728.3￿million￿and￿the￿net￿proceeds￿from￿issuance￿of￿shares￿of￿EUR
3,853.9￿million￿relates￿to￿the￿capital￿repayment￿on￿ASML's￿treasury￿shares￿which￿was￿also￿part￿of￿the￿Synthetic￿Share￿Buyback￿in￿November￿2012.
Net￿proceeds￿from￿issuance￿of￿notes￿relate￿to￿the￿total￿cash￿proceeds￿of￿EUR￿740.4￿million￿(net￿of￿incurred￿transaction￿costs)￿from￿the￿offering￿of￿our
EUR￿750￿million￿3.375￿percent￿senior￿notes￿due￿2023.
Repurchase￿of￿notes￿relates￿to￿the￿net￿cash￿outflows￿of￿EUR￿368.3￿million￿for￿the￿partial￿repurchase￿of￿our￿EUR￿600￿million￿5.75￿percent￿senior￿notes
due￿2017￿and￿partial￿unwinding￿of￿the￿related￿interest￿rate￿swaps.

5

6
7

8

9

10 Our￿systems￿backlog￿and￿net￿bookings￿include￿only￿orders￿for￿which￿written￿authorizations￿have￿been￿accepted￿and￿system￿shipment￿and￿revenue

recognition￿dates￿within￿the￿following￿12￿months￿have￿been￿assigned.

ASML￿ANNUAL￿REPORT￿2013

3

11 From￿January￿1,￿2011,￿we￿value￿our￿net￿bookings￿and￿systems￿backlog￿at￿system￿sales￿value￿including￿factory￿options.￿Before￿January￿1,￿2011,￿we

valued￿net￿bookings￿and￿systems￿backlog￿at￿full￿order￿value￿(i.e.￿including￿factory￿options,￿field￿options￿and￿services).￿The￿comparative￿figures￿for
prior￿periods￿have￿not￿been￿adjusted￿because￿the￿impact￿on￿the￿comparative￿figures￿is￿insignificant￿(approximately￿EUR￿20.0￿million￿negative￿impact
on￿backlog￿value￿as￿of￿December￿31,￿2010).

12 Closing￿ASML￿share￿price￿on￿NYSE￿Euronext￿Amsterdam￿of￿the￿relevant￿year￿(source:￿Bloomberg￿Finance￿LP).
13 Volatility￿represents￿the￿variability￿in￿our￿share￿price￿on￿NYSE￿Euronext￿Amsterdam￿as￿measured￿over￿the￿260￿business￿days￿of￿each￿year￿presented

(source:￿Bloomberg￿Finance￿LP).

14 Closing￿ASML￿share￿price￿on￿NASDAQ￿of￿the￿relevant￿year￿(source:￿Bloomberg￿Finance￿LP).
15 Volatility￿represents￿the￿variability￿in￿our￿share￿price￿on￿NASDAQ￿as￿measured￿over￿the￿260￿business￿days￿of￿each￿year￿presented￿(source:￿Bloomberg

Finance￿LP).

16 Subject￿to￿approval￿of￿the￿AGM￿to￿be￿held￿on￿April￿23,￿2014.
17 The￿exchange￿rate￿used￿to￿convert￿the￿proposed￿dividend￿per￿ordinary￿share￿is￿the￿exchange￿rate￿at￿February￿5,￿2014.

ASML￿ANNUAL￿REPORT￿2013

4

Exchange Rate Information 
We￿publish￿our￿Financial￿Statements￿in￿euro.￿A￿portion￿of￿our￿net￿sales￿and￿costs￿is,￿and￿historically￿has￿been,
denominated￿in￿currencies￿other￿than￿the￿euro.￿For￿a￿discussion￿of￿the￿impact￿of￿exchange￿rate￿fluctuations￿on￿our
financial￿condition￿and￿results￿of￿operations,￿see￿Item￿5.A.￿"Operating￿Results￿-￿Foreign￿Exchange￿Management".

The￿following￿are￿the￿Noon￿Buying￿Rates￿certified￿by￿the￿Federal￿Reserve￿Bank￿for￿customs￿purposes,￿expressed￿in￿U.S.
dollars￿per￿euro.

Calendar year

2014
(through January 31, 2014)

Period￿End
Period￿Average￿1
Period￿High
Period￿Low

1.35
1.35
1.37
1.35

2013

1.38
1.33
1.38
1.28

2012

1.32
1.29
1.35
1.21

2011

1.30
1.40
1.49
1.29

2010

1.33
1.33
1.45
1.20

1

The￿average￿of￿the￿Noon￿Buying￿Rates￿on￿the￿last￿business￿day￿of￿each￿month￿during￿the￿period￿presented.

Months of

Period￿High
Period￿Low

January
2014

December
2013

November
2013

October
2013

September
2013

1.37
1.35

1.38
1.36

1.36
1.34

1.38
1.35

1.35
1.31

2009

1.43
1.39
1.51
1.25

August
2013

1.34
1.32

B. Capitalization and Indebtedness
Not￿applicable.

C. Reasons for the Offer and Use of Proceeds
Not￿applicable.

D. Risk Factors
In￿conducting￿our￿business,￿we￿face￿many￿risks￿that￿may￿interfere￿with￿our￿business￿objectives.￿Some￿of￿these￿risks
relate￿to￿our￿operational￿processes,￿while￿others￿relate￿to￿our￿business￿environment.￿It￿is￿important￿to￿understand￿the
nature￿of￿these￿risks￿and￿the￿impact￿they￿may￿have￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.￿Some
of￿the￿more￿relevant￿risks￿are￿described￿below.￿These￿risks￿are￿not￿the￿only￿ones￿that￿we￿face.

Risks￿Related￿to￿the￿Semiconductor￿Industry

The Semiconductor Industry is Highly Cyclical and We May Be Adversely Affected by Any Downturn
As￿a￿supplier￿to￿the￿global￿semiconductor￿industry,￿we￿are￿subject￿to￿the￿industry’s￿business￿cycles,￿of￿which￿the￿timing,
duration￿and￿volatility￿are￿difficult￿to￿predict.￿The￿semiconductor￿industry￿has￿historically￿been￿cyclical.￿Sales￿of￿our
lithography￿systems￿depend￿in￿large￿part￿upon￿the￿level￿of￿capital￿expenditures￿by￿semiconductor￿manufacturers.￿These
capital￿expenditures￿depend￿upon￿a￿range￿of￿competitive￿and￿market￿factors,￿including:

• The￿current￿and￿anticipated￿market￿demand￿for￿semiconductors￿and￿for￿products￿utilizing￿semiconductors;
• Semiconductor￿prices;
• Semiconductor￿production￿costs;
• Changes￿in￿semiconductor￿inventory￿levels;
• General￿economic￿conditions;￿and
• Access￿to￿capital.

Reductions￿or￿delays￿in￿capital￿equipment￿purchases￿by￿our￿customers￿could￿have￿a￿material￿adverse￿effect￿on￿our
business,￿financial￿condition￿and￿results￿of￿operations.

ASML￿ANNUAL￿REPORT￿2013

5

In￿an￿industry￿downturn,￿our￿ability￿to￿maintain￿profitability￿will￿depend￿substantially￿on￿whether￿we￿are￿able￿to￿lower
our￿costs￿and￿break-even￿level,￿which￿is￿the￿level￿of￿sales￿that￿we￿must￿reach￿in￿a￿year￿to￿achieve￿positive￿net￿income.
If￿sales￿decrease￿significantly￿as￿a￿result￿of￿an￿industry￿downturn￿and￿we￿are￿unable￿to￿adjust￿our￿costs￿over￿the￿same
period,￿our￿net￿income￿may￿decline￿significantly￿or￿we￿may￿suffer￿losses.￿As￿we￿need￿to￿keep￿certain￿levels￿of￿inventory
on￿hand￿to￿meet￿anticipated￿product￿and￿service￿demand,￿we￿may￿also￿incur￿increased￿costs￿related￿to￿inventory
obsolescence￿in￿an￿industry￿downturn.￿In￿addition,￿industry￿downturns￿generally￿result￿in￿overcapacity,￿resulting￿in
downward￿pressure￿on￿sales￿prices￿and￿impairment￿of￿machinery￿and￿equipment,￿which￿in￿the￿past￿has￿had,￿and￿in￿the
future￿could￿have,￿a￿material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

The￿ongoing￿financial￿crises￿that￿have￿affected￿the￿international￿banking￿system￿and￿global￿financial￿markets￿since
2008￿have￿been￿in￿many￿respects￿unprecedented.￿Concerns￿persist￿over￿the￿debt￿burden￿of￿certain￿Eurozone￿countries
and￿their￿ability￿to￿meet￿future￿obligations,￿the￿overall￿stability￿of￿the￿euro,￿and￿the￿suitability￿of￿the￿euro￿as￿a￿single
currency￿given￿the￿diverse￿economic￿and￿political￿circumstances￿in￿individual￿Eurozone￿countries.￿These￿potential
developments￿or￿market￿perceptions￿concerning￿these￿and￿related￿issues,￿remaining￿concerns￿over￿the￿effect￿of￿this
financial￿crisis￿on￿financial￿institutions￿in￿Europe￿and￿globally,￿and￿the￿instability￿of￿the￿financial￿markets￿and￿the￿global
economy￿in￿general￿could￿result￿in￿a￿number￿of￿follow-on￿effects￿on￿our￿business,￿including￿(i)￿declining￿business￿and
consumer￿confidence￿resulting￿in￿reduced,￿or￿delayed￿purchase￿of￿our￿products￿or￿shorter-term￿capital￿expenditures
for￿our￿products;￿insolvency￿of￿key￿suppliers￿resulting￿in￿product￿delays,￿(ii)￿an￿inability￿of￿customers￿to￿obtain￿credit￿to
finance￿purchases￿of￿our￿products,￿delayed￿payments￿from￿our￿customers￿and/or￿customer￿insolvencies￿and￿(iii)￿other
adverse￿effects￿that￿we￿cannot￿currently￿anticipate.￿If￿global￿economic￿and￿market￿conditions￿deteriorate,￿we￿are￿likely
to￿experience￿material￿adverse￿impacts￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

Conversely,￿in￿anticipation￿of￿periods￿of￿increasing￿demand￿for￿semiconductor￿manufacturing￿equipment,￿we￿must
maintain￿sufficient￿manufacturing￿capacity￿and￿inventory￿and￿we￿must￿attract,￿hire,￿integrate￿and￿retain￿a￿sufficient
number￿of￿qualified￿employees￿to￿meet￿customer￿demand.￿Our￿ability￿to￿predict￿the￿timing￿and￿magnitude￿of￿industry
fluctuations￿is￿limited￿and￿our￿products￿require￿significant￿lead-time￿to￿successfully￿complete.￿Accordingly,￿we￿may￿not
be￿able￿to￿effectively￿increase￿our￿production￿capacity￿to￿respond￿to￿an￿increase￿in￿customer￿demand￿in￿an￿industry
upturn￿resulting￿in￿lost￿sales,￿damage￿to￿customer￿relationships￿and￿we￿may￿lose￿market￿share.

Our Business Will Suffer If We Do Not Respond Rapidly to Commercial and Technological Changes in the
Semiconductor Industry
The￿semiconductor￿manufacturing￿industry￿is￿subject￿to:

• Rapid￿change￿towards￿more￿complex￿technologies;
• Frequent￿new￿product￿introductions￿and￿enhancements;
• Evolving￿industry￿standards;
• Changes￿in￿customer￿requirements;￿and
• Continued￿shortening￿of￿product￿life￿cycles.

Our￿products￿could￿become￿obsolete￿sooner￿than￿anticipated￿because￿of￿a￿faster￿than￿anticipated￿change￿in￿one￿or
more￿of￿the￿technologies￿related￿to￿our￿products￿or￿in￿market￿demand￿for￿products￿based￿on￿a￿particular￿technology.
Our￿success￿in￿developing￿new￿products￿and￿in￿enhancing￿our￿existing￿products￿depends￿on￿a￿variety￿of￿factors,
including￿the￿successful￿management￿of￿our￿R&D￿programs￿and￿the￿timely￿completion￿of￿product￿development￿and
design￿relative￿to￿competitors.￿If￿we￿do￿not￿develop￿and￿introduce￿new￿and￿enhanced￿systems￿at￿competitive￿prices￿and
on￿a￿timely￿basis,￿our￿customers￿will￿not￿integrate￿our￿systems￿into￿the￿planning￿and￿design￿of￿new￿production￿facilities
and￿upgrades￿of￿existing￿facilities,￿which￿would￿have￿a￿material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and
results￿of￿operations.

In￿particular,￿we￿are￿investing￿considerable￿financial￿and￿other￿resources￿to￿develop￿and￿introduce￿new￿products￿and
product￿enhancements,￿such￿as￿EUV,￿Immersion￿and￿holistic￿lithography.￿If￿we￿are￿unable￿to￿successfully￿develop￿and
introduce￿these￿products￿and￿technologies,￿or￿if￿our￿customers￿do￿not￿fully￿adopt￿the￿new￿technologies,￿products￿or
product￿enhancements￿due￿to￿a￿preference￿for￿more￿established￿or￿alternative￿new￿technologies￿and￿products￿or￿for￿any
other￿reason,￿we￿may￿not￿recoup￿all￿of￿our￿investments￿in￿these￿technologies￿or￿products,￿which￿could￿have￿a￿material
adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

ASML￿ANNUAL￿REPORT￿2013

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The￿success￿of￿EUV￿remains￿particularly￿dependent￿on￿light￿source￿availability￿and￿continuing￿related￿technical
advances￿by￿us￿and￿our￿suppliers,￿as￿well￿as￿infrastructure￿developments￿in￿masks￿and￿photoresists,￿without￿which
EUV￿tools￿cannot￿achieve￿the￿productivity￿and￿yield￿required￿to￿economically￿justify￿the￿higher￿price￿of￿these￿tools.￿A
delay￿in￿the￿developments￿of￿these￿tools￿could￿discourage￿or￿result￿in￿much￿slower￿adoption￿of￿this￿technology.￿If￿the
technologies￿that￿we￿pursue￿to￿assist￿our￿customers￿in￿producing￿smaller￿and￿more￿efficient￿chips,￿are￿not￿as￿effective
as￿those￿developed￿by￿our￿competitors,￿or￿if￿our￿customers￿adopt￿new￿technological￿architectures￿that￿are￿less￿focused
on￿lithography,￿this￿may￿adversely￿affect￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

We Face Intense Competition
The￿semiconductor￿equipment￿industry￿is￿highly￿competitive.￿The￿principal￿elements￿of￿competition￿in￿our￿market￿are:

• The￿technical￿performance￿characteristics￿of￿a￿lithography￿system;
• The￿value￿of￿ownership￿of￿that￿system￿based￿on￿its￿purchase￿price,￿maintenance￿costs,￿productivity,￿and￿customer

service￿and￿support￿costs;

• The￿exchange￿rate￿of￿the￿euro￿particularly￿against￿the￿Japanese￿yen￿which￿results￿in￿varying￿prices￿and￿margins;
• The￿strength￿and￿breadth￿of￿our￿portfolio￿of￿patents￿and￿other￿intellectual￿property￿rights;￿and
• Our￿customers’￿desire￿to￿obtain￿lithography￿equipment￿from￿more￿than￿one￿supplier.

Our￿competitiveness￿increasingly￿depends￿upon￿our￿ability￿to￿develop￿new￿and￿enhanced￿semiconductor￿equipment
that￿is￿competitively￿priced￿and￿introduced￿on￿a￿timely￿basis,￿as￿well￿as￿our￿ability￿to￿protect￿and￿defend￿our￿intellectual
property￿rights.￿See￿Item￿4.B.￿"Business￿Overview￿-￿Intellectual￿Property",￿Note￿11￿and￿Note￿19￿to￿the￿Financial
Statements.

We￿compete￿primarily￿with￿Nikon￿and￿to￿a￿lesser￿degree￿with￿Canon.￿Both￿Nikon￿and￿Canon￿have￿substantial￿financial
resources￿and￿broad￿patent￿portfolios.￿Each￿continues￿to￿introduce￿new￿products￿with￿improved￿price￿and￿performance
characteristics￿that￿compete￿directly￿with￿our￿products,￿which￿may￿cause￿a￿decline￿in￿our￿sales￿or￿a￿loss￿of￿market
acceptance￿for￿our￿lithography￿systems.￿In￿addition,￿adverse￿market￿conditions,￿industry￿overcapacity￿or￿a￿decrease￿in
the￿value￿of￿the￿Japanese￿yen￿in￿relation￿to￿the￿euro￿or￿the￿U.S.￿dollar,￿could￿further￿intensify￿price-based￿competition
in￿those￿regions￿that￿account￿for￿the￿majority￿of￿our￿sales,￿resulting￿in￿lower￿prices￿and￿margins￿which￿could￿have￿a
material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

In￿addition￿to￿competitors￿in￿lithography,￿we￿may￿face￿competition￿with￿respect￿to￿alternative￿technologies￿for￿the￿non-
critical￿layers￿or￿for￿all￿layers.￿If￿we￿fail￿to￿keep￿pace￿with￿Moore's￿law,￿which￿postulates￿that￿the￿number￿of￿transistors
on￿a￿chip￿doubles￿approximately￿every￿18￿to￿24￿months￿at￿equivalent￿marginal￿costs,￿or￿in￿the￿event￿the￿delivery￿of￿new
technology￿is￿delayed,￿our￿customers￿may￿opt￿for￿other￿solutions￿in￿IC￿manufacturing￿as￿a￿substitute￿for￿purchasing￿our
products.

Also,￿in￿the￿future￿the￿IC￿industry￿may￿not￿find￿it￿economically￿feasible￿to￿maintain￿the￿pace￿of￿Moore’s￿law￿through
the￿use￿of￿lithography￿systems,￿￿which￿could￿result￿in￿our￿customers￿choosing￿other￿solutions￿than￿lithography￿for
IC￿manufacturing.￿If￿the￿pace￿of￿Moore’s￿law￿is￿not￿maintained,￿this￿could￿also￿result￿in￿the￿IC￿industry￿utilizing￿fewer
leading￿technology￿systems,￿which￿could￿result￿in￿lower￿sales￿and￿margins.

Risks￿Related￿to￿ASML

The Number of Systems We Can Produce Is Limited by Our Dependence on a Limited Number of Suppliers of Key
Components
We￿rely￿on￿outside￿vendors￿for￿the￿components￿and￿subassemblies￿used￿in￿our￿systems,￿each￿of￿which￿is￿obtained￿from
a￿single￿supplier￿or￿a￿limited￿number￿of￿suppliers.￿Our￿reliance￿on￿a￿limited￿group￿of￿suppliers￿involves￿several￿risks,
including￿a￿potential￿inability￿to￿obtain￿an￿adequate￿supply￿of￿required￿components￿and￿the￿risk￿of￿untimely￿delivery￿of
these￿components￿and￿subassemblies.

The￿number￿of￿lithography￿systems￿we￿are￿able￿to￿produce￿may￿be￿limited￿by￿the￿production￿capacity￿of￿Zeiss.￿Zeiss
is￿our￿single￿supplier￿of￿lenses,￿collectors￿and￿other￿critical￿optical￿components.￿If￿Zeiss￿were￿unable￿to￿maintain￿and
increase￿production￿levels￿or￿if￿we￿are￿unable￿to￿maintain￿our￿business￿relationship￿with￿Zeiss￿in￿the￿future￿we￿could￿be
unable￿to￿fulfill￿orders,￿which￿could￿damage￿relationships￿with￿current￿and￿prospective￿customers￿and￿have￿a￿material
adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.￿If￿Zeiss￿were￿to￿terminate￿its￿relationship
with￿us￿or￿if￿Zeiss￿were￿unable￿to￿maintain￿production￿of￿lenses￿over￿a￿prolonged￿period,￿we￿would￿effectively￿cease
to￿be￿able￿to￿conduct￿our￿business.￿See￿Item￿4.B.￿"Business￿Overview￿-￿Manufacturing,￿Logistics￿and￿Suppliers".￿In
addition￿to￿Zeiss’￿current￿position,￿the￿CO2￿lasers￿used￿in￿our￿third-generation￿(NXE:3300B)￿EUV￿systems￿are￿available
from￿only￿a￿limited￿number￿of￿suppliers.

ASML￿ANNUAL￿REPORT￿2013

7

Manufacturing￿some￿of￿these￿components￿and￿subassemblies￿that￿we￿use￿in￿our￿manufacturing￿processes￿is￿an
extremely￿complex￿process￿and￿could￿result￿in￿delays￿by￿our￿suppliers.￿A￿prolonged￿inability￿to￿obtain￿adequate
deliveries￿of￿components￿or￿subassemblies,￿or￿any￿other￿circumstance￿that￿requires￿us￿to￿seek￿alternative￿sources￿of
supply,￿could￿significantly￿hinder￿our￿ability￿to￿deliver￿our￿products￿in￿a￿timely￿manner,￿which￿could￿damage￿relationships
with￿current￿and￿prospective￿customers￿and￿have￿a￿material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and
results￿of￿operations.

A High Percentage of Net Sales Is Derived from a Few Customers
Historically,￿we￿have￿sold￿a￿substantial￿number￿of￿lithography￿systems￿to￿a￿limited￿number￿of￿customers.￿We￿expect
customer￿concentration￿to￿increase￿because￿of￿continuing￿consolidation￿in￿the￿semiconductor￿manufacturing￿industry.
Consequently,￿while￿the￿identity￿of￿our￿largest￿customers￿may￿vary￿from￿year￿to￿year,￿we￿expect￿sales￿to￿remain
concentrated￿among￿relatively￿few￿customers￿in￿any￿particular￿year.￿In￿2013,￿recognized￿sales￿to￿our￿largest￿customer
accounted￿for￿EUR￿2,058.6￿million,￿or￿39.2￿percent￿of￿net￿sales,￿compared￿with￿EUR￿1,236.1￿million,￿or￿26.1￿percent￿of
net￿sales,￿in￿2012.￿The￿loss￿of￿any￿significant￿customer￿or￿any￿significant￿reduction￿in￿orders￿by￿a￿significant￿customer
may￿have￿a￿material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

Additionally,￿as￿a￿result￿of￿our￿limited￿number￿of￿customers,￿credit￿risk￿on￿our￿receivables￿is￿concentrated.￿Our￿three
largest￿customers￿(based￿on￿net￿sales)￿accounted￿for￿EUR￿861.4￿million,￿or￿73.3￿percent￿of￿accounts￿receivable￿and
finance￿receivables￿at￿December￿31,￿2013,￿compared￿with￿EUR￿535.1￿million,￿or￿58.9￿percent￿at￿December￿31,￿2012.
As￿a￿result,￿business￿failure￿or￿insolvency￿of￿one￿of￿our￿main￿customers￿may￿have￿a￿material￿adverse￿effect￿on￿our
business,￿financial￿condition￿and￿results￿of￿operations.

We Derive Most of Our Revenues from the Sale of a Relatively Small Number of Systems
We￿derive￿most￿of￿our￿revenues￿from￿the￿sale￿of￿a￿relatively￿small￿number￿of￿lithography￿equipment￿systems￿(157￿units￿in
2013￿and￿170￿units￿in￿2012),￿with￿an￿ASP￿per￿system￿in￿2013￿of￿EUR￿25.4￿million￿(EUR￿27.4￿million￿for￿new￿systems￿and
EUR￿6.9￿million￿for￿used￿systems)￿and￿an￿ASP￿per￿system￿in￿2012￿of￿EUR￿22.4￿million￿(EUR￿24.8￿million￿for￿new￿systems
and￿EUR￿7.6￿million￿for￿used￿systems).￿As￿a￿result,￿the￿timing￿of￿recognition￿of￿revenue￿for￿a￿particular￿reporting￿period
from￿a￿small￿number￿of￿system￿sales￿may￿have￿a￿material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results
of￿operations￿in￿that￿period.￿Specifically,￿the￿failure￿to￿receive￿anticipated￿orders,￿or￿delays￿in￿shipments￿near￿the￿end￿of
a￿particular￿reporting￿period,￿due,￿for￿example,￿to:

• A￿downturn￿in￿the￿highly￿cyclical￿semiconductor￿industry;
• Unanticipated￿shipment￿rescheduling;
• Cancellation￿or￿order￿push-back￿by￿customers;
• Unexpected￿manufacturing￿difficulties;￿or
• Delays￿in￿deliveries￿by￿suppliers

may￿cause￿net￿sales￿in￿a￿particular￿reporting￿period￿to￿fall￿significantly￿below￿net￿sales￿in￿previous￿periods￿or￿below￿our
expected￿net￿sales,￿and￿may￿have￿a￿material￿adverse￿effect￿on￿our￿results￿of￿operations￿for￿that￿period.￿In￿particular,￿our
published￿quarterly￿earnings￿may￿vary￿significantly￿from￿quarter￿to￿quarter￿and￿may￿vary￿in￿the￿future￿for￿the￿reasons
discussed￿above.

The Pace of Introduction of Our New Products Is Accelerating and Is Accompanied by Potential Design and
Production Delays and by Significant Costs
The￿development￿and￿initial￿production,￿installation￿and￿enhancement￿of￿the￿systems￿we￿produce￿is￿often￿accompanied
by￿design￿and￿production￿delays￿and￿related￿costs￿of￿a￿nature￿typically￿associated￿with￿the￿introduction￿and￿transition
to￿full-scale￿manufacturing￿of￿complex￿capital￿equipment.￿While￿we￿expect￿and￿plan￿for￿a￿corresponding￿learning-curve
effect￿in￿our￿product￿development￿cycle,￿we￿cannot￿predict￿with￿precision￿the￿time￿and￿expense￿required￿to￿overcome
these￿initial￿problems￿and￿to￿ensure￿full￿performance￿to￿specifications.￿Moreover,￿we￿anticipate￿that￿this￿learning-curve
effect￿will￿continue￿to￿present￿increasingly￿difficult￿challenges￿with￿each￿new￿generation￿of￿our￿products￿as￿a￿result￿of
increasing￿technological￿complexity.￿In￿particular,￿the￿development￿of￿an￿EUV￿volume￿production￿system￿is￿dependent
on,￿and￿subject￿to￿the￿successful￿implementation￿of,￿technology￿related￿to￿the￿light￿source￿and￿other￿technologies
specific￿to￿EUV.￿There￿is￿a￿risk￿that￿we￿may￿not￿be￿able￿to￿introduce￿or￿bring￿to￿full-scale￿production￿new￿products￿as
quickly￿as￿we￿anticipate￿in￿our￿product￿introduction￿plans,￿which￿could￿have￿a￿material￿adverse￿effect￿on￿our￿business,
financial￿condition￿and￿results￿of￿operations.

For￿the￿market￿to￿accept￿technology￿enhancements,￿our￿customers,￿in￿many￿cases,￿must￿upgrade￿their￿existing
technology￿capabilities.￿Such￿upgrades￿from￿established￿technology￿may￿not￿be￿available￿to￿our￿customers￿to￿enable
volume￿production￿using￿our￿new￿technology￿enhancements.￿This￿could￿result￿in￿our￿customers￿not￿purchasing,￿or
pushing￿back￿or￿canceling￿orders￿for￿our￿technology￿enhancements,￿which￿could￿negatively￿impact￿our￿business,
financial￿condition￿and￿results￿of￿operations.

ASML￿ANNUAL￿REPORT￿2013

8

As Lithography Technologies become More Complex, our R&D Programs become More Risky and More Expensive
Our￿lithography￿systems￿have￿become￿increasingly￿complex,￿and￿accordingly,￿the￿costs￿to￿develop￿new￿products￿and
technologies￿have￿increased,￿and￿we￿expect￿such￿costs￿to￿continue￿to￿increase.￿This￿increase￿in￿costs￿requires￿us￿to
continue￿obtaining￿sufficient￿funding￿for￿our￿R&D￿programs.￿For￿example,￿we￿obtained￿funding￿for￿our￿450mm￿and￿EUV
R&D￿programs￿through￿the￿CCIP.￿We￿may￿however,￿be￿unable￿to￿obtain￿this￿type￿of￿funding￿from￿customers￿in￿the￿future,
in￿which￿case￿we￿may￿be￿unable￿to￿fund￿R&D￿investments￿necessary￿to￿maintain￿our￿technological￿leadership.￿The
increasing￿cost￿of￿R&D￿programs￿for￿new￿technologies￿also￿increases￿the￿risk￿that￿a￿new￿product￿or￿technology￿may￿not
be￿successful,￿which￿could￿result￿in￿significant￿costs￿not￿being￿recovered.

Furthermore,￿as￿the￿innovation￿cycle￿becomes￿more￿complex,￿developing￿new￿technology￿requires￿increased￿R&D
investments￿by￿our￿suppliers￿in￿order￿to￿meet￿the￿technology￿demands￿of￿us￿and￿our￿customers.￿Our￿suppliers￿may￿not
have,￿or￿may￿not￿be￿willing￿to￿invest,￿the￿resources￿necessary￿to￿continue￿the￿development￿of￿the￿new￿technologies￿to
the￿extent￿such￿investments￿are￿necessary,￿which￿may￿result￿in￿our￿contributing￿funds￿to￿such￿R&D￿programs￿or￿limiting
the￿R&D￿programs￿we￿undertake.

Failure to Adequately Protect the Intellectual Property Rights Upon Which We Depend Could Harm Our Business
We￿rely￿on￿intellectual￿property￿rights￿such￿as￿patents,￿copyrights￿and￿trade￿secrets￿to￿protect￿our￿proprietary
technology.￿However,￿we￿face￿the￿risk￿that￿such￿measures￿could￿prove￿to￿be￿inadequate￿because:

•

Intellectual￿property￿laws￿may￿not￿sufficiently￿support￿our￿proprietary￿rights￿or￿may￿change￿in￿the￿future￿in￿a￿manner
adverse￿to￿us;

• Patent￿rights￿may￿not￿be￿granted￿or￿construed￿as￿we￿expect;
• Patents￿will￿expire￿which￿may￿result￿in￿key￿technology￿becoming￿widely￿available￿that￿may￿hurt￿our￿competitive

position;

• The￿steps￿we￿take￿to￿prevent￿misappropriation￿or￿infringement￿of￿our￿proprietary￿rights￿may￿not￿be￿successful;￿and
• Third￿parties￿may￿be￿able￿to￿develop￿or￿obtain￿patents￿for￿similar￿competing￿technology.

In￿addition,￿litigation￿may￿be￿necessary￿to￿enforce￿our￿intellectual￿property￿rights,￿to￿determine￿the￿validity￿and￿scope￿of
the￿proprietary￿rights￿of￿others,￿or￿to￿defend￿against￿claims￿of￿infringement.￿Any￿such￿litigation￿may￿result￿in￿substantial
costs￿and￿diversion￿of￿management￿resources,￿and,￿if￿decided￿unfavorably￿to￿us,￿could￿have￿a￿material￿adverse￿effect
on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

Defending Against Intellectual Property Claims Brought by Others Could Harm Our Business
In￿the￿course￿of￿our￿business,￿we￿are￿subject￿to￿claims￿by￿third￿parties￿alleging￿that￿our￿products￿or￿processes
infringe￿upon￿their￿intellectual￿property￿rights.￿If￿successful,￿such￿claims￿could￿limit￿or￿prohibit￿us￿from￿developing￿our
technology￿and￿manufacturing￿our￿products,￿which￿could￿have￿a￿material￿adverse￿effect￿on￿our￿business,￿financial
condition￿and￿results￿of￿operations.

In￿addition,￿our￿customers￿may￿be￿subject￿to￿claims￿of￿infringement￿from￿third￿parties,￿alleging￿that￿our￿products￿used
by￿such￿customers￿in￿the￿manufacture￿of￿semiconductor￿products￿and/or￿the￿processes￿relating￿to￿the￿use￿of￿our
products￿infringe￿one￿or￿more￿patents￿issued￿to￿such￿parties.￿If￿such￿claims￿were￿successful,￿we￿could￿be￿required
to￿indemnify￿customers￿for￿some￿or￿all￿of￿any￿losses￿incurred￿or￿damages￿assessed￿against￿them￿as￿a￿result￿of￿such
infringement,￿which￿could￿have￿a￿material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

We￿also￿may￿incur￿substantial￿licensing￿or￿settlement￿costs,￿which￿although￿potentially￿strengthening￿or￿expanding￿our
intellectual￿property￿rights￿or￿limiting￿our￿exposure￿to￿intellectual￿property￿claims￿of￿third￿parties,￿may￿have￿a￿material
adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

From￿late￿2001￿through￿2004,￿ASML￿was￿party￿to￿a￿series￿of￿civil￿litigations￿and￿administrative￿proceedings￿in￿which
Nikon￿alleged￿ASML’s￿infringement￿of￿Nikon￿patents￿relating￿to￿lithography.￿ASML￿in￿turn￿filed￿claims￿against￿Nikon.
Pursuant￿to￿agreements￿executed￿on￿December￿10,￿2004,￿ASML￿and￿Nikon￿agreed￿to￿settle￿all￿pending￿worldwide
patent￿litigation￿between￿the￿companies.￿The￿settlement￿included￿an￿exchange￿of￿releases,￿a￿patent￿Cross-License
agreement￿related￿to￿lithography￿equipment￿used￿to￿manufacture￿semiconductor￿devices￿and￿payments￿to￿Nikon￿by
ASML.￿Beginning￿on￿January￿1,￿2015,￿the￿parties￿may￿bring￿suit￿for￿infringement￿of￿patents￿subject￿to￿the￿Nikon￿Cross-
License￿Agreement,￿including￿any￿infringement￿that￿occurred￿during￿the￿Cross-License￿Transition￿Period.￿Damages
resulting￿from￿claims￿for￿patent￿infringement￿occurring￿during￿the￿Cross-License￿Transition￿Period￿are￿limited￿to￿three
percent￿of￿the￿net￿sales￿price￿of￿products￿found￿to￿infringe￿valid￿and￿enforceable￿patents.

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We Are Subject to Risks in Our International Operations
The￿majority￿of￿our￿sales￿are￿made￿to￿customers￿outside￿Europe.￿There￿are￿a￿number￿of￿risks￿inherent￿in￿doing￿business
in￿some￿of￿those￿regions:

• Potentially￿adverse￿tax￿consequences;
• Unfavorable￿political￿or￿economic￿environments;
• Unexpected￿legal￿or￿regulatory￿changes;
• An￿inability￿to￿effectively￿protect￿intellectual￿property;￿and
• Adverse￿effects￿of￿foreign￿currency￿fluctuations.

If￿we￿are￿unable￿to￿manage￿successfully￿the￿risks￿inherent￿in￿our￿international￿activities,￿our￿business,￿financial￿condition
and￿results￿of￿operations￿could￿be￿materially￿and￿adversely￿affected.

In￿particular,￿42.4￿percent￿of￿our￿2013￿net￿sales￿and￿31.3￿percent￿of￿our￿2012￿net￿sales￿were￿derived￿from￿customers
in￿Taiwan.￿Taiwan￿has￿a￿unique￿international￿political￿status.￿The￿People’s￿Republic￿of￿China￿asserts￿sovereignty￿over
Taiwan￿and￿does￿not￿recognize￿the￿legitimacy￿of￿the￿Taiwanese￿government.￿Changes￿in￿relations￿between￿Taiwan￿and
the￿People’s￿Republic￿of￿China,￿Taiwanese￿government￿policies￿and￿other￿factors￿affecting￿Taiwan’s￿political,￿economic
or￿social￿environment￿could￿have￿a￿material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

In￿addition,￿the￿installation￿and￿servicing￿of￿our￿products￿requires￿us￿to￿travel￿to￿our￿customers￿premises.￿Natural
disasters￿could￿affect￿our￿ability￿to￿do￿so.￿For￿example,￿the￿Japanese￿earthquake￿in￿2011￿resulted￿in￿the￿disruption￿of
our￿installation￿and￿servicing￿of￿systems￿for￿our￿customers￿in￿Japan.￿Natural￿disasters￿in￿areas￿where￿our￿customers￿are
located￿could￿prevent￿or￿disrupt￿the￿installation￿or￿servicing￿of￿our￿systems.

We Are Dependent on the Continued Operation of a Limited Number of Manufacturing Facilities
All￿of￿our￿manufacturing￿activities,￿including￿subassembly,￿final￿assembly￿and￿system￿testing,￿take￿place￿in￿clean
room￿facilities￿in￿Veldhoven,￿the￿Netherlands,￿in￿Wilton,￿Connecticut￿and￿in￿San￿Diego,￿California,￿both￿in￿the￿United
States,￿in￿Pyongtaek-City,￿South-Korea￿and￿in￿Linkou,￿Taiwan.￿These￿facilities￿may￿be￿subject￿to￿disruption￿for￿a￿variety
of￿reasons,￿including￿work￿stoppages,￿fire,￿energy￿shortages,￿flooding￿or￿other￿natural￿disasters.￿We￿cannot￿ensure
that￿alternative￿production￿capacity￿would￿be￿available￿if￿a￿major￿disruption￿were￿to￿occur￿or￿that,￿if￿such￿capacity
was￿available,￿it￿could￿be￿obtained￿on￿favorable￿terms.￿Such￿a￿disruption￿could￿have￿a￿material￿adverse￿effect￿on￿our
business,￿financial￿condition￿and￿results￿of￿operations.￿In￿addition,￿some￿of￿our￿key￿suppliers,￿including￿Zeiss,￿have￿a
limited￿number￿of￿manufacturing￿facilities,￿the￿disruption￿of￿which￿may￿significantly￿and￿adversely￿affect￿our￿production
capacity.

Because of Labor Laws and Practices, Any Workforce Reductions That We May Seek to Implement in Order to
Reduce Costs Company-Wide May Be Delayed or Suspended
The￿semiconductor￿market￿is￿highly￿cyclical￿and￿as￿a￿consequence￿we￿may￿need￿to￿implement￿workforce￿reductions￿in
case￿of￿a￿downturn,￿in￿order￿to￿adapt￿to￿such￿market￿changes.￿In￿accordance￿with￿labor￿laws￿and￿practices￿applicable
in￿the￿jurisdictions￿in￿which￿we￿operate,￿a￿reduction￿of￿any￿significance￿may￿be￿subject￿to￿formal￿procedures￿that￿can
delay￿or￿may￿result￿in￿the￿modification￿of￿our￿planned￿workforce￿reductions.￿For￿example,￿ASML￿Netherlands￿B.V.,￿our
operating￿subsidiary￿in￿the￿Netherlands,￿has￿a￿Works￿Council,￿as￿required￿by￿Dutch￿law.￿If￿the￿Works￿Council￿renders
contrary￿advice￿in￿connection￿with￿a￿proposed￿workforce￿reduction￿in￿the￿Netherlands,￿but￿we￿nonetheless￿determine
to￿proceed,￿we￿must￿temporarily￿suspend￿any￿action￿while￿the￿Works￿Council￿determines￿whether￿to￿appeal￿to￿the
Enterprise￿Chamber￿of￿the￿Amsterdam￿Court￿of￿Appeal.￿This￿appeal￿process￿can￿cause￿a￿delay￿of￿several￿months￿and
may￿require￿us￿to￿address￿any￿procedural￿inadequacies￿identified￿by￿the￿Court￿in￿the￿way￿we￿reached￿our￿decision.￿Such
delays￿could￿impair￿our￿ability￿to￿reduce￿costs￿company-wide￿to￿levels￿comparable￿to￿those￿of￿our￿competitors.￿Also￿see
Item￿6.D￿"Employees".

Fluctuations in Foreign Exchange Rates Could Harm Our Results of Operations
We￿are￿exposed￿to￿currency￿risks.￿We￿are￿particularly￿exposed￿to￿fluctuations￿in￿the￿exchange￿rates￿between￿the￿U.S.
dollar,￿Japanese￿yen￿and￿the￿euro,￿as￿we￿incur￿manufacturing￿costs￿for￿our￿systems￿predominantly￿in￿euros￿while
portions￿of￿our￿net￿sales￿and￿cost￿of￿sales￿are￿denominated￿in￿U.S.￿dollars￿and￿Japanese￿yen.

In￿addition,￿a￿portion￿of￿our￿assets￿and￿liabilities￿and￿operating￿results￿are￿denominated￿in￿U.S.￿dollars,￿and￿a￿small
portion￿of￿our￿assets,￿liabilities￿and￿operating￿results￿are￿denominated￿in￿currencies￿other￿than￿the￿euro￿and￿the￿U.S.
dollar.￿Our￿Financial￿Statements￿are￿expressed￿in￿euros.￿Accordingly,￿our￿results￿of￿operations￿and￿assets￿and￿liabilities
are￿exposed￿to￿fluctuations￿in￿exchange￿rates￿between￿the￿euro￿and￿such￿other￿currencies.￿In￿general,￿our￿customers
generally￿run￿their￿businesses￿in￿U.S.￿dollars￿and￿therefore￿a￿weakening￿of￿the￿U.S.￿dollar￿against￿the￿euro￿might￿impact
the￿ability￿or￿desire￿of￿our￿customers￿to￿purchase￿our￿products.

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Furthermore,￿a￿strengthening￿of￿the￿euro￿particularly￿against￿the￿Japanese￿yen￿could￿further￿intensify￿price-based
competition￿in￿those￿regions￿that￿account￿for￿the￿majority￿of￿our￿sales,￿resulting￿in￿lower￿prices￿and￿margins￿and￿a
material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

Changes￿in￿currency￿exchange￿rates￿also￿affect￿the￿carrying￿value￿of￿assets￿on￿our￿Consolidated￿Balance￿Sheets,￿which
depending￿on￿the￿balance￿sheet￿classification￿of￿the￿relevant￿asset,￿can￿result￿in￿losses￿on￿our￿Consolidated￿Balance
Sheets.￿In￿particular,￿the￿Cymer￿acquisition￿has￿significantly￿increased￿our￿U.S.￿dollar￿denominated￿assets,￿and￿as￿a
result,￿we￿are￿more￿exposed￿to￿fluctuations￿in￿the￿U.S.￿dollar.

See￿Item￿5.A.￿"Operating￿Results￿-￿Foreign￿Exchange￿Management".

We May Be Unable to Make Desirable Acquisitions or to Integrate Successfully Any Businesses We Acquire 
Our￿future￿success￿may￿depend￿in￿part￿on￿the￿acquisition￿of￿businesses￿or￿technologies￿intended￿to￿complement,
enhance￿or￿expand￿our￿current￿business￿or￿products￿or￿that￿might￿otherwise￿offer￿us￿growth￿opportunities.￿Our￿ability
to￿complete￿such￿transactions￿may￿be￿hindered￿by￿a￿number￿of￿factors,￿including￿potential￿difficulties￿in￿obtaining
government￿approvals.

Any￿acquisition￿that￿we￿do￿make￿would￿pose￿risks￿related￿to￿the￿integration￿of￿the￿new￿business￿or￿technology￿with￿our
business.￿We￿cannot￿be￿certain￿that￿we￿will￿be￿able￿to￿achieve￿the￿benefits￿we￿expect￿from￿a￿particular￿acquisition￿or
investment.￿Acquisitions￿may￿also￿strain￿our￿managerial￿and￿operational￿resources,￿as￿the￿challenge￿of￿managing￿new
operations￿may￿divert￿our￿management￿from￿day-to-day￿operations￿of￿our￿existing￿business.￿Our￿business,￿financial
condition￿and￿results￿of￿operations￿may￿be￿materially￿and￿adversely￿affected￿if￿we￿fail￿to￿coordinate￿our￿resources
effectively￿to￿manage￿both￿our￿existing￿operations￿and￿any￿businesses￿we￿acquire.

In￿May￿2013,￿we￿acquired￿all￿of￿the￿outstanding￿shares￿of￿Cymer,￿a￿light￿source￿supplier.￿We￿expect￿that￿the￿acquisition
of￿Cymer￿will￿make￿EUV￿technology￿more￿efficient,￿prevent￿additional￿delays￿in￿the￿introduction￿of￿EUV￿technology,￿and
simplify￿the￿supply￿chain￿of￿EUV￿modules.￿However,￿achieving￿the￿benefits￿of￿the￿acquisition￿will￿depend￿in￿part￿on￿the
integration￿of￿our￿operations￿and￿employees￿with￿those￿of￿Cymer￿in￿a￿timely￿and￿efficient￿manner,￿and￿if￿we￿fail￿to￿do
so,￿this￿may￿result￿in￿a￿delay￿in￿the￿development￿of￿EUV.￿There￿can￿be￿no￿assurance￿that￿Cymer￿will￿be￿successfully
integrated￿in￿our￿business￿or￿that￿any￿of￿the￿anticipated￿benefits￿will￿be￿realized.￿Even￿if￿we￿are￿able￿to￿successfully
integrate￿Cymer,￿there￿is￿no￿assurance￿that￿this￿transaction￿will￿result￿in￿successful￿development￿of￿our￿EUV￿technology.

In￿addition,￿in￿connection￿with￿acquisitions,￿anti-trust￿regulators￿may￿impose￿conditions￿on￿us,￿including￿requirements
to￿divest￿assets￿or￿other￿conditions￿that￿could￿make￿it￿difficult￿for￿us￿to￿integrate￿the￿businesses￿that￿we￿acquire.￿For
example,￿in￿connection￿with￿the￿Cymer￿Acquisition￿we￿have￿agreed￿to￿maintain￿Cymer￿Light￿Sources￿as￿a￿stand-alone
business￿which￿will￿make￿it￿more￿difficult￿to￿integrate￿Cymer￿Light￿Sources￿into￿our￿business￿operations.

Our Business and Future Success Depend on Our Ability to Attract and Retain a Sufficient Number of Adequately
Educated and Skilled Employees
Our￿business￿and￿future￿success￿significantly￿depend￿upon￿our￿employees,￿including￿a￿large￿number￿of￿highly￿qualified
professionals,￿as￿well￿as￿our￿ability￿to￿attract￿and￿retain￿employees.￿Competition￿for￿such￿personnel￿is￿intense,￿and￿we
may￿not￿be￿able￿to￿continue￿to￿attract￿and￿retain￿such￿personnel.￿The￿R&D￿programs￿associated￿with￿the￿commitments
made￿under￿the￿NRE￿funding￿arrangements￿signed￿in￿relation￿to￿the￿CCIP,￿require￿a￿significant￿number￿of￿qualified
employees.￿If￿we￿are￿unable￿to￿attract￿sufficient￿numbers￿of￿qualified￿employees,￿this￿could￿affect￿our￿ability￿to￿conduct
our￿research￿programs￿on￿a￿timely￿basis,￿which￿could￿adversely￿affect￿our￿business,￿financial￿condition￿and￿results￿of
operations.

In￿addition,￿the￿increasing￿complexity￿of￿our￿products￿results￿in￿a￿longer￿learning-curve￿for￿new￿and￿existing￿employees
and￿suppliers￿leading￿to￿an￿inability￿to￿decrease￿cycle￿times￿and￿may￿result￿in￿the￿incurrence￿of￿significant￿additional
costs,￿which￿could￿adversely￿affect￿our￿business,￿financial￿condition￿and￿results￿of￿operations.

See￿Item￿4.B.￿"Business￿Overview￿-￿Customer￿Co-Investment￿Program".

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Risks￿Related￿to￿Our￿Ordinary￿Shares

We May Not Declare Cash Dividends at All or in Any Particular Amounts in Any Given Year
We￿aim￿to￿pay￿an￿annual￿dividend￿that￿will￿be￿stable￿or￿growing￿over￿time.￿Annually,￿the￿Board￿of￿Management￿will,
upon￿prior￿approval￿from￿the￿Supervisory￿Board,￿submit￿a￿proposal￿to￿the￿AGM￿with￿respect￿to￿the￿amount￿of￿dividend
to￿be￿declared￿with￿respect￿to￿the￿prior￿year.￿The￿dividend￿proposal￿in￿any￿given￿year￿will￿be￿subject￿to￿the￿availability
of￿distributable￿profits￿or￿retained￿earnings￿and￿may￿be￿affected￿by,￿among￿other￿factors,￿the￿Board￿of￿Management’s
views￿on￿our￿potential￿future￿liquidity￿requirements,￿including￿for￿investments￿in￿production￿capacity,￿the￿funding￿of￿our
R&D￿programs￿and￿for￿acquisition￿opportunities￿that￿may￿arise￿from￿time￿to￿time;￿and￿by￿future￿changes￿in￿applicable
income￿tax￿and￿corporate￿laws.￿Accordingly,￿the￿Board￿of￿Management￿may￿decide￿to￿propose￿not￿to￿pay￿a￿dividend￿or
pay￿a￿lower￿dividend￿with￿respect￿to￿any￿particular￿year￿in￿the￿future,￿which￿could￿have￿a￿negative￿effect￿on￿our￿share
price.

Restrictions on Shareholder Rights May Dilute Voting Power
Our￿Articles￿of￿Association￿provide￿that￿we￿are￿subject￿to￿the￿provisions￿of￿Dutch￿law￿applicable￿to￿large￿corporations,
called￿"structuurregime".￿These￿provisions￿have￿the￿effect￿of￿concentrating￿control￿over￿certain￿corporate￿decisions￿and
transactions￿in￿the￿hands￿of￿our￿Supervisory￿Board.￿As￿a￿result,￿holders￿of￿ordinary￿shares￿may￿have￿more￿difficulty￿in
protecting￿their￿interests￿in￿the￿face￿of￿actions￿by￿members￿of￿our￿Supervisory￿Board￿than￿if￿we￿were￿incorporated￿in￿the
United￿States￿or￿another￿jurisdiction.

Our￿authorized￿share￿capital￿also￿includes￿a￿class￿of￿cumulative￿preference￿shares￿and￿we￿have￿granted￿"Stichting
Preferente￿Aandelen￿ASML",￿a￿Dutch￿foundation,￿an￿option￿to￿acquire,￿at￿their￿nominal￿value￿of￿EUR￿0.09￿per￿share,
such￿cumulative￿preference￿shares.￿Exercise￿of￿the￿preference￿share￿option￿would￿effectively￿dilute￿the￿voting￿power￿of
our￿outstanding￿ordinary￿shares￿by￿one-half,￿which￿may￿discourage￿or￿significantly￿impede￿a￿third￿party￿from￿acquiring￿a
majority￿of￿our￿voting￿shares.

See￿Item￿6.C.￿"Board￿Practices"￿and￿Item￿10.B.￿"Memorandum￿and￿Articles￿of￿Association".

Participating Customers in our Customer Co-Investment Program Together Own a Significant Amount of our
Ordinary Shares
In￿the￿CCIP,￿the￿Participating￿Customers,￿through￿certain￿wholly-owned￿subsidiaries,￿acquired￿15￿percent,￿5￿percent￿and
3￿percent,￿of￿our￿then￿outstanding￿shares,￿respectively￿(after￿giving￿effect￿to￿our￿Synthetic￿Share￿Buyback￿conducted￿in
November￿2012).

The￿interests￿of￿the￿Participating￿Customers￿may￿not￿always￿coincide￿with￿the￿interests￿of￿other￿holders￿of￿our￿shares.
The￿shares￿acquired￿by￿the￿Participating￿Customers￿are￿held￿by￿Dutch￿foundations￿which￿have￿issued￿depositary
receipts￿in￿respect￿thereof￿and￿the￿participating￿customers￿may￿only￿vote￿those￿shares￿in￿General￿Meetings￿in
exceptional￿circumstances,￿including￿the￿authorization￿of￿certain￿significant￿share￿issuances￿and￿share￿repurchases,
the￿approval￿of￿a￿significant￿change￿in￿the￿identity￿or￿nature￿of￿ASML￿or￿its￿business,￿any￿amendment￿to￿ASML's
Articles￿of￿Association￿that￿would￿materially￿affect￿the￿specific￿voting￿rights￿of￿the￿Participating￿Customers￿or￿that
would￿cause￿a￿significant￿change￿in￿the￿identity￿or￿nature￿of￿ASML￿or￿its￿business,￿the￿dissolution￿of￿ASML,￿and￿any
merger￿or￿demerger￿which￿would￿result￿in￿a￿material￿change￿in￿the￿identity￿or￿nature￿of￿ASML￿or￿its￿business.￿When
such￿exceptional￿circumstances￿occur,￿the￿Participating￿Customers,￿and￿in￿particular￿Intel￿(due￿to￿the￿percentage￿of￿our
shares￿that￿Intel￿owns),￿will￿be￿able￿to￿influence￿matters￿requiring￿approval￿by￿the￿General￿Meeting￿and￿may￿vote￿their
ordinary￿shares￿in￿a￿way￿with￿which￿other￿shareholders￿may￿not￿agree.

The￿Participating￿Customers￿have￿also￿agreed￿that￿they￿will￿not,￿without￿our￿prior￿written￿consent,￿transfer￿any￿of￿the
ordinary￿shares￿they￿acquired￿in￿the￿CCIP￿(or￿depositary￿receipts￿representing￿those￿shares)￿until￿two￿years￿and￿six
months￿after￿the￿date￿they￿acquired￿such￿shares￿(September￿12,￿2012￿for￿Intel￿and￿Samsung;￿October￿31,￿2012￿for
TSMC).￿Upon￿expiry￿of￿such￿period,￿the￿ordinary￿shares￿held￿by￿Participating￿Customers￿are￿freely￿transferable,￿subject
to￿orderly￿market￿arrangements￿and￿certain￿other￿restrictions.￿Any￿sales￿of￿significant￿amounts￿of￿shares￿by￿Participating
Customers￿in￿the￿CCIP￿could￿have￿a￿negative￿effect￿on￿our￿share￿price.

See￿Item￿4.B.￿"Business￿Overview￿-￿Customer￿Co-Investment￿Program".

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Item 4 Information on the Company

A. History and Development of the Company
We￿commenced￿business￿operations￿in￿1984.￿ASM￿Lithography￿Holding￿N.V.￿was￿incorporated￿in￿the￿Netherlands￿on
October￿3,￿1994￿to￿serve￿as￿the￿holding￿company￿for￿our￿worldwide￿operations,￿which￿include￿operating￿subsidiaries
in￿the￿Netherlands,￿the￿United￿States,￿Italy,￿France,￿Germany,￿the￿United￿Kingdom,￿Ireland,￿Belgium,￿Korea,￿Taiwan,
Singapore,￿China￿(including￿Hong￿Kong),￿Japan,￿Malaysia￿and￿Israel.￿In￿2001,￿we￿changed￿our￿name￿to￿ASML￿Holding
N.V.￿Our￿registered￿office￿is￿located￿at￿De￿Run￿6501,￿5504￿DR￿Veldhoven,￿the￿Netherlands,￿telephone￿number￿+31￿40
268￿3000.

From￿time￿to￿time,￿we￿pursue￿acquisitions￿of￿businesses￿that￿we￿believe￿will￿complement￿or￿enhance￿our￿core
lithography￿business:￿the￿acquisition￿of￿MaskTools￿(business￿unit￿of￿MicroUnity￿Systems￿Engineering,￿Inc.)￿in￿1999,
Silicon￿Valley￿Group,￿Inc.￿in￿2001,￿Brion￿Technologies,￿Inc.￿in￿2007￿and￿the￿acquisition￿of￿Wijdeven￿Motion￿Holding
B.V.￿and￿Wijdeven￿Motion￿B.V.￿in￿2012.￿On￿May￿30,￿2013,￿we￿completed￿the￿acquisition￿of￿Cymer,￿Inc.￿a￿San￿Diego,
California,￿the￿United￿States￿based￿light￿source￿supplier.￿See￿Note￿2￿to￿our￿Financial￿Statements￿for￿more￿information￿on
the￿acquisition￿of￿Cymer.

Capital￿Expenditures￿and￿Divestures
Our￿capital￿expenditures￿(purchases￿of￿property,￿plant￿and￿equipment)￿for￿2013,￿2012￿and￿2011￿amounted￿to￿EUR￿210.8
million,￿EUR￿171.9￿million￿and￿EUR￿300.9￿million,￿respectively.￿Our￿capital￿expenditures￿in￿these￿years￿mainly￿related￿to
(i)￿the￿construction￿of￿our￿production￿facilities￿in￿Veldhoven,￿the￿Netherlands,￿for￿our￿latest￿technologies￿such￿as￿EUV
and￿Immersion￿platform,￿(ii)￿information￿technology￿investments,￿and￿(iii)￿machinery￿and￿equipment￿for￿our￿facilities.
Capital￿expenditures￿are￿primarily￿financed￿through￿cash￿provided￿by￿operating￿activities.￿See￿item￿4.D.￿"Business
Overview￿-￿Property,￿Plant￿and￿Equipment"￿for￿our￿expected￿capital￿expenditures￿in￿2014.

Divestures,￿mainly￿consisting￿of￿machinery￿and￿equipment,￿amounted￿to￿EUR￿2.8￿million￿for￿2013,￿EUR￿2.3￿million￿for
2012￿and￿EUR￿3.4￿million￿for￿2011.￿See￿Consolidated￿Statements￿of￿Cash￿Flows￿to￿our￿Financial￿Statements.

B. Business Overview
ASML￿makes￿possible￿affordable￿microelectronics￿that￿improve￿the￿quality￿of￿life.￿ASML￿invents￿and￿develops￿complex
technology￿for￿high-tech￿lithography,￿metrology￿and￿software￿solutions￿for￿the￿semiconductor￿industry.￿ASML's￿guiding
principle￿is￿continuing￿Moore's￿Law￿towards￿ever￿smaller,￿cheaper,￿more￿powerful￿and￿energy-efficient￿semiconductors.
Our￿success￿is￿based￿on￿three￿pillars:￿technology￿leadership￿combined￿with￿customer￿and￿supplier￿intimacy,￿highly
efficient￿processes￿and￿entrepreneurial￿people.￿We￿are￿a￿multinational￿company￿with￿over￿70￿locations￿in￿16￿countries,
headquartered￿in￿Veldhoven,￿the￿Netherlands.￿As￿of￿December￿31,￿2013,￿we￿employed￿10,360￿payroll￿employees￿(2012:
8,497)￿and￿2,865￿temporary￿employees￿(2012:￿2,139),￿measured￿in￿FTEs.￿ASML￿is￿traded￿on￿NYSE￿Euronext￿Amsterdam
and￿NASDAQ￿under￿the￿symbol￿ASML.

Our￿Business￿Model
Our￿business￿model￿is￿derived￿from￿our￿"Value￿of￿Ownership"￿concept￿which￿is￿based￿on￿the￿following￿principles:
• Offering￿ongoing￿improvements￿in￿throughput,￿imaging￿and￿overlay￿by￿introducing￿advanced￿technology￿based
modular￿platforms,￿advanced￿applications￿and￿holistic￿lithography￿solutions￿outside￿the￿traditional￿lithography
business,￿each￿resulting￿in￿lower￿costs￿or￿higher￿value￿per￿product￿for￿our￿customers;

• Providing￿customer￿services￿that￿ensure￿rapid,￿efficient￿installation,￿superior￿support￿and￿training￿to￿optimize

manufacturing￿processes￿of￿our￿customers;

• Maintaining￿appropriate￿levels￿of￿R&D￿to￿offer￿the￿most￿advanced￿technology￿suitable￿for￿high-throughput￿and￿low-

cost￿volume￿production￿at￿the￿earliest￿possible￿date￿enhancing/following￿Moore's￿law;

• Enhancing￿the￿capabilities￿of￿the￿installed￿base￿of￿our￿customers￿through￿ongoing￿field￿upgrades￿of￿throughput,

imaging￿and￿overlay,￿based￿on￿further￿technology￿developments;

• Reducing￿the￿cycle￿time￿between￿a￿customer’s￿order￿of￿a￿system￿and￿the￿use￿of￿that￿system￿in￿volume￿production;
• Expanding￿operational￿flexibility￿in￿research￿and￿manufacturing￿by￿reinforcing￿strategic￿alliances￿with￿world￿class

partners,￿including￿outsourcing￿companies;
Improving￿the￿reliability￿and￿uptime￿of￿our￿installed￿system￿base;￿and

•
• Providing￿refurbishing￿services￿that￿effectively￿increase￿residual￿value￿by￿extending￿the￿life￿of￿equipment.

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Market￿and￿Technology￿Overview
The￿chip-making￿business￿is￿focused￿on￿"shrink"￿or￿reducing￿the￿size￿of￿chip￿designs￿as￿a￿driver￿of￿cost￿reduction￿and
increased￿functionality.￿The￿worldwide￿electronics￿and￿computer￿industries￿have￿experienced￿significant￿growth￿since
the￿commercialization￿of￿ICs￿in￿the￿1960s,￿largely￿due￿to￿the￿continuous￿reduction￿of￿the￿cost￿per￿function￿performed
by￿ICs.￿Improvement￿in￿the￿design￿and￿manufacture￿of￿ICs￿with￿higher￿circuit￿or￿"packing"￿densities￿has￿resulted￿in
smaller￿and￿lower￿cost￿ICs,￿capable￿of￿performing￿a￿greater￿number￿of￿functions￿at￿higher￿throughput￿levels￿and￿with
reduced￿power￿consumption.￿We￿believe￿that￿these￿long-term￿trends￿will￿continue￿for￿the￿foreseeable￿future￿and￿will
be￿accompanied￿by￿a￿continuing￿demand,￿subject￿to￿ongoing￿cyclical￿variation,￿for￿production￿equipment￿that￿can
accurately￿produce￿advanced￿ICs￿in￿high￿volumes￿at￿the￿lowest￿possible￿cost.￿Lithography￿is￿used￿to￿print￿complex
circuit￿patterns￿onto￿the￿wafers￿that￿are￿the￿primary￿raw￿material￿for￿ICs￿and￿is￿one￿of￿the￿most￿critical￿and￿expensive
steps￿in￿their￿fabrication.￿It￿is￿therefore￿a￿significant￿focus￿of￿the￿IC￿industry’s￿demand￿for￿cost-efficient￿enhancements
to￿production￿technology.

We￿primarily￿design,￿manufacture,￿market￿and￿service￿semiconductor￿processing￿equipment￿used￿in￿the￿fabrication
of￿ICs.￿Our￿lithography￿equipment￿includes￿Step￿&￿Scan￿systems,￿which￿combine￿stepper￿technology￿with￿a￿photo-
scanning￿method.

Our￿systems￿use￿a￿mask￿to￿achieve￿the￿required￿chip￿pattern.￿A￿mask￿is￿a￿flat,￿transparent￿quartz￿plate￿containing￿an
opaque￿microscopic￿pattern:￿an￿image￿of￿the￿electronic￿circuitry￿for￿one￿layer￿of￿a￿chip.￿The￿mask￿is￿placed￿in￿a￿scanner
where￿intense￿light￿passing￿through￿it￿projects￿the￿pattern,￿via￿a￿series￿of￿reducing￿lenses,￿onto￿part￿of￿the￿wafer.￿Before
exposure,￿the￿wafer￿is￿coated￿with￿photo￿resist￿and￿positioned￿so￿that￿the￿projected￿pattern￿aligns￿with￿existing￿features
on￿the￿wafer.￿After￿exposure￿and￿developing,￿the￿pattern￿left￿on￿the￿wafer￿surface￿is￿used￿to￿selectively￿process￿and
build￿up￿the￿next￿layer.

Customer￿Roadmaps
The￿four￿major￿customer￿sectors￿to￿which￿we￿sell￿our￿products￿are￿Integrated￿Device￿Manufacturers￿("IDM")￿and
Foundries￿(together￿"Logic"),￿NAND-Flash￿memory￿and￿DRAM￿memory￿chipmakers￿(together￿"Memory").

Supported￿by￿their￿technology￿roadmaps,￿IC￿manufacturers￿continue￿to￿show￿interest￿in￿shrinking￿resolution￿as￿a￿means
to￿lower￿manufacturing￿costs￿per￿unit￿or￿adding￿value￿through￿more￿functional￿integration.￿We￿believe￿that￿the￿leading
IC￿manufacturers￿have￿plans￿to￿migrate￿their￿production￿capabilities￿in￿the￿foreseeable￿future￿to￿imaging￿at￿a￿resolution
beyond￿10￿nm,￿for￿which￿they￿will￿require￿state-of-the-art￿lithography￿equipment.

Products
We￿develop￿lithography￿systems￿and￿related￿products￿for￿the￿semiconductor￿industry￿and￿related￿patterning
applications.￿Our￿product￿development￿strategy￿focuses￿on￿the￿development￿of￿product￿families￿based￿on￿a￿modular,
upgradeable￿design.

Our￿older￿PAS￿2500￿and￿PAS￿5000￿lithography￿systems,￿which￿we￿no￿longer￿manufacture￿but￿continue￿to￿refurbish,
are￿used￿with￿g-line￿and￿i-line￿light￿sources￿for￿processing￿wafers￿up￿to￿150￿mm￿in￿diameter￿and￿are￿employed￿in
manufacturing￿environments￿and￿in￿special￿applications￿for￿which￿design￿resolutions￿of￿0.5￿microns￿and￿above￿are
required.

Our￿PAS￿5500￿product￿family￿comprises￿advanced￿wafer￿steppers￿and￿Step￿&￿Scan￿systems￿equipped￿with￿i-line,￿KrF
and￿ArF￿light￿sources￿for￿processing￿wafers￿up￿to￿200￿mm￿in￿diameter￿and￿are￿employed￿in￿volume￿manufacturing￿to
achieve￿design￿nodes￿requiring￿imaging￿at￿a￿resolution￿down￿to￿90￿nm.

We￿offer￿TWINSCAN￿systems,￿equipped￿with￿i-line,￿KrF￿and￿ArF￿light￿sources￿for￿processing￿wafers￿up￿to￿300￿mm￿in
diameter￿for￿manufacturing￿environments￿for￿which￿imaging￿at￿a￿resolution￿down￿to￿38￿nm￿are￿required.￿The￿modular
upgradeable￿design￿philosophy￿of￿the￿PAS￿5500￿product￿family￿has￿been￿further￿refined￿and￿applied￿in￿the￿design
TWINSCAN.￿Introduced￿in￿2000,￿the￿TWINSCAN￿platform,￿is￿the￿basis￿for￿our￿current￿and￿next-generation￿Step-and
Scan￿systems,￿which￿are￿capable￿of￿extending￿shrink￿technology￿down￿to￿38￿nm￿and￿beyond￿with￿multiple￿patterning
techniques.

We￿are￿one￿of￿the￿world’s￿leaders￿(measured￿in￿revenues)￿in￿the￿innovation￿of￿immersion￿technologies￿and￿we￿were
the￿world’s￿first￿producer￿of￿dual-stage￿design￿TWINSCAN￿systems.￿With￿a￿TWINSCAN￿system,￿wafer￿measurement,
including￿focus￿and￿alignment,￿is￿completed￿on￿the￿dry￿stage,￿while￿the￿imaging￿process,￿using￿water￿applied￿between
the￿wafer￿and￿the￿lens,￿is￿completed￿on￿the￿wet￿stage.￿The￿dual-stage￿advantage￿of￿TWINSCAN￿immersion￿systems
enables￿our￿customers￿to￿benefit￿from￿the￿process￿enhancements￿of￿immersion￿while￿continuing￿to￿use￿familiar￿and
proven￿metrology￿technology.

ASML￿ANNUAL￿REPORT￿2013

14

Furthermore,￿we￿continuously￿develop￿and￿sell￿a￿range￿of￿product￿options￿and￿enhancements￿designed￿to￿increase
productivity￿and￿improve￿imaging￿and￿overlay￿to￿optimize￿value￿of￿ownership￿over￿the￿entire￿life￿of￿our￿systems.

NXE￿is￿based￿on￿a￿new￿platform￿utilizing￿the￿concepts￿of￿the￿NXT￿platform.￿NXE￿extends￿the￿industry￿proven￿modularity
of￿our￿NXT,￿with￿new￿innovative￿technologies￿to￿support￿EUV￿imaging￿in￿several￿system￿critical￿areas,￿including￿the
EUV￿light￿source,￿the￿reflective￿mirror￿optical￿system￿and￿all￿encompassed￿within￿a￿vacuum￿system.￿NXE￿is￿targeted
for￿production￿of￿ICs￿down￿to￿13￿nm￿and￿beyond.￿It￿is￿equipped￿with￿EUV￿light￿source￿technology,￿based￿upon￿tin
plasma,￿producing￿light￿at￿a￿wavelength￿of￿13.5￿nm.￿In￿addition,￿the￿NXE￿system￿has￿an￿innovative￿optical￿technology
utilizing￿reflective￿mirrors￿rather￿than￿the￿traditional￿refractive￿optics￿with￿a￿NA￿of￿0.25￿-￿0.33.￿The￿light￿in￿NXE￿operates
in￿a￿vacuum￿environment,￿through￿the￿entire￿optical￿train￿to￿wafer￿level.￿With￿the￿combination￿of￿these￿revolutionary
technologies,￿EUV￿offers￿the￿potential￿to￿provide￿our￿customers￿a￿roadmap￿for￿future￿shrink,￿and￿we￿expect￿it￿to￿become
the￿predominant￿lithography￿technology￿for￿the￿coming￿years.￿The￿success￿of￿EUV￿remains￿particularly￿dependent￿on
light￿source￿(laser)￿availability￿and￿on￿maintaining￿EUV-related￿technical￿advances￿by￿us￿and￿our￿suppliers,￿as￿well￿as
infrastructure￿developments￿in￿masks￿and￿photoresists.￿In￿order￿to￿accelerate￿the￿availability￿and￿integration￿of￿the
light￿source￿for￿EUV￿in￿2013￿we￿acquired￿Cymer,￿the￿industry￿leading￿supplier￿of￿laser￿light￿sources￿for￿lithography
applications.

Product￿Development
Our￿customers￿optimize￿their￿scanner￿performance￿by￿taking￿into￿account￿the￿entire￿chip￿creation￿process,￿from￿design
to￿volume￿manufacturing,￿we￿call￿this￿approach￿"holistic￿lithography".￿We￿complement￿our￿scanner￿products￿with￿a
rapidly￿expanding￿holistic￿lithography￿portfolio￿of￿software￿and￿metrology￿products￿to￿help￿our￿customers￿optimize
semiconductor￿scanner￿performance,￿provide￿a￿faster￿start￿to￿chip￿production￿and￿achieve￿better￿imaging￿at￿higher
resolutions.￿Semiconductor￿manufacturers￿face￿increasingly￿smaller￿margins￿of￿error￿as￿they￿shrink￿chip￿features.
Holistic￿lithography￿provides￿a￿way￿to￿shrink￿within￿these￿margins,￿offering￿significant￿revenue-generating￿and￿cost-
saving￿opportunities￿to￿our￿customers.

Our￿current￿computational￿lithography￿portfolio￿comprises￿both￿traditional￿products￿(such￿as￿RET/OPC/DPT/SMO),￿as
well￿as￿solutions￿that￿directly￿interface￿with￿the￿numerous￿calibration￿controls￿in￿our￿scanner￿to￿optimize￿performance.
Our￿computational￿lithography￿products￿capture￿detailed￿knowledge￿of￿scanner￿design￿and￿real￿performance,￿which
enables￿them￿to￿accurately￿predict￿real-life￿manufacturing￿performance.￿These￿predictions￿are￿essential￿in￿addressing
possible￿ramp-up￿and￿yield￿problems￿in￿advance,￿potentially￿avoiding￿months￿of￿delay￿in￿time-to-market￿for￿our
customers.￿The￿same￿prediction￿capabilities￿allow￿our￿scanners￿to￿be￿optimally￿calibrated￿for￿improved￿performance￿in
production,￿given￿specific￿chip￿designs￿or￿masks,￿thereby￿achieving￿improved￿yield.

Once￿a￿scanner￿is￿optimally￿set-up￿for￿a￿given￿application,￿we￿also￿offer￿scanner￿control￿solutions￿that￿ensure￿that￿the
performance￿of￿the￿lithographic￿process￿remains￿optimal￿and￿stable￿throughout￿production.￿These￿scanner￿control
solutions￿leverage￿the￿scanner￿controls￿to￿compensate￿for￿potential￿performance￿drifts￿in￿the￿scanner￿itself,￿as￿well
as￿in￿other￿steps￿of￿the￿device￿manufacturing￿process,￿such￿as￿mask￿deterioration,￿resist￿coating￿fingerprints,￿etching
fingerprints,￿or￿chemical-mechanical￿polishing￿fingerprints.￿To￿provide￿a￿total￿solution￿for￿scanner￿control￿we￿offer￿our
own￿advanced￿wafer￿metrology￿system￿("YieldStar").

We￿have￿been￿developing￿YieldStar￿for￿overlay￿and￿CD￿measurements￿by￿using￿scatterometry￿technology.￿YieldStar
scatterometry￿provides￿high￿overlay￿and￿low￿cost￿wafer￿metrology￿data￿that￿can￿be￿used￿for￿further￿improving￿the￿NXT/
NXE￿performance.

In￿2012,￿ASML￿began￿shipment￿of￿the￿third￿generation￿YieldStar￿Metrology￿system,￿the￿S200C,￿which￿featured￿higher
throughput￿and￿measurement￿overlay￿to￿support￿tighter￿on￿product￿wafer￿overlay￿and￿focus￿control￿performance￿of￿the
NXT:19X0￿systems.￿In￿2013,￿we￿completed￿shipment￿of￿our￿100th￿YieldStar￿metrology￿system.

We￿have￿developed￿different￿immersion￿systems￿for￿different￿customer￿needs.￿The￿TWINSCAN￿NXT￿platform￿enables
next￿generations￿of￿semiconductors￿through￿the￿so-called￿DPT￿which￿requires￿two￿exposures￿per￿layer￿on￿a￿chip,
enabling￿precise￿imaging￿patterns￿and￿lines￿by￿using￿our￿TWINSCAN￿NXT￿planar￿wafer￿stage￿and￿breakthrough￿grid
metrology.￿In￿2013,￿we￿shipped￿our￿first￿five￿NXT:1970Ci￿systems,￿which￿offer￿overlay￿below￿2￿nm,￿focus￿control￿of￿less
than￿20￿nm￿and￿throughput￿of￿more￿than￿250￿wafers￿per￿hour.￿Approximately￿250￿NXT:1950i￿and￿NXT:1960Bi￿systems
are￿currently￿in￿use￿by￿our￿customers,￿which￿are￿field-upgradeable￿to￿the￿same￿performance￿level￿as￿our￿NXT:1970Ci
system.

In￿2010,￿we￿achieved￿a￿major￿milestone￿with￿EUV￿lithography￿when￿we￿shipped￿our￿first￿NXE:3100.￿The￿NXE:3100
combined￿a￿wavelength￿of￿13.5￿nm￿and￿an￿optical￿system￿with￿a￿NA￿of￿0.25￿to￿provide￿imaging￿at￿a￿resolution￿of￿27
nm.￿Through￿2013,￿our￿NXE:3100￿pre-production￿systems￿exposed￿a￿cumulative￿total￿of￿more￿than￿44,000￿wafers￿at
customers￿sites,￿enabling￿successful￿recipe￿developments￿for￿the￿sub￿14￿nm￿Logic￿and￿22￿nm￿DRAM￿nodes.

ASML￿ANNUAL￿REPORT￿2013

15

The￿successor￿of￿the￿NXE:3100,￿the￿NXE:3300B￿combines￿a￿wavelength￿of￿13.5￿nm￿and￿an￿optical￿system￿with￿a
NA￿of￿0.33￿to￿provide￿imaging￿at￿a￿resolution￿of￿22￿nm.￿The￿enhancements￿of￿the￿NXE:3300B￿enable￿the￿improved
performance,￿in￿the￿same￿manner￿that￿upgrades￿to￿the￿NXT￿platform￿improve￿its￿productivity.￿In￿2013,￿the￿first￿of￿our
third-generation￿EUV￿scanners￿has￿been￿recognized￿in￿sales.￿As￿per￿year￿end￿2013,￿the￿second￿and￿third￿NXE:3300B
systems￿are￿being￿installed￿at￿customer￿sites.

ASML￿Lithography￿Product￿Portfolio￿of￿Step￿&￿Scan￿Systems

System
PAS 5500 SYSTEMS1,2
PAS￿5500/4X0
PAS￿5500/750
PAS￿5500/850
PAS￿5500/1150

TWINSCAN SYSTEMS2
TWINSCAN￿XT:400
TWINSCAN￿XT:450
TWINSCAN￿XT:8X0
TWINSCAN￿XT:1000
TWINSCAN￿XT:1450
TWINSCAN￿XT:1700￿immersion
TWINSCAN￿XT:1900￿immersion
TWINSCAN￿XT:1950￿immersion
TWINSCAN￿NXT:19X0￿immersion

EUV
NXE:3100
NXE:3300B

Resolution

Wavelength

Light source

Numerical aperture

280￿nm
130￿nm
110￿nm
90￿nm

350￿nm
220￿nm
110￿nm
80￿nm
65￿nm
45￿nm
40￿nm
38￿nm
38￿nm

27￿nm
22￿nm

365￿nm
248￿nm
248￿nm
193￿nm

365￿nm
365￿nm
248￿nm
248￿nm
193￿nm
193￿nm
193￿nm
193￿nm
193￿nm

13.5￿nm
13.5￿nm

i-line
KrF
KrF
ArF

i-line
i-line
KrF
KrF
ArF
ArF
ArF
ArF
ArF

EUV
EUV

0.48-0.65
0.50-0.70
0.55-0.80
0.50-0.75

0.48-0.65
0.48-0.65
0.55-0.80
0.50-0.93
0.65-0.93
0.75-1.20
0.85-1.35
0.85-1.35
0.85-1.35

0.25
0.33

1

2

This￿table￿does￿not￿include￿older￿(including￿used)￿products￿sold￿on￿the￿PAS￿2500,￿PAS￿5000￿and￿PAS￿5500￿platforms￿or￿system￿enhancements￿on
steppers￿and￿scanners￿and￿other￿products￿(e.g.￿YieldStar￿or￿computational￿lithography￿products).
The￿X￿in￿the￿product￿number￿represents￿different￿models￿in￿the￿product￿portfolio￿within￿the￿same￿resolution.￿For￿example,￿XT:8X0￿can￿either￿represent
XT:800￿or￿XT:850.

Sales,￿Customer￿Support￿and￿Customers￿
We￿support￿our￿customers￿with￿a￿broad￿range￿of￿applications,￿services,￿and￿technical￿support￿products￿to￿maintain￿and
maximize￿the￿performance￿of￿our￿sources￿and￿systems￿at￿customer￿sites.￿We￿also￿offer￿refurbished￿and￿remanufactured
tools,￿system￿upgrades￿and￿enhancements,￿and￿technical￿training.

We￿market￿and￿sell￿our￿products￿through￿our￿direct￿sales￿force.

Our￿field￿sales,￿field￿engineers￿and￿applications,￿service￿and￿technical￿support￿specialists￿are￿located￿throughout
Asia,￿the￿United￿States￿and￿Europe.￿We￿have￿established￿ACE￿in￿Taiwan,￿Asia.￿The￿primary￿goal￿of￿ACE￿is￿to￿serve￿as
a￿supplementary￿engine￿to￿propel￿ASML’s￿long-term￿growth.￿ACE￿features￿customer￿support￿and￿training,￿logistics,
refurbishment,￿technology,￿application￿development￿and￿also￿produces￿all￿YieldStar￿systems.￿ACE￿also￿enables￿sourcing
of￿selected￿equipment￿modules,￿components￿and￿services￿in￿the￿region.￿Finally,￿ACE￿is￿also￿used￿as￿a￿training￿center￿to
develop￿worldwide￿talent￿for￿our￿workforce.

Furthermore,￿as￿a￿consequence￿of￿the￿acquisition￿of￿Cymer,￿we￿are￿now￿able￿to￿offer￿our￿customers￿OnPulse
contracts.￿These￿contracts￿offer￿a￿comprehensive￿approach￿to￿enhancing￿light￿source￿productivity,￿offering￿our
customers￿predictable￿light￿source￿running￿costs￿that￿scale￿directly￿with￿pulse￿utilization.￿We￿provide￿our￿OnPulse
contract￿customers￿on-site￿support￿from￿certified￿service￿engineers￿and￿continuous￿real-time￿light￿source￿monitoring.
Replacement￿parts￿and￿support￿are￿covered￿under￿the￿OnPulse￿contract,￿which￿facilitates￿cost￿savings￿for￿our
customers￿as￿well￿as￿simplified￿order￿and￿asset￿management.￿We￿believe￿that￿our￿OnPulse￿contracts￿offer￿our
customers￿many￿compelling￿benefits,￿and￿this￿product￿has￿been￿well-received￿by￿our￿customers.

Customers￿and￿Geographic￿Regions￿
In￿2013,￿net￿sales￿to￿our￿largest￿customer￿accounted￿for￿EUR￿2,058.6￿million,￿or￿39.2￿percent,￿of￿net￿sales￿(2012:￿EUR
1,236.1￿million,￿or￿26.1￿percent,￿of￿net￿sales;￿2011:￿EUR￿1,311.7￿million￿or￿23.2￿percent,￿of￿net￿sales).￿We￿expect￿that￿the
sales￿to￿a￿limited￿number￿of￿customers￿will￿continue￿to￿account￿for￿a￿high￿percentage￿of￿our￿net￿sales￿in￿any￿particular
period￿for￿the￿foreseeable￿future.

In￿2013,￿we￿derived￿82.5￿percent￿of￿net￿sales￿from￿Asia,￿13.7￿percent￿from￿the￿United￿States￿and￿3.8￿percent￿from
Europe￿(2012:￿Asia:￿70.7￿percent;￿US:￿23.9￿percent￿and￿Europe:￿5.4￿percent;￿2011:￿Asia:￿66.5￿percent;￿US:￿24.6￿percent
and￿Europe:￿8.9￿percent).￿See￿Note￿21￿to￿our￿Financial￿Statements.

ASML￿ANNUAL￿REPORT￿2013

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Manufacturing,￿Logistics￿and￿Suppliers￿
Our￿business￿model￿is￿based￿on￿outsourcing￿production￿of￿a￿significant￿part￿of￿the￿components￿and￿modules￿that
comprise￿our￿lithography￿systems￿and￿sources,￿working￿in￿partnership￿with￿suppliers￿from￿all￿over￿the￿world.￿Our
manufacturing￿activities￿comprise￿the￿subassembly￿and￿testing￿of￿certain￿modules￿and￿the￿final￿assembly￿and￿fine
tuning/testing￿of￿a￿complete￿system￿from￿components￿and￿modules￿that￿are￿manufactured￿to￿our￿specifications￿by￿third
parties￿and￿by￿us.￿All￿of￿our￿manufacturing￿activities￿(subassembly,￿final￿assembly￿and￿system￿fine￿tuning/testing)￿are
performed￿in￿clean￿room￿facilities￿in￿Veldhoven,￿the￿Netherlands,￿in￿Wilton,￿Connecticut￿and￿in￿San￿Diego,￿California,
both￿the￿United￿States,￿in￿Pyongtaek,￿South￿Korea￿and￿in￿Linkou,￿Taiwan.￿We￿procure￿stepper,￿source￿and￿scanner
system￿components￿and￿subassemblies￿from￿a￿single￿supplier￿or￿a￿limited￿group￿of￿suppliers￿in￿order￿to￿ensure￿overall
quality￿and￿timeliness￿of￿delivery.￿We￿jointly￿operate￿a￿formal￿strategy￿with￿suppliers￿known￿as￿"value￿sourcing",￿which
is￿based￿on￿competitive￿performance￿in￿quality,￿logistics,￿technology￿and￿total￿cost.￿The￿essence￿of￿value￿sourcing￿is￿to
maintain￿a￿supply￿base￿that￿is￿world￿class,￿globally￿competitive￿and￿globally￿present.

Our￿value￿sourcing￿strategy￿is￿based￿on￿the￿following￿strategic￿principles:
•￿￿￿￿￿￿Maintaining￿long-term￿relationships￿with￿our￿suppliers;
•￿￿￿￿￿￿Sharing￿risks￿and￿rewards￿with￿our￿suppliers;
•￿￿￿￿￿￿Dual￿sourcing￿of￿knowledge,￿globally,￿together￿with￿our￿suppliers;￿and
•￿￿￿￿￿￿Single￿sourcing￿of￿products,￿where￿possible￿or￿required.

Value￿sourcing￿is￿intended￿to￿align￿the￿performance￿of￿our￿suppliers￿with￿our￿requirements￿on￿quality,￿logistics,
technology￿and￿total￿costs.

Zeiss￿is￿our￿single￿supplier￿of￿lenses,￿collectors￿and￿other￿critical￿optical￿components.￿In￿2013,￿27.4￿percent￿of￿our
aggregate￿cost￿of￿sales￿was￿purchased￿from￿Zeiss￿(2012:￿28.0￿percent;￿2011:￿28.7￿percent).

Zeiss￿is￿highly￿dependent￿on￿its￿manufacturing￿and￿testing￿facilities￿in￿Oberkochen￿and￿Wetzlar,￿Germany,￿and￿its
suppliers.￿Moreover,￿Zeiss￿has￿a￿finite￿capacity￿for￿production￿of￿lenses￿and￿optical￿components￿for￿our￿systems￿and￿of
collectors￿for￿our￿EUV￿sources.￿The￿expansion￿of￿this￿production￿capacity￿may￿require￿significant￿lead-time.￿From￿time
to￿time,￿the￿number￿of￿systems￿we￿are￿able￿to￿produce￿may￿be￿limited￿by￿the￿capacity￿of￿Zeiss￿to￿provide￿us￿with￿lenses,
collectors￿and￿other￿critical￿optical￿components.￿In￿2013￿our￿production￿was￿not￿limited￿by￿the￿deliveries￿from￿Zeiss.

Our￿relationship￿with￿Zeiss￿is￿structured￿as￿a￿strategic￿alliance￿pursuant￿to￿several￿agreements￿executed￿in￿1997￿and
subsequent￿years.￿These￿agreements￿define￿a￿framework￿in￿all￿areas￿of￿our￿business￿relationship.￿The￿partnership
between￿ASML￿and￿Zeiss￿is￿focused￿on￿continuous￿improvement￿of￿operational￿excellence.

Pursuant￿to￿these￿agreements,￿ASML￿and￿Zeiss￿have￿agreed￿to￿continue￿their￿strategic￿alliance￿until￿either￿party
provides￿at￿least￿three￿years￿notice￿of￿its￿intent￿to￿terminate.

In￿addition￿to￿Zeiss,￿we￿also￿rely￿on￿other￿outside￿vendors￿for￿the￿components￿and￿subassemblies￿used￿in￿our￿systems
and￿light￿sources,￿each￿of￿which￿is￿obtained￿from￿a￿limited￿number￿of￿suppliers.

See￿Item￿3.D.￿"Risk￿Factors￿-￿The￿Number￿of￿Systems￿We￿Can￿Produce￿is￿Limited￿by￿Our￿Dependence￿on￿a￿Limited
Number￿of￿Suppliers￿of￿Key￿Components".

