Asml 2013

13
StatutoryAnnual
Report2013
Statutory Annual Report 2013
Contents
1
Board of Management
Supervisory Board
Supervisory Board Report
11
Corporate Governance Paragraph
33
Management Board Report
57
Directors Responsibility Statement
59
Consolidated Financial Statements
131
Company Financial Statements
143
Other Information
147
Information and Investor Relations
149
ASML Worldwide Contact Information
150
Definitions
AsummaryofallabbreviationsandtechnicaltermsusedinthisStatutoryAnnualReportissetforthonpage150.
Thisreportcomprisesregulatedinformationwithinthemeaningofarticles1:1and5:25coftheDutchFMSA.
Inthisreportthename"ASML"issometimesusedforconvenienceincontextswherereference
ismadetoASMLHoldingN.V.and/oranyofitssubsidiariesingeneral.Thenameisalsousedwhereno
usefulpurposeisservedbyidentifyingtheparticularcompanyorcompanies.
2014,ASMLHoldingN.V.AllRightsReserved
ASMLSTATUTORYANNUALREPORT2013
Board of Management
Peter T.F.M. Wennink (1957)

President,ChiefExecutiveOfficerand
MemberoftheBoardofManagement
Appointedin1999
Dutchnationality
Martin A. van den Brink (1957)
President,ChiefProductandTechnologyOfficerand
Appointedin1999
Dutchnationality
Frits J. van Hout (1960)
ExecutiveVicePresident,ChiefProgramOfficerand
Appointedin2009
Dutchnationality
Frdric J.M. Schneider-Maunoury (1961)
ExecutiveVicePresident,ChiefOperationsOfficerand
Appointedin2010
Frenchnationality
1) Mr.Nickl'sappointmenttoASML'sBoardofManagementissubjecttothenotificationoftheAGM,scheduledtobeheldonApril23,2014.
Supervisory Board
Arthur P.M. van der Poel (1948)
Chairman
FormermemberoftheBoardofManagementofRoyalPhilipsElectronicsN.V.
Firstappointed2004
Currenttermuntil2016
Dutchnationality
Fritz W. Frhlich (1942)
ViceChairman
FormerDeputyChairmanandChiefFinancialOfficerofAkzoNobelN.V.
Firstappointed2004
Germannationality
Hendrika (Ieke) C.J. van den Burg (1952)
MemberoftheDutchMonitoringCommitteeCorporateGovernanceCode
Firstappointed2005
Dutchnationality
OB Bilous (1938)
FormerGeneralManagerandVicePresidentWorldwideManufacturingofIBMsMicroelectronicsDivision
Firstappointed2005
UnitedStatesnationality
Pauline F.M. van der Meer Mohr (1960)
PresidentoftheExecutiveBoardoftheErasmusUniversityRotterdam
Firstappointed2009
Dutchnationality
Wolfgang H. Ziebart (1950)
GroupEngineeringDirectorofJaguarLandRoverLtd.
Firstappointed2009
Germannationality
Clara (Carla) M.S. Smits-Nusteling (1966)
FormerCFOandmemberoftheBoardofManagementofRoyalKPNN.V.
Firstappointed2013
Dutchnationality
Douglas A. Grose (1950)
FormerCEOofGlobalFoundries
Firstappointed2013
UnitedStatesnationality
Supervisory Board Report

Inthissectionofthe2013StatutoryAnnualReportofASML,theSupervisoryBoardreportsonitsactivitiesin2013,and
ontheinformationrequiredtobeprovidedinthisreportbasedontheCode.
Overview of 2013
2013wasanexcitingyearforASMLwiththeexecutionoftheCCIPandtheintegrationofCymerintoASMLafterthe
acquisitionwassuccessfullycompletedonMay30,2013.Thesetransactionswereenteredintowiththemainpurpose
toacceleratethedevelopmentofnextgenerationlithographytechnologies.In2013,importantprogresswasmade
withtheEUVtechnology.ASMLalsodeliverednextgenerationimmersionsystemssupportingmultiplepatterning
requirementsforthenextfewyears.Thevalueofholisticlithoproductsfurtherincreased.Alsofromafinancialpointof
view,2013wasagoodyearforASMLwithnetsalesofEUR5,245.3millionandnetincomeofEUR1,193.8million.In
2013,ASMLreturnedmorethanEUR500millioncashtoshareholdersthroughcombineddividendandsharebuybacks.
BoththeCCIPaswellastheintegrationofCymerresultedinadditionalprojectsandworkforASML,requiringadditional
technicallyskilledandqualifiedresources,whichremainsakeychallengeforASML.TheASMLworkforcegrewto
13,225employees(FTE)in2013.
TheSupervisoryBoardextensivelydiscussedthesetopicsthroughouttheyear.Anotherimportanttopicin2013forthe
SupervisoryBoardanditsSelectionandNominationCommittee,werethepreparationsfortheleadershipchangeswithin
theBoardofManagement,aspublishedinApril2013.
OnJuly1,2013,Mr.E.(Eric)MeuricesteppeddownasASMLsPresidentandCEO,andatthatsamedate,Mr.P.T.F.M.
(Peter)WenninkwasappointedPresidentandCEO,whereasMr.M.A.(Martin)vandenBrinkwasappointedPresident
andCTO,thisconstitutingdualleadershipinASML.Mr.MeuriceagreedtocontinueasChairmanofASMLHolding
N.V.toactasadvisertoASMLsleadershipandSupervisoryBoarduntiltheendofhisemploymentcontractonMarch
31,2014,ensuringasmoothandcomprehensivetransition.Mr.WenninkcontinuedtoactasinterimCFO,untilthe
appointmentofhissuccessor.PerDecember1,2013,Mr.W.U.(Wolfgang)NickljoinedASMLassuccessorofMr.
WenninkandwasappointedEVPandCFOofASML.ThenotificationofhisappointmentasmemberofASML'sBoardof
Managementforaperiodoffouryearswillbeputonthe2014AGMagenda.
InviewoftheexpirationofMr.F.J.M.(Frederic)Schneider-MaunourysfirstfouryeartermasmemberofASMLsBoard
ofManagementperthe2014AGM,theSupervisoryBoarddiscussedtheextensionofhistenureasmemberofASMLs
BoardofManagement.InviewofhisvaluablecontributiontoASMLsBoardofManagementinthepastfouryears,the
SupervisoryBoarddecidedtoextendMr.Schneider-MaunourysmembershiponASMLsBoardofManagementfor
anothertermoffouryears,subjecttonotificationtothe2014AGM.
TheemploymentagreementsofMessrs.WenninkandVandenBrinkwereamendedperJuly1,2013tochangetheir
appointmentfromanindefinitetermtoadefinitetermoffouryears.Thereappointmenttermwillcomeintoeffectupon
notificationtothe2014AGM.Inaddition,anotheramendmenttotheemploymentagreementswastheinclusionofa
severancepayment,ifany,notexceedingoneyearbasesalary.BothamendmentsweremadetocomplywiththeCode.
InlightofthereappointmentofMr.Schneider-MaunouryandtheappointmentofMr.Nicklperthe2014AGM,bothhave
beenofferedmanagementservicesagreements,inlinewiththeLawonManagementandSupervision,whichcameinto
effectonJanuary1,2013.
Anothertopicin2013wasthecompositionoftheSupervisoryBoard.Ms.C.M.S.(Carla)Smits-NustelingandMr.D.A.
(Doug)GrosewereappointedasnewmembersoftheSupervisoryBoardatthe2013AGM.
FurtherdiscussionstookplaceinlightofthesuccessionplanningofthemembersoftheSupervisoryBoardwhowill
retirebasedupontheSupervisoryBoardsrotationschedulein2014andsubsequentyears.Forthefulfillmentof
vacanciesintheSupervisoryBoardseveralfactorsaretakenintoconsideration,amongotherstheintentionincluded
intheSupervisoryBoardsprofileforatleast30percentrepresentationofeachgenderinASMLsSupervisoryBoard,
whichwasreachedwiththeappointmentofMs.Smits-Nusteling,butalsospecificrequirementsincludedintheprofiles
forthesepositions.Importantrequirementsrelatetorelevantknowledgeofandexperiencewithlithographyforthe
semiconductorindustry.
Meetings and Activities of the Supervisory Board

TheSupervisoryBoardheldsix-scheduled-physicalmeetingsin2013;threescheduledconferencecallswereheld
forthepurposeofdiscussingthequarterlyresultsandthepressreleasesrelatedthereto.Inaddition,severalinformal
meetingsandtelephonecallstookplaceamongSupervisoryBoardand/orBoardofManagementmemberstoconsult
witheachotheronvarioustopics.
ThephysicalSupervisoryBoardmeetingsandmeetingsoftheSupervisoryBoardCommitteesareheldduring
severaldays,thusensuringsufficienttimeforthemeetingsanddiscussiononspecificthemes,suchasmanagement
development,operationalperformanceandstrategy.
Tocontinuouslystayabreastofthedevelopmentsinthesemiconductormarket,theBoardofManagementprovides
theSupervisoryBoardeachmeetingwithanoverviewofthemarketsituationatthatmoment,expectationsforthe
nearfuture,thedevelopmentofASMLssharepriceandinvestor/analystfeedbackonASML.Othertopicsaddressed
duringthe2013SupervisoryBoardmeetingswereamongothersASMLsbusinessrisks;investorrelations;business
priorities;thecorporateobjectivesandtargets;andmanagementdevelopmentandsuccessionplanning.Twiceperyear,
thebudgetisreviewedbytheSupervisoryBoard.
TheSupervisoryBoardalsoreviewedASMLsCorporateResponsibilitystrategy,includingtheactions(tobe)
implementedtoachievethetargetssetwithrespecttotheCorporateResponsibilitystrategy.CorporateResponsibility
wasalsoaddressedintheRemunerationCommitteeassustainabilityisalongtermqualitativetargetforthemembersof
theBoardofManagement.
TheattendanceratebothoftheSupervisoryBoardmeetingsandofthemeetingsofthefourCommitteeswascloseto
100percent.
Ingeneral,aftereachSupervisoryBoardmeeting,theSupervisoryBoardmembersmeetintersetodiscussforexample
thefunctioningoftheSupervisoryBoardandoftheBoardofManagementanditsmembers;andanyothertopics
deemedimportantatthattime,suchastheimminentchangesinthecompositionoftheSupervisoryBoard.
DuringallphysicalmeetingsoftheSupervisoryBoard,mostBoardofManagementmemberswerepresent.Alsooutside
themeetings,membersoftheSupervisoryBoardanditsCommitteesinteractedregularlywiththeBoardofManagement
andtheindividualmembers.Also,severalinformalmeetingsandtelephonecallstookplaceamongSupervisoryBoard
memberstoconsultwitheachotheronvarioustopics.
Annually,theSupervisoryBoardandeachofitsCommitteesperformanevaluationrelatedtothefunctioningofthe
SupervisoryBoard,itsCommittees,theindividualmembersandtheSupervisoryBoardschairman,aswellasthe
functioningoftheBoardofManagementandtheindividualmembers.Alsothecompositionofbothbodiesisaddressed.
In2013,anin-depthevaluationoftheSupervisoryBoardwasperformedthistimebyanexternalpartybymeansofa
questionnaireandindividualinterviews,baseduponwhichareportoftheresultswasprepared.Itemsassessedand
subsequentlydiscussedincluded:compositionoftheSupervisoryBoard;themeetinganddecision-makingprocesses,
theindividualcontributionandtherelationshipwithBoardofManagement.Inadditiontotheself-assessmentbythe
SupervisoryBoardmembers,inputwasalsosolicitedandreceivedfromthemembersoftheBoardofManagement,the
CompanySecretaryandtheexternalauditor.
ThemainconclusionsoftheevaluationwereextensivelydiscussedintheSupervisoryBoard,andsubsequently,tothe
extentrelevant,inthevariouscommitteesandwiththeBoardofManagement.
TheSupervisoryBoardhasembeddedthisevaluationprocessinitsprocessesandactivitiesastheSupervisoryBoard
attachesgreatvaluetotheevaluations.Theyensurecontinuousfocusonthequalityoftheactivities,compositionand
functioningoftheSupervisoryBoardanditsCommitteesandrelationshipwiththeBoardofManagement.
Furthermore,asisdoneeachyear,alsoin2013adelegationoftheSupervisoryBoardmettwicewiththeWorks
CouncilofASMLNetherlandsB.V.Thetopicsofthesemeetingsgenerallyevolvearoundimportantinternalandexternal
developmentsrelevantforASMLandtheiremployees,ASMLsfinancialpositionandASMLsstrategy.In2013,focus
wasonEUVandtheoverallperformanceofASML;thecompositionoftheSupervisoryBoard;theremunerationof
theBoardofManagement;andthechangesinleadershipstructureanditsimpactontheASMLorganization.The
SupervisoryBoardconsidersthesemeetingsavaluablecontributiontoitsactivitiesforASML.
Forfurtherdetailsonthestructure,organizationandresponsibilitiesoftheSupervisoryBoard,referenceismadetothe
CorporateGovernanceParagraphofthisStatutoryAnnualReport.
Composition of the Supervisory Board

Currently,theSupervisoryBoardconsistsofeightmembers.FouroftheSupervisoryBoardmembershavetheDutch
nationality,twomembershavetheGermannationalityandtwomembershavetheUnitedStatesnationality.Threeofthe
eightSupervisoryBoardmembersarefemale.Theaverageageis62years,wherebytheagesvaryfrom47to75years.
In2013,Messrs.WesterburgenandSiegleretiredfromtheSupervisoryBoardpertheAGMofApril24,2013.Inaddition,
Mmes.VandenBurgandVanderMeerMohraswellasMr.Ziebartalsoretiredbyrotation.InlinewiththeSupervisory
Boardsrotationschedule,Ms.VandenBurgwasreappointedforamaximumperiodoftwoyears,andMs.VanderMeer
MohrandMr.Ziebartwerereappointedforamaximumtermoffouryears.WithrespecttothereappointmentofMmes.
VandenBurgandVanderMeerMohr,ASMLsWorksCouncilhadastrengthenedrecommendationright.Mr.Grose
andMs.Smits-NustelingwerefirstappointedpertheAGMonApril24,2013.Messrs.BilousandFrhlichwillretireby
rotationperthe2014AGM.Mr.Frhlichindicatedthatheisavailableforreappointment.
Supervisory Board Committees

TheSupervisoryBoardhasinstalledfourCommittees:anAuditCommittee,RemunerationCommittee,Selectionand
NominationCommittee,andTechnologyandStrategyCommittee.EachCommitteeoperatespursuanttoitscharter,
whichisbasedontherulesandregulationsoftheCode,butalsoreflectspracticesdevelopedovertheyears.The
responsibilitiesandauthoritiesoftheCommitteesarebasedonamandateoftheSupervisoryBoard,whereasthe
SupervisoryBoardretainsfullresponsibilityfortheactivitiesofthefourCommittees.TheCommitteespreparethe
decisionstobemadebythefullSupervisoryBoard,eachinitsownfieldofexpertise.
IntheplenarySupervisoryBoardmeetings,theChairmanofeachCommitteeprovidesareport,verballyand/orin
writing,onthetopicsdiscussedduringtheCommitteemeetings.Inaddition,theminutesoftheCommitteemeetingsare
availableforallSupervisoryBoardmembers,sothattheyhaveallinformationsufficienttounderstandASMLscurrent
stateofaffairs,thusensuringthatthefullSupervisoryBoardisabletomaketheappropriatedecisions.
Audit Committee
ThecurrentmembersofASMLsAuditCommitteeareMr.Frhlich(Chairman),Mr.VanderPoelandMs.Smits-Nusteling.
ThemembersoftheAuditCommitteeareallindependent,non-executivemembersoftheSupervisoryBoard.
In2013,theAuditCommitteemetfourtimesandheldfourconferencecalls.Threecallswereheldtodiscussthe
quarterlyresultsandtherelatedpressrelease;onecallwasheldforthepurposeofdiscussingtheresultsoftheyearendauditsUSGAAPandIFRS-EU.
TheAuditCommitteefocusedin2013especiallyonthepurchasepriceallocationwithrespecttotheacquisitionof
Cymer,theimpactoftheacquisitiononASMLsfinancialpositionandresultsofoperations,andanumberofprojects
resultingfromtheexecutionofASMLsfinancingandreturnpolicy,suchastherenewalandincreaseofthecreditfacility,
theissueofthe2023Eurobond,thepartialtenderoftheexisting2017EurobondandtheShareBuybackprogram.A
recurringtopicfortheAuditCommitteeisrevenuerecognition.
Ingeneral,theAuditCommitteecontinuouslymonitorstheactivitiesoftheCorporateRisk&Assurance(InternalAudit)
departmentwithrespecttoASMLsriskmanagement.Inaddition,theAuditCommitteealsomonitorsASML'sinternal
controlsoverfinancialreportinginlightofSection404oftheSarbanes-OxleyActof2002.TheAuditCommitteereviews
andapprovestheauditplansoftheinternalandexternalauditorsandmonitorstheirauditactivities.Annually,theAudit
CommitteereviewsASMLstaxstrategy,taxsystemsandtaxplanning;investorrelations;ASMLsmanagementoftheIT
landscape;andtheactivitiesofASMLsDisclosureCommittee.
TheAuditCommittee(andSupervisoryBoard)agreewithASMLsconservativeprincipleswithrespecttoitsfinancing
policyandreturnpolicy,whichhelpsASMLtorespondproperlytothehighlycyclicalnatureofthesemiconductor
equipmentindustry.
WithrespecttotheexternalauditorsManagementLetteroverthefinancialyear2012,theAuditCommitteeconfirms
thatnoremarksweremadeintheManagementLetterthatneedtobementionedinthisreport.
Ascommunicatedinthe2012AnnualReport,theAuditCommitteeresolvedtoconductextensiveassessmentswith
respecttotheperformanceoftheexternalauditoronabi-annualbasis.Asthelatestextensiveassessmentwas
conductedend2011/early2012,theAuditCommitteeagainconductedanextensiveassessmentover2013bymeans
ofquestionnairestomembersoftheAuditCommitteeandASMLseniormanagement.Aspartoftheevaluationprocess,
thefollowingitemsweretakenintoconsiderationamongothers:thequalityoftheauditworkandauditorsreport,the
sufficiencyandfulfillmentoftheauditengagement,theindependenceoftheauditors,theexpertiseandcomposition
oftheauditteam,andtheauditfee.AreportofthefindingswasdiscussedbytheAuditCommitteewiththeexternal
auditor.Basedonthepositiveoutcomeoftheevaluation,theannualrequesttoreappointtheauditorwillbeproposed
forapprovaltothe2014AGM.
Inanumberofmeetings,thechangesinthelawsrelatedtotheauditprofessionandtheconsequencesforexternal
auditorsingeneralandforASMLsexternalauditorspecificallywerediscussed.
Inordertocomplywiththemandatoryfirmrotation,anewauditorwillbeselectedin2014.Theappointmentofanew
auditorperJanuary1,2016,willbeproposedforapprovaltothe2015AGM.
Selection and Nomination Committee
ThecurrentmembersofASMLsSNCareMr.Bilous(Chairman),Mr.Grose,Mr.FrhlichandMr.VanderPoel.TheSNC
heldthreescheduledmeetingsandseveraladditionalmeetingsonanad-hocbasisin2013.
Asindicatedabove,theSNCpreparedthedecisionfortheSupervisoryBoardfortheleadershipsuccessionwithin
theBoardofManagement.TheappointmentofthePresidentsconstituteddualleadershipwithinASML.TheSNCalso
preparedthedecisionwithrespecttotheextensionofMr.Schneider-Maunourysappointmenttermasmemberofthe
BoardofManagement.ThecompositionoftheSupervisoryBoardwasalsoextensivelydiscussed,andattentionwas
paidtothefuturecompositionoftheSupervisoryBoard.Inaddition,theSNCpreparedtheselectionofMr.Nicklas
successorofMr.WenninkasCFOofASML.
Otherdiscussionitemsin2013weretheregulartopicssuchasmanagementdevelopmentandtalentmanagement;and
thefunctioningoftheindividualmembersoftheSupervisoryBoardandtheBoardofManagement.
TheSelectionandNominationCommitteeisalsoresponsibleformonitoringCorporateGovernancedevelopments.
Remuneration Committee
ThecurrentmembersofASMLsRemunerationCommitteeareMr.Ziebart(Chairman),Ms.VandenBurgandMs.Vander
MeerMohr.
In2013,theRemunerationCommitteemetthreetimesinscheduledmeetings,eitherinpersonorviaconference
call,andseveraladditionalmeetingswereheldonanad-hocbasisin2013.Animportantitemdiscussedinthefirst
monthsof2013wastherevisionofthe2010RemunerationPolicy.Aworkinggroup,inwhichalsoanexternalexpert
participated,preparedthe2014RemunerationPolicyasapprovedbytheSupervisoryBoardandadoptedbytheAGM
onApril24,2013.ReferenceismadetotheparagraphbelowontheremunerationfortheBoardofManagementandthe
outlineofthe2013RemunerationReportformoredetailsonthistopic.
Othertopicsdiscussedin2013included:theshareandoptionplansfortheemployees;thetargetsandremuneration
packagefortheBoardofManagement,theterminationofMr.MeuricesemploymentcontractperMarch31,2014and
theconsequencesthereofforhisremunerationpackage,theremunerationforthePresidentsandforthenewCFO,
benchmarkonSBremuneration,andthe2013RemunerationReport.DetailsoftheremunerationpackageofMr.Meurice
canbefoundinNote31oftheConsolidatedFinancialStatements.
IncooperationwiththeAuditCommitteeandtheTechnologyandStrategyCommittee,theRemunerationCommittee
reviewedandproposedtotheSupervisoryBoardthe2013targetsfortheBoardofManagementandalsoprovidedits
recommendationstotheSupervisoryBoardwithrespecttotheachievementofthe2013targetsandrelatedappropriate
compensationlevelsfortheBoardofManagementmembersoverthefinancialyear2013.
AnexternaladvisorinthefieldofremunerationformembersofBoardsofManagementassistedtheRemuneration
Committeeinitsactivities.ThisexternaladvisordoesnotprovideremunerationadvicetotheBoardofManagement.
Technology and Strategy Committee

ThecurrentmembersofASMLsTechnologyandStrategyCommitteeareMr.Bilous(Chairman),Mr.Grose,Mr.Van
derPoel,andMr.Ziebart.Inaddition,theTechnologyandStrategyCommitteemayappointoneormoreadvisors
fromwithinand/orfromoutsideASML.In2013fourexternaladvisorsandthreeinternaladvisorsparticipatedinthe
Committeemeetings.TheadvisorstotheTechnologyandStrategyCommitteemaybeinvitedasgueststo(partsof)
themeetingsoftheCommittee,butarenotentitledtovoteinthemeetings.TheTechnologyandStrategyCommittee
heldfourscheduledmeetingseitherinpersonorbyconferencecallin2013.Ingeneral,thephysicalmeetingslasta
fullday.OnemeetingwasheldforthepurposeofdiscussingthetechnologytargetsfortheBoardofManagement;the
achievementsrelatedtheretowerediscussedinanothermeeting.
TheTechnologyandStrategyCommitteereviewsandadvisestheSupervisoryBoardonspecificASMLtechnology
mattersimportantatthattimeanddiscussestheproposalsforASMLsfutureproduct-andtechnologystrategies.The
TechnologyandStrategyCommitteeisinstrumentalinpreparingthedecisionsand/oradvicefortheSupervisoryBoard
relatedtothesetopics.Importanttopicsthisyearweretheexecutionandimplementationofprogramsandinitiatives
resultingfromtheCCIPandCymer.BesidesEUV,othertopicsofdiscussionincludedmattersrelatedtoImmersion,
450mm,DUVandApplications.
ForafurtherdescriptionoftheresponsibilitiesoftheSupervisoryBoardCommittees,referenceismadetotheCorporate
GovernanceParagraphofthisStatutoryAnnualReport.
Remuneration of the Supervisory Board

TheremunerationoftheSupervisoryBoardmembersisdescribedinNote31totheConsolidatedFinancialStatements.
InadditiontotheirfeeasmemberoftheSupervisoryBoard,SupervisoryBoardmembersalsoreceiveafeeforeach
Committeemembership,aswellasanetcostallowance.TheSupervisoryBoardremunerationisnotdependenton
ASMLsfinancialresults.NoneofthemembersoftheSupervisoryBoardownsharesoroptionsonASMLsshares.We
hadnotgrantedanyloansto,norhadwegrantedanyguaranteesinfavorof,anyofthemembersoftheSupervisory
Board.
Composition of the Board of Management

TheBoardofManagementcurrentlyconsistsoffourmembers.Asmentionedearlierinthisreport,theSupervisoryBoard
extendedtheappointmenttermofMr.VanHoutforfourmoreconsecutiveyearspertheAGM2013.TheSupervisory
BoardwillextendtheappointmenttermofMr.Schneider-Maunouryforfouryearsuponnotificationtothe2014AGM.
Mr.NicklstartedasEVPandCFOperDecember1,2013,andwillbeappointedasmemberoftheBoardofManagement
uponnotificationtothe2014AGM.ForfurtherdetailsandabiographyofthemembersoftheBoardofManagement,
seepage1ofthisStatutoryAnnualReport.
Remuneration of the Board of Management

General
In2013,theGeneralMeetingofShareholdersadoptedanupdateoftheRemunerationPolicyfortheBoardof
ManagementperJanuary1,2014.For2013,the2010RemunerationPolicystillapplies.TheRemunerationCommittee
overseesthedevelopmentandimplementationofcompensationandbenefitprogramsfortheBoardofManagement,
aswellasthecompensationlevelsfortheindividualmembersoftheBoardofManagement.Itprovidesadvicetothe
BoardofManagementonthepolicyandimplementationofthecompensationforseniormanagementbelowtheBoardof
Management.
TheRemunerationCommitteereviewsthecorporateobjectivesandtargetsrelevanttothecompensationofallmembers
oftheBoardofManagement.ItensuresthattargetsfortheBoardofManagementandseniormanagementarealigned
andsupportthelong-termstrategyofASML.Thesetargetsrelatetotechnologyleadershipcombinedwithcustomer
andsupplierintimacy,highlyefficientprocessesandentrepreneurialpeople,thethreemainpillarsoflongtermvalue
creationatASML.TheRemunerationCommitteecooperateswiththeAuditCommitteeandtheTechnologyand
StrategyCommitteeinsettingthetargets.TheRemunerationCommitteeevaluatestheachievementsoftheBoardof
Managementwithrespecttothoseobjectivesandtargets(again,incooperationwiththeAuditCommitteeandthe
TechnologyandStrategyCommittee),anditprovidesrecommendationstotheSupervisoryBoardontheresulting
compensationlevelsforthemembersoftheBoardofManagement.Detailsoftheremunerationtargetsandtheirlinkto
theASMLlongtermstrategycanbefoundinthe2013RemunerationReport.
Theexternalauditorperformsagreed-uponproceduresonthetargetsachievedtoassesscompliancewiththe
RemunerationPolicy.
TheSupervisoryBoardhasthediscretionarypowertoadjustvariableremunerationcomponentsbothupwardsand
downwardsifthesewould,intheopinionoftheSupervisoryBoard,produceanunfairresultduetoextraordinary
circumstancesduringtheperiodinwhichthepredeterminedperformancecriteriahavebeenorshouldhavebeen
achieved(UltimumRemedium-provision11.2.10).Besidesthis,theSupervisoryBoardmayrecoverfromtheBoardof
Managementanyvariableremunerationawardedonthebasisofincorrectfinancialorotherdata(clawbackclauseprovision11.2.11).
Outline 2013 remuneration report
Insummary,totalremunerationformembersoftheBoardofManagementisderivedfromthemedianlevelofthe
appropriatetopexecutivepaymarket(areferencemarketconsistingofagroupofEuropeancompaniesmainlyinthe
ICTandTechnologysector)andconsistsof(i)basesalary;(ii)shorttermperformanceincentives(incash);(iii)longterm
performanceincentives(inshares)and(iv)otherbenefits.Thepayoutofthecashincentiveandvestingofperformance
sharesisdependentontheachievementofpredeterminedfinancialandnon-financialperformancecriteria.
Byapplyingthefollowingratioasdefinedinthe2010RemunerationPolicy,thestructureofTotalDirectCompensationis
aimedatbalancingshortandlongtermperformanceandtoalignremunerationwithlongtermvaluecreation:100-75-80
fortheCEO,wherebasesalaryis100;thetargetshorttermperformancerelatedcashincentiveis75(asofJuly1,2013,
STIforCEOis60);longtermperformancesharesare80.FortheothermembersoftheBoardofManagementthisratio
is100-60-80.Themaximumpayout-incaseofoverachievementofpre-definedtargets-fortheperformancesharesis
146.25percentforallmembersoftheBoardofManagement.
Gratitude to ASML Employees

TheSupervisoryBoardwouldliketothankandrecognizeallASMLemployeesincludingthetemporaryworkforce
whohavebeenabletoagainachievesomuchthispastyear:theprogresswithEUV,theeffortsmadetosupplytothe
demandandthegreatoverallresultsofASML.TheSupervisoryBoardacknowledgesthattheexecutionoftheCCIP
andtheadditionalworkresultingfromthemergerwithCymerrequiresextraeffortsfromtheASMLemployees,andalso
realizesthepressurethattheextremeswingsindemandandinthecontinuingdemandforleading-edgetechnology
putonASMLemployees.Therefore,theSupervisoryBoardwantstoexpressitsappreciationforalltheeffortsand
achievementsofASMLemployeesthroughouttheseyears.
Information on Supervisory Board Members

PresentedbelowisthepersonaldataofallSupervisoryBoardmembersthatisrequiredtobedisclosedinthisreportin
ordertocomplywiththeCode.
OB Bilous
Gender
Age
Profession
Principalposition
Nationality
Otherrelevantpositions
Firstappointed
Currenttermuntil
H.C.J. van den Burg
Gender
Age
Profession
Principalposition
Nationality
Firstappointed
Currenttermuntil
F.W. Frhlich
Gender
Age
Profession
Principalposition
Nationality
:Male
:75
:FormerGeneralManagerandVicePresidentWorldwide
ManufacturingofIBMsMicroelectronicsDivision
:Retired
:UnitedStates
:BoardmemberNantero,Inc.
:2005
:2014
:Female
:61
:FormermemberoftheEuropeanParliament
:MemberoftheDutchMonitoringCommitteeCorporateGovernance
Code
:Dutch
:ChairpersonoftheMonitoringFoundationDutchInsurance
Companies,memberoftheAdvisoryBoardsoftheDutchDataProtectionAuthorityandtheDutchNationalRegisterSupervisory
Directors,memberoftheAdvisoryScientificCommitteeEuropean
SystemicRiskBoard(ECBFrankfurt)andmemberoftheAdvisory
CouncilInternationalAffairsCommissionHumanRights(Dutch
MinistryForeignAffairs)
:2005
:2015
Firstappointed
Currenttermuntil
:Male
:71
:FormerDeputyChairmanandCFOofAkzoNobelN.V.
:Retired
:German
:ChairmanoftheSupervisoryBoardofRandstadHoldingN.V.,
memberoftheSupervisoryBoardsofAllianzNederlandN.V.and
RexelSA,memberoftheBoardofDirectorsofPrysmianGroup.
:2004
:2014
D.A. Grose
Gender
Age
Profession
Principalposition
Nationality
Firstappointed
Currenttermuntil
:Male
:63
:FormerCEOofGlobalFoundries
:Retired
:UnitedStates
:MemberoftheBoardofDirectorsofSBAMaterials,Inc.
:2013
:2017
P.F.M. van der Meer Mohr

Gender
Age
Profession
Nationality
Firstappointed
Currenttermuntil
:Female
:53
:PresidentoftheExecutiveBoardoftheErasmusUniversity
Rotterdam
:Dutch
:MemberoftheSupervisoryBoardsofRoyalDSMN.V.and
DuisenbergSchoolofFinance,chairpersonoftheExecutiveBoardof
theFulbrightCenter
:2009
:2017
C.M.S. Smits-Nusteling
Gender
Age
Profession
Nationality
Firstappointed
Currenttermuntil
A.P.M. van der Poel
Gender
Age
Profession
:Female
:47
:FormerCFOandmemberoftheBoardofManagementofRoyalKPN
N.V.
:Dutch
:MemberoftheSupervisoryBoardofTele2AB
:2013
:2017
Firstappointed
Currenttermuntil
:Male
:65
:FormermemberoftheBoardofManagementofRoyalPhilips
Electronics
:Retired
:Dutch
:MemberoftheBoardofDirectorsofGemaltoHoldingN.V.,member
oftheSupervisoryBoardofRoyalHaskoningDHVB.V.andChairman
oftheSupervisoryBoardofBDRThermea
:2004
:2016
W.H. Ziebart
Gender
Age
Profession
Principalposition
Nationality
Firstappointed
Currenttermuntil
:Male
:64
:FormerPresidentandCEOofInfineonTechnologiesA.G.
:GroupEngineeringDirector,JaguarLandRoverLimited
:German
:ChairmanoftheSupervisoryBoardofNordexSE
:2009
:2017
CompanySecretary
Appointed
:Mr.R.F.Roelofs
:2002
DeputyCompanySecretary
Appointed
:Ms.G.C.M.Keizer/Ms.S.A.M.tenHaaf
:2004/2013
Principalposition
Nationality
TheSupervisoryBoard,
Veldhoven,February11,2014
10
Corporate Governance Paragraph

I. General
ASMLHoldingN.V.isapubliclimitedliabilitycompany,withregisteredseatinVeldhoven,theNetherlandsandis
governedbyDutchlaw.Since1995,ASMLssharesarelistedonNYSEEuronextAmsterdamandalsoonNASDAQ.
WecontinuouslymonitorandassessapplicableDutch,U.S.andotherrelevantcorporategovernancecodes,rules,and
regulations.ASMLissubjecttotheCode.BecausewearealsolistedonNASDAQ,wearerequiredtocomplywiththe
U.S.Sarbanes-OxleyActof2002,aswellasNASDAQlistingrules,andtherulesandregulationspromulgatedbythe
SEC.
ForthefulltextoftheCode,pleaserefertothewebsitewww.commissiecorporategovernance.nl.Forthefulltextof
theU.S.Sarbanes-OxleyActof2002,aswellasNASDAQlistingrules,andtherulesandregulationspromulgatedby
theSEC,seewww.sec.gov/about/laws/soa2002.pdf,http://nasdaq.cchwallstreet.com,andwww.sec.gov/about.shtml
respectively.
ASMLsSupervisoryBoardandBoardofManagement,whoareresponsibleforourcorporategovernancestructure,
willcontinuetheireffortstoensurethatourpracticesandprocedurescomplywithbothU.S.andDutchcorporate
governancerequirements.Inthisparagraph,weaddressourcorporategovernancestructure,therebyreferringto
theprinciplesandbestpracticessetforthintheCode,aswellaswiththeapplicablelawswithrespecttocorporate
governance.OurSupervisoryBoardandBoardofManagementareoftheopinionthatASMLcomplieswithall
recommendationsintheCode.However,wehaveprovidedexplanationswithrespecttoonerecommendation,asour
practicewithrespecttothatrecommendationcouldbeperceivedasnon-compliantwiththeCode.
MaterialchangesinthecorporategovernancestructureofASMLand/orinitscompliancewiththeCodewillbe
discussedatourAGMasaseparateagendaitem.
1ThisCorporateGovernanceParagraphalsoincludestheinformationthatisrequiredtobedisclosedpursuanttoarticle2aoftheDecreeof23December2004regardingfurtherprovisionsonthe
substanceofannualreports.
11
II. Board of Management

Role and Procedure
ASMLsBoardofManagementisresponsibleformanagingASML,underthechairmanshipofitsPresidentandCEO
andthePresidentandCTO,constitutingdualleadership.ThecurrentBoardofManagementcomprisesfourmembers.
Mr.NickljoinedASMLasEVPandCFOperDecember1,2013;theSupervisoryBoardintendstoappointMr.Nicklas
memberofASML'sBoardofManagementforaperiodoffouryearsafterthenotificationtotheAGMonApril23,2014.
AlthoughthevariousmanagementtasksaredividedamongthemembersoftheBoardofManagement,theBoardof
ManagementremainscollectivelyresponsibleforthemanagementofASML,thedeploymentofourstrategy,ourrisk
profileandpolicies,theachievementofourobjectives,ourresultsandthecorporatesocialresponsibilityaspects
relevanttoASML.
Infulfillingitsmanagementtasksandresponsibilities,theBoardofManagementconsiderstheinterestsofASMLand
thebusinessconnectedwithit,aswellastheinterestsofourstakeholders.TheBoardofManagementisaccountableto
theSupervisoryBoardandtheGeneralMeetingofShareholdersfortheperformanceofitsmanagementtasks.
ASMLhasatwo-tierboardstructure:theSupervisoryBoardsupervisesandadvisestheBoardofManagementin
theexecutionofitstasksandresponsibilities.TheBoardofManagementprovidestheSupervisoryBoardwithall
information,inwritingorotherwise,necessaryfortheSupervisoryBoardtofulfillitsduties.Besidestheinformation
providedintheregularmeetings,theBoardofManagementkeepstheSupervisoryBoardfrequentlyinformedon
developmentsrelatingtoASMLsbusiness,financials,operations,andindustrydevelopmentsingeneral.
ImportantdecisionsoftheBoardofManagementthatrequiretheapprovaloftheSupervisoryBoardare,amongothers:
theoperationalandfinancialobjectives;
thestrategydesignedtoachievetheobjectives;
theparameterstobeappliedinrelationtothestrategytoachievetheobjectives;and
corporatesocialresponsibilityissuesthatarerelevanttoASML.
Themainelementsoftheoperationalandfinancialobjectives,thestrategytoachievetheobjectives,andthe
parameterstobeappliedareincludedintheReportoftheBoardofManagement.Intheriskfactorssectionofthe
2013StatutoryAnnualReport,wedescribethesensitivityofourresultstobothexternalaswellasinternalfactorsand
variables.
TheRulesofProcedurefortheBoardofManagementcontain-amongothertopics-thegeneralresponsibilitiesof
theBoardofManagement,therelationshipwiththeSupervisoryBoardandvariousstakeholders,thedecisionmaking
processwithintheBoardofManagement,andalsothelogisticssurroundingthemeetings.TheRulesofProcedureare
postedintheCorporateGovernancesectiononourwebsite.
Appointment, Other Functions
MembersoftheBoardofManagementareappointedbytheSupervisoryBoarduponrecommendationbyASMLs
SelectionandNominationCommitteeanduponnotificationtotheGeneralMeetingofShareholders.Membersofthe
BoardofManagementareappointedforaperiodoffouryears,whereafterreappointmentispossible.
OnJuly1,2013,Mr.E.(Eric)MeuricesteppeddownasASMLsPresidentandCEO,andatthatsamedate,Mr.P.T.F.M.
(Peter)WenninkwasappointedPresidentandCEO,whereasMr.M.A.(Martin)vandenBrinkwasappointedPresident
andCTO,thisconstitutingdualleadershipinASML.Mr.MeuriceagreedtocontinueasChairmanofASMLHolding
N.V.andtoactasadvisertoASMLsleadershipandSupervisoryBoarduntiltheendofhisemploymentcontracton
March31,2014,ensuringasmoothandcomprehensivetransition.Mr.WenninkcontinuedtoactasinterimCFO,until
theappointmentofhissuccessor.Mr.NickljoinedASMLperDecember1,2013,assuccessorofMr.Wenninkandwas
appointedEVPandCFOofASML.Asstatedabove,thenotificationofhisintendedappointmentasmemberofASML's
BoardofManagementforaperiodoffouryearswillbeputonthe2014AGMagenda.
TheemploymentagreementsofMessrs.WenninkandVandenBrinkwereamendedperJuly1,2013tochangetheir
appointmentfromanindefinitetermtoadefinitetermoffouryears.Thereappointmenttermwillcomeintoeffectupon
notificationtothe2014AGM.Inaddition,anotheramendmenttotheemploymentagreementswastheinclusionofa
severancepayment,ifany,notexceedingoneyearbasesalary.BothamendmentsweremadetocomplywiththeCode.
TheSupervisoryBoardmaysuspendanddismissmembersoftheBoardofManagement,butonlyafterconsultingthe
GeneralMeetingofShareholders.
12
PursuanttonewlyadoptedDutchlegislationwhichenteredintoforceonJanuary1,2013,amemberoftheBoardof
ManagementmaynotbeaSupervisoryBoardmemberinmorethantwootherqualifiedlegalentities(LargeCompany).
AmemberoftheBoardofManagementmayneverbethechairmanofasupervisoryboardofaLargeCompany.Board
ofManagementmembersmayonlyacceptaSupervisoryBoardmembershipofanotherLargeCompanyafterhaving
obtainedpriorapprovalfromtheSupervisoryBoard.MembersoftheBoardofManagementarealsorequiredtonotify
theSupervisoryBoardofotherimportantfunctionsheldortobeheldbythem.Currently,noBoardofManagement
memberhasmorethantwoSupervisoryBoardmembershipsinotherLargecompanies.NocurrentmemberoftheBoard
ofManagementischairmanofasupervisoryboardofaLargecompany.
ThissamelegislationrequiresaDutchpubliclimitedliabilitycompanyqualifyingasaLargeCompany,topursueapolicy
ofhavingatleast30.0percentoftheseatsontheexecutiveboardbeheldbyeachgendertotheextenttheseseatsare
heldbynaturalpersons.IntheselectionprocessofthenewCFOandintendedmemberoftheBoardofManagementin
2013,ASMLtookthisruleintoconsideration,aswellasotherrequiredskillsandcompetencesofthecandidate.Incase
offutureappointmentsofmembersoftheBoardofManagement,ASMLshallcontinuetotakethis30.0percentruleinto
consideration.
Internal Risk Management and Control Systems, External Factors
TheBoardofManagementisresponsibleforensuringthatASMLcomplieswithapplicablelegislationandregulations.
ItisalsoresponsibleforthefinancingofASMLandformanagingtheinternalandexternalrisksrelatedtoitsbusiness
activities.
TheestablishmentofASMLsinternalriskmanagementandcontrolsystemisbasedontheidentificationofexternal
andinternalriskfactorsthatcouldinfluencetheoperational,businesscontinuityandfinancialobjectivesofASMLand
containsasystemofmonitoring,reporting,andoperationalreviews.
Tohelpidentifyingrisks,ASMLusesaformalriskmanagementapproach,consistingofasetofrisksdefinitions(ASML
RiskLandscape)whicharereviewedanddiscussedbytheCRSBonaquarterlybasis.TheCRSBwasintroducedduring
thecourseof2013,ischairedbytheChiefOperationsOfficerandconsistsofASMLseniormanagement,includingthe
CEOandCFO.Basedonthereview,actionsareinitiatedtofurtherenhanceASMLsriskmitigation.Theseactionsare
monitoredviatheCRSB.OutcomesofthereviewsandprogressupdatesarereportedtotheAuditCommitteeannually.
TheestablishmentofASMLsinternalcontrolandriskmanagementsystemsisbasedontheidentificationofexternal
andinternalriskfactorsthatcouldinfluenceouroperationalandfinancialobjectivesandcontainsasystemof
monitoring,reportingandoperationalreviews.Allmaterialriskmanagementactivitieshavebeendiscussedwiththe
AuditCommitteeandtheSupervisoryBoard.ForasummaryofASMLsRiskFactors,werefertoourManagementBoard
ReportinthisStatutoryAnnualReport.
ASMLdoesnotranktheindividualrisksidentifiedinourManagementBoardReport,asASMLisoftheopinionthat
doingsodefiesthepurposeofacomprehensiveriskassessmentanditwouldbearbitraryofnaturesinceallrisks
mentionedhavesignificantrelevanceforASMLanditsbusiness.
ASMLpublishestwoannualreportsinrespectofthefinancialyear2013(2013AnnualReports):thisStatutoryAnnual
ReportinaccordancewiththeDutchlegalrequirementsandIFRS-EUandanAnnualReportonForm20-Finaccordance
withU.S.securitieslaws,basedonU.S.GAAP.BothAnnualReportsdescribethesameriskfactorsthatarespecificto
thesemiconductorindustry,ASMLandourshares.ASMLalsoprovidessensitivityanalysesbyproviding:
anarrativeexplanationofourFinancialStatements;
thecontextwithinwhichfinancialinformationshouldbeanalyzed;and
informationaboutthequality,andpotentialvariability,ofourearningsandcashflow.InourInControlStatement(as
partoftheDirectorsResponsibilityStatement),asincludedinthisStatutoryAnnualReport,theBoardofManagement
addressesourinternalriskmanagementandcontrolsystems.
13
Withrespecttotheprocessofdraftingannualreports,wehaveextensiveguidelinesforthelay-outandthecontent
ofourreports.Theseguidelinesareprimarilybasedonapplicablelaws.FortheStatutoryAnnualReportandthe
ConsolidatedCondensedInterimFinancialStatements,ASMLfollowstherequirementsofDutchlawandregulations,
includingpreparationoftheConsolidatedFinancialStatementsinaccordancewithIFRS-EU.FortheAnnualReport
onForm20-F,ASMLappliestherequirementsoftheU.S.SecuritiesandExchangeActof1934,andpreparesthe
FinancialStatementsincludedthereininaccordancewithU.S.GAAP.Withrespecttothepreparationprocessofthese
andtheotherfinancialreports,ASMLappliesinternalprocedurestosafeguardcompletenessandcorrectnessofsuch
informationaspartofitsdisclosurecontrolsandprocedures.
ASMLsInternalControlCommittee,comprisingamongothersthreemembersoftheDisclosureCommittee,advises
ASMLsDisclosureCommitteeabouttheirassessmentofASMLsinternalcontroloverfinancialreporting.TheChairman
oftheInternalControlCommitteereportstotheAuditCommitteeandtotheBoardofManagementontheprogressof
theassessments.
ASMLsDisclosureCommittee,consistingofvariousmembersofseniormanagementfromdifferentfunctionalareas
withinASML,reportstoandassistsASMLsCEOandCFOinthemaintenance,reviewandevaluationofdisclosure
controlsandprocedures.TheDisclosureCommitteesmainresponsibilityistoensurecompliancewithapplicable
disclosurerequirementsarisingunderUnitedStatesandDutchlawandapplicablestockexchangerules.TheChairman
oftheDisclosureCommitteereportstotheAuditCommitteeandtotheCEOandCFOonthetopicsdiscussedinthe
DisclosureCommitteemeetingsandadvisesASMLsCEOandCFOaboutitsassessmentofASMLsdisclosurecontrols
andproceduresandinternalcontroloverfinancialreporting.
Code of Conduct
PartofASMLsriskmanagementandcontrolsystemisASMLsCodeofConduct.TheCodeofConductdescribeswhat
ASMLstandsforandbelievesin,andistranslatedintospecificpoliciesandproceduresthatcontainrulesandguidance
oncompliancewithexternalandinternalrules,laws,controlsandprocesses.
Concernsandcomplaintscanbesubmittedthroughvariousinternalchannelsaswellasanexternalparty,which
providesforanonymousreporting.
CodeofConductrelatedtopics,aswellassubmittedcomplaints,ifany,arediscussedintheAuditCommittee.
TheCodeofConductandtheReportingProcedure(includingwhistleblowerprocedures)areavailableontheCorporate
Governancesectionofourwebsite.