We￿have￿a￿flexible￿labor￿model￿with￿a￿mix￿of￿fixed￿and￿flexible￿contracted￿labor￿in￿our￿manufacturing￿and￿R&D￿facilities
in￿Veldhoven,￿the￿Netherlands,￿and￿payroll￿employees￿compensated￿under￿a￿partly￿variable￿salary￿structure￿through
ASML’s￿profit￿sharing￿plan.￿Furthermore￿in￿other￿facilities￿outside￿the￿Netherlands,￿the￿applicable￿local￿labor￿laws￿and
regulations￿provide￿sufficient￿flexibility.￿Both￿models￿reinforce￿our￿ability￿to￿adapt￿more￿quickly￿to￿semiconductor￿market
cycles,￿including￿support￿for￿potential￿24-hour,￿seven￿days-a-week￿production￿activities.￿By￿maximizing￿the￿flexibility￿of
our￿technically￿skilled￿workforce,￿we￿can￿shorten￿lead-times:￿a￿key￿driver￿of￿added￿value￿for￿our￿customers.

ASML￿ANNUAL￿REPORT￿2013

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Research￿and￿Development￿
The￿semiconductor￿manufacturing￿industry￿is￿subject￿to￿rapid￿technological￿changes￿and￿new￿product￿introductions
and￿enhancements.￿We￿believe￿that￿continued￿and￿timely￿development￿and￿introduction￿of￿new￿and￿enhanced￿systems
are￿essential￿for￿us￿to￿maintain￿our￿competitive￿position.￿As￿a￿result,￿we￿have￿historically￿devoted￿a￿significant￿portion
of￿our￿financial￿resources￿to￿R&D￿programs,￿and￿we￿expect￿to￿continue￿to￿allocate￿significant￿resources￿to￿these
efforts.￿In￿addition,￿we￿have￿established￿sophisticated￿development￿centers￿in￿Veldhoven,￿the￿Netherlands,￿in￿Wilton,
Connecticut,￿in￿San￿Diego,￿California,￿both￿in￿the￿United￿States,￿in￿Pyongtaek-City,￿South-Korea￿and￿in￿Linkou,￿Taiwan.
We￿are￿also￿involved￿in￿joint￿R&D￿programs￿with￿both￿public￿and￿private￿partnerships￿and￿consortiums,￿involving
independent￿research￿centers,￿leading￿chip￿manufacturers￿and￿governmental￿programs.￿We￿aim￿to￿own￿or￿license￿our
jointly￿developed￿technology￿and￿designs￿of￿critical￿components.￿During￿2013,￿together￿with￿imec￿(an￿independent
research￿partner),￿we￿announced￿the￿establishment￿of￿an￿advanced￿patterning￿center￿located￿at￿the￿imec￿campus￿in
Leuven,￿Belgium.￿Together￿we￿plan￿to￿tackle￿upcoming￿scaling￿challenges￿due￿to￿the￿chip￿industry's￿move￿towards
single￿digit￿nanometer￿dimensions.￿Furthermore￿we￿plan￿to￿establish￿an￿Institute￿for￿Nanolithography￿in￿Amsterdam
together￿with￿FOM/NWO￿and￿UvA/VU.￿This￿institute￿will￿conduct￿fundamental￿and￿applied￿research￿in￿areas￿that￿are￿key
to￿unlocking￿innovation￿in￿the￿global￿semiconductor￿industry.

We￿apply￿for￿subsidy￿payments￿in￿connection￿with￿specific￿development￿projects￿under￿programs￿sponsored￿by￿the
Dutch￿government,￿the￿European￿Union￿and￿the￿Taiwanese￿government.￿These￿direct￿government￿grants￿are￿designed
to￿stimulate￿high-risk￿research￿for￿the￿medium￿and￿long￿term￿future.￿R&D￿costs￿include￿credits￿for￿an￿amount￿of￿EUR
16.0￿million,￿EUR￿17.9￿million￿and￿EUR￿25.1￿million￿in￿2013,￿2012￿and￿2011￿respectively.￿R&D￿credits￿relate￿to￿worldwide
(inter-)governmental￿funding￿for￿certain￿strategic￿development￿programs.￿The￿decrease￿in￿R&D￿credits￿is￿the￿result￿of￿a
change￿in￿government￿programs￿from￿subsidy￿payments￿to￿fiscal￿incentives.￿These￿incentives￿lead￿to￿tax￿deductions￿in
mainly￿Dutch￿and￿United￿States￿tax￿jurisdictions.

Our￿R&D￿efforts￿have￿led￿to￿immersion￿technology.￿Our￿innovative￿immersion￿lithography￿systems￿place￿a￿fluid￿between
the￿wafer￿and￿a￿system’s￿projection￿lens￿to￿enhance￿focus￿and￿enable￿circuit￿line-width￿to￿shrink￿to￿smaller￿dimensions
than￿what￿is￿possible￿with￿"dry"￿lithography￿systems.￿ASML￿pioneered￿this￿"wet"￿technology￿and￿has￿experienced￿strong
demand￿for￿immersion-based￿systems,￿which￿have￿been￿adopted￿by￿most￿of￿our￿customers.

We￿have￿developed￿different￿immersion￿systems￿for￿different￿customer￿needs.￿The￿TWINSCAN￿NXT￿platform￿enables
next￿generations￿of￿semiconductors￿through￿the￿so-called￿DPT￿which￿requires￿two￿exposures￿per￿layer￿on￿a￿chip,
enabling￿precise￿imaging￿patterns￿and￿lines￿by￿using￿our￿TWINSCAN￿NXT￿planar￿wafer￿stage￿and￿breakthrough￿grid
metrology.￿In￿2013,￿we￿shipped￿our￿first￿five￿NXT:1970Ci￿systems,￿which￿offer￿overlay￿below￿2￿nm,￿focus￿control￿of￿less
than￿20￿nm￿and￿throughput￿of￿more￿than￿250￿wafers￿per￿hour.￿Approximately￿250￿NXT:1950i￿and￿NXT:1960Bi￿systems
are￿currently￿in￿use￿by￿our￿customers,￿which￿are￿field-upgradeable￿to￿the￿same￿performance￿level￿as￿our￿NXT:1970Ci
system.

In￿2010,￿we￿achieved￿a￿major￿milestone￿with￿EUV￿lithography￿when￿we￿shipped￿our￿first￿NXE:3100.￿The￿NXE:3100
combined￿a￿wavelength￿of￿13.5￿nm￿and￿an￿optical￿system￿with￿a￿NA￿of￿0.25￿to￿provide￿imaging￿at￿a￿resolution￿of￿27
nm.￿Through￿2013,￿our￿NXE:3100￿pre-production￿systems￿exposed￿a￿cumulative￿total￿of￿more￿than￿44,000￿wafers￿at
customers￿sites,￿enabling￿successful￿recipe￿developments￿for￿the￿sub￿14￿nm￿Logic￿and￿22￿nm￿DRAM￿nodes.

The￿successor￿of￿the￿NXE:3100,￿the￿NXE:3300B￿combines￿a￿wavelength￿of￿13.5￿nm￿and￿an￿optical￿system￿with￿a
NA￿of￿0.33￿to￿provide￿imaging￿at￿a￿resolution￿of￿22￿nm.￿The￿enhancements￿of￿the￿NXE:3300B￿enable￿the￿improved
performance,￿in￿the￿same￿manner￿that￿upgrades￿to￿the￿NXT￿platform￿improve￿its￿productivity.￿In￿2013,￿the￿first￿of￿our
third-generation￿EUV￿scanners￿has￿been￿recognized￿in￿sales.￿As￿per￿year￿end￿2013,￿the￿second￿and￿third￿NXE:3300B
systems￿are￿being￿installed￿at￿customer￿sites.

Our￿customers￿optimize￿their￿scanner￿performance￿by￿taking￿into￿account￿the￿entire￿chip￿creation￿process,￿from￿design
to￿volume￿manufacturing,￿we￿call￿this￿approach￿"holistic￿lithography".￿We￿complement￿our￿scanner￿products￿with￿a
rapidly￿expanding￿holistic￿lithography￿portfolio￿of￿software￿and￿metrology￿products￿to￿help￿our￿customers￿optimize
semiconductor￿scanner￿performance,￿provide￿a￿faster￿start￿to￿chip￿production￿and￿achieve￿better￿imaging￿at￿higher
resolutions.￿Semiconductor￿manufacturers￿face￿increasingly￿smaller￿margins￿of￿error￿as￿they￿shrink￿chip￿features.
Holistic￿lithography￿provides￿a￿way￿to￿shrink￿within￿these￿margins,￿offering￿significant￿revenue-generating￿and￿cost-
saving￿opportunities￿to￿our￿customers.

ASML￿ANNUAL￿REPORT￿2013

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Customer Co-Investment Program

On￿July￿9,￿2012,￿we￿announced￿our￿CCIP￿to￿accelerate￿our￿development￿of￿EUV￿technology￿beyond￿the￿current
generation￿and￿our￿development￿of￿future￿450mm￿silicon￿wafer￿technology.￿The￿Participating￿Customers￿agreed￿to
fund￿EUR￿1.38￿billion￿of￿our￿research￿and￿development￿projects￿from￿2013￿through￿2017.￿This￿program￿creates￿risk
sharing￿with￿some￿of￿our￿largest￿customers￿while￿the￿results￿of￿ASML’s￿development￿programs￿will￿be￿available￿to￿every
semiconductor￿manufacturer￿with￿no￿restrictions.￿The￿R&D￿funding￿program￿in￿the￿CCIP￿consist￿of￿two￿funding￿projects:
a￿450mm￿technology￿development￿project￿and￿a￿next-generation￿EUV￿development￿project.￿ASML￿has￿entered￿into￿NRE
Funding￿Agreements￿with￿the￿Participating￿Customers.

See￿Item￿5.A.￿"Operating￿Results￿-￿Results￿of￿Operations￿2013￿Compared￿with￿2012,￿Other￿Income".

In￿addition,￿the￿Participating￿Customers￿also￿agreed￿to￿invest￿in￿ordinary￿shares￿equal￿to￿an￿aggregate￿for￿all
Participating￿Customers￿of￿23￿percent￿of￿ASML's￿issued￿share￿capital￿(calculated￿giving￿effect￿to￿our￿Synthetic￿Share
Buyback￿in￿November￿2012)￿with￿the￿proceeds￿of￿the￿share￿issuance,￿EUR￿3.85￿billion,￿being￿returned￿to￿the￿holders
of￿ordinary￿shares￿(excluding￿the￿Participating￿Customers)￿through￿a￿Synthetic￿Share￿Buyback,￿executed￿in￿November
2012.

See￿Item￿10.C.￿"Material￿Contracts￿-￿Customer￿Co-Investment￿Program".

Development 450mm silicon wafer technology

In￿November￿2013,￿following￿our￿customers’￿decision,￿ASML￿decided￿to￿pause￿the￿development￿of￿450mm￿lithography
systems￿until￿customer￿demand￿and￿the￿timing￿related￿to￿such￿demand￿is￿clear.￿We￿believe￿that￿our￿450mm
development￿activities￿can￿be￿restarted￿if￿and￿when￿the￿industry￿demands￿the￿introduction￿of￿450mm.￿Since￿450mm
requires￿both￿generic￿developments￿and￿wafer￿size-specific￿developments,￿many￿of￿our￿employees￿involved￿in￿the
450mm￿project￿are￿doing￿work￿that￿is￿just￿as￿relevant￿for￿future￿DUV￿and￿EUV￿platforms.￿The￿teams￿and￿people￿have
therefore￿been￿reassigned￿to￿different￿projects.

Under￿our￿CCIP,￿we￿are￿party￿to￿a￿450mm￿NRE￿Funding￿Agreement￿with￿Intel￿for￿a￿total￿NRE￿funding￿commitment￿of
EUR￿553￿million.￿We￿are￿currently￿in￿discussions￿with￿Intel￿to￿determine￿appropriate￿projects￿to￿which￿to￿apply￿the
450mm￿NRE￿funding.

Under￿the￿CCIP,￿we￿are￿also￿party￿to￿EUV￿NRE￿agreements￿with￿Intel￿(total￿funding￿of￿EUR￿276￿million),￿TSMC￿(total
funding￿of￿EUR￿276￿million)￿and￿Samsung￿(total￿funding￿of￿EUR￿276￿million),￿all￿of￿which￿funding￿is￿being￿used￿for￿EUV
projects.

Intellectual￿Property￿
We￿rely￿on￿intellectual￿property￿rights￿such￿as￿patents,￿copyrights￿and￿trade￿secrets￿to￿protect￿our￿proprietary
technology.￿We￿aim￿to￿obtain￿ownership￿rights￿on￿technology￿developed￿by￿or￿for￿us,￿alternatively,￿to￿have￿license￿rights
in￿place￿with￿respect￿to￿such￿technology.

In￿2004,￿the￿Nikon￿Cross-License￿Agreement￿was￿signed.￿The￿license￿period￿for￿certain￿patents￿subject￿to￿the￿Nikon
Cross-License￿Agreement,￿which￿were￿not￿perpetually￿licensed,￿ended￿on￿December￿31,￿2009.￿Pursuant￿to￿the￿terms
of￿the￿Nikon￿Cross-License￿Agreement,￿the￿parties￿have￿agreed,￿during￿the￿Cross-License￿Transition￿Period,￿not￿to
bring￿suit￿for￿claims￿related￿to￿infringement￿of￿patents￿issued￿and￿not￿perpetually￿licensed.￿Beginning￿on￿January￿1,
2015￿the￿parties￿may￿bring￿suit￿for￿infringement￿of￿patents￿subject￿to￿the￿Nikon￿Cross-License￿Agreement,￿including
any￿infringement￿that￿occurred￿during￿the￿Cross-License￿Transition￿Period.￿Damages￿resulting￿from￿claims￿for￿patent
infringement￿occurring￿during￿the￿Cross-License￿Transition￿Period￿are￿limited￿to￿three￿percent￿of￿the￿net￿sales￿price￿of
products￿found￿to￿infringe￿valid￿and￿enforceable￿patents.

In￿2007,￿ASML￿and￿Canon￿signed￿the￿Canon￿Cross-License￿Agreement,￿used￿to￿manufacture￿ICs.￿The￿Canon￿Cross-
License￿Agreement￿ends￿on￿December￿31,￿2016.

See￿Item￿3.D.￿"Risk￿Factors￿-￿Failure￿to￿Adequately￿Protect￿the￿Intellectual￿Property￿Rights￿Upon￿Which￿We￿Depend
Could￿Harm￿Our￿Business"￿and￿"Risk￿Factors￿-￿Defending￿Against￿Intellectual￿Property￿Claims￿Brought￿by￿Others￿Could
Harm￿Our￿Business."

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Competition
The￿semiconductor￿equipment￿industry￿is￿highly￿competitive.￿The￿principal￿elements￿of￿competition￿in￿our￿market￿are:
• The￿technical￿performance￿characteristics￿of￿a￿lithography￿system;
• The￿value￿of￿ownership￿of￿that￿system￿based￿on￿its￿purchase￿price,￿maintenance￿costs,￿productivity,￿and￿customer

service￿and￿support￿costs;

• The￿exchange￿rate￿of￿the￿euro￿particularly￿against￿the￿Japanese￿yen￿which￿results￿in￿varying￿prices￿and￿margins;
• The￿strength￿and￿breadth￿of￿our￿portfolio￿of￿patents￿and￿other￿intellectual￿property￿rights;￿and
• Our￿customers’￿desire￿to￿obtain￿lithography￿equipment￿from￿more￿than￿one￿supplier.

We￿believe￿that￿the￿market￿for￿lithography￿systems￿and￿the￿investments￿required￿to￿be￿a￿significant￿competitor￿in￿this
market￿segment￿has￿resulted￿in￿increased￿competition￿for￿market￿share￿through￿the￿aggressive￿prosecution￿of￿patents.
Our￿competitiveness￿will￿increasingly￿depend￿upon￿our￿ability￿to￿protect￿and￿defend￿our￿patents,￿as￿well￿as￿our￿ability￿to
develop￿new￿and￿enhanced￿semiconductor￿equipment￿that￿is￿competitively￿priced￿and￿introduced￿on￿a￿timely￿basis.

Government￿Regulation
Our￿business￿is￿subject￿to￿direct￿and￿indirect￿regulations￿in￿each￿of￿the￿countries￿in￿which￿our￿customers￿or￿we￿do
business.￿As￿a￿result,￿changes￿in￿various￿types￿of￿regulations￿could￿affect￿our￿business￿adversely.￿The￿implementation
of￿new￿technological,￿safety￿or￿legal￿requirements￿could￿impact￿our￿products,￿or￿our￿manufacturing￿or￿distribution
processes,￿and￿could￿affect￿the￿timing￿of￿product￿introductions,￿the￿cost￿of￿our￿production,￿and￿products￿as￿well￿as￿their
commercial￿success.￿Moreover,￿environmental￿and￿other￿regulations￿that￿adversely￿affect￿the￿pricing￿of￿our￿products
could￿adversely￿affect￿our￿financial￿condition￿and￿our￿results￿of￿operations.￿The￿impact￿of￿these￿changes￿in￿regulation
could￿adversely￿affect￿our￿business￿even￿where￿the￿specific￿regulations￿do￿not￿directly￿apply￿to￿us￿or￿to￿our￿products.

C. Organizational Structure
ASML￿Holding￿N.V.￿is￿a￿holding￿company￿that￿operates￿through￿its￿subsidiaries.￿Our￿major￿operating￿subsidiaries,￿each
of￿which￿is￿a￿wholly-owned￿(direct￿or￿indirect)￿subsidiary,￿are￿ASML￿Netherlands￿B.V.,￿ASML￿Systems￿B.V.,￿ASML￿Hong
Kong￿Limited￿and￿ASML￿US￿Inc.

See￿Exhibit￿8.1￿for￿a￿list￿of￿our￿main￿subsidiaries.

D. Property, Plant and Equipment
We￿lease￿a￿number￿of￿our￿facilities￿under￿operating￿leases.￿We￿also￿own￿a￿number￿of￿buildings,￿mainly￿consisting￿of
production￿facilities￿in￿Veldhoven,￿the￿Netherlands,￿in￿Wilton,￿Connecticut,￿in￿San￿Diego,￿California,￿both￿in￿the￿United
States,￿in￿Pyongtaek-City,￿South-Korea￿and￿in￿Linkou,￿Taiwan.￿The￿book￿value￿of￿land,￿buildings￿and￿constructions
owned￿amounted￿to￿EUR￿797.5￿million￿as￿of￿December￿31,￿2013￿compared￿with￿EUR￿659.8￿million￿as￿of￿December￿31,
2012.￿See￿Note￿12￿to￿our￿Financial￿Statements.

Subject￿to￿market￿conditions,￿we￿expect￿that￿our￿capital￿expenditures￿(purchases￿of￿property,￿plant￿and￿equipment)￿in
2014￿will￿be￿about￿EUR￿480￿million￿(2013:￿EUR￿210.8￿million).￿These￿expenditures￿will￿mainly￿consist￿of￿investments
used￿for￿the￿further￿expansion￿of￿our￿EUV￿production￿facilities￿enabling￿us￿to￿meet￿future￿demand￿for￿EUV￿systems￿and
of￿investments￿in￿our￿other￿strategic￿programs￿(e.g.￿Immersion).￿We￿expect￿to￿finance￿these￿capital￿expenditures￿through
cash￿generated￿by￿operations￿and￿cash￿and￿cash￿equivalents,￿as￿well￿as￿NRE￿funding.

Facilities￿in￿Europe
Our￿headquarters,￿main￿manufacturing￿facilities,￿applications￿laboratory￿and￿R&D￿facilities￿are￿located￿at￿a￿single￿site
in￿Veldhoven,￿the￿Netherlands.￿This￿state-of-the-art￿facility￿includes￿65￿thousand￿square￿meter￿of￿office￿space￿and￿42
thousand￿square￿meters￿of￿buildings￿used￿for￿manufacturing￿and￿R&D￿activities￿and￿24￿thousand￿square￿meters￿of
warehouses.￿Our￿facilities￿in￿Veldhoven,￿the￿Netherlands￿are￿partly￿owned￿and￿partly￿leased￿through￿long-term￿operating
leases￿that￿contain￿purchase￿options.￿Some￿of￿our￿office￿facilities￿at￿our￿headquarters￿in￿Veldhoven,￿the￿Netherlands,￿are
financed￿through￿a￿special￿purpose￿vehicle￿that￿is￿a￿VIE.￿We￿also￿lease￿several￿sales￿and￿service￿facilities￿at￿locations
across￿Europe.

Facilities￿in￿the￿United￿States
Our￿United￿States￿head￿office￿is￿located￿in￿a￿5￿thousand￿square￿meter￿office￿building￿in￿Chandler,￿Arizona.￿We￿maintain
lithography￿research,￿development￿and￿manufacturing￿operations￿in￿a￿28￿thousand￿square￿meter￿facility￿in￿Wilton,
Connecticut,￿and￿a￿5￿thousand￿square￿meter￿facility￿in￿Santa￿Clara,￿California.￿As￿a￿result￿of￿the￿acquisition￿of￿Cymer,
we￿acquired￿various￿facilities,￿mainly￿located￿in￿San￿Diego,￿California.￿Cymer’s￿San￿Diego￿facilities￿include￿44￿thousand
square￿meters￿of￿buildings￿used￿for￿manufacturing,￿R&D￿activities,￿warehousing￿and￿office￿space.

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Facilities￿in￿Asia
Our￿Asian￿headquarters￿is￿located￿in￿a￿425￿square￿meter￿office￿space￿in￿Hong￿Kong,￿The￿People's￿Republic￿of￿China.￿In
addition,￿our￿ACE￿facility￿in￿Linkou,￿Taiwan￿comprises￿clean￿room￿(approximately￿3￿thousand￿square￿meters)￿and￿office
space￿(approximately￿6￿thousand￿square￿meters).￿The￿ACE￿facility￿supports￿customers￿in￿the￿Asia-Pacific￿region￿by
focusing￿on￿technology￿and￿applications￿development,￿equipment￿support,￿training,￿logistics￿and￿refurbishment.￿ACE
also￿enables￿local￿sourcing￿of￿equipment,￿components,￿services￿and￿will￿produce￿all￿YieldStar￿systems.￿Our￿facility￿in
Korea￿comprises￿a￿clean￿room￿(approximately￿700￿square￿meters)￿and￿office￿space￿(approximately￿6￿thousand￿square
meters).￿The￿purpose￿of￿this￿facility￿is￿to￿support￿a￿closer￿working￿relationship￿with￿our￿customers￿in￿Korea.￿We￿also
lease￿and￿own￿several￿sales,￿service￿and￿training￿facilities￿at￿locations￿across￿Asia.￿As￿a￿result￿of￿the￿Cymer￿acquisition
we￿acquired￿a￿manufacturing￿facility￿in￿Pyongtaek-city,￿South￿Korea￿of￿3￿thousand￿square￿meters￿mainly￿used￿for
refurbishment￿activities￿of￿light￿sources.￿Additionally,￿Cymer￿leases￿various￿smaller￿locations￿accross￿Asia￿which￿are
mainly￿used￿for￿local￿sales￿and￿service￿activities.

Item 4A Unresolved Staff Comments

Not￿applicable.

Item 5 Operating and Financial Review and Prospects  

In￿the￿Executive￿Summary￿as￿included￿below,￿we￿provide￿an￿update￿of￿the￿Semiconductor￿Equipment￿Industry,￿followed
by￿a￿discussion￿of￿our￿Business￿Strategy￿and￿an￿explanation￿of￿our￿Operating￿Results￿and￿Liquidity￿and￿Capital
Resources.￿All￿information￿disclosed￿in￿this￿section￿is￿provided￿as￿a￿supplement￿to,￿and￿should￿be￿read￿in￿conjunction
with,￿our￿Financial￿Statements￿and￿the￿accompanying￿Notes￿to￿the￿Consolidated￿Financial￿Statements￿included￿in￿Item
18￿"Financial￿Statements".

Executive Summary

Introduction
ASML￿makes￿possible￿affordable￿microelectronics￿that￿improve￿the￿quality￿of￿life.￿ASML￿invents￿and￿develops￿complex
technology￿for￿high-tech￿lithography,￿metrology￿and￿software￿solutions￿for￿the￿semiconductor￿industry.￿ASML's￿guiding
principle￿is￿continuing￿Moore's￿Law￿towards￿ever￿smaller,￿cheaper,￿more￿powerful￿and￿energy-efficient￿semiconductors.
Our￿success￿is￿based￿on￿three￿pillars:￿technology￿leadership￿combined￿with￿customer￿and￿supplier￿intimacy,￿highly
efficient￿processes￿and￿entrepreneurial￿people.￿We￿are￿a￿multinational￿company￿with￿over￿70￿locations￿in￿16￿countries,
headquartered￿in￿Veldhoven,￿the￿Netherlands.￿As￿of￿December￿31,￿2013,￿we￿employed￿10,360￿payroll￿employees￿(2012:
8,497)￿and￿2,865￿temporary￿employees￿(2012:￿2,139),￿measured￿in￿FTEs.￿ASML￿is￿traded￿on￿NYSE￿Euronext￿Amsterdam
and￿NASDAQ￿under￿the￿symbol￿ASML.

Semiconductor￿Equipment￿Industry
The￿chip-making￿business￿is￿focused￿on￿"shrink",￿or￿reducing￿the￿size￿of￿chip￿designs.￿Historically￿the￿semiconductor
industry￿has￿experienced￿significant￿growth￿largely￿due￿to￿the￿continual￿reduction￿of￿cost￿per￿function￿performed￿by
ICs.￿Improvement￿in￿the￿design￿and￿manufacture￿of￿ICs￿with￿higher￿circuit￿densities￿resulted￿in￿smaller￿and￿cheaper￿ICs
capable￿of￿performing￿a￿larger￿number￿of￿functions￿at￿higher￿speeds￿with￿lower￿power￿consumption.￿We￿believe￿that
these￿long-term￿trends￿will￿continue￿for￿the￿foreseeable￿future￿and￿will￿be￿accompanied￿by￿a￿continuing￿demand￿for
production￿equipment￿that￿is￿capable￿of￿accurate￿production￿of￿advanced￿ICs￿in￿high￿volumes￿at￿the￿lowest￿possible
cost.

Lithography￿equipment￿is￿used￿to￿print￿complex￿circuit￿patterns￿onto￿silicon￿wafers,￿which￿are￿the￿primary￿raw￿materials
for￿ICs.￿The￿printing￿process￿is￿one￿of￿the￿most￿critical￿and￿expensive￿steps￿in￿wafer￿fabrication.￿Lithography￿equipment
is￿therefore￿a￿significant￿focus￿of￿the￿IC￿industry’s￿demand￿for￿cost-efficient￿enhancements￿to￿production￿technology.

The￿costs￿to￿develop￿new￿lithography￿equipment￿are￿high.￿Accordingly,￿the￿lithography￿equipment￿industry￿is
characterized￿by￿the￿presence￿of￿only￿a￿few￿suppliers:￿ASML,￿Nikon,￿and￿(to￿a￿lesser￿degree)￿Canon.￿In￿2013,￿ASML￿was
one￿of￿the￿world’s￿leading￿providers￿of￿lithography￿equipment￿(measured￿in￿revenues￿based￿upon￿Gartner￿Dataquest
fourth￿quarter￿2013￿report).

ASML￿ANNUAL￿REPORT￿2013

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Total￿lithography￿equipment￿shipped￿by￿the￿industry￿as￿a￿whole￿in￿the￿six￿years￿ended￿December￿31,￿2013,￿is￿set￿out￿in
the￿following￿table:

Year ended December 31

2013 1

2012 2

2011 2

2010 2

2009 2

2008 2

Total￿units￿shipped
Total￿value￿(in￿millions￿USD)

238
5,641

251
6,002

376
8,225

304
6,416

128
2,485

344
5,388

1
2

Historical￿data￿and￿full-year￿2013￿estimates￿as￿reported￿by￿Gartner￿Dataquest￿in￿its￿fourth￿quarter￿2013￿report.
Historical￿data￿are￿based￿on￿figures￿as￿included￿in￿the￿Gartner￿Dataquest￿fourth￿quarter￿2013￿report.￿Where￿appropriate,￿the￿estimates￿as￿included￿in
the￿Gartner￿Dataquest￿reports￿in￿prior￿years￿have￿been￿updated￿based￿on￿this￿fourth￿quarter￿2013￿report.

For￿the￿year￿2013,￿the￿latest￿indications￿of￿independent￿market￿analysts￿show￿a￿decrease￿in￿total￿lithography￿equipment
shipped￿to￿the￿market￿by￿the￿industry￿of￿5.2￿percent￿in￿unit￿volume￿and￿6.0￿percent￿in￿value.￿In￿2013,￿the￿value￿of￿our
net￿systems￿sales￿increased￿by￿5.0￿percent￿compared￿to￿2012.

Business￿Strategy
General
The￿long-term￿growth￿of￿the￿semiconductor￿industry￿is￿the￿result￿of￿the￿principle￿that￿the￿power,￿cost￿and￿time￿required
for￿every￿computation￿on￿a￿digital￿electronic￿device￿can￿be￿reduced￿by￿shrinking￿the￿size￿of￿transistors￿on￿chips.
In￿2013,￿chip￿makers￿routinely￿produced￿electronic￿chip￿features￿with￿geometries￿of￿28￿nm,￿compared￿to￿typical
geometries￿of￿10,000￿nm￿in￿the￿early￿1970s,￿resulting￿in￿an￿increase￿in￿the￿number￿of￿transistors￿on￿leading￿chips
from￿several￿thousand￿to￿over￿two￿billion.￿This￿trend￿was￿first￿observed￿by￿Intel￿co-founder￿Gordon￿Moore￿in￿1965,
and￿is￿referred￿to￿as￿"Moore’s￿Law".￿Moore’s￿Law￿has￿resulted￿in￿our￿information￿society￿with￿fast￿wired￿and￿wireless
communications￿built￿on￿affordable￿chips.￿Moore’s￿Law￿also￿has￿an￿impact￿on￿the￿energy￿usage￿of￿chips.￿Smaller
geometries￿allow￿for￿much￿lower￿electrical￿currents￿to￿operate￿the￿chip.￿This￿has￿helped￿to￿contain￿the￿world’s￿energy
consumption￿despite￿the￿proliferation￿of￿affordable￿computing.￿Using￿advanced￿semiconductors￿in￿industrial￿and
consumer￿products￿often￿provides￿economic￿benefits,￿user-friendliness￿and￿increased￿safety.￿The￿technology￿revolution
powered￿by￿semiconductors￿has￿brought￿many￿advantages:￿not￿only￿can￿information￿be￿more￿widely￿disseminated￿than
ever￿before,￿affordable￿chip￿intelligence￿has￿also￿enabled￿industry￿and￿service￿sectors￿to￿create￿and￿distribute￿products
and￿ideas￿at￿lightning￿speed.

Smarter,￿smaller￿and￿more￿energy-efficient￿chips￿are￿made￿with￿increasingly￿sophisticated￿lithography￿systems￿produced
by￿ASML.￿Lithography￿systems￿are￿crucial￿to￿the￿roadmaps￿of￿chipmakers￿to￿make￿smaller￿transistors￿on￿chips.￿Our
business￿strategy￿is￿based￿on￿maintaining￿and￿further￿developing￿our￿position￿as￿a￿technology￿leader￿in￿semiconductor
lithography.￿When￿executed,￿this￿strategy￿results￿in￿the￿delivery￿of￿lithography￿systems￿which￿enable￿customers￿to
produce￿the￿highest￿performance￿and￿lowest￿cost￿chips.￿The￿superior￿value￿of￿ownership￿offered￿to￿customers￿as￿a
result￿of￿our￿strategy￿also￿maximizes￿our￿own￿financial￿performance,￿aligning￿the￿interests￿of￿ASML￿and￿our￿customers.

Corporate Responsibility
Corporate￿Responsibility￿Strategy:￿Our￿customers￿want￿lithography￿systems￿that￿produce￿more￿chips￿faster,￿using￿less
energy￿and￿fewer￿natural￿resources,￿at￿a￿similar￿cost.￿Customers￿also￿want￿us,￿as￿their￿supplier,￿to￿operate￿according￿to
the￿highest￿environmental,￿social￿and￿governance￿standards.￿ASML's￿corporate￿responsibility￿strategy￿is￿based￿on￿and
fully￿aligned￿to￿our￿business￿strategy,￿aimed￿at￿maintaining￿and￿further￿developing￿our￿position￿as￿a￿technology￿leader￿in
the￿semiconductor￿industry.

In￿2013,￿we￿performed￿a￿comprehensive￿and￿structured￿materiality￿assessment￿in￿order￿to￿identify￿the￿non-financial
themes￿that￿are￿most￿relevant￿to￿our￿stakeholders￿and￿for￿our￿sustained￿long-term￿business￿success.

Most￿of￿the￿material￿themes￿identified￿are￿already￿included￿in￿our￿strategy￿and￿high￿on￿our￿priority￿list.￿We￿identified
eight￿material￿non-financial￿themes￿validated￿by￿the￿CRSB:

Innovation;

•
• Knowledge￿&￿intellectual￿property￿management;
• Sustainable￿relationship￿with￿our￿suppliers;
• Sustainable￿relationship￿with￿our￿customers;
• Product￿stewardship;
• Talent￿management;
• Training￿&￿development;￿and
• Sustainable￿relationship￿with￿our￿employees.

ASML￿ANNUAL￿REPORT￿2013

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In￿addition,￿we￿recognize￿that￿there￿are￿certain￿other￿themes￿on￿which￿our￿stakeholders￿expect￿us￿to￿act￿as￿a
responsible￿corporate￿citizen.￿These￿themes￿have￿been￿labeled￿as￿responsible￿business￿themes.￿The￿outcome￿of￿the
materiality￿assessment￿will￿be￿used￿in￿2014￿to￿refocus￿our￿corporate￿responsibility￿strategy.

Corporate￿Responsibility￿Governance:￿Corporate￿responsibility￿is￿driven￿by￿the￿Executive￿Vice￿President￿Operations￿and
Order￿Fulfillment￿Process,￿Frédéric￿J.M.￿Schneider-Maunoury,￿who￿chairs￿the￿CRSB,￿which￿supervises￿the￿execution
of￿our￿corporate￿responsibility￿strategy.￿The￿CRSB￿is￿made￿up￿of￿senior￿management￿representatives￿from￿all￿sectors
within￿ASML.￿It￿is￿the￿mission￿of￿the￿CRSB￿to￿monitor￿the￿realization￿of￿our￿corporate￿responsibility￿targets￿and￿KPIs,
and￿to￿review￿and￿approve￿related￿policy￿changes￿and￿improvement￿activities.￿The￿CRSB￿met￿four￿times￿in￿2013.
The￿meetings￿focused￿on￿reviewing￿the￿progress￿of￿ASML’s￿non-financial￿performance￿indicators￿with￿respect￿to￿our
corporate￿responsibility￿targets,￿KPIs￿and￿projects.

The￿Corporate￿Risk￿&￿Assurance￿department￿coordinates￿the￿day-to-day￿implementation￿of￿the￿corporate￿responsibility
strategy,￿policies￿and￿improvement￿activities,￿while￿business￿owners￿have￿the￿operational￿responsibility￿to￿implement￿the
corporate￿responsibility￿policies.

Customer Focus
Ensuring￿customers￿are￿served￿with￿the￿right￿products￿at￿the￿right￿time￿and￿supported￿by￿excellent￿service,￿is￿key￿to￿our
commitment￿to￿a￿long-term￿relationship.￿With￿high-valued￿products,￿customers￿expect￿high-quality￿support￿customized
to￿their￿specific￿requirements.￿This￿support￿includes￿service￿engineers,￿equipped￿with￿the￿latest￿technical￿information,
to￿ensure￿the￿highest￿levels￿of￿system￿performance,￿as￿well￿as￿applications￿specialists￿who￿support￿optimal￿system
processing￿and￿new￿product￿implementation.

ASML￿aims￿to￿deliver￿lithography￿systems￿with￿the￿lowest￿cost￿of￿ownership.

Customer￿satisfaction￿is￿a￿critical￿objective￿of￿ASML.￿We￿have￿account￿teams￿that￿are￿specifically￿dedicated￿to￿customer
satisfaction￿throughout￿the￿lifecycle￿of￿our￿products.

Through￿2013,￿all￿of￿the￿top￿10￿chip￿makers￿worldwide,￿in￿terms￿of￿semiconductor￿capital￿expenditure,￿were￿our
customers.￿We￿also￿have￿a￿significant￿share￿of￿customers￿outside￿the￿top￿10.￿We￿strive￿for￿continued￿business￿growth
with￿all￿our￿customers.￿We￿expect￿that￿customer￿concentration￿might￿increase￿because￿of￿continuing￿consolidation￿in
the￿semiconductor￿manufacturing￿industry.

In￿2013,￿our￿satisfaction￿ratings￿by￿customers￿surpassed￿every￿lithography￿competitor,￿according￿to￿VLSI￿Research,
ASML￿ranks￿third￿in￿the￿semiconductor￿industry￿equipment￿suppliers￿and￿first￿among￿lithography￿competitors.￿Our
performance￿has￿consistently￿been￿good:￿for￿eleven￿years￿in￿a￿row￿we￿have￿both￿ranked￿among￿the￿top￿5￿semiconductor
industry￿suppliers￿and￿our￿ranking￿surpassed￿that￿of￿any￿of￿our￿lithography￿competitors.

Technology Leadership
Our￿customers￿need￿lithography￿scanners￿that￿continuously￿improve￿performance￿in￿three￿areas:￿imaging,￿throughput
and￿overlay.￿The￿image￿of￿the￿electronic￿chip￿circuit￿must￿be￿extremely￿small￿(currently￿the￿smallest￿features￿have
a￿size￿of￿less￿than￿30￿nm),￿the￿system￿must￿be￿able￿to￿image￿billions￿of￿these￿features￿every￿second￿and￿it￿must￿be
able￿to￿do￿that￿with￿extreme￿precision￿of￿just￿a￿few￿nm￿(one￿nm￿is￿four￿silicon￿atoms).￿To￿realize￿and￿improve￿this
system￿performance￿for￿our￿customers,￿ASML￿needs￿to￿deliver￿the￿right￿technology￿at￿the￿right￿time￿to￿meet￿long-
term￿roadmaps￿which￿often￿extend￿many￿years￿into￿the￿future.￿Therefore,￿ASML￿is￿committed￿to￿significant￿long-term
investments￿in￿R&D.￿In￿2013,￿our￿R&D￿investments￿(net￿of￿credits)￿amounted￿to￿EUR￿882.0￿million￿(2012:￿EUR￿589.1
million;￿2011:￿EUR￿590.3￿million).￿A￿significant￿part￿of￿our￿R&D-budget￿was￿used￿for￿R&D￿jointly￿developed￿with￿our
suppliers￿and￿technology￿partners.￿Furthermore,￿in￿2013,￿we￿recognized￿Other￿Income￿in￿relation￿to￿the￿contributions
made￿by￿our￿Participating￿Customers￿of￿EUR￿64.4￿million.

Our￿lithography￿scanners￿are￿based￿on￿our￿dual-stage￿wafer￿imaging￿platform,￿the￿TWINSCAN￿system,￿which￿we
introduced￿in￿2000￿and￿which￿allows￿exposure￿of￿one￿wafer￿while￿simultaneously￿measuring￿the￿wafer￿which￿will￿be
exposed￿next.￿Our￿strong￿leadership￿in￿this￿capability￿has￿allowed￿us￿to￿achieve￿the￿industry’s￿highest￿productivity,
enabling￿reduced￿cost-per-exposure￿per￿wafer.￿Dual-stage￿lithography￿also￿supports￿the￿required￿overlay￿to￿position
electronic￿features￿on￿the￿wafer,￿as￿it￿allows￿for￿more￿time￿to￿measure￿the￿wafer￿prior￿to￿exposure.￿We￿are￿the￿only
lithography￿manufacturer￿that￿enables￿volume￿production￿based￿on￿dual-stage￿systems.

In￿order￿to￿meet￿the￿imaging,￿overlay￿and￿throughput￿demands￿of￿our￿customers,￿we￿have￿focused￿our￿R&D￿investments
on￿three￿core￿programs:￿EUV,￿Immersion￿and￿holistic￿lithography￿solutions.

ASML￿ANNUAL￿REPORT￿2013

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Our￿innovative￿immersion￿lithography￿systems￿place￿a￿fluid￿between￿the￿wafer￿and￿a￿system’s￿projection￿lens￿to￿enhance
focus￿and￿enable￿circuit￿line-width￿to￿shrink￿to￿smaller￿dimensions￿than￿what￿is￿possible￿with￿"dry"￿lithography￿systems.
ASML￿pioneered￿this￿"wet"￿technology￿and￿has￿experienced￿strong￿demand￿for￿immersion-based￿systems,￿which￿have
been￿adopted￿by￿most￿of￿our￿customers.

We￿have￿developed￿different￿immersion￿systems￿for￿different￿customer￿needs.￿The￿TWINSCAN￿NXT￿platform￿enables
next￿generations￿of￿semiconductors￿through￿the￿so-called￿DPT￿which￿requires￿two￿exposures￿per￿layer￿on￿a￿chip,
enabling￿precise￿imaging￿patterns￿and￿lines￿by￿using￿our￿TWINSCAN￿NXT￿planar￿wafer￿stage￿and￿breakthrough￿grid
metrology.￿In￿2013,￿we￿shipped￿our￿first￿five￿NXT:1970Ci￿systems,￿which￿offer￿overlay￿below￿2￿nm,￿focus￿control￿of￿less
than￿20￿nm￿and￿throughput￿of￿more￿than￿250￿wafers￿per￿hour.￿Approximately￿250￿NXT:1950i￿and￿NXT:1960Bi￿systems
are￿currently￿in￿use￿by￿our￿customers,￿which￿are￿field-upgradeable￿to￿the￿same￿performance￿level￿as￿our￿NXT:1970Ci
system.

In￿2010,￿we￿achieved￿a￿major￿milestone￿with￿EUV￿lithography￿when￿we￿shipped￿our￿first￿NXE:3100.￿The￿NXE:3100
combined￿a￿wavelength￿of￿13.5￿nm￿and￿an￿optical￿system￿with￿a￿NA￿of￿0.25￿to￿provide￿imaging￿at￿a￿resolution￿of￿27
nm.￿Through￿2013,￿our￿NXE:3100￿pre-production￿systems￿exposed￿a￿cumulative￿total￿of￿more￿than￿44,000￿wafers￿at
customers￿sites,￿enabling￿successful￿recipe￿developments￿for￿the￿sub￿14￿nm￿Logic￿and￿22￿nm￿DRAM￿nodes.

The￿successor￿of￿the￿NXE:3100,￿the￿NXE:3300B￿combines￿a￿wavelength￿of￿13.5￿nm￿and￿an￿optical￿system￿with￿a
NA￿of￿0.33￿to￿provide￿imaging￿at￿a￿resolution￿of￿22￿nm.￿The￿enhancements￿of￿the￿NXE:3300B￿enable￿the￿improved
performance,￿in￿the￿same￿manner￿that￿upgrades￿to￿the￿NXT￿platform￿improve￿its￿productivity.￿In￿2013,￿the￿first￿of￿our
third-generation￿EUV￿scanners￿has￿been￿recognized￿in￿sales.￿As￿per￿year￿end￿2013,￿the￿second￿and￿third￿NXE:3300B
systems￿are￿being￿installed￿at￿customer￿sites.

On￿May￿30,￿2013,￿we￿concluded￿the￿acquisition￿of￿Cymer￿for￿a￿total￿consideration￿of￿EUR￿3.1￿billion￿(USD￿4.0￿billion).
See￿Note￿2￿to￿the￿Financial￿Statements.￿We￿expect￿that￿the￿acquisition￿of￿Cymer￿will￿help￿us￿to￿achieve￿our￿strategic
objective￿of￿delivering￿an￿economically￿viable￿EUV￿scanner￿to￿semiconductor￿manufacturers￿as￿soon￿as￿reasonably
possible.￿We￿believe￿that￿combining￿Cymer’s￿expertise￿in￿EUV￿light￿sources￿with￿our￿expertise￿in￿lithography￿systems
design￿and￿integration￿will￿reduce￿the￿risks￿related￿to￿the￿successful￿development￿of,￿and￿accelerate￿the￿introduction￿of,
EUV￿technology.￿This￿integration￿work￿on￿our￿NXE:3300B￿scanners￿and￿light￿sources￿is￿progressing￿steadily.￿We￿remain
on￿target￿to￿deliver￿systems￿with￿a￿throughput￿of￿70￿wafers￿per￿hour￿in￿2014,￿upgradeable￿to￿125￿wafers￿per￿hour￿in
2015.

Furthermore,￿as￿a￿consequence￿of￿the￿acquisition￿of￿Cymer,￿we￿are￿now￿able￿to￿offer￿our￿customers￿OnPulse
contracts.￿These￿contracts￿offer￿a￿comprehensive￿approach￿to￿enhancing￿light￿source￿productivity,￿offering￿our
customers￿predictable￿light￿source￿running￿costs￿that￿scale￿directly￿with￿pulse￿utilization.￿We￿provide￿our￿OnPulse
contract￿customers￿on-site￿support￿from￿certified￿service￿engineers￿and￿continuous￿real-time￿light￿source￿monitoring.
Replacement￿parts￿and￿support￿are￿covered￿under￿the￿OnPulse￿contract,￿which￿facilitates￿cost￿savings￿for￿our
customers￿as￿well￿as￿simplified￿order￿and￿asset￿management.￿We￿believe￿that￿our￿OnPulse￿contracts￿offer￿our
customers￿many￿compelling￿benefits,￿and￿this￿product￿has￿been￿well-received￿by￿our￿customers.

Also,￿we￿complement￿our￿scanner￿products￿with￿a￿rapidly￿expanding￿holistic￿lithography￿portfolio￿of￿software￿and
metrology￿products￿to￿help￿our￿customers￿optimize￿semiconductor￿scanner￿performance,￿provide￿a￿faster￿start￿to￿chip
production￿and￿achieve￿better￿imaging￿at￿higher￿resolutions.￿Semiconductor￿manufacturers￿face￿increasingly￿smaller
margins￿of￿error￿as￿they￿shrink￿chip￿features.￿Holistic￿lithography￿provides￿a￿way￿to￿shrink￿within￿these￿margins,￿offering
significant￿revenue-generating￿and￿cost-saving￿opportunities￿to￿our￿customers.￿In￿2013,￿we￿boosted￿sales￿of￿YieldStar
metrology￿systems￿to￿our￿leading￿edge￿customers.￿These￿machines￿generate￿the￿data￿used￿by￿our￿holistic￿lithography
products￿to￿control￿overlay,￿CD￿and￿focus￿for￿the￿most￿advanced￿process￿nodes.

Operational Excellence
We￿strive￿to￿sustain￿our￿business￿success￿based￿on￿our￿technological￿leadership￿by￿continuing￿to￿execute￿our
fundamental￿operating￿strategy,￿including￿reducing￿lead-times￿while￿improving￿our￿cost￿competitiveness.￿Lead-time￿is
the￿time￿from￿a￿customer’s￿order￿to￿a￿tool￿delivery.

Our￿business￿strategy￿includes￿outsourcing￿the￿manufacturing￿of￿the￿majority￿of￿components￿and￿subassemblies￿that
make￿up￿our￿products.￿We￿work￿in￿partnership￿with￿suppliers,￿collaborating￿on￿quality,￿logistics,￿technology￿and￿total
cost.￿By￿operating￿our￿strategy￿of￿value￿sourcing,￿we￿strive￿to￿attain￿flexibility￿and￿cost￿efficiencies￿from￿our￿suppliers
through￿mutual￿commitment￿and￿shared￿risk￿and￿reward.￿Value￿sourcing￿also￿allows￿the￿flexibility￿to￿adapt￿to￿the
cyclicality￿of￿the￿world￿market￿for￿semiconductor￿lithography￿systems.

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24

We￿have￿a￿flexible￿labor￿model￿with￿a￿mix￿of￿fixed￿and￿flexible￿contracted￿labor￿in￿our￿manufacturing￿and￿R&D￿facilities
in￿Veldhoven,￿the￿Netherlands,￿and￿payroll￿employees￿compensated￿under￿a￿partly￿variable￿salary￿structure￿through
ASML’s￿profit￿sharing￿plan.￿Furthermore￿in￿other￿facilities￿outside￿the￿Netherlands,￿the￿applicable￿local￿labor￿laws￿and
regulations￿provide￿sufficient￿flexibility.￿Both￿models￿reinforce￿our￿ability￿to￿adapt￿more￿quickly￿to￿semiconductor￿market
cycles,￿including￿support￿for￿potential￿24-hour,￿seven￿days-a-week￿production￿activities.￿By￿maximizing￿the￿flexibility￿of
our￿technically￿skilled￿workforce,￿we￿can￿shorten￿lead-times:￿a￿key￿driver￿of￿added￿value￿for￿our￿customers.

In￿view￿of￿the￿economic￿volatility￿of￿the￿semiconductor￿industry,￿we￿continue￿to￿strive￿to￿achieve￿more￿efficiencies￿in￿our
operations￿by￿addressing￿our￿cost￿structure￿and￿strengthening￿our￿capability￿to￿generate￿cash.

ASML￿Operations￿Update￿on￿Key￿Performance￿Indicators
The￿following￿table￿presents￿the￿key￿performance￿indicators￿used￿by￿our￿Board￿of￿Management￿and￿senior￿management
to￿measure￿performance￿in￿our￿monthly￿operational￿review￿meetings.

Year ended December 31
(in millions)

2013
EUR

%1

2012
EUR

%1

2011
EUR

%1

Sales
Net￿sales
Increase￿(decrease)￿in￿net￿sales￿(%)
Net￿system￿sales
Net￿service￿and￿field￿option￿sales
Sales￿of￿systems￿(in￿units)
ASP￿of￿total￿system￿sales
ASP￿of￿new￿system￿sales
ASP￿of￿used￿system￿sales
Value￿of￿systems￿backlog￿excluding￿EUV￿2
Systems￿backlog￿excluding￿EUV￿(in￿units)￿2
ASP￿of￿systems￿backlog￿excluding￿EUV￿2
ASP￿of￿systems￿backlog￿excluding￿EUV￿(New)￿2
ASP￿of￿systems￿backlog￿excluding￿EUV￿(Used)￿2
Immersion￿systems￿recognized￿(in￿units)3
NXE￿systems￿recognized￿(in￿units)4
Profitability
Gross￿profit
Income￿from￿operations
Net￿income
Liquidity
Cash￿and￿cash￿equivalents
Short-term￿investments
Operating￿cash￿flow

5,245.3
10.9
3,993.1
1,252.2
157
25.4
27.4
6.9
1,953.3
56
34.9
41.4
4.7
77
1

2,177.2
1,047.9
1,015.5

2,330.7
679.9
1,054.2

41.5
20.0
19.4

4,731.5
(16.3)
3,801.6
929.9
170
22.4
24.8
7.6
1,214.1
46
26.4
29.8
4.0
72
1

2,005.2
1,156.8
1,146.3

1,767.6
930.0
703.5

42.4
24.4
24.2

5,651.0
25.4
4,883.9
767.1
222
22.0
24.5
3.8
1,732.5
71
24.4
27.9
3.0
101
3

2,449.4
1,641.2
1,467.0

2,731.8
-
2,070.4

43.3
29.0
26.0

1
2

3

4

As￿a￿percentage￿of￿net￿sales.
Our￿systems￿backlog￿and￿net￿bookings￿include￿only￿orders￿for￿which￿written￿authorizations￿have￿been￿accepted￿and￿system￿shipment￿and￿revenue
recognition￿dates￿within￿the￿following￿12￿months￿have￿been￿assigned.
Included￿in￿the￿total￿number￿of￿immersion￿systems￿recognized￿in￿2013￿is￿4￿units￿of￿our￿most￿advanced￿immersion￿technology￿NXT:1970Ci￿systems
(2012:￿nil￿and￿2011:￿nil)
In￿2013,￿the￿first￿of￿our￿third-generation￿EUV￿scanners￿has￿been￿recognized￿in￿sales.￿As￿per￿year￿end￿2013,￿the￿second￿and￿third￿NXE:3300B￿systems
are￿being￿installed￿at￿customer￿sites.

Backlog
We￿started￿2013￿with￿a￿systems￿backlog￿excluding￿EUV￿of￿46￿systems.￿In￿2013,￿we￿booked￿orders￿for￿166￿systems
excluding￿EUV,￿and￿recognized￿sales￿for￿156￿systems￿excluding￿EUV.￿This￿resulted￿in￿a￿systems￿backlog￿excluding￿EUV
of￿56￿as￿of￿December￿31,￿2013.

As￿of￿December￿31,￿2013,￿our￿systems￿backlog￿excluding￿EUV￿was￿valued￿at￿EUR￿1,953.3￿million￿and￿includes￿56
systems￿with￿an￿ASP￿of￿EUR￿34.9￿million.￿As￿of￿December￿31,￿2012,￿the￿systems￿backlog￿excluding￿EUV￿was￿valued
at￿EUR￿1,214.1￿million￿and￿included￿46￿systems￿with￿an￿ASP￿of￿EUR￿26.4￿million.￿The￿ASP￿of￿our￿systems￿backlog
excluding￿EUV￿increased￿in￿2013￿compared￿to￿2012￿as￿a￿result￿of￿a￿shift￿in￿the￿mix￿of￿systems￿towards￿more￿high-end
system￿types￿(e.g.￿NXT:1970Ci).

For￿discussion￿on￿the￿main￿key￿performance￿indicators￿indicated￿above,￿we￿refer￿to￿Item￿5.A.￿"Operating￿Results"￿and
Item￿5.B.￿"Liquidity￿and￿Capital￿Resources".

ASML￿ANNUAL￿REPORT￿2013

25

A. Operating Results

Critical￿Accounting￿Policies￿Using￿Significant￿Estimates￿
Our￿discussion￿and￿analysis￿of￿our￿financial￿condition￿and￿results￿of￿operations￿are￿based￿upon￿our￿Financial
Statements,￿which￿have￿been￿prepared￿in￿conformity￿with￿US￿GAAP.￿The￿preparation￿of￿our￿Financial￿Statements
requires￿us￿to￿make￿estimates￿and￿assumptions￿that￿affect￿the￿reported￿amounts￿of￿assets￿and￿liabilities￿and￿the
disclosure￿of￿contingent￿assets￿and￿liabilities￿on￿the￿balance￿sheet￿dates,￿and￿the￿reported￿amounts￿of￿net￿sales
and￿costs￿during￿the￿reported￿periods.￿Actual￿results￿could￿differ￿from￿those￿estimates.￿We￿evaluate￿our￿estimates
continually￿and￿we￿base￿our￿estimates￿on￿historical￿experience￿and￿on￿various￿other￿assumptions￿that￿we￿believe￿to￿be
reasonable￿under￿the￿circumstances.￿Actual￿results￿may￿differ￿from￿these￿estimates￿if￿the￿assumptions￿prove￿incorrect.
To￿the￿extent￿there￿are￿material￿differences￿between￿actual￿results￿and￿these￿estimates,￿our￿future￿results￿could￿be
materially￿and￿adversely￿affected.￿We￿believe￿that￿the￿accounting￿policies￿described￿below￿require￿us￿to￿make￿significant
judgments￿and￿estimates￿in￿the￿preparation￿of￿our￿Financial￿Statements.

Revenue￿Recognition
ASML￿recognizes￿revenue￿when￿all￿four￿revenue￿recognition￿criteria￿are￿met:￿persuasive￿evidence￿of￿an￿arrangement
exists;￿delivery￿has￿occurred￿or￿services￿have￿been￿rendered;￿seller’s￿price￿to￿buyer￿is￿fixed￿or￿determinable;￿and
collectability￿is￿reasonably￿assured.￿At￿ASML￿this￿policy￿generally￿results￿in￿revenue￿recognition￿from￿the￿sale￿of￿a
system￿upon￿shipment.￿The￿revenue￿from￿the￿installation￿of￿a￿system￿is￿generally￿recognized￿upon￿completion￿of￿that
installation￿at￿the￿customer￿site.￿Prior￿to￿shipment,￿systems￿undergo￿a￿"Factory￿Acceptance￿Test"￿in￿our￿clean￿room
facilities,￿effectively￿replicating￿the￿operating￿conditions￿that￿will￿be￿present￿on￿the￿customer's￿site,￿in￿order￿to￿verify
whether￿the￿system￿will￿meet￿its￿standard￿specifications￿and￿any￿additional￿technical￿and￿performance￿criteria￿agreed
with￿the￿customer,￿if￿any.￿A￿system￿is￿shipped,￿and￿revenue￿is￿recognized,￿only￿after￿all￿contractual￿specifications￿are
met￿and￿customer￿sign-off￿is￿received￿or￿waived.￿In￿case￿not￿all￿specifications￿are￿met￿and￿the￿remaining￿performance
obligation￿is￿not￿essential￿to￿the￿functionality￿of￿the￿system￿but￿is￿substantive￿rather￿than￿inconsequential￿or￿perfunctory,
a￿portion￿of￿the￿sales￿price￿is￿deferred.￿Although￿each￿system's￿performance￿is￿re-tested￿upon￿installation￿at￿the
customer's￿site,￿we￿have￿never￿failed￿to￿successfully￿complete￿installation￿of￿a￿system￿at￿a￿customer’s￿premises.

In￿connection￿with￿the￿introduction￿of￿new￿technology,￿such￿as￿our￿second-￿and￿third-generation￿EUV￿systems
(NXE:3100￿and￿NXE:3300B),￿we￿initially￿defer￿revenue￿recognition￿until￿acceptance￿of￿the￿new￿technology￿based￿system
and￿completion￿of￿installation￿at￿the￿customer￿premises.￿As￿our￿systems￿are￿based￿largely￿on￿two￿product￿platforms￿that
permit￿incremental,￿modular￿upgrades,￿the￿introduction￿of￿genuinely￿"new"￿technology￿occurs￿infrequently,￿and￿in￿the
past￿15￿years,￿has￿occurred￿on￿only￿two￿occasions:￿1999￿(TWINSCAN)￿and￿2010￿(EUV).

We￿have￿no￿significant￿repurchase￿commitments￿in￿our￿general￿sales￿terms￿and￿conditions.￿From￿time￿to￿time￿we
repurchase￿systems￿that￿we￿have￿manufactured￿and￿sold￿and,￿following￿refurbishment,￿we￿resell￿those￿systems￿to
other￿customers.￿This￿repurchase￿decision￿is￿driven￿by￿market￿demand￿expressed￿by￿other￿customers￿and￿not￿by
explicit￿or￿implicit￿contractual￿arrangements￿relating￿to￿the￿initial￿sale.￿We￿consider￿reasonable￿offers￿from￿any￿vendor,
including￿customers,￿to￿repurchase￿used￿systems￿so￿that￿we￿can￿refurbish,￿resell,￿and￿install￿these￿systems￿as￿part
of￿our￿normal￿business￿operations.￿Once￿repurchased,￿the￿repurchase￿price￿of￿the￿used￿system￿is￿recorded￿in￿work-
in-process￿inventory￿during￿the￿period￿it￿is￿being￿refurbished,￿following￿which￿the￿refurbished￿system￿is￿reflected￿in
finished￿products￿inventory￿until￿it￿is￿sold￿to￿the￿customer.￿As￿of￿December￿31,￿2013￿and￿2012,￿ASML￿had￿no￿repurchase
commitments.

We￿offer￿customers￿discounts￿in￿the￿normal￿course￿of￿sales￿negotiations.￿These￿discounts￿are￿directly￿deducted￿from￿the
gross￿sales￿price￿at￿the￿moment￿of￿revenue￿recognition.￿In￿addition,￿we￿offer￿volume￿discounts￿to￿customers.￿In￿some
instances￿these￿volume￿discounts￿can￿be￿used￿to￿purchase￿field￿options￿(system￿enhancements).￿The￿related￿amount
is￿recorded￿as￿a￿reduction￿in￿net￿sales￿at￿time￿of￿shipment.￿From￿time￿to￿time,￿we￿offer￿free￿or￿discounted￿products￿or
services￿(award￿credits)￿to￿our￿customers￿as￿part￿of￿a￿volume￿purchase￿agreement.￿The￿sales￿transaction￿that￿gives￿rise
to￿these￿award￿credits￿is￿accounted￿for￿as￿a￿multiple￿element￿sales￿transaction￿as￿the￿agreements￿involve￿the￿delivery
of￿multiple￿products.￿The￿consideration￿received￿from￿the￿sales￿transaction￿is￿allocated￿between￿the￿award￿credits￿and
the￿other￿elements￿of￿the￿sales￿transaction.￿The￿consideration￿allocated￿to￿the￿award￿credits￿is￿recognized￿as￿deferred
revenue￿until￿award￿credits￿are￿delivered￿to￿the￿customer.￿The￿amount￿allocable￿to￿a￿delivered￿item￿is￿limited￿to￿the
amount￿that￿is￿not￿contingent￿upon￿the￿delivery￿of￿additional￿items￿or￿meeting￿other￿specified￿performance￿conditions
(the￿non-contingent￿amount).

Net￿sales￿are￿recognized￿excluding￿the￿taxes￿levied￿on￿sales￿(net￿basis).

ASML￿ANNUAL￿REPORT￿2013

26

In￿the￿event￿of￿expected￿losses￿on￿executory￿contracts,￿we￿recognize￿a￿liability￿for￿the￿amount￿that￿the￿cost￿of￿settling
the￿contract￿exceeds￿the￿amount￿of￿the￿contract￿price.￿When￿we￿satisfy￿these￿contracts,￿we￿derecognize￿the￿related
liability.

Multiple Element Arrangements

The￿main￿portion￿of￿our￿net￿sales￿is￿derived￿from￿contractual￿arrangements￿with￿our￿customers￿that￿have￿multiple
deliverables,￿which￿mainly￿include￿the￿sale￿of￿our￿systems,￿installation￿and￿training￿services￿and￿prepaid￿extended
and￿enhanced￿(optic)￿warranty￿contracts.￿As￿of￿January￿1,￿2011,￿we￿have￿adopted￿ASU￿2009-13,￿"Sales￿Arrangements
with￿Multiple￿Deliverables"￿which￿amended￿the￿guidance￿on￿arrangements￿with￿multiple￿deliverables￿in￿ASC￿605-25.
The￿amended￿standard￿changes￿the￿requirements￿for￿establishing￿separate￿units￿of￿accounting￿in￿a￿multiple￿element
arrangement￿and￿requires￿the￿allocation￿of￿arrangement￿consideration￿to￿each￿deliverable￿to￿be￿based￿on￿the￿relative
selling￿price.

Each￿element￿in￿the￿arrangement￿is￿accounted￿for￿as￿a￿separate￿unit￿of￿accounting￿provided￿the￿following￿criteria￿are
met:￿the￿delivered￿products￿or￿services￿have￿value￿to￿the￿customer￿on￿a￿standalone￿basis;￿and￿for￿an￿arrangement
that￿includes￿a￿general￿right￿of￿return￿relative￿to￿the￿delivered￿products￿or￿services,￿delivery￿or￿performance￿of￿the
undelivered￿product￿or￿service￿is￿considered￿probable￿and￿is￿substantially￿controlled￿by￿us.￿We￿consider￿a￿deliverable
to￿have￿stand-alone￿value￿if￿the￿product￿or￿service￿is￿sold￿separately￿by￿us￿or￿another￿vendor￿or￿could￿be￿resold￿by￿the
customer.￿Further,￿our￿sales￿arrangements￿do￿not￿include￿a￿general￿right￿of￿return￿relative￿to￿the￿delivered￿products.
Where￿the￿aforementioned￿criteria￿for￿a￿separate￿unit￿of￿accounting￿are￿not￿met,￿the￿deliverable￿is￿combined￿with￿the
undelivered￿element(s)￿and￿treated￿as￿a￿single￿unit￿of￿accounting￿for￿the￿purposes￿of￿allocation￿of￿the￿arrangement
consideration￿and￿revenue￿recognition.

The￿hierarchy￿of￿evidence￿to￿determine￿a￿selling￿price￿in￿ASC￿605-25￿is￿as￿follows:

• VSOE￿–￿the￿price￿at￿which￿we￿sell￿the￿element￿in￿a￿separate￿stand-alone￿transaction;
• TPE￿–￿evidence￿from￿us￿or￿other￿companies￿of￿the￿value￿of￿a￿largely￿interchangeable￿element￿in￿a￿transaction;
• BESP￿–￿our￿best￿estimate￿of￿the￿selling￿price￿of￿an￿element￿in￿the￿transaction.

To￿determine￿the￿selling￿price￿in￿multiple￿elements￿arrangements,￿we￿establish￿VSOE￿of￿the￿selling￿price￿for￿installation,
training￿services￿and￿prepaid￿extended￿and￿enhanced￿(optic)￿warranty￿contracts.￿VSOE￿for￿installation￿is￿determined
based￿on￿the￿prices￿that￿we￿charge￿for￿billable￿labor￿and￿materials￿consumed￿in￿comparable￿services￿(such￿as￿relocating
a￿system￿to￿another￿customer￿site).￿VSOE￿for￿prepaid￿extended￿and￿enhanced￿(optic)￿warranty￿contracts￿is￿determined
on￿the￿basis￿of￿similair￿products￿we￿sell￿on￿a￿standalone￿basis,￿such￿as￿full￿service￿contracts￿and￿billable￿lens￿swaps,
and￿which￿are￿subject￿to￿normal￿price￿negotiations.￿Revenue￿from￿installation￿and￿training￿services￿is￿recognized￿when
the￿services￿are￿completed.￿Revenue￿from￿prepaid￿extended￿and￿enhanced￿(optic)￿warranty￿contracts￿is￿recognized
over￿the￿term￿of￿the￿contract.￿When￿we￿are￿unable￿to￿establish￿the￿selling￿price￿using￿VSOE￿or￿TPE,￿we￿use￿BESP.￿The
objective￿of￿using￿estimated￿selling￿price-based￿methodology￿is￿to￿determine￿the￿price￿at￿which￿we￿would￿transact￿a
sale￿if￿the￿product￿or￿service￿were￿sold￿on￿a￿stand-alone￿basis.￿Accordingly,￿we￿determine￿BESP￿considering￿several
internal￿and￿external￿factors￿including,￿but￿not￿limited￿to,￿pricing￿practices,￿gross￿margin￿objectives,￿market￿conditions,
competitive￿environment,￿internal￿costs￿and￿geographies.￿We￿review￿selling￿prices￿annualy￿and￿maintain￿internal￿controls
over￿the￿establishment￿and￿updates￿of￿these￿estimates.

Business￿Combinations
Acquisitions￿of￿subsidiaries￿are￿included￿on￿the￿basis￿of￿the￿acquisition￿method.￿The￿cost￿of￿acquisition￿is￿measured
based￿on￿the￿consideration￿transferred￿at￿fair￿value,￿the￿fair￿value￿of￿identifiable￿assets￿distributed￿and￿the￿fair￿value￿of
liabilities￿incurred￿or￿assumed￿at￿the￿acquisition￿date￿(i.e.,￿the￿date￿at￿which￿we￿obtain￿control).￿The￿excess￿of￿the￿costs
of￿an￿acquired￿subsidiary￿over￿the￿net￿of￿the￿amounts￿assigned￿to￿identifiable￿assets￿acquired￿and￿liabilities￿incurred￿or
assumed,￿is￿capitalized￿as￿goodwill.￿Acquisition-related￿costs￿are￿expensed￿when￿incurred￿in￿the￿period￿they￿arise￿or￿the
service￿is￿received.

Evaluation￿of￿Long-lived￿Assets￿for￿Impairment
Long-lived￿assets￿include￿goodwill,￿other￿intangible￿assets￿and￿property,￿plant￿and￿equipment.

Goodwill￿is￿tested￿for￿impairment￿annually￿at￿the￿end￿of￿the￿third￿quarter￿and￿whenever￿events￿or￿changes￿in
circumstances￿indicate￿that￿the￿carrying￿amount￿of￿the￿goodwill￿may￿not￿be￿recoverable.￿These￿events￿or￿circumstances
could￿include￿a￿significant￿change￿in￿the￿business￿climate,￿legal￿factors,￿operating￿performance￿indicators,￿competition,
or￿sale￿or￿disposition￿of￿a￿significant￿portion￿of￿a￿reporting￿unit.￿The￿test￿is￿based￿on￿a￿two-step￿approach￿for￿each
reporting￿unit￿(being￿an￿operating￿segment￿or￿one￿level￿below￿an￿operating￿segment)￿in￿which￿goodwill￿has￿been
recorded.￿First,￿recoverability￿is￿tested￿by￿comparing￿the￿carrying￿amount￿of￿the￿reporting￿unit￿including￿goodwill

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27

with￿the￿fair￿value￿of￿the￿reporting￿unit.￿If￿the￿carrying￿amount￿of￿the￿reporting￿unit￿is￿higher￿than￿the￿fair￿value￿of￿the
reporting￿unit,￿the￿second￿step￿should￿be￿performed.￿Goodwill￿impairment￿is￿measured￿as￿the￿excess￿of￿the￿carrying
amount￿of￿the￿goodwill￿over￿its￿implied￿fair￿value.￿The￿implied￿fair￿value￿of￿goodwill￿is￿determined￿by￿calculating￿the￿fair
value￿of￿the￿various￿assets￿and￿liabilities￿included￿in￿the￿reporting￿unit￿in￿the￿same￿manner￿as￿goodwill￿is￿determined￿in￿a
business￿combination.

Other￿intangible￿assets￿and￿property,￿plant￿and￿equipment￿are￿reviewed￿for￿impairment￿whenever￿events￿or￿changes￿in
circumstances￿indicate￿that￿the￿carrying￿amount￿of￿those￿assets￿may￿not￿be￿recoverable.￿Other￿intangible￿assets￿and
property,￿plant￿and￿equipment￿are￿tested￿for￿impairment￿based￿on￿a￿two-step￿approach.￿First,￿the￿recoverability￿is￿tested
by￿comparing￿the￿carrying￿amount￿of￿the￿other￿intangible￿assets￿and￿property,￿plant￿and￿equipment￿with￿their￿fair￿value,
being￿the￿sum￿of￿the￿related￿undiscounted￿future￿cash￿flows.￿Second,￿if￿the￿carrying￿amount￿of￿the￿other￿intangible
assets￿and￿property,￿plant￿and￿equipment￿is￿higher￿than￿this￿fair￿value￿the￿assets￿are￿considered￿to￿be￿impaired.￿The
impairment￿to￿be￿recognized￿is￿measured￿by￿the￿amount￿by￿which￿the￿carrying￿amount￿of￿the￿assets￿exceeds￿the￿fair
value￿of￿the￿assets.

In￿determining￿the￿fair￿value￿of￿a￿long-lived￿asset￿(other￿than￿goodwill),￿we￿make￿estimates￿about￿future￿cash￿flows.
These￿estimates￿are￿based￿on￿our￿financial￿plan￿updated￿with￿the￿latest￿available￿projection￿of￿the￿semiconductor
market￿conditions￿and￿our￿sales￿and￿cost￿expectations,￿which￿are￿consistent￿with￿the￿plans￿and￿estimates￿that￿we￿use
to￿manage￿our￿business.￿We￿also￿make￿estimates￿and￿assumptions￿concerning￿WACC￿and￿future￿inflation￿rates.￿It￿is
possible￿that￿actual￿results￿may￿differ￿from￿our￿plans,￿estimates￿and￿assumptions,￿which￿may￿require￿impairment￿of
certain￿long-lived￿assets￿(other￿than￿goodwill).￿Future￿adverse￿changes￿in￿market￿conditions￿may￿also￿require￿impairment
of￿certain￿long-lived￿assets￿(other￿than￿goodwill),￿which￿could￿have￿a￿material￿adverse￿effect￿on￿our￿financial￿condition
and￿results￿of￿operations.

Inventories
Inventories,￿including￿spare￿parts￿and￿lenses,￿are￿stated￿at￿the￿lower￿of￿cost￿(first-in,￿first-out￿method)￿or￿market￿value.
Costs￿include￿net￿prices￿paid￿for￿materials￿purchased,￿charges￿for￿freight￿and￿customs￿duties,￿production￿labor￿cost
and￿factory￿overhead.￿Allowances￿are￿made￿for￿slow￿moving,￿obsolete￿or￿unsellable￿inventory￿and￿are￿reviewed￿on￿a
quarterly￿basis.￿Our￿methodology￿involves￿matching￿our￿on-hand￿and￿on-order￿inventory￿with￿our￿requirements￿based￿on
the￿expected￿demand￿and￿resulting￿manufacturing￿forecast.￿In￿determining￿inventory￿allowances,￿we￿evaluate￿inventory
in￿excess￿of￿our￿forecasted￿needs￿on￿both￿technological￿and￿economic￿criteria￿and￿make￿appropriate￿provisions￿to
reflect￿the￿risk￿of￿obsolescence.￿This￿methodology￿is￿significantly￿affected￿by￿our￿forecasted￿needs￿for￿inventory.￿If
actual￿requirements￿were￿to￿be￿lower￿than￿estimated,￿additional￿inventory￿allowances￿for￿excess￿or￿obsolete￿inventory
may￿be￿required,￿which￿could￿have￿a￿material￿adverse￿effect￿on￿our￿business,￿financial￿condition￿and￿results￿of
operations.

ASML￿ANNUAL￿REPORT￿2013

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Income￿Taxes
We￿operate￿in￿various￿tax￿jurisdictions￿in￿Europe,￿Asia,￿and￿the￿United￿States￿and￿must￿comply￿with￿the￿tax￿laws￿and
regulations￿of￿each￿of￿these￿jurisdictions.

We￿use￿the￿asset￿and￿liability￿method￿in￿accounting￿for￿income￿taxes.￿Under￿this￿method,￿deferred￿tax￿assets￿and
liabilities￿are￿recognized￿for￿tax￿consequences￿attributable￿to￿differences￿between￿the￿balance￿sheet￿carrying￿amounts
of￿existing￿assets￿and￿liabilities￿and￿their￿respective￿tax￿bases.￿Furthermore￿tax￿assets￿are￿recognized￿for￿the￿tax￿effect
of￿incurred￿net￿operating￿losses.￿If￿it￿is￿more￿likely￿than￿not￿that￿the￿carrying￿amounts￿of￿deferred￿tax￿assets￿will￿not￿be
realized,￿a￿valuation￿allowance￿is￿recorded￿to￿reduce￿the￿carrying￿amounts￿of￿those￿assets.

We￿recognize￿liabilities￿for￿uncertain￿tax￿positions￿based￿on￿a￿two-step￿process.￿The￿first￿step￿is￿to￿evaluate￿the￿tax
position￿for￿recognition￿by￿determining￿if￿the￿weight￿of￿available￿evidence￿indicates￿that￿it￿is￿more￿likely￿than￿not￿that
the￿position￿will￿be￿sustained￿on￿audit,￿including￿resolution￿of￿related￿appeals￿or￿litigation￿processes,￿if￿any.￿The￿second
step￿is￿to￿measure￿the￿tax￿benefit￿as￿the￿largest￿amount￿that￿is￿more￿than￿50￿percent￿likely￿of￿being￿realized￿upon
settlement.￿While￿we￿believe￿we￿have￿appropriate￿support￿for￿the￿positions￿taken￿on￿our￿tax￿returns,￿we￿regularly￿assess
the￿potential￿outcomes￿of￿examinations￿by￿tax￿authorities￿in￿determining￿the￿adequacy￿of￿our￿provision￿for￿income￿taxes,
and￿adjust￿the￿income￿tax￿provision,￿income￿taxes￿payable￿and￿deferred￿taxes￿in￿the￿period￿in￿which￿the￿facts￿that￿give
rise￿to￿a￿revision￿become￿known.

Results￿of￿Operations￿2013￿Compared￿with￿2012
The￿following￿discussion￿and￿analysis￿of￿Results￿of￿Operations￿should￿be￿viewed￿in￿the￿context￿of￿the￿risks￿that￿may
interfere￿with￿our￿business￿objectives,￿described￿in￿Item￿3.D.￿"Risk￿Factors".

Set￿out￿below￿our￿Consolidated￿Statements￿of￿Operations￿data￿for￿the￿years￿ended￿December￿31,￿2013￿and￿2012:

Year ended December 31
(in￿millions)

Total￿net￿sales
Cost￿of￿sales
Gross￿profit
Other￿income
Research￿and￿development￿costs
Selling,￿general￿and￿administrative￿costs
Income￿from￿operations
Interest￿and￿other,￿net
Income￿before￿income￿taxes
Provision￿for￿income￿taxes
Net￿income

2013
EUR

5,245.3
(3,068.1)
2,177.2
64.4
(882.0)
(311.7)
1,047.9
(24.4)
1,023.5
(8.0)
1,015.5

2012
EUR

4,731.5
(2,726.3)
2,005.2
-
(589.1)
(259.3)
1,156.8
(6.2)
1,150.6
(4.3)
1,146.3

Set￿out￿below￿are￿our￿Consolidated￿Statements￿of￿Operations￿data￿for￿the￿years￿ended￿December￿31,￿2013￿and￿2012
expressed￿as￿a￿percentage￿of￿our￿total￿net￿sales:

Year ended December 31

Total￿net￿sales
Cost￿of￿sales
Gross￿profit
Other￿income
Research￿and￿development￿costs
Selling,￿general￿and￿administrative￿costs
Income￿from￿operations
Interest￿and￿other,￿net
Income￿before￿income￿taxes
Provision￿for￿income￿taxes
Net￿income

2013
%

100.0
(58.5)
41.5
1.2
(16.8)
(5.9)
20.0
(0.5)
19.5
(0.1)
19.4

2012
%

100.0
(57.6)
42.4
-
(12.5)
(5.5)
24.4
(0.1)
24.3
(0.1)
24.2

ASML￿ANNUAL￿REPORT￿2013

29

Net Sales and Gross Profit
The￿following￿table￿shows￿a￿summary￿of￿net￿sales,￿units￿sold,￿gross￿profit￿and￿ASP￿data￿for￿the￿years￿ended￿December
31,￿2013￿and￿2012:

Year ended December 31
(in millions EUR, unless otherwise indicated)
Net￿sales
Net￿system￿sales
Net￿service￿and￿field￿option￿sales
Total￿sales￿of￿systems￿(in￿units)
Total￿sales￿of￿new￿systems￿(in￿units)
Total￿sales￿of￿used￿systems￿(in￿units)
Gross￿profit￿as￿a￿percentage￿of￿net￿sales
ASP￿of￿system￿sales
ASP￿of￿new￿system￿sales
ASP￿of￿used￿system￿sales

2013

2012

5,245.3
3,993.1
1,252.2
157
142
15
41.5
25.4
27.4
6.9

4,731.5
3,801.6
929.9
170
146
24
42.4
22.4
24.8
7.6

Net￿sales￿increased￿by￿EUR￿513.8￿million,￿or￿10.9￿percent,￿to￿EUR￿5,245.3￿million￿in￿2013￿from￿EUR￿4,731.5￿million￿in
2012,￿mainly￿driven￿by￿the￿increase￿in￿net￿service￿and￿field￿option￿sales￿of￿EUR￿322.3￿million,￿or￿34.7￿percent￿to￿EUR
1,252.2￿million￿in￿2013￿from￿EUR￿929.9￿million￿in￿2012.￿The￿increase￿in￿net￿service￿and￿field￿option￿sales￿is￿mainly
caused￿by￿the￿expansion￿of￿Holistic￿Lithography￿through￿increased￿sales￿of￿integrated￿metrology￿and￿feedback￿loop
technology￿and￿by￿OnPulse￿revenues￿as￿a￿result￿of￿the￿acquisition￿of￿Cymer.

The￿increase￿in￿net￿system￿sales￿of￿EUR￿191.5￿million,￿or￿5.0￿percent,￿to￿EUR￿3,993.1￿million￿in￿2013￿from￿EUR￿3,801.6
million￿in￿2012￿is￿mainly￿caused￿by￿an￿increased￿ASP￿which￿more￿than￿offsets￿the￿lower￿amount￿of￿systems￿sold.

The￿increase￿of￿the￿ASP￿of￿our￿systems￿sold￿can￿mainly￿be￿explained￿by￿the￿ASP￿of￿our￿new￿systems￿sold￿which
increased￿to￿EUR￿27.4￿million￿in￿2013￿from￿EUR￿24.8￿million￿in￿2012,￿which￿was￿the￿result￿of￿a￿shift￿in￿the￿mix￿of
systems￿sold￿towards￿more￿high-end￿system￿types,￿NXT:1960Bi￿and￿NXT:1970Ci￿and￿including￿one￿NXE:3300B.

Through￿2013,￿all￿of￿the￿top￿10￿chipmakers￿worldwide,￿in￿terms￿of￿semiconductor￿capital￿expenditure,￿were￿our
customers.￿In￿2013,￿recognized￿sales￿to￿our￿largest￿customer￿accounted￿for￿EUR￿2,058.6￿million,￿or￿39.2￿percent￿of￿our
net￿sales.￿In￿2012,￿recognized￿sales￿to￿our￿largest￿customer￿accounted￿for￿EUR￿1,236.1￿million,￿or￿26.1￿percent￿of￿our
net￿sales.

Gross￿profit￿increased￿by￿EUR￿172.0￿million￿to￿EUR￿2,177.2￿million￿or￿41.5￿percent￿of￿net￿sales￿in￿2013￿from￿EUR
2,005.2￿million￿or￿42.4￿percent￿of￿net￿sales￿in￿2012.￿Higher￿gross￿profit￿was￿mainly￿driven￿by￿the￿increased￿net￿system
sales.￿Gross￿profit￿as￿a￿percentage￿of￿net￿sales￿in￿2013￿decreased￿compared￿to￿2012,￿mainly￿due￿to￿a￿1.6￿percent
impact￿from￿non-cash￿purchase￿price￿accounting￿adjustments￿related￿to￿the￿Cymer￿acquisition.

Other Income
Other￿income￿consists￿of￿contributions￿for￿R&D￿programs￿under￿the￿NRE￿funding￿arrangements￿from￿Participating
Customers￿of￿the￿CCIP￿and￿amounted￿to￿EUR￿64.4￿million￿for￿2013￿(2012:nil).

Research and Development Costs 
R&D￿costs￿(net￿of￿credits￿and￿excluding￿contributions￿under￿the￿NRE￿funding￿agreements￿from￿Participating￿Customers
of￿the￿CCIP)￿increased￿by￿EUR￿292.9￿million,￿or￿49.7￿percent,￿to￿EUR￿882.0￿million￿in￿2013￿from￿EUR￿589.1￿million￿in
2012.￿R&D￿spending￿mainly￿increased￿due￿the￿additional￿investments￿in￿EUV￿source￿development￿as￿a￿result￿of￿the
acquisition￿of￿Cymer￿and￿further￿investments￿in￿our￿other￿strategic￿programs￿(Immersion￿and￿holistic￿lithography).

Selling, General and Administrative Costs
SG&A￿costs￿increased￿by￿EUR￿52.4￿million,￿or￿20.2￿percent,￿to￿EUR￿311.7￿million￿in￿2013,￿from￿EUR￿259.3￿million￿in
2012.￿The￿increase￿was￿mainly￿driven￿by￿the￿acquisition￿and￿subsequent￿integration￿of￿Cymer￿and￿incurred￿restructuring
expenses.

Profitability
Our￿target￿is￿to￿achieve￿annual￿income￿from￿operations￿as￿percentage￿of￿net￿sales￿of￿greater￿than￿20￿percent.￿However
in￿exceptional￿circumstances,￿as￿evidenced￿by￿the￿financial￿and￿economic￿crisis￿in￿2009,￿we￿could￿see￿periods￿with
income￿from￿operations￿that￿are￿substantially￿below￿our￿minimum￿target￿level.

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Interest and Other, Net
Interest￿and￿other,￿net￿increased￿by￿EUR￿18.2￿million￿to￿EUR￿24.4￿million￿expense￿in￿2013￿from￿EUR￿6.2￿million￿expense
in￿2012.￿This￿increase￿is￿mainly￿explained￿by￿the￿loss￿on￿the￿partial￿extinguishment￿of￿our￿EUR￿600￿million￿5.75￿percent
senior￿notes￿due￿2017￿and￿a￿lower￿yield￿generated￿on￿our￿cash￿and￿cash￿equivalents￿and￿short-term￿investments.

Income Taxes
The￿effective￿tax￿rate￿increased￿to￿0.8￿percent￿of￿income￿before￿income￿taxes￿in￿2013￿compared￿to￿0.4￿percent￿in
2012.￿In￿2013,￿the￿effective￿tax￿rate￿was￿impacted￿by￿the￿settlement￿of￿the￿favorable￿pre-existing￿relationships￿between
Cymer￿and￿ASML.￿This￿settlement￿gain￿is￿not￿recognized￿for￿tax￿purposes￿and￿was,￿apart￿from￿the￿R&D￿tax￿incentives,
the￿major￿driver￿for￿the￿change￿in￿the￿effective￿tax￿rate￿in￿2013.￿In￿2012,￿the￿effective￿tax￿rate￿was￿amongst￿others
impacted￿by￿a￿one-time￿tax￿benefit￿resulting￿from￿successful￿conclusion￿of￿tax￿audits.￿The￿movement￿in￿the￿liability￿for
unrecognized￿tax￿benefits￿in￿2013￿is￿considered￿to￿be￿limited￿compared￿to￿2012.

Net Income
Net￿income￿in￿2013￿amounted￿to￿EUR￿1,015.5￿million,￿or￿19.4￿percent￿of￿net￿sales,￿representing￿EUR￿2.36￿basic￿net
income￿per￿ordinary￿share,￿compared￿with￿net￿income￿in￿2012￿of￿EUR￿1,146.3￿million,￿or￿24.2￿percent￿of￿net￿sales,
representing￿EUR￿2.70￿basic￿net￿income￿per￿ordinary￿share.

Results￿of￿Operations￿2012￿Compared￿with￿2011
The￿following￿discussion￿and￿analysis￿of￿Results￿of￿Operations￿should￿be￿viewed￿in￿the￿context￿of￿the￿risks￿that￿may
interfere￿with￿our￿business￿objectives,￿described￿in￿Item￿3.D.￿"Risk￿Factors".

Set￿out￿below￿our￿Consolidated￿Statements￿of￿Operations￿data￿for￿the￿years￿ended￿December￿31,￿2012￿and￿2011:

Year ended December 31
(in￿millions)

Total￿net￿sales
Cost￿of￿sales
Gross￿profit
Research￿and￿development￿costs
Selling,￿general￿and￿administrative￿costs
Income￿from￿operations
Interest￿and￿other,￿net
Income￿before￿income￿taxes
Provision￿for￿income￿taxes
Net￿income

2012
EUR

4,731.5
(2,726.3)
2,005.2
(589.1)
(259.3)
1,156.8
(6.2)
1,150.6
(4.3)
1,146.3

2011
EUR

5,651.0
(3,201.6)
2,449.4
(590.3)
(217.9)
1,641.2
7.4
1,648.6
(181.6)
1,467.0

Set￿out￿below￿are￿our￿Consolidated￿Statements￿of￿Operations￿data￿for￿the￿years￿ended￿December￿31,￿2012￿and￿2011
expressed￿as￿a￿percentage￿of￿our￿total￿net￿sales:

Year ended December 31

Total￿net￿sales
Cost￿of￿sales
Gross￿profit
Research￿and￿development￿costs
Selling,￿general￿and￿administrative￿costs
Income￿from￿operations
Interest￿and￿other,￿net
Income￿before￿income￿taxes
Provision￿for￿income￿taxes
Net￿income

2012
%

100.0
(57.6)
42.4
(12.5)
(5.5)
24.4
(0.1)
24.3
(0.1)
24.2

2011
%

100.0
(56.7)
43.3
(10.4)
(3.9)
29.0
0.2
29.2
(3.2)
26.0

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Net Sales and Gross Profit
The￿following￿table￿shows￿a￿summary￿of￿net￿sales,￿units￿sold,￿gross￿profit￿and￿ASP￿data￿for￿the￿years￿ended￿December
31,￿2012￿and￿2011:

Year ended December 31
(in millions EUR, unless otherwise indicated)
Net￿sales
Net￿system￿sales
Net￿service￿and￿field￿option￿sales
Total￿sales￿of￿systems￿(in￿units)
Total￿sales￿of￿new￿systems￿(in￿units)
Total￿sales￿of￿used￿systems￿(in￿units)
Gross￿profit￿as￿a￿percentage￿of￿net￿sales
ASP￿of￿system￿sales
ASP￿of￿new￿system￿sales
ASP￿of￿used￿system￿sales

2012

2011

4,731.5
3,801.6
929.9
170
146
24
42.4
22.4
24.8
7.6

5,651.0
4,883.9
767.1
222
195
27
43.3
22.0
24.5
3.8

Net￿sales￿decreased￿by￿EUR￿919.5￿million,￿or￿16.3￿percent,￿to￿EUR￿4,731.5￿million￿in￿2012￿from￿EUR￿5,651.0￿million
in￿2011.￿The￿decrease￿in￿net￿sales￿mainly￿resulted￿from￿a￿decrease￿in￿net￿system￿sales￿of￿EUR￿1,082.3￿million,￿or￿22.2
percent,￿to￿EUR￿3,801.6￿million￿in￿2012￿from￿EUR￿4,883.9￿million￿in￿2011,￿partly￿offset￿by￿an￿increase￿in￿net￿service￿and
field￿option￿sales￿of￿EUR￿162.8￿million￿or￿21.2￿percent￿to￿EUR￿929.9￿million￿in￿2012￿from￿EUR￿767.1￿million￿in￿2011,
mainly￿due￿the￿further￿expansion￿of￿Holistic￿Lithography,￿integrated￿metrology￿and￿feedback￿loops.￿The￿number￿of￿total
systems￿sold￿decreased￿by￿23.4￿percent￿to￿170￿systems￿in￿2012￿from￿222￿systems￿in￿2011,￿mainly￿caused￿by￿decreased
demand￿in￿Memory,￿as￿its￿major￿driver,￿the￿PC￿business￿shrunk￿compared￿to￿2011.￿During￿2012,￿the￿majority￿of￿the
system￿sales￿were￿generated￿from￿Logic.

The￿ASP￿of￿our￿new￿systems￿in￿2012￿EUR￿24.8￿million￿was￿in￿line￿with￿2011￿EUR￿24.5￿million.

From￿time￿to￿time,￿we￿repurchase￿systems￿that￿we￿have￿manufactured￿and￿sold￿and,￿following￿factory-rebuild￿or
refurbishment,￿resell￿those￿systems￿to￿other￿customers.￿This￿repurchase￿decision￿is￿mainly￿driven￿by￿market￿demand
for￿capacity￿expressed￿by￿other￿customers￿and￿not￿by￿explicit￿or￿implicit￿contractual￿arrangements￿relating￿to￿the
initial￿sale.￿The￿number￿of￿used￿systems￿sold￿in￿2012￿decreased￿to￿24￿from￿27￿in￿2011.￿The￿ASP￿of￿our￿used￿systems
increased￿by￿100.0￿percent￿to￿EUR￿7.6￿million￿in￿2012￿from￿EUR￿3.8￿million￿in￿2011,￿which￿was￿the￿result￿of￿a￿shift￿in￿the
mix￿of￿used￿systems￿sold￿toward￿more￿high-end￿system￿types.

Through￿2012,￿all￿of￿the￿top￿10￿chipmakers￿worldwide,￿in￿terms￿of￿semiconductor￿capital￿expenditure,￿were￿our
customers.￿In￿2012,￿recognized￿sales￿to￿our￿largest￿customer￿accounted￿for￿EUR￿1,236.1￿million,￿or￿26.1￿percent￿of￿our
net￿sales.￿In￿2011,￿recognized￿sales￿to￿our￿largest￿customer￿accounted￿for￿EUR￿1,311.7￿million,￿or￿23.2￿percent￿of￿our
net￿sales.

Gross￿profit￿decreased￿to￿EUR￿2,005.2￿million￿or￿42.4￿percent￿of￿net￿sales￿in￿2012￿from￿EUR￿2,449.4￿million￿or￿43.3
percent￿of￿net￿sales￿in￿2011.￿Lower￿gross￿profit￿was￿mainly￿driven￿by￿the￿decreased￿number￿of￿total￿systems￿sold.￿Gross
profit￿as￿a￿percentage￿of￿net￿sales￿in￿2012￿decreased￿compared￿to￿2011,￿mainly￿due￿to￿increased￿infrastructure￿and
manufacturing￿cost,￿driven￿primarily￿by￿EUV￿production,￿lower￿utilization￿of￿our￿production￿capacity￿and￿higher￿cost
incurred￿in￿relation￿to￿excess￿and￿obsolete￿inventory￿as￿result￿of￿technological￿developments￿and￿design￿changes.

Research and Development Costs
R&D￿costs￿(net￿of￿credits)￿in￿2012￿(EUR￿589.1￿million)￿were￿in￿line￿with￿2011￿(EUR￿590.3￿million).￿R&D￿spending￿remained
stable￿and￿mainly￿related￿to￿our￿strategic￿programs,￿in￿particular￿EUV,￿immersion￿and￿holistic￿lithography.

Selling, General and Administrative Costs
SG&A￿costs￿increased￿by￿EUR￿41.4￿million,￿or￿19.0￿percent,￿to￿EUR￿259.3￿million￿in￿2012,￿or￿5.5￿percent￿of￿net￿sales,
from￿EUR￿217.9￿million￿in￿2011,￿or￿3.9￿percent￿of￿net￿sales.￿The￿increase￿was￿mainly￿driven￿by￿transaction￿costs￿incurred
of￿EUR￿26.1￿million￿related￿to￿the￿CCIP￿and￿transaction￿costs￿related￿to￿the￿proposed￿acquisition￿of￿Cymer￿and￿costs￿to
implement￿and￿support￿IT￿solutions￿of￿EUR￿10.2￿million.

Interest and Other, Net
Interest￿and￿other,￿net￿decrease￿by￿EUR￿13.6￿million￿to￿EUR￿6.2￿million￿expense￿in￿2012￿from￿EUR￿7.4￿million￿income￿in
2011.￿Interest￿income￿relates￿to￿interest￿earned￿on￿our￿cash￿and￿cash￿equivalents￿and￿short-term￿investments;￿interest
income￿declined￿in￿2012￿due￿to￿a￿lower￿yield￿earned￿on￿cash￿and￿cash￿equivalents￿and￿short-term￿investments,￿and￿was
more￿than￿offset￿by￿the￿interest￿expense￿on￿our￿outstanding￿debt.

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Income Taxes
The￿effective￿tax￿rate￿was￿0.4￿percent￿of￿income￿before￿income￿taxes￿in￿2012,￿compared￿with￿11.0￿percent￿of
income￿before￿income￿taxes￿in￿2011.￿The￿change￿in￿the￿effective￿tax￿rate￿is￿mainly￿due￿to￿a￿release￿of￿our￿liability￿for
unrecognized￿tax￿benefits￿of￿EUR￿92.5￿million￿after￿successful￿conclusion￿of￿tax￿audits￿in￿different￿jurisdictions￿which
almost￿completely￿offset￿the￿tax￿expenses,￿resulting￿in￿an￿income￿tax￿expense￿of￿EUR￿4.3￿million￿(2011:￿EUR￿181.6
million).

Foreign￿Exchange￿Management
See￿Item￿3.D.￿"Risk￿Factors￿-￿Fluctuations￿in￿Foreign￿Exchange￿Rates￿Could￿Harm￿Our￿Results￿of￿Operations",￿Item￿11
"Quantitative￿and￿Qualitative￿Disclosures￿About￿Market￿Risk",￿Note￿1￿and￿Note￿4￿to￿our￿Financial￿Statements.

B. Liquidity and Capital Resources
Our￿cash￿and￿cash￿equivalents￿increased￿to￿EUR￿2,330.7￿million￿as￿of￿December￿31,￿2013￿from￿EUR￿1,767.6￿million￿as
of￿December￿31,￿2012￿and￿our￿short-term￿investments￿decreased￿to￿EUR￿679.9￿million￿as￿of￿December￿31,￿2013￿from
EUR￿930.0￿million￿as￿of￿December￿31,￿2012.

We￿generated￿net￿cash￿from￿operating￿activities￿of￿EUR￿1,054.2￿million,￿EUR￿703.5￿million￿and￿EUR￿2,070.4￿million￿in
2013,￿2012￿and￿2011,￿respectively.￿Higher￿net￿cash￿provided￿by￿operating￿activities￿in￿2013￿compared￿to￿2012￿relates
to￿increased￿sales￿levels￿and￿a￿decrease￿of￿our￿working￿capital,￿mainly￿due￿to￿an￿increase￿in￿accounts￿payable.￿Lower
net￿cash￿provided￿by￿operating￿activities￿in￿2012￿compared￿to￿2011￿relates￿to￿decreased￿sales￿levels￿and￿decreased
accrued￿and￿other￿liabilities￿mainly￿as￿a￿result￿of￿lower￿amounts￿of￿EUV￿down￿payments￿received￿in￿2012.

We￿used￿EUR￿368.4￿million￿for￿investing￿activities￿in￿2013,￿EUR￿1,119.8￿million￿in￿2012￿and￿EUR￿300.9￿million￿in￿2011.
In￿2013,￿our￿investing￿activities￿mainly￿related￿to￿the￿cash￿consideration￿paid￿for￿the￿acquisition￿of￿Cymer￿of￿EUR￿443.7
million￿and￿the￿purchase￿of￿property,￿plant￿and￿equipment￿of￿EUR￿210.8￿million,￿mainly￿related￿to￿further￿expansion
of￿our￿EUV￿production￿facilities.￿This￿was￿to￿a￿large￿extent￿offset￿by￿the￿decrease￿of￿short-term￿investments,￿mainly
in￿Dutch￿Treasury￿Certificates￿and￿deposits￿with￿the￿Dutch￿government,￿of￿EUR￿290.2￿million.￿In￿2012,￿our￿investing
activities￿primarily￿related￿to￿our￿short-term￿investments￿in￿Dutch￿Treasury￿Certificates￿and￿deposits￿with￿the￿Dutch
government￿of￿EUR￿930.0￿million￿and￿purchases￿of￿property,￿plant￿and￿equipment￿of￿EUR￿171.9￿million.￿In￿2011,￿our
investing￿activities￿mainly￿related￿to￿machinery￿and￿equipment,￿EUV￿and￿NXT￿production￿facilities￿in￿Veldhoven,￿the
Netherlands,￿information￿technology￿and￿leasehold￿improvements￿to￿our￿facilities.

Net￿cash￿used￿in￿financing￿activities￿was￿EUR￿113.1￿million￿in￿2013,￿EUR￿545.6￿million￿in￿2012,￿and￿EUR￿991.6￿million
in￿2011.￿In￿September￿2013,￿we￿completed￿an￿offering￿of￿EUR￿750￿million￿3.375￿percent￿senior￿notes￿due￿2023￿with
interest￿payable￿annually￿on￿September￿19￿and,￿simultaneously,￿we￿repurchased￿a￿nominal￿amount￿of￿EUR￿361.8￿million
of￿our￿EUR￿600￿million￿5.75￿percent￿senior￿notes￿due￿2017￿in￿a￿tender￿offer.
In￿2013,￿net￿cash￿used￿in￿financing￿activities￿included￿the￿net￿cash￿proceeds￿of￿EUR￿740.4￿million￿from￿our￿notes
offering￿and￿net￿cash￿proceeds￿of￿EUR￿31.8￿million￿from￿the￿issuance￿of￿shares￿in￿connection￿with￿the￿exercise￿and
purchase￿of￿employee￿stock￿options,￿mainly￿offset￿by￿net￿cash￿outflows￿of￿EUR￿368.3￿million￿for￿our￿notes￿tender￿offer
and￿unwinding￿of￿related￿interest￿rate￿swaps,￿EUR￿300.0￿million￿for￿our￿regular￿share￿buyback￿program￿and￿EUR￿216.1
million￿for￿our￿annual￿dividend￿payment.￿In￿2012,￿net￿cash￿used￿in￿financing￿activities￿includes￿the￿net￿cash￿outflow￿of
EUR￿3,728.3￿million￿for￿the￿Synthetic￿Share￿Buyback,￿EUR￿535.4￿million￿for￿our￿regular￿share￿buyback￿programs￿and
EUR￿188.9￿million￿for￿our￿annual￿dividend￿payment,￿to￿a￿large￿extent￿offset￿by￿the￿proceeds￿of￿EUR￿3,853.9￿million
from￿issuance￿of￿shares￿under￿the￿CCIP￿and￿EUR￿53.8￿million￿net￿proceeds￿from￿issuance￿of￿shares￿in￿connection￿with
the￿exercise￿and￿purchase￿of￿employee￿stock￿options.￿In￿2011,￿net￿cash￿used￿in￿financing￿activities￿included￿the￿cash
outflow￿of￿EUR￿700.5￿million￿used￿in￿our￿regular￿share￿buyback￿program,￿our￿annual￿dividend￿payment￿of￿EUR￿172.6
million￿and￿a￿repayment￿of￿deposits￿from￿our￿customers￿of￿EUR￿150.0￿million,￿partly￿offset￿by￿the￿net￿proceeds￿from
issuance￿of￿shares￿in￿connection￿with￿the￿exercise￿and￿purchase￿of￿employee￿stock￿options￿of￿EUR￿34.1￿million.

Our￿principal￿sources￿of￿liquidity￿consist￿of￿cash￿flows￿from￿operations,￿cash￿and￿cash￿equivalents￿as￿of￿December￿31,
2013￿of￿EUR￿2,330.7￿million,￿short-term￿investments￿as￿of￿December￿31,￿2013￿of￿EUR￿679.9￿million￿and￿available￿credit
facilities￿as￿of￿December￿31,￿2013￿of￿EUR￿700.0￿million.￿In￿addition,￿we￿may￿from￿time￿to￿time￿raise￿additional￿capital￿in
debt￿and￿equity￿markets.￿Our￿goal￿is￿to￿remain￿an￿investment￿grade￿rated￿company￿and￿maintain￿a￿capital￿structure￿that
supports￿this.

We￿invest￿our￿cash￿and￿cash￿equivalents￿and￿short-term￿investments￿in￿short-term￿deposits￿with￿financial￿institutions
that￿have￿good￿credit￿ratings￿and￿the￿Dutch￿government,￿in￿Dutch￿Treasury￿Certificates￿and￿in￿AAAm-rated￿money
market￿funds￿that￿invest￿in￿high-rated￿short-term￿debt￿securities￿of￿financial￿institutions￿and￿governments.￿Our
investments￿are￿predominantly￿denominated￿in￿euros￿and￿partly￿in￿U.S.￿dollars.

ASML￿ANNUAL￿REPORT￿2013

33

Our￿available￿credit￿facility￿consists￿of￿an￿EUR￿700.0￿million￿committed￿revolving￿credit￿facility￿from￿a￿group￿of￿banks
that￿will￿mature￿in￿2018.￿The￿credit￿facility￿contains￿a￿restrictive￿covenant￿that￿requires￿us￿to￿maintain￿a￿minimum
committed￿capital￿to￿net￿total￿assets￿ratio￿of￿40.0￿percent￿calculated￿in￿accordance￿with￿contractually￿agreed
definitions.￿At￿the￿end￿of￿2013,￿we￿were￿in￿compliance￿with￿the￿covenant.￿Outstanding￿amounts￿under￿this￿credit
facility￿will￿bear￿interest￿at￿EURIBOR￿or￿LIBOR￿plus￿a￿margin￿that￿depends￿on￿our￿liquidity￿position.￿No￿amounts￿were
outstanding￿under￿the￿credit￿facility￿as￿of￿the￿end￿of￿2013.

We￿have￿repayment￿obligations￿in￿2017,￿amounting￿to￿EUR￿238.2￿million￿and￿in￿2023,￿amounting￿to￿EUR￿750.0￿million,
both￿relating￿to￿our￿Eurobonds.

ASML￿seeks￿to￿ensure￿that￿cash￿generated￿from￿operations,￿together￿with￿the￿liquidity￿provided￿by￿existing￿cash
and￿cash￿equivalents￿and￿short-term￿investments￿and￿its￿borrowing￿capability,￿will￿be￿sufficient￿to￿satisfy￿its￿liquidity
requirements￿throughout￿every￿phase￿of￿the￿industry￿cycles.

Our￿liquidity￿needs￿are￿affected￿by￿many￿factors,￿some￿of￿which￿are￿based￿on￿the￿normal￿on-going￿operations￿of￿the
business,￿and￿others￿that￿relate￿to￿the￿uncertainties￿of￿the￿global￿economy￿and￿the￿semiconductor￿industry.￿Although
our￿cash￿requirements￿fluctuate￿based￿on￿the￿timing￿and￿extent￿of￿these￿factors,￿we￿believe￿that￿cash￿generated￿from
operations,￿together￿with￿the￿liquidity￿provided￿by￿existing￿cash￿and￿cash￿equivalents￿and￿short-term￿investments￿and
our￿borrowing￿capability￿are￿sufficient￿to￿satisfy￿our￿current￿requirements,￿including￿our￿expected￿capital￿expenditures￿in
2014.￿We￿intend￿to￿return￿cash￿to￿our￿shareholders￿on￿a￿regular￿basis￿in￿the￿form￿of￿dividend￿payments￿and,￿subject￿to
our￿actual￿and￿anticipated￿liquidity￿requirements￿and￿other￿relevant￿factors,￿share￿buybacks￿or￿capital￿repayment.

See￿Notes￿4,￿5,￿15,￿16,￿26￿and￿27￿to￿our￿Financial￿Statements￿for￿further￿reference.

C. Research and Development, Patents and Licenses, etc.
Research￿and￿Development
See￿Item￿4.B.￿"Business￿Overview￿-￿Research￿and￿Development"￿and￿Item￿5.A.￿"Operating￿Results￿-￿Results￿of
Operations".

Intellectual￿Property￿Matters
See￿Item￿3.D.￿"Risk￿Factors￿-￿Failure￿to￿Adequately￿Protect￿the￿Intellectual￿Property￿Rights￿Upon￿Which￿We￿depend
Could￿Harm￿Our￿Business"￿and￿"Risk￿Factors￿-￿Defending￿Against￿Intellectual￿Property￿Claims￿by￿Others￿Could￿Harm
Our￿Business"￿and￿Item￿4.B.￿"Business￿Overview￿-￿Intellectual￿Property".

D. Trend Information
In￿2013,￿our￿business￿was￿supported￿by￿continuing￿momentum￿in￿the￿Logic￿segment￿with￿customers￿starting￿to￿add
capacity￿at￿the￿20nm￿node,￿driven￿by￿the￿mobile￿applications￿market.￿The￿memory￿segment￿continued￿to￿pick￿up￿in￿light
of￿tight￿mobile￿DRAM￿capacity.￿NAND￿memory￿bit￿demand￿is￿on￿a￿steady￿growth￿path￿with￿a￿stable￿market￿outlook,
underpinning￿technology￿and￿capacity￿investments￿in￿2014.

The￿following￿table￿sets￿forth￿our￿systems￿backlog,￿excluding￿EUV,￿as￿of￿December￿31,￿2013￿and￿2012.

Year ended December 31
(in millions EUR, unless otherwise indicated)

2013

2012

New￿systems￿backlog￿excluding￿EUV￿(in￿units)
Used￿systems￿backlog￿excluding￿EUV￿(in￿units)
Total￿systems￿backlog￿excluding￿EUV￿(in￿units)
Value￿of￿new￿systems￿backlog￿excluding￿EUV
Value￿of￿used￿systems￿backlog￿excluding￿EUV
Total￿value￿of￿systems￿backlog￿excluding￿EUV
ASP￿of￿new￿systems￿backlog￿excluding￿EUV
ASP￿of￿used￿systems￿backlog￿excluding￿EUV
ASP￿of￿total￿systems￿backlog￿excluding￿EUV

46
10
56
1,906.2
47.1
1,953.3
41.4
4.7
34.9

40
6
46
1,190.1
24.0
1,214.1
29.8
4.0
26.4

Our￿systems￿backlog￿includes￿only￿orders￿for￿which￿written￿authorizations￿have￿been￿accepted￿and￿system￿shipment
and￿revenue￿recognition￿dates￿within￿12￿months￿have￿been￿assigned.￿Historically,￿orders￿have￿been￿subject￿to
cancellation￿or￿delay￿by￿the￿customer.￿Due￿to￿possible￿customer￿changes￿in￿delivery￿schedules￿and￿to￿cancellation
of￿orders,￿our￿systems￿backlog￿at￿any￿particular￿date￿is￿not￿necessarily￿indicative￿of￿actual￿sales￿for￿any￿succeeding
period.

ASML￿ANNUAL￿REPORT￿2013

34

For￿the￿first￿quarter￿of￿2014,￿we￿expect￿net￿sales￿of￿around￿EUR￿1.4￿billion,￿a￿gross￿margin￿of￿around￿42￿percent,￿R&D
costs￿of￿about￿EUR￿280￿million,￿other￿income￿of￿about￿EUR￿20￿million,￿which￿consists￿of￿contributions￿from￿participants
of￿the￿CCIP￿and￿SG&A￿costs￿of￿about￿EUR￿85￿million.

The￿trends￿discussed￿in￿this￿Item￿5.D.￿"Trend￿information"￿are￿subject￿to￿risks￿and￿uncertainties.￿See￿"Part￿I￿–￿Special
Note￿Regarding￿Forward￿Looking￿Statements"￿and￿item￿3.D.￿"Risk￿Factors".

E. Off-Balance Sheet Arrangements
We￿have￿various￿contractual￿obligations,￿some￿of￿which￿are￿required￿to￿be￿recognized￿as￿liabilities￿in￿our￿Financial
Statements,￿including￿long-￿and￿short-term￿debt.￿Other￿contractual￿obligations,￿namely￿operating￿lease￿commitments,
purchase￿obligations￿and￿guarantees,￿are￿generally￿not￿required￿to￿be￿recognized￿as￿liabilities￿on￿our￿balance￿sheet￿but
are￿required￿to￿be￿disclosed.

F. Tabular Disclosure of Contractual Obligations
Our￿contractual￿obligations￿as￿of￿December￿31,￿2013￿can￿be￿summarized￿as￿follows:

Payments due by period
(in￿thousands)

Total
EUR

1 year
EUR

Long-Term￿Debt￿Obligations,￿including￿interest￿expense1 1,341,380
74,946

Operating￿Lease￿Obligations

45,079
30,293
Purchase￿Obligations 2,012,913 1,894,455
580

74,069

Unrecognized￿Tax￿Benefits,￿including￿interest￿expense

2 year
EUR

44,952
21,543
85,548
945

3 year
EUR

44,907
14,081
16,223
7,680

4 year
EUR

275,640
4,803
13,772
26,105

5 year
EUR

54,155
2,539
2,382
785

After
5 years
EUR

876,647
1,687
533
37,974

Total Contractual Obligations 3,503,308 1,970,407

152,988

82,891

320,320

59,861

916,841

1

See￿Note￿15￿to￿our￿Financial￿Statements￿for￿the￿amounts￿excluding￿interest￿expense.

Long-term￿debt￿obligations￿mainly￿relate￿to￿interest￿payments￿and￿principal￿amounts￿of￿our￿Eurobonds.￿See￿Note￿15￿to
our￿Financial￿Statements.

Operating￿lease￿obligations￿include￿leases￿of￿equipment￿and￿facilities.￿Lease￿payments￿recognized￿as￿an￿expense
were￿EUR￿42.0￿million,￿EUR￿41.6￿million￿and￿EUR￿40.6￿million￿for￿the￿years￿ended￿December￿31,￿2013,￿2012￿and￿2011,
respectively.

Several￿operating￿leases￿for￿our￿buildings￿contain￿purchase￿options,￿exercisable￿at￿the￿end￿of￿the￿lease,￿and￿in￿some
cases,￿during￿the￿term￿of￿the￿lease.￿The￿amounts￿to￿be￿paid￿if￿ASML￿should￿exercise￿these￿purchase￿options￿at￿the￿end
of￿the￿lease￿as￿of￿December￿31,￿2013￿can￿be￿summarized￿as￿follows:

Purchase options due by period
(in￿thousands)
Purchase￿options

Total
EUR
13,983

1 year
EUR
-

2 year
EUR
-

3 year
EUR
13,983

4 year
EUR
-

5 year
EUR
-

After 5
years
EUR
-

Purchase￿obligations￿include￿purchase￿commitments￿with￿suppliers￿in￿the￿ordinary￿course￿of￿business.￿ASML￿expects
that￿it￿will￿honor￿these￿purchase￿obligations￿to￿fulfill￿future￿sales,￿in￿line￿with￿the￿timing￿of￿those￿future￿sales.￿The￿general
terms￿and￿conditions￿of￿the￿agreements￿relating￿to￿the￿major￿part￿of￿our￿purchase￿commitments￿as￿of￿December￿31,
2013￿contain￿clauses￿that￿enable￿us￿to￿delay￿or￿cancel￿delivery￿of￿ordered￿goods￿and￿services￿up￿to￿the￿dates￿specified
in￿the￿corresponding￿purchase￿contracts.￿These￿terms￿and￿conditions￿that￿we￿typically￿agree￿with￿our￿supply￿chain
partners￿gives￿us￿additional￿flexibility￿to￿adapt￿our￿purchase￿obligations￿to￿our￿requirements￿in￿light￿of￿the￿inherent
cyclicality￿of￿the￿semiconductor￿equipment￿industry￿in￿which￿we￿operate.￿We￿establish￿a￿provision￿for￿cancellation￿costs
when￿it￿is￿probable￿that￿the￿liability￿has￿been￿incurred￿and￿the￿amount￿of￿cancellation￿fees￿is￿reasonably￿estimable.

G. Safe Harbor
See￿Part￿I￿"Special￿Note￿Regarding￿Forward-Looking￿Statements".

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Item 6 Directors, Senior Management and Employees

A. Directors and Senior Management
The￿members￿of￿our￿Supervisory￿Board￿and￿our￿Board￿of￿Management￿are￿as￿follows:

Name
Arthur￿P.M.￿van￿der￿Poel1,2,3
Fritz￿W.￿Fröhlich1,2
Hendrika￿(Ieke)￿C.J.￿van￿den￿Burg4
OB￿Bilous2,3
Pauline￿F.M.￿van￿der￿Meer￿Mohr4
Wolfgang￿H.￿Ziebart3,4
Clara￿(Carla)￿M.S.￿Smits-Nusteling1
Douglas￿A.￿Grose2,3
Peter￿T.F.M.￿Wennink

Martin￿A.￿van￿den￿Brink

Frits￿J.￿van￿Hout

Frédéric￿J.M.￿Schneider-Maunoury

Wolfgang￿U.￿Nickl6

Title
Chairman￿of￿the￿Supervisory￿Board
Vice￿Chairman￿and￿Member￿of￿the￿Supervisory￿Board
Member￿of￿the￿Supervisory￿Board
Member￿of￿the￿Supervisory￿Board
Member￿of￿the￿Supervisory￿Board
Member￿of￿the￿Supervisory￿Board
Member￿of￿the￿Supervisory￿Board
Member￿of￿the￿Supervisory￿Board
President,￿Chief￿Executive￿Officer￿and￿member￿of￿the￿Board￿of
Management
President,￿Chief￿Technology￿Officer￿and￿member￿of￿the￿Board
of￿Management
Executive￿Vice￿President,￿CPO￿and￿member￿of￿the￿Board￿of
Management
Executive￿Vice￿President￿Operations￿and￿Order￿Fulfillment
Process￿and￿Member￿of￿the￿Board￿of￿Management
Executive￿Vice￿President,￿CFO￿and￿Member￿of￿the￿Board￿of
Management

Year of Birth
1948
1942
1952
1938
1960
1950
1966
1950
1957

Term Expires
2016
2014
2015
2014
2017
2017
2017
2017
N/A5

1957

1960

1961

1969

N/A5

2017

2014

2018

1 Member￿of￿the￿Audit￿Committee.
2 Member￿of￿the￿Selection￿and￿Nomination￿Committee.
3 Member￿of￿the￿Technology￿and￿Strategy￿Committee.
4 Member￿of￿the￿Remuneration￿Committee.
5

The￿appointment￿term￿will￿be￿changed￿from￿an￿indefinite￿term￿to￿a￿definite￿term￿of￿four￿years￿upon￿notification￿to￿the￿AGM,￿scheduled￿on￿April￿23,
2014.

6 Mr.￿Nickl's￿appointment￿to￿ASML's￿Board￿of￿Management￿is￿subject￿to￿the￿notification￿of￿the￿AGM,￿scheduled￿to￿be￿held￿on￿April￿23,￿2014.

Mmes.￿Van￿den￿Burg￿and￿Van￿der￿Meer￿Mohr￿and￿Messrs.￿Siegle,￿Westerburgen￿and￿Ziebart￿retired￿by￿rotation￿in￿2013.
Mr.￿Siegle￿and￿Mr.￿Westerburgen￿retired￿from￿the￿Supervisory￿Board￿per￿the￿AGM￿of￿April￿24,￿2013.￿In￿2013,￿Ms.￿Van￿den
Burg￿was￿reappointed￿for￿a￿maximum￿period￿of￿two￿years￿in￿line￿with￿the￿Supervisory￿Board's￿profile;￿Ms.￿Van￿der￿Meer
Mohr￿and￿Mr.￿Ziebart￿were￿reappointed￿for￿a￿maximum￿period￿of￿four￿years￿in￿line￿with￿the￿Supervisory￿Board's￿profile.
Ms.￿Smits-Nusteling￿and￿Mr.￿Grose￿were￿appointed￿as￿member￿of￿the￿Supervisory￿Board￿in￿2013￿for￿a￿maximum￿period
of￿four￿years.

Since￿2005,￿the￿Works￿Council￿of￿ASML￿Netherlands￿B.V.￿has￿an￿enhanced￿right￿to￿make￿recommendations￿for
nomination￿of￿one-third￿of￿the￿members￿of￿the￿Supervisory￿Board,￿which￿recommendations￿may￿be￿rejected￿by
the￿Supervisory￿Board￿in￿limited￿circumstances.￿See￿Item￿6.C.￿"Board￿Practices￿-￿Supervisory￿Board".￿At￿the￿2005
AGM,￿Ms.￿Van￿den￿Burg￿was￿appointed￿pursuant￿to￿this￿recommendation￿right,￿and￿at￿the￿2009￿AGM￿and￿the￿2013
AGM￿she￿was￿reappointed￿in￿accordance￿with￿this￿recommendation￿right.￿At￿the￿2009￿AGM,￿Ms.￿Van￿der￿Meer￿Mohr
was￿appointed￿pursuant￿to￿this￿recommendation￿right,￿and￿at￿the￿2013￿General￿Meeting￿of￿Shareholders￿she￿was
reappointed￿in￿accordance￿with￿this￿recommendation￿right.

There￿are￿no￿family￿relationships￿among￿the￿members￿of￿our￿Supervisory￿Board￿and￿Board￿of￿Management.

Director and Officer Biographies

Arthur P.M. van der Poel
Mr.￿Van￿der￿Poel￿was￿appointed￿to￿our￿Supervisory￿Board￿in￿March￿2004￿and￿was￿appointed￿as￿Chairman￿in￿2007.￿Until
2001,￿he￿was￿the￿CEO￿of￿Philips￿Semiconductors.￿Mr.￿Van￿der￿Poel￿is￿a￿former￿member￿of￿the￿Board￿of￿Management
(until￿April￿2003)￿and￿a￿former￿member￿of￿the￿Group￿Management￿Committee￿of￿Royal￿Philips￿Electronics￿N.V.￿Mr.
Van￿der￿Poel￿currently￿serves￿as￿a￿member￿of￿the￿Board￿of￿Directors￿of￿Gemalto￿Holding￿N.V.,￿as￿a￿member￿of￿the
Supervisory￿Board￿of￿Royal￿HaskoningDHV￿B.V.￿and￿as￿the￿chairman￿of￿the￿Supervisory￿Board￿of￿BDR￿Thermea.

Fritz W. Fröhlich
Mr.￿Fröhlich￿was￿appointed￿to￿our￿Supervisory￿Board￿in￿March￿2004.￿He￿is￿the￿former￿Deputy￿Chairman￿and￿CFO￿of￿Akzo
Nobel￿N.V.￿Mr.￿Fröhlich￿is￿the￿Chairman￿of￿the￿Supervisory￿Board￿of￿Randstad￿Holding￿N.V.￿Mr.￿Fröhlich￿also￿serves￿as￿a
member￿of￿the￿Supervisory￿Boards￿of￿Allianz￿Nederland￿N.V.￿and￿Rexel￿S.A.￿and￿as￿a￿member￿of￿the￿Board￿of￿Directors
of￿Prysmian￿Group.

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Hendrika (Ieke) C.J. van den Burg
Ms.￿Van￿den￿Burg￿was￿appointed￿to￿our￿Supervisory￿Board￿in￿March￿2005.￿Ms.￿Van￿den￿Burg￿was￿a￿member￿of￿the
European￿Parliament￿from￿1999￿until￿2009.￿She￿was￿a￿member￿of￿the￿Supervisory￿Board￿of￿APG￿Group￿N.V.￿until￿May
15,￿2013.￿Ms.￿Van￿den￿Burg￿was￿recently￿appointed￿for￿a￿new￿four-year￿mandate￿in￿the￿Dutch￿Monitoring￿Committee
Corporate￿Governance￿Code.￿She￿also￿serves￿as￿chairperson￿of￿the￿Monitoring￿Foundation￿Dutch￿Insurance￿Companies
(Stichting Toetsing Verzekeraars)￿and￿is￿a￿member￿of￿the￿Advisory￿Boards￿of￿the￿Dutch￿Data￿Protection￿Authority
(College Bescherming Persoonsgegevens)￿and￿Dutch￿National￿Register￿of￿Supervisory￿Directors￿(Nationaal Register
Commissarissen en Toezichthouders).￿Ms.￿Van￿den￿Burg￿is￿also￿a￿member￿of￿the￿Advisory￿Scientific￿Systemic￿Committee
European￿Risk￿Board￿(ECB￿Frankfurt)￿and￿as￿a￿member￿of￿the￿Advisory￿Council￿International￿Affairs￿Commission￿Human
Rights￿(Dutch￿Ministry￿Foreign￿Affairs).

OB Bilous
Mr.￿Bilous￿was￿appointed￿to￿our￿Supervisory￿Board￿in￿March￿2005.￿From￿1960￿until￿2000￿Mr.￿Bilous￿held￿various
management￿positions￿at￿IBM,￿including￿General￿Manager￿and￿Vice￿President￿Worldwide￿Manufacturing￿of
IBM’s￿Microelectronics￿Division.￿Mr.￿Bilous￿also￿served￿on￿the￿Boards￿of￿SMST,￿ALTIS￿Semiconductor,￿Dominion
Semiconductor￿and￿was￿chairman￿of￿the￿Board￿of￿Sematech￿from￿2000￿to￿2009.￿Mr.￿Bilous￿currently￿serves￿as￿Board
member￿of￿Nantero,￿Inc.

Pauline F.M. van der Meer Mohr
Ms.￿Van￿der￿Meer￿Mohr￿was￿appointed￿to￿our￿Supervisory￿Board￿in￿March￿2009.￿Since￿January￿1,￿2010,￿Ms.￿Van￿der
Meer￿Mohr￿serves￿as￿President￿of￿the￿Executive￿Board￿of￿the￿Erasmus￿University￿Rotterdam,￿the￿Netherlands.￿Prior
to￿2010￿she￿was￿managing￿partner￿of￿the￿Amstelbridge￿Group,￿Senior￿Executive￿Vice￿President￿at￿ABN￿AMRO￿Bank,
Head￿of￿Group￿Human￿Resources￿at￿TNT￿N.V.,￿and￿held￿several￿senior￿executive￿roles￿at￿the￿Royal/Dutch￿Shell￿Group
of￿Companies￿in￿various￿areas.￿Currently,￿Ms.￿Van￿der￿Meer￿Mohr￿is￿a￿member￿of￿the￿Supervisory￿Boards￿of￿Royal￿DSM
N.V.￿and￿Duisenberg￿School￿of￿Finance￿and￿chairperson￿of￿the￿Executive￿Board￿of￿the￿Fulbright￿Center.

Wolfgang H. Ziebart
Mr.￿Ziebart￿was￿appointed￿to￿our￿Supervisory￿Board￿in￿March￿2009.￿Mr.￿Ziebart￿is￿the￿Group￿Engineering￿Director￿of
Jaguar￿Land￿Rover￿Ltd.￿Until￿May￿2008,￿he￿was￿President￿and￿CEO￿of￿Infineon￿Technologies￿A.G.￿Before￿Infineon,￿Mr.
Ziebart￿was￿on￿the￿Boards￿of￿Management￿of￿car￿components￿manufacturer￿Continental￿A.G.￿and￿automobile￿producer
BMW￿A.G.￿Mr.￿Ziebart￿is￿the￿chairman￿of￿the￿Supervisory￿Board￿of￿Nordex￿S.E.

Carla M.S. Smits-Nusteling
Ms.￿Smits-Nusteling￿was￿appointed￿to￿our￿Supervisory￿Board￿in￿April￿2013.￿Ms.￿Smits-Nusteling￿was￿CFO￿and￿member
of￿the￿Board￿of￿Management￿of￿Royal￿KPN￿N.V.￿until￿2012,￿and￿also￿held￿several￿finance￿and￿business￿related￿positions
in￿Royal￿KPN￿N.V.￿and￿PostNL.￿Ms.￿Smits-Nusteling￿is￿a￿member￿of￿the￿Supervisory￿Board￿of￿Tele2￿AB.

Douglas A. Grose
Mr.￿Grose￿was￿appointed￿to￿our￿Supervisory￿Board￿in￿April￿2013.￿Mr.￿Grose￿was￿CEO￿of￿GlobalFoundries￿from￿its
inception￿in￿2009￿until￿2011￿and￿before￿that,￿Mr.￿Grose￿served￿as￿senior￿vice￿president￿of￿technology￿development,
manufacturing￿and￿supply￿chain￿for￿AMD.￿Prior￿to￿joining￿AMD￿in￿2007,￿Mr.￿Grose￿spent￿25￿years￿at￿IBM￿as￿general
manager￿of￿technology￿development￿and￿manufacturing￿for￿the￿systems￿and￿technology￿group.￿Currently,￿Mr.￿Grose￿is￿a
director￿of￿SBA￿Materials.

Peter T.F.M. Wennink
Mr.￿Wennink￿joined￿ASML￿on￿January￿1,￿1999￿and￿was￿appointed￿as￿Executive￿Vice￿President,￿CFO￿of￿ASML￿and
member￿of￿our￿Board￿of￿Management￿on￿July￿1,￿1999.￿He￿was￿appointed￿as￿President￿and￿CEO￿on￿July￿1,￿2013.￿Mr.
Wennink￿has￿an￿extensive￿background￿in￿finance￿and￿accounting.￿Prior￿to￿his￿employment￿with￿ASML,￿Mr.￿Wennink
worked￿as￿a￿partner￿at￿Deloitte￿Accountants,￿specializing￿in￿the￿high￿technology￿industry￿with￿an￿emphasis￿on￿the
semiconductor￿equipment￿industry.￿Mr.￿Wennink￿is￿a￿member￿of￿the￿Dutch￿Institute￿of￿Registered￿Accountants.￿Mr.
Wennink￿is￿currently￿a￿member￿of￿the￿Supervisory￿Board￿of￿Bank￿Insinger￿de￿Beaufort￿N.V.

Martin A. van den Brink
Mr.￿Van￿den￿Brink￿joined￿ASML￿when￿the￿company￿was￿founded￿in￿1984.￿He￿held￿several￿positions￿in￿engineering
and￿from￿1995￿he￿served￿as￿Vice￿President￿Technology￿and￿member￿of￿the￿Board￿of￿Management.￿Mr.￿Van￿den￿Brink
was￿appointed￿as￿Executive￿Vice￿President￿Product￿&￿Technology￿and￿member￿of￿the￿Board￿of￿Management￿in￿1999.
On￿July￿1,￿2013,￿Mr.￿Van￿den￿Brink￿was￿appointed￿as￿President￿and￿CTO.￿Mr.￿Van￿den￿Brink￿has￿earned￿a￿degree
in￿Electrical￿Engineering￿from￿HTS￿Arnhem￿(HAN￿University),￿and￿a￿degree￿in￿Physics￿(1984)￿from￿the￿University￿of
Twente,￿the￿Netherlands.￿In￿2012,￿he￿was￿awarded￿an￿honorary￿doctorate￿in￿physics￿by￿the￿University￿of￿Amsterdam,￿the
Netherlands.

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Frits J. van Hout
Mr.￿Van￿Hout￿was￿appointed￿as￿Executive￿Vice￿President￿and￿Chief￿Program￿Officer￿on￿July￿1,￿2013.￿Prior￿thereto￿he
served￿as￿Executive￿Vice￿President,￿CMO￿and￿Member￿of￿our￿Board￿of￿Management￿since￿2009.￿Mr.￿Van￿Hout￿was
previously￿an￿ASML￿employee￿from￿its￿founding￿in￿1984￿to￿1992,￿in￿various￿roles￿in￿engineering￿and￿sales.￿From￿1998￿to
2001,￿Mr.￿Van￿Hout￿served￿as￿CEO￿of￿the￿Beyeler￿Group,￿based￿in￿the￿Netherlands￿and￿Germany.￿After￿rejoining￿ASML
in￿2001,￿he￿served￿as￿Senior￿Vice￿President￿Customer￿Support￿and￿two￿Business￿Units.￿In￿2008,￿Mr.￿Van￿Hout￿was
appointed￿Executive￿Vice￿President￿Integral￿Efficiency.

Frédéric J.M. Schneider-Maunoury
Mr.￿Schneider-Maunoury￿joined￿ASML￿on￿December￿1,￿2009,￿as￿Executive￿Vice￿President￿and￿Chief￿Operations￿Officer
and￿was￿appointed￿to￿ASML’s￿Board￿of￿Management￿on￿March￿24,￿2010.￿Before￿joining￿ASML,￿Mr.￿Schneider-Maunoury
served￿as￿Vice￿President￿Thermal￿Products￿Manufacturing￿of￿the￿power￿generation￿and￿rail￿transport￿equipment￿group
ALSTOM.￿Previously,￿he￿ran￿the￿worldwide￿Hydro￿Business￿of￿ALSTOM￿as￿general￿manager.￿Before￿joining￿ALSTOM￿in
1996,￿Mr.￿Schneider-Maunoury￿held￿various￿positions￿at￿the￿French￿Ministry￿of￿Trade￿and￿Industry.

Wolfgang U. Nickl
Mr.￿Nickl￿joined￿ASML￿on￿December￿1,￿2013,￿as￿Executive￿Vice￿President￿and￿CFO.￿He￿will￿be￿appointed￿as￿member￿of
ASML's￿Board￿of￿Management￿upon￿the￿notification￿to￿the￿AGM,￿scheduled￿on￿April￿23,￿2014.￿Prior￿to￿joining￿ASML,
Mr.￿Nickl￿served￿as￿Executive￿Vice￿President￿and￿CFO￿at￿Western￿Digital￿Corporation,￿a￿U.S.-headquartered,￿NASDAQ-
listed￿developer￿and￿manufacturer￿of￿storage￿devices,￿where￿he￿held￿several￿financial￿and￿operational￿leadership￿roles
since￿joining￿Western￿Digital￿in￿1995.￿Before￿Western￿Digital,￿Mr.￿Nickl￿gained￿experience￿in￿finance￿and￿IT￿consulting.
He￿earned￿a￿BA￿in￿Business￿from￿the￿University￿of￿Cooperative￿Education￿in￿Stuttgart,￿Germany,￿and￿an￿MBA￿from￿the
University￿of￿Southern￿California’s￿Marshall￿School￿of￿Business￿in￿Los￿Angeles,￿United￿States.

B. Compensation
The￿information￿required￿by￿Item￿6.B.￿is￿incorporated￿by￿reference￿from￿pages￿16,￿17,￿18,￿19,￿21￿and￿22￿of￿ASML’s￿2013
Remuneration￿Report￿which￿is￿included￿as￿exhibit￿99.2￿on￿Form￿6-K￿furnished￿with￿the￿Commission￿on￿February￿12,
2014.

C. Board Practices

General

We￿endorse￿the￿importance￿of￿good￿corporate￿governance,￿in￿which￿independent￿supervision,￿accountability￿and
transparency￿are￿the￿most￿significant￿elements.￿Within￿the￿framework￿of￿corporate￿governance,￿it￿is￿important￿that
a￿relationship￿of￿trust￿exists￿between￿the￿Board￿of￿Management,￿the￿Supervisory￿Board,￿our￿employees￿and￿our
shareholders.

We￿pursue￿a￿policy￿of￿active￿communication￿with￿our￿shareholders.￿In￿addition￿to￿the￿exchange￿of￿ideas￿at￿the￿General
Meeting￿of￿Shareholders,￿other￿important￿forms￿of￿communication￿include￿the￿publication￿of￿our￿annual￿and￿quarterly
financial￿results￿as￿well￿as￿press￿releases￿and￿publications￿posted￿on￿our￿website.

Our￿corporate￿governance￿structure￿is￿intended￿to:
• Provide￿shareholders￿with￿regular,￿reliable,￿relevant￿and￿transparent￿information￿regarding￿our￿activities,￿structure,

financial￿condition,￿performance￿and￿other￿information,￿including￿information￿on￿our￿social,￿ethical￿and￿environmental
records￿and￿policies;

• Apply￿high-quality￿standards￿for￿disclosure,￿accounting￿and￿auditing;￿and
• Apply￿stringent￿rules￿with￿regard￿to￿insider￿securities￿trading.

Two-Tier Board Structure

ASML￿is￿incorporated￿under￿Dutch￿law￿and￿has￿a￿two-tier￿board￿structure.￿Responsibility￿for￿the￿management￿of￿ASML
lies￿with￿the￿Board￿of￿Management.￿Independent,￿non-executive￿members￿serve￿on￿the￿Supervisory￿Board,￿which
supervises￿and￿advises￿the￿members￿of￿the￿Board￿of￿Management￿in￿performing￿their￿management￿tasks.￿The￿Board
of￿Management￿has￿the￿duty￿to￿keep￿the￿Supervisory￿Board￿informed,￿consult￿with￿the￿Supervisory￿Board￿on￿important
matters￿and￿submit￿certain￿important￿decisions￿to￿the￿Supervisory￿Board￿for￿its￿approval.￿The￿Supervisory￿Board￿is
responsible￿for￿supervising,￿monitoring￿and￿advising￿the￿Board￿of￿Management￿on:￿(i)￿the￿achievement￿of￿ASML’s
objectives,￿(ii)￿the￿corporate￿strategy￿and￿management￿of￿risks￿inherent￿to￿ASML’s￿business￿activities,￿(iii)￿the￿structure
and￿operation￿of￿internal￿risk￿management￿and￿control￿systems,￿(iv)￿the￿financial￿reporting￿process￿and￿(v)￿compliance
with￿applicable￿legislation￿and￿regulations.

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Supervisory￿Board￿members￿are￿prohibited￿from￿serving￿as￿officers￿or￿employees￿of￿ASML,￿and￿members￿of￿the￿Board
of￿Management￿cannot￿serve￿on￿the￿Supervisory￿Board.

Board of Management

The￿Board￿of￿Management￿consists￿of￿at￿least￿two￿members￿or￿such￿larger￿number￿of￿members￿as￿determined￿by￿the
Supervisory￿Board.￿Members￿of￿the￿Board￿of￿Management￿are￿appointed￿by￿the￿Supervisory￿Board.￿The￿Supervisory
Board￿must￿notify￿the￿General￿Meeting￿of￿Shareholders￿of￿the￿intended￿appointment￿of￿a￿member￿of￿the￿Board￿of
Management.￿As￿a￿result￿of￿our￿compliance￿with￿the￿Dutch￿Corporate￿Governance￿Code,￿members￿of￿the￿Board￿of
Management￿that￿are￿initially￿appointed￿in￿2004￿or￿later￿shall￿be￿appointed￿for￿a￿maximum￿period￿of￿four￿years,￿but￿may
be￿re-appointed.￿Members￿of￿the￿Board￿of￿Management￿serve￿until￿the￿end￿of￿the￿term￿of￿their￿appointment,￿voluntary
retirement,￿or￿suspension￿or￿dismissal￿by￿the￿Supervisory￿Board.￿In￿the￿case￿of￿dismissal,￿the￿Supervisory￿Board￿must
first￿inform￿the￿General￿Meeting￿of￿Shareholders￿of￿the￿intended￿removal.

The￿Supervisory￿Board￿determines￿the￿remuneration￿of￿the￿individual￿members￿of￿the￿Board￿of￿Management,￿in￿line￿with
the￿remuneration￿policy￿adopted￿by￿the￿General￿Meeting￿of￿Shareholders,￿upon￿a￿proposal￿of￿the￿Supervisory￿Board.
ASML’s￿remuneration￿policy￿is￿included￿in￿the￿Remuneration￿Report.

For￿details￿of￿the￿terms￿of￿office￿of￿the￿current￿members￿of￿the￿Board￿of￿Management,￿see￿Item￿6.A￿"Directors￿and
Senior￿Management".￿Further￿information￿relating￿to￿the￿Board￿of￿Management￿required￿by￿Item￿6.C.￿is￿incorporated￿by
reference￿from￿pages￿16,￿17,￿18￿and￿19￿of￿ASML’s￿2013￿Remuneration￿Report￿which￿is￿included￿as￿exhibit￿99.2￿on￿Form
6-K,￿furnished￿with￿the￿Commission￿on￿February￿12,￿2014.

Supervisory Board

The￿Supervisory￿Board￿consists￿of￿at￿least￿three￿members￿or￿such￿larger￿number￿as￿determined￿by￿the￿Supervisory
Board.￿The￿Supervisory￿Board￿prepares￿a￿profile￿in￿relation￿to￿its￿size￿and￿composition;￿ASML's￿Supervisory￿Board
profile￿is￿posted￿on￿ASML’s￿website.

Members￿of￿the￿Supervisory￿Board￿are￿appointed￿by￿the￿General￿Meeting￿of￿Shareholders￿from￿nominations￿of￿the
Supervisory￿Board.￿Nominations￿must￿be￿reasoned￿and￿must￿be￿made￿available￿to￿the￿General￿Meeting￿of￿Shareholders
and￿the￿Works￿Council￿simultaneously.￿Before￿the￿Supervisory￿Board￿presents￿its￿nominations,￿both￿the￿General￿Meeting
of￿Shareholders￿and￿the￿Works￿Council￿may￿make￿recommendations￿(which￿the￿Supervisory￿Board￿may￿reject).￿In
addition,￿the￿Works￿Council￿has￿an￿enhanced￿right￿to￿make￿recommendations￿for￿nomination￿of￿at￿least￿one-third￿of
the￿members￿of￿the￿Supervisory￿Board,￿which￿recommendation￿may￿only￿be￿rejected￿by￿the￿Supervisory￿Board:￿(i)
if￿the￿relevant￿person￿is￿unsuitable￿or￿(ii)￿if￿the￿Supervisory￿Board￿would￿not￿be￿duly￿composed￿if￿the￿recommended
person￿were￿appointed￿as￿a￿Supervisory￿Board￿member.￿If￿no￿agreement￿can￿be￿reached￿between￿the￿Supervisory￿Board
and￿the￿Works￿Council￿on￿these￿recommendations,￿the￿Supervisory￿Board￿may￿request￿the￿Enterprise￿Chamber￿of￿the
Amsterdam￿Court￿to￿declare￿its￿objection￿legitimate.￿Any￿decision￿of￿the￿Enterprise￿Chamber￿on￿this￿matter￿is￿non-
appealable.

Nominations￿of￿the￿Supervisory￿Board￿may￿be￿rejected￿by￿the￿General￿Meeting￿of￿Shareholders￿by￿an￿absolute￿majority
of￿the￿votes￿representing￿at￿least￿one-third￿of￿the￿total￿outstanding￿capital.￿If￿the￿votes￿cast￿in￿favor￿of￿such￿resolution
do￿not￿represent￿at￿least￿one-third￿of￿the￿total￿outstanding￿capital,￿a￿new￿meeting￿can￿be￿convened￿at￿which￿the
nomination￿can￿be￿rejected￿by￿an￿absolute￿majority.￿If￿a￿nomination￿is￿rejected,￿the￿Supervisory￿Board￿must￿make￿a￿new
nomination.￿If￿a￿nomination￿is￿not￿rejected￿and￿the￿General￿Meeting￿of￿Shareholders￿does￿not￿appoint￿the￿nominated
person,￿the￿Supervisory￿Board￿will￿appoint￿the￿nominated￿person.

Members￿of￿the￿Supervisory￿Board￿serve￿for￿a￿maximum￿term￿of￿four￿years￿from￿the￿date￿of￿their￿appointment,￿or￿a
shorter￿period￿as￿set￿out￿in￿the￿rotation￿schedule￿as￿adopted￿by￿the￿Supervisory￿Board.￿They￿may￿be￿re-appointed,
provided￿that￿their￿entire￿term￿of￿office￿does￿not￿exceed￿twelve￿years.￿The￿General￿Meeting￿of￿Shareholders￿may,￿with
an￿absolute￿majority￿of￿the￿votes￿representing￿at￿least￿one-third￿of￿the￿total￿outstanding￿capital,￿dismiss￿the￿Supervisory
Board￿in￿its￿entirety￿for￿lack￿of￿confidence.￿In￿such￿event,￿the￿Enterprise￿Chamber￿of￿the￿Amsterdam￿Court￿shall￿appoint
one￿or￿more￿members￿of￿the￿Supervisory￿Board￿at￿the￿request￿of￿the￿Board￿of￿Management.

Upon￿the￿proposal￿of￿the￿Supervisory￿Board,￿the￿General￿Meeting￿of￿Shareholders￿determines￿the￿remuneration￿of￿the
members￿of￿the￿Supervisory￿Board.￿A￿member￿of￿the￿Supervisory￿Board￿may￿not￿be￿granted￿any￿shares￿or￿option￿rights
by￿way￿of￿remuneration.

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For￿details￿of￿the￿terms￿of￿office￿of￿the￿current￿members￿of￿the￿Supervisory￿Board,￿see￿Item￿6.A￿"Directors￿and￿Senior
Management".￿Further￿information￿relating￿to￿the￿Supervisory￿Board￿required￿by￿Item￿6.C.￿is￿incorporated￿by￿reference
from￿pages￿21￿and￿22￿of￿ASML’s￿2013￿Remuneration￿Report￿which￿is￿included￿as￿exhibit￿99.2￿on￿Form￿6-K,￿furnished
with￿the￿Commission￿on￿February￿12,￿2014.

Approval of Board of Management Decisions

The￿Board￿of￿Management￿requires￿prior￿approval￿of￿the￿General￿Meeting￿of￿Shareholders￿for￿resolutions￿concerning￿an
important￿change￿in￿the￿identity￿or￿character￿of￿ASML￿or￿its￿business,￿including:
• A￿transfer￿of￿all￿or￿substantially￿all￿of￿the￿business￿of￿ASML￿to￿a￿third￿party;
• Entering￿into￿or￿the￿termination￿of￿a￿long-term￿material￿joint￿venture￿between￿ASML￿and￿a￿third￿party;￿and
• An￿acquisition￿or￿divestment￿by￿ASML￿of￿an￿interest￿in￿the￿capital￿of￿a￿company￿with￿a￿value￿of￿at￿least￿one-third￿of

ASML’s￿assets￿(determined￿by￿reference￿to￿ASML’s￿most￿recently￿adopted￿Statutory￿Annual￿Report).

Rules of Procedure

The￿Board￿of￿Management￿and￿the￿Supervisory￿Board￿have￿adopted￿Rules￿of￿Procedure￿for￿each￿of￿the￿Board￿of
Management,￿Supervisory￿Board￿and￿the￿four￿Committees￿of￿the￿Supervisory￿Board.￿These￿Rules￿of￿Procedure￿are
posted￿on￿our￿website.

Directors and Officers Insurance and Indemnification

Members￿of￿the￿Board￿of￿Management￿and￿Supervisory￿Board,￿as￿well￿as￿certain￿senior￿management￿members,
are￿insured￿under￿ASML’s￿Directors￿and￿Officers￿Insurance￿Policy.￿Although￿the￿insurance￿policy￿provides￿for￿a
wide￿coverage,￿our￿directors￿and￿officers￿may￿incur￿uninsured￿liabilities.￿ASML￿has￿agreed￿to￿indemnify￿its￿Board￿of
Management￿and￿Supervisory￿Board￿against￿any￿claims￿arising￿in￿connection￿with￿their￿position￿as￿director￿and￿officer
of￿ASML,￿provided￿that￿such￿claim￿is￿not￿attributable￿to￿willful￿misconduct￿or￿intentional￿recklessness￿of￿such￿officer￿or
director.

Corporate Governance Developments

ASML￿continuously￿monitors￿and￿assesses￿applicable￿corporate￿governance￿rules,￿including￿recommendations￿and
initiatives￿regarding￿principles￿of￿corporate￿governance.￿These￿include￿rules￿that￿have￿been￿promulgated￿in￿the￿United
States￿both￿by￿NASDAQ￿and￿by￿the￿SEC.￿See￿also￿Item￿16.G.￿"Corporate￿Governance".

The￿Dutch￿Corporate￿Governance￿Code￿came￿into￿effect￿on￿January￿1,￿2004￿and￿was￿amended￿as￿of￿January￿1,￿2009.
Dutch￿listed￿companies￿are￿required￿to￿either￿comply￿with￿the￿principles￿and￿the￿best￿practice￿provisions￿of￿the￿Code,￿or
to￿explain￿on￿which￿points￿they￿deviate￿from￿these￿best￿practice￿provisions￿and￿why.

ASML￿reports￿on￿its￿compliance￿with￿the￿Dutch￿Corporate￿Governance￿Code￿in￿its￿Statutory￿Annual￿Report￿for￿the￿year
ended￿December￿31,￿2013.

Committees of ASML's Supervisory Board

While￿retaining￿overall￿responsibility,￿the￿Supervisory￿Board￿assigns￿certain￿of￿its￿tasks￿to￿its￿four￿committees:￿the￿Audit
Committee,￿the￿Remuneration￿Committee,￿the￿Selection￿and￿Nomination￿Committee￿and￿the￿Technology￿and￿Strategy
Committee.￿Members￿of￿these￿committees￿are￿appointed￿from￿among￿the￿Supervisory￿Board￿members.

The￿chairman￿of￿each￿committee￿reports￿to￿the￿Supervisory￿Board￿verbally￿and￿when￿deemed￿necessary￿in￿writing,￿the
issues￿and￿items￿discussed￿in￿each￿meeting.￿In￿addition,￿the￿minutes￿of￿each￿committee￿are￿available￿to￿all￿members￿of
the￿Supervisory￿Board,￿enabling￿the￿Supervisory￿Board￿to￿make￿the￿appropriate￿decisions.

Audit Committee

ASML's￿Audit￿Committee￿is￿composed￿of￿three￿members￿of￿the￿Supervisory￿Board.￿The￿current￿members￿of￿our
Audit￿Committee￿are￿Fritz￿Fröhlich￿(chairman),￿Arthur￿van￿der￿Poel￿and￿Carla￿Smits-Nusteling,￿each￿of￿whom￿is￿an
independent,￿non-executive￿member￿of￿our￿Supervisory￿Board.￿The￿Supervisory￿Board￿has￿determined￿that￿Fritz
Fröhlich￿qualifies￿as￿the￿Audit￿Committee￿financial￿expert￿pursuant￿to￿Section￿407￿of￿the￿Sarbanes-Oxley￿Act￿of￿2002
and￿the￿rules￿promulgated￿thereunder.￿Our￿external￿auditor,￿our￿CEO,￿our￿CFO,￿our￿Corporate￿Controller,￿our￿Corporate
Chief￿Accountant,￿our￿Senior￿Director￿Corporate￿Risk￿and￿Assurance￿(Internal￿Audit),￿as￿well￿as￿other￿ASML￿employees
invited￿by￿the￿chairman￿of￿the￿Audit￿Committee￿may￿also￿attend￿the￿meetings￿of￿the￿Audit￿Committee.

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The￿Audit￿Committee￿assists￿the￿Supervisory￿Board￿in:
• Overseeing￿the￿integrity￿of￿our￿Financial￿Statements￿and￿related￿financial￿and￿non-financial￿disclosures;
• Overseeing￿the￿qualifications,￿independence￿and￿performance￿of￿the￿external￿auditor;￿and
• Overseeing￿our￿disclosure￿controls￿and￿procedures￿(as￿defined￿in￿the￿Exhange￿Act￿Rules￿13a-15(e)￿and￿15d-15(e))￿and
•

internal￿control￿over￿financial￿reporting.

In￿2013,￿the￿Audit￿Committee￿held￿eight￿scheduled￿meetings,￿either￿in￿person￿or￿via￿conference￿call.

Remuneration Committee

ASML's￿Remuneration￿Committee￿is￿composed￿of￿three￿members￿of￿the￿Supervisory￿Board.￿The￿current￿members
of￿our￿Remuneration￿Committee￿are￿Wolfgang￿Ziebart￿(chairman),￿Ieke￿van￿den￿Burg￿and￿Pauline￿van￿der￿Meer￿Mohr.
The￿Remuneration￿Committee￿advices￿the￿Supervisory￿Board￿and￿preparers￿resolutions￿with￿respect￿to￿the￿review￿and
execution￿of￿the￿Remuneration￿Policy￿as￿adopted￿by￿General￿Meeting￿of￿Shareholders.

The￿Remuneration￿Committee￿prepares￿and￿the￿Supervisory￿Board￿establishes￿ASML’s￿general￿compensation
philosophy￿for￿members￿of￿the￿Board￿of￿Management,￿and￿oversees￿the￿development￿and￿implementation￿of
compensation￿programs￿for￿members￿of￿the￿Board￿of￿Management.￿The￿Remuneration￿Committee￿reviews￿and￿proposes
to￿the￿Supervisory￿Board￿corporate￿goals￿and￿objectives￿relevant￿to￿the￿compensation￿of￿members￿of￿the￿Board￿of
Management.￿The￿committee￿further￿evaluates￿the￿performance￿of￿members￿of￿the￿Board￿of￿Management￿in￿view￿of
those￿goals￿and￿objectives,￿and￿makes￿recommendations￿to￿the￿Supervisory￿Board￿on￿the￿compensation￿levels￿of￿the
members￿of￿the￿Board￿of￿Management￿based￿on￿this￿evaluation.

In￿proposing￿to￿the￿Supervisory￿Board￿the￿actual￿remuneration￿elements￿and￿levels￿applicable￿to￿the￿members￿of￿the
Board￿of￿Management,￿the￿Remuneration￿Committee￿considers,￿among￿other￿factors,￿the￿remuneration￿policy,￿the
desired￿levels￿of￿and￿emphasis￿on￿particular￿aspects￿of￿ASML’s￿short￿and￿long-term￿performance,￿as￿well￿as￿current
compensation￿and￿benefits￿structures￿and￿levels￿benchmarked￿against￿relevant￿peers.￿External￿compensation￿survey
data￿and,￿where￿necessary,￿external￿consultants￿are￿used￿to￿benchmark￿ASML’s￿remuneration￿levels￿and￿structures.

In￿2013,￿the￿Remuneration￿Committee￿held￿five￿scheduled￿meetings￿and￿several￿ad￿hoc￿meetings,￿either￿in￿person￿or￿via
conference￿call.

Selection and Nomination Committee

ASML's￿Selection￿and￿Nomination￿Committee￿is￿composed￿of￿four￿members￿of￿the￿Supervisory￿Board.￿The￿current
members￿of￿our￿Selection￿and￿Nomination￿Committee￿are￿OB￿Bilous￿(chairman),￿Arthur￿van￿der￿Poel,￿Fritz￿Fröhlich￿and
Douglas￿Grose.

The￿Selection￿and￿Nomination￿Committee￿assists￿the￿Supervisory￿Board￿in:
• Preparing￿the￿selection￿criteria￿and￿appointment￿procedures￿for￿members￿of￿ASML's￿Supervisory￿Board￿and￿Board￿of

Management;

• Periodically￿evaluating￿the￿scope￿and￿composition￿of￿the￿Board￿of￿Management￿and￿the￿Supervisory￿Board,￿and

proposing￿the￿profile￿of￿the￿Supervisory￿Board￿in￿relation￿thereto;

• Periodically￿evaluating￿the￿functioning￿of￿the￿Board￿of￿Management￿and￿the￿Supervisory￿Board￿and￿the￿individual

members￿of￿those￿boards￿and￿reporting￿the￿results￿thereof￿to￿the￿Supervisory￿Board;￿and

• Proposing￿(re-)appointments￿of￿members￿of￿the￿Board￿of￿Management￿and￿the￿Supervisory￿Board,￿and￿supervising
the￿policy￿of￿the￿Board￿of￿Management￿in￿relation￿to￿the￿selection￿and￿appointment￿criteria￿for￿senior￿management.

In￿2013,￿the￿Selection￿and￿Nomination￿Committee￿held￿three￿scheduled￿meetings￿and￿several￿ad￿hoc￿meetings,￿either￿in
person￿or￿by￿conference￿call.

Technology and Strategy Committee

ASML's￿Technology￿and￿Strategy￿Committee￿is￿composed￿of￿four￿members￿of￿the￿Supervisory￿Board.￿The￿current
members￿of￿our￿Technology￿and￿Strategy￿Committee￿are￿OB￿Bilous￿(chairman),￿Arthur￿van￿der￿Poel,￿Douglas￿Grose￿and
Wolfgang￿Ziebart.￿In￿addition,￿the￿Technology￿and￿Strategy￿Committee￿may￿appoint￿one￿or￿more￿advisors￿from￿within
and/or￿from￿outside￿ASML.￿The￿advisors￿to￿the￿Technology￿and￿Strategy￿Committee￿may￿be￿invited￿as￿guests￿to￿the
meetings,￿or￿parts￿thereof,￿of￿the￿committee￿but￿are￿not￿entitled￿to￿vote￿in￿the￿meetings.

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The￿Technology￿and￿Strategy￿Committee￿assists￿the￿Supervisory￿Board￿in￿relation￿to￿the￿following￿responsibilities￿and
may￿prepare￿resolutions￿for￿the￿Supervisory￿Board￿related￿thereto:
• Familiarization￿with￿and￿risk￿assessment￿and￿study￿of￿potential￿strategies,￿required￿technical￿resources,￿technology

roadmaps￿and￿product￿roadmaps;￿and

• Providing￿advice￿to￿the￿Supervisory￿Board￿with￿respect￿to￿matters￿related￿thereto.

￿In￿2013,￿the￿Technology￿and￿Strategy￿Committee￿held￿five￿scheduled￿meetings,￿either￿in￿person￿or￿via￿conference￿call.

Disclosure Committee

ASML￿has￿a￿Disclosure￿Committee￿to￿ensure￿compliance￿with￿applicable￿disclosure￿requirements￿arising￿under￿US
and￿Dutch￿law￿and￿applicable￿stock￿exchange￿rules.￿The￿Disclosure￿Committee￿is￿composed￿of￿various￿members￿of
senior￿management,￿and￿reports￿to￿the￿CEO￿and￿CFO.￿The￿Disclosure￿Committee￿informs￿the￿Audit￿Committee￿about
the￿outcome￿of￿the￿Disclosure￿Committee￿meetings.￿Furthermore,￿members￿of￿the￿Disclosure￿Committee￿are￿in￿close
contact￿with￿our￿external￿legal￿counsel￿and￿our￿external￿auditor.

The￿Disclosure￿Committee￿gathers￿all￿relevant￿financial￿and￿non-financial￿information￿and￿assesses￿materiality,
timeliness￿and￿necessity￿for￿disclosure￿of￿such￿information.￿In￿addition￿the￿Disclosure￿Committee￿assists￿the￿CEO￿and
CFO￿in￿the￿maintenance￿and￿evaluation￿of￿disclosure￿controls￿and￿procedures.

During￿2013,￿the￿Disclosure￿Committee￿reviewed￿the￿quarterly￿financial￿result￿announcements,￿the￿Statutory￿Interim
Report,￿the￿Annual￿Report￿on￿Form￿20-F,￿the￿Statutory￿Annual￿Report,￿and￿the￿prospectus￿in￿connection￿with
the￿offering￿for￿the￿EUR￿750￿million￿3.375￿percent￿senior￿notes￿due￿2023￿issued￿on￿September￿12,￿2013.￿The
Committee￿also￿advises￿the￿CEO￿and￿CFO￿on￿the￿assessment￿of￿ASML's￿disclosure￿controls￿and￿procedures￿and￿on￿the
assessment￿of￿ASML's￿internal￿control￿over￿financial￿reporting.

D. Employees
The￿following￿table￿presents￿our￿total￿numbers￿of￿payroll￿employees￿and￿temporary￿employees￿as￿of￿December￿31,
2013,￿2012￿and￿2011￿(in￿FTEs),￿primarily￿in￿manufacturing,￿product￿development￿and￿customer￿support￿activities:

As of December 31
Payroll￿Employees
Temporary￿Employees
Employees (in FTEs)

2013
10,360
2,865
13,225

2012
8,497
2,139
10,636

2011
7,955
1,935
9,890

During￿2013,￿the￿average￿number￿of￿payroll￿employees￿in￿FTEs￿employed￿was￿9,540,￿and￿the￿average￿number￿of
temporary￿employees￿in￿FTEs￿employed￿was￿2,546.￿The￿increase￿in￿employees￿expressed￿in￿FTEs￿is￿mainly￿explained￿by
the￿acquisition￿of￿Cymer￿as￿per￿May￿30,￿2013.

For￿a￿more￿detailed￿description￿of￿payroll￿employee￿information,￿including￿a￿breakdown￿of￿our￿employees￿in￿FTEs
by￿sector,￿see￿Notes￿18￿and￿22￿to￿our￿Financial￿Statements.￿We￿rely￿on￿our￿ability￿to￿vary￿the￿number￿of￿temporary
employees￿to￿respond￿to￿fluctuating￿market￿demand￿for￿our￿products.

Our￿future￿success￿will￿depend￿on￿our￿ability￿to￿attract,￿train,￿retain￿and￿motivate￿highly￿qualified,￿skilled￿and￿educated
employees,￿who￿are￿in￿great￿demand.￿We￿are￿particularly￿reliant￿for￿our￿continued￿success￿on￿the￿services￿of￿several
key￿employees,￿including￿a￿number￿of￿systems￿development￿specialists￿with￿advanced￿university￿qualifications￿in
engineering,￿optics￿and￿computing.￿See￿Item￿3.D.￿"Risk￿Factors￿-￿Our￿Business￿and￿Future￿Success￿Depend￿on￿Our
Ability￿to￿Attract￿and￿Retain￿a￿Sufficient￿Number￿of￿Adequately￿Educated￿and￿Skilled￿Employees."

ASML￿Netherlands￿B.V.,￿our￿operating￿subsidiary￿in￿the￿Netherlands,￿has￿a￿Works￿Council,￿as￿required￿by￿Dutch
law.￿A￿Works￿Council￿is￿a￿representative￿body￿of￿the￿employees￿of￿a￿Dutch￿company￿elected￿by￿the￿employees.￿The
Board￿of￿Management￿of￿any￿Dutch￿company￿that￿runs￿an￿enterprise￿with￿a￿Works￿Council￿must￿seek￿the￿non-binding
advice￿of￿the￿Works￿Council￿before￿taking￿certain￿decisions￿with￿respect￿to￿ASML,￿such￿as￿those￿related￿to￿a￿major
restructuring,￿a￿change￿of￿control,￿or￿the￿appointment￿or￿dismissal￿of￿a￿member￿of￿the￿Board￿of￿Management.￿In￿case
the￿Works￿Council￿renders￿a￿contrary￿advice￿on￿a￿particular￿decision￿and￿the￿Board￿of￿Management￿nonetheless￿wishes
to￿proceed,￿the￿Board￿of￿Management￿must￿temporarily￿suspend￿any￿further￿action￿while￿the￿Works￿Council￿determines
whether￿to￿appeal￿to￿the￿Enterprise￿Chamber￿of￿the￿Amsterdam￿Court￿of￿Appeal.￿Other￿decisions￿directly￿involving
employment￿matters￿that￿apply￿either￿to￿all￿employees,￿or￿certain￿groups￿of￿employees,￿may￿only￿be￿taken￿with￿the
Works￿Council’s￿approval.￿Failing￿approval￿of￿the￿Works￿Council,￿the￿decision￿first￿has￿to￿be￿submitted￿to￿the￿Enterprise

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Chamber￿for￿mediation.￿If￿no￿resolution￿has￿been￿reached,￿the￿decision￿can￿only￿be￿taken￿by￿with￿the￿approval￿of￿the
Dutch￿District￿Court.

E. Share Ownership
Information￿with￿respect￿to￿share￿ownership￿of￿members￿of￿our￿Supervisory￿Board￿and￿Board￿of￿Management￿is
included￿in￿Item￿7A￿"Major￿Shareholders".￿Further￿information￿required￿by￿Item￿6.E.￿is￿incorporated￿by￿reference
from￿page￿20￿of￿ASML’s￿2013￿Remuneration￿Report￿which￿is￿included￿as￿exhibit￿99.2￿on￿Form￿6-K,￿furnished￿with￿the
Commission￿on￿February￿12,￿2014.￿Information￿with￿respect￿to￿the￿grant￿of￿shares￿and￿stock￿options￿to￿employees￿is
included￿in￿Note￿18￿to￿our￿Financial￿Statements.

Item 7 Major Shareholders and Related Party Transactions

A. Major Shareholders
The￿following￿table￿sets￿forth￿the￿total￿number￿of￿ordinary￿shares￿owned￿by￿each￿shareholder￿whose￿beneficial
ownership￿of￿ordinary￿shares￿is￿at￿least￿3.0￿percent￿of￿our￿ordinary￿shares￿issued￿and￿outstanding,￿as￿well￿as￿the
ordinary￿shares￿(including￿options)￿owned￿by￿members￿of￿the￿Board￿of￿Management￿(which￿includes￿those￿persons
specified￿in￿Item￿6￿"Directors,￿Senior￿Management￿and￿Employees"),￿as￿a￿group,￿as￿of￿December￿31,￿2013.￿The
information￿set￿out￿below￿is￿solely￿based￿on￿public￿filings￿with￿the￿SEC￿and￿AFM￿on￿February￿5,￿2014.

Identity of Person or Group
Stichting￿Administratiekantoor￿MAKTSJAB/Intel1
Capital￿Group￿International,￿Inc2
BlackRock￿Inc.3
Stichting￿Administratiekantoor￿TSMC/TSMC4
FMR￿LLC5
Members￿of￿ASML’s￿Board￿of￿Management￿and￿its￿Chief￿Financial￿Officer6,￿as￿a￿group￿(5￿persons)7,8

Shares
Owned
62,977,877
51,453,097
22,982,001
20,992,625
19,537,364
99,678

Percent of
Class9
14.29%
11.67%
5.21%
4.76%
4.43%
0.02%

1

2

3

4

5

Stichting￿Adminstratiekantoor￿MAKTSJAB￿owns￿the￿stated￿percentage￿of￿our￿ordinary￿shares￿and￿has￿issued￿corresponding￿depository￿receipts￿to
Intel.
As￿reported￿to￿the￿Dutch￿Authority￿for￿the￿Financial￿Markets￿on￿September￿3,￿2012,￿Capital￿Group￿International,￿Inc.￿indirectly￿has￿voting￿rights
related￿to￿51,453,097￿shares￿of￿our￿ordinary￿shares￿but￿does￿not￿have￿ownership￿rights￿related￿to￿those￿shares.￿In￿addition,￿CRMC,￿which￿we￿believe
to￿be￿an￿affiliate￿of￿Capital￿Group￿International,￿Inc.,￿reported￿to￿the￿Dutch￿Authority￿for￿the￿Financial￿Markets￿on￿August￿2,￿2011,￿that￿it￿holds
voting￿rights￿related￿to￿44,579,832￿shares￿of￿our￿ordinary￿shares￿but￿does￿not￿have￿ownership￿rights￿related￿to￿those￿shares.￿Capital￿World￿Investors
reported￿on￿a￿Schedule￿13-G/A￿filed￿with￿the￿Commission￿on￿June￿10,￿2013,￿that￿it￿is￿the￿beneficial￿owner￿of￿45,026,116￿shares￿of￿our￿ordinary￿shares
as￿a￿result￿of￿its￿affiliation￿with￿CRMC.
Based￿solely￿on￿the￿Schedule￿13-G/A￿filed￿by￿BlackRock￿Inc.￿with￿the￿Commission￿on￿February￿3,￿2014.￿The￿July￿2,￿2013￿public￿filing￿with￿the￿AFM
shows￿aggregate￿holdings￿of￿various￿BlackRock￿funds￿of￿(based￿on￿total￿number￿of￿issued￿shares￿as￿per￿2￿July￿2013)￿3.68%￿in￿shares￿and￿4.42%￿in
voting￿rights.
Stichting￿Administratiekantoor￿TSMC￿owns￿the￿stated￿percentage￿of￿ordinary￿shares￿and￿has￿simultaneously￿issued￿corresponding￿depository
receipts￿to￿TSMC.
Based￿solely￿on￿the￿Schedule￿13-G/A￿filed￿by￿FMR￿LLC￿with￿the￿Commission￿on￿February￿14,￿2013.￿FMR￿LLC￿previously￿reported￿on￿the￿Schedule
13-G/A￿filed￿with￿the￿Commission￿on￿February￿12,￿2012￿that￿it￿owned￿36,311,008￿of￿our￿ordinary￿shares.

6 Mr.￿Nickl's￿appointment￿to￿ASML's￿Board￿of￿Management￿is￿subject￿to￿the￿notification￿of￿the￿AGM,￿scheduled￿to￿be￿held￿on￿April￿23,￿2014.
7

Does￿not￿include￿unvested￿shares￿and￿shares￿underlying￿options￿granted￿to￿members￿of￿ASML's￿Board￿of￿Management.￿Further￿information￿required
by￿Item￿7.A.￿is￿incorporated￿by￿reference￿from￿page￿20￿of￿ASML’s￿2013￿Remuneration￿Report￿which￿is￿included￿as￿exhibit￿99.2￿on￿Form￿6-K,￿furnished
with￿the￿Commission￿on￿February￿12,￿2014.
No￿shares￿are￿owned￿by￿members￿of￿the￿Supervisory￿Board.
As￿a￿percentage￿of￿the￿total￿number￿of￿ordinary￿shares￿outstanding￿(440,852,334)￿as￿of￿December￿31,￿2013.

8
9

The￿Intel￿Stichting￿and￿the￿TSMC￿Stichting￿acquired￿the￿shares￿indicated￿above￿as￿part￿of￿our￿CCIP￿in￿the￿second￿half
of￿2012.￿The￿Customer￿Stichtingen￿do￿not￿vote￿on￿the￿ordinary￿shares￿held￿by￿them,￿unless￿instructed￿to￿do￿so￿by￿Intel
and￿TSMC￿in￿accordance￿with￿their￿respective￿shareholder￿agreements.￿Intel￿and￿TSMC,￿are￿not￿entitled￿to￿vote￿on￿the
ASML￿shares￿held￿by￿the￿Customer￿Stichtingen,￿except￿in￿certain￿exceptional￿circumstances,￿including￿the￿authorization
of￿certain￿significant￿share￿issuances￿and￿share￿repurchases,￿any￿amendment￿to￿the￿Articles￿of￿Association￿that￿would
materially￿affect￿the￿specific￿voting￿rights￿of￿Intel￿or￿TSMC￿or￿any￿significant￿change￿in￿the￿identity￿or￿nature￿of￿ASML
or￿its￿business,￿the￿dissolution￿of￿ASML,￿and￿any￿merger￿or￿demerger￿which￿would￿result￿in￿a￿material￿change￿in￿the
identity￿or￿nature￿of￿ASML￿or￿its￿business￿(see￿Item￿10.C.￿"Material￿Contracts￿-￿Customer￿Co-Investment￿Program").

We￿do￿not￿issue￿share￿certificates.￿For￿more￿information￿see￿Item￿10.B.￿"Memorandum￿and￿Articles￿of￿Association".

As￿of￿December￿31,￿2013,￿91,263,480￿NASDAQ￿shares￿were￿held￿by￿379￿registered￿holders￿with￿a￿registered￿address
in￿the￿United￿States.￿Since￿certain￿of￿our￿ordinary￿shares￿were￿held￿by￿brokers￿and￿nominees,￿the￿number￿of￿record
holders￿in￿the￿United￿States￿may￿not￿be￿representative￿of￿the￿number￿of￿beneficial￿holders￿or￿of￿where￿the￿beneficial
holders￿are￿resident.

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Obligations￿of￿Shareholders￿to￿Disclose￿Holdings￿under￿Dutch￿Law
Holders￿of￿our￿shares￿may￿be￿subject￿to￿reporting￿obligations￿under￿the￿FMSA.

The￿disclosure￿obligations￿under￿the￿FMSA￿apply￿to￿any￿person￿or￿entity￿that￿acquires,￿holds￿or￿disposes￿of￿an￿interest
in￿the￿voting￿rights￿and/or￿the￿capital￿of￿a￿public￿limited￿company￿incorporated￿under￿the￿laws￿of￿the￿Netherlands￿whose
shares￿are￿admitted￿to￿trading￿on￿a￿regulated￿market￿within￿the￿European￿Union,￿such￿as￿ASML.￿Disclosure￿is￿required
when￿the￿percentage￿of￿voting￿rights￿or￿capital￿interest￿of￿a￿person￿or￿an￿entity￿reaches,￿exceeds￿or￿falls￿below￿3.0,
5.0,￿10.0,￿15.0,￿20.0,￿25.0,￿30.0,￿40.0,￿50.0,￿60.0,￿75.0￿or￿95.0￿percent￿(as￿a￿result￿of￿an￿acquisition￿or￿disposal￿by￿such
person,￿or￿as￿a￿result￿of￿a￿change￿in￿our￿total￿number￿of￿voting￿rights￿or￿capital￿issued).￿With￿respect￿to￿ASML,￿the
FMSA￿requires￿any￿person￿or￿entity￿whose￿interest￿in￿the￿voting￿rights￿and/or￿capital￿of￿ASML￿reached,￿exceeded￿or￿fell
below￿those￿percentage￿interests￿to￿notify￿the￿AFM￿immediately.

ASML￿is￿required￿to￿notify￿the￿AFM￿immediately￿if￿our￿voting￿rights￿and/or￿capital￿have￿changed￿by￿1.0￿percent￿or
more￿since￿its￿previous￿notification￿on￿outstanding￿voting￿rights￿and￿capital.￿In￿addition,￿ASML￿must￿notify￿the￿AFM￿of
changes￿of￿less￿than￿1.0￿percent￿in￿ASML's￿outstanding￿voting￿rights￿and￿capital￿at￿least￿once￿per￿calendar￿quarter,
within￿eight￿days￿after￿the￿end￿of￿the￿quarter.￿Any￿person￿whose￿direct￿or￿indirect￿voting￿rights￿and/or￿capital￿interest
meets￿or￿passes￿the￿thresholds￿referred￿to￿in￿the￿previous￿paragraph￿as￿a￿result￿of￿a￿change￿in￿the￿outstanding￿voting
rights￿or￿capital￿must￿notify￿the￿AFM￿no￿later￿than￿the￿fourth￿trading￿day￿after￿the￿AFM￿has￿published￿such￿a￿change.

Once￿every￿calendar￿year,￿within￿four￿weeks￿after￿the￿end￿of￿the￿calendar￿year,￿holders￿of￿an￿interest￿of￿3.0￿percent￿or
more￿in￿ASML's￿voting￿rights￿or￿capital￿must￿notify￿the￿AFM￿of￿any￿changes￿in￿the￿composition￿of￿their￿interest￿resulting
from￿certain￿acts￿(including,￿but￿not￿limited￿to,￿the￿exchange￿of￿shares￿for￿depositary￿receipts￿and￿vice￿versa,￿and￿the
exercise￿of￿rights￿to￿acquire￿shares).

Subsidiaries,￿as￿defined￿in￿the￿FMSA,￿do￿not￿have￿independent￿reporting￿obligations￿under￿the￿FMSA,￿as￿interests
held￿by￿them￿are￿attributed￿to￿their￿(ultimate)￿parents.￿Any￿person￿may￿qualify￿as￿a￿parent￿for￿purposes￿of￿the￿FMSA,
including￿an￿individual.￿A￿person￿who￿ceases￿to￿be￿a￿subsidiary￿and￿who￿disposes￿of￿an￿interest￿of￿3.0￿percent￿or￿more
in￿ASML's￿voting￿rights￿or￿capital￿must￿immediately￿notify￿the￿AFM.￿As￿of￿that￿moment,￿all￿notification￿obligations￿under
the￿FMSA￿become￿applicable￿to￿the￿former￿subsidiary.