WithrespecttotheremunerationoftheBoardofManagement,theSupervisoryBoardisoftheopinionthatthe2010
RemunerationPolicywasdraftedinaccordancewiththeCode,andthattheexecutionofthePolicyisalsoinline
withtheCode,withthe(potential)exceptionasmentionedmorespecificallyattheendofthisCorporateGovernance
Paragraph.Atthe2013AGManewRemunerationPolicyoftheBoardofManagement(2014RemunerationPolicy)was
adoptedbytheshareholderswhichwillcomeintoforceperJanuary2014.
Performance Criteria
EventhoughthisisnotadeviationfromtheCode,astheCodestipulatesthatnotdisclosingtheperformancecriteria
(bestpracticeprovisions11.2.13f)andg)becauseofcompetitionsensitivenessisjustified,weherebywanttoprovide
ourreasonsfornotprovidingallinformationasincludedinthebestpracticeprovisionsmentionedabove.
ASMLprovidesthequantitativeperformancecriteria,asummaryandaccountofthemethodstodeterminethe
achievementoftheperformancecriteria,andalsotheultimateachievementlevelofthequantitativeandqualitative
performancecriteria.However,wecannotprovidetheexactperformancecriteriadata,northelevelsofachievement
perperformancecriterion,asthisconcernshighlycompetitiveinformation,suchastargetsrelatedtoourtechnology,
marketposition,etc.TheSupervisoryBoarddeemsititsresponsibilitytosettheactualtargetsandtodeterminethe
levelofachievementofthesetargetsforthevariablepartoftheremunerationoftheBoardofManagement.TheAGM
endorsedthispositioninitsmeetingonMarch23,2006forthe2010RemunerationPolicy,andonApril24,2013forthe
2014RemunerationPolicy,effectiveperJanuary1,2014.
14
FormoredetailsabouttheBoardofManagementsremuneration,itscomposition,andotherrelevantelements,
referenceismadetothe2010RemunerationPolicyandtheRemunerationReportforthe2013financialyear(both
publishedonourwebsite),theReportoftheSupervisoryBoardandNote31ofthisStatutoryAnnualReport.
Theexternalauditorperformsagreed-uponproceduresonthetargetsachievedtoassesscompliancewiththe
RemunerationPolicy.
Insider Trading
WithrespecttotradinginASMLfinancialinstruments,ASMLemployees,ASMLBoardofManagementmembersand
ASMLSupervisoryBoardmembersareboundbyASMLsInsiderTradingRules,whicharepublishedonourwebsite.
TheASMLInsiderTradingRulesstipulate,amongotheritems,thatmembersoftheBoardofManagementmaynottrade
duringthetwomonthsprecedingthepublicationoftheannualresults,andduringthethreeweeksbeforepublicationof
quarterlyresults.Inaddition,employeesofASML,includingthemembersoftheBoardofManagement,maynotperform
transactionsinASMLfinancialinstrumentsduringtheopenperiodswhentheyhaveinsideinformation.
Indemnification
ASMLsArticlesofAssociationprovidefortheindemnificationofthemembersoftheBoardofManagementagainst
claimsthatareadirectresultoftheirtasksasmembersoftheBoardofManagement,providedthatsuchclaimis
notattributabletowillfulmisconductorintentionalrecklessnessofsuchmemberoftheBoardofManagement.The
SupervisoryBoardhasfurtherimplementedtheindemnificationoftheBoardofManagementmembersbymeansof
separateindemnificationagreementsforeachBoardofManagementmember.
Conflicts of Interest
ConflictsofinterestproceduresareincorporatedintheBoardofManagementsRulesofProcedureandreflectthe
principleandbestpracticeprovisionsoftheCodewithrespecttoconflictsofinterest.
Therehavebeennotransactionsduring2013,andtherearecurrentlynotransactions,betweenASMLoranyofour
subsidiaries,andanysignificantshareholderandanydirectororofficeroranyrelativeorspousethereof,otherthan
ordinarycoursecompensationarrangements.
III. Supervisory Board

Role and Procedure
Asmentionedbefore,ASMLsSupervisoryBoardsupervisesthepoliciesoftheBoardofManagementandthegeneral
courseofaffairsofASMLanditssubsidiaries.OurSupervisoryBoardalsosupportstheBoardofManagementwithits
advice.AsASMLhasandintendstokeepatwo-tierstructure,theSupervisoryBoardisaseparateandindependent
bodyfromtheBoardofManagementandfromASML.UnderDutchlawandpertheCode,SupervisoryBoardmembers
cannotbemembersoftheBoardofManagementandcannotbe(former)officersoremployeesofASML.
Infulfillingitsroleandresponsibilities,theSupervisoryBoardtakesintoconsiderationtheinterestsofASMLandits
subsidiaries,aswellastherelevantinterestsofASMLsstakeholders.TheSupervisoryBoardsupervisesandadvisesthe
BoardofManagementinperformingitstasks,withaparticularfocuson:
theachievementofASMLsobjectives;
ASMLscorporatestrategyandthemanagementofrisksinherenttoASMLsbusinessactivities;
thestructureandoperationofinternalriskmanagementandcontrolsystems;
thefinancialreportingprocess;
compliancewithapplicablelegislationandregulations;
relationshipwithshareholders;and
thecorporatesocialresponsibilityissuesimportantforASML.
Majormanagementdecisions,suchasASMLsstrategy,majorinvestmentsandbudget,requiretheapprovalofthe
SupervisoryBoard.TheSupervisoryBoardselectsandappointsnewBoardofManagementmembers,preparesthe
remunerationpolicyfortheBoardofManagement,anddecidesontheremunerationfortheindividualmembersofthe
BoardofManagement.Also,theSupervisoryBoardisthebodythatnominatesnewSupervisoryBoardcandidatesfor
appointmentandsubmitsremunerationproposalsfortheSupervisoryBoardmemberstotheAGM.
TheSupervisoryBoard,throughitsSelectionandNominationCommittee,closelyfollowsthedevelopmentsinthe
areaofcorporategovernanceandtheapplicabilityoftherelevantcorporategovernancerulesforASML.Foramore
detaileddescriptionontheSupervisoryBoardsactivitiesintheareaofcorporategovernancereferenceismadetothe
SupervisoryBoardReportasincludedinthisStatutoryAnnualReport.
15
Meetings and Activities of the Supervisory Board

TheSupervisoryBoardheldsixphysicalmeetingsin2013.Inaddition,threeconferencecallswereheldtospecifically
discussthequarterlyresults.
Duringseveralmeetingsin2013,theSupervisoryBoarddiscussedextensivelytheacquisitionofCymer,theexecution
oftheCCIP,theleadershipchangesandEUV.Othertopicswere:thestrategy,thefinancialposition,financingpolicy,
businessrisks,investorrelations,sustainability,budgetandcorporatetargets.
AsalsodescribedintheSupervisoryBoardReport,membersoftheSupervisoryBoardalsointeractwithBoardof
ManagementmembersandwiththeircolleagueSupervisoryBoardmembersoutsidetheregularmeetingsorconference
calls.
DuringallphysicalmeetingsoftheSupervisoryBoardusuallyallBoardofManagementmembersarepresent.Ingeneral
attheendofeachmeeting,theSupervisoryBoardmeetsintersetodiscusstopicsrelatedto,amongstothers,the
compositionandfunctioningoftheBoardofManagementandtheSupervisoryBoard,thefunctioningoftheindividual
membersofbothbodies,andtherelationshipbetweenthesebodiesanditsindividualmembers.
Asiscommonpracticeeachyear,theSupervisoryBoardconductedanevaluationin2013withrespecttothe
functioningofthefullSupervisoryBoard.AlsoeachCommitteeperformedaself-evaluationwithrespecttoits
functioning.FormoredetailedinformationonthistopicreferenceismadetotheSupervisoryBoardReport.
MembersoftheSupervisoryBoardhavesemi-annualmeetingswiththeWorksCouncilintheNetherlandstodiscussour
strategy,financialsituationandanyothertopicthatisdeemedrelevantatthattime.
FormoredetailedinformationonthemeetingsandactivitiesoftheSupervisoryBoardin2013,referenceismadetothe
SupervisoryBoardReport.
The Rules of Procedure
TheRulesofProcedureoftheSupervisoryBoardcontainrequirementsbasedontheCode,ontheSarbanes-OxleyAct
andonanyotherapplicablelaws,aswellascorporategovernancepracticesdevelopedbytheSupervisoryBoardover
thepastyears.TheRulesofProcedurearesubjecttoregularreviewinviewofthecontinuouscorporategovernance
developments.ItemsincludeamongothersresponsibilitiesoftheSupervisoryBoardanditscommittees,composition
oftheSupervisoryBoardanditsCommittees,logisticssurroundingthemeetings,meetingattendanceofSupervisory
BoardmembersandrotationschedulefortheSupervisoryBoardmembers.
TheRulesofProcedurealsocontainthechartersofthefourCommittees.TheSupervisoryBoardhasassignedcertain
ofitstasksandresponsibilitiestothefourCommittees;however,theplenarySupervisoryBoardremainsresponsiblefor
thefulfillmentofthesetasksandresponsibilities.TheSupervisoryBoard-anditsCommittees-mayobtaininformation
fromofficersandexternaladvisorsofASML,ifnecessaryfortheexecutionofitstasks.EspeciallytheCommittees
frequentlycalluponexternaladvisors,whoassisttheCommitteesinpreparingtherecommendationstobedecided
uponbythefullSupervisoryBoard.
TheRulesofProcedure,aswellasthechartersofthefourCommitteesareregularlyreviewedand,ifneeded,amended.
ChangesintheSupervisoryBoardsRulesofProcedureneedtobeapprovedbythefullSupervisoryBoard.Changes
inthechartersoftheCommitteesareapprovedbytheCommitteeconcerned.TheAuditCommitteecharterisreviewed
annually,tocheckwhetherthecharterstillcomplieswiththeapplicablerulesandregulations,especiallythoserelating
totheSarbanes-OxleyAct.
Independence
TheSupervisoryBoardisoftheopinionthatitscurrentmembersareallindependentasdefinedbytheCode.Neitherthe
ChairmannoranyothermemberoftheSupervisoryBoardisaformermemberofASMLsBoardofManagement,orhas
anotherrelationshipwithASMLwhichcanbejudgednotindependentofASML.
Potentiallyhowever,theSupervisoryBoardcouldbeforcedtodeviatefromtheCodesindependencedefinitionwhen
lookingforthemostsuitablecandidateforavacancy.Forexample,inthecasewheretheprofileforavacancyrequires
particularknowledgeoforexperienceinthesemiconductor-andrelated-industries.Thesemiconductorindustryhas
relativelyfewplayers,andthereforetheSupervisoryBoardmaywant-orneed-tonominatecandidatesforappointment
totheAGMwhodonotfullycomplywiththeindependencecriteriaaslistedintheCode.Inthosecircumstances,ASML
andthecandidatewillensurethatanysuchbusinessrelationshipdoesnotcompromisethecandidatesindependence.
16
Expertise, Composition, Appointment