For￿the￿purpose￿of￿calculating￿the￿percentage￿of￿capital￿interest￿or￿voting￿rights,￿the￿following￿interests￿must,￿among
other￿arrangements,￿be￿taken￿into￿account:￿shares￿and￿votes￿(i)￿directly￿held￿by￿any￿person,￿(ii)￿held￿by￿such￿person’s
subsidiaries,￿(iii)￿held￿by￿a￿third￿party￿for￿such￿person’s￿account,￿(iv)￿held￿by￿a￿third￿party￿with￿whom￿such￿person￿has
concluded￿an￿oral￿or￿written￿voting￿agreement￿(including￿on￿the￿basis￿of￿an￿unrestricted￿power￿of￿attorney),￿(v)￿held
by￿a￿third￿party￿with￿whom￿such￿person￿has￿agreed￿to￿temporarily￿transfer￿voting￿rights￿against￿payment,￿(vi)￿financial
instruments￿of￿which￿the￿increase￿in￿value￿is￿wholly￿or￿partially￿dependent￿on￿an￿increase￿in￿value￿of￿our￿shares￿or
distributions￿in￿respect￿thereof￿(including￿certain￿cash￿settled￿financial￿instruments￿such￿as￿contracts￿for￿difference￿and
total￿return￿swaps),￿(vii)￿put￿options￿pursuant￿to￿which￿a￿person￿can￿be￿required￿to￿purchase￿our￿shares,￿and￿(vii)￿other
contracts￿under￿which￿a￿person￿has￿a￿position￿economically￿comparable￿to￿having￿our￿shares.￿Interests￿held￿jointly￿by
multiple￿persons￿are￿attributed￿to￿those￿persons￿in￿accordance￿with￿their￿entitlement.￿A￿holder￿of￿a￿pledge￿or￿right￿of
usufruct￿in￿respect￿of￿shares￿can￿also￿be￿subject￿to￿these￿reporting￿obligations￿if￿such￿person￿has,￿or￿can￿acquire,￿the
right￿to￿vote￿on￿the￿shares￿or,￿in￿case￿of￿depositary￿receipts,￿the￿underlying￿shares.￿The￿managers￿of￿certain￿investment
funds￿are￿deemed￿to￿hold￿the￿capital￿interests￿and￿voting￿rights￿in￿the￿funds￿managed￿by￿them.

For￿the￿same￿purpose,￿the￿following￿instruments￿qualify￿as￿"shares":￿(i)￿shares,￿(ii)￿depositary￿receipts￿for￿shares￿(or
negotiable￿instruments￿similar￿to￿such￿receipts),￿(iii)￿negotiable￿instruments￿for￿acquiring￿the￿instruments￿under￿(i)￿or￿(ii)
(such￿as￿convertible￿bonds),￿and￿(iv)￿options￿for￿acquiring￿the￿instruments￿under￿(i)￿or￿(ii).

Since￿July￿1,￿2013,￿a￿requirement￿to￿notify￿the￿AFM￿of￿any￿gross￿short￿position￿in￿our￿shares￿applies.￿For￿the￿notification
of￿gross￿short￿positions￿the￿same￿thresholds￿apply￿as￿for￿notifying￿an￿actual￿or￿potential￿interest￿in￿the￿capital￿and/or
or￿voting￿rights￿of￿a￿Dutch￿listed￿company,￿as￿referred￿to￿above.￿In￿addition,￿pursuant￿to￿Regulation￿(EU)￿No￿236/2012,
each￿person￿holding￿a￿net￿short￿position￿amounting￿to￿0.2￿percent￿of￿the￿issued￿share￿capital￿of￿a￿Dutch￿listed￿company
is￿required￿to￿report￿it￿to￿the￿AFM.￿Each￿subsequent￿increase￿of￿this￿position￿by￿0.1￿percent￿above￿0.2￿percent￿will￿also
need￿to￿be￿reported.￿Each￿net￿short￿position￿equal￿to￿0.5￿percent￿of￿the￿issued￿share￿capital￿of￿a￿Dutch￿listed￿company
and￿any￿subsequent￿increase￿of￿that￿position￿by￿0.1￿percent￿will￿be￿made￿public￿via￿the￿AFM￿short￿selling￿register.￿To
calculate￿whether￿a￿natural￿person￿or￿legal￿person￿has￿a￿net￿short￿position,￿their￿short￿positions￿and￿long￿positions￿must
be￿set-off.￿A￿short￿transaction￿in￿a￿share￿can￿only￿be￿contracted￿if￿a￿reasonable￿case￿can￿be￿made￿that￿the￿shares￿sold
can￿actually￿be￿delivered,￿which￿requires￿confirmation￿of￿a￿third￿party￿that￿the￿shares￿have￿been￿located.

The￿AFM￿keeps￿a￿public￿registry￿of￿and￿publishes￿all￿notifications￿made￿pursuant￿to￿the￿FMSA.

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Non-compliance￿with￿the￿reporting￿obligations￿under￿the￿FMSA￿could￿lead￿to￿criminal￿fines,￿administrative￿fines,
imprisonment￿or￿other￿sanctions.￿In￿addition,￿non-compliance￿with￿the￿reporting￿obligations￿under￿the￿FMSA￿may￿lead￿to
civil￿sanctions,￿including￿(i)￿suspension￿of￿the￿voting￿rights￿relating￿to￿the￿shares￿held￿by￿the￿offender,￿for￿a￿period￿of￿not
more￿than￿three￿years,￿(ii)￿nullification￿of￿any￿resolution￿of￿our￿general￿meeting￿of￿shareholders￿to￿the￿extent￿that￿such
resolution￿would￿not￿have￿been￿approved￿if￿the￿votes￿at￿the￿disposal￿of￿the￿person￿or￿entity￿in￿violation￿of￿a￿duty￿under
the￿FMSA￿had￿not￿been￿exercised￿and￿(iii)￿a￿prohibition￿on￿the￿acquisition￿by￿the￿offender￿of￿our￿shares￿or￿the￿voting￿on
our￿ordinary￿shares￿for￿a￿period￿of￿not￿more￿than￿five￿years.

Since￿July￿1,￿2013,￿we￿may￿request￿Euroclear￿Nederland￿and￿its￿admitted￿institutions￿as￿well￿as￿intermediaries,
institutions￿and￿custodians￿of￿investment￿funds￿(in￿the￿Netherlands￿and￿abroad)￿of￿which￿we￿reasonably￿expect￿that
they￿hold￿our￿shares￿other￿than￿as￿beneficial￿owner,￿to￿provide￿certain￿details￿on￿the￿identity￿and￿number￿of￿shares￿held,
of￿their￿clients￿for￿whom￿they￿hold￿our￿shares.￿We￿must￿keep￿the￿information￿received￿confidential.￿We￿may￿only￿make
such￿requests￿during￿a￿period￿of￿60￿days￿prior￿to￿the￿day￿on￿which￿our￿general￿meeting￿of￿shareholders￿will￿be￿held.￿No
details￿are￿required￿to￿be￿given￿in￿respect￿of￿shareholders￿with￿an￿interest￿of￿less￿than￿0.5￿percent￿of￿our￿issued￿share
capital.￿A￿shareholder￿who,￿individually￿or￿together￿with￿other￿shareholders,￿holds￿an￿interest￿of￿at￿least￿10￿percent
of￿the￿issued￿share￿capital￿may￿request￿us￿to￿establish￿the￿identity￿of￿our￿shareholders￿in￿this￿manner￿so￿that￿we￿can
forward￿to￿them￿information￿provided￿by￿such￿shareholder￿in￿respect￿of￿an￿item￿on￿the￿agenda￿for￿the￿general￿meeting.
This￿request￿may￿only￿be￿made￿during￿a￿period￿of￿60￿days￿until￿(and￿not￿including)￿the￿42nd￿day￿before￿the￿day￿on￿which
the￿general￿meeting￿of￿shareholders￿will￿be￿held.

B. Related Party Transactions
Intel Agreements under Customer Co-Investment Program
On￿July￿9,￿2012,￿we￿announced￿our￿CCIP￿to￿accelerate￿our￿development￿of￿EUV￿technology￿beyond￿the￿current
generation￿and￿our￿development￿of￿future￿450mm￿silicon￿wafer￿technology.￿The￿Participating￿Customers￿collectively
agreed￿to￿fund￿EUR￿1.38￿billion￿of￿our￿research￿and￿development￿projects￿from￿2013￿through￿2017.￿This￿program
creates￿risk￿sharing￿with￿some￿of￿our￿largest￿customers￿while￿the￿results￿of￿ASML’s￿development￿programs￿will￿be
available￿to￿every￿semiconductor￿manufacturer￿with￿no￿restrictions.￿The￿R&D￿funding￿program￿in￿the￿CCIP￿consists￿of
two￿funding￿projects:￿a￿450mm￿technology￿development￿project￿and￿a￿next-generation￿EUV￿development￿project.￿ASML
has￿entered￿into￿NRE￿Funding￿Agreements￿with￿the￿Participating￿Customers.

In￿addition￿to￿the￿funding￿commitments￿described￿above,￿the￿Participating￿Customers￿have￿invested￿in￿ordinary￿shares
equal,￿in￿aggregate,￿to￿23￿percent￿of￿ASML's￿issued￿share￿capital￿(calculated￿giving￿effect￿to￿our￿Synthetic￿Share
Buyback￿in￿November￿2012).￿The￿proceeds￿of￿the￿share￿issuance,￿EUR￿3.85￿billion,￿were￿returned￿to￿the￿holders￿of
ordinary￿shares￿(excluding￿the￿Participating￿Customers)￿through￿a￿Synthetic￿Share￿Buyback￿executed￿in￿November
2012.￿

Intel￿is￿the￿largest￿participant￿in￿the￿program,￿with￿an￿aggregate￿funding￿commitment￿of￿EUR￿829￿million￿and￿an
investment￿in￿15￿percent￿of￿our￿ordinary￿shares￿(after￿giving￿effect￿to￿the￿Synthetic￿Share￿Buyback￿in￿November￿2012).

Please￿see￿Item￿10.C￿“Material￿Contracts￿-￿Customer￿Co-Investment￿Program”￿and￿Note￿28￿to￿our￿Financial￿Statements
for￿more￿information￿about￿the￿CCIP.￿See￿Note￿29￿to￿our￿Financial￿Statements￿for￿details￿on￿sales￿to￿Intel￿in￿2013￿and
outstanding￿balances￿as￿of￿December￿31,￿2013.

There￿have￿been￿no￿other￿transactions￿during￿our￿most￿recent￿fiscal￿year,￿and￿there￿are￿currently￿no￿transactions,
between￿ASML￿or￿any￿of￿its￿subsidiaries,￿and￿any￿significant￿shareholder￿and￿any￿director￿or￿officer￿or￿any￿relative
or￿spouse￿thereof￿other￿than￿ordinary￿course￿compensation￿arrangements.￿During￿our￿most￿recent￿fiscal￿year,￿there
has￿been￿no,￿and￿at￿present￿there￿is￿no,￿outstanding￿indebtedness￿to￿ASML￿owed￿or￿owing￿by￿any￿director￿or￿officer
of￿ASML￿or￿any￿associate￿thereof,￿other￿than￿the￿virtual￿financing￿arrangement￿with￿respect￿to￿shares￿and￿stock
options￿described￿under￿Note￿18￿to￿our￿Financial￿Statements.￿Furthermore,￿ASML￿has￿not￿granted￿any￿personal￿loans,
guarantees,￿or￿the￿like￿to￿members￿of￿the￿Board￿of￿Management￿or￿Supervisory￿Board.

C. Interests of Experts & Counsel
Not￿applicable.

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45

Item 8 Financial Information

A. Consolidated Statements and Other Financial Information

Consolidated Financial Statements
See￿Item￿18￿"Financial￿Statements".

Export Sales
See￿Note￿21￿to￿our￿Financial￿Statements.

Legal Proceedings
See￿Item￿4.B.￿"Business￿Overview￿-￿Intellectual￿Property"￿and￿Note￿19￿to￿our￿Financial￿Statements.

Dividend Policy
As￿part￿of￿our￿financing￿policy,￿we￿aim￿to￿pay￿an￿annual￿dividend￿that￿will￿be￿stable￿or￿growing￿over￿time.￿Annually,￿the
Board￿of￿Management￿will,￿upon￿prior￿approval￿from￿the￿Supervisory￿Board,￿submit￿a￿proposal￿to￿the￿AGM￿with￿respect
to￿the￿amount￿of￿dividend￿to￿be￿declared￿with￿respect￿to￿the￿prior￿year.￿The￿dividend￿proposal￿in￿any￿given￿year￿will￿be
subject￿to￿the￿availability￿of￿distributable￿profits￿or￿retained￿earnings￿and￿may￿be￿affected￿by,￿among￿other￿factors,￿the
Board￿of￿Management's￿views￿on￿our￿potential￿future￿liquidity￿requirements,￿including￿for￿investments￿in￿production
capacity,￿the￿funding￿of￿our￿R&D￿programs￿and￿for￿acquisition￿opportunities￿that￿may￿arise￿from￿time￿to￿time;￿and￿by
future￿changes￿in￿applicable￿income￿tax￿and￿corporate￿laws.￿Accordingly,￿it￿may￿be￿decided￿to￿propose￿not￿to￿pay￿a
dividend￿or￿to￿pay￿a￿lower￿dividend￿with￿respect￿to￿any￿particular￿year￿in￿the￿future.

For￿2013,￿a￿proposal￿to￿declare￿a￿dividend￿of￿EUR￿0.61￿per￿ordinary￿share￿of￿EUR￿0.09￿nominal￿value￿will￿be￿submitted
to￿the￿AGM￿to￿be￿held￿on￿April￿23,￿2014.

B. Significant Changes
No￿significant￿changes￿have￿occurred￿since￿the￿date￿of￿our￿Financial￿Statements.￿See￿Item￿5.D.￿"Trend￿Information"￿and
Note￿30￿to￿the￿Financial￿Statements.

Item 9 The Offer and Listing

A. Offer and Listing Details
Our￿ordinary￿shares￿are￿listed￿for￿trading￿in￿the￿form￿of￿registered￿ASML￿NASDAQ￿shares￿and￿in￿the￿form￿of￿registered
ASML￿shares￿NYSE￿Euronext￿Amsterdam.￿The￿principal￿trading￿market￿of￿our￿ordinary￿shares￿is￿NYSE￿Euronext
Amsterdam.￿Our￿ordinary￿shares￿also￿trade￿on￿NASDAQ.￿For￿more￿information￿see￿Item￿10.B.￿“Memorandum￿and
Articles￿of￿Association”.

Our￿shares￿listed￿at￿NASDAQ￿are￿registered￿with￿J.P.￿Morgan,￿the￿New￿York￿Transfer￿Agent,￿pursuant￿to￿the￿terms￿of
the￿Transfer￿Agent￿Agreement￿between￿ASML￿and￿the￿New￿York￿Transfer￿Agent.￿Our￿shares￿listed￿at￿NYSE￿Euronext
Amsterdam￿are￿held￿in￿dematerialized￿form￿through￿the￿facilities￿of￿Euroclear￿Nederland,￿the￿Dutch￿centralized￿securities
custody￿and￿administration￿system.￿The￿New￿York￿Transfer￿Agent￿charges￿shareholders￿a￿fee￿of￿USD￿5.00￿per￿100
shares￿for￿the￿exchange￿of￿our￿shares￿listed￿at￿NASDAQ￿for￿our￿shares￿listed￿at￿NYSE￿Euronext￿Amsterdam￿and￿vice
versa.

Dividends￿payable￿on￿our￿shares￿listed￿at￿NASDAQ￿are￿declared￿in￿euro￿and￿converted￿to￿U.S.￿dollars￿at￿the￿rate￿of
exchange￿at￿the￿close￿of￿business￿on￿the￿date￿determined￿by￿the￿Board￿of￿Management.￿The￿resulting￿amounts￿are
distributed￿through￿the￿New￿York￿Transfer￿Agent￿and￿no￿charge￿is￿payable￿by￿holders￿of￿our￿shares￿listed￿at￿NASDAQ￿in
connection￿with￿this￿conversion￿or￿distribution.

Pursuant￿to￿the￿terms￿of￿the￿Transfer￿Agent￿Agreement,￿we￿have￿agreed￿to￿reimburse￿the￿New￿York￿Transfer￿Agent￿for
certain￿out￿of￿pocket￿expenses,￿including￿in￿connection￿with￿any￿mailing￿of￿notices,￿reports￿or￿other￿communications
made￿generally￿available￿by￿ASML￿to￿holders￿of￿ordinary￿shares￿and￿the￿New￿York￿Transfer￿Agent￿has￿waived￿its￿fees
associated￿with￿routine￿services￿to￿ASML￿associated￿with￿our￿shares￿listed￿at￿NASDAQ.￿In￿addition,￿the￿New￿York
Transfer￿Agent￿has￿agreed￿to￿reimburse￿certain￿reasonable￿expenses￿incurred￿by￿ASML￿in￿connection￿with￿the￿issuance
and￿transfer￿of￿our￿shares￿listed￿at￿NASDAQ.￿In￿the￿year￿ended￿December￿31,￿2013,￿the￿Transfer￿Agent￿reimbursed￿USD
2,495,352￿of￿expenses￿incurred￿by￿ASML,￿which￿mainly￿comprised￿of￿legal￿and￿listing￿fees￿incurred￿due￿to￿the￿existence
of￿our￿shares￿listed￿at￿NASDAQ.

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46

The￿following￿table￿sets￿forth,￿for￿the￿periods￿indicated,￿the￿high￿and￿low￿closing￿prices￿of￿our￿shares￿listed￿at￿NASDAQ
and￿our￿shares￿listed￿at￿NYSE￿Euronext￿Amsterdam.

Annual Information
2013
2012
2011
2010
2009
Quarterly Information
4th￿quarter￿2013
3rd￿quarter￿2013
2nd￿quarter￿2013
1st￿quarter￿2013

4th￿quarter￿2012
3rd￿quarter￿2012
2nd￿quarter￿2012
1st￿quarter￿2012
Monthly Information
February￿(through￿February￿4)￿2014
January￿2014
December￿2013
November￿2013
October￿2013
September￿2013
August￿2013

ASML shares NASDAQ
USD

ASML shares NYSE
Euronext Amsterdam
EUR

High

100.96
64.68
45.82
38.45
34.67

100.96
98.76
84.08
78.21

64.68
58.86
51.54
50.14

84.56
92.36
94.07
93.59
100.96
98.76
92.99

Low

63.08
40.91
31.08
24.73
14.28

86.94
78.40
66.08
63.08

50.08
48.46
43.80
40.91

84.09
84.40
87.91
86.94
92.84
88.39
87.06

High

74.30
49.36
32.81
29.26
24.24

74.30
73.00
65.55
56.80

49.36
48.14
40.88
37.48

62.86
67.76
69.25
69.11
74.30
73.00
70.33

Low

47.20
31.81
22.28
19.68
11.35

63.87
60.66
50.62
47.20

39.15
39.75
35.17
31.81

62.53
62.05
63.87
64.54
67.40
66.79
65.94

B. Plan of Distribution
Not￿applicable.

C. Markets
See￿Item￿9.A.￿"Offer￿and￿Listing￿Details".

D. Selling Shareholders
Not￿applicable.

E. Dilution
Not￿applicable.

F. Expenses of the Issue
Not￿applicable.

Item 10 Additional Information

A. Share Capital
Not￿applicable.

B. Memorandum and Articles of Association
Our￿Articles￿of￿Association￿included￿as￿Exhibit￿99.1￿to￿our￿form￿6-K￿filed￿furnished￿with￿the￿SEC￿on￿February￿8,￿2013
(the￿"Articles￿of￿Association").

Current Authorizations to Issue and Repurchase Ordinary Shares

Our￿Board￿of￿Management￿has￿the￿power￿to￿issue￿ordinary￿shares￿and￿preference￿shares￿if￿and￿insofar￿as￿the￿Board￿of
Management￿has￿been￿authorized￿to￿do￿so￿by￿the￿General￿Meeting￿of￿Shareholders￿(whether￿by￿means￿of￿an￿authorizing
resolution￿or￿by￿an￿amendment￿to￿our￿Articles￿of￿Association).￿The￿Board￿of￿Management￿requires￿the￿approval￿of
the￿Supervisory￿Board￿for￿such￿an￿issue.￿An￿authorization￿of￿the￿Board￿of￿Management￿to￿issue￿ordinary￿shares￿or
preference￿shares￿may￿be￿effective￿for￿a￿specified￿period￿of￿up￿to￿five￿years￿and￿may￿be￿renewed.￿In￿the￿absence￿of

ASML￿ANNUAL￿REPORT￿2013

47

such￿authorization,￿the￿General￿Meeting￿of￿Shareholders￿has￿the￿power￿to￿authorize￿the￿issuance￿of￿ordinary￿shares
or￿preference￿shares,￿upon￿the￿proposal￿of￿the￿Board￿of￿Management,￿which￿proposal￿must￿be￿authorized￿by￿the
Supervisory￿Board.

At￿our￿AGM￿on￿April￿24,￿2013,￿our￿shareholders￿authorized￿the￿Board￿of￿Management￿to￿issue￿shares￿and/or￿rights
thereto￿through￿October￿24,￿2014,￿up￿to￿an￿aggregate￿maximum￿of￿10.0￿percent￿of￿ASML's￿issued￿share￿capital.￿At￿our
AGM￿to￿be￿held￿on￿April￿23,￿2014,￿our￿shareholders￿will￿be￿asked￿to￿extend￿this￿authority￿through￿October￿23,￿2015.

Holders￿of￿ASML’s￿ordinary￿shares￿have￿a￿preemptive￿right￿of￿subscription,￿in￿proportion￿to￿the￿aggregate￿nominal
amount￿of￿the￿ordinary￿shares￿held￿by￿them,￿to￿any￿issuance￿of￿ordinary￿shares￿for￿cash,￿which￿right￿may￿be￿restricted
or￿excluded.￿Ordinary￿shareholders￿have￿no￿pro￿rata￿preemptive￿right￿of￿subscription￿to￿any￿ordinary￿shares￿issued￿for
consideration￿other￿than￿cash￿or￿ordinary￿shares￿issued￿to￿employees.￿If￿authorized￿for￿this￿purpose￿by￿the￿General
Meeting￿of￿Shareholders￿(either￿by￿means￿of￿a￿resolution￿or￿by￿an￿amendment￿to￿our￿Articles￿of￿Association),￿the￿Board
of￿Management￿has￿the￿power￿subject￿to￿approval￿of￿the￿Supervisory￿Board,￿to￿restrict￿or￿exclude￿the￿preemptive￿rights
of￿holders￿of￿ordinary￿shares.￿At￿our￿AGM￿on￿April￿24,￿2013,￿our￿shareholders￿authorized￿the￿Board￿of￿Management
through￿October￿24,￿2014,￿subject￿to￿approval￿of￿the￿Supervisory￿Board,￿to￿restrict￿or￿exclude￿preemptive￿rights￿of
holders￿of￿ordinary￿shares￿up￿to￿a￿maximum￿of￿10￿percent￿of￿our￿issued￿share￿capital.￿At￿our￿AGM￿to￿be￿held￿on￿April
23,￿2014,￿our￿shareholders￿will￿be￿asked￿to￿extend￿this￿authority￿through￿October￿23,￿2015.

In￿addition,￿the￿articles￿of￿association￿provide￿for￿9,000￿ordinary￿shares￿B￿with￿a￿nominal￿value￿of￿EUR￿0.01￿to￿allow
holders￿of￿fractional￿shares,￿created￿as￿a￿result￿of￿the￿Synthetic￿Share￿Buyback,￿to￿obtain￿voting￿rights￿with￿respect￿to
those￿fractional￿shares.

We￿may￿repurchase￿our￿issued￿ordinary￿shares￿at￿any￿time,￿subject￿to￿compliance￿with￿the￿requirements￿of￿Dutch￿law
and￿our￿Articles￿of￿Association.￿Any￿such￿repurchases￿are￿subject￿to￿the￿approval￿of￿the￿Supervisory￿Board￿and￿the
authorization￿of￿shareholders￿at￿our￿General￿Meeting￿of￿Shareholders,￿which￿authorization￿may￿not￿be￿for￿more￿than￿18
months.￿The￿Board￿of￿Management￿is￿currently￿authorized,￿subject￿to￿Supervisory￿Board￿approval,￿to￿repurchase￿as￿of
April￿24,￿2013￿through￿October￿24,￿2014,￿up￿to￿a￿maximum￿of￿two￿times￿10.0￿percent￿of￿ASML's￿issued￿share￿capital
as￿of￿April￿24,￿2013,￿at￿a￿price￿between￿the￿nominal￿value￿of￿the￿ordinary￿shares￿purchased￿and￿110.0￿percent￿of￿the
market￿price￿of￿these￿securities￿on￿NYSE￿Euronext￿Amsterdam￿or￿NASDAQ.￿At￿our￿AGM￿to￿be￿held￿on￿April￿23,￿2014,
our￿shareholders￿will￿be￿asked￿to￿extend￿this￿through￿October￿23,￿2015.

C. Material Contracts
Overview

On￿July￿9,￿2012,￿we￿announced￿our￿CCIP￿to￿accelerate￿our￿development￿of￿EUV￿technology￿beyond￿the￿current
generation￿and￿our￿development￿of￿future￿450mm￿silicon￿wafer￿technology.￿The￿Participating￿Customers￿collectively
agreed￿to￿fund￿EUR￿1.38￿billion￿of￿our￿research￿and￿development￿projects￿from￿2013￿through￿2017.￿This￿program
created￿risk￿sharing￿with￿some￿of￿our￿largest￿customers￿while￿the￿results￿of￿ASML’s￿development￿programs￿will￿be
available￿to￿every￿semiconductor￿manufacturer￿with￿no￿restrictions.￿The￿R&D￿funding￿program￿in￿the￿CCIP￿consists￿of
two￿funding￿projects:￿a￿450mm￿technology￿development￿project￿and￿a￿next-generation￿EUV￿development￿project.￿ASML
entered￿into￿NRE￿Funding￿Agreements￿with￿the￿Participating￿Customers.

In￿addition￿to￿the￿funding￿commitments￿described￿above,￿the￿Participating￿Customers￿have￿invested￿in￿ordinary￿shares
equal,￿in￿aggregate,￿to￿23￿percent￿of￿ASML's￿issued￿share￿capital￿(calculated￿giving￿effect￿to￿our￿Synthetic￿Share
Buyback￿in￿November￿2012).￿The￿proceeds￿of￿the￿share￿issuance,￿EUR￿3.85￿billion,￿were￿returned￿to￿the￿holders￿of
ordinary￿shares￿(excluding￿the￿Participating￿Customers)￿through￿a￿Synthetic￿Share￿Buyback￿executed￿in￿November
2012.￿For￿further￿information￿regarding￿the￿Synthetic￿Share￿Buyback,￿see￿Note￿26￿to￿our￿Financial￿Statements.

Description of Investment Agreements, Shareholder Agreements and NRE Funding Agreements

In￿connection￿with￿the￿CCIP,￿ASML￿entered￿into￿an￿investment￿agreement,￿a￿shareholder￿agreement￿and￿NRE￿Funding
Agreements￿with￿each￿of￿the￿Participating￿Customers.￿Intel￿is￿the￿largest￿participant￿in￿the￿program,￿with￿an￿aggregate
funding￿commitment￿of￿EUR￿829￿million￿and￿an￿investment￿in￿15￿percent￿of￿our￿ordinary￿shares￿(calculated￿giving
effect￿to￿our￿Synthetic￿Share￿Buyback￿in￿November￿2012).￿A￿description￿of￿the￿investment￿agreement,￿shareholders
agreement￿and￿NRE￿Funding￿Agreements￿between￿ASML￿and￿Intel￿is￿set￿out￿below.￿￿The￿agreements￿between
ASML￿and￿the￿other￿program￿participants￿-￿￿TSMC￿(which￿acquired￿5￿percent￿of￿our￿shares￿and￿made￿an￿EUR￿276
million￿funding￿commitment)￿and￿Samsung￿(which￿acquired￿3￿percent￿of￿our￿shares￿and￿made￿an￿EUR￿276￿million
funding￿commitment)￿are￿on￿substantially￿the￿same￿terms￿as￿those￿agreed￿with￿Intel.￿￿Shares￿were￿acquired￿by￿Dutch
foundations￿(“Stichtingen”)￿established￿for￿each￿participant.

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Investment Agreement

Pursuant￿to￿the￿Intel￿Investment￿Agreement￿between￿ASML￿and￿Intel,￿dated￿July￿9,￿2012,￿ASML￿agreed￿to￿issue￿to￿a
foundation￿established￿for￿the￿lntel￿Stichting￿ordinary￿shares￿equal￿to￿15￿percent￿of￿ASML’s￿issued￿ordinary￿shares;
the￿Intel￿Stichting￿issued￿to￿Intel￿depositary￿receipts￿representing￿the￿ordinary￿shares.￿The￿subscription￿price￿for￿the
ordinary￿shares￿￿issued￿to￿Intel￿was￿EUR￿39.91￿per￿ordinary￿share,￿which￿is￿the￿average￿of￿the￿volume￿weighted￿average
price￿of￿our￿shares￿listed￿at￿NYSE￿Euronext￿Amsterdam￿for￿the￿twenty￿trading￿days￿up￿to￿and￿including￿July￿6,￿2012.

Under￿the￿Intel￿Investment￿Agreement,￿ASML￿has￿agreed￿to￿indemnify￿Intel,￿and￿its￿affiliates￿for￿certain￿losses￿and
expenses￿related￿to￿breaches￿of￿representations,￿warranties,￿covenants￿and￿agreements￿in￿the￿Investment￿Agreements
and￿with￿respect￿to￿certain￿legal￿proceedings￿related￿thereto,￿subject￿to￿certain￿limitations.

Shareholder Agreement

In￿connection￿with￿the￿issuance￿of￿shares￿pursuant￿to￿the￿Intel￿Investment￿Agreement,￿on￿September￿12,￿2012￿ASML,
Intel￿and￿the￿Intel￿Stichting￿entered￿into￿a￿Shareholder￿Agreement￿which￿governs￿certain￿matters￿relating￿to￿the￿holding
of￿and￿further￿investment￿by￿Intel￿in￿ordinary￿shares￿of￿ASML,￿directly￿and￿indirectly￿through￿the￿Intel￿Stichting,￿including
the￿matters￿described￿below.

Voting Restrictions

Pursuant￿to￿the￿Intel￿Shareholder￿Agreement,￿Intel￿(and￿the￿Intel￿Stichting)￿will￿not￿be￿entitled￿to￿vote￿the￿ordinary￿shares
that￿were￿acquired￿by￿the￿Intel￿Stichting￿as￿part￿of￿the￿CCIP￿or￿any￿other￿ordinary￿shares￿otherwise￿transferred￿to￿the
Intel￿Stichting￿(under￿the￿circumstances￿described￿under￿"Standstill;￿Additional￿Purchases"￿below)￿prior￿to￿a￿Shareholder
Agreement￿Termination￿Event￿(as￿defined￿below),￿except￿when￿a￿Suspension￿Event￿(as￿described￿below)￿occurs￿and
is￿continuing￿or￿where￿the￿following￿matters￿are￿proposed￿at￿any￿General￿Meeting￿(the￿"Voting￿Restrictions"):￿(i)￿an
issuance￿of￿ASML￿shares￿or￿grant￿of￿rights￿to￿subscribe￿for￿ASML￿shares￿representing￿25￿percent￿or￿more￿of￿the￿issued
and￿outstanding￿share￿capital￿of￿ASML￿or￿the￿restriction￿or￿exclusion￿of￿pre-emption￿rights￿relating￿thereto￿(in￿each
case,￿on￿an￿aggregate￿basis￿during￿the￿preceding￿12￿months)￿or￿the￿designation￿of￿the￿Board￿of￿Management￿as￿the
authorized￿body￿to￿resolve￿on￿these￿matters;￿(ii)￿an￿authorization￿to￿repurchase￿25￿percent￿or￿more￿of￿ASML’s￿issued
and￿outstanding￿share￿capital￿on￿an￿aggregate￿basis￿during￿the￿preceding￿12￿months;￿(iii)￿the￿approval￿of￿a￿significant
change￿in￿the￿identity￿or￿nature￿of￿ASML￿or￿its￿business,￿including￿a￿transfer￿of￿all￿or￿substantially￿all￿business￿or￿assets
of￿ASML￿and￿its￿subsidiaries￿to￿a￿third￿party,￿the￿establishment￿or￿cancellation￿of￿a￿long-lasting￿cooperation￿of￿essential
importance￿with￿a￿third￿party￿and￿an￿acquisition￿or￿disposition￿of￿an￿interest￿in￿the￿capital￿or￿assets￿of￿a￿person￿with
a￿value￿of￿at￿least￿one￿third￿of￿the￿assets￿of￿ASML￿(on￿a￿consolidated￿basis);￿(iv)￿an￿amendment￿to￿ASML’s￿Articles￿of
Association￿that￿would￿materially￿affect￿the￿specific￿voting￿rights￿of￿Intel,￿would￿materially￿affect￿the￿identity￿or￿nature
of￿ASML￿or￿its￿business,￿or￿would￿disproportionately￿(or￿uniquely)￿and￿adversely￿affect￿the￿rights￿or￿benefits￿attached
to￿or￿derived￿from￿the￿ordinary￿shares￿held￿by￿Intel￿through￿the￿Intel￿Stichting￿as￿compared￿to￿the￿shareholders;￿(v)￿the
dissolution￿of￿ASML;￿and￿(vi)￿any￿merger￿or￿demerger￿which￿would￿result￿in￿a￿material￿change￿in￿the￿identity￿or￿nature￿of
ASML￿or￿its￿business.

Standstill, Lock-up and Orderly Market Arrangements

Standstill;￿Additional￿Purchases

Subject￿to￿certain￿exceptions,￿pursuant￿to￿the￿Shareholder￿Agreement,￿Intel￿(or￿its￿affiliates)￿may￿not,￿prior￿to￿the
six-year￿anniversary￿of￿the￿date￿of￿the￿Intel￿Shareholder￿Agreement￿(the￿"Standstill￿Period"),￿acquire￿more￿than￿19.9
percent￿of￿the￿outstanding￿share￿capital￿of￿ASML￿without￿ASML’s￿prior￿approval￿(the￿"Standstill￿Restriction").￿There￿is
an￿exception￿from￿the￿Standstill￿Restriction￿in￿the￿case￿of￿a￿‘suspension￿event’,￿which￿includes￿certain￿circumstances
where￿a￿third￿party￿has￿acquired￿or￿made￿an￿offer￿to￿acquire￿at￿least￿20￿percent￿of￿ASML’s￿outstanding￿shares,￿and￿the
Standstill￿Restriction￿will￿terminate￿upon￿the￿occurrence￿of￿a￿Shareholder￿Agreement￿Termination￿Event.

The￿Shareholder￿Agreement￿permits￿Intel￿(and￿its￿affiliates)￿to￿acquire￿up￿to￿4.99￿percent￿of￿ASML's￿outstanding￿shares
(other￿than￿shares￿acquired￿through￿the￿CCIP)￿that￿may￿be￿held￿outside￿the￿Intel￿Stichting.￿For￿any￿additional￿ASML
shares￿that￿Intel￿(or￿its￿affiliates)￿acquires￿in￿excess￿of￿4.99￿percent￿of￿the￿outstanding￿shares￿of￿ASML,￿Intel￿is￿required
to￿deposit￿such￿shares￿with￿the￿Intel￿Stichting￿in￿exchange￿for￿Depositary￿Receipts.￿Shares￿held￿directly￿by￿Intel￿or￿its
affiliates￿(and￿which￿not￿required￿to￿be￿deposited￿with￿the￿Intel￿Stichting)￿are￿not￿subject￿to￿the￿Voting￿Restrictions,￿or
Lock-Up￿Restrictions￿(as￿defined￿below),￿but￿are￿subject￿to￿the￿Standstill￿Restriction.

The￿Intel￿Stichting￿will￿continue￿to￿hold￿ASML￿shares￿owned￿by￿Intel￿(notwithstanding￿termination￿of￿the￿Standstill
Period)￿until￿the￿earlier￿of￿(i)￿￿such￿time￿as￿Intel￿owns￿(directly￿or￿through￿the￿Intel￿Stichting)￿less￿than￿2￿percent￿of
ASML’s￿outstanding￿shares￿(the￿relevant￿percentage￿is￿1￿percent￿for￿the￿other￿Participating￿Customers)￿(ii)￿the￿date

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of￿notification￿to￿ASML￿by￿Participating￿Customers￿that￿the￿aggregate￿amount￿of￿ASML’s￿outstanding￿shares￿owned
by￿Intel￿and￿the￿other￿Participating￿Customers￿represents￿less￿than￿5￿percent￿of￿ASML’s￿outstanding￿shares￿and￿(iii)
a￿Shareholder￿Agreement￿Termination￿Event￿(as￿defined￿below),￿following￿which￿time￿Depositary￿Receipts￿will￿be
exchanged￿for￿the￿underlying￿ASML￿shares.￿In￿case￿Intel￿would￿acquire￿ASML￿shares￿within￿18￿months￿after￿an￿event
described￿under￿(i)￿or￿(ii)￿above,￿any￿ASML￿shares￿held￿by￿Intel￿in￿excess￿of￿4.99￿percent￿of￿the￿outstanding￿shares￿of
ASML￿must￿be￿transferred￿to￿(and￿held￿by)￿the￿Intel￿Stichting.

Lock-up;￿Orderly￿Sell￿Down

Intel￿may￿not,￿without￿prior￿written￿consent￿of￿ASML,￿transfer￿any￿ordinary￿shares￿or￿Depositary￿Receipts￿until￿the
earliest￿of￿(i)￿two￿years￿and￿six￿months￿after￿the￿date￿of￿the￿Intel￿Shareholder￿Agreement,￿(ii)￿termination￿of￿the￿NRE
Funding￿Agreements,￿and￿(iii)￿the￿occurrence￿of￿a￿Shareholder￿Agreement￿Termination￿Event￿￿((i),￿(ii)￿and￿(iii)￿together,￿the
"Lock-Up￿Restriction").￿The￿Lock-Up￿Restriction￿does￿not￿apply￿in￿certain￿circumstances￿where￿a￿third￿party￿offers￿to
acquire￿at￿least￿20￿percent￿of￿ASML’s￿shares.￿Intel￿is￿not￿permitted￿to￿transfer￿the￿ASML￿ordinary￿shares￿it￿acquired￿in
the￿program￿in￿connection￿with￿an￿offer￿(before￿the￿end￿of￿the￿offer),￿or￿make￿any￿public￿statement￿in￿support￿of￿such
offer,￿that￿is￿not￿recommended￿by￿the￿ASML￿Supervisory￿Board￿or￿Management￿Board,￿except￿in￿limited￿circumstances.

In￿addition,￿Intel￿may￿not￿(even￿after￿the￿Lock-Up￿Restriction￿has￿ended),￿without￿written￿consent￿of￿ASML,￿transfer
on￿NYSE￿Euronext￿Amsterdam,￿NASDAQ￿or￿another￿securities￿exchange￿more￿than￿(i)￿in￿respect￿of￿Intel,￿4￿percent￿of
the￿outstanding￿shares￿of￿ASML￿during￿any￿six￿month￿period￿(the￿relevant￿percentage￿is￿1.5￿percent￿for￿Samsung￿and
2.5￿percent￿for￿TSMC).￿There￿are￿also￿restrictions￿on￿Intel's￿ability￿to￿transfer￿ASML￿shares￿to￿certain￿competitors￿or
customers￿of￿ASML.

Termination

The￿Intel￿Shareholder￿Agreement￿will￿terminate￿upon￿the￿occurrence￿of￿the￿following￿events￿(each￿a￿"Shareholder
Agreement￿Termination￿Event")￿(i)￿certain￿change￿of￿control￿transactions￿were￿the￿shareholders￿of￿ASML￿prior￿to￿such
a￿transaction￿are￿no￿longer￿entitled￿to￿exercise￿at￿least￿50￿percent￿of￿the￿votes￿in￿the￿General￿Meeting￿following￿such
transaction,￿(ii)￿in￿the￿event￿of￿a￿delisting￿of￿our￿shares￿listed￿at￿NYSE￿Euronext￿Amsterdam￿or￿delisting￿of￿our￿shares
listed￿at￿NASDAQ￿(except￿for￿certain￿voluntary￿delistings￿from￿NASDAQ),￿(iii)￿the￿winding￿up￿or￿liquidation￿of￿ASML,￿or
(vi)￿in￿the￿event￿that￿all￿Depositary￿Receipts￿are￿exchanged￿for￿ASML￿shares￿and￿Intel￿does￿not￿acquire￿ASML￿shares￿in
excess￿of￿4.99￿percent￿of￿the￿outstanding￿ASML￿shares￿within￿18￿months￿of￿such￿exchange￿(see￿"Standstill;￿Additional
Purchases"￿above).

NRE Funding Agreements

Intel NRE Funding Agreements

On￿July￿9,￿2012,￿ASML￿and￿Intel￿entered￿into￿two￿NRE￿Funding￿Agreements￿pursuant￿to￿which￿Intel￿has￿agreed￿to
fund￿certain￿of￿ASML’s￿R&D￿costs￿and￿project￿expenditures.￿One￿agreement￿relates￿to￿the￿Intel￿450mm￿NRE￿Funding
Agreement￿and￿the￿other￿relates￿to￿the￿Intel￿EUV￿NRE￿Funding￿Agreement￿(together￿the￿Intel￿NRE￿Funding￿Agreements).
Intel￿has￿committed￿to￿provide￿funding￿in￿an￿aggregate￿amount￿of￿EUR￿553￿million￿under￿the￿Intel￿450mm￿NRE￿Funding
Agreement￿and￿funding￿in￿an￿aggregate￿amount￿of￿EUR￿276￿￿million￿under￿the￿Intel￿EUV￿NRE￿Funding￿Agreement,
payable￿over￿the￿term￿of￿the￿relevant￿agreements￿(2013-2017).￿Under￿the￿agreements,￿ASML￿retains￿sole￿control￿over
the￿development￿of￿450mm￿photo￿lithography￿equipment￿and￿EUV￿platforms￿and￿will￿own￿all￿intellectual￿property
created￿by￿ASML￿in￿connection￿therewith.￿The￿NRE￿Funding￿Agreements￿provide￿that￿if￿ASML,￿in￿its￿reasonable
discretion,￿determines￿to￿abandon￿either￿the￿450mm￿or￿EUV￿development￿project,￿as￿a￿result￿of￿technical￿infeasibility
or￿lack￿of￿sufficient￿industry￿demand,￿or￿if￿the￿then￿remaining￿funding￿exceeds￿the￿expenditure￿estimate￿for￿the
development￿project￿(450mm￿or￿EUV),￿then￿the￿parties￿may￿agree￿on￿an￿alternative￿development￿project.￿If￿no￿alternative
is￿agreed,￿ASML￿may￿invoice￿Intel￿for￿the￿remaining￿due￿portion￿of￿committed￿funding￿during￿each￿year￿of￿the￿remaining
funding￿period￿in￿which￿ASML's￿actual￿gross￿R&D￿expenditures￿exceed￿a￿minimum￿threshold￿specified￿in￿the￿relevant
Intel￿NRE￿Funding￿Agreement.

The￿NRE￿Funding￿Agreements￿will￿terminate￿on￿December￿31,￿2017￿or￿upon￿pre-payment￿by￿Intel￿of￿the￿aggregate
amount￿of￿funding￿owed￿under￿the￿Intel￿NRE￿Funding￿Agreements.

Development 450mm silicon wafer technology

In￿November￿2013,￿following￿our￿customers’￿decision,￿ASML￿decided￿to￿pause￿the￿development￿of￿450mm￿lithography
systems￿until￿customer￿demand￿and￿the￿timing￿related￿to￿such￿demand￿is￿clear.￿We￿believe￿that￿our￿450mm
development￿activities￿can￿be￿restarted￿if￿and￿when￿the￿industry￿demands￿the￿introduction￿of￿450mm.￿Since￿450mm
requires￿both￿generic￿developments￿and￿wafer￿size-specific￿developments,￿many￿of￿our￿employees￿involved￿in￿the

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450mm￿project￿are￿doing￿work￿that￿is￿just￿as￿relevant￿for￿future￿DUV￿and￿EUV￿platforms.￿The￿teams￿and￿people￿have
therefore￿been￿reassigned￿to￿different￿projects.

Under￿our￿CCIP,￿we￿are￿party￿to￿a￿450mm￿NRE￿Funding￿Agreement￿with￿Intel￿for￿a￿total￿NRE￿funding￿commitment￿of
EUR￿553￿million.￿We￿are￿currently￿in￿discussions￿with￿Intel￿to￿determine￿appropriate￿projects￿to￿which￿to￿apply￿the
450mm￿NRE￿funding.

Under￿the￿CCIP,￿we￿are￿also￿party￿to￿EUV￿NRE￿agreements￿with￿Intel￿(total￿funding￿of￿EUR￿276￿million),￿TSMC￿(total
funding￿of￿EUR￿276￿million)￿and￿Samsung￿(total￿funding￿of￿EUR￿276￿million),￿all￿of￿which￿funding￿is￿being￿used￿for￿EUV
projects.

Cymer Merger Agreement

On￿October￿16,￿2012,￿ASML￿entered￿into￿a￿merger￿agreement￿with￿Cymer,￿a￿company￿engaged￿in￿the￿development,
manufacturing￿and￿marketing￿of￿light￿sources￿for￿sale￿to￿customers￿who￿manufacture￿photolithography￿tools￿in￿the
semiconductor￿equipment￿industry￿(the￿“Merger￿Agreement”).￿The￿Merger￿Agreement￿provided￿for￿the￿acquisition￿of
all￿outstanding￿shares￿of￿Cymer￿by￿a￿wholly-owned￿subsidiary,￿ASML￿US￿inc.,￿an￿indirect￿wholly-owned￿subsidiary
of￿ASML.￿The￿Merger￿Agreement￿also￿contained￿certain￿customary￿representations￿and￿warranties,￿covenants￿and
indemnities.￿The￿transaction￿was￿completed￿on￿May￿30,￿2013,￿in￿accordance￿with￿the￿terms￿of￿the￿Merger￿Agreement,
for￿a￿total￿consideration￿of￿EUR￿3.1￿billion￿(USD￿4.0￿billion).￿See￿Note￿2￿to￿the￿Financial￿Statements.

D. Exchange Controls
There￿are￿currently￿no￿limitations,￿either￿under￿the￿laws￿of￿the￿Netherlands￿or￿in￿the￿Articles￿of￿Association￿of￿ASML,
to￿the￿rights￿of￿non-residents￿to￿hold￿or￿vote￿ordinary￿shares.￿Cash￿distributions,￿if￿any,￿payable￿in￿euros￿on￿our￿shares
listed￿at￿NYSE￿Euronext￿Amsterdam￿may￿be￿officially￿transferred￿by￿a￿bank￿from￿the￿Netherlands￿and￿converted￿into￿any
other￿currency￿without￿being￿subject￿to￿any￿Dutch￿legal￿restrictions.￿However,￿for￿statistical￿purposes,￿such￿payments
and￿transactions￿must￿be￿reported￿by￿ASML￿to￿the￿Dutch￿Central￿Bank.￿Furthermore,￿no￿payments,￿including￿dividend
payments,￿may￿be￿made￿to￿jurisdictions￿subject￿to￿certain￿sanctions,￿adopted￿by￿the￿government￿of￿the￿Netherlands,
implementing￿resolutions￿of￿the￿Security￿Council￿of￿the￿United￿Nations.￿Cash￿distributions,￿if￿any,￿on￿our￿shares￿listed￿at
NASDAQ￿shall￿be￿declared￿in￿euros￿but￿paid￿in￿U.S.￿dollars,￿converted￿at￿the￿rate￿of￿exchange￿at￿the￿close￿of￿business
on￿the￿date￿fixed￿for￿that￿purpose￿by￿the￿Board￿of￿Management￿in￿accordance￿with￿the￿Articles￿of￿Association.

E. Taxation

Dutch Taxation

The￿statements￿below￿represent￿a￿summary￿of￿current￿Dutch￿tax￿laws,￿regulations￿and￿judicial￿interpretations￿thereof.
The￿description￿is￿limited￿to￿the￿material￿tax￿implications￿for￿a￿Non-Resident￿Holder.￿This￿summary￿does￿not￿address
special￿rules￿that￿may￿apply￿to￿special￿classes￿of￿holders￿of￿ordinary￿shares￿and￿should￿not￿be￿read￿as￿extending￿by
implication￿to￿matters￿not￿specifically￿referred￿to￿herein.￿As￿to￿individual￿tax￿consequences,￿each￿investor￿in￿ordinary
shares￿should￿consult￿his￿or￿her￿tax￿counsel.

General
The￿acquisition￿of￿ordinary￿shares￿by￿a￿non-resident￿of￿the￿Netherlands￿should￿not￿be￿treated￿as￿a￿taxable￿event￿for
Dutch￿tax￿purposes.￿The￿income￿consequences￿in￿connection￿with￿owning￿and￿disposing￿of￿our￿ordinary￿shares￿are
discussed￿below.

Substantial Interest
A￿person￿that,￿(inter￿alia)￿directly￿or￿indirectly,￿and￿either￿independently￿or￿jointly￿with￿his￿partner￿(as￿defined￿in￿the
Dutch￿Personal￿Income￿Tax￿Act￿2001),￿owns￿5.0￿percent￿or￿more￿of￿our￿share￿capital,￿owns￿profit￿participating￿rights
that￿correspond￿to￿at￿least￿5.0￿percent￿of￿the￿annual￿profits￿of￿a￿Dutch￿company￿or￿to￿at￿least￿5.0￿percent￿of￿the
liquidation￿proceeds￿of￿such￿company￿or￿holds￿options￿to￿purchase￿5.0￿percent￿or￿more￿of￿our￿share￿capital,￿is￿deemed
to￿have￿a￿substantial￿interest￿in￿our￿shares,￿or￿our￿options,￿as￿applicable.￿Specific￿rules￿apply￿in￿case￿certain￿family
members￿of￿the￿Non-Resident￿Holder￿hold￿a￿substantial￿interest.￿A￿deemed￿substantial￿interest￿also￿exists￿if￿(part￿of)￿a
substantial￿interest￿has￿been￿disposed￿of,￿or￿is￿deemed￿to￿be￿disposed￿of,￿in￿a￿transaction￿where￿no￿taxable￿gain￿has
been￿recognized.￿Special￿attribution￿rules￿exist￿in￿determining￿the￿presence￿of￿a￿substantial￿interest.

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Income Tax Consequences for Individual Non-Resident Holders on Owning and Disposing of the Ordinary Shares
An￿individual￿who￿is￿a￿Non-Resident￿Holder￿will￿not￿be￿subject￿to￿Dutch￿income￿tax￿on￿received￿income￿in￿respect￿of￿our
ordinary￿shares￿or￿capital￿gains￿derived￿from￿the￿sale,￿exchange￿or￿other￿disposition￿of￿our￿ordinary￿shares,￿provided
that￿such￿holder:

• Does￿not￿carry￿on￿and￿has￿not￿carried￿on￿a￿business￿in￿the￿Netherlands￿through￿a￿permanent￿establishment￿or￿a

permanent￿representative￿to￿which￿the￿ordinary￿shares￿are￿attributable;

• Does￿not￿hold￿and￿has￿not￿held￿a￿(deemed)￿substantial￿interest￿in￿our￿share￿capital￿or,￿in￿the￿event￿the￿Non-Resident
Holder￿holds￿or￿has￿held￿a￿(deemed)￿substantial￿interest￿in￿our￿share￿capital,￿such￿interest￿is,￿or￿was,￿a￿business
asset￿in￿the￿hands￿of￿the￿holder;

• Does￿not￿share￿and￿has￿not￿shared￿directly￿(through￿the￿beneficial￿ownership￿of￿ordinary￿shares￿or￿similar￿securities)
in￿the￿profits￿of￿an￿enterprise￿managed￿and￿controlled￿in￿the￿Netherlands￿which￿(is￿deemed￿to)￿own(s),￿or￿(is￿deemed
to￿have)￿has￿owned,￿our￿ordinary￿shares;

• Does￿not￿carry￿out￿and￿has￿not￿carried￿out￿any￿activities￿which￿generate￿taxable￿profit￿or￿taxable￿income￿to￿which￿the

holding￿of￿our￿ordinary￿shares￿was￿connected;￿and
Is￿not￿an￿individual￿that￿has￿elected￿to￿be￿taxed￿as￿a￿resident￿of￿the￿Netherlands.

•

Corporate Income Tax Consequences for Corporate Non-Resident Holders
Income￿derived￿from￿ordinary￿shares￿or￿capital￿gains￿derived￿from￿the￿sale,￿exchange￿or￿disposition￿of￿ordinary￿shares
by￿a￿corporate￿Non-Resident￿Holder￿is￿taxable￿if:

• The￿holder￿carries￿on￿a￿business￿in￿the￿Netherlands￿through￿a￿permanent￿establishment￿or￿a￿permanent￿agent￿in￿the

Netherlands￿(Dutch￿enterprise)￿and￿the￿ordinary￿shares￿are￿attributable￿to￿this￿permanent￿establishment￿or￿permanent
agent,￿unless￿the￿participation￿exemption￿(discussed￿below)￿applies;￿or

• The￿holder￿is￿a￿resident￿of￿Aruba,￿Curacao￿or￿Saint￿Martin￿with￿a￿permanent￿establishment￿or￿permanent

representative￿in￿Bonaire,￿Eustatius￿or￿Saba￿to￿which￿out￿ordinary￿shares￿are￿attributable,￿while￿the￿profits￿of￿such
holder￿are￿taxable￿in￿the￿Netherlands￿pursuant￿to￿article￿17(3)(c)￿of￿the￿Dutch￿Corporate￿Income￿Tax￿Act￿1969;￿or
• The￿holder￿has￿a￿substantial￿interest￿in￿our￿share￿capital,￿which￿is￿held￿with￿the￿primary￿aim￿or￿one￿of￿the￿primary
aims￿to￿evade￿the￿levy￿of￿income￿tax￿or￿dividend￿withholding￿tax￿at￿the￿level￿of￿another￿person￿and￿which￿is￿not
attributable￿to￿his￿enterprise;￿or

• Certain￿assets￿of￿the￿holder￿are￿deemed￿to￿be￿treated￿as￿a￿Dutch￿enterprise￿under￿Dutch￿tax￿law￿and￿the￿ordinary

shares￿are￿attributable￿to￿this￿Dutch￿enterprise.

To￿qualify￿for￿the￿Dutch￿participation￿exemption,￿the￿holder￿must￿generally￿hold￿at￿least￿5.0￿percent￿of￿our￿nominal￿paid-
in￿capital￿and￿meet￿certain￿other￿requirements.

Dividend Withholding Tax
In￿general,￿a￿dividend￿distributed￿by￿us￿in￿respect￿of￿our￿ordinary￿shares￿will￿be￿subject￿to￿a￿withholding￿tax￿imposed￿by
the￿Netherlands￿at￿the￿statutory￿rate￿of￿15.0￿percent.
Dividends￿include:
• Dividends￿in￿cash￿and￿in￿kind;
• Deemed￿and￿constructive￿dividends;
• Consideration￿for￿the￿repurchase￿or￿redemption￿of￿ordinary￿shares￿(including￿a￿purchase￿by￿a￿direct￿or￿indirect￿ASML
subsidiary)￿in￿excess￿of￿qualifying￿average￿paid-in￿capital￿unless￿such￿repurchase￿is￿made￿for￿temporary￿investment
purposes￿or￿is￿exempt￿by￿law;

• Stock￿dividends￿up￿to￿their￿nominal￿value￿(unless￿distributed￿out￿of￿qualifying￿paid-in￿capital);
• Any￿(partial)￿repayment￿of￿paid-in￿capital￿not￿qualifying￿as￿capital￿for￿Dutch￿dividend￿withholding￿tax￿purposes;￿and
• Liquidation￿proceeds￿in￿excess￿of￿qualifying￿average￿paid-in￿capital￿for￿Dutch￿dividend￿withholding￿tax￿purposes.

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A￿reduction￿of￿Dutch￿dividend￿withholding￿tax￿can￿be￿obtained￿if:

• The￿participation￿exemption￿applies￿and￿the￿ordinary￿shares￿are￿attributable￿to￿a￿business￿carried￿out￿in￿the

Netherlands;

• The￿dividends￿are￿distributed￿to￿a￿qualifying￿EU￿corporate￿holder￿satisfying￿the￿conditions￿of￿article￿4(2)￿and￿4(3)￿of

the￿Dutch￿Dividend￿Withholding￿Tax￿Act￿1965;￿or

• The￿rate￿is￿reduced￿by￿a￿Tax￿Treaty.

A￿Non-Resident￿Holder￿of￿ordinary￿shares￿can￿be￿eligible￿for￿a￿partial￿or￿complete￿exemption￿or￿refund￿of￿all￿or￿a￿portion
of￿the￿above￿withholding￿tax￿under￿a￿Tax￿Treaty￿that￿is￿in￿effect￿between￿the￿Netherlands￿and￿the￿Non-Resident￿Holder’s
country￿of￿residence.￿The￿Netherlands￿has￿concluded￿such￿treaties￿with￿the￿United￿States,￿Canada,￿Switzerland,￿Japan,
most￿European￿Union￿member￿states,￿as￿well￿as￿many￿other￿countries.￿Under￿the￿Treaty￿,￿dividends￿paid￿by￿us￿to￿a￿Non-
Resident￿Holder￿that￿is￿a￿resident￿of￿the￿United￿States￿as￿defined￿in￿the￿Tax￿Treaty￿(other￿than￿an￿exempt￿organization
or￿exempt￿pension￿trust,￿as￿discussed￿below)￿are￿generally￿liable￿to￿15.0￿percent￿Dutch￿withholding￿tax￿or,￿in￿the￿case
of￿certain￿United￿States￿corporate￿shareholders￿owning￿at￿least￿10.0￿percent￿of￿our￿voting￿power,￿a￿reduction￿to￿5.0
percent,￿provided￿that￿the￿Holder￿does￿not￿have￿an￿enterprise￿or￿an￿interest￿in￿an￿enterprise￿that￿is,￿in￿whole￿or￿in￿part,
carried￿on￿through￿a￿permanent￿establishment￿or￿permanent￿representative￿in￿the￿Netherlands￿to￿which￿the￿dividends
are￿attributable.￿The￿Tax￿Treaty￿also￿provides￿for￿a￿dividend￿withholding￿tax￿exemption￿on￿dividends,￿but￿only￿for￿a
shareholders￿owning￿at￿least￿80.0￿percent￿of￿our￿voting￿power￿and￿meeting￿all￿other￿requirements.￿The￿Tax￿Treaty
provides￿for￿a￿complete￿exemption￿from￿tax￿on￿dividends￿received￿by￿exempt￿pension￿trusts￿and￿exempt￿organizations,
as￿defined￿therein.￿Except￿in￿the￿case￿of￿exempt￿organizations,￿the￿reduced￿dividend￿withholding￿tax￿rate￿(or￿exemption
from￿withholding)￿can￿be￿applied￿at￿the￿source￿upon￿payment￿of￿the￿dividends,￿provided￿that￿the￿proper￿forms￿have
been￿filed￿in￿advance￿of￿the￿payment.￿Exempt￿organizations￿remain￿subject￿to￿the￿statutory￿withholding￿rate￿of￿15.0
percent￿and￿are￿required￿to￿file￿for￿a￿refund￿of￿such￿withholding.
A￿Non-Resident￿Holder￿may￿not￿claim￿the￿benefits￿of￿the￿Tax￿Treaty￿unless￿(i)￿he/she￿is￿a￿resident￿of￿the￿United￿States
of￿America￿as￿defined￿therein,￿or￿(ii)￿he/she￿is￿deemed￿to￿be￿a￿resident￿on￿the￿basis￿of￿the￿provisions￿of￿article￿24(4)￿of
the￿Tax￿Treaty,￿and￿(iii)￿his￿or￿her￿entitlement￿to￿those￿benefits￿is￿not￿limited￿by￿the￿provisions￿of￿article￿26￿(limitation￿on
benefits)￿of￿the￿Tax￿Treaty.

Dividend Stripping Rules
Under￿Dutch￿tax￿legislation￿regarding￿anti-dividend￿stripping,￿no￿exemption￿from,￿or￿refund￿of,￿Dutch￿dividend
withholding￿tax￿is￿granted￿if￿the￿recipient￿of￿dividends￿paid￿by￿us￿is￿not￿considered￿the￿beneficial￿owner￿of￿such
dividends.

Gift or Inheritance Taxes
Dutch￿gift￿or￿inheritance￿taxes￿will￿not￿be￿levied￿on￿the￿transfer￿of￿ordinary￿shares￿by￿way￿of￿gift,￿or￿upon￿the￿death￿of￿a
Non-Resident￿Holder,￿unless:

(1)￿The￿transfer￿is￿construed￿as￿an￿inheritance￿or￿as￿a￿gift￿made￿by￿or￿on￿behalf￿of￿a￿person￿who,￿at￿the￿time￿of￿the￿gift￿or
death,￿is￿deemed￿to￿be,￿resident￿of￿the￿Netherlands;￿or

(2)￿The￿ordinary￿shares￿are￿attributable￿to￿an￿enterprise￿or￿part￿thereof￿that￿is￿carried￿on￿through￿a￿permanent
establishment￿or￿a￿permanent￿representative￿in￿the￿Netherlands.

Gift￿tax￿and￿inheritance￿tax￿are￿levied￿on￿the￿beneficiary.￿For￿purposes￿of￿Dutch￿gift￿and￿inheritance￿tax,￿an￿individual
of￿Dutch￿nationality￿is￿deemed￿to￿be￿a￿resident￿of￿the￿Netherlands￿if￿he￿has￿been￿a￿resident￿thereof￿at￿any￿time￿during
the￿ten￿years￿preceding￿the￿time￿of￿the￿gift￿or￿death.￿For￿purposes￿of￿Dutch￿gift￿tax,￿a￿person￿not￿possessing￿Dutch
nationality￿is￿deemed￿to￿be￿a￿resident￿of￿the￿Netherlands￿if￿he/she￿has￿resided￿therein￿at￿any￿time￿in￿the￿twelve￿months
preceding￿the￿gift.

Value Added Tax
No￿Dutch￿value￿added￿tax￿is￿imposed￿on￿dividends￿in￿respect￿of￿our￿ordinary￿shares￿or￿on￿the￿transfer￿of￿our￿shares.

Residence
A￿Non-Resident￿Holder￿will￿not￿become￿resident,￿or￿be￿deemed￿to￿be￿resident,￿in￿the￿Netherlands￿solely￿as￿a￿result￿of
holding￿our￿ordinary￿shares￿or￿of￿the￿execution,￿performance,￿delivery￿and/or￿enforcement￿of￿rights￿in￿respect￿of￿our
ordinary￿shares.

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United States Taxation
The￿following￿is￿a￿discussion￿of￿the￿material￿United￿States￿federal￿income￿tax￿consequences￿relating￿to￿the￿acquisition,
ownership￿and￿disposition￿of￿Ordinary￿Shares￿by￿a￿United￿States￿Holder￿(as￿defined￿below)￿acting￿in￿the￿capacity￿of￿a
beneficial￿owner￿who￿is￿not￿a￿tax￿resident￿of￿the￿Netherlands.￿This￿discussion￿deals￿only￿with￿Ordinary￿Shares￿held￿as
capital￿assets￿and￿does￿not￿deal￿with￿the￿tax￿consequences￿applicable￿to￿all￿categories￿of￿investors,￿some￿of￿which
(such￿as￿tax-exempt￿entities,￿financial￿institutions,￿regulated￿investment￿companies,￿dealers￿in￿securities/traders￿in
securities￿that￿elect￿a￿mark-to-market￿method￿of￿accounting￿for￿securities￿holdings,￿insurance￿companies,￿investors
owning￿directly,￿indirectly￿or￿constructively￿10.0￿percent￿or￿more￿of￿our￿outstanding￿voting￿shares,￿investors￿who￿hold
Ordinary￿Shares￿as￿part￿of￿hedging￿or￿conversion￿transactions￿and￿investors￿whose￿functional￿currency￿is￿not￿the￿U.S.
dollar)￿may￿be￿subject￿to￿special￿rules.￿In￿addition,￿the￿discussion￿does￿not￿address￿any￿alternative￿minimum￿tax￿or￿any
state,￿local,￿FIRPTA￿related￿United￿States￿federal￿income￿tax￿consequences,￿or￿non-United￿States￿tax￿consequences.

This￿discussion￿is￿based￿on￿the￿Tax￿Treaty￿and￿the￿Internal￿Revenue￿Code￿of￿1986,￿as￿amended￿to￿the￿date￿hereof,￿final,
temporary￿and￿proposed￿Treasury￿Department￿regulations￿promulgated,￿and￿administrative￿and￿judicial￿interpretations
thereof,￿changes￿to￿any￿of￿which￿subsequent￿to￿the￿date￿hereof,￿possibly￿with￿retroactive￿effect,￿may￿affect￿the￿tax
consequences￿described￿herein.￿In￿addition,￿there￿can￿be￿no￿assurance￿that￿the￿IRS￿will￿not￿challenge￿one￿or￿more￿of
the￿tax￿consequences￿described￿herein,￿and￿we￿have￿not￿obtained,￿nor￿do￿we￿intend￿to￿obtain,￿a￿ruling￿from￿the￿IRS￿or
an￿opinion￿of￿counsel￿with￿respect￿to￿the￿United￿States￿federal￿income￿tax￿consequences￿of￿acquiring￿or￿holding￿shares.
Prospective￿purchasers￿of￿Ordinary￿Shares￿are￿advised￿to￿consult￿their￿tax￿advisers￿with￿respect￿to￿their￿particular
circumstances￿and￿with￿respect￿to￿the￿effects￿of￿United￿States￿federal,￿state,￿local￿or￿non-United￿States￿tax￿laws￿to
which￿they￿may￿be￿subject.

As￿used￿herein,￿the￿term￿‘United￿States￿Holder’￿means￿a￿beneficial￿owner￿of￿Ordinary￿Shares￿for￿United￿States￿federal
income￿tax￿purposes￿whose￿holding￿of￿such￿Ordinary￿Shares￿does￿not￿form￿part￿of￿the￿business￿property￿or￿assets￿of￿a
permanent￿establishment￿or￿fixed￿base￿in￿the￿Netherlands;￿who￿is￿fully￿entitled￿to￿the￿benefits￿of￿the￿Treaty￿in￿respect￿of
such￿Ordinary￿Shares;￿and￿is:

• An￿individual￿citizen￿or￿tax￿resident￿of￿the￿United￿States;
• A￿corporation￿or￿other￿entity￿treated￿as￿a￿corporation￿for￿United￿States￿federal￿income￿tax￿purposes￿created￿or

organized￿in￿or￿under￿the￿laws￿of￿the￿United￿States￿or￿of￿any￿political￿subdivision￿thereof;

• An￿estate￿of￿which￿the￿income￿is￿subject￿to￿United￿States￿federal￿income￿taxation￿regardless￿of￿its￿source;￿or
• A￿trust￿whose￿administration￿is￿subject￿to￿the￿primary￿supervision￿of￿a￿court￿within￿the￿United￿States￿and￿which￿has

one￿or￿more￿United￿States￿persons￿who￿have￿the￿authority￿to￿control￿all￿of￿its￿substantial￿decisions.

If￿an￿entity￿treated￿as￿a￿partnership￿for￿United￿States￿federal￿income￿tax￿purposes￿owns￿ordinary￿shares,￿the￿United
States￿federal￿income￿tax￿treatment￿of￿a￿partner￿in￿such￿partnership￿will￿generally￿depend￿upon￿the￿status￿and￿tax
residency￿of￿the￿partner￿and￿the￿activities￿of￿the￿partnership.￿A￿partnership￿that￿owns￿Ordinary￿Shares￿and￿the￿partners
in￿such￿partnership￿should￿consult￿their￿tax￿advisors￿about￿the￿United￿States￿federal￿income￿tax￿consequences￿of
holding￿and￿disposing￿of￿the￿ordinary￿Shares.

Passive Foreign Investment Company Considerations
We￿believe￿we￿were￿not￿a￿PFIC￿for￿US￿federal￿income￿tax￿purposes￿in￿2012￿and￿that￿it￿will￿not￿be￿a￿PFIC￿in￿2013.
However,￿as￿PFIC￿status￿is￿a￿factual￿matter￿that￿must￿be￿determined￿annually￿at￿the￿close￿of￿each￿taxable￿year,￿there
can￿be￿no￿certainty￿as￿to￿our￿actual￿PFIC￿status￿in￿any￿particular￿year￿until￿the￿close￿of￿the￿taxable￿year￿in￿question.￿We
have￿not￿conducted￿a￿detailed￿study￿at￿this￿time￿to￿confirm￿its￿non-PFIC￿status.￿If￿we￿were￿treated￿as￿a￿PFIC￿in￿any￿year
during￿which￿a￿United￿States￿Holder￿owned￿common￿shares,￿certain￿adverse￿tax￿consequences￿could￿apply.￿Investors
should￿consult￿their￿tax￿advisors￿with￿respect￿to￿any￿PFIC￿considerations.

Taxation￿of￿Dividends
United￿States￿Holders￿should￿generally￿include￿in￿gross￿income,￿as￿foreign-source￿dividend￿income￿the￿gross￿amount
of￿any￿non-liquidating￿distribution￿(before￿reduction￿for￿Dutch￿withholding￿taxes)￿we￿makes￿out￿of￿our￿current￿or
accumulated￿earnings￿and￿profits￿(as￿determined￿for￿United￿States￿federal￿income￿tax￿purposes)￿when￿the￿distribution
is￿actually￿or￿constructively￿received￿by￿the￿United￿States￿Holder.￿Distributions￿will￿not￿be￿eligible￿for￿the￿dividends-
received￿deduction￿generally￿allowed￿to￿United￿States￿corporations￿in￿respect￿of￿dividends￿received￿from￿other￿United
States￿corporations.￿The￿amount￿of￿the￿dividend￿distribution￿includible￿in￿income￿of￿a￿United￿States￿Holder￿should￿be
the￿U.S.￿dollar￿value￿of￿the￿foreign￿currency￿(e.g.￿euros)￿paid,￿determined￿by￿the￿spot￿rate￿of￿exchange￿on￿the￿date￿of￿the
distribution,￿regardless￿of￿whether￿the￿payment￿is￿in￿fact￿converted￿into￿U.S.￿dollars.￿Distributions￿in￿excess￿of￿current
and￿accumulated￿earnings￿and￿profits,￿as￿determined￿for￿United￿States￿federal￿income￿tax￿purposes,￿will￿be￿treated
as￿a￿non-taxable￿return￿of￿capital￿to￿the￿extent￿of￿the￿United￿States￿Holder’s￿US￿tax￿basis￿in￿the￿Ordinary￿Shares￿and
thereafter￿as￿taxable￿capital￿gain.￿We￿presently￿do￿not￿maintain￿calculations￿of￿our￿earnings￿and￿profits￿under￿United
States￿federal￿income￿tax￿principles.￿If￿we￿do￿not￿report￿to￿a￿United￿States￿Holder￿the￿portion￿of￿a￿distribution￿that

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exceeds￿earnings￿and￿profits,￿the￿distribution￿will￿generally￿be￿taxable￿as￿a￿dividend￿even￿if￿that￿distribution￿would
otherwise￿be￿treated￿as￿a￿non-taxable￿return￿of￿capital￿or￿as￿capital￿gain￿under￿the￿rules￿described￿above.

Subject￿to￿limitations￿provided￿in￿the￿United￿States￿Internal￿Revenue￿Code,￿a￿United￿States￿Holder￿may￿generally
deduct￿from￿its￿United￿States￿federal￿taxable￿income,￿or￿credit￿against￿its￿United￿States￿federal￿income￿tax￿liability,
the￿amount￿of￿qualified￿Dutch￿withholding￿taxes.￿However,￿Dutch￿withholding￿tax￿may￿be￿credited￿only￿if￿the￿United
States￿Holder￿does￿not￿claim￿a￿deduction￿for￿any￿Dutch￿or￿other￿non-United￿States￿taxes￿paid￿or￿accrued￿in￿that￿year.
In￿addition,￿Dutch￿dividend￿withholding￿taxes￿will￿likely￿not￿be￿creditable￿against￿the￿United￿States￿Holder’s￿United
States￿tax￿liability￿to￿the￿extent￿we￿are￿not￿required￿to￿pay￿over￿the￿amount￿withheld￿to￿the￿Dutch￿Tax￿Administration.
Currently,￿a￿Dutch￿corporation￿that￿receives￿dividends￿from￿qualifying￿non-Dutch￿subsidiaries￿may￿credit￿source￿country
tax￿withheld￿from￿those￿dividends￿against￿Dutch￿withholding￿tax￿imposed￿on￿a￿dividend￿paid￿by￿a￿Dutch￿corporation,￿up
to￿a￿maximum￿of￿3.0￿percent￿of￿the￿dividend￿paid￿by￿the￿Dutch￿corporation.￿The￿credit￿reduces￿the￿amount￿of￿dividend
withholding￿that￿we￿are￿required￿to￿pay￿to￿the￿Dutch￿Tax￿Administration￿but￿does￿not￿reduce￿the￿amount￿of￿tax￿we￿are
required￿to￿withhold￿from￿dividends.

For￿US￿foreign￿tax￿credit￿purposes,￿dividends￿paid￿by￿us￿generally￿will￿be￿treated￿as￿foreign-source￿income￿and￿as
‘passive￿category￿income’￿(or￿in￿the￿case￿of￿certain￿holders,￿as￿‘general￿category￿income’).￿Gains￿or￿losses￿realized￿by￿a
United￿States￿Holder￿on￿the￿sale￿or￿exchange￿of￿Ordinary￿Shares￿generally￿will￿be￿treated￿as￿US-source￿gain￿or￿loss.￿The
rules￿governing￿the￿foreign￿tax￿credit￿are￿complex￿and￿we￿suggest￿that￿each￿United￿States￿Holder￿consult￿his￿or￿her￿own
tax￿advisor￿to￿determine￿whether,￿and￿to￿what￿extent,￿a￿foreign￿tax￿credit￿will￿be￿available.

Dividends￿received￿by￿a￿United￿States￿Holder￿will￿generally￿be￿taxed￿at￿ordinary￿income￿tax￿rates.￿However,￿the￿Jobs
and￿Growth￿Tax￿Reconciliation￿Act￿of￿2003,￿as￿amended￿by￿the￿Tax￿Increase￿and￿Prevention￿Act￿of￿2005￿and￿the￿Tax
Relief,￿Unemployment￿Insurance￿Reauthorization,￿and￿Job￿Creation￿Act￿of￿2010￿￿reduce￿to￿15.0￿percent￿the￿maximum
tax￿rate￿for￿certain￿dividends￿received￿by￿individuals￿through￿taxable￿years￿beginning￿on￿or￿before￿December￿31,
2012,￿so￿long￿as￿certain￿exclusions￿do￿not￿apply￿and￿the￿stock￿has￿been￿held￿for￿at￿least￿60￿days￿during￿the￿121-
day￿period￿beginning￿60￿days￿before￿the￿ex-dividend￿date.￿Dividends￿received￿from￿‘qualified￿foreign￿corporations’
generally￿qualify￿for￿the￿reduced￿rate.￿A￿non-United￿States￿corporation￿(other￿than￿a￿PFIC)￿generally￿will￿be￿considered
to￿be￿a￿qualified￿foreign￿corporation￿if:￿(i)￿the￿shares￿of￿the￿non-United￿States￿corporation￿are￿readily￿tradable￿on￿an
established￿securities￿market￿in￿the￿United￿States￿or￿(ii)￿the￿non-United￿States￿corporation￿is￿eligible￿for￿the￿benefits￿of
a￿comprehensive￿income￿tax￿treaty￿with￿the￿United￿States￿that￿has￿been￿identified￿as￿a￿qualifying￿treaty￿and￿contains
an￿exchange￿of￿information￿program.￿Individual￿United￿States￿Holders￿should￿consult￿their￿tax￿advisors￿regarding￿the
impact￿of￿this￿provision￿on￿their￿particular￿situations.

Dividends￿paid￿by￿us￿generally￿will￿constitute￿‘portfolio￿income’￿for￿purposes￿of￿the￿limitations￿on￿the￿use￿of￿passive
activity￿losses￿(and,￿therefore,￿generally￿may￿not￿be￿offset￿by￿passive￿activity￿losses)￿and￿as￿‘investment￿income’￿for
purposes￿of￿the￿limitation￿on￿the￿deduction￿of￿investment￿interest￿expense.

Taxation￿on￿Sale￿or￿Other￿Disposition￿of￿Ordinary￿Shares
Upon￿a￿sale￿or￿other￿disposition￿of￿Ordinary￿Shares,￿a￿United￿States￿Holder￿will￿generally￿recognize￿capital￿gain￿or￿loss
for￿United￿States￿federal￿income￿tax￿purposes￿in￿an￿amount￿equal￿to￿the￿difference￿between￿the￿amount￿realized,￿if￿paid
in￿US￿dollars,￿or￿the￿U.S.￿dollar￿value￿of￿the￿amount￿realized￿(determined￿at￿the￿spot￿rate￿on￿the￿settlement￿date￿of￿the
sale)￿if￿proceeds￿are￿paid￿in￿currency￿other￿than￿the￿U.S.￿dollar,￿as￿the￿case￿may￿be,￿and￿the￿United￿States￿Holder’s￿US
tax￿basis￿(determined￿in￿U.S.￿dollars)￿in￿such￿Ordinary￿Shares.￿Generally,￿the￿capital￿gain￿or￿loss￿will￿be￿long-term￿capital
gain￿or￿loss￿if￿the￿holding￿period￿of￿the￿United￿States￿Holder￿in￿the￿Ordinary￿Shares￿exceeds￿one￿year￿at￿the￿time￿of￿the
sale￿or￿other￿disposition.￿The￿deductibility￿of￿capital￿losses￿is￿subject￿to￿limitations￿for￿United￿States￿federal￿income￿tax
purposes.￿Gain￿or￿loss￿from￿the￿sale￿or￿other￿disposition￿of￿Ordinary￿Shares￿generally￿will￿be￿treated￿as￿United￿States
source￿income￿or￿loss￿for￿United￿States￿foreign￿tax￿credit￿purposes.￿Generally,￿any￿gain￿or￿loss￿resulting￿from￿currency
fluctuations￿during￿the￿period￿between￿the￿date￿of￿the￿sale￿of￿the￿Ordinary￿Shares￿and￿the￿date￿the￿sale￿proceeds￿are
converted￿into￿U.S.￿dollars￿will￿be￿treated￿as￿ordinary￿income￿or￿loss￿from￿sources￿within￿the￿United￿States.￿Each￿United
States￿Holder￿should￿consult￿his￿or￿her￿tax￿advisor￿with￿regard￿to￿the￿translation￿rules￿applicable￿when￿computing￿its
adjusted￿US￿tax￿basis￿and￿the￿amount￿realized￿upon￿a￿sale￿or￿other￿disposition￿of￿its￿Ordinary￿Shares￿if￿purchased￿in,￿or
sold￿or￿disposed￿of￿for,￿a￿currency￿other￿than￿U.S.￿dollar.

Information￿Reporting￿and￿Backup￿Withholding
Information￿returns￿may￿be￿filed￿with￿the￿IRS￿in￿connection￿with￿payments￿on￿the￿Ordinary￿Shares￿or￿proceeds￿from￿a
sale,￿redemption￿or￿other￿disposition￿of￿the￿Ordinary￿Shares.￿A￿‘backup￿withholding’￿tax￿may￿be￿applied￿to,￿and￿withheld
from,￿these￿payments￿if￿the￿beneficial￿owner￿fails￿to￿provide￿a￿correct￿taxpayer￿identification￿number￿to￿the￿paying￿agent
and￿to￿comply￿with￿certain￿certification￿procedures￿or￿otherwise￿establish￿an￿exemption￿from￿backup￿withholding.￿Any
amounts￿withheld￿under￿the￿backup￿withholding￿rules￿might￿be￿refunded￿(or￿credited￿against￿the￿beneficial￿owner’s

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55

United￿States￿federal￿income￿tax￿liability,￿if￿any)￿depending￿on￿the￿facts￿and￿provided￿that￿the￿required￿information￿is
furnished￿to￿the￿IRS.

The￿discussion￿set￿out￿above￿is￿included￿for￿general￿information￿only￿and￿may￿not￿be￿applicable￿depending￿upon￿a
holder’s￿particular￿situation.￿Holders￿should￿consult￿their￿tax￿advisors￿with￿respect￿to￿the￿tax￿consequences￿to￿them￿of
the￿purchase,￿ownership￿and￿disposition￿of￿shares￿including￿the￿tax￿consequences￿under￿state,￿local￿and￿other￿tax￿laws
and￿the￿possible￿effects￿of￿changes￿in￿United￿States￿federal￿and￿other￿tax￿laws.

F. Dividends and Paying Agents
Not￿applicable.

G. Statement by Experts
Not￿applicable.

H. Documents on Display
We￿are￿subject￿to￿certain￿reporting￿requirements￿of￿the￿Exchange￿Act.￿As￿a￿"foreign￿private￿issuer",￿we￿are￿exempt￿from
the￿rules￿under￿the￿Exchange￿Act￿prescribing￿certain￿disclosure￿and￿procedural￿requirements￿for￿proxy￿solicitations,
and￿our￿officers,￿directors￿and￿principal￿shareholders￿are￿exempt￿from￿the￿reporting￿and￿"short-swing"￿profit￿recovery
provisions￿contained￿in￿Section￿16￿of￿the￿Exchange￿Act,￿with￿respect￿to￿their￿purchases￿and￿sales￿of￿shares.￿In￿addition,
we￿are￿not￿required￿to￿file￿reports￿and￿Financial￿Statements￿with￿the￿Commission￿as￿frequently￿or￿as￿promptly￿as
companies￿that￿are￿not￿foreign￿private￿issuers￿whose￿securities￿are￿registered￿under￿the￿Exchange￿Act.￿However,￿we￿are
required￿to￿file￿with￿the￿Commission,￿within￿four￿months￿after￿the￿end￿of￿each￿fiscal￿year,￿an￿Annual￿Report￿on￿Form￿20-
F￿containing￿Financial￿Statements￿audited￿by￿an￿independent￿accounting￿firm￿and￿interactive￿data￿comprising￿Financial
Statements￿in￿extensible￿business￿reporting￿language.￿We￿publish￿unaudited￿interim￿financial￿information￿after￿the￿end
of￿each￿quarter.￿We￿furnish￿this￿quarterly￿financial￿information￿to￿the￿Commission￿under￿cover￿of￿a￿Form￿6-K.

Documents￿we￿file￿with￿the￿Commission￿are￿publicly￿available￿at￿its￿public￿reference￿room￿at￿100￿F￿Street,￿N.E.,
Washington,￿DC￿20549.￿The￿Commission￿also￿maintains￿a￿website￿that￿contains￿reports￿and￿other￿information
regarding￿registrants￿that￿are￿required￿to￿file￿electronically￿with￿the￿Commission.￿The￿address￿of￿this￿website￿is￿http://
www.sec.gov.￿Please￿call￿the￿Commission￿at￿1-800-SEC-0330￿for￿further￿information￿on￿the￿operation￿of￿the￿public
reference￿facilities.

I. Subsidiary Information
See￿Item￿4.C.￿"Organizational￿Structure".

Item 11 Quantitative and Qualitative Disclosures About Market Risk

We￿are￿exposed￿to￿certain￿financial￿risks￿such￿as￿market￿risk￿(including￿foreign￿currency￿exchange￿risk￿and￿interest￿rate
risk),￿credit￿risk,￿liquidity￿risk￿and￿capital￿risk.￿Our￿overall￿risk￿management￿program￿focuses￿on￿the￿unpredictability
of￿financial￿markets￿and￿seeks￿to￿minimize￿potentially￿adverse￿effects￿on￿our￿financial￿performance.￿We￿use￿derivative
financial￿instruments￿to￿hedge￿certain￿risk￿exposures.￿None￿of￿our￿transactions￿are￿entered￿into￿for￿trading￿or
speculative￿purposes.￿We￿believe￿that￿market￿information￿is￿the￿most￿reliable￿and￿transparent￿measure￿for￿our￿derivative
financial￿instruments￿that￿are￿measured￿at￿fair￿value.￿To￿mitigate￿the￿risk￿that￿any￿of￿our￿counterparties￿in￿hedging
transactions￿is￿unable￿to￿meets￿its￿obligations,￿we￿only￿enter￿into￿transactions￿with￿a￿limited￿number￿of￿major￿financial
institutions￿that￿have￿good￿credit￿ratings￿and￿closely￿monitor￿the￿creditworthiness￿of￿our￿counterparties.￿Concentration
risk￿is￿mitigated￿by￿limiting￿the￿exposure￿to￿a￿single￿counterparty.￿Our￿risk￿management￿program￿focuses￿appropriately
on￿the￿current￿environment￿of￿uncertainty￿in￿the￿financial￿markets,￿especially￿in￿the￿euro-zone.

Foreign￿Currency￿Risk￿Management
Our￿sales￿are￿predominately￿denominated￿in￿euros.￿Exceptions￿may￿occur￿on￿a￿customer￿by￿customer￿basis.￿Our￿cost￿of
sales￿and￿other￿expenses￿are￿mainly￿denominated￿in￿euros,￿to￿a￿certain￿extent￿in￿U.S.￿dollars￿and￿Japanese￿Yen￿and￿to￿a
limited￿extent￿in￿other￿currencies.￿Therefore,￿we￿are￿exposed￿to￿foreign￿currency￿exchange￿risks.

It￿is￿our￿policy￿to￿hedge￿material￿transaction￿exposures,￿such￿as￿forecasted￿sales￿and￿purchase￿transactions,￿and
material￿net￿remeasurement￿exposures,￿such￿as￿accounts￿receivable￿and￿payable.￿We￿hedge￿these￿exposures￿through
the￿use￿of￿foreign￿exchange￿contracts.￿It￿is￿our￿policy￿not￿to￿hedge￿currency￿translation￿exposures￿resulting￿from￿net
equity￿investments￿in￿foreign￿subsidiaries.

Details￿of￿the￿forward￿foreign￿exchange￿contracts￿and￿hedging￿activities￿are￿included￿in￿Note￿4￿to￿the￿Financial
Statements.

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Interest￿Rate￿Risk￿Management
We￿have￿interest-bearing￿assets￿and￿liabilities￿that￿expose￿us￿to￿fluctuations￿in￿market￿interest￿rates.￿We￿use￿interest
rate￿swaps￿to￿align￿the￿interest-typical￿terms￿of￿interest-bearing￿liabilities￿with￿the￿interest-typical￿terms￿of￿interest-
bearing￿assets.￿There￿may￿be￿residual￿interest￿rate￿risk￿to￿the￿extent￿the￿asset￿and￿liability￿positions￿do￿not￿fully￿offset.

As￿part￿of￿our￿hedging￿policy,￿we￿use￿interest￿rate￿swaps￿to￿hedge￿changes￿in￿fair￿value￿of￿our￿Eurobonds￿due￿to
changes￿in￿market￿interest￿rates,￿thereby￿offsetting￿the￿variability￿of￿future￿interest￿receipts￿on￿part￿of￿our￿cash￿and￿cash
equivalents.

Furthermore,￿as￿part￿of￿our￿hedging￿policy,￿we￿use￿interest￿rate￿swaps￿to￿hedge￿the￿variability￿of￿future￿interest￿cash
flows￿relating￿to￿certain￿of￿our￿operating￿lease￿obligations.