TheSupervisoryBoardcurrentlyconsistsofeightmembers,theminimumbeingthreemembers.TheSupervisoryBoard
determinesthenumberofSupervisoryBoardmembersrequiredfortheperformanceofitsfunctions.
PertheAGMheldin2013,Messrs.W.T.(William)SiegleandJ.W.B.(Jos)Westerburgenretiredbyrotation.Inaddition,
Mr.W.H.(Wolfgang)Ziebart,Mmes.H.C.J.(leke)vandenBurgandP.F.M.(Pauline)vanderMeerMohrretiredbyrotation
andwerereappointed.AstheirinitialappointmentswerebasedontheWorksCouncilsenhancedrecommendation
right,thereappointmentsofMmes.VandenBurgandVanderMeerMohrin2013werealsobasedonthisenhanced
recommendationright.
Mr.D.A.(Doug)GroseandMs.C.M.S.(Carla)Smits-NustelingwereappointedpertheAGMheldin2013foraperiodof
fouryears.
In2014,Messrs.O.(Orest)BilousandF.W.(Fritz)Frhlichwillretirebyrotationbasedupontherotationscheduleofthe
SupervisoryBoard.Mr.Frhlichhasindicatedtobeavailableforreappointment.
ThecurrentmembersofASMLsSupervisoryBoardshowadiversemixwithrespecttobackground,nationality,age,
genderandexpertise,inlinewiththecurrentprofiledrawnupbytheSupervisoryBoard.
TheprofileoftheSupervisoryBoardaimsforaninternationalandadequatecompositionreflectingtheglobalbusiness
activitiesofASML,aswellasforanadequatelevelofexperienceinfinancial,economic,technological,social,andlegal
aspectsofinternationalbusiness.Incaseof(re)appointments,theSelectionandNominationCommitteecheckswhether
thecandidatesfitintheSupervisoryBoardsprofile.
SimilartotherulesforthecompositionoftheBoardofManagementdescribedabove,thenewlegislationeffectiveper
January1,2013alsorequiresthatthecompositionoftheSupervisoryBoardreflectstherequirementofarepresentation
of30.0percentofeachgender.WiththeappointmentofMs.Smits-Nustelingperthe2013AGM,thecurrentratiois37.5
percentfemalemembersand62.5percentmalemembers.
Wearestillsubjecttothelawapplicabletolargecorporations(structuurregime).Beingsuchacompany,members
oftheSupervisoryBoardareappointedbytheGeneralMeetingofShareholdersbasedonnominationsproposedby
theSupervisoryBoard.TheSupervisoryBoardinformstheAGMandtheWorksCouncilaboutupcomingresignations
byrotationattheAGMintheyearprecedingtheactualresignation(s)byrotationtoensurethattheGeneralMeetingof
ShareholdersandtheWorksCouncilhavesufficientopportunitytorecommendcandidatesfortheupcomingvacancies.
TheSupervisoryBoardhastherighttorejecttheproposedrecommendations.Furthermore,theWorksCouncilhas
anenhancedrighttomakerecommendationsforone-thirdofthemembersoftheSupervisoryBoard.Theenhanced
recommendationrightimpliesthattheSupervisoryBoardmayonlyrejecttheWorksCouncilsrecommendationsforthe
followingreasons:(i)iftherelevantpersonisunsuitableor(ii)iftheSupervisoryBoardwouldnotbedulycomposed
iftherecommendedpersonwereappointedasSupervisoryBoardmember.Ifnoagreementontherecommended
person(s)canbereachedbetweentheSupervisoryBoardandtheWorksCouncil,theSupervisoryBoardmayrequest
theEnterpriseChamberoftheAmsterdamCourtofAppealtodeclarethattheSupervisoryBoardsobjectionis
legitimate.AnydecisionoftheEnterpriseChamberonthismatterisnon-appealable.
Asmentionedabove,Mmes.VandenBurgandVanderMeerMohrwerenominatedand(re)appointedpertheWorks
Councilsenhancedrecommendationright.
NominationsbytheSupervisoryBoardmaybeoverruledbyaresolutionattheGeneralMeetingofShareholderswith
anabsolutemajorityofthevotes,representingatleastone-thirdofASMLsoutstandingsharecapital.Ifthevotescast
infavorofsucharesolutiondonotrepresentatleastone-thirdofthetotaloutstandingcapital,anewshareholders
meetingcanbeconvenedatwhichthenominationcanbeoverruledbyanabsolutemajority.IftheGeneralMeetingof
Shareholdersdoesnotappointthepersonnominatedanddoesnotrejectthenomination,theSupervisoryBoardwill
appointthenominatedperson.
FornewlyappointedSupervisoryBoardmembers,weprepareanintroductionprogramofwhichthemaintopicsare:
ASMLsorganization,operations,strategy,industry,technology,ASMLsfinancialandlegalaffairs,andASMLshuman
resources.SupervisoryBoardmembersareregularlygiventheopportunitytofollowtechnicaltutorialstomaintain
andincreasetheirknowledgeofASMLseverprogressingtechnology.Inaddition,specifictrainingisalsoprovidedfor
newCommitteemembersbasedonindividualneeds.Annually,theSupervisoryBoardand/orCommitteesmembers
determinetheirneedforfurthertrainingonspecifictopics.
17
SupervisoryBoardmembersserveforamaximumtermoffouryearsfromthedateoftheirappointment,orashorter
periodaspertheSupervisoryBoardsrotationschedule.Memberscanbereappointed,providedthattheirentiretermof
officedoesnotexceed12years.TherotationscheduleisavailableintheCorporateGovernancesectiononourwebsite.
TheGeneralMeetingofShareholdersmay,byanabsolutemajorityofthevotesrepresentingatleastone-thirdof
thetotaloutstandingcapital,dismisstheSupervisoryBoardinitsentiretyforlackofconfidence.Insuchcase,the
EnterpriseChamberoftheAmsterdamCourtofAppealshallappointoneormoreSupervisoryBoardmembersatthe
requestoftheBoardofManagement.
SimilartotherulesfortheBoardofManagementdescribedabove,pursuanttonewlyadoptedDutchlegislationeffective
perJanuary1,2013,restrictionswillapplyastotheoverallnumberofexecutiveboardpositions(includingaonetier
board)andsupervisoryboardpositionsthatamemberofthesupervisoryboard(oranon-executivedirectorincase
ofaone-tierboard)ofaLargeCompany,mayhold.Pursuanttothisnewlegislation,apersonmaynotbeamember
oftheSupervisoryBoardifheorsheholdsmorethanfivesupervisorypositionswithLargeCompanies.Actingasa
chairmanofthesupervisoryboardorasupervisorybodyestablishedbythearticlesofassociationor,incaseofaonetierboard,chairmanoftheexecutiveboard,ofaLargeCompanywillcounttwice.Currently,noneoftheSupervisory
Boardmembersactsinviolationofthisnewlegislation.
FordetailedinformationonASMLsSupervisoryBoardmembers,referenceismadetotheSupervisoryBoardReport.
Role of the Chairman of the Supervisory Board and the Company Secretary
Mr.VanderPoelistheChairmanofASMLsSupervisoryBoard;Mr.FrhlichitsVice-Chairman.Theroleand
responsibilitiesoftheChairmanoftheSupervisoryBoardaredescribedinitsRulesofProcedure.TheChairman
determinestheagendaoftheSupervisoryBoardmeetings,heactsasthemaincontactbetweentheSupervisoryBoard
andtheBoardofManagementandensuresorderlyandefficientproceedingsattheGeneralMeetingofShareholders.
TheChairmanwillamongothersalsoensurethat:
themembersoftheSupervisoryBoardfollowanintroductionandtrainingprogramforSupervisoryBoardmembers;
themembersoftheSupervisoryBoardreceiveallinformationnecessaryfortheproperperformanceoftheirdutieson
atimelybasis;
thereissufficienttimeforconsultationanddecisionmakingbytheSupervisoryBoard;
theCommitteesfunctionproperly;
theperformanceoftheBoardofManagementmembersandtheSupervisoryBoardmembersisassessedatleast
onceayear;and
theSupervisoryBoardhaspropercontactwiththeBoardofManagementandtheWorksCouncil.
TheCompanySecretaryassiststheSupervisoryBoardintheperformanceofitsduties;ensuresthatthecorrect
proceduresarefollowed;andthattheSupervisoryBoardactsinaccordancewithitslegalandstatutoryobligations.The
CompanySecretaryassiststheChairmanoftheSupervisoryBoardintheorganizationoftheaffairsoftheSupervisory
BoardanditsCommittees.TheCompanySecretaryisappointedbyandmayalsobedismissedbytheBoardof
ManagementafterpriorapprovalfromtheSupervisoryBoard.TheCompanySecretaryisassistedbyadeputyCompany
Secretary.
Composition and Role of the Four Committees of the Supervisory Board
AlthoughtheSupervisoryBoardretainsultimateresponsibility,theSupervisoryBoardhasdelegatedcertainofitstasks
tothefourCommitteesoftheSupervisoryBoard.Theirrolesandfunctionsaredescribedinseparatechaptersinthe
SupervisoryBoardsRulesofProcedure.
IntheplenarySupervisoryBoardmeetings,thechairmenoftheCommitteesreportontheissuesanditemsdiscussed
intheCommitteemeetings,andalsotheminutesoftheCommitteemeetingsareavailableforallSupervisoryBoard
members,enablingthefullSupervisoryBoardtomaketheappropriatedecisions.
AuditCommittee
ThecurrentmembersofASMLsAuditCommitteeareMr.Frhlich(Chairman),Mr.VanderPoelandMs.Smits-Nusteling.
ThemembersoftheAuditCommitteeareallindependent,non-executivemembersoftheSupervisoryBoard.
Ingeneral,theAuditCommitteemeetsatleastfourtimesperyearandalwaysbeforethepublicationofthequarterly
andannualfinancialresults.Inthefirstquarter,theAuditCommitteefocusesontheannualresults,theauditsoverthe
previousfinancialyearandtheinternalandexternalauditplansfortheyearahead.Frequentlydiscussedtopicsare
ASMLsinternalcontrolsandriskmanagementsystems,thetestingofinternalcontrolsoverfinancialreportinginlight
ofSection404oftheSarbanes-OxleyAct,ASMLsfinancial-andcashposition,thefinancingandreturnpolicy,andthe
supervisionoftheenforcementoftherelevantlegislationandregulations.
18
In2013,theAuditCommitteemetfourtimesinphysicalmeetingsandfourtimesviaconferencecalls.Morespecifically,
in2013theAuditCommitteediscussedfrequently,thepurchasepriceallocationwithrespecttotheacquisitionof
Cymer,theimpactoftheacquisitiononASMLsfinancialpositionandresultsofoperation,andanumberofprojects
resultingfromtheexecutionofASMLsfinancingandreturnpolicy,suchastherenewalandincreaseofthecreditfacility,
theissueofthe2023Eurobond,thepartialtenderoftheexisting2017EurobondandtheShareBuybackprogram.
ASMLprovidestheAuditCommitteewithallrelevantinformationtobeabletoadequatelyandefficientlysupervise
thepreparationanddisclosureoffinancialinformationbyASML.Thisincludes,amongotherthings,informationon
thestatusanddevelopmentofthe(semiconductor)markettobeabletojudgetheoutlookandbudgetforthenext
sixtotwelvemonths,theapplicationofaccountingstandardsintheNetherlands,IFRS-EU,U.S.GAAP,thechoiceof
accountingpoliciesandtheworkofinternalandexternalauditors.Annually,theAuditCommitteediscussesandreviews
amongothersASMLsfinancingpolicyandstrategy,taxplanningpolicy,investorrelationsactivitiesandstrategy,fraud
policy,andinformationandcommunicationtechnologypolicy.
TheAuditCommittee,onbehalfoftheSupervisoryBoard,reviewsandapprovesthefeesoftheexternalauditor.The
AuditCommitteeisthefirstcontactfortheexternalauditoriftheexternalauditordiscoversirregularitiesinthecontent
ofthefinancialreports.Asageneralrule,theexternalauditorispresentatmeetingsoftheAuditCommittee.Ingeneral,
aftereachAuditCommitteemeeting,theAuditCommittee(withoutmanagementpresent)meetswiththeexternalauditor
todiscusstherelationshipbetweentheAuditCommitteeandtheexternalauditor,therelationshipbetweenBoardof
Managementandtheexternalauditor,andanyotherissuesdeemednecessarytobediscussed.
TheAuditCommitteegenerallyinvitesASMLsCEO,CFO,CorporateController,CorporateChiefAccountantandthe
InternalAuditortoitsmeetings.Fromtimetotime,otherASMLemployeesmaybeinvitedtoAuditCommitteemeetings
toaddresssubjectsthatareofimportancetotheAuditCommittee.
Mr.Frhlich,ChairmanoftheAuditCommittee,istheSupervisoryBoardsfinancialexpert,takingintoconsiderationhis
extensivefinancialbackgroundandexperience.
RemunerationCommittee
ThecurrentmembersofASMLsRemunerationCommitteeareMr.Ziebart(Chairman),Ms.VandenBurg,andMs.Van
derMeerMohr.
TheRemunerationCommitteemeetsatleasttwiceayearandmorefrequentlywhendeemednecessary.
TheRemunerationCommitteepreparesASMLsRemunerationPolicyformembersoftheBoardofManagement,and
overseesthedevelopmentandimplementationoftheRemunerationPolicy.IncooperationwiththeAuditCommittee
andtheTechnologyandStrategyCommittee,theRemunerationCommitteereviewsandproposestotheSupervisory
BoardcorporategoalsandobjectivesrelevanttothevariablepartoftheBoardofManagementsremuneration.Also
incooperationwiththeAuditCommitteeandtheTechnologyandStrategyCommittee,theRemunerationCommittee
evaluatestheperformanceofthemembersoftheBoardofManagementinviewofthosegoalsandobjectives,and
-basedonthisevaluation-recommendstotheSupervisoryBoardappropriatecompensationlevelsfortheBoardof
Managementmembers.
In2013,theRemunerationCommitteemetthreetimesinscheduledmeetingsandseveraltimesonanad-hocbasis.
Topicsofdiscussionin2013wereamongothersthetargetsandremunerationpackagefortheBoardofManagement,
the2013AppointmentAmendmentand2014TerminationAgreementwithMr.Meurice,theremunerationpackagefor
Mr.Nickl,thenewCFO,theASMLstockoptionandshareplans,the2013RemunerationReportandtherevisionofthe
2010RemunerationPolicy.AnexternalexpertassiststheRemunerationCommitteeinitsactivities.Thisexpertdoesnot
provideadvicetotheBoardofManagementwithrespecttomattersinthisarea.
TheRemunerationCommitteepreparedthe2013RemunerationReport,whichdescribesamongothersthemannerin
whichthe2010RemunerationPolicywasimplementedandexecutedin2013,andalsotheremunerationpackageofMr.
Meuriceuponterminationofhisemploymentcontract.
Mr.Ziebart,theChairmanoftheRemunerationCommitteeisneitheraformermemberofASMLsBoardofManagement,
noramemberoftheBoardofManagementofanothercompany.NomemberoftheRemunerationCommitteeisa
currentmemberoftheBoardofManagementofanotherDutchlistedcompany.
19
SelectionandNominationCommittee
ThecurrentmembersofASMLsSelectionandNominationCommitteeareMr.Bilous(Chairman),Mr.Grose,Mr.Frhlich
andMr.VanderPoel.
TheSelectionandNominationCommitteemeetsatleasttwiceayearandmorefrequentlywhendeemednecessary.
In2013,theSelectionandNominationCommitteemembersmetthreetimesformallyandseveraladditionaltimeson
anad-hocbasis.MainfocusitemthisyearwasthepreparationofthedecisionfortheSupervisoryBoardwithrespect
totheleadershipsuccessionwithintheBoardofManagement,andthedecisionwithrespecttotheextensionofMr.
Schneider-MaunourysappointmenttermasmemberoftheBoardofManagement.Importanttopicsin2013further
includedtheselectionofMr.NicklassuccessorofMr.WenninkasCFOofASMLandthefuturecompositionofthe
SupervisoryBoardinviewofitsrotationschedule.Otherdiscussionitemsin2013weretheregulartopicssuchas
managementdevelopmentandtalentmanagementandthefunctioningoftheindividualmembersoftheSupervisory
BoardandtheBoardofManagement.Inthatrespectalsotheself-assessmentsoftheSupervisoryBoardandits
committeeswerediscussed.
TheSelectionandNominationCommitteeassiststheSupervisoryBoardin:
preparingtheselectioncriteriaandappointmentproceduresformembersofourSupervisoryBoardandBoardof
Management;
periodicallyevaluatingthescopeandcompositionoftheBoardofManagementandtheSupervisoryBoard,and
proposingtheprofileoftheSupervisoryBoardinrelationthereto;
periodicallyevaluatingthefunctioningoftheBoardofManagementandtheSupervisoryBoardandtheindividual
membersofthoseboardsandreportingtheresultsthereoftotheSupervisoryBoard;and
proposing(re-)appointmentsofmembersoftheBoardofManagementandtheSupervisoryBoard,andsupervising
thepolicyoftheBoardofManagementinrelationtotheselectionandappointmentcriteriaforseniormanagement.
TheSelectionandNominationCommitteefurthermorediscussesimminentcorporategovernancedevelopments,for
examplethosebasedonlawproposals,butalsotheoutcomeoftheReportoftheMonitoringCommitteewithrespectto
compliancewiththeCode.
TechnologyandStrategyCommittee
ThecurrentmembersoftheTechnologyandStrategyCommitteeareMr.Bilous(Chairman),Mr.Grose,Mr.VanderPoel
andMr.Ziebart.
TheTechnologyandStrategyCommitteemeetsatleasttwiceayearandmorefrequentlywhendeemednecessary.
In2013,theTechnology&StrategyCommitteemetfacetofacefourtimes.Duringseveralofthesemeetingsthe
technologytargets,whicharepartoftheoverallperformancetargetsset,aswellastheachievementsrelatedtothe
technologytargetswerediscussed.TheTechnology&StrategyCommitteeprovidestheRemunerationCommitteewith
itsadviceonthistopic.
TheTechnologyandStrategyCommitteeprovidesadvicetotheSupervisoryBoardwithrespecttoASMLstechnology
strategiesandASMLstechnologyandproductroadmaps.ExternalexpertsaswellasexpertsfromwithinASMLmay
actasadvisorstotheTechnologyandStrategyCommitteewithrespecttothesubjectsreviewedanddiscussedinthis
Committee.
Theadvisorsdonothavevotingrights,butregularlyattendCommitteemeetings(exceptforthosemeetingsorcalls
specificallydesignatedonlyforthetechnologytargetsettingsandevaluations).
Externalexpertsmayincluderepresentativesofcustomers,suppliersandpartnerstoincreasetheCommittees
understandingofthetechnologyandresearchnecessaryforthedevelopmentofASMLsleading-edgesystems.
In2013,theTechnologyandStrategyCommitteediscussedtheexecutionandimplementationofprogramsand
initiativesresultingfromtheCCIPandCymer.BesidesEUV,othertopicsofdiscussionincludedmattersrelatedto
Immersion,450mm,DUVandApplications.
Thein-depthtechnologydiscussionsintheTechnologyandStrategyCommitteeandthesubsequentreporting
onheadlinesinthefullSupervisoryBoardincreasestheSupervisoryBoardsunderstandingofASMLtechnology
requirementsandenablestheSupervisoryBoardtoadequatelysupervisethestrategicchoicesfacingASML,including
ASMLsinvestmentinresearchanddevelopment.
20
Conflict of Interest
Therehavebeennotransactionsduring2013,andtherearecurrentlynotransactions,betweenASMLoranyofits
subsidiaries,andanysignificantshareholderandanydirectororofficeroranyrelativeorspousethereofotherthan
ordinarycoursecompensationarrangements.
ConflictofinterestproceduresareincorporatedintheSupervisoryBoardsRulesofProcedureandaddresstheprinciple
andthebestpracticeprovisionsoftheCodewithrespecttoconflictsofinterest.
TheAGMdeterminestheremunerationoftheSupervisoryBoardmembers;theremunerationisnotdependentonour
(financial)results.In2011,theAGMadoptedtheSupervisoryBoardsproposaltoincreasetheSupervisoryBoards
remunerationandalsoapprovedthepossibilitytoincreasethefeewithamaximumamountofEUR5,000inthecoming
years,whichincreasewouldbeimplementeddependingonthecircumstances.TheSupervisoryBoarddecidedin2012
toimplementtheEUR5,000increaseinfeetobringtheSupervisoryBoardsremunerationmoreinlinewithgeneral
practiceintheNetherlands.
InadditiontotheirfeeasmemberoftheSupervisoryBoard,SupervisoryBoardmembersalsoreceiveafeeforeach
Committeemembership,aswellasanetcostallowance.Inthebeginningoftheyear,theadditionalfeewhichone
SupervisoryBoardmemberreceivedtocompensateforcertainobligationswhichASMLhadtowardstheUSgovernment
stoppedaswewerenolongerrequiredtofulfilltheseobligations.
NomemberoftheSupervisoryBoardpersonallymaintainsabusinessrelationshipwithASMLotherthanasamemberof
theSupervisoryBoard.
TheSupervisoryBoardmembersdonotreceiveASMLshares,orrightstoacquireASMLshares,aspartoftheir
remuneration.SupervisoryBoardmemberswhoacquireorhaveacquiredASMLsharesorrightstoacquireASML
shares,musthavetheintentiontokeeptheseforlong-terminvestmentonly.NomemberofASMLsSupervisoryBoard
currentlyownsASMLsharesorrightstoacquireASMLshares.InconcludingtransactionsinASMLshares,Supervisory
BoardmembersmustcomplywithASMLsInsiderTradingRules.
DetailedinformationontheSupervisoryBoardsremunerationcanbefoundinNote31ofthe2013StatutoryFinancial
Statements,includedherein.
WithrespecttotradinginASMLfinancialinstruments,theASMLInsiderTradingRulesstipulate-amongother
requirements-thatmembersoftheSupervisoryBoardmaynottradeduringthetwomonthsprecedingthepublication
oftheannualresults,andneitherduringthethreeweeksbeforepublicationofthequarterlyresults.Inaddition,
membersoftheSupervisoryBoardmaynotperformtransactionsinASMLfinancialinstrumentsduringtheopenperiods
whentheyhaveinsideinformation.ThisrequirementisnotapplicableforSupervisoryBoardmemberswhohavea
managementagreementwithanindependentthirdpartyforthemanagementofherorhisfinancialinstruments.
ASMLhasnotgrantedanypersonalloans,guarantees,ortheliketomembersoftheSupervisoryBoard.ASMLs
ArticlesofAssociationprovidefortheindemnificationofthemembersoftheSupervisoryBoardagainstclaimsthat
areadirectresultoftheirtasksasmembersoftheSupervisoryBoard,providedthatsuchclaimisnotattributableto
willfulmisconductorintentionalrecklessnessofsuchSupervisoryBoardmember.ASMLhasfurtherimplementedthe
indemnificationofthemembersoftheSupervisoryBoardbymeansofseparateindemnificationagreementsforeach
memberoftheSupervisoryBoard.
21
IV. Shareholders and General Meeting of Shareholders

Powers
AGeneralMeetingofShareholdersisheldatleastonceayearandgenerallytakesplaceinVeldhoven.Inthismeeting,
atleastthefollowingitemsarediscussedand/orapproved:
thewrittenreportoftheBoardofManagementcontainingthecourseofaffairsinASMLandtheconductofthe
managementduringthepastfinancialyear;
theadoptionoftheAnnualReports;
thedischargeofthemembersoftheBoardofManagementinrespectoftheirmanagementduringtheprevious
financialyear;
thedischargeofthemembersoftheSupervisoryBoardinrespectoftheirsupervisionduringthepreviousfinancial
year;
ASMLsreservesanddividendpolicyandjustificationthereofbytheBoardofManagement;
eachmaterialchangeinthecorporategovernancestructureofASML;and
anyotheritemtheBoardofManagementortheSupervisoryBoarddeterminetoplaceontheagenda.
TheGeneralMeetingofShareholdershasfurthermore(withdueobservanceofthestatutoryprovisions)thepower:
toresolvetoamendthearticlesofassociation;
toresolvetodissolveASML;
toresolvetoissuesharesifandinsofarastheBoardofManagementhasnotbeendesignatedbytheGeneral
MeetingofShareholdersforthispurpose;
toresolvetoreducetheissuedsharecapital;
toappointmembersoftheSupervisoryBoard;
towithdrawitsconfidenceintheSupervisoryBoard;
toadopttheRemunerationPolicyformembersoftheBoardofManagement;and
todeterminetheremunerationofthemembersoftheSupervisoryBoard.
TheBoardofManagementrequirestheapprovaloftheGeneralMeetingofShareholdersandtheSupervisoryBoardfor
resolutionsregardingasignificantchangeintheidentityorcharacterofASMLoritsbusiness,includinginanyevent:
atransferofthebusinessorvirtuallyallofthebusinesstoathirdparty;
entryintoorterminationoflong-termcooperationbyASMLorasubsidiarywithanotherlegalentityorpartnershipor
asageneralpartnerwithfullliabilityinalimitedorgeneralpartnershipifsuchcooperationortheterminationthereof
isoffar-reachingsignificanceforASML;and
anacquisitionordisposalbyASMLorasubsidiaryofaparticipationinthecapitalofanothercompany,thevalue
ofwhichequalsatleastonethirdoftheamountoftheassetsaccordingtotheConsolidatedBalanceSheet(inthe
ConsolidatedFinancialStatementsreferredtoasStatementofFinancialPosition)withexplanatorynotesattached
totheAnnualReportasmostrecentlyadopted.
ProposalsplacedontheagendabytheSupervisoryBoard,theBoardofManagement,orbyshareholders,providedthat
theyhavesubmittedtheproposalsinaccordancewiththeapplicablelegalprovisions,arediscussedandresolvedupon.
Shareholdersrepresentingatleast1percentageofASMLsoutstandingsharecapitalorrepresentingasharevalueofat
leastEUR50.0millionareentitledtoplaceagendaitemsontheAGMagendaatthelatestsixtydaysbeforetheAGM.
Althoughnewlegislation,effectiveperJanuary1,2013,hasincreasedthepercentagefrom1to3,ASMLsarticlesof
associationstillreflecttheoldrequirementof1percentandEUR50.0million,andthereforethisremainsapplicablefor
ASML.Abouttwoweeksbeforetheclosingofthissixtydaysterm,ASMLnotifiesitsshareholdersabouttheclosingof
thetermonitswebsite.
ArecurringagendaitemisthelimitedauthorizationfortheBoardofManagementtoissue(rightsto)sharesinour
capital,andtoexcludepre-emptiveshareholdersrightsforsuchissuances.Thisagendaitemincludestwoelements:1)
theauthorizationtotheBoardofManagementtoissue5.0percent(rightsto)sharesofASMLsissuedsharecapitalas
ofthedateofauthorization,plusanadditional5.0percentofASMLsissuedsharecapitalasofthedateofauthorization
thatmaybeissuedinconnectionwithmergers,acquisitionsand/or(strategic)alliances;and2)theauthorizationto
excludepre-emptiverightsinrelationtotheaboveshareissue,withamaximumof10.0percentofASMLsissuedshare
capitalasofthedateofauthorization.
Asimplemajorityisrequiredfortheauthorizationtoissueshares;fortheauthorizationtoexcludethepre-emptiverights
asimplemajorityisrequiredincaseatleastfiftypercentofASMLsissuedsharecapitalispresentorrepresentedat
theAGM;otherwiseamajorityoftwothirdsofthevotescastisrequired.TheBoardofManagementmustobtainthe
approvaloftheSupervisoryBoardfortheissuanceofASMLsharesaswellasforexcludingthepre-emptiverights.
22
ItisimportantforASMLtobeabletoissue(rightsto)sharesandtoexcludethepre-emptiveshareholdersrights
insituationswhereitisimperativetobeabletoactquickly,forexamplewhenfinancialopportunitiesariseorwhen
stock(option)plansneedtobeexecutedtoattractandretaintoptalent.Thisauthorizationhasbeenusedinthepast
especiallytooptimizethefinancialpositionofASML.Giventhedynamicsoftheglobalcapitalmarkets,suchfinancing
transactionsgenerallyneedtobeexecutedintheshortestwindowofopportunity.Theopportunitytoissuesharesor
rightstoshares,suchasconvertiblebonds,wouldbelimitedifASMLneededaresolutionoftheGeneralMeetingof
Shareholderstoissuesharesand/ortoexcludetheshareholderspre-emptiverightsandmaythushinderthefinancial
flexibilityofASML.
Anotheragendaitemin2014willbetheproposaltoadoptthedividendproposal,ascommunicatedinASMLspress
releaseonJanuary22,2014.
Inadditiontodividendpayments,ASMLalsointendstoreturncashtoitsshareholdersonaregularbasisthroughshare
buybacksorrepaymentofcapital,subjecttoitsactualandanticipatedlevelofcashgeneratedfromoperations,thecash
requirementsforinvestmentinitsbusiness,itscurrentsharepriceandothermarketconditionsandrelevantfactors.
OnApril24,2013,theGeneralMeetingofShareholdersauthorizedtherepurchaseofuptoamaximumoftwotimes10.0
percentofourissuedsharecapitalasofthedateofauthorizationthroughOctober24,2014andthecancellationofa
maximumoftwotimes10.0percentofourissuedsharecapital.
OnApril17,2013,weannouncedourintentiontorepurchaseuptoEUR1.0billionofourownshareswithinthe
2013-2014timeframe.DuringtheperiodfromApril18,2013uptoandincludingDecember31,2013,wehadpurchased
4,614,179ofoursharesforatotalamountofEUR300.0millionatanaveragepriceofEUR65.02pershare.ASML
intendstocancelallsharesrepurchasedundertheShareBuybackprogram.
Alsoin2014,therequesttogranttheBoardofManagementtheauthoritytorepurchasesharesinitsowncapitalshall
beputontheAGMagenda.Asimplemajorityisrequiredfortheauthorization.TheBoardofManagementmustobtain
theapprovaloftheSupervisoryBoardforeachrepurchaseofASMLshares.Theauthorizationtoberequestedwillbe
limitedinaccordancewiththecurrentarticlesofassociationofASMLandthelaw.Aproposaltocanceltherepurchased
sharessubjecttoaresolutionoftheBoardofManagementwillalsobeputontheAGMagenda.
TheBoardofManagementorSupervisoryBoardmayconveneanEGMasoftenastheydeemnecessary.Suchmeetings
mustbeheldifoneormoreshareholdersandothersentitledtoattendthemeetingsjointlyrepresentingatleastonetenthoftheissuedsharecapitalmakeawrittenrequesttothateffecttotheBoardofManagementandtheSupervisory
Board,specifyingindetailtheitemstobediscussed.
Logistics of the General Meeting of Shareholders
TheconvocationdatefortheAGMislegallysetatforty-twodays,andtherecorddateattwenty-eightdaysbeforethe
AGM.Thosewhoareregisteredasshareholdersattherecorddateareentitledtoattendthemeetingandtoexercise
othershareholderrights.
TheBoardofManagementandSupervisoryBoardshallprovidetheshareholderswiththefactsandcircumstances
relevanttotheproposedresolutions,throughanexplanationtotheagenda,aswellasthroughotherdocuments
necessaryand/orhelpfulforthispurpose.AlldocumentsrelevanttotheGeneralMeetingofShareholders,includingthe
agendawithexplanations,shallbepostedintheInvestorRelationsandCorporateGovernancesectionsonourwebsite.
Theagendaclearlyindicateswhichagendaitemsarevotingitems,andwhichitemsarefordiscussiononly.
ASMLshareholdersmayappointaproxywhocanvoteontheirbehalfintheGeneralMeetingofShareholders.ASML
alsousesaninternetproxyvotingsystem,thusfacilitatingshareholderparticipationwithouthavingtoattendinperson.
Shareholderswhovotedthroughinternetproxyvotingarerequired,however,toappointaproxytoofficiallyrepresent
themattheGeneralMeetingofShareholdersinperson.ASMLalsoprovidesthepossibilityforshareholderstoissue
votingproxiesorvotinginstructionstoanindependentthirdparty(civillawnotary)priortotheAGM.
ResolutionspassedattheGeneralMeetingofShareholdersshallberecordedbyacivillawnotaryandco-signedbythe
ChairmanofthemeetingandwillthereafterbemadeavailableonourwebsitewithintwoweeksaftertheAGM.
23
ThedraftminutesoftheGeneralMeetingofShareholdersareavailableviaourwebsite,andalsouponrequestvia
mailore-mail,nolaterthanthreemonthsafterthemeeting.Shareholdersaregiventheopportunitytoprovidetheir
commentsinthesubsequentthreemonths,andthereaftertheminutesareadoptedbytheChairmanandtheSecretary
ofthemeeting.Theadoptedminutesarealsoavailableonourwebsiteand,uponrequest,viaregularmailore-mail.
Information to the Shareholders
Toensurefairdisclosure,ASMLdistributesCompanyinformationthatmayinfluencethesharepricetoshareholdersand
otherpartiesinthefinancialmarketssimultaneouslyandthroughmeansthatarepublictoallinterestedparties.Incase
ofbilateralcontactswithshareholders,wefollowtheprocedurerelatedtheretoaspublishedonourwebsite.
Whenourannualandquarterlyresultsarepublishedbymeansofapressrelease,interestedparties,including
shareholders,canparticipatethroughconferencecalls,listentoawebcastandviewthepresentationoftheresultson
ourwebsite.Thescheduleforcommunicatingtheannualfinancialresultsisingeneralpublishedthroughapressrelease
andispostedonourwebsite.Inaddition,weprovideinformationtoourshareholdersatourAGM.Alsowepublish
aCorporateSustainabilityReportonourwebsiteeveryyear,reportingonEnvironmental,Health,SafetyandSocial
performance.
Itisourpolicytopostthepresentationsgiventoanalystsandinvestorsatinvestorconferencesonourwebsite.
Informationregardingpresentationstoinvestorsandanalystsandconferencecallsareannouncedinadvanceonour
website;fordetailsseeourfinancialcalendaraspublishedintheInvestorRelationssectiononourwebsite.Meetings
anddiscussionswithinvestorsandanalystsshall,inprinciple,nottakeplaceshortlybeforepublicationofregular
financialinformation.Wedonotassess,commentupon,orcorrectanalystsreportsandvaluationsinadvance,other
thantocommentonfactualerrors.Wedonotpayanyfeestopartiescarryingoutresearchforanalystsreports,orfor
theproductionorpublicationofanalystsreports,andtakenoresponsibilityforthecontentofsuchreports.
AttheGeneralMeetingofShareholders,theBoardofManagementandtheSupervisoryBoardprovideshareholderswith
allrequestedinformation,unlessthisiscontrarytoanoverridinginterestofASML.Ifthisshouldbethecase,theBoard
ofManagementandSupervisoryBoardwillprovidetheirreasonsfornotprovidingtherequestedinformation.
Furthermore,theCorporateGovernancesectiononourwebsiteprovideslinkstowebsitesthatcontaininformation
aboutASMLpublishedorfiledbyASMLinaccordancewithapplicablerulesandregulations.
ASMLsonlyanti-takeoverdeviceisthePreferenceSharesFoundation.ThemechanismsofthisFoundationare
describedinmoredetailinthenextchapteronrequiredinformationArticle10TakeoverDirectiveandthe2013Annual
Reports.
Relationship with Institutional Investors
ASMLfindsitimportantthatitsinstitutionalinvestorsparticipateinitsGeneralMeetingsofShareholders.Toincrease
theparticipationrate,severalmeasureshavebeentakeninthepastfewyears,includingprovidinginternetproxyvoting.
Inaddition,weactivelyapproachourinstitutionalinvestorstodiscusstheirparticipationattheGeneralMeetingsof
Shareholders.
V. The Audit of Financial Reporting and the Position of the Internal and External Auditor
Function
Financial Reporting
ASMLhascomprehensiveinternalproceduresinplaceforthepreparationandpublicationofAnnualReports,quarterly
figures,andallotherfinancialinformation.TheseinternalproceduresarefrequentlydiscussedintheAuditCommittee
andtheSupervisoryBoard.TheDisclosureCommitteeassiststheBoardofManagementinoverseeingASMLs
disclosureactivitiesandensurescompliancewithapplicabledisclosurerequirementsarisingunderU.S.andDutchlaw
andregulatoryrequirements.
TheAuditCommitteereviewsandapprovestheexternalauditorsAuditPlanfortheauditsplannedduringthefinancial
year.TheAuditPlanalsoincludestheactivitiesoftheexternalauditorwithrespecttotheirreviewsofthequarterly
resultsotherthantheannualaccounts.Thesereviewsarebasedonagreeduponproceduresandareapprovedbythe
AuditCommittee.TheexternalauditorregularlyupdatestheAuditCommitteeontheprogressoftheauditsandother
activities.
TheSupervisoryBoardhasreviewedourStatutoryAnnualReportforthefinancialyear2013aspreparedbytheBoardof
Management.DeloittehasdulyexaminedourFinancialStatements,andtheAuditorsReportisincludedintheStatutory
FinancialStatements.
24
Appointment, Role, Assessment of the Functioning of the External Auditor, and the Auditors Fee
InaccordancewithDutchlaw,ASMLsexternalauditorisappointedbytheGeneralMeetingofShareholdersand
isnominatedforappointmentbytheSupervisoryBoarduponadvicefromtheAuditCommitteeandtheBoardof
Management.ASMLscurrentexternalauditor,Deloitte,wasreappointedbythe2013AGMforthereportingyear2014.
Theproposaltoreappointtheexternalauditorforthereportingyear2015,willbeputontheagendaforthe2014AGM.
Fortheyear2013,theAuditCommitteeandmanagementconductedanextensiveassessmentwithrespecttothe
performanceoftheexternalauditoroverthepastyearbymeansofquestionnaires.Theresultsoftheassessmentwere
discussedinameetingwiththeAuditCommitteeandtheexternalauditor.
Annually,theBoardofManagementandtheAuditCommitteeprovidetheSupervisoryBoardwithareportonthe
relationshipwiththeexternalauditor.Therotationoftheresponsibleleadauditpartnereveryfiveyears,whichis
relevantfortheauditorsindependence,isscheduledfor2014,afterfinalizationofthe2013audit.Inordertocomply
withthemandatoryfirmrotationwhichwillbecomeeffectiveperJanuary1,2016,theappointmentofanewauditorwill
beputontheagendaofthe2015AGM.
TheexternalauditorispresentatourAGMtorespondtoquestions,ifany,fromtheshareholdersabouttheauditors
reportontheStatutoryFinancialStatements.
TheAuditCommittee,onbehalfoftheSupervisoryBoard,approvestheremunerationoftheexternalauditorafter
consultationwiththeBoardofManagement.IthasbeenagreedamongthemembersoftheSupervisoryBoardandthe
BoardofManagementthattheAuditCommitteehasthemostrelevantinsightandexperiencetobeabletoapproveboth
items,andthereforetheSupervisoryBoardhasdelegatedtheseresponsibilitiestotheAuditCommittee.
Asof2013,theAuditCommitteewillmonitorcompliancewiththenewDutchrulesonnon-auditservicesprovidedby
ourauditor,whichoutlinesstrictseparationofauditandadvisoryservicesforDutchpublicinterestentities.
InprincipletheExternalAuditorattendsallmeetingsoftheAuditCommittee,unlessthisisdeemednotnecessarybythe
AuditCommittee.Thefindingsoftheexternalauditorarediscussedatthesemeetings.
TheAuditCommitteereportsonallissuesdiscussedwiththeexternalauditortotheSupervisoryBoard,includingthe
externalauditorsreportwithregardtotheauditoftheAnnualReportsaswellasthecontentoftheAnnualReports.
Intheauditreport,theexternalauditorreferstothefinancialreportingrisksandissuesthatwereidentifiedduringthe
audit,internalcontrolmatters,andanyothermattersrequiringcommunicationundertheauditingstandardsgenerally
acceptedintheNetherlandsandintheUnitedStates.
Internal Audit Function
TheinternalauditfunctionofASMLformsoneofthekeyelementstoaddressthetopicsofriskmanagementand
internalcontroloverfinancialreportingasrequiredundertheCodeandtheSarbanes-OxleyAct,respectively.To
ensuretheindependenceofthisfunction,theSeniorDirectorCorporateRiskandAssurancereportstotheBoardof
ManagementandtheAuditCommittee.TheAuditCommitteeisinvolvedindrawinguptheworkscheduleandaudit
scopeoftheinternalauditor.TheinternalauditorregularlyprovidesupdatesonitsfindingstotheAuditCommittee.
VI. Required Information Article 10 Takeover Directive