Details￿of￿the￿interest￿rate￿swaps￿and￿hedging￿activities￿are￿included￿in￿Note￿4￿to￿the￿Financial￿Statements.

Financial￿Instruments
We￿use￿foreign￿exchange￿contracts￿to￿manage￿our￿foreign￿currency￿risk￿and￿interest￿rate￿swaps￿to￿manage￿our￿interest
rate￿risk.￿The￿following￿table￿summarizes￿the￿notional￿amounts￿and￿estimated￿fair￿values￿of￿our￿derivative￿financial
instruments:

(in thousands)
Forward￿foreign￿exchange￿contracts¹
Interest￿rate￿swaps²

As of December 31 Notional amount
EUR
986,986
1,013,053

Fair Value Notional amount
EUR
262,146
624,900

EUR
8,583
51,385

Fair Value
EUR
16,805
124,050

2013

2012

1

2

Relates￿to￿forward￿contracts￿assigned￿as￿a￿hedge￿to￿forecasted￿sales￿and￿purchase￿transactions￿and￿to￿monetary￿assets￿and￿liabilities,￿mainly￿in￿U.S.
dollar￿and￿Japanese￿Yen.
Relates￿to￿interest￿rate￿swaps￿assigned￿as￿a￿hedge￿to￿interest￿bearing￿assets￿and￿liabilities,￿mainly￿related￿to￿our￿Eurobonds.￿The￿fair￿value￿of￿the
interest￿rate￿swaps￿includes￿accrued￿interest.￿The￿increase￿in￿notional￿amount￿is￿mainly￿explained￿by￿the￿net￿increase￿in￿our￿Eurobonds￿which￿serve
as￿hedged￿items.￿The￿net￿decrease￿in￿fair￿value￿is￿mainly￿explained￿by￿the￿unwinding￿of￿part￿of￿the￿Interest￿rate￿swaps￿relating￿to￿our￿EUR￿600￿million
5.75￿percent￿senior￿notes.￿See￿note￿15￿to￿the￿Financial￿Statements.

The￿valuation￿technique￿used￿to￿determine￿the￿fair￿value￿of￿forward￿foreign￿exchange￿contracts￿(used￿for￿hedging
purposes)￿approximates￿the￿Net￿Present￿Value￿technique,￿which￿is￿the￿estimated￿amount￿that￿a￿bank￿would￿receive￿or
pay￿to￿terminate￿the￿forward￿foreign￿exchange￿contracts￿at￿the￿reporting￿date,￿taking￿into￿account￿current￿interest￿rates
and￿current￿exchange￿rates.

The￿valuation￿technique￿used￿to￿determine￿the￿fair￿value￿of￿interest￿rate￿swaps￿(used￿for￿hedging￿purposes)￿is￿the
Net￿Present￿Value￿technique,￿which￿is￿the￿estimated￿amount￿that￿a￿bank￿would￿receive￿or￿pay￿to￿terminate￿the￿swap
agreements￿at￿the￿reporting￿date,￿taking￿into￿account￿current￿interest￿rates.

Sensitivity￿Analysis￿Financial￿Instruments

Foreign Currency Sensitivity
We￿are￿mainly￿exposed￿to￿fluctuations￿in￿exchange￿rates￿between￿the￿euro￿and￿the￿U.S.￿dollar￿and￿the￿euro￿and￿the
Japanese￿Yen.￿The￿following￿table￿details￿our￿sensitivity￿to￿a￿10.0￿percent￿strengthening￿of￿foreign￿currencies￿against
the￿euro.￿The￿sensitivity￿analysis￿includes￿foreign￿currency￿denominated￿monetary￿items￿outstanding￿and￿adjusts￿their
translation￿at￿the￿period￿end￿for￿a￿10.0￿percent￿strengthening￿in￿foreign￿currency￿rates.￿A￿positive￿amount￿indicates￿an
increase￿in￿income￿before￿income￿taxes￿or￿OCI,￿as￿shown.

2013

2012

(in thousands)
U.S.￿dollar
Japanese￿yen
Taiwanese￿dollar
Other￿currencies
Total

Impact on income
before income taxes
EUR
(15,801)
183
(7,692)
(9,281)
(32,591)

Impact on OCI

EUR
21,059
913
-
-
21,972

Impact on income
before income taxes
EUR
(5,646)
465
(4,956)
(2,718)
(12,855)

Impact on OCI

EUR
13,669
(3,218)
-
-
10,451

It￿is￿our￿policy￿to￿limit￿the￿effects￿of￿currency￿exchange￿rate￿fluctuations￿on￿our￿Consolidated￿Statements￿of￿Operations.
The￿increased￿effect￿on￿income￿before￿income￿taxes￿in￿2013￿compared￿with￿2012￿reflects￿our￿higher￿net￿exposure
at￿year￿end.￿The￿negative￿effect￿on￿income￿before￿income￿taxes￿as￿presented￿in￿the￿table￿above￿for￿2013￿is￿mainly
attributable￿to￿timing￿differences￿between￿the￿arising￿and￿hedging￿of￿exposures.

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The￿effects￿of￿the￿fair￿value￿movements￿of￿cash￿flow￿hedges,￿entered￿into￿for￿U.S.￿dollar￿and￿Japanese￿yen￿transactions
are￿recognized￿in￿OCI.￿The￿increased￿U.S.￿dollar￿and￿Japanese￿yen￿effect￿on￿OCI￿in￿2013￿compared￿with￿2012￿is￿the
result￿of￿an￿increase￿in￿outstanding￿purchase￿hedges.

For￿a￿10.0￿percent￿weakening￿of￿the￿foreign￿currencies￿against￿the￿euro,￿there￿would￿be￿approximately￿an￿equal￿but
opposite￿effect￿on￿the￿income￿before￿income￿taxes￿and￿OCI.

Interest￿Rate￿Sensitivity
The￿sensitivity￿analysis￿below￿has￿been￿determined￿based￿on￿the￿exposure￿to￿interest￿rates￿for￿both￿derivative￿financial
and￿non-derivative￿financial￿instruments￿at￿the￿balance￿sheet￿date￿with￿the￿stipulated￿change￿taking￿place￿at￿the
beginning￿of￿the￿financial￿year￿and￿held￿constant￿throughout￿the￿reporting￿period.￿The￿table￿below￿shows￿the￿effect￿of￿a
1.0￿percentage￿point￿increase￿in￿interest￿rates￿on￿our￿income￿before￿income￿taxes￿and￿OCI.￿A￿positive￿amount￿indicates
an￿increase￿in￿income￿before￿income￿taxes￿and￿OCI.

(in thousands)
Effect￿of￿a￿1.0￿percent￿point￿increase￿in￿interest￿rates

2013

2012

Impact on income
before income
taxes
EUR
19,969

Impact on OCI

EUR
1,183

Impact on income
before income
taxes
EUR
20,706

Impact on OCI

EUR
1,488

The￿positive￿effect￿on￿income￿before￿income￿taxes￿mainly￿relates￿to￿our￿cash￿and￿cash￿equivalents￿and￿short-term
investments.￿The￿positive￿effect￿on￿OCI,￿is￿mainly￿attributable￿to￿the￿fair￿value￿movements￿of￿the￿interest￿rate￿swaps
designated￿as￿cash￿flow￿hedges.

For￿a￿1.0￿percentage￿point￿decrease￿in￿interest￿rates￿there￿would￿be￿a￿lower￿opposite￿effect￿on￿income￿before￿income
taxes￿and￿OCI￿due￿to￿the￿current￿interest￿rates.

See￿notes￿4￿and￿5￿to￿our￿Financial￿Statements￿for￿more￿information￿on￿our￿Financial￿Risk￿Management￿including￿Credit
Risk￿Management.

Item 12 Description of Securities Other Than Equity Securities

Not￿applicable.

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Part II

Item 13 Defaults, Dividend Arrearages and Delinquencies

None.

Item 14 Material Modifications to the Rights of Security Holders and Use of Proceeds

None.

Item 15 Controls and Procedures

Disclosure Controls and Procedures
As￿of￿December￿31,￿2013,￿ASML's￿senior￿management￿conducted￿an￿evaluation,￿under￿the￿supervision￿and￿with￿the
participation￿of￿ASML’s￿CEO￿and￿CFO,￿of￿the￿effectiveness￿of￿the￿design￿and￿operation￿of￿ASML’s￿disclosure￿controls
and￿procedures￿(as￿defined￿in￿Rule￿13a-15(e)￿under￿the￿Exchange￿Act).￿Based￿on￿such￿evaluation,￿ASML’s￿CEO￿and￿CFO
have￿concluded￿that,￿as￿of￿December￿31,￿2013,￿ASML’s￿disclosure￿controls￿and￿procedures￿are￿effective￿in￿recording,
processing,￿summarizing￿and￿reporting,￿on￿a￿timely￿basis,￿information￿required￿to￿be￿disclosed￿by￿ASML￿in￿the￿reports
that￿it￿files￿or￿submits￿under￿the￿Exchange￿Act￿and￿are￿effective￿in￿ensuring￿that￿information￿required￿to￿be￿disclosed￿by
ASML￿is￿accumulated￿and￿communicated￿to￿ASML’s￿management,￿including￿ASML’s￿CEO￿and￿CFO,￿as￿appropriate￿to
allow￿timely￿decisions￿regarding￿required￿disclosure.

Management's Report on Internal Control over Financial Reporting
ASML’s￿management￿is￿responsible￿for￿establishing￿and￿maintaining￿adequate￿internal￿control￿over￿financial￿reporting,
as￿defined￿in￿Rule￿13a-15(f)￿under￿the￿Exchange￿Act.￿Under￿the￿supervision￿and￿with￿the￿participation￿of￿ASML’s￿CEO
and￿CFO,￿ASML’s￿management￿conducted￿an￿evaluation￿of￿the￿effectiveness￿of￿ASML’s￿internal￿control￿over￿financial
reporting￿as￿of￿December￿31,￿2013￿based￿upon￿the￿framework￿in￿"Internal￿Control￿–￿Integrated￿Framework"￿(1992)
issued￿by￿the￿Committee￿of￿Sponsoring￿Organizations￿of￿the￿Treadway￿Commission.￿Based￿on￿that￿evaluation,
management￿has￿concluded￿that￿ASML’s￿internal￿control￿over￿financial￿reporting￿was￿effective￿as￿of￿December￿31,￿2013
at￿providing￿reasonable￿assurance￿regarding￿the￿reliability￿of￿financial￿reporting￿and￿the￿preparation￿of￿the￿Financial
Statements￿for￿external￿purposes￿in￿conformity￿with￿US￿GAAP.

Deloitte￿Accountants￿B.V.,￿an￿independent￿registered￿public￿accounting￿firm,￿has￿audited￿the￿Financial￿Statements
included￿in￿Item￿18￿"Financial￿Statements"￿and,￿as￿part￿of￿the￿audit,￿has￿issued￿a￿report,￿included￿herein,￿on￿the
effectiveness￿of￿ASML’s￿internal￿control￿over￿financial￿reporting.

Changes in Internal Control over Financial Reporting
During￿the￿year￿ended￿December￿31,￿2013￿there￿have￿been￿no￿changes￿in￿our￿internal￿control￿over￿financial￿reporting
that￿have￿materially￿affected,￿or￿are￿reasonably￿likely￿to￿materially￿affect,￿our￿internal￿control￿over￿financial￿reporting.

Inherent Limitations of Disclosure Controls and Procedures in Internal Control over Financial Reporting
It￿should￿be￿noted￿that￿any￿system￿of￿controls,￿however￿well-designed￿and￿operated,￿can￿provide￿only￿reasonable,￿and
not￿absolute,￿assurance￿that￿the￿objectives￿of￿the￿system￿will￿be￿met.￿In￿addition,￿the￿design￿of￿any￿control￿system￿is
based￿in￿part￿upon￿certain￿assumptions￿about￿the￿likelihood￿of￿future￿events.

ASML￿ANNUAL￿REPORT￿2013

59

Item 16   

A. Audit Committee Financial Expert
Our￿Supervisory￿Board￿has￿determined￿that￿effective￿March￿18,￿2004,￿Mr.￿Fritz￿Fröhlich,￿an￿independent￿member￿of
the￿Supervisory￿Board,￿qualifies￿as￿the￿Audit￿Committee￿Financial￿Expert.￿See￿also￿Item￿6.A.￿"Directors￿and￿Senior
Management"￿and￿Item￿6.C.￿"Practices".

B. Code of Ethics

Code of Conduct

We￿strive￿to￿do￿business￿on￿the￿basis￿of￿fairness,￿good￿faith￿and￿integrity.￿Our￿Code￿of￿Conduct,￿which￿amongst￿others
applies￿to￿all￿our￿employees￿sets￿out￿our￿ethical￿position￿on￿topics￿such￿as:

• Respect￿for￿the￿different￿cultural￿identities￿of￿our￿employees,￿stakeholders￿and￿customers;
• Zero￿tolerance￿of￿any￿form￿of￿discrimination￿or￿harassment;
• Promoting￿honest,￿ethical￿and￿transparent￿conduct,￿including￿in￿the￿handling￿of￿actual￿or￿apparent￿conflicts￿of￿interest

between￿personal￿and￿professional￿relationships;

• Conducting￿our￿business￿in￿good￿faith￿and￿with￿integrity;￿and
• Complying￿with￿all￿applicable￿laws￿and￿regulations.

The￿complete￿Code￿of￿Conduct￿can￿be￿found￿in￿the￿corporate￿governance￿section￿of￿our￿corporate￿website.

Business Principles

The￿Code￿of￿Conduct￿has￿been￿translated￿into￿an￿internal￿set￿of￿practical￿Business￿Principles￿which￿contain￿rules￿for
day-to-day￿operations￿for￿employees.￿These￿Business￿Principles￿focus￿on￿five￿areas:

• Show￿respect￿for￿people￿and￿the￿planet;
• Operate￿with￿integrity;
• Preserve￿intellectual￿Property￿and￿other￿assets;
• Manage￿exposures￿by￿following￿processes;￿and
• Adhere￿to￿our￿Business￿Principles￿and￿applicable￿laws.

Code of Conduct Complaints

We￿encourage￿our￿employees￿to￿discuss￿or￿report￿any￿behavior￿that￿may￿violate￿our￿Code￿of￿Conduct.￿ASML
has￿a￿procedure￿for￿reporting￿issues￿breaching￿the￿Code￿of￿Conduct￿including￿complaints￿of￿a￿financial￿nature
(Whistleblower’s￿policy).￿We￿encourage￿our￿employees￿to￿speak￿up￿and￿feel￿free￿to￿raise￿ethical￿issues￿without￿the￿fear
of￿retaliation.￿For￿those￿who￿feel￿more￿comfortable￿speaking￿up￿anonymously,￿there￿is￿an￿external￿hotline￿(phone￿and
webmail).￿The￿reporting￿procedures￿for￿Code￿of￿Conduct￿violations￿can￿be￿found￿in￿the￿corporate￿governance￿section￿of
our￿corporate￿website.

C. Principal Accountant Fees and Services
Deloitte￿Accountants￿B.V.￿has￿served￿as￿our￿independent￿registered￿public￿accounting￿firm￿for￿the￿years￿ending
December￿31,￿2013￿and￿2012.￿The￿following￿table￿sets￿out￿the￿aggregate￿fees￿for￿professional￿audit￿services￿and￿other
services￿rendered￿by￿Deloitte￿Accountants￿B.V.￿and￿its￿member￿firms￿and/or￿affiliates￿in￿2013￿and￿2012:

Year ended December 31
(in thousands)
Audit￿fees￿in￿relation￿to￿annual￿reports
Other￿audit￿fees
Audit-related￿fees
Tax￿fees
Other

2013
Deloitte
Accountants
B.V.
EUR
1,559
-
120
-
-

Deloitte
Network
EUR
-
364
-
347
-

Principal accountant fees and services

1,679

711

2012
Deloitte
Accountants
B.V.
EUR
1,002
-
149
-
-

Deloitte
Network
EUR
-
352
-
353
247

1,151

952

Total
EUR
1,559
364
120
347
-

2,390

Total
EUR
1,002
352
149
353
247

2,103

ASML￿ANNUAL￿REPORT￿2013

60

Audit￿Fees￿and￿Other￿Audit￿Fees
Audit￿fees￿primarily￿relate￿to￿the￿audit￿of￿our￿Financial￿Statements￿as￿set￿out￿in￿our￿Annual￿Report,￿our￿Statutory￿Annual
Report,￿agreed￿upon￿procedures￿on￿our￿quarterly￿financial￿results￿and￿services￿related￿to￿statutory￿and￿regulatory￿filings
of￿ASML￿and￿its￿subsidiaries.

Audit-related￿Fees
Audit-related￿fees￿mainly￿related￿to￿various￿audit￿services￿not￿related￿to￿our￿Financial￿Statements.

Tax￿Fees
Tax￿fees￿can￿be￿detailed￿as￿follows:

Year ended December 31
(in thousands)
Corporate￿Income￿Tax￿compliance￿services
Tax￿assistance￿for￿expatriate￿employees
Other￿tax￿advisory￿and￿compliance

Tax fees

2013
EUR
186
2
159

347

2012
EUR
123
79
151

353

The￿Audit￿Committee￿has￿approved￿the￿external￿audit￿plan￿and￿related￿audit￿fees￿for￿the￿year￿2013.

The￿Audit￿Committee￿will￿monitor￿compliance￿with￿the￿Dutch￿rules￿on￿non-audit￿services￿provided￿by￿our￿independent
registered￿public￿accounting￿firm,￿which￿outlines￿strict￿separation￿of￿audit￿and￿advisory￿services￿for￿Dutch￿public
interest￿entities.￿Furthermore,￿we￿will￿start￿our￿audit￿proposal￿process￿(mandatory￿firm￿rotation,￿not￿applicable￿to
financial￿years￿before￿January￿1,￿2016)￿in￿2014.

D. Exemptions from the Listing Standards for Audit Committees
Not￿applicable.

E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
In￿addition￿to￿dividend￿payments,￿we￿intend￿to￿return￿cash￿to￿our￿shareholders￿on￿a￿regular￿basis￿through￿share
buybacks￿or￿capital￿repayment,￿subject￿to￿our￿actual￿and￿anticipated￿level￿of￿liquidity￿requirements,￿our￿current￿share
price,￿other￿market￿conditions￿and￿other￿relevant￿factors.￿

On￿April￿17,￿2013,￿we￿announced￿our￿intention￿to￿purchase￿up￿to￿an￿amount￿of￿EUR￿1.0￿billion￿of￿our￿own￿shares￿within
the￿2013-2014￿timeframe,￿starting￿April￿18,￿2013.￿Up￿to￿December￿31,￿2013,￿we￿had￿purchased￿4,614,179￿of￿our￿shares
at￿an￿average￿price￿of￿EUR￿65.02￿per￿share.￿The￿shares￿purchased￿are￿intended￿to￿be￿cancelled￿in￿2014.

The￿following￿tables￿provide￿a￿summary￿of￿shares￿repurchased￿by￿ASML￿in￿2013￿and￿a￿historic￿overview￿of￿previous
share￿buyback￿programs,￿respectively:

Period

April￿18￿-￿30,￿2013
May￿2￿-￿31,￿2013
June￿1￿-￿30,￿2013
July￿1￿-￿31,￿2013
August￿1￿-￿31,￿2013
September￿1￿-￿30,￿2013
October￿3￿-￿31,￿2013
November￿1￿-￿30,￿2013
December￿1￿-￿31,￿2013

Total

Total number
of shares
purchased

Average price paid
per Share
(EUR)

297,500
389,974
749,434
321,486
283,097
179,146
556,443
962,146
874,953

4,614,179

55.35
61.76
60.39
65.20
67.83
69.06
69.34
66.76
67.25

65.02

Total number of shares
purchased as
part of publicly
announced plans
or programs
297,500
687,474
1,436,908
1,758,394
2,041,491
2,220,637
2,777,080
3,739,226
4,614,179

Maximum value of
shares that may yet be
purchased under the
program
(EUR)
983,534,770
959,449,401
914,192,630
893,232,250
874,028,834
861,656,533
823,072,791
758,841,727
700,000,036

ASML￿ANNUAL￿REPORT￿2013

61

Period
Share￿Buybacks
Synthetic￿Share￿Buyback
Share￿Buybacks
Share￿Buybacks
Share￿Buybacks
Synthetic￿Share￿Buyback
Share￿Buybacks
Share￿Buybacks
Total / Average1

Year
2006
2007
2007
2008
2011
2012
2012
2013

Total amount paid
(in EUR millions)
677.2
1,011.9
359.8
87.6
700.0
3,728.3
535.2
300.0
3,671.7

Total Number of
Shares Purchased
40,385,139
55,093,409
17,000,000
5,000,000
25,674,576
93,411,216
13,478,058
4,614,179
161,245,361

Average Price Paid
per Share
(EUR)
16.77
18.37
21.16
17.52
27.26
39.91
39.71
65.02
22.77

Reduction of Shares
Outstanding vs
Beginning of Year
(Percentage)
8.3
11.5
3.6
1.1
5.9
22.6
3.3
1.1
33.3

1

Totals,￿average￿and￿percentage￿are￿excluding￿the￿synthetic￿share￿buyback￿executed￿in￿2012￿as￿part￿of￿our￿CCIP.￿The￿percentage￿represents￿the
reduction￿of￿shares￿outstanding￿compared￿to￿January￿1,￿2006.

F. Change in Registrant’s Certifying Accountant
Not￿applicable.

G. Corporate Governance
NASDAQ￿rules￿provide￿that￿foreign￿private￿issuers￿may￿follow￿home￿country￿practice￿in￿lieu￿of￿the￿NASDAQ￿corporate
governance￿standards￿subject￿to￿certain￿exceptions￿and￿except￿to￿the￿extent￿that￿such￿exemptions￿would￿be￿contrary￿to
US￿federal￿securities￿laws.￿The￿practices￿followed￿by￿ASML￿in￿lieu￿of￿NASDAQ￿rules￿are￿described￿below:

• ASML￿does￿not￿follow￿NASDAQ’s￿quorum￿requirements￿applicable￿to￿meetings￿of￿ordinary￿shareholders.￿In

accordance￿with￿Dutch￿law￿and￿Dutch￿generally￿accepted￿business￿practice,￿ASML’s￿Articles￿of￿Association￿provide
that￿there￿are￿no￿quorum￿requirements￿generally￿applicable￿to￿General￿Meetings￿of￿Shareholders.

• ASML￿does￿not￿follow￿NASDAQ’s￿requirements￿regarding￿the￿provision￿of￿proxy￿statements￿for￿General￿Meetings￿of

Shareholders.￿Dutch￿law￿does￿not￿have￿a￿regulatory￿regime￿for￿the￿solicitation￿of￿proxies:￿the￿solicitation￿of￿proxies￿is
not￿a￿generally￿accepted￿business￿practice￿in￿the￿Netherlands.￿ASML￿does￿provide￿shareholders￿with￿an￿agenda￿and
other￿relevant￿documents￿for￿the￿General￿Meeting￿of￿Shareholders.

• Dutch￿law￿requires￿that￿ASML’s￿external￿auditors￿be￿appointed￿by￿the￿AGM￿and￿not￿by￿the￿Audit￿Committee￿as

contemplated￿by￿NASDAQ￿rules.

• ASML￿does￿not￿follow￿NASDAQ's￿requirement￿regarding￿distribution￿to￿shareholders￿of￿copies￿of￿an￿Annual￿Report
containing￿audited￿Financial￿Statements￿prior￿to￿our￿AGM.￿The￿distribution￿of￿Annual￿Reports￿to￿shareholders￿is￿not
required￿under￿Dutch￿corporate￿law￿or￿Dutch￿securities￿laws,￿or￿by￿NYSE￿Euronext￿Amsterdam.￿Furthermore,￿it￿is
generally￿accepted￿business￿practice￿for￿Dutch￿companies￿not￿to￿distribute￿Annual￿Reports.￿In￿part,￿this￿is￿because
the￿Dutch￿system￿of￿bearer￿shares￿has￿made￿it￿impractical￿to￿keep￿a￿current￿list￿of￿holders￿of￿the￿bearer￿shares￿in
order￿to￿distribute￿the￿Annual￿Reports.￿Instead,￿we￿make￿our￿Annual￿Report￿available￿at￿our￿corporate￿head￿office
in￿the￿Netherlands￿(and￿at￿the￿offices￿of￿our￿Dutch￿listing￿agent￿as￿stated￿in￿the￿convening￿notice￿for￿the￿meeting)
approximately￿two￿weeks￿prior￿to￿convocation￿of￿the￿AGM.￿In￿addition,￿we￿post￿a￿copy￿of￿our￿Annual￿Report￿on￿our
website￿prior￿to￿the￿AGM.

• ASML￿does￿not￿follow￿NASDAQ’s￿requirement￿to￿obtain￿shareholder￿approval￿of￿stock￿option￿or￿purchase￿plans￿or

other￿equity￿compensation￿arrangements￿available￿to￿officers,￿directors￿or￿employees.￿It￿is￿not￿required￿under￿Dutch
law￿or￿generally￿accepted￿practice￿for￿Dutch￿companies￿to￿obtain￿shareholder￿approval￿of￿equity￿compensation
arrangements￿available￿to￿officers,￿directors￿or￿employees.￿The￿AGM￿adopts￿the￿remuneration￿policy￿for￿the￿Board
of￿Management,￿approves￿equity￿compensation￿arrangements￿for￿the￿Board￿of￿Management￿and￿approves￿the
remuneration￿for￿the￿Supervisory￿Board.￿The￿actual￿total￿remuneration￿(including￿equity￿compensation)￿for￿individual
members￿of￿the￿Board￿of￿Management￿is￿determined￿by￿the￿Supervisory￿Board.￿Equity￿compensation￿arrangements
for￿employees￿are￿adopted￿by￿the￿Board￿of￿Management￿within￿limits￿approved￿by￿the￿AGM.

H. Mine Safety Disclosure
Not￿applicable.

ASML￿ANNUAL￿REPORT￿2013

62

Part III

Item 17 Financial Statements

Not￿applicable.

Item 18 Financial Statements

In￿response￿to￿this￿item,￿we￿incorporate￿herein￿by￿reference￿our￿Financial￿Statements￿set￿out￿on￿pages￿F-2￿through￿F-54
hereto.

Item 19 Exhibits

Exhibit￿No.
1

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

4.18

4.19

4.20

4.21

4.22

4.23

Description
Articles￿of￿Association￿of￿ASML￿Holding￿N.V.￿(English￿translation)￿(Incorporated￿by￿reference￿to￿Amendment￿No.￿13￿to￿the
Registrant’s,￿Registration￿Statement￿on￿Form￿8-A/A,￿filed￿with￿the￿SEC￿on￿February￿8,￿2013)
Agreement￿between￿ASM￿Lithography￿B.V.￿and￿Carl￿Zeiss,￿dated￿March￿17,￿2000￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿fiscal￿year￿ended￿December￿31,￿2000)￿1
Agreement￿between￿ASML￿Holding￿N.V.￿and￿Carl￿Zeiss,￿dated￿October￿24,￿2003￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2003)￿1
Form￿of￿Indemnity￿Agreement￿between￿ASML￿Holding￿N.V.￿and￿members￿of￿its￿Board￿of￿Management￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2003)
Form￿of￿Indemnity￿Agreement￿between￿ASML￿Holding￿N.V.￿and￿members￿of￿its￿Supervisory￿Board￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2003)
Form￿of￿Employment￿Agreement￿for￿members￿of￿the￿Board￿of￿Management￿(Incorporated￿by￿reference￿to￿the￿Registrant’s
Annual￿Report￿on￿Form￿20-F￿for￿the￿fiscal￿year￿ended￿December￿31,￿2003)
Nikon-ASML￿Patent￿Cross-License￿Agreement,￿dated￿December￿10,￿2004,￿between￿ASML￿Holding￿N.V.￿and￿Nikon
Corporation￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿fiscal￿year￿ended
December￿31,￿2004)￿1
ASML/Zeiss￿Sublicense￿Agreement,￿2004,￿dated￿December￿10,￿2004,￿between￿Carl￿Zeiss￿SMT￿AG￿and￿ASML￿Holding￿N.V.
(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿fiscal￿year￿ended￿December￿31,￿2004)￿1
￿ASML￿New￿Hires￿and￿Incentive￿Stock￿Option￿Plan￿For￿Management￿(Version￿2003)￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Statement￿on￿Form￿S-8,￿filed￿with￿the￿SEC￿on￿September￿2,￿2003￿(File￿No.￿333-109154))
￿ASML￿Incentive￿and￿New￿Hire￿Option￿Plan￿for￿Board￿of￿Management￿(Incorporated￿by￿reference￿to￿the￿Registrant’s
Registration￿Statement￿on￿Form￿S-8,￿filed￿with￿the￿SEC￿on￿June￿9,￿2004￿(File￿No.￿333-116337))
￿ASML￿Option￿Plan￿for￿Management￿of￿ASML￿Holding￿Group￿Companies￿(Incorporated￿by￿reference￿to￿the￿Registrant’s
Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿June￿30,￿2005￿(file￿No.￿333-126340))
￿ASML￿Stock￿Option￿Plan￿for￿New￿Hire￿Options￿granted￿to￿Members￿of￿the￿Board￿of￿Management￿(Version￿April￿2006)
(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿August￿7,￿2006
(file￿No.￿333-136362))
￿ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿April
2006)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿August￿7,
2006￿(file￿No.￿333-136362))
￿ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿July
2006)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿August￿7,
2006￿(file￿No.￿333-136362))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version
October￿2006)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on
August￿7,￿2006￿(file￿No.￿333-136362))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿January
2007)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿July￿5,
2007￿(file￿No.￿333-144356))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿April
2007)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿July￿5,
2007￿(file￿No.￿333-144356))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿July
2007)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿July￿5,
2007￿(file￿No.￿333-144356))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version
October￿2007)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on
July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Performance￿Stock￿Plan￿for￿Members￿of￿the￿Board￿of￿Management￿(Version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Performance￿Stock￿Option￿Plan￿for￿Members￿of￿the￿Board￿of￿Management￿(Version￿2)￿(Incorporated￿by￿reference￿to
the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Stock￿Option￿Plan￿from￿Base￿Salary￿for￿Senior￿&￿Executive￿Management￿(Version￿October￿2007)￿(Incorporated
by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿November￿2,￿2007￿(file￿No.
333-147128))
ASML￿Performance￿Stock￿Option￿Plan￿for￿Senior￿and￿Executive￿Management￿(version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s.￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿August￿29,￿2008￿(file￿No.￿333-153277))
ASML￿Performance￿Share￿Plan￿for￿Senior￿and￿Executive￿Management￿(version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿August￿29,￿2008￿(file￿No.￿333-153277))

ASML￿ANNUAL￿REPORT￿2013

63

Exhibit￿No.
4.24

4.25

4.26

4.27

4.28

4.29

4.30

4.31

8.1
12.1
13.1

15.1
101.INS
101.SCH
101.CAL
101.DEF
101.LAB
101.PRE

Description
ASML￿Performance￿Stock￿Plan￿for￿Members￿of￿the￿Board￿of￿Management￿(Incorporated￿by￿reference￿to￿the￿Registrant’s
Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿October￿13,￿2009￿(file￿No.￿333-162439))
ASML￿Performance￿Stock￿Option￿Plan￿for￿Senior￿and￿Executive￿Management￿(version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s.￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿October￿13,￿2009￿(file￿No.￿333-162439))
ASML￿Performance￿Share￿Plan￿for￿Senior￿and￿Executive￿Management￿(version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿SEC￿on￿October￿13,￿2009￿(file￿No.￿333-162439))
Investment￿Agreement￿between￿ASML￿Holding￿N.V.￿and￿Intel￿Corporation,￿dated￿July￿9,￿2012￿(Incorporated￿by￿reference
to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2012)
450mm￿NRE￿Funding￿Agreement￿between￿ASML￿Holding￿N.V.,￿and￿Intel￿Corporation,￿dated￿July￿9,￿2012￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2012)1
EUV￿NRE￿Funding￿Agreement￿between￿ASML￿Holding￿N.V.,￿and￿Intel￿Corporation,￿dated￿July￿9,￿2012￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2012)1
Shareholder￿Agreement￿between￿ASML￿Holding￿N.V.￿and￿Intel￿Holdings￿B.V.,￿Intel￿Corporation￿and￿Stichting
Administratiekantoor￿MAKTSJAB￿dated￿September￿12,￿2012￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Annual￿Report
on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2012)
Agreement￿and￿Plan￿of￿Merger￿by￿and￿among￿ASML￿Holding￿N.V.,￿Kona￿Acquisition￿Company,￿Inc.￿Cymer,￿Inc.￿and
certain￿other￿parties￿set￿forth￿therein,￿date￿October￿16,￿2012￿(incorporated￿by￿reference￿to￿Annex￿A￿to￿the￿Registrant's
Registration￿Statement￿on￿Form￿F-4￿filed￿with￿the￿SEC￿on￿November￿21,￿2012￿(file￿No.￿333-185120))
List￿of￿Main￿Subsidiaries2
Certification￿of￿CEO￿and￿CFO￿Pursuant￿to￿Rule￿13a-14(a)￿of￿the￿Securities￿Exchange￿Act￿of￿19342
Certification￿of￿CEO￿and￿CFO￿Pursuant￿to￿Rule￿13a-14(b)￿of￿the￿Securities￿Exchange￿Act￿of￿1934￿and￿18￿U.S.C.￿Section
1350￿as￿Adopted￿Pursuant￿to￿Section￿906￿of￿the￿Sarbanes-Oxley￿Act￿of￿20022
Consent￿of￿Deloitte￿Accountants￿B.V.2
XBRL￿Instance￿Document2
XBRL￿Taxonomy￿Extension￿Schema￿Document2
XBRL￿Taxonomy￿Extension￿Calculation￿Linkbase￿Document2
XBRL￿Taxonomy￿Extension￿Definition￿Linkbase￿Document2
XBRL￿Taxonomy￿Extension￿Label￿Linkbase￿Document2
XBRL￿Taxonomy￿Extension￿Presentation￿Linkbase￿Document2

1
2

Certain￿information￿omitted￿pursuant￿to￿a￿request￿for￿confidential￿treatment￿filed￿separately￿with￿the￿SEC.
Filed￿at￿the￿SEC￿herewith.

ASML￿is￿party￿to￿two￿debt￿instruments￿under￿which￿the￿total￿amount￿of￿securities￿under￿each￿debt￿instrument￿does￿not
exceed￿10￿percent￿of￿the￿total￿assets￿of￿ASML￿and￿its￿subsidiaries￿on￿a￿consolidated￿basis.￿Pursuant￿to￿paragraph￿2(b)
(i)￿of￿the￿instructions￿to￿the￿exhibits￿to￿Form￿20-F,￿ASML￿agrees￿to￿furnish￿a￿copy￿of￿such￿instruments￿to￿the￿Commission
upon￿request.

ASML￿Holding￿N.V.￿hereby￿certifies￿that￿it￿meets￿all￿of￿the￿requirements￿for￿filing￿on￿Form￿20-F￿and￿that￿it￿has￿duly
caused￿and￿authorized￿the￿undersigned￿to￿sign￿this￿Annual￿Report￿on￿its￿behalf.￿

ASML￿Holding￿N.V.￿(Registrant)￿

￿￿

￿/s/￿Peter￿T.F.M.￿Wennink
Peter￿T.F.M.￿Wennink
President,￿CEO￿and￿member￿of￿the￿Board￿of￿Management
Dated:￿February￿11,￿2014￿￿￿

/s/￿Wolfgang￿U.￿Nickl
Wolfgang￿U.￿Nickl
Executive￿Vice￿President￿and￿CFO
Dated:￿February￿11,￿2014

ASML￿ANNUAL￿REPORT￿2013

64

Financial Statements

Index to Financial Statements

F-2

F-3

F-4

F-5

F-6

F-7

F-54

Consolidated￿Statements￿of￿Operations

Consolidated￿Statements￿of￿Comprehensive￿Income

Consolidated￿Balance￿Sheets

Consolidated￿Statements￿of￿Shareholders’￿Equity

Consolidated￿Statements￿of￿Cash￿Flows

Notes￿to￿the￿Consolidated￿Financial￿Statements

Report￿of￿Independent￿Registered￿Public￿Accounting￿Firm

ASML￿ANNUAL￿REPORT￿2013

F-1

Consolidated Statements of Operations

Notes

21

21

22

28
22,￿23
22

24

20

1
1

1
1

1

Year ended December 31
(in thousands, except per share data)

2013
EUR

2012
EUR

2011
EUR

Net￿system￿sales
Net￿service￿and￿field￿option￿sales

3,993,129
1,252,197

3,801,632
929,923

4,883,913
767,122

Total net sales
Cost￿of￿system￿sales
Cost￿of￿service￿and￿field￿option￿sales

5,245,326
(2,233,621)
(834,443)

4,731,555
(2,198,921)
(527,377)

5,651,035
(2,793,931)
(407,714)

Total cost of sales

(3,068,064)

(2,726,298)

(3,201,645)

Gross profit
Other￿income
Research￿and￿development￿costs
Selling,￿general￿and￿administrative￿costs

Income from operations
Interest￿and￿other,￿net

Income before income taxes
Provision￿for￿income￿taxes

Net income
Basic￿net￿income￿per￿ordinary￿share
Diluted￿net￿income￿per￿ordinary￿share1
Number￿of￿ordinary￿shares￿used￿in￿computing￿per￿share￿amounts
(in￿thousands)
Basic
Diluted1

2,177,262
64,456
(882,029)
(311,741)

1,047,948
(24,471)

1,023,477
(7,987)

1,015,490
2.36
2.34

2,005,257
-
(589,182)
(259,301)

2,449,390
-
(590,270)
(217,904)

1,156,774
(6,196)

1,641,216
7,419

1,150,578
(4,262)

1,648,635
(181,675)

1,146,316
2.70
2.68

1,466,960
3.45
3.42

429,770
433,446

424,096
426,986

425,618
429,053

The￿calculation￿of￿diluted￿net￿income￿per￿ordinary￿share￿assumes￿the￿exercise￿of￿options￿issued￿under￿our￿stock￿option￿plans￿and￿the￿issuance￿of
shares￿under￿our￿share￿plans￿for￿periods￿in￿which￿exercises￿or￿issuances￿would￿have￿a￿dilutive￿effect.￿The￿calculation￿of￿diluted￿net￿income￿per
ordinary￿share￿does￿not￿assume￿exercise￿of￿such￿options￿or￿issuance￿of￿shares￿when￿such￿exercises￿or￿issuance￿would￿be￿anti-dilutive.

ASML￿ANNUAL￿REPORT￿2013

F-2

Consolidated Statements of Comprehensive Income

Notes

4

4
4

Year ended December 31
(in thousands)

2013
EUR

2012
EUR

2011
EUR

Net income

1,015,490

1,146,316

1,466,960

Other comprehensive income:

Foreign currency translation, net of taxes:
Gain￿(loss)￿on￿foreign￿currency￿translation

Financial instruments, net of taxes:
Gain￿(loss)￿on￿derivative￿financial￿instruments
Transfers￿to￿net￿income
Other comprehensive income, net of taxes

(113,779)

8,063

(17,473)

(5,370)
(2,276)
(121,425)

214
(7,761)
516

(4,610)
51,963
29,880

Total comprehensive income, net of taxes

894,065

1,146,832

1,496,840

Attributable￿to￿equity￿holders

894,065

1,146,832

1,496,840

ASML￿ANNUAL￿REPORT￿2013

F-3

Consolidated Balance Sheets

Notes

As of December 31
(in thousands, except share and per share data)

2013
EUR

2012
EUR

5
5
6
7
20
8
20
9

7
20
9
10
11
12

13
20
15
14
20

15
20
14
13

Assets
Cash￿and￿cash￿equivalents
Short-term￿investments
Accounts￿receivable,￿net
Finance￿receivables,￿net
Current￿tax￿assets
Inventories,￿net
Deferred￿tax￿assets
Other￿assets
Total current assets

Finance￿receivables,￿net
Deferred￿tax￿assets
Other￿assets
Goodwill
Other￿intangible￿assets,￿net
Property,￿plant￿and￿equipment,￿net
Total non-current assets

2,330,694
679,884
878,321
250,472
32,333
2,393,022
124,431
336,421
7,025,578

46,017
139,513
298,559
2,088,589
697,634
1,217,840
4,488,152

1,767,596
930,005
605,288
265,167
57,116
1,856,970
103,695
246,005
5,831,842

38,621
39,443
311,538
149,168
9,943
1,029,923
1,578,636

Total assets

11,513,730

7,410,478

Liabilities and shareholders’ equity
Accounts￿payable
Accrued￿and￿other￿liabilities
Current￿tax￿liabilities
Current￿portion￿of￿long-term￿debt
Provisions
Deferred￿and￿other￿tax￿liabilities
Total current liabilities

Long-term￿debt
Deferred￿and￿other￿tax￿liabilities
Provisions
Accrued￿and￿other￿liabilities
Total non-current liabilities

625,870
2,216,882
15,803
4,385
2,227
3,494
2,868,661

1,070,185
364,695
4,620
283,142
1,722,642

188,961
1,880,370
10,791
3,610
2,280
271
2,086,283

755,880
88,307
7,974
405,141
1,257,302

Total liabilities

4,591,303

3,343,585

17,￿19

Commitments￿and￿contingencies

Cumulative￿Preference￿Shares;￿EUR￿0.09￿nominal￿value;
700,000,000￿shares￿authorized￿at￿December￿31,￿2013￿and￿2012;
none￿issued￿and￿outstanding￿at￿December￿31,￿2013￿and￿2012;

Ordinary￿Shares￿B;￿EUR￿0.01￿nominal￿value;
9,000￿shares￿authorized￿at￿December￿31,￿2013￿and￿2012;
none￿issued￿and￿outstanding￿per￿December￿31,￿2013￿and￿2012;

Ordinary￿Shares;￿EUR￿0.09￿nominal￿value;
699,999,000￿shares￿authorized￿at￿December￿31,￿2013;
440,852,334￿issued￿and￿outstanding￿at￿December￿31,￿2013;
699,999,000￿shares￿authorized￿at￿December￿31,￿2012;
407,165,221￿issued￿and￿outstanding￿at￿December￿31,￿2012;
Issued￿and￿outstanding￿shares
Share￿premium
Treasury￿shares￿at￿cost
Retained￿earnings
Accumulated￿other￿comprehensive￿income
Total shareholders’ equity

26

-

-

-

-

-

-

40,092
2,912,862
(364,702)
4,376,613
(42,438)
6,922,427

37,470
483,651
(464,574)
3,931,359
78,987
4,066,893

Total liabilities and shareholders’ equity

11,513,730

7,410,478

ASML￿ANNUAL￿REPORT￿2013

F-4

Consolidated Statements of Shareholders’ Equity

Issued and
Outstanding Shares

Notes

4
4

26,￿27
26,￿27
18,￿22
18
26
18,￿20

4
4

26,￿28
26,￿28
26,￿28

26,￿27
26,￿27
18,￿22
18
26
18,￿20

4
4

26,￿28

26,￿27
26,￿27
18,￿22
18
26
18,￿20

(in thousands)
Balance at January 1, 2011

Number1

436,593

Amount
EUR
39,293

Share
Premium
EUR
471,253

Treasury
shares at
cost
EUR

Retained
Earnings
EUR
(151,672) 2,366,443

Accumulated
OCI
EUR
48,591

Total
EUR
2,773,908

Components of comprehensive income:
Net￿income
Foreign￿Currency￿Translation,￿net￿of￿taxes
Gain￿on￿financial￿instruments,￿net￿of￿taxes
Total comprehensive income

-
-
-
-

-
-
-
-

-
-
-
-

- 1,466,960
-
-
-
-
- 1,466,960

-
(17,473)
47,353
29,880

1,466,960
(17,473)
47,353
1,496,840

Purchase of treasury shares
Cancellation of treasury shares
Share-based payments
Issuance of shares
Dividend paid
Tax deficit from share-based payments
Balance at December 31, 2011

(25,675)
-
-
2,751
-
-
413,669

-
(1,187)
-
248
-
-
38,354

-
-
12,430
(10,629)
-
(11)
473,043

(700,452)
373,801
-
61,906
-
-

-
(372,614)
-
(17,441)
(172,645)
-
(416,417) 3,270,703

-
-
-
-
-
-

(700,452)
-
12,430
34,084
(172,645)
(11)
78,471 2 3,444,154

Components of comprehensive income:
Net￿income
Foreign￿Currency￿Translation
Loss￿on￿financial￿instruments,￿net￿of￿taxes
Total comprehensive income

-
-
-
-

-
-
-
-

-
-
-
-

- 1,146,316
-
-
-
-
- 1,146,316

-
8,063
(7,547)
516

1,146,316
8,063
(7,547)
1,146,832

CCIP:
Issuance￿of￿shares
Fair￿value￿differences3
Capital￿repayment4

Purchase of treasury shares
Cancellation of treasury shares
Share-based payments
Issuance of shares
Dividend paid
Tax benefit from share-based payments
Balance at December 31, 2012
Components of comprehensive income:
Net￿income
Foreign￿Currency￿Translation
Loss￿on￿financial￿instruments,￿net￿of￿taxes
Total comprehensive income

CCIP:
Fair￿value￿differences5

96,566
-
(93,411)

(13,478)
-
-
3,819
-
-
407,165

-
-
-
-

-

Purchase of treasury shares
Cancellation of treasury shares
Share-based payments6
Issuance of shares7
Dividend paid
Tax benefit from share-based payments
Balance at December 31, 2013

(4,614)
-
-
38,301
-
-
440,852

8,691 3,968,677
(123,416)
(8,691) (3,845,261)

-

-
-
125,628

-
-
-

-
-
-

3,977,368
(123,416)
(3,728,324)

(198)
(1,030)
-
344
-
-
37,470

-
-
18,714
(10,222)
-
2,116
483,651

(535,175)
294,752
-
66,638
-
-

-
(293,722)
-
(3,046)
(188,892)
-
(464,574) 3,931,359

-
-
-
-
-
-

(535,373)
-
18,714
53,714
(188,892)
2,116
78,987 2 4,066,893

-
-
-
-

-

-
-
-
-

- 1,015,490
-
-
-
-
- 1,015,490

-
(113,779)
(7,646)
(121,425)

1,015,490
(113,779)
(7,646)
894,065

20,956

-

-

-

20,956

-
(854)
-

-
-
95,895
3,476 2,309,250
-
3,110
40,092 2,912,862

-
-

(300,000)
349,261
-
50,611
-
-

-
(348,407)
-
(5,744)
(216,085)
-
(364,702) 4,376,613

-
-
-
-
-
-

(300,000)
-
95,895
2,357,593
(216,085)
3,110
(42,438) 2 6,922,427

1

2

3
4

5

6

7

As￿of￿December￿31,￿2013,￿the￿number￿of￿issued￿shares￿was￿446,822,452.￿This￿includes￿the￿number￿of￿issued￿and￿outstanding￿shares￿of￿440,852,334
and￿the￿number￿of￿treasury￿shares￿of￿5,970,118.￿As￿of￿December￿31,￿2012,￿the￿number￿of￿issued￿shares￿was￿419,852,467.￿This￿includes￿the￿number
of￿issued￿and￿outstanding￿shares￿of￿407,165,221￿and￿the￿number￿of￿treasury￿shares￿of￿12,687,246.
As￿of￿December￿31,￿2013,￿accumulated￿OCI,￿net￿of￿taxes,￿consists￿of￿EUR￿30.2￿million￿relating￿to￿foreign￿currency￿translation￿loss￿(2012:￿EUR￿83.5
million;￿2011:￿EUR￿75.5￿million)￿and￿EUR￿12.2￿million￿relating￿to￿unrealized￿losses￿on￿financial￿instruments￿(2012:￿EUR￿4.5￿million￿losses;￿2011:￿EUR
3.0￿million￿gains).
The￿difference￿between￿the￿fair￿value￿of￿the￿shares￿and￿the￿subscription￿price￿of￿the￿shares￿issued￿to￿the￿Participating￿Customers￿in￿the￿CCIP.
In￿2012,￿as￿part￿of￿the￿capital￿repayment,￿EUR￿3,728.3￿million￿of￿shareholders'￿equity￿was￿returned￿to￿our￿shareholders￿(excluding￿Participating
Customers￿in￿the￿CCIP)￿and￿the￿number￿of￿shares￿was￿reduced￿by￿23￿percent.￿See￿Note￿26.
EUR￿21.0￿million￿is￿recognized￿to￿increase￿equity￿to￿the￿fair￿value￿of￿the￿shares￿issued￿to￿the￿Participating￿Customers￿in￿the￿CCIP.￿The￿portion￿of￿the
NRE￿funding￿allocable￿to￿the￿shares￿is￿recognized￿over￿the￿NRE￿Funding￿Agreements￿period￿(2013-2017).
Share-based￿payments￿include￿an￿amount￿of￿EUR￿43.5￿million￿in￿relation￿to￿the￿fair￿value￿compensation￿of￿unvested￿equity￿awards￿exchanged￿as￿part
of￿acquisition￿of￿Cymer.
Issuance￿of￿shares￿includes￿36,464,576￿ordinary￿shares￿issued￿in￿relation￿to￿the￿acquisition￿of￿Cymer￿for￿a￿total￿fair￿value￿of￿EUR￿2,346.7￿million.
The￿difference￿of￿EUR￿1.0￿million￿with￿the￿fair￿value￿of￿shares￿as￿disclosed￿in￿Note￿2￿is￿explained￿by￿14,533￿shares￿still￿to￿be￿issued￿to￿former￿Cymer
shareholders.

ASML￿ANNUAL￿REPORT￿2013

F-5

Consolidated Statements of Cash Flows

Notes

11,￿12
10,￿11,￿12
12
18
6
8
20

6
7
8
9
13,￿14

20

12
11
5
5

26
26,￿27

26

15
18,￿20

5
5

1

2

3
4

5

6

Year ended December 31
(in thousands)

2013
EUR

2012
EUR

2011
EUR

Cash Flows from Operating Activities
Net￿income

1,015,490

1,146,316

1,466,960

Adjustments￿to￿reconcile￿net￿income
to￿net￿cash￿flows￿from￿operating￿activities:
Depreciation￿and￿amortization
Impairment
Loss￿on￿disposal￿of￿property,￿plant￿and￿equipment1
Share-based￿payments
Allowance￿for￿doubtful￿receivables
Allowance￿for￿obsolete￿inventory
Deferred￿income￿taxes
Changes in assets and liabilities:
Accounts￿receivable
Finance￿receivables
Inventories1
Other￿assets
Accrued￿and￿other￿liabilities
Accounts￿payable
Current￿income￿taxes
Net cash provided by operating activities

Cash Flows from Investing Activities
Purchase￿of￿property,￿plant￿and￿equipment1
Purchase￿of￿intangible￿assets
Purchase￿of￿available￿for￿sale￿securities
Maturity￿of￿available￿for￿sale￿securities
Acquisition￿of￿subsidiaries￿(net￿of￿cash￿acquired)
Net cash used in investing activities

Cash Flows from Financing Activities
Dividend￿paid
Purchase￿of￿shares
Net￿proceeds￿from￿issuance￿of￿shares
Net￿proceeds￿from￿issuance￿of￿notes
Repurchase￿of￿notes
Capital￿Repayment
Deposits￿from￿customers
Repayment￿of￿debt
Tax￿benefit￿(deficit)￿from￿share-based￿payments
Net cash provided by (used in) financing activities

Net￿cash￿flows
Effect￿of￿changes￿in￿exchange￿rates￿on￿cash
Net increase (decrease) in cash and cash equivalents
Cash￿and￿cash￿equivalents￿at￿beginning￿of￿the￿year
Cash and cash equivalents at end of the year

Supplemental Disclosures of Cash Flow Information:
Interest￿paid
Income￿taxes￿paid

228,775
13,057
2,823
52,371
1,062
164,852
(22,658)

(192,149)
9,277
(518,121)
(32,941)
(57,282)
321,486
68,131
1,054,173

(210,804)
(4,000)
(904,856)
1,195,031
(443,712) 2
(368,341)

(216,085)
(300,000)
31,822
740,445 4
(368,303) 5
-
-
(4,100)
3,110
(113,111)

572,721
(9,623)
563,098
1,767,596
2,330,694

186,620
3,234
2,272
18,714
458
130,911
(72,374)

246,982
(225,103)
(352,716)
19,117
(147,691)
(225,083)
(28,179)
703,478

(171,878)
(7,658)
(1,379,997)
449,992
(10,292)
(1,119,833)

(188,892)
(535,373)
3,907,666 3
-
-
(3,728,324) 6
-
(2,776)
2,116
(545,583)

(961,938)
(2,248)
(964,186)
2,731,782
1,767,596

165,185
12,272
3,368
12,430
849
60,300
63,250

267,209
(37,301)
(276,243)
(58,292)
589,217
(126,234)
(72,530)
2,070,440

(300,898)
-
-
-
-
(300,898)

(172,645)
(700,452)
34,084
-
-
-
(150,000)
(2,537)
(11)
(991,561)

777,981
3,967
781,948
1,949,834
2,731,782

(50,535)
(2,278)

(37,906)
(109,504)

(35,919)
(202,312)

An￿amount￿of￿EUR￿115.9￿million￿(2012:￿EUR￿204.8￿million,￿2011:￿EUR￿300.5￿million)￿of￿the￿additions￿in￿property,￿plant￿and￿equipment￿relates￿to￿non-
cash￿transfers￿from￿inventory,￿an￿amount￿of￿EUR￿12.5￿million￿(2012:￿EUR￿9.6￿million,￿2011:￿EUR￿17.7￿million)￿relates￿to￿other￿non-cash￿movements
(mainly￿investments￿not￿yet￿paid￿and￿inceptions￿of￿finance￿lease￿arrangements)￿and￿an￿amount￿of￿EUR￿48.2￿million￿(2012:￿EUR￿222.9￿million,￿2011:
EUR￿145.3￿million)￿of￿the￿disposal￿of￿property,￿plant￿and￿equipment￿relates￿to￿non-cash￿transfers￿to￿inventory.￿Since￿the￿transfers￿between￿inventory
and￿property,￿plant￿and￿equipment￿are￿non-cash￿events,￿these￿are￿not￿reflected￿in￿these￿Consolidated￿Statements￿of￿Cash￿Flows.￿For￿further￿details
see￿Note￿12.
In￿addition￿to￿the￿cash￿paid￿in￿relation￿to￿the￿acquisition￿of￿Cymer,￿we￿issued￿36,464,576￿shares￿for￿an￿amount￿of￿EUR￿2,346.7￿million￿(non-cash
event)￿as￿part￿of￿the￿consideration￿paid.
The￿net￿proceeds￿from￿issuance￿of￿shares￿includes￿an￿amount￿of￿EUR￿3,853.9￿million￿related￿to￿the￿share￿issuances￿in￿connection￿to￿the￿CCIP.
Net￿proceeds￿from￿issuance￿of￿notes￿relate￿to￿the￿total￿cash￿proceeds￿of￿EUR￿740.4￿million￿(net￿of￿incurred￿transaction￿costs)￿from￿the￿offering￿of￿our
EUR￿750￿million￿3.375￿percent￿senior￿notes￿due￿2023.
Repurchase￿of￿notes￿relates￿to￿the￿net￿cash￿outflows￿of￿EUR￿368.3￿million￿for￿the￿partial￿repurchase￿of￿our￿EUR￿600￿million￿5.75￿percent￿senior￿notes
due￿2017￿including￿the￿partial￿unwinding￿of￿the￿related￿interest￿rate￿swaps.
The￿difference￿of￿EUR￿125.6￿million￿between￿the￿capital￿repayment￿of￿EUR￿3,728.3￿million￿and￿the￿net￿proceeds￿from￿issuance￿of￿shares￿of￿EUR
3,853.9￿million￿relates￿to￿the￿capital￿repayment￿on￿ASML's￿treasury￿shares￿which￿was￿also￿part￿of￿the￿Synthetic￿Share￿Buyback￿in￿November￿2012.

ASML￿ANNUAL￿REPORT￿2013

F-6

Notes to the Consolidated Financial Statements

1. General Information / Summary of Significant Accounting Policies
ASML,￿with￿its￿corporate￿headquarters￿in￿Veldhoven,￿the￿Netherlands,￿is￿engaged￿in￿the￿development,￿production,
marketing,￿selling￿and￿servicing￿of￿advanced￿semiconductor￿equipment￿systems,￿exclusively￿consisting￿of￿lithography
systems.￿ASML's￿principal￿operations￿are￿in￿the￿Netherlands,￿the￿United￿States￿of￿America￿and￿Asia.

Our￿shares￿are￿listed￿for￿trading￿in￿the￿form￿of￿registered￿shares￿on￿NASDAQ￿and￿on￿NYSE￿Euronext￿Amsterdam.￿The
principal￿trading￿market￿of￿our￿ordinary￿shares￿is￿NYSE￿Euronext￿Amsterdam.

Basis of Preparation
The￿accompanying￿Consolidated￿Financial￿Statements￿are￿stated￿in￿thousands￿of￿EUR￿unless￿indicated￿otherwise.

The￿accompanying￿Consolidated￿Financial￿Statements￿have￿been￿prepared￿in￿conformity￿with￿US￿GAAP.

On￿May￿30,￿2013￿we￿acquired￿100￿percent￿of￿the￿issued￿share￿capital￿of￿Cymer.￿Comparative￿financial￿information
presented￿in￿the￿Consolidated￿Financial￿Statements￿does￿not￿include￿Cymer,￿unless￿stated￿otherwise.

Use of Estimates
The￿preparation￿of￿ASML’s￿Consolidated￿Financial￿Statements￿in￿conformity￿with￿US￿GAAP￿requires￿management
to￿make￿estimates￿and￿assumptions￿that￿affect￿the￿reported￿amounts￿of￿assets￿and￿liabilities￿and￿the￿disclosure￿of
contingent￿assets￿and￿liabilities￿on￿the￿balance￿sheet￿dates,￿and￿the￿reported￿amounts￿of￿sales￿and￿costs￿during￿the
reported￿periods.￿Actual￿results￿could￿differ￿from￿those￿estimates.

Principles of Consolidation
The￿Consolidated￿Financial￿Statements￿include￿the￿Financial￿Statements￿of￿ASML￿Holding￿N.V.￿and￿all￿of￿its￿subsidiaries
and￿the￿VIE￿of￿which￿ASML￿is￿the￿primary￿beneficiary.￿All￿intercompany￿profits,￿balances￿and￿transactions￿have￿been
eliminated￿in￿the￿consolidation.

Subsidiaries
Subsidiaries￿are￿all￿entities￿over￿which￿ASML￿has￿the￿power￿to￿govern￿financial￿and￿operating￿policies￿generally
accompanying￿a￿shareholding￿of￿more￿than￿half￿of￿the￿voting￿rights.￿As￿from￿the￿date￿that￿these￿criteria￿are￿met,￿the
financial￿data￿of￿the￿relevant￿subsidiaries￿are￿included￿in￿the￿consolidation.

Business Combinations
Acquisitions￿of￿subsidiaries￿are￿included￿on￿the￿basis￿of￿the￿acquisition￿method.￿The￿cost￿of￿acquisition￿is￿measured
based￿on￿the￿consideration￿transferred￿at￿fair￿value,￿the￿fair￿value￿of￿identifiable￿assets￿distributed￿and￿the￿fair￿value￿of
liabilities￿incurred￿or￿assumed￿at￿the￿acquisition￿date￿(i.e.￿the￿date￿at￿which￿we￿obtain￿control).￿The￿excess￿of￿the￿costs
of￿an￿acquired￿subsidiary￿over￿the￿net￿of￿the￿amounts￿assigned￿to￿identifiable￿assets￿acquired￿and￿liabilities￿incurred￿or
assumed,￿is￿capitalized￿as￿goodwill.￿Acquisition-related￿costs￿are￿expensed￿when￿incurred￿in￿the￿period￿they￿arise￿or￿the
service￿is￿received.

Variable Interest Entities
We￿assess￿whether￿we￿have￿a￿controlling￿financial￿interest￿in￿any￿VIE￿and,￿thus,￿whether￿we￿are￿the￿VIE’s￿primary
beneficiary.￿ASML￿shall￿be￿deemed￿to￿have￿a￿controlling￿financial￿interest￿in￿a￿VIE￿if￿it￿has￿both￿of￿the￿following
characteristics:￿a)￿the￿power￿to￿direct￿the￿activities￿of￿a￿VIE￿that￿most￿significantly￿impact￿the￿VIE’s￿economic
performance￿and￿b)￿the￿obligation￿to￿absorb￿losses￿of￿the￿VIE￿that￿could￿potentially￿be￿significant￿to￿the￿VIE￿or￿the
right￿to￿receive￿benefits￿from￿the￿VIE￿that￿could￿potentially￿be￿significant￿to￿the￿VIE.￿If￿ASML￿has￿a￿controlling￿financial
interest￿in￿a￿VIE,￿it￿is￿required￿to￿consolidate￿the￿VIE.

Foreign Currency translation
The￿financial￿information￿for￿subsidiaries￿outside￿the￿euro-zone￿is￿generally￿measured￿using￿local￿currencies￿as￿the
functional￿currency.￿The￿Financial￿Statements￿of￿those￿foreign￿subsidiaries￿are￿translated￿into￿euros￿in￿the￿preparation￿of
ASML’s￿consolidated￿financial￿statements.￿Assets￿and￿liabilities￿are￿translated￿into￿euros￿at￿the￿exchange￿rate￿in￿effect
on￿the￿respective￿balance￿sheet￿dates.￿Income￿and￿costs￿are￿translated￿into￿euros￿based￿on￿the￿average￿exchange￿rate
for￿the￿corresponding￿period.￿The￿resulting￿translation￿adjustments￿are￿recorded￿directly￿in￿shareholders’￿equity.

ASML￿ANNUAL￿REPORT￿2013

F-7

Derivative Financial Instruments
We￿principally￿use￿derivative￿hedging￿instruments￿for￿the￿management￿of￿foreign￿currency￿risks￿and￿interest￿rate￿risks.
We￿measure￿all￿derivative￿hedging￿instruments￿based￿on￿fair￿values￿derived￿from￿market￿prices￿of￿the￿instruments.￿We
adopt￿hedge￿accounting￿for￿hedges￿that￿are￿highly￿effective￿in￿offsetting￿the￿identified￿hedged￿risks￿taking￿into￿account
required￿effectiveness￿criteria.

Derivatives￿are￿initially￿recognized￿at￿fair￿value￿on￿the￿date￿a￿derivative￿contract￿is￿entered￿into￿and￿are￿subsequently
remeasured￿at￿their￿fair￿value.￿The￿method￿of￿recognizing￿the￿resulting￿gain￿or￿loss￿depends￿on￿whether￿the￿derivative￿is
designated￿as￿a￿hedging￿instrument,￿and￿if￿so,￿the￿nature￿of￿the￿item￿being￿hedged.￿We￿designate￿certain￿derivatives￿as
either:￿
• A￿hedge￿of￿the￿exposure￿to￿changes￿in￿the￿fair￿value￿of￿a￿recognized￿asset￿or￿liability,￿or￿of￿an￿unrecognized￿firm

commitment,￿that￿are￿attributable￿to￿a￿particular￿risk￿(fair￿value￿hedge);￿or

• A￿hedge￿of￿the￿exposure￿to￿variability￿in￿the￿cash￿flows￿of￿a￿recognized￿asset￿or￿liability,￿or￿of￿a￿forecasted

transaction,￿that￿is￿attributable￿to￿a￿particular￿risk￿(cash￿flow￿hedge).

We￿document￿at￿the￿inception￿of￿the￿transaction￿the￿relationship￿between￿hedging￿instruments￿and￿hedged￿items,￿as
well￿as￿our￿risk￿management￿objectives￿and￿strategy￿for￿undertaking￿various￿hedging￿transactions.￿We￿also￿document
our￿assessment,￿both￿at￿hedge￿inception￿and￿on￿an￿ongoing￿basis,￿of￿whether￿derivatives￿that￿are￿used￿in￿hedging
transactions￿are￿highly￿effective￿in￿offsetting￿changes￿in￿fair￿values￿or￿cash￿flows￿of￿hedged￿items.

Fair Value Hedge
Changes￿in￿the￿fair￿value￿of￿a￿derivative￿financial￿instrument,￿that￿is￿designated￿and￿qualified￿as￿a￿fair￿value￿hedge,
along￿with￿the￿gain￿or￿loss￿on￿the￿hedged￿asset￿or￿liability￿that￿is￿attributable￿to￿the￿hedged￿risk,￿are￿recorded￿in￿the
Consolidated￿Statements￿of￿Operations.

Hedge￿accounting￿is￿discontinued￿when￿we￿revoke￿the￿hedging￿relationship,￿the￿hedging￿instrument￿expires￿or￿is￿sold,
terminated￿or￿exercised,￿or￿no￿longer￿qualifies￿for￿hedge￿accounting.￿The￿adjustment￿to￿the￿carrying￿amount￿of￿the
hedged￿item￿arising￿from￿the￿hedged￿risk￿is￿amortized￿to￿the￿Consolidated￿Statements￿of￿Operations￿from￿that￿date.

Interest￿rate￿swaps￿that￿are￿being￿used￿to￿hedge￿the￿fair￿value￿of￿fixed￿loan￿coupons￿payable￿are￿designated￿as￿fair
value￿hedges.￿The￿change￿in￿fair￿value￿is￿intended￿to￿offset￿the￿change￿in￿the￿fair￿value￿of￿the￿underlying￿fixed￿loan
coupons,￿which￿is￿recorded￿accordingly.￿The￿gain￿or￿loss￿relating￿to￿the￿ineffective￿portion￿of￿interest￿rate￿swaps
hedging￿fixed￿loan￿coupons￿payable￿is￿recognized￿in￿the￿Consolidated￿Statements￿of￿Operations￿as￿"interest￿and￿other,
net".

Cash Flow Hedge
Changes￿in￿the￿fair￿value￿of￿a￿derivative￿that￿is￿designated￿and￿qualified￿as￿a￿cash￿flow￿hedge￿are￿recorded￿in￿OCI,￿net￿of
taxes,￿until￿the￿underlying￿hedged￿transaction￿is￿recognized￿in￿the￿Consolidated￿Statements￿of￿Operations.￿In￿the￿event
that￿the￿underlying￿hedge￿transaction￿will￿not￿occur￿within￿the￿specified￿time￿period,￿the￿gain￿or￿loss￿on￿the￿related
cash￿flow￿hedge￿is￿released￿from￿OCI￿and￿included￿in￿the￿Consolidated￿Statements￿of￿Operations,￿unless,￿extenuating
circumstances￿exist￿that￿are￿related￿to￿the￿nature￿of￿the￿forecasted￿transaction￿and￿are￿outside￿our￿control￿or￿influence
and￿which￿cause￿the￿forecasted￿transaction￿to￿be￿probable￿of￿occurring￿on￿a￿date￿that￿is￿beyond￿the￿specified￿time
period.

Foreign￿currency￿hedging￿instruments￿that￿are￿being￿used￿to￿hedge￿cash￿flows￿related￿to￿forecasted￿sales￿or￿purchase
transactions￿in￿non-functional￿currencies￿are￿designated￿as￿cash￿flow￿hedges.￿The￿gain￿or￿loss￿relating￿to￿the￿ineffective
portion￿of￿the￿foreign￿currency￿hedging￿instruments￿is￿recognized￿in￿the￿Consolidated￿Statements￿of￿Operations￿in￿"net
sales"￿or￿"cost￿of￿sales".

Interest￿rate￿swaps￿that￿are￿being￿used￿to￿hedge￿changes￿in￿the￿variability￿of￿future￿interest￿cash￿flows￿to￿certain￿of
our￿operating￿lease￿obligations￿are￿designated￿as￿cash￿flow￿hedges.￿The￿changes￿in￿fair￿value￿of￿the￿derivatives￿are
intended￿to￿offset￿changes￿in￿future￿interest￿cash￿flows￿of￿such￿operating￿lease￿obligations.￿The￿gain￿or￿loss￿relating
to￿the￿ineffective￿portion￿of￿interest￿rate￿swaps￿hedging￿the￿variability￿of￿future￿interest￿cash￿flows￿is￿recognized￿in￿the
Consolidated￿Statements￿of￿Operations￿as￿"interest￿and￿other,￿net".

Net Investment Hedge
Foreign￿currency￿hedging￿instruments￿that￿are￿being￿used￿to￿hedge￿changes￿in￿the￿value￿of￿a￿net￿investment￿are
designated￿as￿net￿investment￿hedges.￿Changes￿in￿the￿fair￿value￿of￿a￿derivative￿that￿is￿designated￿and￿qualifies￿as￿a￿net
investment￿hedge￿are￿recorded￿in￿OCI,￿net￿of￿taxes.￿The￿gain￿or￿loss￿relating￿to￿the￿ineffective￿portion￿is￿recognized
in￿the￿Consolidated￿Statements￿of￿Operations￿as￿"interest￿and￿other,￿net".￿Gains￿and￿losses￿accumulated￿in￿OCI￿are
recognized￿in￿the￿Consolidated￿Statements￿of￿Operations￿when￿the￿foreign￿operation￿is￿(partially)￿disposed￿or￿sold.

ASML￿ANNUAL￿REPORT￿2013

F-8

Cash and Cash Equivalents
Cash￿and￿cash￿equivalents￿consist￿primarily￿of￿highly￿liquid￿investments,￿such￿as￿bank￿deposits,￿money￿market￿funds
and￿interest-bearing￿bank￿accounts￿with￿insignificant￿interest￿rate￿risk￿and￿remaining￿maturities￿of￿three￿months￿or￿less
at￿the￿date￿of￿acquisition.

Short-term Investments
Investments￿with￿remaining￿maturities￿longer￿than￿three￿months￿and￿less￿than￿one￿year￿at￿the￿date￿of￿acquisition￿are
presented￿as￿short-term￿investments.￿The￿short-term￿investments￿are￿classified￿as￿available-for-sale￿securities￿and
are￿stated￿at￿fair￿value.￿Gains￿and￿losses,￿other￿than￿impairments,￿interest￿income￿and￿foreign￿exchange￿results,￿are
recognized￿in￿OCI￿until￿the￿short-term￿investments￿are￿derecognized.￿Upon￿derecognition,￿the￿cumulative￿gain￿or￿loss
recognized￿in￿OCI,￿is￿recognized￿in￿the￿Consolidated￿Statements￿of￿Operations.

Inventories
Inventories￿are￿stated￿at￿the￿lower￿of￿cost￿(first-in,￿first-out￿method)￿or￿market￿value.￿Cost￿includes￿net￿prices￿paid￿for
materials￿purchased,￿charges￿for￿freight￿and￿customs￿duties,￿production￿labor￿cost￿and￿factory￿overhead.￿Allowances
are￿made￿for￿slow-moving,￿obsolete￿or￿unsellable￿inventory.

Allowances￿for￿inventory￿are￿determined￿based￿on￿the￿expected￿demand￿which￿is￿derived￿from￿sales￿forecasts￿as￿well￿as
the￿expected￿market￿value￿of￿the￿inventory.

Intangible Assets
Goodwill
Goodwill￿represents￿the￿excess￿of￿the￿costs￿of￿an￿acquisition￿over￿the￿fair￿value￿of￿the￿amounts￿assigned￿to￿assets
acquired￿and￿liabilities￿incurred￿or￿assumed￿of￿the￿acquired￿subsidiary￿at￿the￿date￿of￿acquisition.￿Goodwill￿on￿acquisition
of￿subsidiaries￿is￿allocated￿to￿reporting￿units￿for￿the￿purpose￿of￿impairment￿testing.￿The￿allocation￿is￿made￿to￿those
reporting￿units￿that￿are￿expected￿to￿benefit￿from￿the￿business￿combination￿in￿which￿the￿goodwill￿arose.￿Goodwill
is￿tested￿for￿impairment￿annually￿at￿the￿end￿of￿the￿third￿quarter￿and￿whenever￿events￿or￿changes￿in￿circumstances
indicate￿that￿the￿carrying￿amount￿of￿the￿goodwill￿may￿not￿be￿recoverable.￿Goodwill￿is￿stated￿at￿cost￿less￿accumulated
impairment￿losses.

Other Intangible Assets
Other￿intangible￿assets￿include￿brands,￿intellectual￿property,￿developed￿technology,￿customer￿relationships,￿in-process
R&D￿and￿other￿intangible￿assets.￿Other￿intangible￿assets￿are￿stated￿at￿cost,￿less￿accumulated￿amortization￿and￿any
accumulated￿impairment￿losses.￿Amortization￿is￿calculated￿using￿the￿straight-line￿method￿based￿on￿the￿estimated￿useful
lives￿of￿the￿assets.￿The￿following￿table￿presents￿the￿estimated￿useful￿lives￿of￿ASML’s￿finite-lived￿other￿intangible￿assets:

Category
Brands
Intellectual￿property
Developed￿technology
Customer￿relationships
Other

Estimated useful life
20￿years
3-10￿years
6-15￿years
8-18￿years
2-6￿years

Infinite-lived￿other￿intangibles￿assets￿are￿tested￿for￿impairment￿annually￿at￿the￿end￿of￿the￿third￿quarter￿and￿whenever
events￿or￿changes￿in￿circumstances￿indicate￿that￿the￿carrying￿amount￿of￿the￿infinite-lived￿other￿intangible￿assets￿may
not￿be￿recoverable.

ASML￿ANNUAL￿REPORT￿2013

F-9

Property, Plant and Equipment
Property,￿plant￿and￿equipment￿are￿stated￿at￿cost,￿less￿accumulated￿depreciation￿and￿accumulated￿impairment￿losses.
Costs￿of￿assets￿manufactured￿by￿ASML￿include￿direct￿manufacturing￿costs,￿production￿overhead￿and￿interest￿costs
incurred￿for￿qualifying￿assets￿during￿the￿construction￿period.￿Depreciation￿is￿calculated￿using￿the￿straight-line￿method
based￿on￿the￿estimated￿useful￿lives￿of￿the￿related￿assets.￿In￿the￿case￿of￿leasehold￿improvements,￿the￿estimated￿useful
lives￿of￿the￿related￿assets￿do￿not￿exceed￿the￿remaining￿term￿of￿the￿corresponding￿lease.

The￿following￿table￿presents￿the￿estimated￿useful￿lives￿of￿ASML’s￿property,￿plant￿and￿equipment:

Category
Buildings￿and￿constructions
Machinery￿and￿equipment
Leasehold￿improvements
Furniture,￿fixtures￿and￿other￿equipment

Estimated useful life
5￿-￿45￿years
2￿-￿10￿years
5￿-￿10￿years
3￿-￿5￿years

Land￿is￿not￿depreciated.

Certain￿internal￿and￿external￿costs￿associated￿with￿the￿purchase￿and/or￿development￿of￿internally￿used￿software￿are
capitalized￿when￿both￿the￿preliminary￿project￿stage￿is￿completed￿and￿management￿has￿authorized￿further￿funding￿for
the￿project,￿which￿it￿has￿deemed￿probable￿to￿be￿completed￿and￿to￿be￿usable￿for￿the￿intended￿function.￿These￿costs￿are
depreciated￿on￿a￿straight-line￿basis￿over￿the￿period￿of￿related￿benefit,￿which￿ranges￿primarily￿from￿three￿to￿five￿years.

Evaluation of Long-lived Assets for Impairment
Long-lived￿assets￿include￿goodwill,￿other￿intangible￿assets￿and￿property,￿plant￿and￿equipment.

Goodwill￿is￿tested￿for￿impairment￿annually￿at￿the￿end￿of￿the￿third￿quarter￿and￿whenever￿events￿or￿changes￿in
circumstances￿indicate￿that￿the￿carrying￿amount￿of￿the￿goodwill￿may￿not￿be￿recoverable.￿These￿events￿or￿circumstances
could￿include￿a￿significant￿change￿in￿the￿business￿climate,￿legal￿factors,￿operating￿performance￿indicators,￿competition,
or￿sale￿or￿disposition￿of￿a￿significant￿portion￿of￿a￿reporting￿unit.￿The￿test￿is￿based￿on￿a￿two-step￿approach￿for￿each
reporting￿unit￿(being￿an￿operating￿segment￿or￿one￿level￿below￿an￿operating￿segment)￿in￿which￿goodwill￿has￿been
recorded.￿First,￿recoverability￿is￿tested￿by￿comparing￿the￿carrying￿amount￿of￿the￿reporting￿unit￿including￿goodwill
with￿the￿fair￿value￿of￿the￿reporting￿unit.￿If￿the￿carrying￿amount￿of￿the￿reporting￿unit￿is￿higher￿than￿the￿fair￿value￿of￿the
reporting￿unit,￿the￿second￿step￿should￿be￿performed.￿Goodwill￿impairment￿is￿measured￿as￿the￿excess￿of￿the￿carrying
amount￿of￿the￿goodwill￿over￿its￿implied￿fair￿value.￿The￿implied￿fair￿value￿of￿goodwill￿is￿determined￿by￿calculating￿the￿fair
value￿of￿the￿various￿assets￿and￿liabilities￿included￿in￿the￿reporting￿unit￿in￿the￿same￿manner￿as￿goodwill￿is￿determined￿in￿a
business￿combination.

Other￿intangible￿assets￿and￿property,￿plant￿and￿equipment￿are￿reviewed￿for￿impairment￿whenever￿events￿or￿changes￿in
circumstances￿indicate￿that￿the￿carrying￿amount￿of￿those￿assets￿may￿not￿be￿recoverable.￿Other￿intangible￿assets￿and
property,￿plant￿and￿equipment￿are￿tested￿for￿impairment￿based￿on￿a￿two-step￿approach.￿First,￿the￿recoverability￿is￿tested
by￿comparing￿the￿carrying￿amount￿of￿the￿other￿intangible￿assets￿and￿property,￿plant￿and￿equipment￿with￿their￿fair￿value,
being￿the￿sum￿of￿the￿related￿undiscounted￿future￿cash￿flows.￿Second,￿if￿the￿carrying￿amount￿of￿the￿other￿intangible
assets￿and￿property,￿plant￿and￿equipment￿is￿higher￿than￿this￿fair￿value￿the￿assets￿are￿considered￿to￿be￿impaired.￿The
impairment￿to￿be￿recognized￿is￿measured￿by￿the￿amount￿by￿which￿the￿carrying￿amount￿of￿the￿assets￿exceeds￿the￿fair
value￿of￿the￿assets.

In￿determining￿the￿fair￿value￿of￿a￿long-lived￿asset￿(other￿than￿goodwill),￿we￿make￿estimates￿about￿future￿cash￿flows.
These￿estimates￿are￿based￿on￿our￿financial￿plan￿updated￿with￿the￿latest￿available￿projection￿of￿the￿semiconductor
market￿conditions￿and￿our￿sales￿and￿cost￿expectations,￿which￿are￿consistent￿with￿the￿plans￿and￿estimates￿that￿we￿use
to￿manage￿our￿business.￿We￿also￿make￿estimates￿and￿assumptions￿concerning￿WACC￿and￿future￿inflation￿rates.￿It￿is
possible￿that￿actual￿results￿may￿differ￿from￿our￿plans,￿estimates￿and￿assumptions,￿which￿may￿require￿impairment￿of
certain￿long-lived￿assets￿(other￿than￿goodwill).￿Future￿adverse￿changes￿in￿market￿conditions￿may￿also￿require￿impairment
of￿certain￿long-lived￿assets￿(other￿than￿goodwill),￿which￿could￿have￿a￿material￿adverse￿effect￿on￿our￿financial￿condition
and￿results￿of￿operations.

Provisions
Provisions￿for￿lease￿contract￿termination￿costs￿are￿recognized￿when￿costs￿will￿continue￿to￿be￿incurred￿under￿a￿contract
for￿its￿remaining￿term￿without￿economic￿benefit￿to￿us￿and￿we￿cease￿using￿the￿rights￿conveyed￿by￿the￿contract.￿The
provisions￿are￿measured￿at￿fair￿value,￿which￿for￿an￿operating￿lease￿contract￿is￿determined￿based￿on￿the￿remaining￿lease
payments￿reduced￿by￿the￿estimated￿sublease￿payments￿that￿could￿be￿reasonably￿obtained.

ASML￿ANNUAL￿REPORT￿2013

F-10

Revenue Recognition
ASML￿recognizes￿revenue￿when￿all￿four￿revenue￿recognition￿criteria￿are￿met:￿persuasive￿evidence￿of￿an￿arrangement
exists;￿delivery￿has￿occurred￿or￿services￿have￿been￿rendered;￿seller’s￿price￿to￿buyer￿is￿fixed￿or￿determinable;￿and
collectability￿is￿reasonably￿assured.￿At￿ASML￿this￿policy￿generally￿results￿in￿revenue￿recognition￿from￿the￿sale￿of￿a
system￿upon￿shipment.￿The￿revenue￿from￿the￿installation￿of￿a￿system￿is￿generally￿recognized￿upon￿completion￿of￿that
installation￿at￿the￿customer￿site.￿Prior￿to￿shipment,￿systems￿undergo￿a￿"Factory￿Acceptance￿Test"￿in￿our￿clean￿room
facilities,￿effectively￿replicating￿the￿operating￿conditions￿that￿will￿be￿present￿on￿the￿customer's￿site,￿in￿order￿to￿verify
whether￿the￿system￿will￿meet￿its￿standard￿specifications￿and￿any￿additional￿technical￿and￿performance￿criteria￿agreed
with￿the￿customer,￿if￿any.￿A￿system￿is￿shipped,￿and￿revenue￿is￿recognized,￿only￿after￿all￿contractual￿specifications￿are
met￿and￿customer￿sign-off￿is￿received￿or￿waived.￿In￿case￿not￿all￿specifications￿are￿met￿and￿the￿remaining￿performance
obligation￿is￿not￿essential￿to￿the￿functionality￿of￿the￿system￿but￿is￿substantive￿rather￿than￿inconsequential￿or￿perfunctory,
a￿portion￿of￿the￿sales￿price￿is￿deferred.￿Although￿each￿system's￿performance￿is￿re-tested￿upon￿installation￿at￿the
customer's￿site,￿we￿have￿never￿failed￿to￿successfully￿complete￿installation￿of￿a￿system￿at￿a￿customer’s￿premises.

In￿connection￿with￿the￿introduction￿of￿new￿technology,￿such￿as￿our￿second-￿and￿third-generation￿EUV￿systems
(NXE:3100￿and￿NXE:3300B),￿we￿initially￿defer￿revenue￿recognition￿until￿acceptance￿of￿the￿new￿technology￿based￿system
and￿completion￿of￿installation￿at￿the￿customer￿premises.￿As￿our￿systems￿are￿based￿largely￿on￿two￿product￿platforms￿that
permit￿incremental,￿modular￿upgrades,￿the￿introduction￿of￿genuinely￿"new"￿technology￿occurs￿infrequently,￿and￿in￿the
past￿15￿years,￿has￿occurred￿on￿only￿two￿occasions:￿1999￿(TWINSCAN)￿and￿2010￿(EUV).

We￿have￿no￿significant￿repurchase￿commitments￿in￿our￿general￿sales￿terms￿and￿conditions.￿From￿time￿to￿time￿we
repurchase￿systems￿that￿we￿have￿manufactured￿and￿sold￿and,￿following￿refurbishment,￿we￿resell￿those￿systems￿to
other￿customers.￿This￿repurchase￿decision￿is￿driven￿by￿market￿demand￿expressed￿by￿other￿customers￿and￿not￿by
explicit￿or￿implicit￿contractual￿arrangements￿relating￿to￿the￿initial￿sale.￿We￿consider￿reasonable￿offers￿from￿any￿vendor,
including￿customers,￿to￿repurchase￿used￿systems￿so￿that￿we￿can￿refurbish,￿resell,￿and￿install￿these￿systems￿as￿part
of￿our￿normal￿business￿operations.￿Once￿repurchased,￿the￿repurchase￿price￿of￿the￿used￿system￿is￿recorded￿in￿work-
in-process￿inventory￿during￿the￿period￿it￿is￿being￿refurbished,￿following￿which￿the￿refurbished￿system￿is￿reflected￿in
finished￿products￿inventory￿until￿it￿is￿sold￿to￿the￿customer.￿As￿of￿December￿31,￿2013￿and￿2012,￿ASML￿had￿no￿repurchase
commitments.

We￿offer￿customers￿discounts￿in￿the￿normal￿course￿of￿sales￿negotiations.￿These￿discounts￿are￿directly￿deducted￿from￿the
gross￿sales￿price￿at￿the￿moment￿of￿revenue￿recognition.￿In￿addition,￿we￿offer￿volume￿discounts￿to￿customers.￿In￿some
instances￿these￿volume￿discounts￿can￿be￿used￿to￿purchase￿field￿options￿(system￿enhancements).￿The￿related￿amount
is￿recorded￿as￿a￿reduction￿in￿net￿sales￿at￿time￿of￿shipment.￿From￿time￿to￿time,￿we￿offer￿free￿or￿discounted￿products￿or
services￿(award￿credits)￿to￿our￿customers￿as￿part￿of￿a￿volume￿purchase￿agreement.￿The￿sales￿transaction￿that￿gives￿rise
to￿these￿award￿credits￿is￿accounted￿for￿as￿a￿multiple￿element￿sales￿transaction￿as￿the￿agreements￿involve￿the￿delivery
of￿multiple￿products.￿The￿consideration￿received￿from￿the￿sales￿transaction￿is￿allocated￿between￿the￿award￿credits￿and
the￿other￿elements￿of￿the￿sales￿transaction.￿The￿consideration￿allocated￿to￿the￿award￿credits￿is￿recognized￿as￿deferred
revenue￿until￿award￿credits￿are￿delivered￿to￿the￿customer.￿The￿amount￿allocable￿to￿a￿delivered￿item￿is￿limited￿to￿the
amount￿that￿is￿not￿contingent￿upon￿the￿delivery￿of￿additional￿items￿or￿meeting￿other￿specified￿performance￿conditions
(the￿non-contingent￿amount).

Net￿sales￿are￿recognized￿excluding￿the￿taxes￿levied￿on￿sales￿(net￿basis).

In￿the￿event￿of￿expected￿losses￿on￿executory￿contracts,￿we￿recognize￿a￿liability￿for￿the￿amount￿that￿the￿cost￿of￿settling
the￿contract￿exceeds￿the￿amount￿of￿the￿contract￿price.￿When￿we￿satisfy￿these￿contracts,￿we￿derecognize￿the￿related
liability.