General
TheEUTakeoverDirectiverequiresthatlistedcompaniespublishadditionalinformationprovidinginsightintodefensive
structuresandmechanismswhichtheyapply.TherelevantprovisionhasbeenimplementedintoDutchlawbymeansof
adecreeofApril5,2006.Pursuanttothisdecree,Dutchcompanieswhosesecuritieshavebeenadmittedtotradingon
aregulatedmarkethavetoincludeinformationintheirAnnualReportwhichcouldbeofimportanceforpersonswhoare
consideringtakinganinterestinthecompany.
25
Thisinformationcomprisesamongstotherthings:
thecapitalstructureofthecompany;
restrictionsonthetransferofsecuritiesandonvotingrights;
specialpowersconferredupontheholdersofcertainshares;
therulesgoverningtheappointmentanddismissalofboardmembersandtheamendmentofthearticlesof
association;
therulesontheissuingandtherepurchasingofsharesbythecompany;
significantagreementstowhichthecompanyisapartyandwhichcontainchangeofcontrolrights(exceptwhere
theirnatureissuchthattheirdisclosurewouldbeseriouslyprejudicialtothecompany);and
agreementsbetweenthecompanyanditsboardmembersoremployeesprovidingforagoldenparachute.
InthissectiontheBoardofManagementandtheSupervisoryBoardprovideforanexplanationtotheinformation-if
applicabletoASML-asrequiredundertheResolutionArticle10oftheTakeoverDirective.
Share Capital
ASML'sauthorizedsharecapitalamountstoEUR126,000,000andisdividedinto:
700,000,000CumulativePreferenceShareswithanominalvalueofEUR0.09each;
699,999,000OrdinaryShareswithanominalvalueofEUR0.09each;and
9,000OrdinarySharesBwithanominalvalueofEUR0.01each.
PerDecember31,2013,446,822,452ordinaryshareswithanominalvalueofEUR0.09eachwereissuedandfullypaid
in,ofwhich5,970,118ordinarysharesareheldbyusintreasury.NoordinarysharesBandnocumulativepreference
sharesareissued.
OurBoardofManagementhasthepowertoissueordinarysharesandcumulativepreferencesharesinsofarasthe
BoardofManagementhasbeenauthorizedtodosobytheGeneralMeetingofShareholders(eitherbymeansofa
resolutionorbyanamendmenttoourArticlesofAssociation).TheBoardofManagementrequiresapprovalofthe
SupervisoryBoardforsuchanissue.TheauthorizationbytheGeneralMeetingcanonlybegrantedforacertain
periodnotexceedingfiveyearsandmaybeextendedfornolongerthanfiveyearsoneachoccasion.Incasethe
GeneralMeetingofShareholdershasnotauthorizedtheBoardofManagementtoissueshares,theGeneralMeetingof
ShareholdersshallhavethepowertoissuesharesupontheproposaloftheBoardofManagement,providedthatthe
SupervisoryBoardhasapprovedsuchproposal.
Shares Issued as a Result of the Acquisition of Cymer
ASMLandCymercompletedthemergerpursuanttowhichASMLacquiredCymeronMay30,2013.Asaresultof
themerger,eachshareofCymercommonstockoutstandingimmediatelypriortothecompletionofthemergerwas
convertedintotherighttoreceiveUSD20.00incashplus1.1502ASMLordinaryshares.AsperDecember31,2013,
weissued36,464,576ordinarysharesforanaggregateamountofEUR2,346.7millioninrelationtotheacquisitionof
Cymer.
Shares Issued in Customer Co-Investment Program
InconnectionwiththeCCIP,onSeptember12,2012,weissued62,977,877ordinarysharestotheStichtingthatholds
sharesonbehalfofInteland12,595,575ordinarysharestotheStichtingthatholdssharesonbehalfofSamsungand
onOctober31,2012,ASMLissued20,992,625ordinarysharestotheStichtingthatholdssharesonbehalfofTSMC.
WereceivedanamountofEUR3,853.9millioninrelationtothesharesissuedundertheCCIP.Forfurtherdetailsonour
CCIPseeNote36.
Synthetic Share Buyback
AttheEGMheldonSeptember7,2012,severalchangesintheArticlesofAssociationofASMLwereadopted,in
connectionwiththeSyntheticShareBuybackeffectuatedinconnectionwiththeCCIP.
TheseamendmentsinsubstanceconstituteaSyntheticShareBuybackinwhichweeffectivelyrepurchased93,411,216
sharesatanaveragepriceofEUR39.91foratotalamountofEUR3,728.3million.ThedifferenceofEUR125.6million
betweenthecapitalrepaymentofEUR3,728.3millionandthenetproceedsfromissuanceofsharesofEUR3,853.9
millionrelatestothecapitalrepaymentonASML'streasuryshareswhichwasalsopartoftheSyntheticShareBuyback.
26
Ordinary Shares
Eachordinaryshareconsistsof900fractionalshares.Fractionalsharesentitletheholderthereoftoafractionaldividend
butdonotentitletheholderthereoftovotingrights.Onlythosepersonswhoholdsharesdirectlyintheshareregister
intheNetherlands,heldbyusatouraddressat5504DRVeldhoven,deRun6501,theNetherlands,orintheNewYork
shareregister,heldbyJPMorganChaseBank,N.A.,P.O.Box64506,St.Paul,MN55164-0506,UnitedStates,can
holdfractionalshares.PersonswhoholdordinarysharesthroughthedepositsystemundertheDutchSecuritiesBank
GiroTransactionsAct(Wetgiraaleffectenverkeer;the''GiroAct'')maintainedbytheDutchcentralsecuritiesdepository
EuroclearNederlandorthroughtheDTCcannotholdfractionalshares.Anordinaryshareentitlestheholderthereofto
castninevotesintheGeneralMeetingofShareholders.AtourAGMheldonApril24,2013,theBoardofManagement
wasauthorizedfromApril24,2013throughOctober24,2014,subjecttotheapprovaloftheSupervisoryBoard,to
issuesharesand/orrightstheretorepresentinguptoamaximumof5.0percentofourissuedsharecapitalatApril24,
2013,plusanadditional5.0percentofourissuedsharecapitalatApril24,2013thatmaybeissuedinconnectionwith
mergers,acquisitionsand/or(strategic)alliances.
HoldersofASML'sordinaryshareshaveapreemptiverightofsubscription,inproportiontotheaggregatenominal
amountoftheordinarysharesheldbythem,toanyissuanceofordinarysharesforcash,whichrightmayberestricted
orexcluded.Ordinaryshareholdershavenoproratapreemptiverightofsubscriptiontoanyordinarysharesissuedfor
considerationotherthancashorordinarysharesissuedtoemployees.IfauthorizedforthispurposebytheGeneral
MeetingofShareholders(eitherbymeansofaresolutionorbyanamendmenttoourArticlesofAssociation),theBoard
ofManagementhasthepowersubjecttoapprovaloftheSupervisoryBoard,torestrictorexcludethepreemptiverights
ofholdersofordinaryshares.AtourAGMheldonApril24,2013,theBoardofManagementwasauthorizedfromApril
24,2013throughOctober24,2014,subjecttoapprovaloftheSupervisoryBoard,torestrictorexcludepreemptive
rightsofholdersofordinarysharesuptoamaximumof10.0percentofourissuedsharecapitalatApril24,2013.With
thisauthorization,thecorrespondingauthorizationgrantedattheEGMheldonSeptember7,2012,ceasedtoapplyto
theextentnotalreadyused.
Wemayrepurchaseourissuedordinarysharesatanytime,subjecttocompliancewiththerequirementsofDutchlaw
andourArticlesofAssociation.AnysuchrepurchasesareandremainsubjecttotheapprovaloftheSupervisoryBoard
andtheauthorizationofshareholdersatASML'sAGM,whichauthorizationmaynotbeformorethan18months.Atthe
AGMheldonApril24,2013,theBoardofManagementhasbeenauthorized,subjecttoSupervisoryBoardapproval,to
repurchasethroughOctober24,2014,uptoamaximumoftwotimes10.0percentofourissuedsharecapitalatApril
24,2013,atapricebetweenthenominalvalueoftheordinarysharespurchasedand110.0percentofthemarketprice
ofthesesecuritiesonNYSEEuronextAmsterdamorNASDAQ.AtourAGMtobeheldonApril23,2014,weshallrequest
theauthorizationfortheBoardofManagementtorepurchaseandcancelsharesforaperiodof18monthsasofthe
2014AGM,i.e.untilOctober23,2015,allinconformitywiththeprovisionsofthelawandourArticlesofAssociation.
OnApril17,2013,ASMLannouncedaShareBuybackprogram,topurchaseuptoanamountofEUR1.0billionofits
ownshareswithinthe2013-2014timeframe.ASMLintendstocancelallsharesrepurchasedunderthisprogram.
Ordinary Shares B
In2012,the9,000ordinarysharesBwithanominalvalueofEUR0.01wereintroduced,duetotheSyntheticShare
Buybackmentionedabove.Apersonwhoholds(amultipleof)100fractionalshares,mayexchangethosefractional
sharesforanordinaryshareB.EveryholderofanordinaryshareBisentitledtoone-ninth(1/9)ofadividend.Each
ordinaryshareBentitlestheholderthereoftocastonevoteattheGeneralMeeting.
Special Voting Rights on the Issued Shares
Therearenospecialvotingrightsontheissuedsharesinoursharecapital.
27
Limitation Voting Rights on Ordinary Shares Indirectly Held by the Participating Customers
PursuanttotheIntelShareholderAgreement,Intel(andtheStichtingAdministratiekantoorMAKTSJAB)willnotbe
entitledtovotetheordinarysharesthatwereacquiredbytheStichtingAdministratiekantoorMAKTSJABaspartof
theCCIPoranyotherordinarysharesotherwisetransferredtotheStichtingAdministratiekantoorMAKTSJAB(under
thecircumstancesdescribedunderStandstill;AdditionalPurchases,inNote36)priortoaShareholderAgreement
TerminationEvent(seeNote36),exceptwhenaSuspensionEvent(seeNote36)occursandiscontinuingorwhere
thefollowingmattersareproposedatanyGeneralMeeting(theVotingRestrictions):(i)anissuanceofASMLshares
orgrantofrightstosubscribeforASMLsharesrepresenting25percentormoreoftheissuedandoutstandingshare
capitalofASMLortherestrictionorexclusionofpre-emptionrightsrelatingthereto(ineachcase,onanaggregatebasis
duringthepreceding12months)orthedesignationoftheBoardofManagementastheauthorizedbodytoresolveon
thesematters;(ii)anauthorizationtorepurchase25percentormoreofASML'sissuedandoutstandingsharecapitalon
anaggregatebasisduringthepreceding12months;(iii)theapprovalofasignificantchangeintheidentityornatureof
ASMLoritsbusiness,includingatransferofallorsubstantiallyallbusinessorassetsofASMLanditssubsidiariesto
athirdparty,theestablishmentorcancellationofalong-lastingcooperationofessentialimportancewithathirdparty
andanacquisitionordispositionofaninterestinthecapitalorassetsofapersonwithavalueofatleastonethirdof
theassetsofASML(onaconsolidatedbasis);(iv)anamendmenttoASML'sArticlesofAssociationthatwouldmaterially
affectthespecificvotingrightsofIntel,wouldmateriallyaffecttheidentityornatureofASMLoritsbusiness,orwould
disproportionately(oruniquely)andadverselyaffecttherightsorbenefitsattachedtoorderivedfromtheordinary
sharesheldbyIntelthroughtheIntelStichtingascomparedtotheshareholders;(v)thedissolutionofASML;and(vi)any
mergerordemergerwhichwouldresultinamaterialchangeintheidentityornatureofASMLoritsbusiness.
TheshareholderagreementsbetweenASMLandtheotherprogramparticipants(TSMCandSamsung)areon
substantiallythesametermsasthoseagreedwithIntel.
Cumulative Preference Shares
In1998,wegrantedtothepreferencesharefoundation,thePreferenceShareOption.Thisoptionwasamendedand
extendedin2003and2007.AthirdamendmenttotheoptionagreementbetweentheFoundationandASMLbecame
effectiveonJanuary1,2009,toclarifytheprocedurefortherepurchaseandcancellationofthepreferenceshareswhen
issued.
ThenominalvalueofthecumulativepreferencesharesisEUR0.09.Thenumberofcumulativepreferenceshares
includedintheauthorizedsharecapitalis700,000,000.
TheFoundationmayexercisethePreferenceShareOptioninsituationswhere,intheopinionoftheBoardofDirectors
oftheFoundation,ASML'sinterests,ASML'sbusinessortheinterestsofASML'sstakeholdersareatstake.Thismay
bethecaseifapublicbidforASML'sshareshasbeenannouncedorhasbeenmade,orthejustifiedexpectationexists
thatsuchabidwillbemadewithoutanyagreementhavingbeenreachedinrelationtosuchabidwithASML.Thesame
mayapplyifoneshareholder,ormoreshareholdersactinginconcert,holdasubstantialpercentageofASML'sissued
ordinaryshareswithoutmakinganofferorif,intheopinionoftheBoardofDirectorsoftheFoundation,the(attempted)
exerciseofthevotingrightsbyoneshareholderormoreshareholders,actinginconcert,ismateriallyinconflictwith
ASML'sinterests,ASML'sbusinessorASML'sstakeholders.
TheobjectivesoftheFoundationaretolookaftertheinterestsofASMLandoftheenterprisesmaintainedbyASML
andofthecompanieswhichareaffiliatedinagroupwithASML,insuchawaythattheinterestsofASML,ofthose
enterprisesandofallpartiesconcernedaresafeguardedinthebestpossibleway,andinfluencesinconflictwiththese
interestswhichmightaffecttheindependenceortheidentityofASMLandthosecompaniesaredeterredtothebest
oftheFoundationsability,andeverythingrelatedtotheaboveorpossiblyconducivethereto.TheFoundationseeksto
realizeitsobjectsbytheacquiringandholdingofcumulativepreferencesharesinthecapitalofASMLandbyexercising
therightsattachedtotheseshares,particularlythevotingrightsattachedtotheseshares.
ThepreferenceshareoptiongivestheFoundationtherighttoacquireanumberofcumulativepreferencesharesasthe
Foundationwillrequire,providedthattheaggregatenominalvalueofsuchnumberofcumulativepreferenceshares
shallnotexceedtheaggregatenominalvalueoftheordinarysharesthathavebeenissuedatthetimeofexerciseofthe
PreferenceShareOptionforasubscriptionpriceequaltotheirnominalvalue.Onlyone-fourthofthesubscriptionprice
ispayableatthetimeofinitialissuanceofthecumulativepreferenceshares,withtheotherthree-fourthsofthenominal
valueonlybeingpayablewhenwecallupthisamount.Exerciseofthepreferenceshareoptioncouldeffectivelydilute
thevotingpoweroftheoutstandingordinarysharesbyone-half.
28
CancellationandrepaymentoftheissuedcumulativepreferencesharesbyASMLrequirestheauthorizationbythe
GeneralMeetingofShareholdersofaproposaltodosobytheBoardofManagementapprovedbytheSupervisory
Board.Ifthepreferenceshareoptionisexercisedandasaresultcumulativepreferencesharesareissued,ASML,at
therequestoftheFoundation,willinitiatetherepurchaseorcancellationofallcumulativepreferencesharesheldbythe
Foundation.InthatcaseASMLisobligedtoeffecttherepurchaseandcancellationrespectivelyassoonaspossible.A
cancellationwillhaveasaresultarepaymentoftheamountpaidandexemptionfromtheobligationtopayuponthe
cumulativepreferenceshares.Arepurchaseofthecumulativepreferencesharescanonlytakeplacewhensuchshares
arefullypaidup.
IftheFoundationwillnotrequestASMLtorepurchaseorcancelallcumulativepreferencesharesheldbytheFoundation
within20monthsafterissuanceoftheseshares,wewillbeobligedtoconveneaGeneralMeetingofShareholdersin
ordertodecideonarepurchaseorcancellationoftheseshares.
TheFoundationisindependentofASML.TheBoardofDirectorsoftheFoundationcomprisesfourindependentvoting
membersfromtheDutchbusinessandacademiccommunities.FormerchairmanMr.A.BaanpassedawayonApril5,
2013andwassucceededbyMr.H.Bodt.AsofJune1,2013,themembersoftheBoardofDirectorsoftheFoundation
are:Mr.H.Bodt,Mr.M.W.denBoogert,Mr.J.M.deJongandMr.A.H.Lundqvist.
Limitations to Transfers of Shares in the Share Capital of ASML
Therearecurrentlynolimitations,eitherunderDutchlaworintheArticlesofAssociationofASML,astothetransferof
sharesinthesharecapitalofASML.
Reporting Obligations under the FMSA
HoldersofoursharesmaybesubjecttoreportingobligationsundertheFMSA.Thedisclosureobligationsunderthe
FMSAapplytoanypersonorentitythat,directlyorindirectly,acquires,holdsordisposesofaninterestinthevoting
rightsand/orthecapitalofapubliclimitedcompanyincorporatedunderthelawsofTheNetherlandswhosesharesare
admittedtotradingonaregulatedmarketwithintheEU,suchasASML.Disclosureisrequiredwhenthepercentage
ofvotingrightsorcapitalinterestofapersonoranentityreaches,exceedsorfallsbelow3,5,10,15,20,25,30,40,
50,60,75or95percent(asaresultofanacquisitionordisposalbysuchperson,orasaresultofachangeinourtotal
numberofvotingrightsorcapitalissued).WithrespecttoASML,theFMSArequiresanypersonorentitywhoseinterest
inthevotingrightsand/orcapitalofASMLreached,exceededorfellbelowthosepercentageintereststonotifytheAFM.
ASMLisrequiredtonotifytheAFMimmediatelyifourvotingrightsand/orcapitalhavechangedby1.0percentor
moresinceourpreviousnotificationonoutstandingvotingrightsandcapital.Inaddition,ASMLmustnotifytheAFM
ofchangesoflessthan1.0percentinASMLsoutstandingvotingrightsandcapitalatleastoncepercalendarquarter,
withineightdaysaftertheendofthequarter.Anypersonwhosedirectorindirectvotingrightsand/orcapitalinterests
meetsorpassesthethresholdsreferredtohere-aboveasaresultofachangeintheoutstandingvotingrightsorcapital
mustnotifytheAFMnolaterthanthefourthtradingdayaftertheAFMhaspublishedsuchachange.
Onceeverycalendaryearwithinfourweeksaftertheendofthecalendaryear,holdersofaninterestof3.0percentor
moreinASML'svotingrightsorcapitalmustnotifytheAFMofanychangesinthecompositionoftheirinterestresulting
fromcertainacts(including,butnotlimitedto,theexchangeofsharesfordepositoryreceiptsandviceversa,andthe
exerciseofrightstoacquireshares).
Subsidiaries,asdefinedintheFMSA,donothaveindependentreportingobligationsundertheFMSA,asinterestsheld
bythemareattributedtotheir(ultimate)parents.AnypersonmayqualifyasaparentforthepurposesoftheFMSA
includinganindividual.Apersonwhoceasestobeasubsidiaryandwhodisposesofaninterestof3.0percentormore
inASML'svotingrightsorcapitalmustimmediatelynotifytheAFM.Asofthatmoment,allnotificationsobligations
undertheFMSAbecomeapplicabletotheformersubsidiary.
Forthepurposeofcalculatingthepercentageofcapitalinterestorvotingrights,thefollowinginterestsmust,among
otherarrangements,betakenintoaccount:sharesandvotes(i)directlyheldbyanyperson;(ii)heldbysuchpersons
subsidiaries;(iii)heldbyathirdpartyforsuchpersonsaccount;(iv)heldbyathirdpartywithwhomsuchpersonhas
concludedanoralorwrittenvotingagreement(includingonthebasisofanunrestrictedpowerofattorney);,(v)held
byathirdpartywithwhomsuchpersonhasagreedtotemporarilytransfervotingrightsagainstpayment;(vi)financial
instrumentsofwhichtheincreaseinvalueiswhollyorpartiallydependentonanincreaseinvalueofoursharesor
distributionsinrespectthereof(includingcertaincashsettledfinancialinstrumentssuchascontractsfordifferenceand
totalreturnswap);(vii)putoptionspursuanttowhichapersoncanberequiredtopurchaseourshares;and(vii)other
contractsunderwhichapersonhasapositioneconomicallycomparabletohavingourshares.
29
Forthesamepurpose,thefollowinginstrumentsqualifyasshares:(i)shares,(ii)depositoryreceiptsforshares(or
negotiableinstrumentssimilartosuchreceipts),(iii)negotiableinstrumentsforacquiringtheinstrumentsunder(i)or(ii)
(suchasconvertiblebonds),and(iv)optionsforacquiringtheinstrumentsunder(i)and(ii).
TheAFMkeepsapublicregistryofandpublishesallnotificationspursuanttotheFMSA.
Non-compliancewiththereportingobligationsundertheFMSAcouldleadtocriminalfines,administrativefines,
imprisonmentorothersanctions.Inaddition,non-compliancewiththereportingobligationsundertheFMSAmayleadto
civilsanctions,including(i)suspensionofthevotingrightsrelatingtothesharesheldbytheoffender,foraperiodofnot
morethanthreeyears,(ii)nullificationofanyresolutionofourGeneralMeetingofShareholderstotheextentthatsuch
resolutionwouldnothavebeenapprovedifthevotesatthedisposalofthepersonorentityinviolationofadutyunder
theFMSAhadnotbeenexercisedand(iii)aprohibitionontheacquisitionbytheoffenderofoursharesorthevotingon
ourordinarysharesforaperiodofnotmorethanfiveyears.
SinceJuly1,2013,wemay,inbrief,requestEuroclearNederlandanditsadmittedinstitutionsaswellasintermediaries,
institutionsofinvestmentsfunds(intheNetherlandsandabroad)ofwhichwereasonablyexpectthattheyholdour
sharesotherthanasbeneficialowner,toprovidecertaindetailsontheidentityandnumberofsharesheld,oftheir
clientsforwhomtheyholdourshares.Wemustkeeptheinformationreceivedconfidential.Wemayonlymuchsuch
requestsduringaperiodof60daysuptothedayonwhichourgeneralmeetingwillbeheld.Nodetailsarerequiredto
begiveninrespectofshareholderswithaninterestoflessthan0.5percentofourissuessharecapital.Ashareholder
who,individuallyortogetherwithothershareholders,holdsaninterestofatleast10percentoftheissuedsharecapital
mayrequestustoestablishtheidentityofourshareholdersinthismannersothatwecanforwardtotheminformation
providedbysuchshareholderinrespectofanitemontheagendaforthegeneralmeeting.Thisrequestmayonlybe
nd
madeduringaperiodof60daysuntil(andnotincluding)the42 daybeforethedayonwhichtheGeneralMeetingwill
beheld.
Thefollowingtablesetsforththetotalnumberofordinarysharesownedbyeachshareholderwhosebeneficial
ownershipofordinarysharesisatleast3.0percentofourordinarysharesissuedandoutstandingasofDecember31,
2013.TheinformationsetoutbelowissolelybasedonpublicfilingsmadewiththeSECandAFMonFebruary5,2014.
Identity of Person or Group

1
StichtingAdministratiekantoorMAKTSJAB/Intel
2
CapitalGroupInternational,Inc
3
BlackRockInc.
4
StichtingAdministratiekantoorTSMC/TSMC
5
FMRLLC
1
2
4
5
6
Shares
Owned
62,977,877
51,453,097
22,982,001
20,992,625
19,537,364
Percent of
6
Class
14.29%
11.67%
5.21%
4.76%
4.43%
StichtingAdminstratiekantoorMAKTSJABownsthestatedpercentageofourordinarysharesandhasissuedcorrespondingdepositoryreceiptsto
Intel.
AsreportedtotheDutchAuthorityfortheFinancialMarketsonSeptember3,2012,CapitalGroupInternational,Inc.indirectlyhasvotingrights
relatedto51,453,097sharesofourordinarysharesbutdoesnothaveownershiprightsrelatedtothoseshares.Inaddition,CRMC,whichwebelieve
tobeanaffiliateofCapitalGroupInternational,Inc.,reportedtotheDutchAuthorityfortheFinancialMarketsonAugust2,2011,thatitholds
votingrightsrelatedto44,579,832sharesofourordinarysharesbutdoesnothaveownershiprightsrelatedtothoseshares.CapitalWorldInvestors
reportedonaSchedule13-G/AfiledwiththeCommissiononJune10,2013,thatitisthebeneficialownerof45,026,116sharesofourordinaryshares
asaresultofitsaffiliationwithCRMC.
BasedsolelyontheSchedule13-G/AfiledbyBlackRockInc.withtheCommissiononFebruary3,2014.TheJuly2,2013publicfilingwiththeAFM
showsaggregateholdingsofvariousBlackRockfundsof(basedontotalnumberofissuedsharesasper2July2013)3.68%insharesand4.42%in
votingrights.
StichtingAdministratiekantoorTSMCownsthestatedpercentageofordinarysharesandhassimultaneouslyissuedcorrespondingdepository
receiptstoTSMC.
BasedsolelyontheSchedule13-G/AfiledbyFMRLLCwiththeCommissiononFebruary14,2013.FMRLLCpreviouslyreportedontheSchedule
13-G/AfiledwiththeCommissiononFebruary12,2012thatitowned36,311,008ofourordinaryshares.
Asapercentageofthetotalnumberofordinarysharesoutstanding(440,852,334)asofDecember31,2013
30
Appointment of Board of Management and Supervisory Board

BoardofManagement
TherulesgoverningtheappointmentanddismissalofmembersoftheBoardofManagementaredescribedinsectionII.
above.
SupervisoryBoard
TherulesgoverningtheappointmentanddismissalofmembersoftheSupervisoryBoardaredescribedinsectionIII.
above.
AmendmentoftheArticlesofAssociation
TheGeneralMeetingofShareholderscanresolvetoamendourArticlesofAssociation.The(proposed)amendment
requirestheapprovaloftheSupervisoryBoard.
AresolutiontoamendtheArticlesofAssociationisadoptedataGeneralMeetingofShareholdersatwhichmorethan
onehalfoftheissuedsharecapitalisrepresentedandwithatleastthree-fourthsofthevotescast;iftherequiredshare
capitalisnotrepresentedatameetingconvenedforthatpurpose,asubsequentmeetingshallbeconvened,tobeheld
withinfourweeksofthefirstmeeting,atwhich,irrespectiveofthesharecapitalrepresented,theresolutioncanbe
adoptedwithatleastthree-fourthsofthevotescast.IfaresolutiontoamendtheArticlesofAssociationisproposed
bytheBoardofManagement,theresolutionwillbeadoptedwithanabsolutemajorityofvotescastirrespectiveofthe
representedsharecapitalattheGeneralMeetingofShareholders.
Thecompleteproposalsshouldbemadeavailableforinspectionbytheshareholdersandtheothersentitledto
attendmeetingsatourofficeandatabankinginstitutiondesignatedintheconvocationtotheGeneralMeetingof
Shareholders,asfromthedateofsaidconvocationuntilthecloseofthatmeeting.Furthermore,wemustconsultNYSE
EuronextAmsterdamandtheAFM,beforetheamendmentisproposedtoourshareholders.
TheaboverequirementsapplicabletotheamendmentoftheArticlesofAssociation,assetforthintheArticles
ofAssociation,aremorestringentthantheminimumapprovalrequirementsunderDutchlaw(whichonlyrequires
approvalbytheGeneralMeetinginadditiontotheapprovaloftheSupervisoryBoardofaproposalfromtheBoardof
ManagementtoamendtheArticlesofAssociation).
Severance Payments under Agreements with Members of Board of Management
EmploymentagreementsrespectivelymanagementservicesagreementsforallmembersoftheBoardofManagement
containspecificprovisionsregardingseverancepayments(includingthoseemploymentagreementsthatwereentered
intowithmembersoftheBoardofManagementbeforeMarch31,2004(perJuly1,2013)).IfASMLgivesnoticeof
terminationoftheemploymentagreementforreasonswhicharenotexclusivelyormainlyfoundinactsoromissionsof
theboardmemberconcerned,aseverancepaymentnotexceedingoneyearbasesalarywillbepaidupontheeffective
dateoftermination.ThisseverancepaymentwillalsobepaidincaseaBoardofManagementmembergivesnoticeof
terminationoftheemploymentagreementinconnectionwithasubstantialdifferenceofopinionbetweentherespective
executiveandtheSupervisoryBoardregardingher/hisemploymentagreement,her/hisfunctionorourstrategy.
BoardofManagementmembersshallalsobeentitledtotheaforementionedseverancepaymentsintheeventASMLor
itslegalsuccessorgivesnoticeofterminationinconnectionwithaChangeofControl(asdefinedintheemployment
agreement)orifsuchBoardofManagementmembergivesnoticeofterminationdirectlyrelatedtosuchChangeof
Control,andsuchnoticeisgivenwithintwelvemonthsfromthedateonwhichtheChangeofControloccurs.
31
VII. Deviation from the Code