Multiple Element Arrangements
The￿main￿portion￿of￿our￿net￿sales￿is￿derived￿from￿contractual￿arrangements￿with￿our￿customers￿that￿have￿multiple
deliverables,￿which￿mainly￿include￿the￿sale￿of￿our￿systems,￿installation￿and￿training￿services￿and￿prepaid￿extended
and￿enhanced￿(optic)￿warranty￿contracts.￿As￿of￿January￿1,￿2011,￿we￿have￿adopted￿ASU￿2009-13,￿"Sales￿Arrangements
with￿Multiple￿Deliverables"￿which￿amended￿the￿guidance￿on￿arrangements￿with￿multiple￿deliverables￿in￿ASC￿605-25.
The￿amended￿standard￿changes￿the￿requirements￿for￿establishing￿separate￿units￿of￿accounting￿in￿a￿multiple￿element
arrangement￿and￿requires￿the￿allocation￿of￿arrangement￿consideration￿to￿each￿deliverable￿to￿be￿based￿on￿the￿relative
selling￿price.

Each￿element￿in￿the￿arrangement￿is￿accounted￿for￿as￿a￿separate￿unit￿of￿accounting￿provided￿the￿following￿criteria￿are
met:￿the￿delivered￿products￿or￿services￿have￿value￿to￿the￿customer￿on￿a￿standalone￿basis;￿and￿for￿an￿arrangement
that￿includes￿a￿general￿right￿of￿return￿relative￿to￿the￿delivered￿products￿or￿services,￿delivery￿or￿performance￿of￿the
undelivered￿product￿or￿service￿is￿considered￿probable￿and￿is￿substantially￿controlled￿by￿us.￿We￿consider￿a￿deliverable

ASML￿ANNUAL￿REPORT￿2013

F-11

to￿have￿stand-alone￿value￿if￿the￿product￿or￿service￿is￿sold￿separately￿by￿us￿or￿another￿vendor￿or￿could￿be￿resold￿by￿the
customer.￿Further,￿our￿sales￿arrangements￿do￿not￿include￿a￿general￿right￿of￿return￿relative￿to￿the￿delivered￿products.
Where￿the￿aforementioned￿criteria￿for￿a￿separate￿unit￿of￿accounting￿are￿not￿met,￿the￿deliverable￿is￿combined￿with￿the
undelivered￿element(s)￿and￿treated￿as￿a￿single￿unit￿of￿accounting￿for￿the￿purposes￿of￿allocation￿of￿the￿arrangement
consideration￿and￿revenue￿recognition.

The￿hierarchy￿of￿evidence￿to￿determine￿a￿selling￿price￿in￿ASC￿605-25￿is￿as￿follows:

• VSOE￿–￿the￿price￿at￿which￿we￿sell￿the￿element￿in￿a￿separate￿stand-alone￿transaction;
• TPE￿–￿evidence￿from￿us￿or￿other￿companies￿of￿the￿value￿of￿a￿largely￿interchangeable￿element￿in￿a￿transaction;
• BESP￿–￿our￿best￿estimate￿of￿the￿selling￿price￿of￿an￿element￿in￿the￿transaction.

To￿determine￿the￿selling￿price￿in￿multiple￿elements￿arrangements,￿we￿establish￿VSOE￿of￿the￿selling￿price￿for￿installation,
training￿services￿and￿prepaid￿extended￿and￿enhanced￿(optic)￿warranty￿contracts.￿VSOE￿for￿installation￿is￿determined
based￿on￿the￿prices￿that￿we￿charge￿for￿billable￿labor￿and￿materials￿consumed￿in￿comparable￿services￿(such￿as￿relocating
a￿system￿to￿another￿customer￿site).￿VSOE￿for￿prepaid￿extended￿and￿enhanced￿(optic)￿warranty￿contracts￿is￿determined
on￿the￿basis￿of￿similair￿products￿we￿sell￿on￿a￿standalone￿basis,￿such￿as￿full￿service￿contracts￿and￿billable￿lens￿swaps,
and￿which￿are￿subject￿to￿normal￿price￿negotiations.￿Revenue￿from￿installation￿and￿training￿services￿is￿recognized￿when
the￿services￿are￿completed.￿Revenue￿from￿prepaid￿extended￿and￿enhanced￿(optic)￿warranty￿contracts￿is￿recognized
over￿the￿term￿of￿the￿contract.￿When￿we￿are￿unable￿to￿establish￿the￿selling￿price￿using￿VSOE￿or￿TPE,￿we￿use￿BESP.￿The
objective￿of￿using￿estimated￿selling￿price-based￿methodology￿is￿to￿determine￿the￿price￿at￿which￿we￿would￿transact￿a
sale￿if￿the￿product￿or￿service￿were￿sold￿on￿a￿stand-alone￿basis.￿Accordingly,￿we￿determine￿BESP￿considering￿several
internal￿and￿external￿factors￿including,￿but￿not￿limited￿to,￿pricing￿practices,￿gross￿margin￿objectives,￿market￿conditions,
competitive￿environment,￿internal￿costs￿and￿geographies.￿We￿review￿selling￿prices￿annualy￿and￿maintain￿internal￿controls
over￿the￿establishment￿and￿updates￿of￿these￿estimates.

Lease Arrangements
A￿lease￿is￿classified￿as￿a￿sales-type￿lease￿if￿any￿of￿the￿following￿lease￿classification￿criteria￿is￿met￿at￿its￿inception:

1. The￿lease￿transfers￿ownership￿of￿the￿property￿to￿the￿lessee￿by￿the￿end￿of￿the￿lease￿term;
2. The￿lease￿contains￿a￿bargain￿purchase￿option;
3. The￿lease￿term￿is￿equal￿to￿75￿percent￿or￿more￿of￿the￿estimated￿economic￿life￿of￿the￿leased￿property;￿and
4. The￿present￿value￿at￿the￿beginning￿of￿the￿lease￿term￿of￿the￿minimum￿lease￿payments,￿excluding￿that￿portion￿of

the￿payments￿representing￿executory￿costs￿such￿as￿insurance,￿maintenance,￿and￿taxes￿to￿be￿paid￿by￿the￿lessor,
including￿any￿profit￿thereon,￿equals￿or￿exceeds￿90￿percent￿of￿the￿excess￿of￿the￿fair￿value￿of￿the￿leased￿property￿to
the￿lessor￿at￿lease￿inception￿over￿any￿related￿investment￿tax￿credit￿retained￿by￿the￿lessor￿and￿expected￿to￿be￿realized
by￿the￿lessor.

In￿addition,￿revenue￿is￿recognized￿at￿commencement￿of￿the￿lease￿term.￿The￿present￿value￿of￿the￿lease￿payments￿is
recognized￿as￿a￿finance￿receivable.￿The￿difference￿between￿the￿gross￿receivable￿and￿the￿present￿value￿of￿the￿receivable
is￿recognized￿as￿unearned￿interest￿in￿the￿Consolidated￿Statements￿of￿Operations.

A￿lease￿is￿classified￿as￿an￿operating￿lease￿if￿the￿lease￿classification￿criteria￿(as￿described￿above)￿are￿not￿met.￿If￿ASML
has￿offered￿its￿customers￿an￿operating￿lease￿arrangement,￿the￿contract￿consideration￿is￿recognized￿in￿the￿Consolidated
Statements￿of￿Operations￿on￿a￿straight-line￿basis￿over￿the￿period￿of￿the￿lease.

Warranty
We￿provide￿standard￿warranty￿coverage￿on￿our￿systems￿for￿12￿months￿and￿on￿certain￿optic￿parts￿for￿60￿months,
providing￿labor￿and￿parts￿necessary￿to￿repair￿systems￿and￿optic￿parts￿during￿the￿warranty￿period.￿The￿estimated
warranty￿costs￿are￿accounted￿for￿by￿accruing￿these￿costs￿for￿each￿system￿upon￿recognition￿of￿the￿system￿sale.￿The
estimated￿warranty￿costs￿are￿based￿on￿historical￿product￿performance￿and￿field￿expenses.￿Based￿upon￿historical￿service
records,￿we￿calculate￿the￿charge￿of￿average￿service￿hours￿and￿parts￿per￿system￿to￿determine￿the￿estimated￿warranty
costs.￿On￿a￿semi-annual￿basis,￿we￿assess,￿and￿update￿if￿necessary,￿our￿accounting￿estimates￿used￿to￿calculate￿the
standard￿warranty￿reserve￿based￿on￿the￿latest￿actual￿historical￿warranty￿costs￿and￿expected￿future￿warranty￿costs.

The￿extended￿and￿enhanced￿(optic)￿warranty￿on￿our￿system￿is￿accounted￿for￿as￿a￿separate￿element￿of￿multiple￿element
revenue￿recognition￿transactions.

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Customer Co-Investment Program
In￿connection￿with￿the￿CCIP,￿we￿entered￿into￿investment￿agreements,￿Shareholders￿Agreements￿and￿NRE￿Funding
Agreements￿and￿commercial￿agreements￿with￿Participating￿Customers.

The￿investment￿agreements,￿Shareholder￿Agreements,￿NRE￿Funding￿Agreements￿and￿commercial￿agreement￿are
accounted￿for￿as￿a￿multiple-element￿arrangement￿with￿each￿of￿the￿Participating￿Customers.￿Based￿upon￿ASC￿605-25
Multiple-Element￿Arrangements￿guidance,￿the￿following￿two￿separate￿elements￿are￿identified￿for￿each￿arrangement:￿(1)
the￿share￿issuance￿(governed￿by￿the￿investment￿agreement￿and￿the￿Shareholder￿Agreement)￿and￿(2)￿the￿NRE￿funding
and￿commercial￿discounts￿and￿credits￿(governed￿by￿the￿NRE￿Funding￿Agreement￿and￿the￿commercial￿agreement￿with
Intel).

The￿shares￿issued￿to￿the￿Participating￿Customers￿are￿recorded￿at￿fair￿value￿based￿on￿quoted￿share￿prices￿(EUR￿3,977.4
million)￿with￿the￿remaining￿aggregate￿arrangement￿consideration￿allocated￿to￿the￿NRE￿funding￿and￿commercial￿discounts
and￿credits.￿The￿difference￿between￿the￿fair￿value￿of￿the￿shares￿and￿the￿subscription￿price￿of￿the￿shares￿(EUR￿39.91)
was￿recorded￿as￿a￿deduction￿from￿shareholders’￿equity￿upon￿issuance￿of￿the￿shares￿(EUR￿123.4￿million).￿Shareholders’
equity￿is￿increased￿to￿the￿fair￿value￿of￿the￿shares￿as￿the￿portion￿of￿the￿NRE￿funding￿allocable￿to￿the￿shares￿is￿received
over￿the￿NRE￿funding￿period￿(2013-2017).￿The￿amounts￿are￿deemed￿receivables￿from￿the￿Participating￿Customers￿in
their￿capacity￿as￿shareholders￿of￿ASML.

A￿significant￿related￿party￿relationship￿exists￿between￿ASML￿and￿Intel￿as￿a￿result￿of￿the￿equity￿investment￿made￿by
Intel￿as￿part￿of￿the￿CCIP.￿Based￿on￿the￿commercial￿discounts￿and￿credits￿(governed￿by￿the￿Commercial￿Agreement￿with
Intel)￿and￿the￿significant￿related￿party￿relationship,￿all￿NRE￿funding￿will￿be￿deferred￿and￿recognized￿in￿the￿Consolidated
Statement￿of￿Operations￿only￿when￿the￿commercial￿discounts￿and￿credits￿are￿earned.

In￿addition￿see￿also￿other￿income￿for￿further￿explanation￿on￿the￿accounting￿policies￿with￿respect￿to￿CCIP.

Accounting for Shipping and Handling Fees and Costs
ASML￿bills￿the￿customer￿for,￿and￿recognizes￿as￿revenue,￿any￿charges￿for￿shipping￿and￿handling￿costs.￿The￿related￿costs
are￿recognized￿as￿cost￿of￿sales.

Cost of Sales
Cost￿of￿system￿sales￿comprise￿direct￿product￿costs￿such￿as￿materials,￿labor,￿cost￿of￿warranty,￿depreciation,￿shipping
and￿handling￿costs￿and￿related￿overhead￿costs.￿ASML￿accrues￿for￿the￿estimated￿cost￿of￿the￿warranty￿on￿its￿systems,
which￿includes￿the￿cost￿of￿labor￿and￿parts￿necessary￿to￿repair￿systems￿during￿the￿warranty￿period.￿The￿amounts
recorded￿in￿the￿accrued￿warranty￿reserve￿are￿estimated￿based￿on￿actual￿historical￿expenses￿incurred￿and￿on￿estimated
probable￿future￿expenses￿related￿to￿current￿sales.￿Actual￿warranty￿costs￿are￿charged￿against￿the￿accrued￿warranty
reserve.

Costs￿of￿service￿sales￿comprise￿direct￿service￿costs￿such￿as￿materials,￿labor,￿depreciation￿and￿overhead￿costs.

Cost￿of￿field￿option￿sales￿comprise￿direct￿product￿costs￿such￿as￿materials,￿labor,￿cost￿of￿warranty,￿depreciation,
shipping￿and￿handling￿costs￿and￿related￿overhead￿costs.

Other Income
The￿portion￿of￿the￿NRE￿funding￿from￿TSMC￿and￿Samsung￿not￿allocable￿to￿the￿shares￿issued￿to￿those￿Participating
Customers￿under￿the￿CCIP￿is￿recognized￿in￿Other￿income￿when￿the￿R&D￿costs￿relating￿to￿the￿development￿of￿450mm
lithography￿equipment￿and￿EUV￿platforms￿are￿recognized￿over￿the￿NRE￿funding￿period￿(2013-2017).

R&D Costs and Credits
Costs￿relating￿to￿R&D￿are￿charged￿to￿operating￿expenses￿as￿incurred.￿ASML￿receives￿subsidies￿and￿other￿grants￿from
several￿Dutch￿and￿international￿(inter-)governmental￿institutes.￿These￿subsidies￿and￿other￿government￿grants￿that￿cover
R&D￿costs￿relating￿to￿approved￿projects￿are￿recorded￿as￿R&D￿credits￿in￿the￿R&D￿line￿in￿the￿Consolidated￿Statements￿of
Operations￿in￿the￿period￿in￿which￿such￿costs￿occur.

Government￿grants￿are￿not￿recognized￿until￿there￿is￿reasonable￿assurance￿that￿ASML￿will￿comply￿with￿the￿conditions
attaching￿to￿them￿and￿that￿the￿grants￿will￿be￿received.

Government￿grants￿whose￿primary￿condition￿is￿that￿ASML￿should￿purchase,￿construct￿or￿otherwise￿acquire￿non-current
assets￿are￿recognized￿as￿deferred￿income￿in￿the￿Consolidated￿Balance￿Sheets￿and￿transferred￿to￿the￿Consolidated
Statements￿of￿Operations￿on￿a￿systematic￿and￿rational￿basis￿over￿the￿useful￿lives￿of￿the￿related￿assets.￿

ASML￿ANNUAL￿REPORT￿2013

F-13

Other￿government￿grants￿are￿recognized￿as￿income￿over￿the￿periods￿necessary￿to￿match￿them￿with￿the￿costs￿for
which￿they￿are￿intended￿to￿compensate,￿on￿a￿systematic￿basis.￿Government￿grants￿that￿are￿received￿as￿compensation
for￿expenses￿or￿losses￿already￿incurred,￿or￿for￿the￿purpose￿of￿giving￿immediate￿financial￿support￿to￿ASML￿with￿no
future￿related￿costs￿are￿recognized￿in￿the￿Consolidated￿Statements￿of￿Operations￿in￿the￿period￿in￿which￿they￿become
receivable.￿

Borrowing Costs
Borrowing￿costs￿directly￿attributable￿to￿the￿acquisition,￿construction￿or￿production￿of￿qualifying￿assets,￿which￿are￿assets
that￿necessarily￿take￿a￿substantial￿period￿of￿time￿to￿get￿ready￿for￿their￿intended￿use￿or￿sale,￿are￿added￿to￿the￿cost￿of
those￿assets,￿until￿such￿time￿that￿the￿assets￿are￿substantially￿ready￿for￿their￿intended￿use￿or￿sale.￿

Share-based Payments
The￿cost￿of￿employee￿services￿received￿(compensation￿expenses)￿in￿exchange￿for￿awards￿of￿equity￿instruments￿are
recognized￿based￿upon￿the￿grant-date￿fair￿value￿of￿stock￿options￿and￿shares.￿The￿grant-date￿fair￿value￿of￿stock￿options
is￿estimated￿using￿a￿Black-Scholes￿option￿valuation￿model.￿This￿Black-Scholes￿model￿requires￿the￿use￿of￿assumptions,
including￿expected￿share￿price￿volatility,￿the￿estimated￿life￿of￿each￿award￿and￿the￿estimated￿dividend￿yield.￿The￿risk-
free￿interest￿rate￿used￿in￿the￿model￿is￿determined,￿based￿on￿an￿index￿populated￿with￿euro-denominated￿European
government￿agency￿bond￿with￿high￿credit￿ratings￿and￿with￿a￿life￿equal￿to￿the￿expected￿life￿of￿the￿equity-settled￿share-
based￿payments.￿The￿grant-date￿fair￿value￿of￿shares￿is￿determined￿based￿on￿the￿closing￿price￿of￿our￿shares￿listed￿at
NYSE￿Euronext￿Amsterdam￿on￿the￿grant-date.

The￿grant-date￿fair￿value￿of￿the￿equity-settled￿share-based￿payments￿is￿expensed￿on￿a￿straight-line￿basis￿over￿the
vesting￿period,￿based￿on￿our￿estimate￿of￿equity￿instruments￿that￿will￿eventually￿vest.￿At￿each￿balance￿sheet￿date,￿we
revise￿our￿estimate￿of￿the￿number￿of￿equity￿instruments￿expected￿to￿vest.￿The￿impact￿of￿the￿revision￿of￿the￿original
estimates,￿if￿any,￿is￿recognized￿in￿the￿Consolidated￿Statements￿of￿Operations￿in￿the￿period￿in￿which￿the￿revision￿is
determined,￿with￿a￿corresponding￿adjustment￿to￿shareholders'￿equity.

Income Taxes
The￿asset￿and￿liability￿method￿is￿used￿in￿accounting￿for￿income￿taxes.￿Under￿this￿method,￿deferred￿tax￿assets￿and
liabilities￿are￿recognized￿for￿the￿tax￿effect￿of￿incurred￿net￿operating￿losses￿and￿for￿tax￿consequences￿attributable￿to
differences￿between￿the￿balance￿sheet￿carrying￿amounts￿of￿existing￿assets￿and￿liabilities￿and￿their￿respective￿tax￿bases.
If￿it￿is￿more￿likely￿than￿not￿that￿the￿carrying￿amounts￿of￿deferred￿tax￿assets￿will￿not￿be￿realized,￿a￿valuation￿allowance￿is
recorded￿to￿reduce￿the￿carrying￿amounts￿of￿those￿assets.

Deferred￿tax￿assets￿and￿liabilities￿are￿measured￿using￿enacted￿tax￿rates￿expected￿to￿apply￿to￿taxable￿income￿in￿the
years￿in￿which￿those￿temporary￿differences￿are￿expected￿to￿be￿recovered￿or￿settled.￿The￿effect￿on￿deferred￿tax￿assets
and￿liabilities￿of￿a￿change￿in￿tax￿rates￿is￿recognized￿in￿the￿Consolidated￿Statements￿of￿Operations￿in￿the￿period￿that
includes￿the￿enactment￿date.

We￿recognize￿liabilities￿for￿uncertain￿tax￿positions￿based￿on￿a￿two-step￿process.￿The￿first￿step￿is￿to￿evaluate￿the￿tax
position￿for￿recognition￿by￿determining￿if￿the￿weight￿of￿available￿evidence￿indicates￿that￿it￿is￿more￿likely￿than￿not￿that
the￿position￿will￿be￿sustained￿on￿audit,￿including￿resolution￿of￿related￿appeals￿or￿litigation￿processes,￿if￿any.￿The￿second
step￿is￿to￿measure￿the￿tax￿benefit￿as￿the￿largest￿amount￿that￿is￿more￿than￿50￿percent￿likely￿of￿being￿realized￿upon
settlement.￿While￿we￿believe￿we￿have￿appropriate￿support￿for￿the￿positions￿taken￿on￿our￿tax￿returns,￿we￿regularly￿assess
the￿potential￿outcomes￿of￿examinations￿by￿tax￿authorities￿in￿determining￿the￿adequacy￿of￿our￿provision￿for￿income￿taxes,
and￿adjust￿the￿income￿tax￿provision,￿income￿taxes￿payable￿and￿deferred￿taxes￿in￿the￿period￿in￿which￿the￿facts￿that￿give
rise￿to￿a￿revision￿become￿known.

ASML￿ANNUAL￿REPORT￿2013

F-14

Contingencies and Litigation
We￿are￿party￿to￿various￿legal￿proceedings￿generally￿incidental￿to￿our￿business,￿as￿disclosed￿in￿Note￿19.￿In￿connection
with￿these￿proceedings￿and￿claims,￿our￿management￿evaluated,￿based￿on￿the￿relevant￿facts￿and￿legal￿principles,￿the
likelihood￿of￿an￿unfavorable￿outcome￿and￿whether￿the￿amount￿of￿the￿loss￿could￿be￿reasonably￿estimated.￿In￿most￿cases,
management￿determined￿that￿either￿a￿loss￿was￿not￿probable￿or￿was￿not￿reasonably￿estimable.￿Significant￿subjective
judgments￿were￿required￿in￿these￿evaluations,￿including￿judgments￿regarding￿the￿validity￿of￿asserted￿claims￿and￿the
likely￿outcome￿of￿legal￿and￿administrative￿proceedings.￿The￿outcome￿of￿these￿proceedings,￿however,￿is￿subject￿to￿a
number￿of￿factors￿beyond￿our￿control,￿most￿notably￿the￿uncertainty￿associated￿with￿predicting￿decisions￿by￿courts
and￿administrative￿agencies.￿In￿addition,￿estimates￿of￿the￿potential￿costs￿associated￿with￿legal￿and￿administrative
proceedings￿frequently￿cannot￿be￿subjected￿to￿any￿sensitivity￿analysis,￿as￿damage￿estimates￿or￿settlement￿offers￿by
claimants￿may￿bear￿little￿or￿no￿relation￿to￿the￿eventual￿outcome.￿Finally,￿in￿any￿particular￿proceeding,￿we￿may￿agree￿to
settle￿or￿to￿terminate￿a￿claim￿or￿proceeding￿in￿which￿we￿believe￿that￿it￿would￿ultimately￿prevail￿where￿we￿believe￿that
doing￿so,￿when￿taken￿together￿with￿other￿relevant￿commercial￿considerations,￿is￿more￿cost-effective￿than￿engaging￿in￿an
expensive￿and￿protracted￿litigation,￿the￿outcome￿of￿which￿is￿uncertain.

We￿accrue￿for￿legal￿costs￿related￿to￿litigation￿in￿our￿Consolidated￿Statements￿of￿Operations￿at￿the￿time￿when￿the￿related
legal￿services￿are￿actually￿provided.

Net Income per Ordinary Share
Basic￿net￿income￿per￿ordinary￿share￿is￿calculated￿by￿dividing￿net￿income￿by￿the￿weighted￿average￿number￿of￿ordinary
shares￿outstanding￿for￿that￿period.￿The￿dilutive￿effect￿is￿calculated￿using￿the￿treasury￿stock￿method.￿Excluded￿from
the￿diluted￿weighted￿average￿number￿of￿shares￿outstanding￿calculation￿are￿cumulative￿preference￿shares￿contingently
issuable￿to￿the￿preference￿share￿foundation,￿since￿they￿represent￿a￿different￿class￿of￿stock￿than￿the￿ordinary￿shares.￿See
Note￿26￿for￿further￿discussion.

The￿basic￿and￿diluted￿net￿income￿per￿ordinary￿share￿has￿been￿calculated￿in￿accordance￿with￿the￿following￿schedule:

Year ended December 31
(in￿thousands,￿except￿per￿share￿data)
Net income

2013
EUR
1,015,490

2012
EUR
1,146,316

2011
EUR
1,466,960

Weighted average number of shares outstanding during the year
(after deduction of treasury stock)

429,770

424,096

425,618

Basic net income per ordinary share

2.36

2.70

3.45

Weighted average number of shares:
Plus￿shares￿applicable￿to:
Options￿and￿conditional￿shares

429,770

424,096

425,618

3,676

2,890

3,435

Dilutive potential ordinary shares

3,676

2,890

3,435

Adjusted weighted average number of shares

433,446

426,986

429,053

Diluted net income per ordinary share1

2.34

2.68

3.42

1

The￿calculation￿of￿diluted￿net￿income￿per￿ordinary￿share￿assumes￿the￿exercise￿of￿options￿issued￿under￿our￿stock￿option￿plans￿and￿the￿issuance￿of
shares￿under￿our￿share￿plans￿for￿periods￿in￿which￿exercises￿or￿issuances￿would￿have￿a￿dilutive￿effect.￿The￿calculation￿of￿diluted￿net￿income￿per
ordinary￿share￿does￿not￿assume￿exercise￿of￿such￿options￿or￿issuance￿of￿shares￿when￿such￿exercises￿or￿issuance￿would￿be￿anti-dilutive.

Comprehensive Income
Comprehensive￿income￿consists￿of￿net￿income￿(loss)￿and￿OCI.

OCI￿refers￿to￿gains￿and￿losses￿that￿are￿not￿included￿in￿net￿income￿(loss),￿but￿recorded￿directly￿in￿shareholders’￿equity.
For￿the￿years￿ending￿December￿31,￿2013￿and￿2012,￿comprehensive￿income￿consists￿of￿net￿income,￿unrealized￿gains￿and
losses￿on￿financial￿instruments,￿being￿available-for-sale￿securities￿and￿derivative￿financial￿instruments￿designated￿for
hedge￿accounting,￿net￿of￿taxes,￿and￿unrealized￿gains￿and￿losses￿on￿foreign￿currency￿translation,￿net￿of￿taxes.￿For￿the
year￿ending￿December￿31,￿2011￿comprehensive￿income￿consists￿of￿net￿income,￿unrealized￿gains￿and￿losses￿on￿financial
instruments,￿being￿derivative￿financial￿instruments￿designated￿for￿hedge￿accounting,￿net￿of￿taxes￿and￿unrealized￿gains
and￿losses￿on￿foreign￿currency￿translation,￿net￿of￿taxes.

ASML￿ANNUAL￿REPORT￿2013

F-15

New US GAAP Accounting Pronouncements
For￿the￿below￿mentioned￿ASUs,￿issued￿in￿2013,￿the￿impact￿on￿our￿Financial￿Statements￿needs￿to￿be￿assessed:

•

•

•

In￿February￿2013,￿FASB￿issued￿ASU￿No.￿2013-04￿"Liabilities￿(Topic￿405):￿Obligations￿Resulting￿from￿Joint￿and￿Several
Liability￿Arrangements￿for￿which￿the￿Total￿Amount￿of￿the￿Obligation￿is￿Fixed￿at￿the￿Reporting￿Date".￿The￿objective￿of
the￿amendments￿in￿this￿Update￿is￿to￿provide￿guidance￿for￿the￿recognition,￿measurement￿and￿disclosure￿of￿obligations
resulting￿from￿joint￿an￿several￿liability￿arrangements￿for￿which￿the￿total￿amount￿of￿the￿obligation￿within￿the￿scope￿of
this￿guidance￿is￿fixed￿at￿the￿reporting￿date,￿except￿for￿obligations￿addressed￿within￿existing￿guidance￿in￿US￿GAAP.
The￿amendments￿in￿this￿Update￿are￿effective￿for￿fiscal￿years,￿and￿interim￿periods￿within￿those￿years,￿beginning￿after
December￿15,￿2013.
In￿March￿2013,￿FASB￿issued￿ASU￿No.￿2013-05￿"Foreign￿Currency￿Matters￿(Topic￿830):￿Parent’s￿Accounting￿for￿the
Cumulative￿Translation￿Adjustment￿upon￿Derecognition￿of￿Certain￿Subsidiaries￿or￿Groups￿of￿Assets￿within￿a￿Foreign
Entity￿or￿of￿an￿Investment￿in￿a￿Foreign￿Entity".￿The￿objective￿of￿the￿amendments￿in￿this￿Update￿is￿to￿resolve￿the
diversity￿in￿practice￿about￿whether￿Subtopic￿810-10,￿“Consolidation-Overall”,￿or￿Subtopic￿830-30,￿“”Foreign￿Currency
Matters-Translation￿of￿Financial￿Statements”,￿applies￿to￿the￿release￿of￿the￿cumulative￿translation￿adjustment￿into￿net
income￿when￿a￿parent￿either￿sells￿a￿part￿or￿all￿of￿its￿investment￿in￿a￿foreign￿entity￿or￿no￿longer￿holds￿a￿controlling
financial￿interest￿in￿a￿subsidiary￿or￿group￿of￿assets￿that￿is￿a￿nonprofit￿activity￿or￿a￿business￿(other￿than￿a￿sale￿of￿in
substance￿real￿estate￿or￿conveyance￿of￿oil￿and￿gas￿mineral￿rights)￿within￿a￿foreign￿entity.￿The￿amendments￿in￿this
Update￿are￿effective￿for￿fiscal￿years,￿and￿interim￿periods￿within￿those￿years,￿beginning￿after￿December￿15,￿2013.
In￿July￿2013,￿FASB￿issued￿ASU￿No.￿2013-11￿"Income￿Taxes￿(Topic￿740):￿Presentation￿of￿an￿Unrecognized￿Tax
Benefit￿When￿a￿Net￿Operating￿Loss￿Carry￿forward,￿a￿Similar￿Tax￿Loss,￿or￿a￿Tax￿Credit￿Carry￿forward￿Exists".￿Topic
740,￿Income￿Taxes,￿does￿not￿include￿explicit￿guidance￿on￿the￿financial￿statement￿presentation￿of￿an￿unrecognized
tax￿benefit￿when￿a￿net￿operating￿loss￿carry￿forward,￿a￿similar￿tax￿loss,￿or￿a￿tax￿credit￿carry￿forward￿exists.￿There
is￿diversity￿in￿practice￿in￿the￿presentation￿of￿unrecognized￿tax￿benefits￿in￿those￿instances.￿Some￿entities￿present
unrecognized￿tax￿benefits￿as￿a￿liability￿unless￿the￿unrecognized￿tax￿benefit￿is￿directly￿associated￿with￿a￿tax￿position
taken￿in￿a￿tax￿year￿that￿results￿in,￿or￿that￿resulted￿in,￿the￿recognition￿of￿a￿net￿operating￿loss￿or￿tax￿credit￿carry￿forward
has￿not￿been￿utilized.￿Other￿entities￿present￿unrecognized￿tax￿benefits￿as￿a￿reduction￿of￿a￿deferred￿tax￿asset￿for￿a￿net
operating￿loss￿or￿tax￿credit￿carry￿forward￿in￿certain￿circumstances.￿The￿objective￿of￿the￿amendments￿in￿this￿Update
is￿to￿eliminate￿that￿diversity￿in￿practice.￿The￿amendments￿in￿this￿Update￿are￿effective￿for￿fiscal￿years,￿and￿interim
periods￿within￿those￿years,￿beginning￿after￿December￿15,￿2013.

2. Business Combinations
On￿May￿30,￿2013,￿we￿concluded￿the￿acquisition￿of￿Cymer￿and￿obtained￿control￿through￿acquiring￿100￿percent￿of
the￿issued￿share￿capital￿of￿Cymer,￿for￿a￿consideration￿of￿EUR￿3.1￿billion.￿There￿are￿no￿contingent￿consideration
arrangements.

Prior￿to￿the￿acquisition,￿Cymer￿was￿an￿industry￿leader￿in￿developing￿and￿servicing￿lithography￿light￿sources￿used￿by
chip￿manufacturers￿worldwide￿to￿pattern￿advanced￿semiconductor￿chips.￿Cymer￿has￿production￿facilities￿in￿San￿Diego,
California,￿the￿United￿States￿of￿America￿and￿in￿Pyongtaek-city,￿South￿Korea,￿Asia.

The￿acquisition￿of￿Cymer￿will￿support￿our￿strategic￿objective￿of￿delivering￿an￿economically￿viable￿EUV￿scanner￿to
semiconductor￿manufacturers￿within￿the￿timeline￿required￿by￿our￿customers.￿In￿addition,￿there￿are￿opportunities￿to
further￿enhance￿Cymer’s￿growing￿advanced￿immersion￿systems￿and￿related￿installed￿base￿products￿business.

ASML￿ANNUAL￿REPORT￿2013

F-16

The￿following￿table￿summarizes￿the￿major￿classes￿of￿consideration￿transferred,￿and￿the￿recognized￿amounts￿of￿the￿fair
value￿of￿the￿identifiable￿assets￿distributed￿and￿the￿fair￿value￿of￿the￿liabilities￿incurred￿or￿assumed￿at￿the￿acquisition￿date.

(in thousands)
Cash￿and￿cash￿equivalents
Short-term￿investments
Accounts￿receivable,￿net
Finance￿receivables,￿net
Current￿tax￿assets
Inventories,￿net
Deferred￿tax￿assets
Other￿assets,￿current￿and￿non-current
Other￿intangible￿assets,￿net
Property,￿plant￿and￿equipment,￿net

May 30, 2013
EUR1
84,129
40,055
121,395
611
37,289
301,279
90,045
29,418
751,542
124,308

Assets acquired

1,580,071

Accounts￿payable
Accrued￿and￿other￿liabilities,￿current￿and￿non-current
Deferred￿and￿other￿tax￿liabilities
Long-term￿debt,￿current￿and￿non-current

Liabilities assumed

Total net identifiable assets

Consideration￿paid￿in￿cash￿for￿the￿transaction￿on￿May￿30,￿2013
Fair￿value￿of￿shares2
Fair￿value￿of￿equity￿awards￿cash￿settled
Fair￿value￿of￿unvested￿equity￿awards￿to￿be￿exchanged
Gain￿on￿settlement￿of￿pre-existing￿relationships
Consideration transferred

Goodwill on acquisition

151,412
90,900
297,977
609

540,898

1,039,173

486,325
2,347,663
41,516
43,527
178,427
3,097,458

2,058,285

1
2

Amounts￿were￿converted￿into￿euro￿at￿the￿rate￿of￿USD/EUR￿1.3043.
As￿part￿of￿the￿consideration￿transferred,￿Cymer￿shares￿were￿converted￿into￿a￿right￿to￿receive￿36,479,109￿ASML￿ordinary￿shares.￿These￿shares￿were
valued￿at￿USD￿83.94￿being￿the￿opening￿price￿on￿NASDAQ￿at￿May￿30,￿2013.￿As￿at￿December￿31,￿2013,￿14,533￿ASML￿ordinary￿shares￿are￿still￿to￿be
issued.

Prior￿to￿the￿acquisition,￿supply￿and￿R&D￿arrangements￿existed￿between￿Cymer￿and￿ASML.￿These￿pre-existing
relationships￿were￿effectively￿settled￿as￿a￿result￿of￿the￿acquisition.￿We￿determined￿that￿the￿R&D￿arrangement￿as￿well￿as
the￿supply￿arrangements￿(excluding￿EUV)￿were￿at￿current￿market￿terms￿and￿therefore￿no￿gain￿or￿loss￿was￿recognized.￿We
determined￿that￿the￿EUV￿supply￿arrangements￿were￿favorable￿to￿ASML￿and￿therefore￿a￿gain￿of￿EUR￿178.4￿million￿was
recognized￿in￿cost￿of￿sales￿within￿our￿Consolidated￿Statements￿of￿Operations.￿This￿gain￿was￿recognized￿separately￿from
the￿business￿combination￿as￿it￿is￿not￿part￿of￿the￿assets￿acquired￿or￿liabilities￿assumed.￿The￿approach￿for￿quantifying￿the
favorable￿component￿to￿ASML￿of￿the￿EUV￿supply￿arrangements￿is￿based￿on￿the￿assessment￿of￿the￿prices￿for￿such￿light
sources￿if￿the￿EUV￿supply￿arrangements￿would￿have￿been￿renegotiated￿in￿May￿2013.￿This￿approach￿is￿in￿line￿with￿(and
offsets)￿the￿expected￿losses￿(for￿which￿a￿liability￿is￿recognized￿of￿EUR￿171.2￿million￿included￿in￿costs￿to￿be￿paid,￿see
Note￿13)￿to￿upgrade￿the￿first￿11￿EUV￿sources￿in￿the￿field,￿which￿was￿assumed￿by￿ASML￿as￿a￿result￿of￿the￿acquisition￿of
Cymer.

The￿majority￿of￿the￿goodwill￿arising￿on￿the￿acquisition￿of￿Cymer￿is￿attributable￿to￿the￿fact￿that￿we￿believe￿that
the￿acquisition￿will￿help￿us￿achieving￿our￿strategic￿objective￿of￿delivering￿an￿economically￿viable￿EUV￿scanner￿to
semiconductor￿manufacturers￿as￿soon￿as￿reasonably￿possible.￿We￿believe￿that￿combining￿Cymer's￿expertise￿in￿EUV￿light
sources￿with￿our￿expertise￿in￿lithography￿systems￿design￿and￿integration￿will￿reduce￿the￿risks￿related￿to￿the￿successful
development￿of￿and￿accelerate￿the￿introduction￿of￿EUV￿technology.￿Without￿the￿acquisition,￿we￿do￿not￿believe￿that
Cymer￿would￿have￿sufficient￿resources￿to￿complete￿the￿development￿of￿the￿EUV￿light￿source￿and￿as￿a￿result,￿the￿only
way￿to￿make￿the￿EUV￿light￿source￿development￿successful￿without￿additional￿delay￿was￿through￿the￿acquisition￿of
Cymer.￿We￿believe￿that￿the￿acquisition￿will￿allow￿us￿to￿more￿effectively￿partition￿responsibilities￿between￿Cymer,￿its
suppliers￿and￿us￿with￿respect￿to￿EUV￿light￿source￿development,￿thereby￿reducing￿risk￿and￿increasing￿development
speed.￿Also,￿synergies￿are￿expected￿from￿the￿combination.￿All￿goodwill￿has￿been￿allocated￿to￿the￿RU￿ASML.￿None￿of￿the
goodwill￿recognized￿is￿expected￿to￿be￿deductible￿for￿income￿tax￿purposes.

ASML￿ANNUAL￿REPORT￿2013

F-17

Cymer￿contributed￿EUR￿178.7 million￿to￿net￿sales￿and￿a￿loss￿of￿EUR￿138.5￿million￿to￿net￿income￿(including￿a￿charge￿of
EUR￿85.5￿million￿related￿to￿the￿purchase￿price￿allocation￿adjustments)￿for￿the￿period￿between￿the￿date￿of￿acquisition￿and
December￿31,￿2013.

In￿2013,￿we￿incurred￿EUR￿7.8￿million￿transaction￿costs￿relating￿to￿the￿acquisition￿of￿Cymer.￿These￿costs￿are￿included￿in
SG&A.

The￿following￿unaudited￿pro￿forma￿summary￿presents￿estimated￿consolidated￿information￿of￿ASML￿as￿if￿the￿Cymer
acquisition￿had￿occurred￿on￿January￿1,￿2012.￿These￿amounts￿have￿been￿calculated￿after￿applying￿our￿accounting
policies￿and￿adjusting￿the￿results￿of￿Cymer￿to￿reflect￿the￿charges￿and￿benefits￿assuming￿the￿fair￿value￿adjustments￿had
been￿applied￿from￿January￿1,￿2012￿with￿the￿consequential￿tax￿effects. 

Pro Forma Year ended December 31
(in millions)
Total￿net￿sales
Net￿income

Unaudited
2013
EUR
5,362
1,031 1

Unaudited
2012
EUR
5,053
965 2

1

2

Pro￿forma￿net￿income￿was￿adjusted￿to￿exclude￿EUR￿60￿million￿of￿non-recurring￿costs￿related￿to￿the￿fair￿value￿adjustments￿to￿acquisition￿date
inventory￿and￿exclude￿EUR￿30￿million￿of￿acquisition￿related￿costs￿incurred￿in￿2013.
Pro￿forma￿net￿income￿was￿adjusted￿to￿include￿EUR￿60￿million￿of￿non-recurring￿costs￿related￿to￿the￿fair￿value￿adjustments￿to￿acquisition￿date￿inventory
and￿exclude￿EUR￿15￿million￿of￿acquisition￿related￿costs￿incurred￿in￿2012.

3. Fair Value Measurements
Fair￿value￿is￿the￿price￿that￿would￿be￿received￿to￿sell￿an￿asset￿or￿paid￿to￿transfer￿a￿liability￿in￿an￿orderly￿transaction
between￿market￿participants￿at￿the￿measurement￿date.￿The￿fair￿value￿measurement￿hierarchy￿prioritizes￿the￿inputs￿to
valuation￿techniques￿used￿to￿measure￿fair￿value￿as￿follows:
• Level￿1:￿Valuations￿based￿on￿inputs￿such￿as￿quoted￿prices￿for￿identical￿assets￿or￿liabilities￿in￿active￿markets￿that￿the

entity￿has￿the￿ability￿to￿access.

• Level￿2:￿Valuations￿based￿on￿inputs￿other￿than￿level￿1￿inputs￿such￿as￿quoted￿prices￿for￿similar￿assets￿or￿liabilities,

quoted￿prices￿in￿markets￿that￿are￿not￿active,￿or￿other￿inputs￿that￿are￿observable￿or￿can￿be￿corroborated￿by￿observable
data￿for￿substantially￿the￿full￿term￿of￿the￿assets￿or￿liabilities.

• Level￿3:￿Valuations￿based￿on￿inputs￿that￿are￿supported￿by￿little￿or￿no￿market￿activity￿and￿that￿are￿significant￿to￿the￿fair

value￿of￿the￿assets￿or￿liabilities.

The￿fair￿value￿hierarchy￿gives￿the￿highest￿priority￿to￿quoted￿prices￿(unadjusted)￿in￿active￿markets￿for￿identical￿assets
or￿liabilities￿(Level￿1)￿and￿the￿lowest￿priority￿to￿unobservable￿inputs￿(Level￿3).￿A￿financial￿instrument’s￿fair￿value
classification￿is￿based￿on￿the￿lowest￿level￿of￿any￿input￿that￿is￿significant￿in￿the￿fair￿value￿measurement￿hierarchy.

Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis
Investments￿in￿money￿market￿funds￿(as￿part￿of￿our￿cash￿and￿cash￿equivalents)￿have￿fair￿value￿measurements￿which￿are
all￿based￿on￿quoted￿prices￿for￿identical￿assets￿or￿liabilities.

Our￿available-for-sale￿financial￿instruments￿consist￿of￿Dutch￿Treasury￿Certificates￿and￿deposits￿with￿the￿Dutch
government.￿Dutch￿Treasury￿Certificates￿are￿traded￿in￿an￿active￿market￿and￿the￿fair￿value￿is￿determined￿based￿on￿quoted
market￿prices￿for￿identical￿assets￿or￿liabilities.￿The￿fair￿value￿of￿deposits￿is￿determined￿with￿reference￿to￿quoted￿market
prices￿for￿similar￿assets￿or￿discounted￿cash￿flow￿analysis.

The￿principal￿market￿in￿which￿we￿execute￿our￿derivative￿contracts￿is￿the￿institutional￿market￿in￿an￿over-the-counter
environment￿with￿a￿high￿level￿of￿price￿transparency.￿The￿market￿participants￿usually￿are￿large￿commercial￿banks.￿The
valuation￿inputs￿for￿our￿derivative￿contracts￿are￿based￿on￿quoted￿prices￿and￿quoting￿pricing￿intervals￿from￿public￿data
sources;￿they￿do￿not￿involve￿management￿judgement.

The￿valuation￿technique￿used￿to￿determine￿the￿fair￿value￿of￿forward￿foreign￿exchange￿contracts￿(used￿for￿hedging
purposes)￿approximates￿the￿NPV￿technique￿which￿is￿the￿estimated￿amount￿that￿a￿bank￿would￿receive￿or￿pay￿to￿terminate
the￿forward￿foreign￿exchange￿contracts￿at￿the￿reporting￿date,￿taking￿into￿account￿current￿interest￿rates￿and￿current
exchange￿rates.

The￿valuation￿technique￿used￿to￿determine￿the￿fair￿value￿of￿interest￿rate￿swaps￿(used￿for￿hedging￿purposes)￿is￿the￿NPV
technique,￿which￿is￿the￿estimated￿amount￿that￿a￿bank￿would￿receive￿or￿pay￿to￿terminate￿the￿swap￿agreements￿at￿the
reporting￿date,￿taking￿into￿account￿current￿interest￿rates.

ASML￿ANNUAL￿REPORT￿2013

F-18

Our￿Eurobonds￿serve￿as￿hedged￿items￿in￿fair￿value￿hedge￿relationships￿in￿which￿we￿hedge￿the￿variability￿of￿changes￿in
the￿fair￿value￿of￿our￿Eurobonds￿due￿to￿changes￿in￿market￿interest￿rates￿with￿interest￿rate￿swaps.￿The￿fair￿value￿changes
of￿these￿interest￿rate￿swaps￿are￿recorded￿on￿the￿Consolidated￿Balance￿Sheets￿under￿derivative￿financial￿instruments
(within￿other￿current￿assets￿and￿other￿non-current￿assets)￿and￿the￿carrying￿amounts￿of￿the￿Eurobonds￿are￿adjusted￿for
these￿fair￿value￿changes￿only.￿For￿the￿actual￿aggregate￿carrying￿amount￿and￿the￿fair￿value￿of￿our￿Eurobonds,￿see￿Note
15.

The￿following￿table￿presents￿our￿financial￿assets￿and￿financial￿liabilities￿that￿are￿measured￿at￿fair￿value￿on￿a￿recurring
basis:

As of December 31, 2013
(in thousands)
Assets
Derivative￿financial￿instruments￿1
Money￿market￿funds￿2
Short-term￿investments￿3
Total

Liabilities
Long-term￿debt￿4
Derivative￿financial￿instruments￿1
Total

As of December 31, 2012
(in￿thousands)
Assets
Derivative￿financial￿instruments￿1
Money￿market￿funds￿2
Short-term￿investments￿3
Total

Liabilities
Long-term￿debt￿4
Derivative￿financial￿instruments￿1
Total

Level 1
EUR

-
535,000
304,884
839,884

Level 2
EUR

71,620
-
375,000
446,620

-
-
-

1,021,930
11,652
1,033,582

Level 1
EUR

-
385,420
279,988
665,408

-
-
-

Level 2
EUR

151,748
-
650,017
801,765

759,490
10,893
770,383

Level 3
EUR

-
-
-
-

-
-
-

Level 3
EUR

-
-
-
-

-
-
-

Total
EUR

71,620
535,000
679,884
1,286,504

1,021,930
11,652
1,033,582

Total
EUR

151,748
385,420
930,005
1,467,173

759,490
10,893
770,383

Derivative￿financial￿instruments￿consist￿of￿forward￿foreign￿exchange￿contracts￿and￿interest￿rate￿swaps.￿See￿Note￿4.

1
2 Money￿market￿funds￿are￿part￿of￿our￿cash￿and￿cash￿equivalents.
3
4

Short-term￿investments￿consist￿of￿Dutch￿Treasury￿Certificates￿and￿deposits￿with￿the￿Dutch￿government.
Long-term￿debt￿mainly￿relates￿to￿our￿Eurobonds￿(carrying￿amount￿as￿at￿December￿31,￿2013:￿EUR￿1,021.9￿million￿(2012:￿EUR￿710.1￿million))￿and
excludes￿accrued￿interest.￿For￿further￿details￿see￿Note￿15.

There￿were￿no￿transfers￿between￿levels￿during￿the￿years￿ended￿December￿31,￿2013￿and￿December￿31,￿2012.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In￿2013,￿we￿recognized￿impairment￿charges￿of￿EUR￿13.1￿million￿(2012:￿EUR￿3.2￿million;￿2011:￿EUR￿12.3￿million)￿on
our￿property,￿plant￿and￿equipment,￿mainly￿relating￿to￿buildings￿(EUR￿3.6￿million)￿and￿machinery￿and￿equipment￿(EUR
8.0￿million).￿Valuation￿of￿these￿assets￿is￿classified￿as￿Level￿3￿in￿the￿fair￿value￿hierarchy￿since￿their￿fair￿values￿were
determined￿based￿on￿unobservable￿inputs.￿The￿impairment￿charge￿is￿determined￿based￿on￿the￿difference￿between￿the
assets’￿estimated￿fair￿value￿(being￿EUR￿16.4￿million)￿and￿their￿carrying￿amount.￿For￿further￿information,￿see￿Note￿12.

We￿did￿not￿recognize￿any￿impairment￿charges￿for￿goodwill￿and￿other￿intangible￿assets￿during￿2013.￿See￿Notes￿10￿and￿11
for￿more￿information.￿For￿fair￿value￿measurements￿in￿relation￿to￿the￿acquisition￿of￿Cymer,￿we￿refer￿to￿Note￿2.

4. Financial Risk Management
We￿are￿exposed￿to￿certain￿financial￿risks￿such￿as￿market￿risk￿(including￿foreign￿currency￿risk￿and￿interest￿rate￿risk),
credit￿risk,￿liquidity￿risk￿and￿capital￿risk.￿The￿overall￿risk￿management￿program￿focuses￿on￿the￿unpredictability￿of
financial￿markets￿and￿seeks￿to￿minimize￿potentially￿adverse￿effects￿on￿our￿financial￿performance.￿We￿use￿derivative
financial￿instruments￿to￿hedge￿certain￿risk￿exposures.￿None￿of￿our￿transactions￿are￿entered￿into￿for￿trading￿or
speculative￿purposes.￿We￿believe￿that￿market￿information￿is￿the￿most￿reliable￿and￿transparent￿measure￿for￿our￿derivative
financial￿instruments￿that￿are￿measured￿at￿fair￿value.

Foreign Currency Risk Management
Our￿sales￿are￿predominately￿denominated￿in￿euros.￿Exceptions￿may￿occur￿on￿a￿customer￿by￿customer￿basis.￿Our￿cost
of￿sales￿and￿other￿costs￿are￿mainly￿denominated￿in￿euros,￿to￿a￿certain￿extent￿in￿U.S.￿dollar￿and￿Japanese￿Yen￿and￿to￿a
limited￿extent￿in￿other￿currencies.￿Therefore,￿we￿are￿exposed￿to￿foreign￿currency￿exchange￿risk.

ASML￿ANNUAL￿REPORT￿2013

F-19

It￿is￿our￿policy￿to￿hedge￿material￿transaction￿exposures,￿such￿as￿forecasted￿sales￿and￿purchase￿transactions,￿and
material￿net￿remeasurement￿exposures,￿such￿as￿accounts￿receivable￿and￿payable.￿We￿hedge￿these￿exposures￿through
the￿use￿of￿foreign￿exchange￿contracts.

As￿of￿December￿31,￿2013,￿accumulated￿OCI￿includes￿EUR￿10.7￿million￿(net￿of￿taxes:￿EUR￿9.5￿million;￿2012:￿EUR￿5.3
million￿loss)￿representing￿the￿total￿anticipated￿loss￿to￿be￿charged￿to￿cost￿of￿sales,￿which￿will￿offset￿the￿EUR￿equivalent￿of
foreign￿currency￿denominated￿forecasted￿purchase￿transactions.￿All￿amounts￿are￿expected￿to￿be￿charged￿over￿the￿next
12￿months.￿As￿of￿December￿31,￿2013,￿no￿amount￿was￿included￿in￿accumulated￿OCI￿representing￿the￿total￿anticipated
gain￿to￿be￿released￿to￿sales￿(2012:￿EUR￿4.3￿million￿gain,￿net￿of￿taxes).The￿effectiveness￿of￿all￿contracts￿for￿which￿we
apply￿hedge￿accounting￿is￿monitored￿on￿a￿quarterly￿basis￿throughout￿the￿life￿of￿the￿hedges.￿During￿2012￿and￿2013,￿no
ineffective￿hedge￿relationships￿were￿recognized.

Interest Rate Risk Management
We￿have￿interest-bearing￿assets￿and￿liabilities￿that￿expose￿us￿to￿fluctuations￿in￿market￿interest￿rates.￿We￿use￿interest
rate￿swaps￿to￿align￿the￿interest-typical￿terms￿of￿interest-bearing￿liabilities￿with￿the￿interest-typical￿terms￿of￿interest-
bearing￿assets.￿There￿may￿be￿residual￿interest￿rate￿risk￿to￿the￿extent￿the￿asset￿and￿liability￿positions￿do￿not￿fully￿offset.

As￿part￿of￿our￿hedging￿policy,￿we￿use￿interest￿rate￿swaps￿to￿hedge￿changes￿in￿fair￿value￿of￿our￿Eurobonds￿due￿to
changes￿in￿market￿interest￿rates,￿thereby￿offsetting￿the￿variability￿of￿future￿interest￿receipts￿on￿part￿of￿our￿cash￿and
cash￿equivalents.￿During￿2013,￿these￿hedges￿were￿highly￿effective￿in￿hedging￿the￿fair￿value￿exposure￿to￿interest￿rate
movements.￿The￿changes￿in￿fair￿value￿of￿the￿Eurobonds￿were￿included￿at￿the￿same￿time￿in￿the￿Consolidated￿Statements
of￿Operations￿as￿the￿changes￿in￿the￿fair￿value￿of￿the￿interest￿rate￿swaps.

Furthermore,￿as￿part￿of￿our￿hedging￿policy,￿we￿use￿interest￿rate￿swaps￿to￿hedge￿the￿variability￿of￿future￿interest￿cash
flows￿relating￿to￿certain￿of￿our￿operating￿lease￿obligations.￿During￿2013,￿these￿hedges￿were￿highly￿effective￿in￿hedging
the￿cash￿flow￿exposure￿to￿interest￿rate￿movements.

Financial Instruments
We￿use￿foreign￿exchange￿contracts￿to￿manage￿our￿foreign￿currency￿risk￿and￿interest￿rate￿swaps￿to￿manage￿our￿interest
rate￿risk.￿The￿following￿table￿summarizes￿the￿notional￿amounts￿and￿estimated￿fair￿values￿of￿our￿derivative￿financial
instruments:

(in thousands)
Forward￿foreign￿exchange￿contracts¹
Interest￿rate￿swaps²

As of December 31 Notional amount
EUR
986,986
1,013,053

Fair Value Notional amount
EUR
262,146
624,900

EUR
8,583
51,385

Fair Value
EUR
16,805
124,050

2013

2012

1

2

Relates￿to￿forward￿contracts￿assigned￿as￿a￿hedge￿to￿forecasted￿sales￿and￿purchase￿transactions￿and￿to￿monetary￿assets￿and￿liabilities,￿mainly￿in￿U.S.
dollar￿and￿Japanese￿Yen.
Relates￿to￿interest￿rate￿swaps￿assigned￿as￿a￿hedge￿to￿interest￿bearing￿assets￿and￿liabilities,￿mainly￿related￿to￿our￿Eurobonds;￿the￿fair￿value￿of￿the
interest￿rate￿swaps￿includes￿accrued￿interest.

The￿following￿table￿summarizes￿our￿derivative￿financial￿instruments￿per￿category:

As of December 31
(in thousands)
Interest￿rate￿swaps￿-￿cash￿flow￿hedges
Interest￿rate￿swaps￿-￿fair￿value￿hedges
Forward￿foreign￿exchange￿contracts￿-￿cash￿flow￿hedges
Forward￿foreign￿exchange￿contracts￿-￿other￿hedges￿(no￿hedge￿accounting)
Total

Less￿non-current￿portion:
Interest￿rate￿swaps￿-￿cash￿flow￿hedges
Interest￿rate￿swaps￿-￿fair￿value￿hedges
Total non-current portion

2013

2012

Assets
EUR
-
54,983
3
16,634
71,620

-
30,777
30,777

Liabilities
EUR
3,598
-
6,039
2,015
11,652

2,608
-
2,608

Assets
EUR
-
128,830
5,975
16,943
151,748

-
101,651
101,651

Total current portion

40,843

9,044

50,097

Liabilities
EUR
4,780
-
5,688
425
10,893

4,032
-
4,032

6,861

ASML￿ANNUAL￿REPORT￿2013

F-20

The￿fair￿value￿part￿of￿a￿hedging￿derivative￿financial￿instruments￿that￿has￿a￿remaining￿term￿of￿12￿months￿or￿less￿after
balance￿sheet￿date￿is￿classified￿as￿current￿asset￿or￿liability.￿When￿the￿fair￿value￿part￿of￿a￿hedging￿derivative￿has￿a
term￿of￿more￿than￿12￿months￿after￿balance￿sheet￿date,￿it￿is￿classified￿as￿non-current￿asset￿or￿liability.￿The￿current
portion￿of￿derivative￿financial￿instruments￿is￿included￿in￿respectively￿other￿current￿assets￿and￿current￿accrued￿and￿other
liabilities￿in￿the￿Consolidated￿Balance￿Sheets.￿The￿non-current￿portion￿of￿derivative￿financial￿instruments￿is￿included￿in,
respectively,￿other￿non-current￿assets￿and￿non-current￿accrued￿and￿other￿liabilities￿in￿the￿Consolidated￿Balance￿Sheets.

For￿further￿information￿regarding￿our￿derivative￿financial￿instruments,￿see￿Notes￿1￿and￿3.

Foreign Exchange Contracts
The￿notional￿principal￿amounts￿of￿the￿outstanding￿forward￿foreign￿exchange￿contracts￿in￿the￿main￿currencies￿U.S.￿dollar
and￿Japanese￿yen￿at￿December￿31,￿2013￿are￿USD￿1,144.0￿million￿and￿JPY￿2.2￿billion￿(2012:￿USD￿159.8￿million￿and￿JPY
8.4￿billion).

The￿hedged￿highly￿probable￿forecasted￿transactions￿denominated￿in￿foreign￿currency￿are￿expected￿to￿occur￿at￿various
dates￿during￿the￿coming￿12￿months.￿Gains￿and￿losses￿recognized￿in￿OCI￿on￿forward￿foreign￿exchange￿contracts￿as￿of
December￿31,￿2013￿will￿be￿recognized￿in￿the￿Consolidated￿Statements￿of￿Operations￿in￿the￿period￿or￿periods￿during
which￿the￿hedged￿forecasted￿transactions￿affect￿the￿Consolidated￿Statements￿of￿Operations.

In￿2013,￿we￿recognized￿a￿net￿amount￿of￿EUR￿2.3￿million￿gain￿(2012:￿EUR￿8.7￿million￿gain;￿2011:￿EUR￿58.1￿million
loss)￿in￿the￿Consolidated￿Statements￿of￿Operations￿resulting￿from￿effective￿cash￿flow￿hedges￿for￿forecasted￿sales￿and
purchase￿transactions￿that￿occurred￿in￿the￿year.￿Furthermore,￿we￿recognized￿a￿net￿amount￿of￿EUR￿62.5￿million￿gain￿in
the￿Consolidated￿Statements￿of￿Operations￿resulting￿from￿derivative￿financial￿instruments￿measured￿at￿fair￿value￿through
profit￿or￿loss￿(2012:￿EUR￿3.0￿million￿gain;￿2011:￿EUR￿38.3￿million￿loss).

Interest Rate Swaps
The￿notional￿principal￿amounts￿of￿the￿outstanding￿interest￿rate￿swap￿contracts￿as￿of￿December￿31,￿2013￿were￿EUR
1,013.1￿million￿(2012:￿EUR￿624.9￿million).

Credit Risk Management
Financial￿instruments￿that￿potentially￿subject￿us￿to￿significant￿concentration￿of￿credit￿risk￿consist￿principally￿of￿cash
and￿cash￿equivalents,￿short-term￿investments,￿derivative￿financial￿instruments￿used￿for￿hedging￿activities,￿accounts
receivable￿and￿finance￿receivables.

Cash￿and￿cash￿equivalents,￿short-term￿investments￿and￿derivative￿financial￿instruments￿contain￿an￿element￿of￿risk￿of
the￿counterparties￿being￿unable￿to￿meet￿their￿obligations.￿Our￿risk￿management￿program￿focuses￿appropriately￿on
the￿current￿environment￿of￿uncertainty￿in￿the￿financial￿markets,￿especially￿in￿the￿euro-zone.￿We￿invest￿our￿cash￿and
cash￿equivalents￿and￿short-term￿investments￿in￿short-term￿deposits￿with￿high-rated￿financial￿institutions￿and￿the￿Dutch
government,￿in￿Dutch￿Treasury￿Certificates￿and￿in￿AAAm-rated￿money￿market￿funds￿that￿invest￿in￿high-rated￿short-term
debt￿securities￿of￿financial￿institutions￿and￿governments.￿To￿mitigate￿the￿risk￿that￿any￿of￿our￿counterparties￿in￿hedging
transactions￿is￿unable￿to￿meet￿its￿obligations,￿we￿only￿enter￿into￿transactions￿with￿a￿limited￿number￿of￿major￿financial
institutions￿that￿have￿good￿credit￿ratings￿and￿closely￿monitor￿the￿creditworthiness￿of￿our￿counterparties.￿Concentration
risk￿is￿mitigated￿by￿limiting￿the￿exposure￿to￿a￿single￿counterparty.

Our￿customers￿consist￿of￿IC￿manufacturers￿located￿throughout￿the￿world.￿We￿perform￿ongoing￿credit￿evaluations￿of
our￿customers’￿financial￿condition.￿We￿take￿additional￿measures￿to￿mitigate￿credit￿risk￿when￿considered￿appropriate￿by
means￿of￿e.g.￿down￿payments,￿letters￿of￿credit￿or￿retention￿of￿ownership￿provisions￿in￿contracts.￿Retention￿of￿ownership
enables￿us￿to￿recover￿the￿systems￿in￿the￿event￿a￿customer￿defaults￿on￿payment.

ASML￿ANNUAL￿REPORT￿2013

F-21

5. Cash and Cash Equivalents and Short-term Investments
Cash￿and￿cash￿equivalents￿at￿December￿31,￿2013￿include￿deposits￿with￿high-rated￿financial￿institutions￿and￿the￿Dutch
government￿of￿EUR￿853.5￿million￿(2012:￿EUR￿775.6￿million),￿investments￿in￿AAAm-rated￿money￿market￿funds￿that￿invest
in￿high-rated￿debt￿securities￿of￿financial￿institutions￿and￿governments￿of￿EUR￿535.0￿million￿(2012:￿EUR￿385.4￿million)
and￿interest-bearing￿bank￿accounts￿of￿EUR￿942.2￿million￿(2012:￿EUR￿606.6￿million).￿Our￿cash￿and￿cash￿equivalents￿are
predominantly￿denominated￿in￿euros￿and￿partly￿in￿U.S.￿dollars.

Cash￿and￿cash￿equivalents￿have￿insignificant￿interest￿rate￿risk￿and￿remaining￿maturities￿of￿three￿months￿or￿less￿at￿the
date￿of￿acquisition.￿Except￿for￿an￿amount￿of￿EUR￿4.7￿million,￿no￿restrictions￿on￿usage￿of￿cash￿and￿cash￿equivalents
exist.￿The￿carrying￿amount￿of￿these￿assets￿approximates￿their￿fair￿value.

Short-term￿investments￿have￿insignificant￿interest￿rate￿risk￿and￿remaining￿maturities￿longer￿than￿three￿months￿but￿less
than￿one￿year￿at￿the￿date￿of￿acquisition.

Short-term￿investments￿(classified￿as￿available￿for￿sale￿securities)￿consist￿of￿the￿following:

As of December 31, 2013
(in thousands)
Dutch￿Treasury￿Certificates
Deposits
Total

As of December 31, 2012
(in thousands)
Dutch￿Treasury￿Certificates
Deposits
Total

Cost basis
304,884
375,000
679,884

Cost basis
279,988
650,017
930,005

Unrealized
Gains
-
-
-

Unrealized
Gains
-
-
-

Unrealized
Losses
-
-
-

Recorded Basis
304,884
375,000
679,884

Unrealized
Losses
-
-
-

Recorded Basis
279,988
650,017
930,005

6. Accounts Receivable
Accounts￿receivable￿consist￿of￿the￿following:

As of December 31
(in thousands)
Accounts￿receivable,￿gross
Allowance￿for￿doubtful￿receivables

Accounts receivable, net

2013
EUR
880,169
(1,848)

878,321

2012
EUR
607,359
(2,071)

605,288

The￿increase￿in￿accounts￿receivable￿as￿of￿December￿31,￿2013￿compared￿to￿December￿31,￿2012￿is￿mainly￿caused￿by￿an
increased￿number￿of￿systems￿shipped￿and￿recognized￿in￿sales￿in￿the￿last￿months￿of￿2013￿compared￿to￿the￿last￿months
of￿2012.

The￿carrying￿amount￿of￿the￿accounts￿receivable￿approximates￿the￿fair￿value.￿We￿perform￿ongoing￿credit￿evaluations
on￿our￿customers’￿financial￿condition.￿We￿periodically￿review￿whether￿an￿allowance￿for￿credit￿losses￿is￿needed￿by
considering￿factors￿such￿as￿historical￿payment￿experience,￿credit￿quality,￿aging￿of￿the￿accounts￿receivable￿balances,￿and
current￿economic￿conditions￿that￿may￿affect￿a￿customer’s￿ability￿to￿pay.

Movements￿of￿the￿allowance￿for￿doubtful￿receivables￿are￿as￿follows:

Year ended December 31
(in thousands)
Balance￿at￿beginning￿of￿year
Addition￿for￿the￿year1
Utilization￿of￿the￿provision

Allowance for doubtful receivables

2013
EUR
(2,071)
(1,062)
1,285

(1,848)

2012
EUR
(2,582)
(458)
969

(2,071)

1

The￿addition￿for￿the￿year￿is￿recorded￿in￿the￿cost￿of￿sales.

ASML￿ANNUAL￿REPORT￿2013

F-22

7. Finance Receivables
Finance￿receivables￿consist￿of￿the￿net￿investment￿in￿sales-type￿leases.￿The￿following￿table￿lists￿the￿components￿of￿the
finance￿receivables￿as￿of￿December￿31,￿2013￿and￿2012:

As of December 31
(in thousands)
Finance￿receivables,￿gross
Unearned￿interest
Finance receivables, net
Current￿portion￿of￿finance￿receivables,￿gross
Current￿portion￿of￿unearned￿interest
Non-current portion of finance receivables, net

2013
EUR
302,977
(6,488)
296,489
254,227
(3,755)
46,017

2012
EUR
309,616
(5,828)
303,788
268,617
(3,450)
38,621

The￿slight￿decrease￿in￿finance￿receivables￿as￿of￿December￿31,￿2013￿compared￿to￿December￿31,￿2012￿is￿caused￿by￿a
change￿in￿the￿product￿mix￿(lower￿number￿of￿high-end￿system￿types￿included￿at￿the￿end￿of￿2013￿compared￿to￿2012).￿At
December￿31,￿2013,￿the￿finance￿receivables￿due￿for￿payment￿in￿each￿of￿the￿next￿five￿years￿and￿thereafter￿are￿as￿follows:

(in thousands)
2014
2015
2016
2017
2018
Thereafter
Finance receivables, gross

EUR
254,227
-
6,150
36,450
6,150
-
302,977

We￿perform￿ongoing￿credit￿evaluations￿on￿our￿customers’￿financial￿condition.￿We￿periodically￿review￿whether￿an
allowance￿for￿credit￿losses￿is￿needed￿by￿considering￿factors￿such￿as￿historical￿payment￿experience,￿credit￿quality,￿the
aging￿of￿the￿finance￿receivables￿balances,￿and￿current￿economic￿conditions￿that￿may￿affect￿a￿customer’s￿ability￿to￿pay.
In￿2013￿and￿2012,￿we￿did￿not￿record￿any￿expected￿credit￿losses￿from￿finance￿receivables.￿As￿of￿December￿31,￿2013￿the
finance￿receivables￿were￿neither￿past￿due￿nor￿impaired.

8. Inventories
Inventories￿consist￿of￿the￿following:

As of December 31
(in thousands)
Raw￿materials
Work-in-process
Finished￿products

Inventories, gross
Allowance￿for￿obsolescence￿and/or￿lower￿market￿value
Inventories, net

2013
EUR
438,853
1,549,119
666,648

2,654,620
(261,598)
2,393,022

A￿summary￿of￿activity￿in￿the￿allowance￿for￿obsolescence￿and/or￿lower￿market￿value￿is￿as￿follows:

Year ended December 31
(in thousands)
Balance￿at￿beginning￿of￿year
Addition￿for￿the￿year
Effect￿of￿changes￿in￿exchange￿rates
Utilization￿of￿the￿provision
Allowance for obsolescence and/or lower market value

2013
EUR
(267,366)
(164,852)
2,532
168,088
(261,598)

2012
EUR
307,315
1,074,042
742,979

2,124,336
(267,366)
1,856,970

2012
EUR
(193,513)
(130,911)
1,009
56,049
(267,366)

In￿2013,￿the￿addition￿for￿the￿year￿is￿recorded￿in￿cost￿of￿sales￿for￿an￿amount￿of￿EUR￿155.4￿million￿and￿R&D￿costs￿for
an￿amount￿of￿EUR￿9.5￿million￿(2012:￿cost￿of￿sales￿EUR￿125.2￿million￿and￿R&D￿costs￿for￿an￿amount￿of￿EUR￿5.7￿million).
The￿2013￿addition￿for￿the￿year￿mainly￿relates￿to￿inventory￿items￿which￿were￿ceased￿to￿be￿used￿due￿to￿technological
developments￿and￿design￿changes￿which￿resulted￿in￿obsolescence￿of￿certain￿parts.

Utilization￿of￿the￿provision￿mainly￿relates￿to￿the￿sale￿and￿scrapping￿of￿obsolete￿inventories.￿In￿2013￿ASML￿made￿no￿profit
on￿the￿sale￿of￿inventories￿that￿had￿been￿previously￿written￿down￿(2012:￿EUR￿2.3￿million).

ASML￿ANNUAL￿REPORT￿2013

F-23

9. Other Assets
Other￿current￿assets￿consist￿of￿the￿following:

As of December 31
(in thousands)
Advance￿payments￿to￿Zeiss
Prepaid￿expenses
Derivative￿financial￿instruments
VAT
Other￿receivables
Other current assets

2013
EUR
99,415
100,077
40,843
67,381
28,705
336,421

2012
EUR
70,257
64,708
50,097
25,215
35,728
246,005

Zeiss￿is￿our￿sole￿supplier￿of￿main￿optical￿systems￿(including￿lenses)￿and,￿from￿time￿to￿time,￿receives￿non-interest￿bearing
advance￿payments￿from￿us￿that￿supports￿Zeiss'￿work-in-process,￿thereby￿securing￿lens￿and￿optical￿module￿deliveries￿to
us.￿Amounts￿owed￿under￿these￿advance￿payments￿are￿settled￿through￿future￿lens￿or￿EUV￿optical￿module￿deliveries.

Prepaid￿expenses￿include￿prepaid￿income￿taxes￿on￿intercompany￿profit,￿not￿realized￿by￿the￿ASML￿group￿of￿EUR￿45.4
million￿as￿of￿December￿31,￿2013￿(2012:￿EUR￿29.8￿million).

Derivative￿financial￿instruments￿consist￿of￿forward￿foreign￿exchange￿contracts￿and￿the￿current￿part￿of￿the￿aggregate￿fair
value￿of￿interest￿rate￿swaps,￿see￿Note￿4.

Other￿non-current￿assets￿consist￿of￿the￿following:

As of December 31
(in thousands)
Advance￿payments￿to￿Zeiss
Derivative￿financial￿instruments
Compensation￿plan￿assets1
Prepaid￿expenses
Subordinated￿loan￿granted￿to￿lessor￿in￿respect￿of￿Veldhoven￿headquarters2
Other
Other non-current assets

2013
EUR
224,123
30,777
20,174
10,950
5,445
7,090
298,559

2012
EUR
183,025
101,651
12,080
4,462
5,445
4,875
311,538

1
2

For￿further￿details￿on￿compensation￿plan￿assets￿see￿Note￿18.
For￿further￿details￿on￿the￿loan￿granted￿to￿lessor￿in￿respect￿of￿Veldhoven￿headquarters￿see￿Note￿12.

The￿non-current￿part￿of￿non-interest￿bearing￿advance￿payments￿to￿Zeiss￿mainly￿relates￿to￿payments￿made￿to￿support
Zeiss'￿investments￿in￿ASML’s￿EUV￿program,￿which￿are￿settled￿through￿future￿EUV￿optical￿module￿deliveries.

Derivative￿financial￿instruments￿consist￿of￿the￿non-current￿part￿of￿the￿fair￿value￿of￿interest￿rate￿swaps,￿see￿Note￿4.

10. Goodwill
Changes￿in￿goodwill￿are￿summarized￿as￿follows:

Year ended December 31
(in thousands)
Cost
Balance,￿January￿1
Acquisition￿through￿business￿combinations
Effect￿of￿changes￿in￿exchange￿rates
Goodwill

2013
EUR

149,168
2,058,285
(118,864)
2,088,589

2012
EUR

146,044
6,038
(2,914)
149,168

Goodwill￿increased￿due￿to￿the￿acquisition￿of￿Cymer.￿For￿more￿information￿with￿respect￿to￿business￿combinations,￿see
Note￿2.

Goodwill￿is￿tested￿for￿impairment￿annually￿at￿the￿end￿of￿the￿third￿quarter￿and￿whenever￿events￿or￿changes￿in
circumstances￿indicate￿that￿the￿carrying￿amount￿of￿the￿goodwill￿may￿not￿be￿recoverable.

Due￿to￿the￿acquisition￿of￿Cymer￿we￿have￿re-evaluated￿our￿RU￿structure￿in￿2013.￿As￿a￿result,￿all￿goodwill￿recognized￿in
relation￿to￿the￿acquisition￿of￿Cymer￿is￿allocated￿to￿the￿RU￿ASML.￿The￿fair￿value￿of￿the￿RU￿ASML￿is￿based￿on￿ASML's
market￿capitalization.

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Based￿on￿the￿recoverability￿testing￿during￿the￿annual￿goodwill￿impairment￿test,￿we￿believe￿that￿the￿fair￿value￿of￿the
RU￿ASML￿substantially￿exceeds￿its￿carrying￿value,￿therefore￿goodwill￿was￿not￿impaired￿as￿of￿December￿31,￿2013￿and
December￿31,￿2012.

11. Other Intangible Assets
Other￿intangible￿assets￿consist￿of￿both￿finite-lived￿intangible￿assets￿and￿indefinite-lived￿intangible￿assets.￿The￿main￿part
of￿the￿other￿intangible￿assets￿was￿acquired￿as￿part￿of￿the￿acquisitions￿of￿Brion￿and￿Cymer.￿For￿more￿information￿with
respect￿to￿business￿combinations,￿see￿Note￿2.

Finite-lived￿other￿intangible￿assets￿consist￿of￿the￿following:

(in thousands)
Cost
Balance,￿January￿1,￿2012
Additions

Balance,￿December￿31,￿2012
Acquisitions￿through￿business￿combinations
Additions
Effect￿of￿changes￿in￿exchange￿rates
Balance, December 31, 2013

Accumulated amortization

Balance,￿January￿1,￿2012
Amortization

Balance,￿December￿31,￿2012
Amortization
Effect￿of￿changes￿in￿exchange￿rates
Balance, December 31, 2013

Brands
EUR

-
-

-
13,280
-
(726)
12,554

-
-

-
382
(13)
369

Carrying amount
December￿31,￿2012
December 31, 2013

-
12,185

Intellectual
property
EUR

Developed
technology
EUR

Customer
relationships
EUR

49,031
-

49,031
427,797
-
(23,380)
453,448

44,271
4,080

48,351
18,694
(596)
66,449

8,733
-

8,733
162,980
-
(8,907)
162,806

5,277
1,092

6,369
6,332
(174)
12,527

Other
EUR

2,231
-

2,231
-
-
-
2,231

2,103
109

2,212
19
-
2,231

Total
EUR

107,245
7,658

114,903
604,057
4,000
(33,013)
689,947

98,879
6,081

104,960
27,562
(783)
131,739

680
386,999

2,364
150,279

19
-

9,943
558,208

47,250
7,658

54,908
-
4,000
-
58,908

47,228
800

48,028
2,135
-
50,163

6,880
8,745

The￿weighted-average￿amortization￿period￿for￿the￿total￿finite-lived￿other￿intangible￿assets￿acquired,￿as￿a￿result￿of￿the
acquisition￿of￿Cymer,￿is￿15.2￿years.

The￿weighted-average￿amortization￿period￿for￿the￿finite-lived￿other￿intangible￿assets￿acquired,￿as￿a￿result￿of￿the
acquisition￿of￿Cymer,￿by￿major￿intangible￿asset￿class￿is￿as￿follows:

(in years)
Weighted-average￿amortization￿period

Brands
20.0

Developed technology Customer relationships
17.9

14.0

Acquired￿finite-lived￿other￿intangible￿assets￿are￿amortized￿on￿a￿straight-line￿basis￿not￿taking￿into￿account￿any￿residual
value.

Intellectual￿property￿relates￿to￿licenses￿and￿patents￿purchased￿from￿third￿parties.￿During￿2013,￿we￿acquired￿intellectual
property￿from￿third￿parties￿for￿an￿amount￿of￿EUR￿4.0￿million￿(2012:￿EUR￿7.7￿million).

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F-25

Indefinite-lived￿other￿intangible￿assets￿consist￿of￿the￿following:

(in thousands)
Cost
Balance,￿January￿1,￿2012
Additions

Balance,￿December￿31,￿2012
Acquisitions￿through￿business￿combinations
Additions
Effect￿of￿changes￿in￿exchange￿rates
Carrying amount, December 31, 2013

In-process
R&D
EUR

-
-

-
147,485
-
(8,059)
139,426

All￿acquired￿infinite-lived￿other￿intangible￿assets￿are￿allocated￿to￿the￿RU￿ASML.

Brands,￿Developed￿technology,￿Customer￿relationships,￿In-process￿R&D￿and￿Other￿were￿obtained￿from￿the￿acquisitions
of￿Cymer￿(2013)￿and￿Brion￿(2007).

During￿2013,￿we￿recorded￿amortization￿charges￿of￿EUR￿27.6￿million￿(2012:￿EUR￿6.1￿million;￿2011:￿EUR￿5.3￿million)￿which
were￿recorded￿in￿cost￿of￿sales￿for￿EUR￿27.0￿million￿(2012:￿EUR￿6.0￿million;￿2011:￿EUR￿5.3￿million)￿and￿in￿R&D￿costs￿for
EUR￿0.6￿million￿(2012:EUR￿0.1￿million￿and￿2011:￿nil).

During￿2013,￿2012￿and￿2011,￿we￿did￿not￿record￿any￿impairment￿charges￿for￿other￿intangible￿assets.

As￿at￿December￿31,￿2013,￿the￿estimated￿amortization￿expenses￿for￿other￿intangible￿assets,￿for￿the￿next￿five￿years￿and
thereafter,￿are￿as￿follows:

(in thousands)
2014
2015
2016
2017
2018
Thereafter

EUR
42,227
41,317
52,753
51,958
50,619
458,760

Amortization expenses

697,634

ASML￿ANNUAL￿REPORT￿2013

F-26

12. Property, Plant and Equipment
Property,￿plant￿and￿equipment￿consist￿of￿the￿following:

Land,
buildings and
constructions
EUR

Machinery
and
equipment
EUR

Leasehold
improvements
EUR

Furniture,
fixtures and
other
equipment
EUR

(in thousands)
Cost
Balance,￿January￿1,￿2012
Additions
Disposals
Effect￿of￿changes￿in￿exchange￿rates
Balance,￿December￿31,￿2012
Acquisitions￿through￿business￿combinations
Additions
Disposals
Effect￿of￿changes￿in￿exchange￿rates
Balance, December 31, 2013

Accumulated depreciation and impairment
Balance,￿January￿1,￿2012
Depreciation
Impairment￿charges
Disposals
Effect￿of￿changes￿in￿exchange￿rates
Balance,￿December￿31,￿2012
Depreciation
Impairment￿charges
Disposals
Effect￿of￿changes￿in￿exchange￿rates
Balance, December 31, 2013

Carrying amount
December￿31,￿2012
December 31, 2013

742,141
106,234
(347)
(995)
847,033
71,040
123,646
(14)
(6,605)
1,035,100

155,877
31,598
649
(347)
(505)
187,272
47,791
3,619
(5)
(1,116)
237,561

659,761
797,539

764,023
248,429
(317,022)
(4,671)
690,759
48,965
171,895
(90,244)
(17,490)
803,885

401,800
110,571
906
(92,205)
(3,090)
417,982
114,677
7,997
(42,625)
(8,068)
489,963

272,777
313,922

206,660
8,883
(300)
(391)
214,852
1,057
11,543
(336)
(1,464)
225,652

145,775
13,416
-
(248)
(165)
158,778
12,415
1,352
(266)
(422)
171,857

56,074
53,795

Total
EUR

2,057,803
386,295
(348,563)
(6,116)
2,089,419
124,308
339,252
(92,519)
(27,342)
2,433,118

1,004,193
179,253
3,234
(123,375)
(3,809)
1,059,496
197,053
13,057
(44,178)
(10,150)
1,215,278

344,979
22,749
(30,894)
(59)
336,775
3,246
32,168
(1,925)
(1,783)
368,481

300,741
23,668
1,679
(30,575)
(49)
295,464
22,170
89
(1,282)
(544)
315,897

41,311
52,584

1,029,923
1,217,840

Property,￿plant￿and￿equipment￿include￿amounts￿recorded￿as￿a￿result￿of￿the￿acquisition￿of￿Cymer.￿For￿more￿information
with￿respect￿to￿business￿combinations,￿we￿refer￿to￿Note￿2.

As￿of￿December￿31,￿2013,￿the￿carrying￿amount￿includes￿assets￿under￿construction￿for￿land,￿buildings￿and￿constructions
of￿EUR￿49.3￿million￿(2012:￿EUR￿5.5￿million),￿machinery￿and￿equipment￿of￿EUR￿35.9￿million￿(2012:￿EUR￿21.8￿million),
leasehold￿improvements￿of￿EUR￿1.0￿million￿(2012:￿EUR￿1.0￿million)￿and￿furniture,￿fixtures￿and￿other￿equipment￿of￿EUR
13.9￿million￿(2012:￿EUR￿9.3￿million).￿As￿of￿December￿31,￿2013,￿the￿carrying￿amount￿of￿land￿amounts￿to￿EUR￿79.2￿million
(2012:￿EUR￿60.7￿million).

The￿majority￿of￿the￿additions￿and￿disposals￿in￿2013￿and￿2012￿relate￿to￿machinery￿and￿equipment￿(including￿operating
leases￿to￿customers,￿prototypes,￿evaluation￿and￿training￿systems).￿These￿systems￿are￿similar￿to￿those￿that￿ASML￿sells
in￿its￿ordinary￿course￿of￿business.￿The￿systems￿are￿capitalized￿under￿property,￿plant￿and￿equipment￿because￿they￿are
held￿for￿own￿use,￿for￿operating￿lease￿and￿for￿evaluation￿purposes.￿These￿systems￿are￿recorded￿at￿cost￿and￿depreciated
over￿their￿expected￿useful￿life￿taking￿into￿consideration￿their￿residual￿value.￿From￿the￿time￿that￿these￿assets￿are￿no
longer￿held￿for￿use￿but￿intended￿for￿sale￿in￿the￿ordinary￿course￿of￿business,￿they￿are￿reclassified￿from￿property,￿plant￿and
equipment￿to￿inventory￿at￿the￿lower￿of￿their￿carrying￿value￿or￿fair￿market￿value.￿Since￿the￿transfers￿between￿inventory
and￿property,￿plant￿and￿equipment￿are￿non-cash￿events,￿these￿are￿not￿reflected￿in￿the￿Consolidated￿Statements￿of
Cash￿Flows.￿An￿amount￿of￿EUR￿115.9￿million￿(2012:￿EUR￿204.8￿million)￿of￿the￿additions￿relates￿to￿non-cash￿transfers
from￿inventory￿and￿an￿amount￿of￿EUR￿12.5￿million￿(2012:￿EUR￿9.6￿million)￿relates￿to￿other￿non-cash￿movements￿(mainly
capital￿expenditures￿not￿yet￿paid￿as￿at￿December￿31,￿2013).￿An￿amount￿of￿EUR￿48.2￿million￿(2012:￿EUR￿222.9￿million)￿of
the￿disposals￿relates￿to￿non-cash￿transfers￿to￿inventory.￿When￿sold,￿the￿proceeds￿and￿cost￿of￿these￿systems￿are
recorded￿as￿net￿sales￿and￿cost￿of￿sales,￿respectively,￿identical￿to￿the￿treatment￿of￿other￿sales￿transactions.￿The￿cost￿of
sales￿for￿these￿systems￿includes￿the￿inventory￿value￿and￿the￿additional￿costs￿of￿refurbishing￿(materials￿and￿labor).

The￿impairment￿charges￿recorded￿in￿2013￿mainly￿related￿to￿buildings￿(EUR￿3.6￿million)￿and￿machinery￿and￿equipment
(EUR￿8.0￿million).￿We￿recorded￿impairment￿charges￿in￿buildings￿relating￿to￿the￿rebuild￿of￿cleanroom￿cabins￿and￿in
machinery￿and￿equipment￿relating￿to￿proto￿types.￿The￿total￿impairment￿charges￿were￿determined￿based￿on￿the￿difference
between￿the￿assets’￿estimated￿fair￿value￿(being￿EUR￿16.4￿million)￿and￿their￿carrying￿amount.

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The￿impairment￿charges￿recorded￿in￿2012￿mainly￿related￿to￿furniture,￿fixture￿and￿other￿equipment￿(EUR￿1.7￿million).￿We
recorded￿impairment￿charges￿with￿respect￿to￿software￿which￿ceased￿to￿be￿used.￿The￿total￿impairment￿charges￿were
determined￿based￿on￿the￿difference￿between￿the￿assets’￿estimated￿fair￿value￿(being￿EUR￿0.1￿million)￿and￿their￿carrying
amount.

The￿impairment￿charges￿recorded￿in￿2011￿mainly￿related￿to￿machinery￿and￿equipment￿and￿furniture,￿fixture￿and￿other
equipment￿(EUR￿9.5￿million).￿We￿recorded￿impairment￿charges￿with￿respect￿to￿technical￿equipment￿and￿software
which￿ceased￿to￿be￿used.￿The￿total￿impairment￿charges￿were￿determined￿based￿on￿the￿difference￿between￿the￿assets’
estimated￿fair￿value￿(being￿EUR￿1.9￿million)￿and￿their￿carrying￿amount.

As￿of￿December￿31,￿2013,￿the￿carrying￿amount￿of￿machinery￿and￿equipment￿includes￿an￿amount￿of￿EUR￿36.7￿million￿with
respect￿to￿evaluation￿and￿operating￿lease￿systems￿(2012:￿EUR￿82.2￿million).