Forclaritypurposes,ASMLlistsbelowitsdeviationfromtheCodeandreasonsfordoingso.Thedeviationfollowsthe
orderoftherecommendationsintheCode.
II.2.5
AlthoughASMLdoesnotconsiderASMLsexecutionofthisbestpracticeadeviationfromtheCode,itcouldbe
interpretedassuch.
ThemembersoftheBoardofManagementareeligibletoreceiveperformanceshareswhichwillbeawardedannually
undertheconditionoffulfillmentofpredeterminedperformancetargets,whicharemeasuredoveraperiodofthree
calendaryears.Oncethesharesareunconditionallyawardedafterfulfillmentoftheperformanceconditions,the
shareswillberetained(foralock-upperiod)bytheBoardofManagementmemberforatleasttwoyearsafterthe
dateofunconditionalawardoruntiltheterminationofemployment,whicheverperiodisshorter.Thedateofrelease
liesthreeyearsaftertheoriginaldateoftargetsetting,andthemembersoftheBoardofManagementhavetoretain
theperformancesharesforatleasttwosubsequentyears.Accordingly,thetotalperiodbeforeoneobtainsfullrights
totheperformanceshareswillbefiveyears.TheRemunerationCommitteebelievesthatthetotalresultingperiod
isincompliancewiththeCode.TheAGMapprovedtheperformancesharearrangementinaccordancewiththe
RemunerationPolicy(version2014)fortheBoardofManagementonApril24,2013.
TheBoardofManagementandtheSupervisoryBoard,
32
Management Board Report

About ASML
ASMLmakespossibleaffordablemicroelectronicsthatimprovethequalityoflife.ASMLinventsanddevelopscomplex
technologyforhigh-techlithography,metrologyandsoftwaresolutionsforthesemiconductorindustry.ASML'sguiding
principleiscontinuingMoore'sLawtowardseversmaller,cheaper,morepowerfulandenergy-efficientsemiconductors.
Oursuccessisbasedonthreepillars:technologyleadershipcombinedwithcustomerandsupplierintimacy,highly
efficientprocessesandentrepreneurialpeople.Weareamultinationalcompanywithover70locationsin16countries,
headquarteredinVeldhoven,theNetherlands.AsofDecember31,2013,weemployed10,360payrollemployees(2012:
8,497)and2,865temporaryemployees(2012:2,139),measuredinFTEs.ASMListradedonNYSEEuronextAmsterdam
andNASDAQunderthesymbolASML.
In2013,wegeneratednetsalesofEUR5,245.3millionandoperatingincomeofEUR1,275.1millionor24.3percent
ofnetsales.Netincomein2013amountedtoEUR1,193.8millionor22.8percentofnetsales,representingbasicnet
incomeperordinaryshareofEUR2.78.
AllinformationdisclosedinthisManagementBoardReportisprovidedasasupplementto,andshouldbereadin
conjunctionwith,ourConsolidatedFinancialStatementsandtheaccompanyingnotestotheConsolidatedFinancial
Statements.
OnMay30,2013weacquired100percentoftheissuedsharecapitalofCymer.Comparativefinancialinformation
presentedintheStatutoryAnnualReportdoesnotincludeCymer,unlessindicatedotherwise.
Risk Factors
Inconductingourbusiness,wefacemanyrisksthatmayinterferewithourbusinessobjectives.Someoftheserisks
relatetoouroperationalprocesses,whileothersrelatetoourbusinessenvironment.Itisimportanttounderstandthe
natureoftheserisksandtheimpacttheymayhaveonourbusiness,financialconditionandresultsofoperations.Some
ofthemorerelevantrisksaredescribedbelow.Theserisksarenottheonlyonesthatweface.Somerisksmaynotyet
beknowntousandcertainrisksthatwedonotcurrentlybelievetobematerialcouldbecomematerialinthefuture.
Summary
StrategicRisk
Wederivemostofourrevenuesfromthesaleofarelativelysmallnumberofsystems.
RisksRelatedtotheSemiconductorIndustry
Thesemiconductorindustryishighlycyclicalandwemaybeadverselyaffectedbyanydownturn;
Ourbusinesswillsufferifwedonotrespondrapidlytocommercialandtechnologicalchangesinthesemiconductor
industry;and
Wefaceintensecompetition.
Governmental,LegalandComplianceRisks
Failuretoadequatelyprotecttheintellectualpropertyrightsuponwhichwedependcouldharmourbusiness;
Defendingagainstintellectualpropertyclaimsbroughtbyotherscouldharmourbusiness;
Wearesubjecttorisksinourinternationaloperations;and
Becauseoflaborlawsandpractices,anyworkforcereductionsthatwemayseektoimplementinordertoreduce
costscompany-widemaybedelayedorsuspended.
33
OperationalRisks
Thenumberofsystemswecanproduceislimitedbyourdependenceonalimitednumberofsuppliersofkey
components;
Thepaceofintroductionofournewproductsisacceleratingandisaccompaniedbypotentialdesignandproduction
delaysandbysignificantcosts;
AsLithographyTechnologiesbecomeMoreComplex,ourR&DProgramsbecomeMoreRiskyandMoreExpensive
Wearedependentonthecontinuedoperationofalimitednumberofmanufacturingfacilities;
Wemaybeunabletomakedesirableacquisitionsortointegratesuccessfullyanybusinessesweacquire;and
Ourbusinessandfuturesuccessdependonourabilitytoattractandretainasufficientnumberofadequately
educatedandskilledemployees.
FinancialRisks
Ahighpercentageofnetsalesisderivedfromafewcustomers;and
Fluctuationsinforeignexchangeratescouldharmourresultsofoperations.
RisksRelatedtoourOrdinaryShares
Wemaynotdeclarecashdividendsatallorinanyparticularamountsinanygivenyear;
Restrictionsonshareholderrightsmaydilutevotingpower;and
ParticipatingcustomersinourCCIPtogetherownasignificantamountofourordinaryshares.
Explanation Per Risk

StrategicRisk
We Derive Most of Our Revenues from the Sale of a Relatively Small Number of Systems
Wederivemostofourrevenuesfromthesaleofarelativelysmallnumberoflithographyequipmentsystems(157unitsin
2013and170unitsin2012),withanASPpersystemin2013ofEUR25.4million(EUR27.4millionfornewsystemsand
EUR6.9millionforusedsystems)andanASPpersystemin2012ofEUR22.4million(EUR24.8millionfornewsystems
andEUR7.6millionforusedsystems).Asaresult,thetimingofrecognitionofrevenueforaparticularreportingperiod
fromasmallnumberofsystemsalesmayhaveamaterialadverseeffectonourbusiness,financialconditionandresults
ofoperationsinthatperiod.Specifically,thefailuretoreceiveanticipatedorders,ordelaysinshipmentsneartheendof
aparticularreportingperiod,due,forexample,to:
Adownturninthehighlycyclicalsemiconductorindustry;
Unanticipatedshipmentrescheduling;
Cancellationororderpush-backbycustomers;
Unexpectedmanufacturingdifficulties;or
Delaysindeliveriesbysuppliers
maycausenetsalesinaparticularreportingperiodtofallsignificantlybelownetsalesinpreviousperiodsorbelowour
expectednetsales,andmayhaveamaterialadverseeffectonourresultsofoperationsforthatperiod.Inparticular,our
publishedquarterlyearningsmayvarysignificantlyfromquartertoquarterandmayvaryinthefutureforthereasons
discussedabove.
RisksRelatedtotheSemiconductorIndustry
The Semiconductor Industry is Highly Cyclical and We May Be Adversely Affected by Any Downturn
Asasuppliertotheglobalsemiconductorindustry,wearesubjecttotheindustrysbusinesscycles,ofwhichthetiming,
durationandvolatilityaredifficulttopredict.Thesemiconductorindustryhashistoricallybeencyclical.Salesofour
lithographysystemsdependinlargepartuponthelevelofcapitalexpendituresbysemiconductormanufacturers.These
capitalexpendituresdependuponarangeofcompetitiveandmarketfactors,including:
Thecurrentandanticipatedmarketdemandforsemiconductorsandforproductsutilizingsemiconductors;
Semiconductorprices;
Semiconductorproductioncosts;
Changesinsemiconductorinventorylevels;
Generaleconomicconditions;and
Accesstocapital.
Reductionsordelaysincapitalequipmentpurchasesbyourcustomerscouldhaveamaterialadverseeffectonour
business,financialconditionandresultsofoperations.
34
Inanindustrydownturn,ourabilitytomaintainprofitabilitywilldependsubstantiallyonwhetherweareabletolower
ourcostsandbreak-evenlevel,whichisthelevelofsalesthatwemustreachinayeartoachievepositivenetincome.
Ifsalesdecreasesignificantlyasaresultofanindustrydownturnandweareunabletoadjustourcostsoverthesame
period,ournetincomemaydeclinesignificantlyorwemaysufferlosses.Asweneedtokeepcertainlevelsofinventory
onhandtomeetanticipatedproductandservicedemand,wemayalsoincurincreasedcostsrelatedtoinventory
obsolescenceinanindustrydownturn.Inaddition,industrydownturnsgenerallyresultinovercapacity,resultingin
downwardpressureonsalespricesandimpairmentofmachineryandequipment,whichinthepasthashad,andinthe
futurecouldhave,amaterialsaleadverseeffectonourbusiness,financialconditionandresultsofoperations.
Theongoingfinancialcrisesthathaveaffectedtheinternationalbankingsystemandglobalfinancialmarketssince
2008havebeeninmanyrespectsunprecedented.ConcernspersistoverthedebtburdenofcertainEurozonecountries
andtheirabilitytomeetfutureobligations,theoverallstabilityoftheeuro,andthesuitabilityoftheeuroasasingle
currencygiventhediverseeconomicandpoliticalcircumstancesinindividualEurozonecountries.Thesepotential
developmentsormarketperceptionsconcerningtheseandrelatedissues,remainingconcernsovertheeffectofthis
financialcrisisonfinancialinstitutionsinEuropeandglobally,andtheinstabilityofthefinancialmarketsandtheglobal
economyingeneralcouldresultinanumberoffollow-oneffectsonourbusiness,including(i)decliningbusinessand
consumerconfidenceresultinginreduced,ordelayedpurchaseofourproductsorshorter-termcapitalexpenditures
forourproducts;insolvencyofkeysuppliersresultinginproductdelays,(ii)aninabilityofcustomerstoobtaincreditto
financepurchasesofourproducts,delayedpaymentsfromourcustomersand/orcustomerinsolvenciesand(iii)other
adverseeffectsthatwecannotcurrentlyanticipate.Ifglobaleconomicandmarketconditionsdeteriorate,wearelikely
toexperiencematerialadverseimpactsonourbusiness,financialconditionandresultsofoperations.
Conversely,inanticipationofperiodsofincreasingdemandforsemiconductormanufacturingequipment,wemust
maintainsufficientmanufacturingcapacityandinventoryandwemustattract,hire,integrateandretainasufficient
numberofqualifiedemployeestomeetcustomerdemand.Ourabilitytopredictthetimingandmagnitudeofindustry
fluctuationsislimitedandourproductsrequiresignificantlead-timetosuccessfullycomplete.Accordingly,wemaynot
beabletoeffectivelyincreaseourproductioncapacitytorespondtoanincreaseincustomerdemandinanindustry
upturnresultinginlostsales,damagetocustomerrelationshipsandwemaylosemarketshare.
Our Business Will Suffer If We Do Not Respond Rapidly to Commercial and Technological Changes in the
Semiconductor Industry
Thesemiconductormanufacturingindustryissubjectto:
Rapidchangetowardsmorecomplextechnologies;
Frequentnewproductintroductionsandenhancements;
Evolvingindustrystandards;
Changesincustomerrequirements;and
Continuedshorteningofproductlifecycles.
Ourproductscouldbecomeobsoletesoonerthananticipatedbecauseofafasterthananticipatedchangeinoneor
moreofthetechnologiesrelatedtoourproductsorinmarketdemandforproductsbasedonaparticulartechnology.
Oursuccessindevelopingnewproductsandinenhancingourexistingproductsdependsonavarietyoffactors,
includingthesuccessfulmanagementofourR&Dprogramsandthetimelycompletionofproductdevelopmentand
designrelativetocompetitors.Ifwedonotdevelopandintroducenewandenhancedsystemsatcompetitivepricesand
onatimelybasis,ourcustomerswillnotintegrateoursystemsintotheplanninganddesignofnewproductionfacilities
andupgradesofexistingfacilities,whichwouldhaveamaterialadverseeffectonourbusiness,financialconditionand
resultsofoperations.
Inparticular,weareinvestingconsiderablefinancialandotherresourcestodevelopandintroducenewproductsand
productenhancements,suchasEUV,Immersionandholisticlithography.Ifweareunabletosuccessfullydevelopand
introducetheseproductsandtechnologies,orifourcustomersdonotfullyadoptthenewtechnologies,productsor
productenhancementsduetoapreferenceformoreestablishedoralternativenewtechnologiesandproductsorforany
otherreason,wemaynotrecoupallofourinvestmentsinthesetechnologiesorproducts,whichcouldhaveamaterial
adverseeffectonourbusiness,financialconditionandresultsofoperations.
35
ThesuccessofEUVremainsparticularlydependentonlightsourceavailabilityandcontinuingrelatedtechnical
advancesbyusandoursuppliers,aswellasinfrastructuredevelopmentsinmasksandphotoresists,withoutwhich
EUVtoolscannotachievetheproductivityandyieldrequiredtoeconomicallyjustifythehigherpriceofthesetools.A
delayinthedevelopmentsofthesetoolscoulddiscourageorresultinmuchsloweradoptionofthistechnology.Ifthe
technologiesthatwepursuetoassistourcustomersinproducingsmallerandmoreefficientchips,arenotaseffective
asthosedevelopedbyourcompetitors,orifourcustomersadoptnewtechnologicalarchitecturesthatarelessfocused
onlithography,thismayadverselyaffectourbusiness,financialconditionandresultsofoperations.
We Face Intense Competition
Thesemiconductorequipmentindustryishighlycompetitive.Theprincipalelementsofcompetitioninourmarketare:
Thetechnicalperformancecharacteristicsofalithographysystem;
Thevalueofownershipofthatsystembasedonitspurchaseprice,maintenancecosts,productivity,andcustomer
serviceandsupportcosts;
TheexchangerateoftheeuroparticularlyagainsttheJapaneseyenwhichresultsinvaryingpricesandmargins;
Thestrengthandbreadthofourportfolioofpatentsandotherintellectualpropertyrights;and
Ourcustomersdesiretoobtainlithographyequipmentfrommorethanonesupplier.
Ourcompetitivenessincreasinglydependsuponourabilitytodevelopnewandenhancedsemiconductorequipment
thatiscompetitivelypricedandintroducedonatimelybasis,aswellasourabilitytoprotectanddefendourintellectual
propertyrights.SeeNote11andNote26toourConsolidatedFinancialStatements.
WecompeteprimarilywithNikonandtoalesserdegreewithCanon.BothNikonandCanonhavesubstantialfinancial
resourcesandbroadpatentportfolios.Eachcontinuestointroducenewproductswithimprovedpriceandperformance
characteristicsthatcompetedirectlywithourproducts,whichmaycauseadeclineinoursalesoralossofmarket
acceptanceforourlithographysystems.Inaddition,adversemarketconditions,industryovercapacityoradecreasein
thevalueoftheJapaneseyeninrelationtotheeuroortheU.S.dollar,couldfurtherintensifyprice-basedcompetition
inthoseregionsthataccountforthemajorityofoursales,resultinginlowerpricesandmarginswhichcouldhavea
materialadverseeffectonourbusiness,financialconditionandresultsofoperations.
Inadditiontocompetitorsinlithography,wemayfacecompetitionwithrespecttoalternativetechnologiesforthenoncriticallayersorforalllayers.IfwefailtokeeppacewithMoore'slaw,whichpostulatesthatthenumberoftransistors
onachipdoublesapproximatelyevery18to24monthsatequivalentmarginalcosts,orintheeventthedeliveryofnew
technologyisdelayed,ourcustomersmayoptforothersolutionsinICmanufacturingasasubstituteforpurchasingour
products.
Also,inthefuturetheICindustrymaynotfinditeconomicallyfeasibletomaintainthepaceofMooreslawthrough
theuseoflithographysystems,whichcouldresultinourcustomerschoosingothersolutionsthanlithographyforIC
manufacturing.IfthepaceofMooreslawisnotmaintained,thiscouldalsoresultintheICindustryutilizingfewer
leadingtechnologysystems,whichcouldresultinlowersalesandmargins.
Governmental,LegalandComplianceRisks
Failure to Adequately Protect the Intellectual Property Rights Upon Which We Depend Could Harm Our Business
Werelyonintellectualpropertyrightssuchaspatents,copyrightsandtradesecretstoprotectourproprietary
technology.However,wefacetheriskthatsuchmeasurescouldprovetobeinadequatebecause:
Intellectualpropertylawsmaynotsufficientlysupportourproprietaryrightsormaychangeinthefutureinamanner
adversetous;
Patentrightsmaynotbegrantedorconstruedasweexpect;
Patentswillexpirewhichmayresultinkeytechnologybecomingwidelyavailablethatmayhurtourcompetitive
position;
Thestepswetaketopreventmisappropriationorinfringementofourproprietaryrightsmaynotbesuccessful;and
Thirdpartiesmaybeabletodeveloporobtainpatentsforsimilarcompetingtechnology.
Inaddition,litigationmaybenecessarytoenforceourintellectualpropertyrights,todeterminethevalidityandscopeof
theproprietaryrightsofothers,ortodefendagainstclaimsofinfringement.Anysuchlitigationmayresultinsubstantial
costsanddiversionofmanagementresources,and,ifdecidedunfavorablytous,couldhaveamaterialadverseeffect
onourbusiness,financialconditionandresultsofoperations.
36
Defending Against Intellectual Property Claims Brought by Others Could Harm Our Business
Inthecourseofourbusiness,wearesubjecttoclaimsbythirdpartiesallegingthatourproductsorprocesses
infringeupontheirintellectualpropertyrights.Ifsuccessful,suchclaimscouldlimitorprohibitusfromdevelopingour
technologyandmanufacturingourproducts,whichcouldhaveamaterialadverseeffectonourbusiness,financial
conditionandresultsofoperations.
Inaddition,ourcustomersmaybesubjecttoclaimsofinfringementfromthirdparties,allegingthatourproductsused
bysuchcustomersinthemanufactureofsemiconductorproductsand/ortheprocessesrelatingtotheuseofour
productsinfringeoneormorepatentsissuedtosuchparties.Ifsuchclaimsweresuccessful,wecouldberequired
toindemnifycustomersforsomeorallofanylossesincurredordamagesassessedagainstthemasaresultofsuch
infringement,whichcouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.
Wealsomayincursubstantiallicensingorsettlementcosts,whichalthoughpotentiallystrengtheningorexpandingour
intellectualpropertyrightsorlimitingourexposuretointellectualpropertyclaimsofthirdparties,mayhaveamaterial
adverseeffectonourbusiness,financialconditionandresultsofoperations.
Fromlate2001through2004,ASMLwaspartytoaseriesofcivillitigationsandadministrativeproceedingsinwhich
NikonallegedASMLsinfringementofNikonpatentsrelatingtolithography.ASMLinturnfiledclaimsagainstNikon.
PursuanttoagreementsexecutedonDecember10,2004,ASMLandNikonagreedtosettleallpendingworldwide
patentlitigationbetweenthecompanies.Thesettlementincludedanexchangeofreleases,apatentCross-License
agreementrelatedtolithographyequipmentusedtomanufacturesemiconductordevicesandpaymentstoNikonby
ASML.BeginningonJanuary1,2015,thepartiesmaybringsuitforinfringementofpatentssubjecttotheNikonCrossLicenseAgreement,includinganyinfringementthatoccurredduringtheCross-LicenseTransitionPeriod.Damages
resultingfromclaimsforpatentinfringementoccurringduringtheCross-LicenseTransitionPeriodarelimitedtothree
percentofthenetsalespriceofproductsfoundtoinfringevalidandenforceablepatents.
We Are Subject to Risks in Our International Operations
ThemajorityofoursalesaremadetocustomersoutsideEurope.Thereareanumberofrisksinherentindoingbusiness
insomeofthoseregions:
Potentiallyadversetaxconsequences;
Unfavorablepoliticaloreconomicenvironments;
Unexpectedlegalorregulatorychanges;
Aninabilitytoeffectivelyprotectintellectualproperty;and
Adverseeffectsofforeigncurrencyfluctuations.
Ifweareunabletomanagesuccessfullytherisksinherentinourinternationalactivities,ourbusiness,financialcondition
andresultsofoperationscouldbemateriallyandadverselyaffected.
Inparticular,42.4percentofour2013netsalesand31.3percentofour2012netsaleswerederivedfromcustomers
inTaiwan.Taiwanhasauniqueinternationalpoliticalstatus.ThePeoplesRepublicofChinaassertssovereigntyover
TaiwananddoesnotrecognizethelegitimacyoftheTaiwanesegovernment.ChangesinrelationsbetweenTaiwanand
thePeoplesRepublicofChina,TaiwanesegovernmentpoliciesandotherfactorsaffectingTaiwanspolitical,economic
orsocialenvironmentcouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.
Inaddition,theinstallationandservicingofourproductsrequiresustotraveltoourcustomerspremises.Natural
disasterscouldaffectourabilitytodoso.Forexample,theJapaneseearthquakein2011resultedinthedisruptionof
ourinstallationandservicingofsystemsforourcustomersinJapan.Naturaldisastersinareaswhereourcustomersare
locatedcouldpreventordisrupttheinstallationorservicingofoursystems.
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
Thesemiconductormarketishighlycyclicalandasaconsequencewemayneedtoimplementworkforcereductionsin
caseofadownturn,inordertoadapttosuchmarketchanges.Inaccordancewithlaborlawsandpracticesapplicable
inthejurisdictionsinwhichweoperate,areductionofanysignificancemaybesubjecttoformalproceduresthatcan
delayormayresultinthemodificationofourplannedworkforcereductions.Forexample,ASMLNetherlandsB.V.,our
operatingsubsidiaryintheNetherlands,hasaWorksCouncil,asrequiredbyDutchlaw.IftheWorksCouncilrenders
contraryadviceinconnectionwithaproposedworkforcereductionintheNetherlands,butwenonethelessdetermine
toproceed,wemusttemporarilysuspendanyactionwhiletheWorksCouncildetermineswhethertoappealtothe
EnterpriseChamberoftheAmsterdamCourtofAppeal.Thisappealprocesscancauseadelayofseveralmonthsand
mayrequireustoaddressanyproceduralinadequaciesidentifiedbytheCourtinthewaywereachedourdecision.Such
delayscouldimpairourabilitytoreducecostscompany-widetolevelscomparabletothoseofourcompetitors.
37
OperationalRisks
The Number of Systems We Can Produce is Limited by Our Dependence on a Limited Number of Suppliers of Key
Components
Werelyonoutsidevendorsforthecomponentsandsubassembliesusedinoursystems,eachofwhichisobtainedfrom
asinglesupplieroralimitednumberofsuppliers.Ourrelianceonalimitedgroupofsuppliersinvolvesseveralrisks,
includingapotentialinabilitytoobtainanadequatesupplyofrequiredcomponentsandtheriskofuntimelydeliveryof
thesecomponentsandsubassemblies.
ThenumberoflithographysystemsweareabletoproducemaybelimitedbytheproductioncapacityofZeiss.Zeiss
isoursinglesupplieroflenses,collectorsandothercriticalopticalcomponents.IfZeisswereunabletomaintainand
increaseproductionlevelsorifweareunabletomaintainourbusinessrelationshipwithZeissinthefuturewecouldbe
unabletofulfillorders,whichcoulddamagerelationshipswithcurrentandprospectivecustomersandhaveamaterial
adverseeffectonourbusiness,financialconditionandresultsofoperations.IfZeissweretoterminateitsrelationship
withusorifZeisswereunabletomaintainproductionoflensesoveraprolongedperiod,wewouldeffectivelycease
tobeabletoconductourbusiness.InadditiontoZeisscurrentpositionasoursinglesupplieroflensesandtheCO 2
lasers,usedinourthird-generation(NXE:3300B)EUVsystems,areavailablefromonlyalimitednumberofsuppliers.
Manufacturingsomeofthesecomponentsandsubassembliesthatweuseinourmanufacturingprocessesisan
extremelycomplexprocessandcouldresultindelaysbyoursuppliers.Aprolongedinabilitytoobtainadequate
deliveriesofcomponentsorsubassemblies,oranyothercircumstancethatrequiresustoseekalternativesourcesof
supply,couldsignificantlyhinderourabilitytodeliverourproductsinatimelymanner,whichcoulddamagerelationships
withcurrentandprospectivecustomersandhaveamaterialadverseeffectonourbusiness,financialconditionand
resultsofoperations.
The Pace of Introduction of Our New Products is Accelerating and Is Accompanied by Potential Design and
Production Delays and by Significant Costs
Thedevelopmentandinitialproduction,installationandenhancementofthesystemsweproduceisoftenaccompanied
bydesignandproductiondelaysandrelatedcostsofanaturetypicallyassociatedwiththeintroductionandtransition
tofull-scalemanufacturingofcomplexcapitalequipment.Whileweexpectandplanforacorrespondinglearning-curve
effectinourproductdevelopmentcycle,wecannotpredictwithprecisionthetimeandexpenserequiredtoovercome
theseinitialproblemsandtoensurefullperformancetospecifications.Moreover,weanticipatethatthislearning-curve
effectwillcontinuetopresentincreasinglydifficultchallengeswitheachnewgenerationofourproductsasaresultof
increasingtechnologicalcomplexity.Inparticular,thedevelopmentofanEUVvolumeproductionsystemisdependent
on,andsubjecttothesuccessfulimplementationof,technologyrelatedtothelightsourceandothertechnologies
specifictoEUV.Thereisariskthatwemaynotbeabletointroduceorbringtofull-scaleproductionnewproductsas
quicklyasweanticipateinourproductintroductionplans,whichcouldhaveamaterialadverseeffectonourbusiness,
financialconditionandresultsofoperations.
Forthemarkettoaccepttechnologyenhancements,ourcustomers,inmanycases,mustupgradetheirexisting
technologycapabilities.Suchupgradesfromestablishedtechnologymaynotbeavailabletoourcustomerstoenable
volumeproductionusingournewtechnologyenhancements.Thiscouldresultinourcustomersnotpurchasing,or
pushingbackorcancelingordersforourtechnologyenhancements,whichcouldnegativelyimpactourbusiness,
financialconditionandresultsofoperations.
As Lithography Technologies become More Complex, our R&D Programs become More Risky and More Expensive
Ourlithographysystemshavebecomeincreasinglycomplex,andaccordingly,thecoststodevelopthenewproducts
andtechnologieshaveincreased,andweexpectsuchcoststocontinuetoincrease.Thisincreaseincostsrequiresus
tocontinueobtainingsufficientfundingforourR&Dprograms.Forexample,weobtainedfundingforour450mmand
EUVR&DprogramsthroughtheCCIP.Wemayhowever,beunabletoobtainthistypeoffundingfromcustomersinthe
future,inwhichcasewemaybeunabletofundR&Dinvestmentsnecessarytomaintainourtechnologicalleadership.
TheincreasingcostofR&Dprogramsfornewtechnologiesalsoincreasestheriskthatanewproductortechnologymay
notbesuccessful,whichcouldresultinsignificantcostsnotbeingrecovered.
Furthermore,astheinnovationcyclebecomesmorecomplex,developingnewtechnologyrequiresincreasedR&D
investmentsbyoursuppliersinordertomeetthetechnologydemandsofusandourcustomers.Oursuppliersmaynot
have,ormaynotbewillingtoinvest,theresourcesnecessarytocontinuethedevelopmentofthenewtechnologiesto
theextentsuchinvestmentsarenecessary,whichmayresultinourcontributingfundstosuchR&Dprogramsorlimiting
theR&Dprogramsweundertake.
38
We Are Dependent on the Continued Operation of a Limited Number of Manufacturing Facilities