During￿2013,￿we￿recorded￿impairment￿charges￿of￿EUR￿13.1￿million￿(2012:￿EUR￿3.2￿million;￿2011:￿EUR￿12.3￿million)￿of
which￿we￿recorded￿EUR￿6.3￿million￿(2012:￿EUR￿1.0￿million;￿2011:￿EUR￿6.2￿million)￿in￿cost￿of￿sales,￿EUR￿6.7￿million￿(2012:
EUR￿0.5￿million;￿2011:￿EUR￿3.5￿million)￿in￿R&D￿costs￿and￿EUR￿0.1￿million￿(2012:￿EUR￿1.7￿million;￿2011:￿EUR￿2.6￿million)
in￿SG&A￿costs.

During￿2013,￿we￿recorded￿depreciation￿charges￿of￿EUR￿197.1￿million￿(2012:￿EUR￿179.3￿million;￿2011:￿EUR￿158.0￿million)
of￿which￿we￿recorded￿EUR￿144.1￿million￿(2012:￿EUR￿147.7￿million;￿2011:￿EUR￿117.7￿million)￿in￿cost￿of￿sales,￿EUR￿35.0
million￿(2012￿EUR￿15.3￿million;￿2011:￿EUR￿24.9￿million)￿in￿R&D￿costs￿and￿EUR￿18.0￿million￿(2012:￿EUR￿16.3￿million;￿2011:
EUR￿15.4￿million)￿in￿SG&A￿costs.

Variable Interest Entity
The￿carrying￿amount￿of￿land,￿buildings￿and￿constructions￿includes￿an￿amount￿of￿EUR￿30.9￿million￿(2012:￿EUR￿32.4
million)￿relating￿to￿our￿headquarters￿in￿Veldhoven,￿the￿Netherlands,￿which￿is￿owned￿by￿Koppelenweg￿II￿B.V.,￿a￿"VIE".

As￿of￿2003,￿we￿are￿leasing￿the￿Veldhoven￿headquarters￿for￿a￿period￿of￿15￿years￿(starting￿in￿2003)￿from￿an￿entity￿("lessor")
that￿was￿incorporated￿by￿the￿VIE￿Shareholders.￿The￿lessor’s￿shareholders'￿equity￿amounts￿to￿EUR￿1.9￿million￿and￿has
not￿changed￿since￿2003.

The￿VIE￿shareholders￿each￿granted￿a￿loan￿of￿EUR￿11.6￿million￿and￿a￿fourth￿bank￿granted￿a￿loan￿of￿EUR￿12.3￿million
(EUR￿47.1￿million￿in￿total)￿to￿the￿parent￿of￿the￿lessor.￿ASML￿provided￿the￿parent￿of￿the￿lessor￿with￿a￿subordinated￿loan
of￿EUR￿5.4￿million￿and￿has￿a￿purchase￿option￿that￿is￿exercisable￿either￿at￿the￿end￿of￿the￿lease￿in￿2018,￿at￿a￿price￿of
EUR￿24.5￿million,￿or￿during￿the￿lease￿at￿a￿price￿equal￿to￿the￿book￿value￿of￿the￿assets.￿The￿total￿assets￿of￿the￿lessor
entity￿amounted￿to￿EUR￿54.5￿million￿at￿inception￿of￿the￿lease.￿The￿entity￿is￿determined￿to￿be￿a￿VIE￿because￿the￿equity
investors￿do￿not￿have￿sufficient￿equity￿at￿risk￿for￿the￿legal￿entity￿to￿finance￿its￿activities￿without￿sufficient￿additional
subordinated￿support.

The￿primary￿purpose￿for￿which￿the￿VIE￿was￿created￿was￿to￿provide￿ASML￿with￿use￿of￿the￿building￿for￿15￿years,￿where
ASML￿does￿not￿retain￿substantially￿all￿the￿risks￿and￿rewards￿from￿changes￿in￿value￿of￿the￿building.￿The￿main￿activities
of￿the￿entity￿are￿to￿rent,￿re-market￿and￿ultimately￿sell￿the￿building￿that￿is￿owned￿by￿the￿VIE.￿The￿economic￿performance
of￿the￿VIE￿is￿most￿significantly￿impacted￿by￿the￿ability￿of￿the￿lessee￿(ASML)￿to￿exercise￿the￿purchase￿option￿at￿any￿time
during￿the￿lease￿term,￿and￿thus￿we￿could￿potentially￿benefit￿from￿increases￿in￿the￿fair￿value￿of￿the￿building.

While￿the￿debt￿holders￿have￿an￿interest,￿and￿may￿absorb￿losses,￿and￿the￿equity￿holders￿have￿an￿interest￿and￿may￿receive
benefits,￿they￿do￿not￿have￿the￿power￿to￿direct￿activities￿that￿most￿significantly￿impact￿the￿entity’s￿economic￿performance
and￿therefore,￿cannot￿be￿the￿primary￿beneficiary.￿Through￿the￿pre-determined￿price￿of￿the￿call￿option￿ASML￿has￿the
power￿over￿the￿VIE,￿therefore￿only￿ASML￿meets￿both￿the￿power￿and￿losses/benefit￿criterion￿and￿consolidates￿the￿VIE.

ASML￿ANNUAL￿REPORT￿2013

F-28

13. Accrued and Other Liabilities
Accrued￿and￿other￿liabilities￿consist￿of￿the￿following:

As of December 31
(in thousands)
Deferred￿revenue
Costs￿to￿be￿paid
Down￿payments￿from￿customers
Personnel￿related￿items
Derivative￿financial￿instruments
Standard￿warranty￿reserve
Other
Accrued and other liabilities
Less:￿non-current￿portion￿of￿accrued￿and￿other￿liabilities1
Current portion of accrued and other liabilities

2013
EUR
939,358
440,010
821,959
247,246
11,652
27,475
12,324
2,500,024
283,142
2,216,882

2012
EUR
739,136
278,066
1,033,768
200,670
10,893
21,626
1,352
2,285,511
405,141
1,880,370

1

The￿main￿part￿of￿the￿non-current￿portion￿of￿accrued￿and￿other￿liabilities￿relates￿to￿down￿payments￿received￿from￿customers￿regarding￿future
shipments￿of￿EUV￿systems￿and￿deferrals￿with￿respect￿to￿services.

The￿increase￿in￿accrued￿and￿other￿liabilities￿mainly￿relates￿to￿the￿increase￿in￿deferred￿revenue￿and￿costs￿to￿be￿paid,
partly￿offset￿by￿the￿decrease￿in￿down￿payments￿from￿customers.

Deferred￿revenue￿as￿of￿December￿31,￿2013￿mainly￿consists￿of￿award￿credits￿regarding￿free￿or￿discounted￿products
or￿services￿as￿part￿of￿volume￿purchase￿agreements￿amounting￿to￿EUR￿660.1￿million￿(2012:￿EUR￿581.5￿million)￿and
prepaid￿extended￿and￿enhanced￿(optic)￿warranty￿contracts￿amounting￿to￿EUR￿261.2￿million￿(2012:￿EUR￿242.2￿million).￿In
addition,￿the￿deferred￿revenue￿also￿includes￿deferrals￿with￿respect￿to￿our￿first￿third-generation￿EUV￿system,￿NXE:3300B.

Costs￿to￿be￿paid￿include￿an￿amount￿of￿EUR￿171.2￿million￿relating￿to￿the￿expected￿losses￿to￿upgrade￿the￿first￿11￿EUV
sources￿in￿the￿field,￿which￿was￿assumed￿by￿ASML￿as￿a￿result￿of￿the￿acquisition￿of￿Cymer.￿In￿addition,￿costs￿to￿be￿paid
include￿accrued￿cost￿for￿unbilled￿services￿provided￿by￿suppliers￿including￿contracted￿labor,￿outsourced￿services￿and
consultancy.

We￿receive￿down￿payments￿from￿customers￿prior￿to￿shipment￿for￿systems￿included￿in￿ASML’s￿current￿product￿portfolio
or￿systems￿currently￿under￿development.

Personnel￿related￿items￿mainly￿consist￿of￿accrued￿management￿bonuses,￿accrued￿profit￿sharing,￿accrued￿vacation￿days,
accrued￿vacation￿allowance,￿accrued￿wage￿tax,￿social￿securities￿and￿accrued￿pension￿premiums.

Derivative￿financial￿instruments￿consist￿of￿the￿fair￿value￿of￿foreign￿currency￿contracts￿and￿the￿aggregate￿fair￿value￿of
interest￿rate￿swaps￿which￿includes￿accrued￿interest,￿see￿Note￿4.

Changes￿in￿standard￿warranty￿reserve￿for￿the￿years￿2013￿and￿2012￿are￿as￿follows:

(in thousands)
Balance,￿January￿1
Acquisitions￿through￿business￿combinations
Additions￿for￿the￿year
Utilization￿of￿the￿reserve
Release￿of￿the￿reserve
Effect￿of￿exchange￿rates
Standard warranty reserve

2013
EUR
21,626
2,978
37,124
(19,924)
(13,076)
(1,253)
27,475

2012
EUR
43,273
-
35,735
(33,746)
(22,733)
(903)
21,626

The￿release￿of￿the￿reserve￿is￿due￿to￿a￿change￿in￿accounting￿estimate￿based￿on￿lower￿than￿expected￿historical￿warranty
expenses￿as￿a￿result￿of￿an￿improved￿learning-curve￿concerning￿our￿systems.￿The￿release￿has￿been￿included￿in￿cost￿of
sales.

ASML￿ANNUAL￿REPORT￿2013

F-29

14. Provisions
The￿movement￿in￿the￿provision￿for￿lease￿contract￿termination￿costs￿is￿as￿follows:

(in thousands)
Balance,￿January￿1
Utilization￿of￿the￿provision
Release￿of￿the￿provision
Unwinding￿of￿discount
Effect￿of￿exchange￿rates
Provision for lease contract termination costs
Less:￿current￿portion￿of￿provision￿for￿lease￿contract￿termination￿costs
Non-current portion of provision for lease contract termination costs

2013
EUR
10,254
(2,790)
(1,011)
391
3
6,847
2,227
4,620

2012
EUR
12,338
(2,545)
-
628
(167)
10,254
2,280
7,974

The￿provision￿for￿lease￿contract￿termination￿costs￿relates￿to￿an￿operating￿lease￿contract￿for￿a￿building￿for￿which￿no
economic￿benefits￿are￿expected.￿The￿provision￿for￿lease￿contract￿termination￿costs￿is￿expected￿to￿be￿fully￿utilized￿by
2017.

15. Long-term Debt
Long-term￿debt￿consists￿of￿the￿following:

As of December 31
(in thousands)
EUR￿600￿million￿5.75￿percent￿senior￿notes￿due￿2017,￿carrying￿amount
EUR￿750￿million￿3.375￿percent￿senior￿notes￿due￿2023,￿carrying￿amount
Loan￿headquarter￿building1
Other
Long-term debt
Less:￿current￿portion￿of￿long-term￿debt
Non-current portion of long-term debt

2013
EUR
270,339
751,591
30,936
21,704
1,074,570
4,385
1,070,185

2012
EUR
710,095
-
32,366
17,029
759,490
3,610
755,880

1

This￿loan￿relates￿to￿our￿VIE,￿see￿Note￿12.

Our￿obligations￿to￿make￿principal￿repayments￿under￿our￿Eurobonds￿and￿other￿borrowing￿arrangements￿excluding
interest￿expense￿as￿of￿December￿31,￿2013,￿for￿the￿next￿five￿years￿and￿thereafter,￿are￿as￿follows:

Long-term debt
Less:￿current￿portion￿of￿long-term￿debt
Non-current portion of long-term debt

(in thousands)
2014
2015
2016
2017
2018
Thereafter

EUR
4,385
4,252
4,211
242,361
27,997
757,467
1,040,673
4,385
1,036,288

Eurobonds
The￿following￿table￿summarizes￿the￿carrying￿amount￿of￿our￿outstanding￿Eurobonds,￿including￿the￿fair￿value￿of￿interest
rate￿swaps￿used￿to￿hedge￿the￿change￿in￿the￿fair￿value￿of￿the￿Eurobonds:

As of December 31
(in thousands)
Amortized￿cost￿amount
Fair￿value￿interest￿rate￿swaps1
Carrying amount

2013
EUR
981,291
40,639
1,021,930

2012
EUR
600,000
110,095
710,095

1

The￿fair￿value￿of￿the￿interest￿rate￿swaps￿excludes￿accrued￿interest.

ASML￿ANNUAL￿REPORT￿2013

F-30

In￿June￿2007,￿we￿completed￿an￿offering￿of￿our￿EUR￿600￿million￿5.75￿percent￿senior￿notes￿due￿2017,￿with￿interest￿payable
annually￿on￿June￿13.￿The￿notes￿are￿redeemable￿at￿the￿option￿of￿ASML,￿in￿whole￿or￿in￿part,￿at￿any￿time￿by￿paying￿a￿make
whole￿premium,￿and￿unless￿previously￿redeemed,￿will￿be￿redeemed￿at￿100￿percent￿of￿their￿principal￿amount￿on￿June￿13,
2017.￿In￿September￿2013,￿we￿repurchased￿a￿nominal￿amount￿of￿EUR￿361.8￿million￿of￿these￿notes￿in￿a￿tender￿offer￿for￿a
cash￿amount￿of￿EUR￿423.0￿million￿including￿accrued￿interest.

In￿September￿2013,￿we￿completed￿an￿offering￿of￿our￿EUR￿750￿million￿3.375￿percent￿senior￿notes￿due￿2023,￿with￿interest
payable￿annually￿on￿September￿19.￿The￿notes￿are￿redeemable￿at￿the￿option￿of￿ASML,￿in￿whole￿or￿in￿part,￿at￿any￿time
by￿paying￿a￿make￿whole￿premium,￿and￿unless￿previously￿redeemed,￿will￿be￿redeemed￿at￿100￿percent￿of￿their￿principal
amount￿on￿September￿19,￿2023.

The￿Eurobonds￿serve￿as￿hedged￿items￿in￿fair￿value￿hedge￿relationships￿in￿which￿we￿hedge￿the￿variability￿of￿changes￿in
the￿fair￿value￿of￿our￿Eurobonds￿due￿to￿changes￿in￿market￿interest￿rates￿with￿interest￿rate￿swaps.￿The￿fair￿value￿changes
of￿these￿interest￿rate￿swaps￿are￿recorded￿on￿the￿Consolidated￿Balance￿Sheets￿under￿derivative￿financial￿instruments
(within￿other￿current￿assets￿and￿other￿non-current￿assets)￿and￿the￿carrying￿amount￿of￿the￿Eurobonds￿is￿adjusted￿for
these￿fair￿value￿changes￿only.￿Following￿the￿repurchase￿of￿part￿of￿our￿EUR￿600￿million￿5.75￿percent￿senior￿notes￿due
2017,￿the￿corresponding￿part￿of￿the￿interest￿rate￿swaps￿has￿been￿terminated,￿simultaneously.

The￿following￿table￿summarizes￿amongst￿others￿the￿estimated￿fair￿value￿of￿the￿Eurobonds:

As of December 31
(in thousands)
Principal￿amount
Carrying￿amount
Fair￿value1

2013
EUR
988,153
1,021,930
1,028,238

2012
EUR
600,000
710,095
700,644

1

Source:￿Bloomberg￿Finance￿LP

The￿fair￿value￿of￿our￿Eurobonds￿is￿estimated￿based￿on￿quoted￿market￿prices￿as￿of￿December￿31,￿2013.￿Due￿to￿changes
in￿market￿interest￿rates￿and￿credit￿spreads￿since￿the￿issue￿of￿our￿Eurobonds￿which￿carry￿a￿fixed￿coupon￿interest￿rate,￿the
fair￿value￿deviates￿from￿the￿principal￿amount.

16. Lines of Credit
Our￿available￿credit￿facilities￿amount￿to￿EUR￿700.0￿million￿as￿of￿December￿31,￿2013￿and￿EUR￿500.0￿million￿as￿of
December￿31,￿2012.￿No￿amounts￿were￿outstanding￿under￿these￿credit￿facilities￿at￿the￿end￿of￿2013￿and￿2012.

The￿amount￿at￿December￿31,￿2013￿consists￿of￿one￿EUR￿700￿million￿committed￿revolving￿credit￿facility￿from￿a￿group￿of
banks￿that￿will￿mature￿in￿2018.￿This￿credit￿facility￿replaced￿our￿EUR￿500￿million￿committed￿revolving￿credit￿facility￿that
was￿due￿to￿expire￿in￿May￿2015￿and￿that￿we,￿in￿line￿with￿our￿financing￿policy,￿cancelled￿in￿March￿2013.￿The￿new￿credit
facility￿contains￿a￿similar￿restrictive￿covenant￿as￿the￿credit￿facility￿it￿replaced￿and￿that￿requires￿us￿to￿maintain￿a￿minimum
long-term￿committed￿capital￿to￿net￿total￿assets￿ratio￿of￿40.0￿percent￿calculated￿in￿accordance￿with￿contractually￿agreed
definitions.￿Long-term￿committed￿capital￿contains,￿among￿others,￿shareholders’￿equity￿and￿debt￿maturing￿at￿least￿one
year￿after￿the￿maturity￿date￿of￿the￿credit￿facility,￿while￿net￿total￿assets￿mainly￿comprises￿of￿total￿assets￿minus￿cash,￿cash
equivalents￿and￿certain￿short-term￿investments.￿Furthermore,￿adjustments￿are￿made￿for￿e.g.￿intangibles￿and￿operating
leases. As￿of￿December￿31,￿2013￿this￿ratio￿was￿89.6￿percent.￿Therefore,￿we￿are￿in￿compliance￿with￿the￿covenant￿at￿the
end￿of￿2013.￿Outstanding￿amounts￿under￿this￿credit￿facility￿will￿bear￿interest￿at￿EURIBOR￿or￿LIBOR￿plus￿a￿margin￿that
depends￿on￿our￿liquidity￿position.

The￿amount￿at￿December￿31,￿2012,￿consisted￿of￿one￿EUR￿500￿million￿committed￿revolving￿credit￿facility￿from￿a￿group￿of
banks￿that￿we￿cancelled￿in￿March￿2013.￿The￿credit￿facility￿contained￿a￿restrictive￿covenant￿that￿required￿us￿to￿maintain￿a
minimum￿committed￿capital￿to￿net￿total￿assets￿ratio￿of￿40.0￿percent￿calculated￿in￿accordance￿with￿contractually￿agreed
definitions.￿As￿of￿December￿31,￿2012,￿this￿ratio￿was￿85.8￿percent.￿Therefore,￿we￿were￿in￿compliance￿with￿the￿covenant￿at
the￿end￿of￿2012.

ASML￿ANNUAL￿REPORT￿2013

F-31

17. Commitments, Contingencies and Guarantees
We￿have￿various￿contractual￿obligations,￿some￿of￿which￿are￿required￿to￿be￿recorded￿as￿liabilities￿in￿our￿Financial
Statements,￿including￿long-￿and￿short-term￿debt.￿Other￿contractual￿obligations,￿namely￿operating￿lease￿commitments,
purchase￿obligations￿and￿guarantees,￿are￿generally￿not￿required￿to￿be￿recognized￿as￿liabilities￿on￿our￿Consolidated
Balance￿Sheets￿but￿are￿required￿to￿be￿disclosed.

Our￿contractual￿obligations￿as￿of￿December￿31,￿2013￿can￿be￿summarized￿as￿follows:

Payments due by period
(in￿thousands)

Total
EUR

1 year
EUR

Long-Term￿Debt￿Obligations,￿including￿interest￿expense1 1,341,380
74,946

Operating￿Lease￿Obligations

45,079
30,293
Purchase￿Obligations 2,012,913 1,894,455
580

74,069

Unrecognized￿Tax￿Benefits,￿including￿interest￿expense

2 year
EUR

44,952
21,543
85,548
945

3 year
EUR

44,907
14,081
16,223
7,680

4 year
EUR

275,640
4,803
13,772
26,105

5 year
EUR

54,155
2,539
2,382
785

After
5 years
EUR

876,647
1,687
533
37,974

Total Contractual Obligations 3,503,308 1,970,407

152,988

82,891

320,320

59,861

916,841

1

See￿Note￿15￿for￿the￿amounts￿excluding￿interest￿expenses.

Long-term￿debt￿obligations￿mainly￿relate￿to￿interest￿payments￿and￿the￿principal￿amount￿of￿our￿Eurobonds.￿See￿Note￿15.

Operating￿lease￿obligations￿include￿leases￿of￿equipment￿and￿facilities.￿Lease￿payments￿recognized￿as￿an￿expense
were￿EUR￿42.0￿million,￿EUR￿41.6￿million￿and￿EUR￿40.6￿million￿for￿the￿years￿ended￿December￿31,￿2013,￿2012￿and￿2011,
respectively.

Several￿operating￿leases￿for￿our￿buildings￿contain￿purchase￿options,￿exercisable￿at￿the￿end￿of￿the￿lease,￿and￿in￿some
cases,￿during￿the￿term￿of￿the￿lease.￿The￿amounts￿to￿be￿paid￿if￿ASML￿would￿exercise￿these￿purchase￿options￿at￿the￿end
of￿the￿lease￿as￿of￿December￿31,￿2013￿can￿be￿summarized￿as￿follows:

Purchase options due by period
(in￿thousands)
Purchase￿options

Total
EUR
13,983

1 year
EUR
-

2 year
EUR
-

3 year
EUR
13,983

4 year
EUR
-

5 year
EUR
-

After 5
years
EUR
-

Purchase￿obligations￿include￿purchase￿commitments￿with￿suppliers￿in￿the￿ordinary￿course￿of￿business.￿ASML￿expects
that￿it￿will￿honor￿these￿purchase￿obligations￿to￿fulfill￿future￿sales,￿in￿line￿with￿the￿timing￿of￿those￿future￿sales.￿The
general￿terms￿and￿conditions￿of￿the￿agreements￿relating￿to￿the￿major￿part￿of￿our￿purchase￿commitments￿as￿of￿December
31,￿2013￿contain￿clauses￿that￿enables￿us￿to￿delay￿or￿cancel￿delivery￿of￿ordered￿goods￿and￿services￿up￿to￿the￿dates
specified￿in￿the￿corresponding￿purchase￿contracts.￿These￿terms￿and￿conditions￿that￿we￿have￿agreed￿with￿our￿supply
chain￿partners￿gives￿us￿additional￿flexibility￿to￿adapt￿our￿purchase￿obligations￿to￿our￿requirements￿in￿light￿of￿the￿inherent
cyclicality￿of￿the￿semiconductor￿equipment￿industry￿in￿which￿we￿operate.￿We￿establish￿a￿provision￿for￿cancellation￿fees
when￿it￿is￿probable￿that￿the￿liability￿has￿been￿incurred￿and￿the￿amount￿of￿cancellation￿fees￿is￿reasonably￿estimable.

18. Employee Benefits
Our￿bonus￿expenses￿for￿the￿Board￿of￿Management￿(including￿Mr.￿Nickl￿and￿Mr.￿Meurice)￿and￿senior￿management￿were
as￿follows:

Year ended December 31
(in thousands)

2013
EUR

2012
EUR

2011
EUR

Bonus￿expenses

32,698

16,474

15,557

Bonus￿expenses￿include￿an￿amount￿of￿EUR￿2.1￿million￿(2012:￿EUR￿1.8￿million;￿2011:￿EUR￿1.7￿million)￿in￿relation￿to￿the
STI￿cash￿bonus￿for￿our￿Board￿of￿Management,￿Mr.￿Nickl￿and￿Mr.￿Meurice.

ASML￿ANNUAL￿REPORT￿2013

F-32

We￿have￿a￿performance￿related￿bonus￿plan￿for￿senior￿management,￿who￿are￿not￿members￿of￿the￿Board￿of￿Management.
Under￿this￿plan,￿the￿bonus￿amount￿is￿dependent￿on￿actual￿performance￿against￿corporate,￿departmental￿and￿personal
targets.￿Within￿ASML￿the￿bonus￿for￿members￿of￿senior￿management￿can￿range￿between￿0.0￿percent￿and￿40.0￿percent,
or￿0.0￿percent￿and￿70.0￿percent,￿of￿their￿annual￿salaries,￿depending￿upon￿their￿seniority.￿The￿performance￿targets￿are
set￿for￿each￿half￿year.￿The￿bonus￿over￿the￿first￿half￿of￿2013￿was￿paid￿in￿the￿second￿half￿of￿2013.￿The￿bonus￿over￿the
second￿half￿of￿2013￿is￿accrued￿for￿in￿the￿Consolidated￿Balance￿Sheets￿as￿of￿December￿31,￿2013￿and￿is￿expected￿to￿be
paid￿in￿the￿first￿quarter￿of￿2014.￿As￿a￿result￿of￿the￿acquisition￿of￿Cymer,￿we￿assumed￿all￿existing￿bonus￿plans￿eligible￿to
Cymer￿employees.￿Within￿Cymer￿bonuses￿can￿range￿between￿0.0￿percent￿and￿150.0￿percent,￿or￿0.0￿percent￿and￿200.0
percent￿of￿the￿relevant￿employee's￿annual￿salary,￿depending￿upon￿such￿employee's￿seniority￿and￿respective￿division.
The￿performance￿targets￿are￿set￿for￿a￿whole￿year.￿The￿bonus￿over￿2013￿is￿accrued￿for￿in￿the￿Consolidated￿Balance
Sheets￿as￿of￿December￿31,￿2013￿and￿is￿expected￿to￿be￿paid￿in￿the￿first￿quarter￿of￿2014.

Our￿bonus￿costs￿under￿these￿plans￿were￿as￿follows:

Year ended December 31
(in thousands)

2013
EUR

2012
EUR

2011
EUR

Bonus￿expenses

30,631

14,588

13,131

The￿increase￿in￿bonus￿costs￿in￿2013￿compared￿to￿2012￿is￿mainly￿attributable￿to￿the￿acquisition￿of￿Cymer.

Profit-sharing Plan
We￿have￿a￿profit-sharing￿plan￿covering￿all￿European￿and￿US￿non-sales￿employees￿who￿are￿not￿members￿of￿the￿Board
of￿Management￿or￿senior￿management.￿Under￿the￿plan,￿eligible￿employees￿receive￿an￿annual￿profit-sharing,￿based￿on
a￿percentage￿of￿net￿income￿relative￿to￿sales￿ranging￿from￿0.0￿to￿20.0￿percent￿of￿their￿annual￿salary.￿The￿profit￿sharing
for￿the￿years￿2013,￿2012￿and￿2011￿was￿14.0￿percent￿or￿EUR￿55.9￿million,￿18.0￿percent￿or￿EUR￿64.5￿million￿and￿20.0
percent￿or￿EUR￿64.0￿million,￿respectively.￿Our￿profit￿is￿also￿one￿of￿the￿criteria￿for￿the￿individual￿variable￿pay￿programs￿for
employees￿in￿Asia￿and￿employees￿eligible￿to￿the￿sales￿reward￿plan￿which￿amount￿to￿EUR￿25.8￿million￿for￿2013￿(including
EUR￿2.3￿million￿for￿the￿sales￿reward￿plan),￿EUR￿24.4￿million￿for￿2012￿and￿EUR￿23.2￿million￿for￿2011.

Share-based Compensation
We￿have￿adopted￿various￿share￿(option)￿plans￿for￿our￿employees.￿Each￿year,￿the￿Board￿of￿Management￿determines,
by￿category￿of￿our￿personnel,￿the￿total￿available￿number￿of￿stock￿options￿and￿maximum￿number￿of￿shares￿that￿can￿be
granted￿in￿that￿year.￿The￿determination￿is￿subject￿to￿the￿approval￿of￿our￿Supervisory￿Board.￿For￿members￿of￿the￿Board
of￿Management,￿we￿have￿separate￿share-based￿payment￿plans,￿for￿details￿on￿service￿and￿vesting￿conditions￿see￿below.
Our￿current￿share-based￿payment￿plans￿do￿not￿provide￿cash￿settlement￿of￿options￿and￿shares.￿￿

The￿total￿gross￿amount￿of￿recognized￿compensation￿expenses￿associated￿with￿share-based￿payments￿(including
share-based￿payments￿to￿the￿Board￿of￿Management)￿was￿EUR￿52.4￿million￿in￿2013,￿EUR￿18.7￿million￿in￿2012￿and￿EUR
12.4￿million￿in￿2011.￿Compensation￿expenses￿in￿2013￿included￿EUR￿25.2￿million￿relating￿to￿incurred￿post-acquisition
expenses￿for￿share-based￿compensation￿awards￿exchanged￿as￿part￿of￿the￿acquisition￿of￿Cymer,￿see￿Note￿2.￿Details
concerning￿the￿share￿(option)￿plans￿which￿have￿been￿adopted￿by￿ASML￿as￿part￿of￿the￿Cymer￿acquisition￿are￿included￿in
the￿tables￿below.￿The￿tax￿benefit￿recognized￿related￿to￿the￿recognized￿share-based￿compensation￿costs￿amounts￿to￿EUR
10.7￿million￿in￿2013,￿EUR￿0.9￿million￿in￿2012￿and￿EUR￿0.5￿million￿in￿2011.￿

Total￿compensation￿costs￿related￿to￿non-vested￿awards￿to￿be￿recognized￿in￿future￿periods￿amount￿to￿EUR￿78.9￿million
as￿per￿December￿31,￿2013￿(2012:￿EUR￿30.4￿million;￿2011:￿EUR￿23.3￿million).￿The￿weighted￿average￿period￿over￿which
these￿costs￿are￿expected￿to￿be￿recognized￿is￿calculated￿at￿1.6￿years￿(2012:￿2.0￿years;￿2011:￿1.9￿years).￿

Option Plans
Options￿granted￿under￿our￿stock￿option￿plans￿have￿fixed￿exercise￿prices￿equal￿to￿the￿closing￿price￿of￿our￿shares￿listed
at￿NYSE￿Euronext￿Amsterdam￿or￿our￿shares￿listed￿at￿NASDAQ￿on￿the￿applicable￿grant-dates.￿Granted￿stock￿options
generally￿vest￿over￿a￿three-year￿period￿with￿any￿unexercised￿stock￿options￿expiring￿ten￿years￿after￿the￿grant-date.
We￿have￿five￿different￿stock￿option￿plans:
• Employee￿plan
• Option￿purchase￿plan
• Brion￿stock￿option￿plan
• Cymer￿stock￿option￿plan
• Senior￿management￿plan￿(already￿vested)

ASML￿ANNUAL￿REPORT￿2013

F-33

The￿Option￿purchase￿plan￿has￿no￿service￿and￿vesting￿conditions.￿The￿other￿plans￿typically￿have￿a￿three￿to￿four￿year
service￿condition.￿The￿fair￿value￿of￿the￿stock￿options￿is￿determined￿using￿a￿Black-Scholes￿option￿valuation￿model.￿￿

The￿Black-Scholes￿option￿valuation￿of￿our￿stock￿options￿is￿based￿on￿the￿following￿assumptions:

Year ended December 31

Weighted￿average￿share￿price￿(in￿EUR)
Volatility￿(in￿percentage)
Expected￿life￿(in￿years)
Risk￿free￿interest￿rate
Expected￿dividend￿yield￿(in￿EUR)
Forfeiture￿rate1

2013

62.0
27.0
5.6
0.8
2.00
-

2012

40.3
25.6
5.0
2.1
1.45
-

2011

28.0
37.8
4.8
2.9
1.25
-

1

As￿of￿year￿end￿for￿each￿of￿the￿three￿years￿ended￿December￿31,￿forfeitures￿are￿estimated￿to￿be￿nil.

When￿establishing￿the￿expected￿life￿assumption￿we￿annually￿take￿into￿account￿the￿contractual￿terms￿of￿the￿stock
options￿as￿well￿as￿historical￿employee￿exercise￿behavior.￿

Other￿details￿with￿respect￿to￿stock￿options￿are￿set￿out￿in￿the￿following￿table:

Year ended December 31

2013

2012

2011

2013

2012

2011

EUR-
denominated

USD-
denominated

Weighted￿average￿fair￿value￿of￿stock￿options￿granted
Weighted￿average￿share￿price￿at￿the￿exercise￿date￿of￿stock￿options
Aggregate￿intrinsic￿value￿of￿stock￿options￿exercised￿(in￿thousands)
Aggregate￿remaining￿contractual￿term￿of￿currently￿exercisable￿options￿(years)
Aggregate￿intrinsic￿value￿of￿exercisable￿stock￿options￿(in￿thousands)
Aggregate￿intrinsic￿value￿of￿outstanding￿stock￿options￿(in￿thousands)

14.22
59.53
15,924
3.09
37,441
38,718

8.97
40.45
71,331
3.59
34,438
35,671

8.28
29.39
30,204
2.08
39,384
45,141

21.74
77.25
11,086
3.12
22,781
25,369

11.87
50.88
12,684
3.17
21,882
22,433

10.42
41.94
11,323
1.80
20,492
20,791

The￿number￿and￿weighted￿average￿exercise￿prices￿of￿stock￿options￿as￿of￿December￿31,￿2013,￿and￿changes￿during￿the
year￿then￿ended￿are￿presented￿below:

EUR-denominated

USD-denominated

Outstanding,￿January￿1,￿2013
Granted
Exercised
Forfeited
Expired
Outstanding, December 31, 2013
Exercisable,￿December￿31,￿2013

Number of
options
1,128,162
28,308
(358,581)
(4,234)
(11,353)
782,302
731,452

Weighted
average
exercise price
per ordinary
share (EUR)
16.38
58.35
15.12
20.27
10.11
18.55
16.85

Number of
options
494,836
101,400 1
(178,374)
(7,311)
(3,916)
406,635
325,026

Weighted
average
exercise price
per ordinary
share (USD)
19.06
60.86
14.86
23.81
11.33
31.31
23.61

1

USD-denominated￿grants￿include￿79,153￿options￿with￿a￿weighted￿average￿exercise￿price￿of￿USD￿53.07￿which￿have￿been￿assumed￿by￿ASML￿as￿part￿of
the￿acquisition￿of￿Cymer.

ASML￿ANNUAL￿REPORT￿2013

F-34

Details￿with￿respect￿to￿the￿stock￿options￿outstanding￿are￿set￿out￿in￿the￿following￿table:

EUR-denominated

USD-denominated

Range of exercise
prices (EUR)
0￿-￿10
10￿-￿15
15￿-￿20
20￿-￿25
25￿-￿40
40￿-￿50
50￿-￿60
60￿-￿70
70￿-￿80
80￿-￿90
Total

Number of
outstanding options
at December 31, 2013
-
380,681
185,086
141,192
24,843
25,256
6,156
19,088
-
-
782,302

Weighted average
remaining contractual
life of outstanding
options (years)
-
2.36
3.11
4.05
7.76
8.80
9.17
9.76
-
-
3.46

Range of exercise
prices (USD)
0￿-￿10
10￿-￿15
15￿-￿20
20￿-￿25
25￿-￿40
40￿-￿50
50￿-￿60
60￿-￿70
70￿-￿80
80￿-￿90
Total

Number of
outstanding options
at December 31, 2013
20,560
133,117
4,311
80,019
93,456
1,468
9,540
1,383
43,993
18,788
406,635

Weighted average
remaining contractual
life of outstanding
options (years)
1.97
0.90
4.80
3.92
5.72
7.70
8.71
9.07
9.14
9.78
4.23

In￿2013,￿2012￿and￿2011,￿only￿repurchased￿shares￿were￿used￿to￿satisfy￿the￿option￿rights￿upon￿exercise.￿For￿more
information￿with￿respect￿to￿repurchased￿shares￿we￿refer￿to￿Note￿27.￿

Share￿Plans
Shares￿granted￿under￿our￿share￿plans￿include￿a￿three￿to￿four￿year￿service￿period￿and￿for￿some￿plans￿performance
conditions.￿The￿fair￿value￿of￿shares￿is￿determined￿based￿on￿the￿closing￿trading￿price￿of￿our￿shares￿listed￿at￿NYSE
Euronext￿Amsterdam￿on￿the￿grant￿date.

We￿have￿eight￿different￿share￿plans:
• Employee￿plan
• Cymer￿employee￿plan
• Share￿purchase￿plan
• New￿hire￿performance￿share￿plan
• Brion￿performance￿share￿plan
• Cymer￿performance￿share￿plan
• Senior￿management￿performance￿share￿plan
• Board￿of￿management￿performance￿share￿plan￿

The￿Share￿purchase￿plan￿has￿no￿service￿and￿vesting￿conditions.￿The￿employee￿plans￿only￿have￿service￿conditions.￿The
other￿plans￿have￿service￿conditions￿which￿are￿similar￿and￿have￿vesting￿conditions￿which￿are￿based￿on￿performance.

Details￿with￿respect￿to￿shares￿are￿set￿out￿in￿the￿following￿table:

Year ended December 31

2013

2012

2011

2013

2012

2011

EUR-
denominated

USD-
denominated

Total￿fair￿value￿at￿vesting￿date￿of￿shares￿vested￿during￿the￿year￿(in￿thousands)
Weighted￿average￿fair￿value￿of￿shares￿granted

38,280
55.83

16,179
36.15

9,155
28.09

51,798
83.58

5,392
47.71

1,956
39.00

ASML￿ANNUAL￿REPORT￿2013

F-35

A￿summary￿of￿the￿status￿of￿conditionally￿outstanding￿shares￿as￿of￿December￿31,￿2013,￿and￿changes￿during￿the￿year
ended￿December￿31,￿2013,￿is￿presented￿below:

EUR-denominated

USD-denominated

Conditional shares outstanding at January 1, 2013
Granted
Vested/Issued
Forfeited
Conditional shares outstanding at December 31, 2013

Number of
shares
1,693,610
548,786
(635,753)
(62,311)
1,544,332

Weighted
average
fair value at
grant date
(EUR)
29.92
55.83
26.94
33.40
40.21

Number of
shares
249,094
1,852,320 1
(628,802)
(92,292)
1,380,320

Weighted
average
fair value at
grant date
(USD)
40.71
83.58
76.12
78.94
79.55

1

USD-denominated￿grants￿include￿1,634,990￿shares￿with￿a￿weighted￿average￿fair￿value￿of￿USD￿83.94￿which￿have￿been￿assumed￿by￿ASML￿as￿part￿of
the￿acquisition￿of￿Cymer.

Other Plans
Employee Purchase Plan
Every￿quarter,￿we￿offer￿our￿worldwide￿payroll￿employees￿the￿opportunity￿to￿buy￿our￿shares￿or￿our￿stock￿options￿against
fair￿value￿out￿of￿their￿net￿salary.￿The￿fair￿value￿for￿shares￿is￿determined￿based￿on￿the￿closing￿price￿of￿our￿shares￿listed￿at
NYSE￿Euronext￿Amsterdam￿on￿the￿grant-date.￿The￿fair￿value￿of￿the￿stock￿options￿is￿determined￿using￿a￿Black-Scholes
option￿valuation￿model.￿For￿the￿assumptions￿on￿which￿the￿Black-Scholes￿option￿valuation￿model￿is￿used,￿see￿the
disclosure￿above￿under￿the￿caption￿"Option￿Plans".￿The￿maximum￿net￿amount￿for￿which￿employees￿can￿participate￿in
the￿plan￿amounts￿to￿10.0￿percent￿of￿gross￿base￿salary.￿When￿employees￿retain￿the￿shares￿and/or￿stock￿options￿for￿a
minimum￿of￿12￿months,￿we￿will￿pay￿out￿a￿20.0￿percent￿cash￿bonus￿on￿the￿net￿invested￿amount.

Deferred Compensation Plans
In￿July￿2002,￿we￿adopted￿a￿non-qualified￿deferred￿compensation￿plan￿for￿our￿United￿States￿employees￿that￿allows
a￿select￿group￿of￿management￿or￿highly￿compensated￿employees￿to￿defer￿a￿portion￿of￿their￿salary,￿bonus,￿and
commissions.￿The￿plan￿allows￿us￿to￿credit￿additional￿amounts￿to￿the￿participants’￿account￿balances.￿The￿participants
divide￿their￿funds￿among￿the￿investments￿available￿in￿the￿plan.￿Participants￿elect￿to￿receive￿their￿funds￿in￿future
periods￿after￿the￿earlier￿of￿their￿employment￿termination￿or￿their￿withdrawal￿election,￿at￿least￿three￿years￿after￿deferral.
There￿were￿minor￿expenses￿relating￿to￿this￿plan￿in￿2013,￿2012￿and￿2011.￿Cymer￿has￿a￿similar￿non-qualified￿deferred
compensation￿plan￿for￿a￿selected￿group￿of￿management￿level￿employees￿in￿the￿United￿States￿in￿which￿the￿employee
may￿elect￿to￿defer￿receipt￿of￿current￿compensation￿from￿us￿in￿order￿to￿provide￿retirement￿and￿other￿benefits￿on￿behalf￿of
such￿employee￿backed￿by￿Cymer￿owned￿life￿insurance￿policies.

As￿of￿December￿31,￿2013,￿and￿2012,￿our￿liability￿under￿deferred￿compensation￿plans￿was￿EUR￿23.5￿million￿and￿EUR￿11.8
million,￿respectively.

Pension Plans
We￿maintain￿various￿pension￿plans￿covering￿substantially￿all￿of￿our￿employees.￿Our￿employees￿in￿the￿Netherlands,
5,525￿FTEs,￿participate￿in￿a￿multi-employer￿union￿plan￿(PME)￿determined￿in￿accordance￿with￿the￿collective￿bargaining
agreements￿effective￿for￿the￿industry￿in￿which￿we￿operate.￿This￿collective￿bargaining￿agreement￿has￿no￿expiration
date.￿This￿multi-employer￿union￿plan￿covers￿approximately￿1,296￿companies￿and￿approximately￿146,000￿contributing
members.￿Our￿contribution￿to￿the￿multi-employer￿union￿plan￿is￿less￿than￿5.0￿percent￿of￿the￿total￿contribution￿to￿the￿plan
as￿per￿the￿annual￿report￿for￿the￿year￿ended￿December￿31,￿2012.￿The￿plan￿monitors￿its￿risks￿on￿a￿global￿basis,￿not￿by
company￿or￿employee,￿and￿is￿subject￿to￿regulation￿by￿Dutch￿governmental￿authorities.￿By￿law￿(the￿Dutch￿Pension￿Act),￿a
multi-employer￿union￿plan￿must￿be￿monitored￿against￿specific￿criteria,￿including￿the￿coverage￿ratio￿of￿the￿plan's￿assets
to￿its￿obligations.￿This￿coverage￿ratio￿must￿exceed￿104.3￿percent￿for￿the￿total￿plan.￿Every￿company￿participating￿in￿a
Dutch￿multi-employer￿union￿plan￿contributes￿a￿premium￿calculated￿as￿a￿percentage￿of￿its￿total￿pensionable￿salaries,
with￿each￿company￿subject￿to￿the￿same￿percentage￿contribution￿rate.￿The￿premium￿can￿fluctuate￿yearly￿based￿on￿the
coverage￿ratio￿of￿the￿multi-employer￿union￿plan.￿The￿pension￿rights￿of￿each￿employee￿are￿based￿upon￿the￿employee's
average￿salary￿during￿employment.

ASML￿ANNUAL￿REPORT￿2013

F-36

In￿2009,￿because￿of￿a￿low￿coverage￿ratio,￿PME￿prepared￿and￿executed￿a￿so-called￿"Recovery￿Plan"￿which￿was
approved￿by￿De￿Nederlandsche￿Bank.￿Under￿the￿terms￿of￿the￿recovery￿plan,￿which￿terminated￿at￿the￿end￿of￿2013,￿a
minimal￿coverage￿percentage￿of￿104.3￿percent￿was￿required.￿The￿coverage￿percentage￿of￿the￿multi-employer￿union
plan￿increased￿to￿103.4￿percent￿as￿of￿December￿31,￿2013￿(December￿31,￿2012:￿93.9￿percent),￿which￿is￿below￿the
requirements￿as￿set￿out￿in￿the￿recovery￿plan.￿However￿we￿have￿no￿obligation￿whatsoever￿to￿pay￿off￿any￿deficits￿the
pension￿fund￿may￿incur,￿nor￿have￿we￿any￿claim￿to￿any￿potential￿surpluses.￿The￿coverage￿percentage￿is￿calculated￿by
dividing￿the￿funds￿capital￿by￿the￿total￿sum￿of￿pension￿liabilities￿and￿is￿based￿on￿actual￿market￿interest.￿In￿2014￿the
pension￿premium￿percentage￿will￿increase￿from￿24.0￿to￿24.1.

Our￿net￿periodic￿pension￿cost￿for￿this￿multi-employer￿union￿plan￿for￿any￿period￿is￿the￿amount￿of￿the￿required￿contribution
for￿that￿period.

We￿also￿participate￿in￿several￿defined￿contribution￿pension￿plans,￿with￿our￿expenses￿for￿these￿plans￿equaling￿the
contributions￿made￿in￿the￿relevant￿period.

Our￿pension￿and￿retirement￿expenses￿for￿all￿employees￿for￿the￿three￿years￿ended￿December￿31,￿2013,￿2012￿and￿2011
were:

Year ended December 31
(in thousands)

Pension￿plan￿based￿on￿multi-employer￿union￿plan
Pension￿plans￿based￿on￿defined￿contribution

Pension and retirement expenses

2013
EUR

40,476
19,799

60,275

2012
EUR

34,525
15,773

50,298

2011
EUR

31,819
14,128

45,947

19. Legal Contingencies
ASML￿is￿party￿to￿various￿legal￿proceedings￿generally￿incidental￿to￿our￿business.￿ASML￿also￿faces￿exposures￿from
other￿actual￿or￿potential￿claims￿and￿legal￿proceedings.￿In￿addition,￿ASML's￿customers￿may￿be￿subject￿to￿claims￿of
infringement￿from￿third￿parties￿alleging￿that￿the￿ASML￿equipment￿used￿by￿those￿customers￿in￿the￿manufacture￿of
semiconductor￿products,￿and/or￿the￿methods￿relating￿to￿use￿of￿the￿ASML￿equipment,￿infringes￿one￿or￿more￿patents
issued￿to￿those￿third￿parties.￿If￿these￿claims￿were￿successful,￿ASML￿could￿be￿required￿to￿indemnify￿such￿customers￿for
some￿or￿all￿of￿the￿losses￿incurred￿or￿damages￿assessed￿against￿them￿as￿a￿result￿of￿that￿infringement.

We￿accrue￿for￿legal￿costs￿related￿to￿litigation￿in￿our￿Consolidated￿Statements￿of￿Operations￿at￿the￿time￿when￿the￿related
legal￿services￿are￿actually￿provided￿to￿ASML.￿In￿2013,￿EUR￿3.2￿million￿estimated￿losses￿were￿recorded￿as￿a￿charge￿to
our￿Consolidated￿Statements￿of￿Operations￿(2012￿and￿2011:￿no￿estimated￿losses￿were￿recorded).

From￿late￿2001￿through￿2004,￿ASML￿was￿party￿to￿a￿series￿of￿civil￿litigations￿and￿administrative￿proceedings￿in￿which
Nikon￿alleged￿ASML’s￿infringement￿of￿Nikon￿patents￿relating￿to￿lithography.￿ASML￿in￿turn￿filed￿claims￿against￿Nikon.
Pursuant￿to￿agreements￿executed￿on￿December￿10,￿2004,￿ASML￿and￿Nikon￿agreed￿to￿settle￿all￿pending￿worldwide
patent￿litigation￿between￿the￿companies.￿The￿settlement￿included￿an￿exchange￿of￿releases,￿a￿patent￿Cross-License
agreement￿related￿to￿lithography￿equipment￿used￿to￿manufacture￿semiconductor￿devices￿and￿payments￿to￿Nikon￿by
ASML.￿Beginning￿on￿January￿1,￿2015,￿the￿parties￿may￿bring￿suit￿for￿infringement￿of￿patents￿subject￿to￿the￿Nikon￿Cross-
License￿Agreement,￿including￿any￿infringement￿that￿occurred￿during￿the￿Cross-License￿Transition￿Period.￿Damages
resulting￿from￿claims￿for￿patent￿infringement￿occurring￿during￿the￿Cross-License￿Transition￿Period￿are￿limited￿to￿three
percent￿of￿the￿net￿sales￿price￿of￿products￿found￿to￿infringe￿valid￿and￿enforceable￿patents.

ASML￿ANNUAL￿REPORT￿2013

F-37

20. Income Taxes
The￿components￿of￿the￿provision￿for￿income￿taxes￿are￿as￿follows:

Year ended December 31
(in thousands)

Current tax
Deferred tax
Provision for income taxes

2013
EUR

(52,753)
44,766
(7,987)

2012
EUR

(79,255)
74,993
(4,262)

2011
EUR

(129,127)
(52,548)
(181,675)

The￿Dutch￿statutory￿tax￿rate￿was￿25.0￿percent￿in￿2013,￿2012￿and￿2011.￿Tax￿amounts￿in￿other￿jurisdictions￿are￿calculated
at￿the￿rates￿prevailing￿in￿the￿relevant￿jurisdictions.

The￿reconciliation￿of￿the￿provision￿for￿income￿taxes￿is￿as￿follows:

Year ended December 31
(in thousands)

2013
EUR

%

2012
EUR

%

2011
EUR

Income￿tax￿provision￿based￿on￿ASML's￿domestic￿rate
Effects￿of￿tax￿rates￿in￿foreign￿jurisdictions
Adjustments￿in￿respect￿of￿tax￿exempt￿income
Adjustments￿in￿respect￿of￿tax￿incentives
Adjustments￿in￿respect￿of￿prior￿years'￿current￿taxes
Adjustments￿in￿respect￿of￿prior￿years'￿deferred￿taxes
Movements￿in￿the￿liability￿for￿unrecognized￿tax￿benefits
Adjustment￿in￿respect￿of￿non-taxable￿pre-existing￿relationship
Other￿credits￿and￿non-taxable￿items
Provision for income taxes

Income before income taxes 1,023,477
(255,869)
23,459
29,430
120,751
5,155
16,164
(7,588)
67,730
(7,219)
(7,987)

100.0 1,150,578
(287,644)
9,786
23,532
143,160
18,275
-
95,465
-
(6,836)
(4,262)

25.0
(2.3)
(2.9)
(11.7)
(0.5)
(1.6)
0.7
(6.6)
0.7
0.8

100.0 1,648,635
(412,159)
20,663
19,134
180,096
9,097
-
6,634
-
(5,140)
(181,675)

25.0
(0.9)
(2.0)
(12.4)
(1.6)
-
(8.3)
-
0.6
0.4

%

100.0
25.0
(1.3)
(1.2)
(10.9)
(0.6)
-
(0.4)
-
0.4
11.0

Income Tax Provision Based on ASML's Domestic Rate
The￿provision￿for￿income￿taxes￿based￿on￿ASML's￿domestic￿rate￿is￿based￿on￿the￿Dutch￿statutory￿income￿tax￿rate.￿It
reflects￿the￿provision￿for￿income￿taxes￿that￿would￿have￿been￿applicable￿assuming￿that￿all￿of￿our￿income￿is￿taxable
against￿the￿Dutch￿statutory￿tax￿rate￿and￿there￿were￿no￿permanent￿differences￿between￿taxable￿base￿and￿financial￿results
and￿no￿Dutch￿tax￿incentives￿are￿applied.

Effects of Tax Rates in Foreign Jurisdictions
A￿portion￿of￿ASML’s￿results￿are￿realized￿in￿countries￿other￿than￿the￿Netherlands￿where￿different￿tax￿rates￿are￿applicable.
The￿increase￿of￿the￿effects￿of￿tax￿rates￿in￿foreign￿jurisdictions￿compared￿to￿2012￿is￿mainly￿explained￿by￿a￿shift￿in￿the￿mix
of￿taxable￿income￿across￿tax￿jurisdictions￿as￿a￿result￿of￿the￿acquisition￿of￿Cymer￿as￿per￿May￿30,￿2013.

Adjustments in Respect of Tax Exempt Income
In￿certain￿jurisdictions￿part￿of￿the￿income￿generated￿is￿tax￿exempted.

Adjustments in Respect of Tax Incentives
Adjustments￿in￿respect￿of￿tax￿incentives￿relate￿to￿reduced￿tax￿rates￿in￿several￿jurisdictions,￿mainly￿consisting￿of￿the
Dutch￿"Innovation￿Box"￿and￿the￿RDA.￿The￿Innovation￿box￿is￿a￿facility￿under￿Dutch￿corporate￿tax￿law￿pursuant￿to￿which
income￿associated￿with￿R&D￿is￿partially￿exempted￿from￿taxation.￿The￿RDA￿is￿a￿tax￿incentive￿in￿which￿an￿additional￿tax
depreciation￿is￿allowed￿for￿tangible￿assets￿utilized￿for￿research￿and￿development￿purposes.

Adjustments in Respect of Prior Years’ Current Taxes
In￿2012,￿we￿recognized￿a￿tax￿benefit￿of￿EUR￿18.3￿million￿or￿1.6￿percent￿of￿income￿before￿taxes￿mainly￿attributable￿to￿the
application￿of￿tax￿exemptions￿for￿prior￿years,￿which￿had￿a￿favorable￿effect￿on￿the￿effective￿tax￿rate￿for￿2012.

Adjustments in Respect of Prior Years’ Deferred Taxes
In￿2013,￿we￿recognized￿a￿tax￿benefit￿of￿EUR￿16.2￿million￿as￿result￿of￿a￿partly￿release￿of￿a￿valuation￿allowance￿for￿NID
credits￿or￿NID￿stock￿to￿the￿extend￿we￿expect￿future￿taxable￿profits￿to￿realize￿these￿NID￿credits￿before￿expiration￿of￿those
credits.

ASML￿ANNUAL￿REPORT￿2013

F-38

Movements in the Liability for Unrecognized Tax Benefits
In￿2012,￿the￿effective￿tax￿rate￿was￿impacted￿by￿a￿tax￿benefit￿of￿EUR￿95.5￿million￿or￿8.3￿percent￿of￿income￿before￿income
taxes￿mainly￿as￿a￿result￿of￿the￿successful￿conclusion￿of￿tax￿audits￿in￿different￿jurisdictions￿(EUR￿92.5￿million)￿whereas
the￿movement￿in￿the￿liability￿for￿unrecognized￿tax￿benefits￿in￿2013￿is￿considered￿to￿be￿limited.

Adjustments in Respect of Non-Taxable Pre-Existing Relationships
In￿2013￿the￿effective￿tax￿rate￿was￿impacted￿by￿the￿settlement￿gain￿recognized￿as￿a￿result￿of￿the￿effectively￿settled￿pre-
existing￿relationships￿related￿to￿the￿acquisition￿of￿Cymer￿(see￿Note￿2)￿as￿this￿gain￿does￿not￿represent￿a￿taxable￿item￿for
income￿tax￿purposes.

Other Credits and Non-taxable Items
Other￿credits￿and￿non-taxable￿items￿reflect￿the￿impact￿on￿statutory￿rates￿of￿permanent￿non-taxable￿items￿such￿as￿non-
deductible￿taxes,￿non-deductible￿interest￿expense,￿and￿non-deductible￿meals￿and￿entertainment￿expenses,￿as￿well￿as
the￿impact￿of￿(the￿reversal￿of)￿various￿tax￿credits￿on￿our￿provision￿for￿income￿taxes.

Income Taxes Recognized Directly in Shareholders' Equity
Income￿taxes￿recognized￿directly￿in￿shareholders'￿equity￿(including￿OCI)￿are￿as￿follows:

Income tax recognized in shareholders' equity
(in thousands)
Current tax
Derivative￿financial￿instruments1
Tax￿(benefit)￿deficit￿from￿share-based￿payments
Total income tax recognized in shareholders' equity

2013
EUR

(759)
(3,110)
(3,869)

2012
EUR

(1,066)
(2,116)
(3,182)

2011
EUR

6,257
11
6,268

1

Recognized￿directly￿in￿OCI.

Liability for Unrecognized Tax Benefits and Deferred Taxes
The￿total￿deferred￿tax￿position￿and￿liability￿for￿unrecognized￿tax￿benefits￿recorded￿on￿the￿Consolidated￿Balance￿Sheets
are￿as￿follows:

As of December 31
(in thousands)
Liability￿for￿unrecognized￿tax￿benefits
Deferred￿tax￿position
Total

2013
EUR
(74,069)
(30,176)
(104,245)

2012
EUR
(59,967)
114,527
54,560

Liability for Unrecognized Tax Benefits
The￿calculation￿of￿our￿liability￿for￿unrecognized￿tax￿benefits￿involves￿uncertainties￿in￿the￿application￿of￿complex￿tax
laws.￿Our￿estimate￿for￿the￿potential￿outcome￿of￿any￿uncertain￿tax￿issue￿is￿highly￿judgmental.￿We￿believe￿that￿we￿have
adequately￿provided￿for￿uncertain￿tax￿positions.￿However,￿settlement￿of￿these￿uncertain￿tax￿positions￿in￿a￿manner
inconsistent￿with￿our￿expectations￿could￿have￿a￿material￿impact￿on￿our￿Consolidated￿Financial￿Statements.

Consistent￿with￿the￿provisions￿of￿ASC￿740,￿as￿of￿December￿31,￿2013,￿ASML￿has￿a￿liability￿for￿unrecognized￿tax￿benefits
of￿EUR￿74.1￿million￿(2012:￿EUR￿60.0￿million)￿which￿is￿classified￿as￿non-current￿deferred￿and￿other￿tax￿liabilities.￿The￿total
liability￿for￿unrecognized￿tax￿benefits,￿if￿reversed,￿would￿have￿a￿favorable￿effect￿on￿our￿effective￿tax￿rate.

Expected￿interest￿and￿penalties￿related￿to￿income￿tax￿liabilities￿have￿been￿accrued￿for￿and￿are￿included￿in￿the￿liability￿for
unrecognized￿tax￿benefits￿and￿in￿the￿provision￿for￿income￿taxes.￿The￿balance￿of￿accrued￿interest￿and￿penalties￿recorded
in￿the￿Consolidated￿Balance￿Sheets￿as￿per￿December￿31,￿2013￿amounted￿to￿EUR￿22.9￿million￿(2012:￿EUR￿21.4￿million).
Accrued￿interest￿and￿penalties￿recorded￿in￿the￿Consolidated￿Statement￿of￿Operations￿of￿2013￿amounted￿to￿a￿tax￿charge
of￿EUR￿4.1￿million￿(2012:￿tax￿benefit￿of￿EUR￿3.1￿million;￿2011:￿tax￿benefit￿of￿EUR￿9.3￿million).

ASML￿ANNUAL￿REPORT￿2013

F-39

A￿reconciliation￿of￿the￿beginning￿and￿ending￿balance￿of￿the￿liability￿for￿unrecognized￿tax￿benefits￿is￿as￿follows:

As of December 31
(in thousands)

Balance,￿January￿1
Gross￿increases￿–￿tax￿positions￿in￿prior￿period
Gross￿decreases￿–￿tax￿positions￿in￿prior￿period
Gross￿increases￿–￿tax￿positions￿in￿current￿period
Increase￿resulting￿from￿acquisition
Settlements
Lapse￿of￿statute￿of￿limitations
Total liability for unrecognized tax benefits

2013
EUR

59,967
6,045
(2,025)
6,796
6,514
(2,964)
(264)
74,069

2012
EUR

155,432
4,297
(92,521)
3,255
-
-
(10,496)
59,967

For￿2012,￿the￿gross￿decreases￿in￿tax￿positions￿in￿prior￿period￿mainly￿relates￿to￿the￿release￿of￿tax￿positions￿after
successful￿conclusion￿of￿tax￿audits￿in￿different￿jurisdictions￿(EUR￿92.5￿million).

We￿believe￿our￿allowances￿for￿tax￿contingencies￿are￿appropriate.￿We￿estimate￿that￿the￿total￿liability￿for￿unrecognized
tax￿benefits￿will￿decrease￿by￿EUR￿0.6￿million￿within￿the￿next￿12￿months.￿The￿estimated￿changes￿to￿the￿liability￿for
unrecognized￿tax￿benefits￿within￿the￿next￿12￿months￿are￿mainly￿due￿to￿expected￿settlements￿with￿tax￿authorities.

We￿are￿subject￿to￿tax￿audits￿in￿certain￿of￿our￿major￿tax￿jurisdictions,￿for￿years￿from￿and￿including￿2011￿onwards￿in
Hong￿Kong,￿and￿for￿years￿from￿and￿including￿2001￿onwards￿in￿the￿United￿States.￿In￿the￿course￿of￿such￿audits,￿local￿tax
authorities￿may￿challenge￿the￿positions￿taken￿by￿us.￿

Deferred Tax Position
The￿changes￿in￿deferred￿income￿tax￿assets￿and￿liabilities￿consist￿of￿the￿following￿elements:

Changes in deferred tax assets and liabilities
(in thousands)
Balance, January 1
Acquisitions￿through￿business￿combinations
Consolidated￿Statements￿of￿Operations
Effect￿of￿changes￿in￿exchange￿rates
Balance, December 31

The￿deferred￿tax￿position￿is￿classified￿in￿the￿consolidated￿balance￿sheets￿as￿follows:

As of December 31
(in thousands)

Deferred￿tax￿assets￿–￿current
Deferred￿tax￿assets￿–￿non-current
Total deferred tax assets
Deferred￿tax￿liabilities￿–￿current
Deferred￿tax￿liabilities￿–￿non-current
Total deferred tax liabilities
Total

2013
EUR
114,527
(201,381)
53,084
3,594
(30,176)

2013
EUR

124,431
139,513
263,944
(3,494)
(290,626)
(294,120)
(30,176)

2012
EUR
137,946
-
(20,242)
(3,177)
114,527

2012
EUR

103,695
39,443
143,138
(271)
(28,340)
(28,611)
114,527

ASML￿ANNUAL￿REPORT￿2013

F-40

The￿composition￿of￿total￿deferred￿tax￿assets￿and￿liabilities￿in￿the￿Financial￿Statements￿is￿as￿follows:

Deferred tax assets
composition of temporary differences
(in thousands)
Capitalized￿R&D￿expenditures
Inventories
Deferred￿revenue
Provisions
Installation￿and￿warranty￿reserve
Tax￿effect￿carry-forward￿losses
Fixed￿assets
Restructuring￿and￿impairment
Alternative￿minimum￿tax￿credits1
Share-based￿payments
Other￿temporary￿differences
Total2

Acquisitions
through
business
combinations
EUR
-
10,258
41,679
7,148
-
754
4,140
-
-
9,365
16,701
90,045

Consolidated
Statements of
Operations
EUR
5,882
9,269
(43,035)
17,960
(174)
61,551
325
(791)
1,349
5,939
(14,487)
43,788

January 1,
2013
EUR
27,403
28,167
20,572
21,528
7,151
5,557
7,798
4,336
5,227
1,433
13,966
143,138

Effect of
changes in
exchange
rates
EUR
(1,155)
(1,033)
(2,807)
(1,176)
(275)
(580)
(478)
(184)
(234)
(586)
(4,519)
(13,027)

December 31,
2013
EUR
32,130
46,661
16,409
45,460
6,702
67,282
11,785
3,361
6,342
16,151
11,661
263,944

1
2

Alternative￿minimum￿tax￿credits￿relate￿to￿prepaid￿US￿taxes￿which￿are￿credited￿against￿future￿taxable￿profits￿after￿the￿carry-forward￿losses￿used.
Valuation￿allowances￿recognized￿in￿relation￿to￿deferred￿tax￿assets￿as￿at￿December￿31,￿2013￿amounted￿to￿EUR￿25.0￿million￿(2012:￿EUR￿30.5￿million)

Deferred tax liabilities
composition of temporary differences

January 1,
2013

Acquisitions
through
business
combinations

Consolidated
Statements of
Operations

Effect of
changes in
exchange
rates

December 31,
2013

(in thousands)
Intangible￿fixed￿assets
Fixed￿assets
Borrowing￿costs
Other￿temporary￿differences
Total

EUR
-
(25,890)
(1,958)
(763)
(28,611)

EUR
(286,337)
(4,786)
-
(303)
(291,426)

EUR
8,730
12,517
135
(12,086)
9,296

EUR
15,702
567
-
352
16,621

EUR
(261,905)
(17,592)
(1,823)
(12,800)
(294,120)

Deferred tax assets
composition of temporary differences
(in thousands)
Capitalized￿R&D￿expenditures
Inventories
Deferred￿revenue
Provisions
Installation￿and￿warranty￿reserve
Tax￿effect￿carry-forward￿losses
Fixed￿assets
Restructuring￿and￿impairment
Alternative￿minimum￿tax￿credits1
Share-based￿payments
Other￿temporary￿differences
Total

January 1,
2012
EUR
34,374
35,820
23,892
14,515
8,772
7,735
6,495
5,146
5,028
950
16,728
159,455

Consolidated
Statements of
Operations
EUR
(6,465)
(7,351)
(3,083)
7,296
(1,508)
(2,219)
1,454
(733)
229
516
(1,138)
(13,002)

Effect of
changes in
exchange rates
EUR
(506)
(302)
(237)
(283)
(113)
41
(151)
(77)
(30)
(33)
(1,624)
(3,315)

December 31,
2012
EUR
27,403
28,167
20,572
21,528
7,151
5,557
7,798
4,336
5,227
1,433
13,966
143,138

1

Alternative￿minimum￿tax￿credits￿relate￿to￿prepaid￿US￿taxes￿which￿are￿credited￿against￿future￿taxable￿profits￿after￿the￿carry-forward￿losses￿used.

Deferred tax liabilities
composition of temporary differences
(in thousands)
Fixed￿assets
Borrowing￿costs
Other￿temporary￿differences
Total

January 1,
2012
EUR
(19,108)
(1,554)
(847)
(21,509)

Consolidated
Statements of
Operations
EUR
(6,965)
(404)
129
(7,240)

Effect of
changes in
exchange rates
EUR
183
-
(45)
138

December 31,
2012
EUR
(25,890)
(1,958)
(763)
(28,611)

ASML￿ANNUAL￿REPORT￿2013

F-41

Tax Effect Carry-forward Losses
Deferred￿tax￿assets￿from￿carry-forward￿losses￿result￿predominantly￿from￿net￿operating￿loss￿carry-forwards￿incurred￿in
the￿United￿States￿and￿NID￿stock￿in￿Belgium.

Net￿operating￿losses￿qualifying￿as￿tax￿losses￿under￿United￿States￿federal￿tax￿laws￿were￿incurred￿during￿2013.￿Net
operating￿losses￿qualifying￿as￿tax￿losses￿under￿United￿States￿federal￿tax￿laws￿incurred￿by￿United￿States￿group
companies￿can￿in￿general￿be￿offset￿against￿future￿profits￿realized￿in￿the￿20￿years￿following￿the￿year￿in￿which￿the￿losses
are￿incurred.
Net￿operating￿losses￿qualified￿as￿tax￿losses￿under￿United￿States￿state￿tax￿laws￿incurred￿by￿United￿States￿group
companies￿can￿in￿general￿be￿offset￿against￿future￿profits￿realized￿in￿the￿5￿to￿20￿years￿following￿the￿year￿in￿which￿the
losses￿are￿incurred.￿The￿period￿of￿net￿operating￿loss￿carry￿forward￿for￿United￿States￿state￿tax￿purposes￿depends￿on￿the
state￿in￿which￿the￿tax￿loss￿arose.￿Our￿ability￿to￿use￿United￿States￿state￿tax￿loss￿carry￿forwards￿in￿existence￿at￿December
31,￿2013,￿is￿subject￿to￿varying￿state￿statutes￿(providing￿for￿periods￿of￿between￿5￿and￿20￿years)￿and￿valuation￿allowances
have￿been￿set￿up￿for￿state￿carry￿forward￿losses￿that￿are￿not￿expected￿to￿be￿realized￿before￿they￿expire.￿The￿total￿amount
of￿losses￿carried￿forward￿under￿United￿States￿federal￿tax￿laws￿as￿of￿December￿31,￿2013,￿is￿EUR￿67.5￿million￿tax￿basis
or￿EUR￿23.6￿million￿tax￿effect.The￿total￿amount￿of￿losses￿carried￿forward￿under￿United￿States￿state￿tax￿laws￿as￿of
December￿31,￿2013,￿is￿EUR￿254.3￿million￿tax￿basis￿or￿EUR￿7.9￿million￿tax￿effect.

NID￿stock￿in￿Belgium￿can￿generally￿be￿offset￿against￿future￿profits￿realized￿in￿the￿7￿years￿following￿the￿year￿in￿which￿the
NID￿Stock￿occurs.￿The￿total￿amount￿of￿NID￿stock￿is￿EUR￿47.6￿million￿taxable￿base￿and￿EUR￿16.2￿million￿tax￿effect.

ASML￿ANNUAL￿REPORT￿2013

F-42

21. Segment Disclosure
ASML￿has￿one￿reportable￿segment,￿for￿the￿development,￿production,￿marketing,￿sale￿and￿servicing￿of￿advanced
semiconductor￿equipment￿systems￿exclusively￿consisting￿of￿lithography￿related￿systems.￿In￿prior￿years￿our￿CEO￿was
identified￿as￿CODM.￿As￿a￿result￿of￿ASML's￿change￿in￿leadership￿as￿announced￿on￿April￿17,￿2013,￿our￿CEO￿and￿CTO
have￿been￿jointly￿identified￿as￿the￿CODM.￿Both￿the￿CEO￿and￿CTO￿review￿the￿operating￿results￿to￿make￿decisions￿about
allocating￿resources￿and￿assessing￿performance.￿The￿change￿in￿leadership￿did￿not￿result￿in￿a￿change￿in￿reportable
segments￿compared￿to￿2012.

Management￿reporting￿includes￿net￿system￿sales￿figures￿of￿new￿and￿used￿systems￿and￿includes￿sales￿per￿technology.
Net￿system￿sales￿for￿new￿and￿used￿systems￿were￿as￿follows:

Year ended December 31
(in thousands)

2013
EUR

2012
EUR

2011
EUR

New￿systems
Used￿systems

3,890,154
102,975

3,620,260
181,372

4,780,720
103,193

Net system sales

3,993,129

3,801,632

4,883,913

The￿increase￿in￿net￿system￿sales￿of￿EUR￿191.5￿million,￿or￿5.0￿percent,￿to￿EUR￿3,993.1￿million￿in￿2013￿from￿EUR￿3,801.6
million￿in￿2012￿is￿mainly￿caused￿by￿an￿increased￿ASP￿which￿more￿than￿offsets￿the￿lower￿amount￿of￿systems￿sold.

Net￿system￿sales￿per￿technology￿was￿as￿follows:

Year ended December 31
(in thousands)
2013
EUV
ArFi
ArF￿dry
KrF
I-line
Total

2012
EUV
ArFi
ArF￿dry
KrF
I-line
Total

2011
EUV
ArFi
ArF￿dry
KrF
I-line
Total

Net system sales
in units

Net system sales
in EUR

1
77
2
64
13
157

1
72
4
78
15
170

3
101
11
87
20
222

60,100
3,120,719
38,019
720,053
54,238
3,993,129

43,700
2,715,221
81,428
908,244
53,039
3,801,632

119,300
3,549,122
228,909
926,572
60,010
4,883,913

For￿geographical￿reporting,￿net￿sales￿are￿attributed￿to￿the￿geographic￿location￿in￿which￿the￿customers’￿facilities￿are
located.￿Long-lived￿assets￿are￿attributed￿to￿the￿geographic￿location￿in￿which￿these￿assets￿are￿located.

We￿have￿re-evaluated￿the￿risk￿and￿uncertainties￿associated￿with￿our￿geographic￿areas.￿This￿resulted￿in￿a￿definition
change￿of￿"Long-lived￿assets"￿included￿in￿the￿geographical￿reporting￿disclosure.￿As￿of￿December￿31,￿2013￿Long-lived
assets￿only￿consist￿of￿Property,￿Plant￿and￿Equipment.￿We￿have￿adjusted￿our￿prior￿period￿amounts￿for￿comparability
reasons.￿None￿of￿these￿changes￿impact￿our￿previously￿reported￿consolidated￿total￿net￿sales,￿gross￿profit,￿income￿from
operations,￿net￿income￿or￿earnings￿per￿share.

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Net￿sales￿and￿long-lived￿assets￿(consisting￿of￿property,￿plant￿and￿equipment)￿by￿geographic￿region￿were￿as￿follows:

Year ended December 31
(in thousands)
2013
Japan
Korea
Singapore
Taiwan
Rest￿of￿Asia
Netherlands
Rest￿of￿Europe
United￿States
Total

2012
Japan
Korea
Singapore
Taiwan
Rest￿of￿Asia
Netherlands
Rest￿of￿Europe
United￿States
Total

2011
Japan
Korea
Singapore
Taiwan
Rest￿of￿Asia
Netherlands
Rest￿of￿Europe
United￿States
Total

Net sales
EUR

201,664
1,286,509
139,313
2,221,426
478,234
11,525
187,030
719,625
5,245,326

292,309
1,276,304
98,554
1,479,768
197,262
-
256,192
1,131,166
4,731,555

405,595
1,318,777
436,308
1,146,601
450,796
-
505,129
1,387,829
5,651,035

Long-lived
assets
EUR

3,340
16,155
1,109
48,427
3,742
969,192
2,600
173,275
1,217,840

19,585
17,664
968
50,372
2,073
869,736
1,571
67,954
1,029,923

69,001
16,250
1,167
46,418
1,496
851,612
1,198
66,468
1,053,610

In￿2013,￿net￿sales￿to￿the￿largest￿customer￿accounted￿for￿EUR￿2,058.6￿million,￿or￿39.2￿percent,￿of￿net￿sales￿(2012:￿EUR
1,236.1￿million,￿or￿26.1￿percent,￿of￿net￿sales;￿2011:￿EUR￿1,311.7￿million,￿or￿23.2￿percent,￿of￿net￿sales).￿Our￿three￿largest
customers￿(based￿on￿net￿sales)￿accounted￿for￿EUR￿861.4￿million,￿or￿73.3￿percent,￿of￿accounts￿receivable￿and￿finance
receivables￿at￿December￿31,￿2013,￿compared￿with￿EUR￿535.1￿million,￿or￿58.9￿percent,￿at￿December￿31,￿2012.

Substantially￿all￿of￿our￿sales￿were￿export￿sales￿in￿2013,￿2012￿and￿2011.

22. Selected Operating Expenses and Additional Information
Personnel￿expenses￿for￿all￿payroll￿employees￿were:

Year ended December 31
(in thousands)
Wages￿and￿salaries
Social￿security￿expenses
Pension￿and￿retirement￿expenses
Share-based￿payments
Personnel expenses

2013
EUR
835,563
69,839
60,275
52,371
1,018,048

2012
EUR
711,039
58,180
50,298
18,714
838,231

2011
EUR
648,869
52,550
45,947
12,430
759,796

The￿average￿number￿of￿payroll￿employees￿in￿FTEs￿during￿2013,￿2012￿and￿2011￿was￿9,540,￿8,140￿and￿7,627,￿respectively.

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The￿total￿number￿of￿payroll￿and￿temporary￿employees￿in￿FTEs￿per￿sector￿was:

As of December 31
Customer￿Support
SG&A
Industrial￿Engineering
Manufacturing￿&￿Logistics
R&D
Total employees (in FTEs)
Less:￿Temporary￿employees￿(in￿FTEs)
Payroll employees (in FTEs)

2013
2,949
1,098
785
3,658
4,735
13,225
2,865
10,360

2012
2,538
869
637
2,856
3,736
10,636
2,139
8,497

2011
2,478
723
420
2,852
3,417
9,890
1,935
7,955

The￿average￿number￿of￿payroll￿employees￿in￿FTEs￿in￿our￿operations￿in￿the￿Netherlands￿during￿2013,￿2012￿and￿2011￿was
5,112,￿4,620￿and￿4,313,￿respectively.

23. Research and Development Costs
R&D￿costs￿(net￿of￿credits￿and￿excluding￿contributions￿under￿the￿NRE￿funding￿agreements￿from￿Participating￿Customers
of￿the￿CCIP)￿increased￿by￿EUR￿292.9￿million,￿or￿49.7￿percent,￿to￿EUR￿882.0￿million￿in￿2013￿from￿EUR￿589.1￿million￿in
2012.￿R&D￿spending￿mainly￿increased￿due￿the￿additional￿investments￿in￿EUV￿source￿development￿as￿a￿result￿of￿the
acquisition￿of￿Cymer￿and￿further￿investments￿in￿our￿other￿strategic￿programs￿(Immersion￿and￿holistic￿lithography).

R&D￿costs￿(net￿of￿credits)￿in￿2012￿(EUR￿589.1￿million)￿were￿in￿line￿with￿2011￿(EUR￿590.3￿million).￿R&D￿spending￿remained
stable￿and￿mainly￿related￿to￿our￿strategic￿programs,￿in￿particular￿EUV,￿immersion￿and￿holistic￿lithography.

R&D￿costs￿include￿credits￿for￿an￿amount￿of￿EUR￿16.0￿million,￿EUR￿17.9￿million￿and￿EUR￿25.1￿million￿in￿2013,￿2012
and￿2011￿respectively.￿R&D￿credits￿relate￿to￿worldwide￿(inter-)governmental￿funding￿for￿certain￿strategic￿development
programs.￿The￿decrease￿in￿R&D￿credits￿is￿the￿result￿of￿a￿change￿in￿government￿programs￿from￿subsidy￿payments￿to
fiscal￿incentives.￿These￿incentives￿lead￿to￿tax￿deductions￿in￿mainly￿Dutch￿and￿United￿States￿tax￿jurisdictions.

24. Interest and Other, Net
Interest￿and￿other￿income￿of￿EUR￿9.2￿million￿(2012:￿EUR￿16.6￿million￿and￿2011:￿EUR￿41.2￿million)￿mainly￿relates￿to
interest￿income￿on￿deposits,￿short-term￿investments,￿money￿market￿funds,￿bank￿accounts￿and￿on￿finance￿receivables.

Interest￿and￿other￿expense￿of￿EUR￿33.6￿million￿(2012:￿EUR￿22.8￿million￿and￿2011:￿EUR￿33.8￿million)￿mainly￿consists
of￿net￿interest￿expense￿on￿our￿Eurobonds￿and￿related￿interest￿rate￿swaps,￿interest￿on￿lease￿obligations￿and￿amortized
financing￿costs￿of￿in￿total￿EUR￿16.2￿million￿(2012:￿EUR￿10.8￿million￿and￿2011:￿EUR￿14.2￿million),￿and￿EUR￿8.9￿million
loss￿on￿the￿partial￿extinguishment￿of￿our￿EUR￿600￿million￿5.75￿percent￿senior￿notes￿due￿2017￿(2012￿and￿2011:￿EUR￿nil
million).￿

Interest￿on￿cash￿pools￿is￿reported￿on￿a￿gross￿basis￿in￿the￿Consolidated￿Statements￿of￿Operations￿under￿both
interest￿income￿and￿interest￿expense.￿From￿an￿economic￿and￿legal￿perspective,￿the￿interest￿on￿cash￿pools￿of
EUR￿1.9￿million￿(2012:￿EUR￿4.2￿million￿and￿2011:￿EUR￿6.8￿million)￿recorded￿in￿interest￿income￿nets￿off￿against￿the￿same
amount￿recorded￿in￿interest￿expense.

25. Vulnerability Due to Certain Concentrations
ASML￿relies￿on￿outside￿vendors￿to￿manufacture￿the￿components￿and￿subassemblies￿used￿in￿its￿systems,￿each￿of
which￿is￿obtained￿from￿a￿sole￿supplier￿or￿a￿limited￿number￿of￿suppliers.￿ASML’s￿reliance￿on￿a￿limited￿group￿of￿suppliers
involves￿several￿risks,￿including￿a￿potential￿inability￿to￿obtain￿an￿adequate￿supply￿of￿required￿components￿and￿reduced
control￿over￿pricing￿and￿timely￿delivery￿of￿these￿subassemblies￿and￿components.￿In￿particular,￿from￿time￿to￿time,￿the
number￿of￿systems￿we￿are￿able￿to￿produce￿may￿be￿limited￿by￿the￿production￿capacity￿of￿Zeiss.￿Zeiss￿is￿currently￿our
sole￿supplier￿of￿lenses,￿collectors,￿and￿other￿critical￿optical￿components￿and￿is￿capable￿of￿producing￿these￿items￿only￿in
limited￿numbers￿and￿only￿through￿the￿use￿of￿its￿manufacturing￿and￿testing￿facility￿in￿Oberkochen￿and￿Wetzlar,￿Germany.
During￿2013,￿ASML’s￿production￿was￿not￿limited￿by￿the￿deliveries￿from￿Zeiss.

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26. Shareholders' Equity
Share Capital
ASML's￿authorized￿share￿capital￿amounts￿to￿EUR￿126,000,000￿and￿is￿divided￿into:

• 700,000,000￿Cumulative￿Preference￿Shares￿with￿a￿nominal￿value￿of￿EUR￿0.09￿each;
• 699,999,000￿Ordinary￿Shares￿with￿a￿nominal￿value￿of￿EUR￿0.09￿each;￿and
• 9,000￿Ordinary￿Shares￿B￿with￿a￿nominal￿value￿of￿EUR￿0.01￿each.

Per￿December￿31,￿2013,￿446,822,452￿ordinary￿shares￿with￿a￿nominal￿value￿of￿EUR￿0.09￿each￿were￿issued￿and￿fully￿paid
in,￿of￿which￿5,970,118￿ordinary￿shares￿are￿held￿by￿us￿in￿treasury.￿No￿ordinary￿shares￿B￿and￿no￿cumulative￿preference
shares￿are￿issued.

Our￿Board￿of￿Management￿has￿the￿power￿to￿issue￿ordinary￿shares￿and￿cumulative￿preference￿shares￿insofar￿as￿the
Board￿of￿Management￿has￿been￿authorized￿to￿do￿so￿by￿the￿General￿Meeting￿of￿Shareholders￿(either￿by￿means￿of￿a
resolution￿or￿by￿an￿amendment￿to￿our￿Articles￿of￿Association).￿The￿Board￿of￿Management￿requires￿approval￿of￿the
Supervisory￿Board￿for￿such￿an￿issue.￿The￿authorization￿by￿the￿General￿Meeting￿can￿only￿be￿granted￿for￿a￿certain
period￿not￿exceeding￿five￿years￿and￿may￿be￿extended￿for￿no￿longer￿than￿five￿years￿on￿each￿occasion.￿In￿case￿the
General￿Meeting￿of￿Shareholders￿has￿not￿authorized￿the￿Board￿of￿Management￿to￿issue￿shares,￿the￿General￿Meeting￿of
Shareholders￿shall￿have￿the￿power￿to￿issue￿shares￿upon￿the￿proposal￿of￿the￿Board￿of￿Management,￿provided￿that￿the
Supervisory￿Board￿has￿approved￿such￿proposal.

Shares Issued as a Result of the Acquisition of Cymer
ASML￿and￿Cymer￿completed￿the￿merger￿pursuant￿to￿which￿ASML￿acquired￿Cymer￿on￿May￿30,￿2013.￿As￿a￿result￿of
the￿merger,￿each￿share￿of￿Cymer￿common￿stock￿outstanding￿immediately￿prior￿to￿the￿completion￿of￿the￿merger￿was
converted￿into￿the￿right￿to￿receive￿USD￿20.00￿in￿cash￿plus￿1.1502￿ASML￿ordinary￿shares.￿As￿per￿December￿31,￿2013,
we￿issued￿36,464,576￿ordinary￿shares￿for￿an￿aggregate￿amount￿of￿EUR￿2,346.7￿million￿in￿relation￿to￿the￿acquisition￿of
Cymer.

Synthetic Share Buyback
At￿the￿EGM￿held￿on￿September￿7,￿2012,￿several￿changes￿in￿the￿Articles￿of￿Association￿of￿ASML￿were￿adopted,￿in
connection￿with￿the￿Synthetic￿Share￿Buyback￿effectuated￿in￿connection￿with￿the￿CCIP.￿Consequently,￿on￿November￿24,
2012,￿the￿Articles￿of￿Association￿were￿amended￿as￿follows.￿Upon￿the￿first￿amendment￿the￿ordinary￿shares￿to￿be￿held
for￿the￿benefit￿of￿the￿participants￿to￿the￿CCIP￿were￿converted￿into￿ordinary￿shares￿M￿and￿all￿other￿ordinary￿shares￿were
converted￿into￿ordinary￿shares￿A.￿Upon￿the￿second￿amendment,￿the￿par￿value￿per￿ordinary￿share￿A￿was￿increased￿from
EUR￿0.09￿to￿EUR￿9.24￿at￿the￿expense￿of￿the￿share￿premium￿reserve.￿Upon￿the￿third￿amendment,￿the￿nominal￿value￿per
ordinary￿share￿A￿was￿reduced￿to￿an￿amount￿of￿EUR￿0.06,￿by￿decreasing￿the￿nominal￿value￿per￿ordinary￿share￿A￿by￿an
amount￿of￿EUR￿9.18,￿which￿resulted￿in￿a￿repayment￿of￿the￿same￿amount￿per￿share￿to￿holders￿of￿ordinary￿shares￿into
which￿the￿ordinary￿shares￿A￿were￿converted.￿The￿fourth￿amendment￿provided￿for￿the￿consolidation￿of￿the￿ordinary￿shares
A￿through￿the￿exchange￿of￿each￿100￿ordinary￿shares￿for￿77￿ordinary￿shares,￿resulting￿in￿an￿increase￿of￿the￿nominal￿value
per￿ordinary￿share￿from￿EUR￿0.06￿to￿EUR￿0.09,￿whereby￿the￿aggregate￿difference￿was￿booked￿at￿the￿expense￿of￿the
share￿premium￿reserve.￿The￿fifth￿and￿last￿amendment￿provided￿for￿the￿deletion￿of￿the￿share￿class￿M￿for￿participants￿to
the￿CCIP￿and￿the￿share￿class￿A￿for￿the￿other￿shareholders.￿The￿ordinary￿shares￿M￿and￿A￿were￿converted￿thereafter￿into
ordinary￿shares￿without￿a￿specific￿letter￿mark￿attached￿to￿it.

These￿amendments￿in￿substance￿constitute￿a￿Synthetic￿Share￿Buyback￿in￿which￿we￿effectively￿repurchased￿93,411,216
shares￿at￿an￿average￿price￿of￿EUR￿39.91￿for￿a￿total￿amount￿of￿EUR￿3,728.3￿million.￿The￿difference￿of￿EUR￿125.6￿million
between￿the￿capital￿repayment￿of￿EUR￿3,728.3￿million￿and￿the￿net￿proceeds￿from￿issuance￿of￿shares￿of￿EUR￿3,853.9
million￿relates￿to￿the￿capital￿repayment￿on￿ASML's￿treasury￿shares￿which￿was￿also￿part￿of￿the￿Synthetic￿Share￿Buyback.

Shares Issued in Customer Co-Investment Program
In￿connection￿with￿the￿CCIP,￿on￿September￿12,￿2012,￿we￿issued￿62,977,877￿ordinary￿shares￿to￿the￿Stichting￿that￿holds
shares￿on￿behalf￿of￿Intel￿and￿12,595,575￿ordinary￿shares￿to￿the￿Stichting￿that￿holds￿shares￿on￿behalf￿of￿Samsung￿and
on￿October￿31,￿2012,￿ASML￿issued￿20,992,625￿ordinary￿shares￿to￿the￿Stichting￿that￿holds￿shares￿on￿behalf￿of￿TSMC.
We￿received￿an￿amount￿of￿EUR￿3,853.9￿million￿in￿relation￿to￿the￿shares￿issued￿under￿the￿CCIP.￿For￿further￿details￿on￿our
CCIP￿see￿Note￿28.

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Ordinary Shares
Each￿ordinary￿share￿consists￿of￿900￿fractional￿shares.￿Fractional￿shares￿entitle￿the￿holder￿thereof￿to￿a￿fractional￿dividend
but￿do￿not￿entitle￿the￿holder￿thereof￿to￿voting￿rights.￿Only￿those￿persons￿who￿hold￿shares￿directly￿in￿the￿share￿register
in￿the￿Netherlands,￿held￿by￿us￿at￿our￿address￿at￿5504￿DR￿Veldhoven,￿de￿Run￿6501,￿the￿Netherlands,￿or￿in￿the￿New￿York
share￿register,￿held￿by￿JP￿Morgan￿Chase￿Bank,￿N.A.,￿P.O.￿Box￿64506,￿St.￿Paul,￿MN￿55164-0506,￿United￿States,￿can
hold￿fractional￿shares.￿Persons￿who￿hold￿ordinary￿shares￿through￿the￿deposit￿system￿under￿the￿Dutch￿Securities￿Bank
Giro￿Transactions￿Act￿(Wet giraal effectenverkeer;￿the￿"Giro￿Act")￿maintained￿by￿the￿Dutch￿central￿securities￿depository
Euroclear￿Nederland￿or￿through￿the￿DTC￿cannot￿hold￿fractional￿shares.￿An￿ordinary￿share￿entitles￿the￿holder￿thereof￿to
cast￿nine￿votes￿in￿the￿General￿Meeting￿of￿Shareholders.￿At￿our￿AGM￿held￿on￿April￿24,￿2013,￿the￿Board￿of￿Management
was￿authorized￿from￿April￿24,￿2013￿through￿October￿24,￿2014,￿subject￿to￿the￿approval￿of￿the￿Supervisory￿Board,￿to
issue￿shares￿and/or￿rights￿thereto￿representing￿up￿to￿a￿maximum￿of￿5.0￿percent￿of￿our￿issued￿share￿capital￿at￿April￿24,
2013,￿plus￿an￿additional￿5.0￿percent￿of￿our￿issued￿share￿capital￿at￿April￿24,￿2013￿that￿may￿be￿issued￿in￿connection￿with
mergers,￿acquisitions￿and/or￿(strategic)￿alliances.

Holders￿of￿ASML’s￿ordinary￿shares￿have￿a￿preemptive￿right￿of￿subscription,￿in￿proportion￿to￿the￿aggregate￿nominal
amount￿of￿the￿ordinary￿shares￿held￿by￿them,￿to￿any￿issuance￿of￿ordinary￿shares￿for￿cash,￿which￿right￿may￿be￿restricted
or￿excluded.￿Ordinary￿shareholders￿have￿no￿pro￿rata￿preemptive￿right￿of￿subscription￿to￿any￿ordinary￿shares￿issued￿for
consideration￿other￿than￿cash￿or￿ordinary￿shares￿issued￿to￿employees.￿If￿authorized￿for￿this￿purpose￿by￿the￿General
Meeting￿of￿Shareholders￿(either￿by￿means￿of￿a￿resolution￿or￿by￿an￿amendment￿to￿our￿Articles￿of￿Association),￿the￿Board
of￿Management￿has￿the￿power￿subject￿to￿approval￿of￿the￿Supervisory￿Board,￿to￿restrict￿or￿exclude￿the￿preemptive￿rights
of￿holders￿of￿ordinary￿shares.

Ordinary Shares B
As￿part￿of￿the￿most￿recent￿changes￿in￿our￿Articles￿of￿Association,￿adopted￿at￿the￿EGM￿held￿on￿September￿7,￿2012,
the￿9,000￿ordinary￿shares￿B￿with￿a￿nominal￿value￿of￿EUR￿0.01￿were￿introduced.￿A￿person￿who￿holds￿(a￿multiple￿of)￿100
fractional￿shares,￿may￿exchange￿those￿fractional￿shares￿for￿an￿ordinary￿share￿B.￿Every￿holder￿of￿an￿ordinary￿share￿B￿is
entitled￿to￿one-ninth￿(1/9)￿of￿a￿dividend.￿Each￿ordinary￿share￿B￿entitles￿the￿holder￿thereof￿to￿cast￿one￿vote￿at￿the￿General
Meeting.

Cumulative Preference Shares
In￿1998,￿we￿granted￿to￿the￿preference￿share￿Foundation,￿the￿Preference￿Share￿Option.￿This￿option￿was￿amended￿and
extended￿in￿2003￿and￿2007.￿A￿third￿amendment￿to￿the￿option￿agreement￿between￿the￿Foundation￿and￿ASML￿became
effective￿on￿January￿1,￿2009,￿to￿clarify￿the￿procedure￿for￿the￿repurchase￿and￿cancellation￿of￿the￿preference￿shares￿when
issued.

Per￿the￿amendment￿of￿our￿Articles￿of￿Association￿on￿May￿6,￿2011,￿the￿nominal￿value￿of￿the￿cumulative￿preference￿shares
was￿increased￿to￿EUR￿0.09.￿The￿number￿of￿cumulative￿preference￿shares￿included￿in￿the￿authorized￿share￿capital￿was
decreased￿to￿700,000,000.￿This￿was￿done￿to￿simplify￿the￿Articles￿of￿Association,￿and￿to￿give￿each￿share￿the￿right￿to￿cast
one￿vote￿in￿the￿General￿Meeting￿of￿Shareholders.

The￿Foundation￿may￿exercise￿the￿Preference￿Share￿Option￿in￿situations￿where,￿in￿the￿opinion￿of￿the￿Board￿of￿Directors
of￿the￿Foundation,￿ASML's￿interests,￿ASML's￿business￿or￿the￿interests￿of￿ASML's￿stakeholders￿are￿at￿stake.￿This￿may
be￿the￿case￿if￿a￿public￿bid￿for￿ASML's￿shares￿has￿been￿announced￿or￿has￿been￿made,￿or￿the￿justified￿expectation￿exists
that￿such￿a￿bid￿will￿be￿made￿without￿any￿agreement￿having￿been￿reached￿in￿relation￿to￿such￿a￿bid￿with￿ASML.￿The￿same
may￿apply￿if￿one￿shareholder,￿or￿more￿shareholders￿acting￿in￿concert,￿hold￿a￿substantial￿percentage￿of￿ASML's￿issued
ordinary￿shares￿without￿making￿an￿offer￿or￿if,￿in￿the￿opinion￿of￿the￿Board￿of￿Directors￿of￿the￿Foundation,￿the￿(attempted)
exercise￿of￿the￿voting￿rights￿by￿one￿shareholder￿or￿more￿shareholders,￿acting￿in￿concert,￿is￿materially￿in￿conflict￿with
ASML's￿interests,￿ASML's￿business￿or￿ASML's￿stakeholders.

The￿objectives￿of￿the￿Foundation￿are￿to￿look￿after￿the￿interests￿of￿ASML￿and￿of￿the￿enterprises￿maintained￿by￿ASML
and￿of￿the￿companies￿which￿are￿affiliated￿in￿a￿group￿with￿ASML,￿in￿such￿a￿way￿that￿the￿interests￿of￿ASML,￿of￿those
enterprises￿and￿of￿all￿parties￿concerned￿are￿safeguarded￿in￿the￿best￿possible￿way,￿and￿influences￿in￿conflict￿with￿these
interests￿which￿might￿affect￿the￿independence￿or￿the￿identity￿of￿ASML￿and￿those￿companies￿are￿deterred￿to￿the￿best
of￿the￿Foundation’s￿ability,￿and￿everything￿related￿to￿the￿above￿or￿possibly￿conducive￿thereto.￿The￿Foundation￿seeks￿to
realize￿its￿objects￿by￿the￿acquiring￿and￿holding￿of￿cumulative￿preference￿shares￿in￿the￿capital￿of￿ASML￿and￿by￿exercising
the￿rights￿attached￿to￿these￿shares,￿particularly￿the￿voting￿rights￿attached￿to￿these￿shares.

ASML￿ANNUAL￿REPORT￿2013

F-47

The￿preference￿share￿option￿gives￿the￿Foundation￿the￿right￿to￿acquire￿a￿number￿of￿cumulative￿preference￿shares￿as￿the
Foundation￿will￿require,￿provided￿that￿the￿aggregate￿nominal￿value￿of￿such￿number￿of￿cumulative￿preference￿shares
shall￿not￿exceed￿the￿aggregate￿nominal￿value￿of￿the￿ordinary￿shares￿that￿have￿been￿issued￿at￿the￿time￿of￿exercise￿of￿the
Preference￿Share￿Option￿for￿a￿subscription￿price￿equal￿to￿their￿nominal￿value.￿Only￿one-fourth￿of￿the￿subscription￿price
is￿payable￿at￿the￿time￿of￿initial￿issuance￿of￿the￿cumulative￿preference￿shares,￿with￿the￿other￿three-fourths￿of￿the￿nominal
value￿only￿being￿payable￿when￿we￿call￿up￿this￿amount.￿Exercise￿of￿the￿preference￿share￿option￿could￿effectively￿dilute
the￿voting￿power￿of￿the￿outstanding￿ordinary￿shares￿by￿one-half.

Cancellation￿and￿repayment￿of￿the￿issued￿cumulative￿preference￿shares￿by￿ASML￿requires￿the￿authorization￿by￿the
General￿Meeting￿of￿Shareholders￿of￿a￿proposal￿to￿do￿so￿by￿the￿Board￿of￿Management￿approved￿by￿the￿Supervisory
Board.￿If￿the￿preference￿share￿option￿is￿exercised￿and￿as￿a￿result￿cumulative￿preference￿shares￿are￿issued,￿ASML,￿at
the￿request￿of￿the￿Foundation,￿will￿initiate￿the￿repurchase￿or￿cancellation￿of￿all￿cumulative￿preference￿shares￿held￿by￿the
Foundation.￿In￿that￿case￿ASML￿is￿obliged￿to￿effect￿the￿repurchase￿and￿cancellation￿respectively￿as￿soon￿as￿possible.￿A
cancellation￿will￿have￿as￿a￿result￿a￿repayment￿of￿the￿amount￿paid￿and￿exemption￿from￿the￿obligation￿to￿pay￿up￿on￿the
cumulative￿preference￿shares.￿A￿repurchase￿of￿the￿cumulative￿preference￿shares￿can￿only￿take￿place￿when￿such￿shares
are￿fully￿paid￿up.

If￿the￿Foundation￿will￿not￿request￿ASML￿to￿repurchase￿or￿cancel￿all￿cumulative￿preference￿shares￿held￿by￿the￿Foundation
within￿20￿months￿after￿issuance￿of￿these￿shares,￿we￿will￿be￿obliged￿to￿convene￿a￿General￿Meeting￿of￿Shareholders￿in
order￿to￿decide￿on￿a￿repurchase￿or￿cancellation￿of￿these￿shares.

The￿Foundation￿is￿independent￿of￿ASML.￿The￿Board￿of￿Directors￿of￿the￿Foundation￿comprises￿four￿independent￿voting
members￿from￿the￿Dutch￿business￿and￿academic￿communities.￿Former￿chairman￿Mr.￿A.￿Baan￿passed￿away￿on￿April￿5,
2013￿and￿was￿succeeded￿by￿Mr.￿H.￿Bodt.￿As￿of￿June￿1,￿2013,￿the￿members￿of￿the￿Board￿of￿Directors￿of￿the￿Foundation
are:￿Mr.￿H.￿Bodt,￿Mr.￿M.W.￿den￿Boogert,￿Mr.￿J.M.￿de￿Jong￿and￿Mr.￿A.H.￿Lundqvist.

Dividend Proposal
As￿part￿of￿our￿financing￿policy,￿we￿aim￿to￿pay￿an￿annual￿dividend￿that￿will￿be￿stable￿or￿growing￿over￿time.￿Annually,￿the
Board￿of￿Management￿will,￿upon￿prior￿approval￿from￿the￿Supervisory￿Board,￿submit￿a￿proposal￿to￿the￿AGM￿with￿respect
to￿the￿amount￿of￿dividend￿to￿be￿declared￿with￿respect￿to￿the￿prior￿year.￿The￿dividend￿proposal￿in￿any￿given￿year￿will￿be
subject￿to￿the￿availability￿of￿distributable￿profits￿or￿retained￿earnings￿and￿may￿be￿affected￿by,￿among￿other￿factors,￿the
Board￿of￿Management's￿views￿on￿our￿potential￿future￿liquidity￿requirements,￿including￿for￿investments￿in￿production
capacity,￿the￿funding￿of￿our￿R&D￿programs￿and￿for￿acquisition￿opportunities￿that￿may￿arise￿from￿time￿to￿time;￿and￿by
future￿changes￿in￿applicable￿income￿tax￿and￿corporate￿laws.￿Accordingly,￿it￿may￿be￿decided￿to￿propose￿not￿to￿pay￿a
dividend￿or￿to￿pay￿a￿lower￿dividend￿with￿respect￿to￿any￿particular￿year￿in￿the￿future.

For￿2013,￿a￿proposal￿to￿declare￿a￿dividend￿of￿EUR￿0.61￿per￿ordinary￿share￿of￿EUR￿0.09￿nominal￿value￿will￿be￿submitted
to￿the￿AGM￿to￿be￿held￿on￿April￿23,￿2014.

27. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
In￿addition￿to￿dividend￿payments,￿we￿intend￿to￿return￿cash￿to￿our￿shareholders￿on￿a￿regular￿basis￿through￿share
buybacks￿or￿capital￿repayment,￿subject￿to￿our￿actual￿and￿anticipated￿level￿of￿liquidity￿requirements,￿our￿current￿share
price,￿other￿market￿conditions￿and￿other￿relevant￿factors.￿

On￿April￿24,￿2013,￿the￿AGM￿authorized￿the￿repurchase￿of￿up￿to￿a￿maximum￿of￿two￿times￿10.0￿percent￿of￿our￿issued￿share
capital￿as￿of￿the￿date￿of￿authorization￿through￿October￿24,￿2014.

On￿April￿17,￿2013,￿we￿announced￿our￿intention￿to￿repurchase￿up￿to￿EUR￿1.0￿billion￿of￿our￿own￿shares￿within￿the
2013-2014￿timeframe.￿During￿the￿period￿from￿April￿18,￿2013￿up￿to￿and￿including￿December￿31,￿2013,￿we￿had￿purchased
4,614,179￿of￿our￿shares￿for￿a￿total￿amount￿of￿EUR￿300.0￿million￿at￿an￿average￿price￿of￿EUR￿65.02￿per￿share.￿These
shares￿are￿intended￿to￿be￿cancelled￿in￿2014.

ASML￿ANNUAL￿REPORT￿2013

F-48

The￿following￿table￿provides￿a￿summary￿of￿our￿repurchased￿shares￿in￿2013:

Period

April￿18￿-￿30,￿2013
May￿2￿-￿31,￿2013
June￿1￿-￿30,￿2013
July￿1￿-￿31,￿2013
August￿1￿-￿31,￿2013
September￿1￿-￿30,￿2013
October￿3￿-￿31,￿2013
November￿1￿-￿30,￿2013
December￿1￿-￿31,￿2013

Total

Total number
of shares
purchased

Average price paid
per Share
(EUR)

297,500
389,974
749,434
321,486
283,097
179,146
556,443
962,146
874,953

4,614,179

55.35
61.76
60.39
65.20
67.83
69.06
69.34
66.76
67.25

65.02

Total number of shares
purchased as
part of publicly
announced plans
or programs
297,500
687,474
1,436,908
1,758,394
2,041,491
2,220,637
2,777,080
3,739,226
4,614,179

Maximum value of
shares that may yet be
purchased under the
program
(EUR)
983,534,770
959,449,401
914,192,630
893,232,250
874,028,834
861,656,533
823,072,791
758,841,727
700,000,036

28. Customer Co-Investment Program

Overview

On￿July￿9,￿2012,￿we￿announced￿our￿CCIP￿to￿accelerate￿our￿development￿of￿EUV￿technology￿beyond￿the￿current
generation￿and￿our￿development￿of￿future￿450mm￿silicon￿wafer￿technology.￿The￿Participating￿Customers￿collectively
agreed￿to￿fund￿EUR￿1.38￿billion￿of￿our￿research￿and￿development￿projects￿from￿2013￿through￿2017.￿This￿program
created￿risk￿sharing￿with￿some￿of￿our￿largest￿customers￿while￿the￿results￿of￿ASML’s￿development￿programs￿will￿be
available￿to￿every￿semiconductor￿manufacturer￿with￿no￿restrictions.￿The￿R&D￿funding￿program￿in￿the￿CCIP￿consists￿of
two￿funding￿projects:￿a￿450mm￿technology￿development￿project￿and￿a￿next-generation￿EUV￿development￿project.￿ASML
entered￿into￿NRE￿Funding￿Agreements￿with￿the￿Participating￿Customers.

In￿addition￿to￿the￿funding￿commitments￿described￿above,￿the￿Participating￿Customers￿have￿invested￿in￿ordinary￿shares
equal,￿in￿aggregate,￿to￿23￿percent￿of￿ASML's￿issued￿share￿capital￿(calculated￿giving￿effect￿to￿our￿Synthetic￿Share
Buyback￿in￿November￿2012).￿The￿proceeds￿of￿the￿share￿issuance,￿EUR￿3.85￿billion,￿were￿returned￿to￿the￿holders￿of
ordinary￿shares￿(excluding￿the￿Participating￿Customers)￿through￿a￿Synthetic￿Share￿Buyback￿executed￿in￿November
2012.￿For￿further￿information￿regarding￿the￿Synthetic￿Share￿Buyback,￿see￿Note￿26.

Description of Investment Agreements, Shareholder Agreements and NRE Funding Agreements

In￿connection￿with￿the￿CCIP,￿ASML￿entered￿into￿an￿investment￿agreement,￿a￿shareholder￿agreement￿and￿NRE￿funding
agreements￿with￿each￿of￿the￿Participating￿Customers.￿Intel￿is￿the￿largest￿participant￿in￿the￿program,￿with￿an￿aggregate
funding￿commitment￿of￿EUR￿829￿million￿and￿an￿investment￿in￿15￿percent￿of￿our￿ordinary￿shares￿(calculated￿giving￿effect
to￿our￿Synthetic￿Share￿Buyback￿in￿November￿2012).￿A￿description￿of￿the￿investment￿agreement,￿shareholders￿agreement
and￿NRE￿funding￿agreements￿between￿ASML￿and￿Intel￿is￿set￿out￿below.￿The￿agreements￿between￿ASML￿and￿the￿other
participants￿-￿TSMC￿(which￿acquired￿5￿percent￿of￿our￿shares￿and￿made￿an￿EUR￿276￿million￿funding￿commitment)
and￿Samsung￿(which￿acquired￿3￿percent￿of￿our￿shares￿and￿made￿an￿EUR￿276￿million￿funding￿commitment)￿are￿on
substantially￿the￿same￿terms￿as￿those￿agreed￿with￿Intel.￿Shares￿were￿acquired￿by￿Dutch￿foundations￿("Stichtingen")
established￿for￿each￿participant.

Investment Agreements

Pursuant￿to￿the￿Intel￿Investment￿Agreement,￿dated￿July￿9,￿2012,￿ASML￿issued￿to￿Intel￿Stichting￿ordinary￿shares￿equal￿to
15￿percent￿of￿the￿issued￿ordinary￿shares￿with￿simultaneous￿issuance￿by￿the￿Intel￿Stichting￿to￿Intel￿of￿the￿corresponding
depositary￿receipts.

Pursuant￿to￿the￿TSMC￿Investment￿Agreement,￿dated￿August￿5,￿2012,￿ASML￿issued￿to￿TSMC￿Stichting￿ordinary￿shares
equal￿to￿5￿percent￿of￿the￿issued￿ordinary￿shares￿with￿simultaneous￿issuance￿by￿the￿TSMC￿Stichting￿to￿TSMC￿of￿the
corresponding￿depositary￿receipts.

Pursuant￿to￿the￿Samsung￿Investment￿Agreement,￿dated￿August￿27,￿2012￿ASML￿issued￿to￿the￿Samsung￿Stichting
ordinary￿shares￿equal￿to￿3￿percent￿of￿the￿issued￿ordinary￿shares￿with￿simultaneous￿issuance￿by￿the￿Samsung￿Stichting
to￿Samsung￿of￿the￿corresponding￿depositary￿receipts.

ASML￿ANNUAL￿REPORT￿2013

F-49

                                               
The￿subscription￿price￿for￿the￿ordinary￿shares￿under￿the￿Investment￿Agreements￿was￿EUR￿39.91￿per￿ordinary￿share,
which￿is￿the￿average￿of￿the￿volume￿weighted￿average￿price￿of￿our￿shares￿listed￿at￿NYSE￿Euronext￿Amsterdam￿for￿the
twenty￿trading￿days￿up￿to￿and￿including￿July￿6,￿2012.

Based￿upon￿the￿subscription￿price￿(EUR￿39.91)￿included￿in￿the￿Investment￿Agreements,￿the￿equity￿participation￿of￿Intel
(15￿percent),￿TSMC￿(5￿percent)￿and￿Samsung￿(3￿percent)￿amount￿to￿EUR￿2,513￿million,￿EUR￿838￿million￿and￿EUR￿503
million,￿respectively.

Under￿the￿Intel￿Investment￿Agreements,￿ASML￿has￿agreed￿to￿indemnify￿the￿Participating￿Customers￿and￿their￿affiliates
for￿certain￿losses￿and￿expenses￿related￿to￿breaches￿of￿representations,￿warranties,￿covenants￿and￿agreements￿in￿the
Investment￿Agreements￿and￿with￿respect￿to￿certain￿legal￿proceedings￿related￿thereto,￿subject￿to￿certain￿limitations.

Shareholder Agreements

In￿connection￿with￿the￿issuance￿of￿shares￿pursuant￿to￿the￿Intel￿Investment￿Agreement,￿on￿September￿12,￿2012￿ASML,
Intel￿and￿the￿Intel￿Stichting￿entered￿into￿a￿Shareholder￿Agreement￿which￿governs￿certain￿matters￿relating￿to￿the￿holding
of￿and￿further￿investment￿by￿Intel￿in￿ordinary￿shares￿of￿ASML,￿directly￿and￿indirectly￿through￿the￿Intel￿Stichting,￿including
the￿matters￿described￿below.

The￿Shareholder￿Agreements￿between￿ASML￿and￿the￿other￿program￿participants￿(TSMC￿and￿Samsung)￿are￿on
substantially￿the￿same￿terms￿as￿those￿agreed￿with￿Intel.￿

Voting Restrictions

Pursuant￿to￿the￿Shareholder￿Agreement,￿Intel￿(and￿the￿Intel￿Stichting)￿will￿not￿be￿entitled￿to￿vote￿the￿ordinary￿shares￿that
were￿acquired￿by￿the￿Intel￿Stichting￿as￿part￿of￿the￿CCIP￿or￿any￿other￿ordinary￿shares￿otherwise￿transferred￿to￿the￿Intel
Stichting￿(under￿the￿circumstances￿described￿under￿"Standstill;￿Additional￿Purchases"￿below)￿prior￿to￿a￿Shareholder
Agreement￿Termination￿Event￿(as￿defined￿below),￿except￿when￿a￿Suspension￿Event￿(as￿described￿below)￿occurs￿and
is￿continuing￿or￿where￿the￿following￿matters￿are￿proposed￿at￿any￿General￿Meeting￿(the￿"Voting￿Restrictions"):￿(i)￿an
issuance￿of￿ASML￿shares￿or￿grant￿of￿rights￿to￿subscribe￿for￿ASML￿shares￿representing￿25￿percent￿or￿more￿of￿the￿issued
and￿outstanding￿share￿capital￿of￿ASML￿or￿the￿restriction￿or￿exclusion￿of￿pre-emption￿rights￿relating￿thereto￿(in￿each
case,￿on￿an￿aggregate￿basis￿during￿the￿preceding￿12￿months)￿or￿the￿designation￿of￿the￿Board￿of￿Management￿as￿the
authorized￿body￿to￿resolve￿on￿these￿matters;￿(ii)￿an￿authorization￿to￿repurchase￿25￿percent￿or￿more￿of￿ASML’s￿issued
and￿outstanding￿share￿capital￿on￿an￿aggregate￿basis￿during￿the￿preceding￿12￿months;￿(iii)￿the￿approval￿of￿a￿significant
change￿in￿the￿identity￿or￿nature￿of￿ASML￿or￿our￿business,￿including￿a￿transfer￿of￿all￿or￿substantially￿all￿business￿or￿assets
of￿ASML￿and￿our￿subsidiaries￿to￿a￿third￿party,￿the￿establishment￿or￿cancellation￿of￿a￿long-lasting￿cooperation￿of￿essential
importance￿with￿a￿third￿party￿and￿an￿acquisition￿or￿disposition￿of￿an￿interest￿in￿the￿capital￿or￿assets￿of￿a￿person￿with
a￿value￿of￿at￿least￿one￿third￿of￿the￿assets￿of￿ASML￿(on￿a￿consolidated￿basis);￿(iv)￿an￿amendment￿to￿ASML’s￿Articles￿of
Association￿that￿would￿materially￿affect￿the￿specific￿voting￿rights￿of￿Intel,￿would￿materially￿affect￿the￿identity￿or￿nature
of￿ASML￿or￿our￿business,￿or￿would￿disproportionately￿(or￿uniquely)￿and￿adversely￿affect￿the￿rights￿or￿benefits￿attached
to￿or￿derived￿from￿the￿ordinary￿shares￿held￿by￿Intel￿through￿the￿Intel￿Stichting￿as￿compared￿to￿the￿shareholders;￿(v)￿the
dissolution￿of￿ASML;￿and￿(vi)￿any￿merger￿or￿demerger￿which￿would￿result￿in￿a￿material￿change￿in￿the￿identity￿or￿nature￿of
ASML￿or￿its￿business.

Standstill, Lock-up and Orderly Market Arrangements

Standstill;￿Additional￿Purchases

Subject￿to￿certain￿exceptions,￿pursuant￿to￿the￿Shareholder￿Agreement,￿Intel￿(or￿its￿affiliates)￿may￿not,￿prior￿to￿the
six-year￿anniversary￿of￿the￿date￿of￿the￿Intel￿Shareholder￿Agreement￿(the￿"Standstill￿Period"),￿acquire￿more￿than￿19.9
percent￿of￿the￿outstanding￿share￿capital￿of￿ASML￿without￿ASML’s￿prior￿approval￿(the￿"Standstill￿Restriction").￿There￿is
an￿exception￿from￿the￿Standstill￿Restriction￿in￿the￿case￿of￿a￿‘suspension￿event’,￿which￿includes￿certain￿circumstances
where￿a￿third￿party￿has￿acquired￿or￿made￿an￿offer￿to￿acquire￿at￿least￿20￿percent￿of￿ASML’s￿outstanding￿shares,￿and￿the
Standstill￿Restriction￿will￿terminate￿upon￿the￿occurrence￿of￿a￿Shareholder￿Agreement￿Termination￿Event.

The￿Shareholder￿Agreement￿permits￿Intel￿(and￿its￿affiliates)￿to￿acquire￿up￿to￿4.99￿percent￿of￿ASML's￿outstanding￿shares
(other￿than￿shares￿acquired￿through￿the￿CCIP)￿that￿may￿be￿held￿outside￿the￿Intel￿Stichting.￿For￿any￿additional￿ASML
shares￿that￿Intel￿(or￿its￿affiliates)￿acquires￿in￿excess￿of￿4.99￿percent￿of￿the￿outstanding￿shares￿of￿ASML,￿Intel￿is￿required
to￿deposit￿such￿shares￿with￿the￿Intel￿Stichting￿in￿exchange￿for￿Depositary￿Receipts.￿Shares￿held￿directly￿by￿Intel￿or￿its
affiliates￿(and￿which￿not￿required￿to￿be￿deposited￿with￿the￿Intel￿Stichting)￿are￿not￿subject￿to￿the￿Voting￿Restrictions,￿or
Lock-Up￿Restrictions￿(as￿defined￿below),￿but￿are￿subject￿to￿the￿Standstill￿Restriction.

ASML￿ANNUAL￿REPORT￿2013

F-50

The￿Intel￿Stichting￿will￿continue￿to￿hold￿ASML￿shares￿owned￿by￿Intel￿(notwithstanding￿termination￿of￿the￿Standstill
Period)￿until￿the￿earlier￿of￿(i)￿￿such￿time￿as￿Intel￿owns￿(directly￿or￿through￿the￿Intel￿Stichting)￿less￿than￿2￿percent￿of
ASML’s￿outstanding￿shares￿(the￿relevant￿percentage￿is￿1￿percent￿for￿the￿other￿Participating￿Customers)￿(ii)￿the￿date
of￿notification￿to￿ASML￿by￿Participating￿Customers￿that￿the￿aggregate￿amount￿of￿ASML’s￿outstanding￿shares￿owned
by￿Intel￿and￿the￿other￿Participating￿Customers￿represents￿less￿than￿5￿percent￿of￿ASML’s￿outstanding￿shares￿and￿(iii)
a￿Shareholder￿Agreement￿Termination￿Event￿(as￿defined￿below),￿following￿which￿time￿Depositary￿Receipts￿will￿be
exchanged￿for￿the￿underlying￿ASML￿shares.￿In￿case￿Intel￿would￿acquire￿ASML￿shares￿within￿18￿months￿after￿an￿event
described￿under￿(i)￿or￿(ii)￿above,￿any￿ASML￿shares￿held￿by￿Intel￿in￿excess￿of￿4.99￿percent￿of￿the￿outstanding￿shares￿of
ASML￿must￿be￿transferred￿to￿(and￿held￿by)￿the￿Intel￿Stichting.

Lock-up;￿Orderly￿Sell￿Down

Intel￿may￿not,￿without￿prior￿written￿consent￿of￿ASML,￿transfer￿any￿ordinary￿shares￿or￿Depositary￿Receipts￿until￿the
earliest￿of￿(i)￿two￿years￿and￿six￿months￿after￿the￿date￿of￿the￿Intel￿Shareholder￿Agreement,￿(ii)￿termination￿of￿the￿NRE
Funding￿Agreements,￿and￿(iii)￿the￿occurrence￿of￿a￿Shareholder￿Agreement￿Termination￿Event￿￿((i),￿(ii)￿and￿(iii)￿together,￿the
"Lock-Up￿Restriction").￿The￿Lock-Up￿Restriction￿does￿not￿apply￿in￿certain￿circumstances￿where￿a￿third￿party￿offers￿to
acquire￿at￿least￿20￿percent￿of￿ASML’s￿shares.￿Intel￿is￿not￿permitted￿to￿transfer￿the￿ASML￿ordinary￿shares￿it￿acquired￿in
the￿program￿in￿connection￿with￿an￿offer￿(before￿the￿end￿of￿the￿offer),￿or￿make￿any￿public￿statement￿in￿support￿of￿such
offer,￿that￿is￿not￿recommended￿by￿the￿ASML￿Supervisory￿Board￿or￿Management￿Board,￿except￿in￿limited￿circumstances.

In￿addition,￿Intel￿may￿not￿(even￿after￿the￿Lock-Up￿Period￿has￿ended),￿without￿written￿consent￿of￿ASML,￿transfer￿on
NYSE￿Euronext￿Amsterdam,￿NASDAQ￿or￿another￿securities￿exchange￿more￿than￿(i)￿4￿percent￿of￿the￿outstanding￿shares
of￿ASML￿during￿any￿six￿month￿period￿(the￿relevant￿percentage￿is￿1.5￿percent￿for￿Samsung￿and￿2.5￿percent￿for￿TSMC).
There￿are￿also￿restrictions￿on￿Intel's￿ability￿to￿transfer￿ASML￿shares￿to￿certain￿competitors￿or￿customers￿of￿ASML.

Termination

The￿Intel￿Shareholder￿Agreement￿will￿terminate￿upon￿the￿occurrence￿of￿the￿following￿events￿(each￿a￿"Shareholder
Agreement￿Termination￿Event")￿(i)￿certain￿change￿of￿control￿transactions￿were￿the￿shareholders￿of￿ASML￿prior￿to￿such
a￿transaction￿are￿no￿longer￿entitled￿to￿exercise￿at￿least￿50￿percent￿of￿the￿votes￿in￿the￿General￿Meeting￿following￿such
transaction,￿(ii)￿in￿the￿event￿of￿a￿delisting￿of￿our￿shares￿listed￿at￿NYSE￿Euronext￿Amsterdam￿or￿delisting￿of￿our￿shares
listed￿at￿NASDAQ￿(except￿for￿certain￿voluntary￿delistings￿from￿NASDAQ),￿(iii)￿the￿winding￿up￿or￿liquidation￿of￿ASML,￿or
(vi)￿in￿the￿event￿that￿all￿Depositary￿Receipts￿are￿exchanged￿for￿ASML￿shares￿and￿Intel￿does￿not￿acquire￿ASML￿shares￿in
excess￿of￿4.99￿percent￿of￿the￿outstanding￿ASML￿shares￿within￿18￿months￿of￿such￿exchange￿(see￿"Standstill;￿Additional
Purchases"￿above).

NRE Funding Agreements

On￿July￿9,￿2012,￿ASML￿and￿Intel￿entered￿into￿two￿NRE￿Funding￿Agreements￿pursuant￿to￿which￿Intel￿will￿support￿ASML’s
R&D￿costs￿and￿project￿expenditures.￿One￿agreement￿relates￿to￿the￿Intel￿450mm￿NRE￿Funding￿Agreement￿and￿the￿other
relates￿to￿the￿Intel￿EUV￿NRE￿Funding￿Agreement￿(together￿the￿"Intel￿NRE￿Funding￿Agreements").￿Intel￿has￿committed
to￿provide￿EUR￿553￿million￿in￿funding￿under￿the￿Intel￿450mm￿NRE￿Funding￿Agreement￿and￿EUR￿276￿million￿in￿funding
under￿the￿Intel￿EUV￿NRE￿Funding￿Agreement,￿payable￿over￿the￿respective￿terms￿(2013-2017)￿of￿the￿Intel￿NRE￿Funding
Agreements.

On￿August￿5,￿2012,￿ASML￿and￿TSMC￿entered￿into￿the￿TSMC￿NRE￿Funding￿Agreement￿pursuant￿to￿which￿TSMC￿will
support￿ASML’s￿R&D￿costs￿and￿project￿expenditures￿relating￿to￿the￿development￿of￿450mm￿lithography￿equipment￿and
EUV￿platforms.￿TSMC￿has￿committed￿to￿provide￿EUR￿276￿million￿in￿funding￿payable￿over￿the￿term￿(2013-2017)￿of￿the
TSMC￿NRE￿Funding￿Agreement.

On￿August￿27,￿2012,￿ASML￿and￿Samsung￿entered￿into￿the￿Samsung￿NRE￿Funding￿Agreement￿pursuant￿to￿which
Samsung￿will￿support￿ASML’s￿R&D￿costs￿and￿project￿expenditures￿relating￿to￿the￿development￿of￿300mm/450mm￿and
EUV￿platforms.￿Samsung￿has￿committed￿to￿provide￿EUR￿276￿million￿in￿funding￿payable￿over￿the￿term￿(2013-2017)￿of￿the
Samsung￿NRE￿Funding￿Agreement.

ASML￿ANNUAL￿REPORT￿2013

F-51

Under￿the￿NRE￿Funding￿Agreements,￿ASML￿will￿retain￿sole￿control￿over￿the￿development￿of￿450mm￿photo￿lithography
equipment￿and￿EUV￿platforms￿and￿will￿own￿all￿intellectual￿property￿created￿by￿ASML￿in￿connection￿therewith.￿The￿NRE
Funding￿Agreements￿provide￿that￿if￿ASML,￿in￿its￿reasonable￿discretion,￿determines￿to￿abandon￿either￿the￿450mm￿or￿EUV
development￿project,￿as￿a￿result￿of￿technical￿infeasibility￿or￿lack￿of￿sufficient￿industry￿demand,￿or￿if￿the￿then￿remaining
funding￿exceeds￿the￿expenditure￿estimate￿for￿the￿development￿project￿(450mm￿or￿EUV)￿then￿the￿parties￿may￿agree￿on￿an
alternative￿development￿project,￿and￿if￿no￿alternative￿is￿agreed,￿ASML￿may￿invoice￿the￿Participating￿Customers￿for￿the
remaining￿due￿portion￿of￿committed￿funding￿during￿each￿year￿of￿the￿remaining￿funding￿period￿in￿which￿ASML's￿actual
gross￿R&D￿expenditures￿exceed￿a￿minimum￿threshold￿specified￿in￿the￿NRE￿Funding￿Agreements.￿The￿NRE￿Funding
Agreements￿will￿terminate￿on￿December￿31,￿2017￿or￿upon￿pre-payment￿by￿the￿Participating￿Customer￿of￿the￿aggregate
amount￿of￿funding￿owed￿under￿its￿respective￿NRE￿Funding￿Agreement.

Commercial Agreement

On￿July￿9,￿2012,￿ASML￿and￿Intel￿entered￿into￿a￿Commercial￿Agreement,￿pursuant￿to￿which￿ASML￿and￿Intel￿established
a￿contractual￿framework￿for￿Intel￿to￿purchase￿equipment￿related￿to￿the￿450mm￿and￿EUV￿next-generation￿lithography
equipment.￿Under￿this￿agreement,￿Intel￿has￿committed￿to￿purchase￿specified￿numbers￿of￿450mm￿and￿EUV￿tools.
The￿agreement￿sets￿forth￿pricing￿terms￿for￿the￿tools￿as￿well￿as￿milestones￿related￿to￿product￿deliveries,￿and￿provides
for￿certain￿commercial￿discounts￿in￿the￿form￿of￿credits￿in￿exchange￿for￿Intel’s￿early￿purchase￿commitments￿and
volume￿purchase￿commitments￿and￿for￿specified￿additional￿credits￿in￿the￿event￿that￿certain￿schedules￿are￿not￿met.￿In
addition,￿subject￿to￿certain￿conditions,￿ASML￿has￿agreed￿to￿install￿sufficient￿capacity￿to￿meet￿Intel’s￿forecasted￿450mm
lithography￿equipment￿needs￿through￿2022.

For￿further￿details￿regarding￿the￿share￿issuances￿to￿the￿Participating￿Customers￿and￿the￿Synthetic￿Share￿Buyback
effectuated￿in￿connection￿with￿our￿CCIP,￿see￿Note￿26.

Development 450mm silicon wafer technology

In￿November￿2013,￿following￿our￿customers’￿decision,￿ASML￿decided￿to￿pause￿the￿development￿of￿450mm￿lithography
systems￿until￿customer￿demand￿and￿the￿timing￿related￿to￿such￿demand￿is￿clear.￿We￿believe￿that￿our￿450mm
development￿activities￿can￿be￿restarted￿if￿and￿when￿the￿industry￿demands￿the￿introduction￿of￿450mm.￿Since￿450mm
requires￿both￿generic￿developments￿and￿wafer￿size-specific￿developments,￿many￿of￿our￿employees￿involved￿in￿the
450mm￿project￿are￿doing￿work￿that￿is￿just￿as￿relevant￿for￿future￿DUV￿and￿EUV￿platforms.￿The￿teams￿and￿people￿have
therefore￿been￿reassigned￿to￿different￿projects.

Under￿our￿CCIP,￿we￿are￿party￿to￿a￿450mm￿NRE￿Funding￿Agreement￿with￿Intel￿for￿a￿total￿NRE￿funding￿commitment￿of
EUR￿553￿million.￿We￿are￿currently￿in￿discussions￿with￿Intel￿to￿determine￿appropriate￿projects￿to￿which￿to￿apply￿the
450mm￿NRE￿funding.

Under￿the￿CCIP,￿we￿are￿also￿party￿to￿EUV￿NRE￿agreements￿with￿Intel￿(total￿funding￿of￿EUR￿276￿million),￿TSMC￿(total
funding￿of￿EUR￿276￿million)￿and￿Samsung￿(total￿funding￿of￿EUR￿276￿million),￿all￿of￿which￿funding￿is￿being￿used￿for￿EUV
projects.

29. Related Party Transactions
On￿July￿9,￿2012,￿we￿announced￿our￿CCIP￿to￿accelerate￿our￿development￿of￿EUV￿technology￿beyond￿the￿current
generation￿and￿our￿development￿of￿future￿450mm￿silicon￿wafer￿technology.￿One￿of￿the￿Participating￿Customers,￿Intel,
agreed￿to￿fund￿EUR￿829￿million￿for￿our￿R&D￿projects.￿In￿addition￿Intel￿also￿agreed￿to￿invest￿in￿ordinary￿shares￿equal￿to
15￿percent￿of￿our￿issued￿share￿capital￿(calculated￿giving￿effect￿to￿our￿Synthetic￿Share￿Buyback￿in￿November￿2012).￿Due
to￿the￿equity￿investment,￿Intel￿is￿considered￿a￿related￿party￿of￿ASML￿as￿of￿July￿9,￿2012.

The￿total￿net￿sales￿to￿Intel￿(and￿its￿affiliates)￿in￿2013￿amounted￿to￿EUR￿494.7￿million.￿The￿total￿net￿sales￿to￿Intel￿(and
its￿affiliates)￿for￿the￿period￿from￿July￿9,￿2012￿to￿December￿31,￿2012￿amounted￿to￿EUR￿301.7￿million)￿whereas￿the
outstanding￿balances￿as￿of￿December￿31,￿2013￿amount￿to￿EUR￿(182.3)￿million￿(December￿31,￿2012:￿EUR￿65.0￿million).

There￿have￿been￿no￿transactions￿during￿our￿most￿recent￿fiscal￿year,￿and￿there￿are￿currently￿no￿transactions,￿between
ASML￿or￿any￿of￿its￿subsidiaries,￿and￿any￿other￿significant￿shareholder￿and￿any￿director￿or￿officer￿or￿any￿relative￿or
spouse￿thereof￿other￿than￿ordinary￿course￿compensation￿arrangements.￿During￿our￿most￿recent￿fiscal￿year,￿there￿has
been￿no,￿and￿at￿present￿there￿is￿no,￿outstanding￿indebtedness￿to￿ASML￿owed￿or￿owing￿by￿any￿director￿or￿officer￿of
ASML￿or￿any￿associate￿thereof.

ASML￿ANNUAL￿REPORT￿2013

F-52

30. Subsequent Events
Subsequent￿events￿were￿evaluated￿up￿to￿February￿11,￿2014,￿which￿is￿the￿issuance￿date￿of￿this￿Annual￿Report￿2013.
There￿are￿no￿subsequent￿events￿to￿report.

Veldhoven,￿the￿Netherlands

February￿11,￿2014

￿

￿

￿/s/￿Peter￿T.F.M.￿Wennink
Peter￿T.F.M.￿Wennink
President,￿CEO￿and￿member￿of￿the￿Board￿of￿Management

￿￿

￿

￿/s/￿Wolfgang￿U.￿Nickl
Wolfgang￿U.￿Nickl
Executive￿Vice￿President￿and￿CFO

ASML￿ANNUAL￿REPORT￿2013

F-53

Report of Independent Registered Public Accounting Firm
To:￿the￿Supervisory￿Board￿and￿Shareholders￿of￿ASML￿Holding￿N.V.:

We￿have￿audited￿the￿accompanying￿consolidated￿balance￿sheets￿of￿ASML￿Holding￿N.V.￿and￿subsidiaries￿(collectively,
the￿"Company")￿as￿of￿December￿31,￿2013￿and￿2012,￿and￿the￿related￿consolidated￿statements￿of￿income,￿comprehensive
income,￿shareholders'￿equity,￿and￿cash￿flows￿for￿each￿of￿the￿three￿years￿in￿the￿period￿ended￿December￿31,￿2013￿(all
expressed￿in￿euros).￿We￿also￿have￿audited￿the￿Company's￿internal￿control￿over￿financial￿reporting￿as￿of￿December￿31,
2013,￿based￿on￿criteria￿established￿in￿Internal Control — Integrated Framework (1992)￿issued￿by￿the￿Committee￿of
Sponsoring￿Organizations￿of￿the￿Treadway￿Commission.￿The￿Company's￿management￿is￿responsible￿for￿these￿financial
statements,￿for￿maintaining￿effective￿internal￿control￿over￿financial￿reporting,￿and￿for￿its￿assessment￿of￿the￿effectiveness
of￿internal￿control￿over￿financial￿reporting,￿included￿in￿the￿accompanying￿Management’s￿Report￿on￿Internal￿Control￿over
Financial￿Reporting.￿Our￿responsibility￿is￿to￿express￿an￿opinion￿on￿these￿financial￿statements￿and￿an￿opinion￿on￿the
Company's￿internal￿control￿over￿financial￿reporting￿based￿on￿our￿audits.

We￿conducted￿our￿audits￿in￿accordance￿with￿the￿standards￿of￿the￿Public￿Company￿Accounting￿Oversight￿Board￿(United
States).￿Those￿standards￿require￿that￿we￿plan￿and￿perform￿the￿audit￿to￿obtain￿reasonable￿assurance￿about￿whether￿the
financial￿statements￿are￿free￿of￿material￿misstatement￿and￿whether￿effective￿internal￿control￿over￿financial￿reporting￿was
maintained￿in￿all￿material￿respects.￿Our￿audits￿of￿the￿financial￿statements￿included￿examining,￿on￿a￿test￿basis,￿evidence
supporting￿the￿amounts￿and￿disclosures￿in￿the￿financial￿statements,￿assessing￿the￿accounting￿principles￿used￿and
significant￿estimates￿made￿by￿management,￿and￿evaluating￿the￿overall￿financial￿statement￿presentation.￿Our￿audit￿of
internal￿control￿over￿financial￿reporting￿included￿obtaining￿an￿understanding￿of￿internal￿control￿over￿financial￿reporting,
assessing￿the￿risk￿that￿a￿material￿weakness￿exists,￿and￿testing￿and￿evaluating￿the￿design￿and￿operating￿effectiveness
of￿internal￿control￿based￿on￿the￿assessed￿risk.￿Our￿audits￿also￿included￿performing￿such￿other￿procedures￿as￿we
considered￿necessary￿in￿the￿circumstances.￿We￿believe￿that￿our￿audits￿provide￿a￿reasonable￿basis￿for￿our￿opinions.

A￿company's￿internal￿control￿over￿financial￿reporting￿is￿a￿process￿designed￿by,￿or￿under￿the￿supervision￿of,￿the
company's￿principal￿executive￿and￿principal￿financial￿officers,￿or￿persons￿performing￿similar￿functions,￿and￿effected￿by
the￿company's￿board￿of￿directors,￿management,￿and￿other￿personnel￿to￿provide￿reasonable￿assurance￿regarding￿the
reliability￿of￿financial￿reporting￿and￿the￿preparation￿of￿financial￿statements￿for￿external￿purposes￿in￿accordance￿with
generally￿accepted￿accounting￿principles.￿A￿company's￿internal￿control￿over￿financial￿reporting￿includes￿those￿policies
and￿procedures￿that￿(1)￿pertain￿to￿the￿maintenance￿of￿records￿that,￿in￿reasonable￿detail,￿accurately￿and￿fairly￿reflect
the￿transactions￿and￿dispositions￿of￿the￿assets￿of￿the￿company;￿(2)￿provide￿reasonable￿assurance￿that￿transactions￿are
recorded￿as￿necessary￿to￿permit￿preparation￿of￿financial￿statements￿in￿accordance￿with￿generally￿accepted￿accounting
principles￿and￿that￿receipts￿and￿expenditures￿of￿the￿company￿are￿being￿made￿only￿in￿accordance￿with￿authorizations
of￿management￿and￿directors￿of￿the￿company;￿and￿(3)￿provide￿reasonable￿assurance￿regarding￿prevention￿or￿timely
detection￿of￿unauthorized￿acquisition,￿use,￿or￿disposition￿of￿the￿company's￿assets￿that￿could￿have￿a￿material￿effect￿on
the￿financial￿statements.

Because￿of￿the￿inherent￿limitations￿of￿internal￿control￿over￿financial￿reporting,￿including￿the￿possibility￿of￿collusion
or￿improper￿management￿override￿of￿controls,￿material￿misstatements￿due￿to￿error￿or￿fraud￿may￿not￿be￿prevented￿or
detected￿on￿a￿timely￿basis.￿Also,￿projections￿of￿any￿evaluation￿of￿the￿effectiveness￿of￿the￿internal￿control￿over￿financial
reporting￿to￿future￿periods￿are￿subject￿to￿the￿risk￿that￿the￿controls￿may￿become￿inadequate￿because￿of￿changes￿in
conditions,￿or￿that￿the￿degree￿of￿compliance￿with￿the￿policies￿or￿procedures￿may￿deteriorate.

In￿our￿opinion,￿the￿consolidated￿financial￿statements￿referred￿to￿above￿present￿fairly,￿in￿all￿material￿respects,￿the
financial￿position￿of￿ASML￿Holding￿N.V.￿and￿subsidiaries￿as￿of￿December￿31,￿2013￿and￿2012,￿and￿the￿results￿of￿their
operations￿and￿their￿cash￿flows￿for￿each￿of￿the￿three￿years￿in￿the￿period￿ended￿December￿31,￿2013,￿in￿conformity￿with
accounting￿principles￿generally￿accepted￿in￿the￿United￿States￿of￿America.￿Also,￿in￿our￿opinion,￿the￿Company￿maintained,
in￿all￿material￿respects,￿effective￿internal￿control￿over￿financial￿reporting￿as￿of￿December￿31,￿2013,￿based￿on￿the￿criteria
established￿in￿Internal Control — Integrated Framework (1992)￿issued￿by￿the￿Committee￿of￿Sponsoring￿Organizations￿of
the￿Treadway￿Commission.

/s/￿Deloitte￿Accountants￿B.V.

Eindhoven,￿The￿Netherlands

February￿11,￿2014

ASML￿ANNUAL￿REPORT￿2013

F-54

Exhibit Index

ASML￿ANNUAL￿REPORT￿2013

E-1

Exhibit Index

Exhibit￿No.
1

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

4.18

4.19

4.20

4.21

4.22

4.23

4.24

4.25

4.26

4.27

4.28

4.29

4.30

Description
Articles￿of￿Association￿of￿ASML￿Holding￿N.V.￿(English￿translation)￿(Incorporated￿by￿reference￿to￿Amendment￿No.￿13￿to￿the
Registrant’s,￿Registration￿Statement￿on￿Form￿8-A/A,￿filed￿with￿the￿Commission￿on￿February￿8,￿2013)
Agreement￿between￿ASM￿Lithography￿B.V.￿and￿Carl￿Zeiss,￿dated￿March￿17,￿2000￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿fiscal￿year￿ended￿December￿31,￿2000)￿1
Agreement￿between￿ASML￿Holding￿N.V.￿and￿Carl￿Zeiss,￿dated￿October￿24,￿2003￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2003)￿1
Form￿of￿Indemnity￿Agreement￿between￿ASML￿Holding￿N.V.￿and￿members￿of￿its￿Board￿of￿Management￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2003)
Form￿of￿Indemnity￿Agreement￿between￿ASML￿Holding￿N.V.￿and￿members￿of￿its￿Supervisory￿Board￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2003)
Form￿of￿Employment￿Agreement￿for￿members￿of￿the￿Board￿of￿Management￿(Incorporated￿by￿reference￿to￿the￿Registrant’s
Annual￿Report￿on￿Form￿20-F￿for￿the￿fiscal￿year￿ended￿December￿31,￿2003)
Nikon-ASML￿Patent￿Cross-License￿Agreement,￿dated￿December￿10,￿2004,￿between￿ASML￿Holding￿N.V.￿and￿Nikon
Corporation￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿fiscal￿year￿ended
December￿31,￿2004)￿1
ASML/Zeiss￿Sublicense￿Agreement,￿2004,￿dated￿December￿10,￿2004,￿between￿Carl￿Zeiss￿SMT￿AG￿and￿ASML￿Holding￿N.V.
(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿fiscal￿year￿ended￿December￿31,￿2004)￿1
￿ASML￿New￿Hires￿and￿Incentive￿Stock￿Option￿Plan￿For￿Management￿(Version￿2003)￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Statement￿on￿Form￿S-8,￿filed￿with￿the￿Commission￿on￿September￿2,￿2003￿(File￿No.￿333-109154))
￿ASML￿Incentive￿and￿New￿Hire￿Option￿Plan￿for￿Board￿of￿Management￿(Incorporated￿by￿reference￿to￿the￿Registrant’s
Registration￿Statement￿on￿Form￿S-8,￿filed￿with￿the￿Commission￿on￿June￿9,￿2004￿(File￿No.￿333-116337))
￿ASML￿Option￿Plan￿for￿Management￿of￿ASML￿Holding￿Group￿Companies￿(Incorporated￿by￿reference￿to￿the￿Registrant’s
Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿June￿30,￿2005￿(file￿No.￿333-126340))
￿ASML￿Stock￿Option￿Plan￿for￿New￿Hire￿Options￿granted￿to￿Members￿of￿the￿Board￿of￿Management￿(Version￿April￿2006)
(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿August￿7,
2006￿(file￿No.￿333-136362))
￿ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿April
2006)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on
August￿7,￿2006￿(file￿No.￿333-136362))
￿ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿July
2006)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on
August￿7,￿2006￿(file￿No.￿333-136362))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version
October￿2006)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the
Commission￿on￿August￿7,￿2006￿(file￿No.￿333-136362))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿January
2007)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on
July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿April
2007)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on
July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version￿July
2007)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on
July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Stock￿Option￿Plan￿for￿Incentive￿or￿New￿Hire￿Options￿granted￿to￿Senior￿and￿Executive￿Management￿(Version
October￿2007)￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the
Commission￿on￿July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Performance￿Stock￿Plan￿for￿Members￿of￿the￿Board￿of￿Management￿(Version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Performance￿Stock￿Option￿Plan￿for￿Members￿of￿the￿Board￿of￿Management￿(Version￿2)￿(Incorporated￿by￿reference￿to
the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿July￿5,￿2007￿(file￿No.￿333-144356))
ASML￿Stock￿Option￿Plan￿from￿Base￿Salary￿for￿Senior￿&￿Executive￿Management￿(Version￿October￿2007)￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿November￿2,￿2007￿(file￿No.
333-147128))
ASML￿Performance￿Stock￿Option￿Plan￿for￿Senior￿and￿Executive￿Management￿(version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s.￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿August￿29,￿2008￿(file￿No.￿333-153277))
ASML￿Performance￿Share￿Plan￿for￿Senior￿and￿Executive￿Management￿(version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿August￿29,￿2008￿(file￿No.￿333-153277))
ASML￿Performance￿Stock￿Plan￿for￿Members￿of￿the￿Board￿of￿Management￿(Incorporated￿by￿reference￿to￿the￿Registrant’s
Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿October￿13,￿2009￿(file￿No.￿333-162439))
ASML￿Performance￿Stock￿Option￿Plan￿for￿Senior￿and￿Executive￿Management￿(version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s.￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿October￿13,￿2009￿(file￿No.￿333-162439))
ASML￿Performance￿Share￿Plan￿for￿Senior￿and￿Executive￿Management￿(version￿1)￿(Incorporated￿by￿reference￿to￿the
Registrant’s￿Registration￿Statement￿on￿Form￿S-8￿filed￿with￿the￿Commission￿on￿October￿13,￿2009￿(file￿No.￿333-162439))
Investment￿Agreement￿between￿ASML￿Holding￿N.V.￿and￿Intel￿Corporation,￿dated￿July￿9,￿2012￿(Incorporated￿by￿reference
to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2012)
450mm￿NRE￿Funding￿Agreement￿between￿ASML￿Holding￿N.V.,￿and￿Intel￿Corporation,￿dated￿July￿9,￿2012￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2012)1
EUV￿NRE￿Funding￿Agreement￿between￿ASML￿Holding￿N.V.,￿and￿Intel￿Corporation,￿dated￿July￿9,￿2012￿(Incorporated￿by
reference￿to￿the￿Registrant’s￿Annual￿Report￿on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2012)1
Shareholder￿Agreement￿between￿ASML￿Holding￿N.V.￿and￿Intel￿Holdings￿B.V.,￿Intel￿Corporation￿and￿Stichting
Administratiekantoor￿MAKTSJAB￿dated￿September￿12,￿2012￿(Incorporated￿by￿reference￿to￿the￿Registrant’s￿Annual￿Report
on￿Form￿20-F￿for￿the￿year￿ended￿December￿31,￿2012)

ASML￿ANNUAL￿REPORT￿2013

E-2

Exhibit￿No.
4.31

8.1
12.1
13.1

15.1
101.INS
101.SCH
101.CAL
101.DEF
101.LAB
101.PRE

Description
Agreement￿and￿Plan￿of￿Merger￿by￿and￿among￿ASML￿Holding￿N.V.,￿Kona￿Acquisition￿Company,￿Inc.￿Cymer,￿Inc.￿and
certain￿other￿parties￿set￿forth￿therein,￿date￿October￿16,￿2012￿(incorporated￿by￿reference￿to￿Annex￿A￿to￿the￿Registrant's
Registration￿Statement￿on￿Form￿F-4￿filed￿with￿the￿Commission￿on￿November￿21,￿2012￿(file￿No.￿333-185120))
List￿of￿Main￿Subsidiaries2
Certification￿of￿CEO￿and￿CFO￿Pursuant￿to￿Rule￿13a-14(a)￿of￿the￿Securities￿Exchange￿Act￿of￿1934￿2
Certification￿of￿CEO￿and￿CFO￿Pursuant￿to￿Rule￿13a-14(b)￿of￿the￿Securities￿Exchange￿Act￿of￿1934￿and￿18￿U.S.C.￿Section
1350￿as￿Adopted￿Pursuant￿to￿Section￿906￿of￿the￿Sarbanes-Oxley￿Act￿of￿20022
Consent￿of￿Deloitte￿Accountants￿B.V.2
XBRL￿Instance￿Document2
XBRL￿Taxonomy￿Extension￿Schema￿Document￿2
XBRL￿Taxonomy￿Extension￿Calculation￿Linkbase￿Document￿2
XBRL￿Taxonomy￿Extension￿Definition￿Linkbase￿Document￿2
XBRL￿Taxonomy￿Extension￿Label￿Linkbase￿Document￿2
XBRL￿Taxonomy￿Extension￿Presentation￿Linkbase￿Document￿2

Certain￿information￿omitted￿pursuant￿to￿a￿request￿for￿confidential￿treatment￿filed￿separately￿with￿the￿Securities￿and￿Exchange￿Commission.
Filed￿at￿the￿Commission￿herewith.

1
2

￿

ASML￿ANNUAL￿REPORT￿2013

E-3

Exhibit 8.1

List of Main Subsidiaries

Legal Entity

Country of Incorporation

Main subsidiaries of ASML Holding N.V.1:
ASML￿Netherlands￿B.V.
ASML￿MaskTools￿B.V.
ASML￿Systems￿B.V.
ASML￿Germany￿GmbH
ASML￿France￿S.a.r.l.
ASML￿(UK)￿Ltd.
ASML￿Israel￿(2001)￿Ltd.
ASML￿Ireland￿Ltd.
ASML￿Italy￿S.r.l.
ASML￿Hong￿Kong￿Ltd.
ASML￿Singapore￿Pte.￿Ltd.
ASML￿Korea￿Co.￿Ltd.
ASML￿Japan￿Co.￿Ltd.
ASML￿Lithography￿Facilities￿Science￿and￿Technology￿Co.￿Ltd.
ASML￿Taiwan￿Ltd.
ASML￿Equipment￿Malaysia￿Sdn.￿Bhd.
ASML￿Belgium￿BVBA
ASML￿Belgium￿Finance￿CV
Brion￿Technologies￿(Shenzhen)￿Co.￿Ltd.
Brion￿Technologies,￿Inc.
ASML￿US,￿Inc.
ASML￿Capital￿US,￿Inc.
ASML￿MaskTools,￿Inc.
ASML￿Participations￿US￿Inc.
Lehrer￿Pearson,￿Inc.
ASML￿Ventures￿1,￿Inc.
Cymer,￿LLC.
eLith￿LLC.
ASML￿Hong￿Kong￿Logistic￿Services￿Ltd.
Cymer￿B.V.
Cymer￿Japan,￿Inc.
Cymer￿Korea,￿Inc.
Cymer￿Singapore￿Pte￿Ltd.
Cymer￿Southeast￿Asia￿Ltd.
Cymer￿Semiconductor￿Equipment￿(Shanghai)￿Co.￿Ltd.
TCZ,￿LLC.
TCZ￿Pte￿Ltd.
TCZ￿GmbH

Netherlands￿(Veldhoven)
Netherlands￿(Veldhoven)
Netherlands￿(Veldhoven)
Germany￿(Dresden)
France￿(Montbonnot)
UK￿(Paisley￿(Scotland))
Israel￿(Ramat-Gan)
Ireland￿(Dublin)
Italy￿(Avezzano)
Hong￿Kong￿SAR
Singapore
Korea￿(Kyunggi-Do)
Japan￿(Kawasaki-shi,￿Kanagawa-Ken)
China￿(Tianjin)
Taiwan￿(Hsinchu)
Malaysia￿(Penang)
Belgium￿(Essen)
Belgium￿(Essen)
China￿(Shenzhen)
US￿(Wilmington,￿Delaware)
US￿(Wilmington,￿Delaware)
US￿(Wilmington,￿Delaware)
US￿(Dover,￿Delaware)
US￿(Wilmington,￿Delaware)
US￿(Wilmington,￿Delaware)
US￿(Wilmington,￿Delaware)
US￿(Reno,￿Nevada)
US￿(Wilmington,￿Delaware)
Hong￿Kong￿SAR
Netherlands￿(Amsterdam)
Japan￿(Tokyo)
Korea￿(Kyunggi-Do)
Singapore￿(Singapore)
Taiwan￿(Hsinchu)
China￿(Pudong)
US￿(Reno,￿Nevada)
Singapore￿(Singapore)
Germany￿(Oberkochen)

1

All￿of￿our￿subsidiaries￿are￿(directly￿or￿indirectly)￿wholly-owned,￿with￿exception￿of￿eLith￿LLC,￿in￿which￿we￿hold￿an￿interest￿of￿50￿percent.

ASML￿ANNUAL￿REPORT￿2013

E-4

Exhibit 12.1

Certification of the Chief Executive Officer

I,￿Peter￿T.F.M.￿Wennink,￿certify￿that:

1.￿I￿have￿reviewed￿this￿Annual￿Report￿on￿Form￿20-F￿of￿ASML￿Holding￿N.V.;

2.￿Based￿on￿my￿knowledge,￿this￿report￿does￿not￿contain￿any￿untrue￿statement￿of￿a￿material￿fact￿or￿omit￿to￿state￿a
material￿fact￿necessary￿to￿make￿the￿statements￿made,￿in￿light￿of￿the￿circumstances￿under￿which￿such￿statements￿were
made,￿not￿misleading￿with￿respect￿to￿the￿period￿covered￿by￿this￿report;

3.￿Based￿on￿my￿knowledge,￿the￿Financial￿Statements,￿and￿other￿financial￿information￿included￿in￿this￿report,￿fairly
present￿in￿all￿material￿respects￿the￿financial￿condition,￿results￿of￿operations￿and￿cash￿flows￿of￿the￿company￿as￿of,￿and
for,￿the￿periods￿presented￿in￿this￿report;

4.￿The￿company's￿other￿certifying￿officer(s)￿and￿I￿are￿responsible￿for￿establishing￿and￿maintaining￿disclosure￿controls
and￿procedures￿(as￿defined￿in￿Exchange￿Act￿Rules￿13a-15(e)￿and￿15d-15(e))￿and￿internal￿control￿over￿financial￿reporting
(as￿defined￿in￿Exchange￿Act￿Rules￿13a-15(f)￿and￿15d-15(f))for￿the￿company￿and￿have:
a)￿Designed￿such￿disclosure￿controls￿and￿procedures,￿or￿caused￿such￿disclosure￿controls￿and￿procedures￿to￿be
designed￿under￿our￿supervision,￿to￿ensure￿that￿material￿information￿relating￿to￿the￿company,￿including￿its￿consolidated
subsidiaries,￿is￿made￿known￿to￿us￿by￿others￿within￿those￿entities,￿particularly￿during￿the￿period￿in￿which￿this￿report￿is
being￿prepared;
b)￿Designed￿such￿internal￿control￿over￿financial￿reporting,￿or￿caused￿such￿internal￿control￿over￿financial￿reporting￿to￿be
designed￿under￿our￿supervision,￿to￿provide￿reasonable￿assurance￿regarding￿the￿reliability￿of￿financial￿reporting￿and￿the
preparation￿of￿Financial￿Statements￿for￿external￿purposes￿in￿accordance￿with￿generally￿accepted￿accounting￿principles;
c)￿Evaluated￿the￿effectiveness￿of￿the￿company’s￿disclosure￿controls￿and￿procedures￿and￿presented￿in￿this￿report￿our
conclusions￿about￿the￿effectiveness￿of￿the￿disclosure￿controls￿and￿procedures,￿as￿of￿the￿end￿of￿the￿period￿covered￿by
this￿report￿based￿on￿such￿evaluation;￿and
d)￿Disclosed￿in￿this￿report￿any￿change￿in￿the￿company’s￿internal￿control￿over￿financial￿reporting￿that￿occurred￿during
the￿period￿covered￿by￿the￿Annual￿Report￿that￿has￿materially￿affected,￿or￿is￿reasonably￿likely￿to￿materially￿affect,￿the
company’s￿internal￿control￿over￿financial￿reporting;￿and

5.￿The￿company’s￿other￿certifying￿officer(s)￿and￿I￿have￿disclosed,￿based￿on￿our￿most￿recent￿evaluation￿of￿internal￿control
over￿financial￿reporting,￿to￿the￿company’s￿auditors￿and￿the￿audit￿committee￿of￿the￿company's￿board￿of￿directors￿(or
persons￿performing￿the￿equivalent￿functions):
a)￿All￿significant￿deficiencies￿and￿material￿weaknesses￿in￿the￿design￿or￿operation￿of￿internal￿control￿over￿financial
reporting￿which￿are￿reasonably￿likely￿to￿adversely￿affect￿the￿company’s￿ability￿to￿record,￿process,￿summarize￿and￿report
financial￿information;￿and
b)￿Any￿fraud,￿whether￿or￿not￿material,￿that￿involves￿management￿or￿other￿employees￿who￿have￿a￿significant￿role￿in￿the
company’s￿internal￿control￿over￿financial￿reporting.

Date:￿February￿11,￿2014

￿

/s/￿Peter￿T.F.M.￿Wennink
Peter￿T.F.M.￿Wennink
President,￿CEO￿and￿member￿of￿the￿Board￿of￿Management

ASML￿ANNUAL￿REPORT￿2013

E-5

Certification of the Chief Financial Officer

I,￿Wolfgang￿U.￿Nickl,￿certify￿that:

1.￿I￿have￿reviewed￿this￿Annual￿Report￿on￿Form￿20-F￿of￿ASML￿Holding￿N.V.;

2.￿Based￿on￿my￿knowledge,￿this￿report￿does￿not￿contain￿any￿untrue￿statement￿of￿a￿material￿fact￿or￿omit￿to￿state￿a
material￿fact￿necessary￿to￿make￿the￿statements￿made,￿in￿light￿of￿the￿circumstances￿under￿which￿such￿statements￿were
made,￿not￿misleading￿with￿respect￿to￿the￿period￿covered￿by￿this￿report;

3.￿Based￿on￿my￿knowledge,￿the￿Financial￿Statements,￿and￿other￿financial￿information￿included￿in￿this￿report,￿fairly
present￿in￿all￿material￿respects￿the￿financial￿condition,￿results￿of￿operations￿and￿cash￿flows￿of￿the￿company￿as￿of,￿and
for,￿the￿periods￿presented￿in￿this￿report;

4.￿The￿company’s￿other￿certifying￿officer(s)￿and￿I￿are￿responsible￿for￿establishing￿and￿maintaining￿disclosure￿controls￿and
procedures￿(as￿defined￿in￿Exchange￿Act￿Rules￿13a-15(e)￿and￿15d-15(e))￿and￿internal￿control￿over￿financial￿reporting￿(as
defined￿in￿Exchange￿Act￿Rules￿13a-15(f)￿and￿15d-15(f))for￿the￿company￿and￿have:
a)￿Designed￿such￿disclosure￿controls￿and￿procedures,￿or￿caused￿such￿disclosure￿controls￿and￿procedures￿to￿be
designed￿under￿our￿supervision,￿to￿ensure￿that￿material￿information￿relating￿to￿the￿company,￿including￿its￿consolidated
subsidiaries,￿is￿made￿known￿to￿us￿by￿others￿within￿those￿entities,￿particularly￿during￿the￿period￿in￿which￿this￿report￿is
being￿prepared;
b)￿Designed￿such￿internal￿control￿over￿financial￿reporting,￿or￿caused￿such￿internal￿control￿over￿financial￿reporting￿to￿be
designed￿under￿our￿supervision,￿to￿provide￿reasonable￿assurance￿regarding￿the￿reliability￿of￿financial￿reporting￿and￿the
preparation￿of￿Financial￿Statements￿for￿external￿purposes￿in￿accordance￿with￿generally￿accepted￿accounting￿principles;
c)￿Evaluated￿the￿effectiveness￿of￿the￿company’s￿disclosure￿controls￿and￿procedures￿and￿presented￿in￿this￿report￿our
conclusions￿about￿the￿effectiveness￿of￿the￿disclosure￿controls￿and￿procedures,￿as￿of￿the￿end￿of￿the￿period￿covered￿by
this￿report￿based￿on￿such￿evaluation;￿and
d)￿Disclosed￿in￿this￿report￿any￿change￿in￿the￿company’s￿internal￿control￿over￿financial￿reporting￿that￿occurred￿during
the￿period￿covered￿by￿the￿Annual￿Report￿that￿has￿materially￿affected,￿or￿is￿reasonably￿likely￿to￿materially￿affect,￿the
company’s￿internal￿control￿over￿financial￿reporting;￿and

5.￿The￿company’s￿other￿certifying￿officer(s)￿and￿I￿have￿disclosed,￿based￿on￿our￿most￿recent￿evaluation￿of￿internal￿control
over￿financial￿reporting,￿to￿the￿company’s￿auditors￿and￿the￿audit￿committee￿of￿the￿company's￿board￿of￿directors￿(or
persons￿performing￿the￿equivalent￿functions):
a)￿All￿significant￿deficiencies￿and￿material￿weaknesses￿in￿the￿design￿or￿operation￿of￿internal￿control￿over￿financial
reporting￿which￿are￿reasonably￿likely￿to￿adversely￿affect￿the￿company’s￿ability￿to￿record,￿process,￿summarize￿and￿report
financial￿information;￿and
b)￿Any￿fraud,￿whether￿or￿not￿material,￿that￿involves￿management￿or￿other￿employees￿who￿have￿a￿significant￿role￿in￿the
company’s￿internal￿control￿over￿financial￿reporting.

￿

Date:￿February￿11,￿2014

￿

/s/￿Wolfgang￿U.￿Nickl
Wolfgang￿U.￿Nickl
Executive￿Vice￿President￿and￿CFO

ASML￿ANNUAL￿REPORT￿2013

E-6

Exhibit 13.1

Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002

In￿connection￿with￿the￿Annual￿Report￿on￿Form￿20-F￿of￿ASML￿Holding￿N.V.￿for￿the￿fiscal￿year￿ended￿December￿31,￿2013
as￿filed￿with￿the￿SEC￿on￿the￿date￿hereof,￿Peter￿T.F.M.￿Wennink,￿as￿CEO￿of￿the￿Company,￿and￿Wolfgang￿U.￿Nickl,￿as￿CFO
of￿the￿Company,￿each￿hereby￿certifies,￿pursuant￿to￿18￿U.S.C.￿Section￿1350,￿as￿adopted￿pursuant￿to￿Section￿906￿of￿the
Sarbanes-Oxley￿Act￿of￿2002,￿that,￿to￿the￿best￿of￿his￿knowledge:

(1)The￿Report￿fully￿complies￿with￿the￿requirements￿of￿Section￿13(a)￿or￿15(d)￿of￿the￿Exchange￿Act;￿and

(2)The￿information￿contained￿in￿the￿Report￿fairly￿presents,￿in￿all￿material￿respects,￿the￿financial￿condition￿and￿results￿of
operations￿of￿the￿issuer.

￿

￿￿

/s/￿Peter￿T.M.F.￿Wennink
Name:￿Peter￿T.M.F.￿Wennink
Title:￿President,￿CEO￿and￿member￿of￿the￿Board￿of￿Management
Date:￿February￿11,￿2014

￿

￿

/s/￿Wolfgang￿U.￿Nickl
Name:￿Wolfgang￿U.￿Nickl
Title:￿Executive￿Vice￿President￿and￿CFO
Date:￿February￿11,￿2014

A￿signed￿original￿of￿this￿written￿statement￿required￿by￿Section￿906￿of￿the￿Sarbanes-Oxley￿Act￿of￿2002￿has￿been￿provided
to￿the￿Company￿and￿will￿be￿retained￿by￿the￿Company￿and￿furnished￿to￿the￿SEC￿or￿its￿staff￿upon￿request.

This￿certification￿accompanies￿the￿Report￿pursuant￿to￿section￿906￿of￿the￿Sarbanes-Oxley￿Act￿of￿2002￿and￿shall￿not,
except￿to￿the￿extent￿required￿by￿the￿Sarbanes-Oxley￿Act￿of￿2002,￿be￿deemed￿filed￿by￿the￿Company￿for￿purposes￿of
section￿18￿of￿the￿Securities￿Exchange￿Act￿of￿1934.

ASML￿ANNUAL￿REPORT￿2013

E-7

Exhibit 15.1

Consent of Independent Registered Public Accounting Firm

To￿the￿Supervisory￿Board￿and￿Shareholders￿of￿ASML￿Holding￿N.V.:

We￿consent￿to￿the￿incorporation￿by￿reference￿in￿the￿following￿Registration￿Statements￿on￿Form￿S-8￿(Nos.￿333-109154,
333-105600,￿333-116337,￿333-126340,￿333-136362,￿333-141125,￿333-142254,￿333-144356,￿333-147128,￿333-153277,
333-162439,￿333-170034,￿333-188938,￿333-190023￿and￿333-192951)￿of￿our￿report￿dated￿February￿11,￿2014,￿relating￿to
the￿Financial￿Statements￿of￿ASML￿Holding￿N.V.￿and￿subsidiaries￿(collectively,￿the￿“Company”)￿and￿the￿effectiveness￿of
the￿Company's￿internal￿control￿over￿financial￿reporting,￿appearing￿in￿this￿Annual￿Report￿on￿Form￿20-F￿of￿the￿Company
for￿the￿year￿ended￿December￿31,￿2013.

￿

/s/￿Deloitte￿Accountants￿B.V.
Deloitte￿Accountants￿B.V.
Eindhoven,￿The￿Netherlands
February￿11,￿2014

ASML￿ANNUAL￿REPORT￿2013

E-8

Definitions

Name

ACE

Act

AFM

AGM

AMD

Description

ASML￿Center￿of￿Excellence

The￿Dutch￿Financial￿Markets￿Supervision￿Act￿/￿"Wet￿op￿het￿Financieel￿Toezicht"

Autoriteit￿Financiële￿Markten;￿the￿Netherlands￿Authority￿for￿the￿Financial￿Markets

Annual￿General￿Meeting￿of￿Shareholders

Advanced￿Micro￿Devices,￿Inc.

Annual￿Report

Annual￿Report￿on￿Form￿20-F

ArF

ArFi

ASML

ASP

ASU

BA

BESP

Brion

Canon

Argon￿Fluoride

Argon￿Fluoride￿Immersion

ASML￿Holding￿N.V.￿and￿its￿subsidiaries

Average￿selling￿price

Accounting￿Standards￿Update

Bachelor￿of￿Arts

Best￿Estimate￿of￿Selling￿Price

Brion￿Technologies,￿Inc.

Canon￿Kabushiki￿Kaisha

Canon￿Cross-License
Agreement

ASML￿and￿Canon￿signed￿a￿global￿patent￿cross-license￿agreement￿related￿to￿the￿field￿of
semiconductor￿lithography

CCIP

CD

CEO

CFO

CMO

Customer￿Co-Investment￿Program

Critical￿Dimension

Chief￿Executive￿Officer

Chief￿Financial￿Officer

Chief￿Marketing￿Officer

Code￿of￿Conduct

Code￿of￿ethics￿and￿conduct

CODM

Chief￿Operating￿Decision￿Maker

Commission

The￿United￿States￿Securities￿and￿Exchange￿Commission

Company

ASML￿Holding￿N.V.

CPO

CRMC

Cross-License
Transition￿Period

CRSB

CTO

Chief￿Program￿Officer

Capital￿Research￿&￿Management￿Company

The￿period￿between￿January￿1,￿2010￿and￿December￿31,￿2014

Corporate￿Risk￿and￿Sustainability￿Board

Chief￿Technology￿Officer

Customer￿Stichtingen

Intel￿Stichting￿and￿TSMC￿Stichting￿jointly￿referred.￿Shares￿held￿by￿Participating￿Customers￿in
the￿CCIP,￿are￿held￿through￿Foundations￿that￿issued￿to￿the￿Participating￿Customers￿depository
receipts￿representing￿shares￿held￿by￿these￿Foundations.

Cymer

Formerly￿known￿as￿Cymer,￿Inc.

De￿Nederlandsche
Bank

DPT

DTC

EGM

the￿Dutch￿central￿bank,￿which￿is￿the￿supervisor￿of￿all￿pension￿companies￿in￿the￿Netherlands

Double￿patterning￿technology

Depositary￿Trust￿Company

Extraordinary￿General￿Meeting￿of￿Shareholders

ASML￿ANNUAL￿REPORT￿2013

D-1

Name

EUR

Euro

Eurobonds

Description

Euros

Euros

Our￿EUR￿600￿million￿5.75￿percent￿senior￿notes￿due￿2017￿and￿our￿EUR￿750￿million￿3.375￿percent
senior￿notes￿due￿2023

Euroclear￿Nederland

Nederlands￿Centraal￿Instituut￿voor￿Giraal￿Effectenverkeer￿B.V.

EUV

Extreme￿Ultraviolet

Exchange￿Act

US￿Securities￿Exchange￿Act￿of￿1934

FASB

FMSA

FOM

Financial￿Accounting￿Standards￿Board

Financial￿Markets￿Supervision￿Act￿('Wet￿op￿het￿financieel￿toezicht'￿(Wft))

Foundation￿for￿Fundamental￿Research￿on￿Matter

Foundation

Stichting￿Preferente￿Aandelen￿ASML

FTEs

Full-time￿equivalents

holistic￿lithography

Optimize￿the￿scanner￿performance￿by￿taken￿into￿account￿the￿entire￿chip￿creation￿process,￿from
design￿to￿volume￿manufacturing

IC

imec

Intel

Intercircuit

Interuniversitair￿Micro-Elektronica￿Centrum

Intel￿Corporation

Intel￿450mm￿NRE
Funding￿Agreement

Intel￿EUV￿NRE￿Funding
Agreement

Intel￿Investment
Agreement

Agreement￿related￿to￿the￿development￿of￿450mm￿lithography￿equipment

Agreement￿related￿to￿the￿development￿of￿EUV￿lithography￿equipment

The￿investment￿agreement￿between￿ASML￿and￿Intel

Intel￿NRE￿Funding
Agreements

The￿Intel￿Funding￿Agreements￿related￿to￿the￿development￿of￿450mm￿and￿EUV￿lithography
equipment

Intel￿Stichting

Stichting￿Administratiekantoor￿MAKTSJAB

IRS

KPI

KrF

Logic

MBA

Memory

NA

NASDAQ

New￿York￿Transfer
Agent

NID

Nikon

Internal￿Revenue￿Service

Key￿Performance￿Indicator

Krypton￿Fluoride

Micro-processor￿manufacturers￿and￿Foundries

Master￿of￿Business￿Administration

NAND-Flash￿memory￿and￿DRAM￿memory￿chipmakers

Numerical￿aperture

NASDAQ￿Stock￿Market￿LLC

J.P.￿Morgan￿Chase￿Bank,￿N.A.,￿4￿New￿York￿Plaza,￿New￿York,￿New￿York

Notional￿Interest￿Deduction

Nikon￿Corporation

Nikon￿Cross-License
Agreement

A￿patent￿Cross-License￿agreement￿between￿Nikon,￿ASML￿and￿Zeiss,￿related￿to￿lithography
equipment￿used￿to￿manufacture￿semiconductor￿devices

nm

Nanometer￿(one￿billionth￿of￿a￿meter)

Non-Resident￿Holder

a￿holder￿of￿ordinary￿shares￿who￿is￿not,￿or￿is￿not￿deemed￿to￿be,￿a￿resident￿of￿the￿Netherlands￿for
Dutch￿tax￿purposes

NPV

NRE

Net￿Present￿Value

Non￿Recurring￿Engineering

NRE￿Funding
Agreements

The￿Intel￿NRE￿Funding￿Agreements,￿the￿TSMC￿NRE￿Funding￿Agreement,￿and￿the￿Samsung￿NRE
Funding￿Agreement

ASML￿ANNUAL￿REPORT￿2013

D-2

Name

NWO

NXE

Description

Netherlands￿Organisation￿for￿Scientific￿Research

NXE￿platform;￿a￿new￿platform￿utilizing￿the￿concepts￿of￿the￿TWINSCAN￿platform￿with￿complete
new￿technologies￿in￿three￿areas:￿light￿source,￿lens￿system,￿and￿vacuum￿body

NXE:3100

NXE:3300B

Second-generation￿EUV￿systems

Third-generation￿EUV￿systems

NXT

OCI

OPC

TWINSCAN￿NXT￿systems;￿an￿improved￿version￿of￿the￿TWINSCAN￿systems,￿introducing￿new
stages￿and￿stage￿position￿control￿technology,￿which￿enables￿improved￿imaging￿and￿overlay.

Other￿Comprehensive￿Income

Optical￿Proximity￿Correction

Participating￿customers Collective￿of￿the￿participants￿of￿the￿Customer￿Co-Investment￿Program;￿Intel￿Corporation

(“Intel”),￿Taiwan￿Semiconductor￿Manufacturing￿Company￿Ltd.￿(“TSMC”)￿and￿Samsung
Electronics￿Corporation￿(“Samsung”)

PFIC

PME

Preference￿Share
Option

R&D

RDA

RET

RU

RU￿ASML

Samsung

Samsung￿Investment
Agreement

Samsung￿NRE￿Funding
Agreement

SEC

SG&A

Passive￿Foreign￿Investment￿Company

Bedrijfstakpensioenfonds￿Metalektro

An￿option￿to￿acquire￿cumulative￿preference￿shares￿in￿our￿capital

Research￿and￿Development

Research￿and￿Development￿Deduction￿("Research￿and￿Development￿Aftrek")

Resolution￿Enhancement￿Techniques

Reporting￿Unit

Reporting￿Unit￿ASML

Samsung￿Electronics￿Corporation

The￿investment￿agreement￿between￿ASML￿and￿Samsung

ASML￿and￿Samsung￿entered￿into￿the￿Samsung￿NRE￿funding￿agreement

The￿United￿States￿Securities￿and￿Exchange￿Commission

Selling,￿General￿and￿Administrative

Shareholder￿Agreement In￿connection￿with￿the￿issuance￿of￿shares￿pursuant￿to￿the￿Intel￿Investment￿Agreement,￿on

September￿12,￿2012￿ASML,￿Intel￿and￿the￿Intel￿Stichting￿entered￿into￿a￿shareholder￿agreement
(we￿refer￿to￿page￿F-50)

SMO

STI

Source-Mask￿Optimization

Short-term￿incentive

the￿Intel￿Investment
Agreement

The￿investment￿agreement￿between￿ASML￿and￿Intel

TPE

Third-Party￿Evidence

Transfer￿Agent
Agreement

Treaty

TSMC

TSMC￿Investment
Agreement

TSMC￿NRE￿Funding
Agreement

Agreement￿about￿transfer,￿registrar￿and￿dividend￿disbursement

The￿Tax￿Treaty￿Between￿the￿United￿States￿and￿the￿Netherlands￿for￿the￿Avoidance￿of￿Double
Taxation￿and￿the￿Prevention￿of￿Fiscal￿Evasion￿with￿Respect￿to￿Taxes￿on￿Income

Taiwan￿Semiconductor￿Manufacturing￿Company￿Ltd.

The￿investment￿agreement￿between￿ASML￿and￿TSMC

ASML￿and￿TSMC￿entered￿into￿the￿TSMC￿NRE￿funding￿agreement

TSMC￿Stichting

Stichting￿Administratiekantoor￿TSMC

U.S.￿dollars

US￿GAAP

United￿States￿dollars

Generally￿accepted￿accounting￿principles￿in￿the￿United￿States￿of￿America￿

ASML￿ANNUAL￿REPORT￿2013

D-3

Name

USD

UvA

VIE

Description

United￿States￿dollars

University￿of￿Amsterdam

Variable￿interest￿entity

VIE￿Shareholders

Syndicate￿of￿three￿banks￿solely￿for￿the￿purpose￿of￿leasing￿the￿headquarter￿in￿Veldhoven

VLSI￿Research

An￿independent￿industry￿research￿firm￿that￿surveyed￿customers￿representing￿95.0￿percent￿of￿the
world’s￿total￿semiconductor￿market

VSOE

VU

WACC

Wavelength

Vendor-Specific￿Objective￿Evidence

VU￿University￿Amsterdam

Weighted￿Average￿Cost￿of￿Capital

The￿frequency￿of￿light￿going￿through￿projection￿lenses;￿the￿shorter￿the￿wavelength,￿the￿smaller
the￿line-width￿and￿the￿finer￿the￿pattern￿on￿the￿IC

Wijdeven￿Motion

Wijdeven￿Motion￿Holding￿B.V.￿and￿Wijdeven￿Motion￿B.V.￿together

XT

XT:1700i

YieldStar

Zeiss

Second￿-￿generation￿TWINSCAN,￿for￿200￿nm￿and￿300￿mm￿wafer￿sizes.

TWINSCAN￿XT:1700i

Advanced￿wafer￿metrology￿system

Carl￿Zeiss￿SMT￿AG

ASML￿ANNUAL￿REPORT￿2013

D-4

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