Allofourmanufacturingactivities,includingsubassembly,finalassemblyandsystemtesting,takeplaceinclean
roomfacilitiesinVeldhoven,theNetherlands,inWilton,ConnecticutandinSanDiego,California,bothintheUnited
States,inPyongtaek-City,South-KoreaandinLinkou,Taiwan.Thesefacilitiesmaybesubjecttodisruptionforavariety
ofreasons,includingworkstoppages,fire,energyshortages,floodingorothernaturaldisasters.Wecannotensure
thatalternativeproductioncapacitywouldbeavailableifamajordisruptionweretooccurorthat,ifsuchcapacity
wasavailable,itcouldbeobtainedonfavorableterms.Suchadisruptioncouldhaveamaterialadverseeffectonour
business,financialconditionandresultsofoperations.Inaddition,someofourkeysuppliers,includingZeiss,havea
limitednumberofmanufacturingfacilities,thedisruptionofwhichmaysignificantlyandadverselyaffectourproduction
capacity.
We May be Unable to Make Desirable Acquisitions or to Integrate Successfully Any Businesses We Acquire
Ourfuturesuccessmaydependinpartontheacquisitionofbusinessesortechnologiesintendedtocomplement,
enhanceorexpandourcurrentbusinessorproductsorthatmightotherwiseofferusgrowthopportunities.Ourability
tocompletesuchtransactionsmaybehinderedbyanumberoffactors,includingpotentialdifficultiesinobtaining
governmentapprovals.
Anyacquisitionthatwedomakewouldposerisksrelatedtotheintegrationofthenewbusinessortechnologywithour
business.Wecannotbecertainthatwewillbeabletoachievethebenefitsweexpectfromaparticularacquisitionor
investment.Acquisitionsmayalsostrainourmanagerialandoperationalresources,asthechallengeofmanagingnew
operationsmaydivertourmanagementfromday-to-dayoperationsofourexistingbusiness.Ourbusiness,financial
conditionandresultsofoperationsmaybemateriallyandadverselyaffectedifwefailtocoordinateourresources
effectivelytomanagebothourexistingoperationsandanybusinessesweacquire.
InMay2013,weacquiredalloftheoutstandingsharesofCymer,alightsourcesupplier.Weexpectthattheacquisition
ofCymerwillmakeEUVtechnologymoreefficient,preventadditionaldelaysintheintroductionofEUVtechnology,and
simplifythesupplychainofEUVmodules.However,achievingthebenefitsoftheacquisitionwilldependinpartonthe
integrationofouroperationsandemployeeswiththoseofCymerinatimelyandefficientmanner,andifwefailtodo
so,thismayresultinadelayinthedevelopmentofEUV.TherecanbenoassurancethatCymerwillbesuccessfully
integratedinourbusinessorthatanyoftheanticipatedbenefitswillberealized.Evenifweareabletosuccessfully
integrateCymer,thereisnoassurancethatthistransactionwillresultinsuccessfuldevelopmentofourEUVtechnology.
Inaddition,inconnectionwithacquisitions,anti-trustregulatorsmayimposeconditionsonus,includingrequirements
todivestassetsorotherconditionsthatcouldmakeitdifficultforustointegratethebusinessesthatweacquire.For
example,inconnectionwiththeCymerAcquisitionwehaveagreedtomaintainCymerLightSourcesasastand-alone
businesswhichwillmakeitmoredifficulttointegrateCymerLightSourcesintoourbusinessoperations.
Our Business and Future Success Depend on Our Ability to Attract and Retain a Sufficient Number of Adequately
Educated and Skilled Employees
Ourbusinessandfuturesuccesssignificantlydependuponouremployees,includingalargenumberofhighlyqualified
professionals,aswellasourabilitytoattractandretainemployees.Competitionforsuchpersonnelisintense,andwe
maynotbeabletocontinuetoattractandretainsuchpersonnel.TheR&Dprogramsassociatedwiththecommitments
madeundertheNREfundingarrangementssignedinrelationtotheCCIP,requireasignificantnumberofqualified
employees.Ifweareunabletoattractsufficientnumbersofqualifiedemployees,thiscouldaffectourabilitytoconduct
ourresearchprogramsonatimelybasis,whichcouldadverselyaffectourbusiness,financialconditionandresultsof
operations.
Inaddition,theincreasingcomplexityofourproductsresultsinalongerlearning-curvefornewandexistingemployees
andsuppliersleadingtoaninabilitytodecreasecycletimesandmayresultintheincurrenceofsignificantadditional
costs,whichcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.
FinancialRisks
A High Percentage of Net Sales is Derived From a Few Customers
Historically,wehavesoldasubstantialnumberoflithographysystemstoalimitednumberofcustomers.Weexpect
customerconcentrationtoincreasebecauseofcontinuingconsolidationinthesemiconductormanufacturingindustry.
Consequently,whiletheidentityofourlargestcustomersmayvaryfromyeartoyear,weexpectsalestoremain
concentratedamongrelativelyfewcustomersinanyparticularyear.In2013,recognizedsalestoourlargestcustomer
accountedforEUR2,058.6million,or39.2percentofnetsales,comparedwithEUR1,236.1million,or26.1percentof
netsales,in2012.Thelossofanysignificantcustomeroranysignificantreductioninordersbyasignificantcustomer
mayhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.
39
Additionally,asaresultofourlimitednumberofcustomers,creditriskonourreceivablesisconcentrated.Ourthree
largestcustomers(basedonnetsales)accountedforEUR861.4million,or73.3percentofaccountsreceivableand
financereceivablesatDecember31,2013,comparedwithEUR535.1million,or58.9percentatDecember31,2012.
Asaresult,businessfailureorinsolvencyofoneofourmaincustomersmayhaveamaterialadverseeffectonour
business,financialconditionandresultsofoperations.
Fluctuations in Foreign Exchange Rates Could Harm Our Results of Operations
Weareexposedtocurrencyrisks.WeareparticularlyexposedtofluctuationsintheexchangeratesbetweentheU.S.
dollar,Japaneseyenandtheeuro,asweincurmanufacturingcostsforoursystemspredominantlyineuroswhile
portionsofournetsalesandcostofsalesaredenominatedinU.S.dollarsandJapaneseyen.
Inaddition,aportionofourassetsandliabilitiesandoperatingresultsaredenominatedinU.S.dollars,andasmall
portionofourassets,liabilitiesandoperatingresultsaredenominatedincurrenciesotherthantheeuroandtheU.S.
dollar.OurFinancialStatementsareexpressedineuros.Accordingly,ourresultsofoperationsandassetsandliabilities
areexposedtofluctuationsinexchangeratesbetweentheeuroandsuchothercurrencies.Ingeneral,ourcustomers
generallyruntheirbusinessesinU.S.dollarsandthereforeaweakeningoftheU.S.dollaragainsttheeuromightimpact
theabilityordesireofourcustomerstopurchaseourproducts.
Furthermore,astrengtheningoftheeuroparticularlyagainsttheJapaneseyencouldfurtherintensifyprice-based
competitioninthoseregionsthataccountforthemajorityofoursales,resultinginlowerpricesandmarginsanda
materialadverseeffectonourbusiness,financialconditionandresultsofoperations.
ChangesincurrencyexchangeratesalsoaffectthecarryingvalueofassetsonourConsolidatedStatementofFinancial
Position,whichdependingonthebalancesheetclassificationoftherelevantasset,canresultinlossesonour
ConsolidatedStatementofFinancialPosition.Inparticular,theCymeracquisitionhassignificantlyincreasedourU.S.
dollardenominatedassets,andasaresult,wearemoreexposedtofluctuationsintheU.S.dollar.
RisksRelatedtoOurOrdinaryShares
We May Not Declare Cash Dividends At All or in Any Particular Amounts in Any Given Year
Weaimtopayanannualdividendthatwillbestableorgrowingovertime.Annually,theBoardofManagementwill,
uponpriorapprovalfromtheSupervisoryBoard,submitaproposaltotheAGMwithrespecttotheamountofdividend
tobedeclaredwithrespecttotheprioryear.Thedividendproposalinanygivenyearwillbesubjecttotheavailability
ofdistributableprofitsorretainedearningsandmaybeaffectedby,amongotherfactors,theBoardofManagements
viewsonourpotentialfutureliquidityrequirements,includingforinvestmentsinproductioncapacity,thefundingofour
R&Dprogramsandforacquisitionopportunitiesthatmayarisefromtimetotime;andbyfuturechangesinapplicable
incometaxandcorporatelaws.Accordingly,theBoardofManagementmaydecidetoproposenottopayadividendor
payalowerdividendwithrespecttoanyparticularyearinthefuture,whichcouldhaveanegativeeffectonourshare
price.
Restrictions on Shareholder Rights May Dilute Voting Power
OurArticlesofAssociationprovidethatwearesubjecttotheprovisionsofDutchlawapplicabletolargecorporations,
called"structuurregime".Theseprovisionshavetheeffectofconcentratingcontrolovercertaincorporatedecisionsand
transactionsinthehandsofourSupervisoryBoard.Asaresult,holdersofordinarysharesmayhavemoredifficultyin
protectingtheirinterestsinthefaceofactionsbymembersofourSupervisoryBoardthanifwewereincorporatedinthe
UnitedStatesoranotherjurisdiction.
Ourauthorizedsharecapitalalsoincludesaclassofcumulativepreferencesharesandwehavegranted"Stichting
PreferenteAandelenASML",aDutchfoundation,anoptiontoacquire,attheirnominalvalueofEUR0.09pershare,
suchcumulativepreferenceshares.Exerciseofthepreferenceshareoptionwouldeffectivelydilutethevotingpowerof
ouroutstandingordinarysharesbyone-half,whichmaydiscourageorsignificantlyimpedeathirdpartyfromacquiringa
majorityofourvotingshares.
40
Participating Customers in Our Customer Co-Investment Program Together Own a Significant Amount of Our
Ordinary Shares
IntheCCIP,theParticipatingCustomers,throughcertainwholly-ownedsubsidiaries,acquired15percent,5percentand
3percent,ofourthenoutstandingshares,respectively(aftergivingeffecttoourSyntheticShareBuybackconductedin
November2012).
TheinterestsoftheParticipatingCustomersmaynotalwayscoincidewiththeinterestsofotherholdersofourshares.
ThesharesacquiredbytheParticipatingCustomersareheldbyDutchfoundationswhichhaveissueddepositary
receiptsinrespectthereofandtheparticipatingcustomersmayonlyvotethosesharesinGeneralMeetingsin
exceptionalcircumstances,includingtheauthorizationofcertainsignificantshareissuancesandsharerepurchases,
theapprovalofasignificantchangeintheidentityornatureofASMLoritsbusiness,anyamendmenttoASML's
ArticlesofAssociationthatwouldmateriallyaffectthespecificvotingrightsoftheParticipatingCustomersorthat
wouldcauseasignificantchangeintheidentityornatureofASMLoritsbusiness,thedissolutionofASML,andany
mergerordemergerwhichwouldresultinamaterialchangeintheidentityornatureofASMLoritsbusiness.When
suchexceptionalcircumstancesoccur,theParticipatingCustomers,andinparticularIntel(duetothepercentageofour
sharesthatIntelowns),willbeabletoinfluencemattersrequiringapprovalbytheGeneralMeetingandmayvotetheir
ordinarysharesinawaywithwhichothershareholdersmaynotagree.
TheParticipatingCustomershavealsoagreedthattheywillnot,withoutourpriorwrittenconsent,transferanyofthe
ordinarysharestheyacquiredintheCCIP(ordepositaryreceiptsrepresentingthoseshares)untiltwoyearsandsix
monthsafterthedatetheyacquiredsuchshares(September12,2012forIntelandSamsung;October31,2012for
TSMC).Uponexpiryofsuchperiod,theordinarysharesheldbyParticipatingCustomersarefreelytransferable,subject
toorderlymarketarrangementsandcertainotherrestrictions.AnysalesofsignificantamountsofsharesbyParticipating
Customersintheprogramcouldhaveanegativeeffectonourshareprice.
Financial Risk Management

Weareexposedtocertainfinancialriskssuchasmarketrisk(includingforeigncurrencyriskandinterestraterisk),
creditrisk,liquidityriskandcapitalrisk.Theoverallriskmanagementprogramfocusesontheunpredictabilityof
financialmarketsandseekstominimizepotentiallyadverseeffectsonourfinancialperformance.Weusederivative
financialinstrumentstohedgecertainriskexposures.Noneofourtransactionsareenteredintofortradingor
speculativepurposes.Webelievethatmarketinformationisthemostreliableandtransparentmeasureforourderivative
financialinstrumentsthataremeasuredatfairvalue.SeeNote6toourConsolidatedFinancialStatementsformore
information.
Semiconductor Equipment Industry

Thechip-makingbusinessisfocusedon"shrink",orreducingthesizeofchipdesigns.Historicallythesemiconductor
industryhasexperiencedsignificantgrowthlargelyduetothecontinualreductionofcostperfunctionperformedby
ICs.ImprovementinthedesignandmanufactureofICswithhighercircuitdensitiesresultedinsmallerandcheaperICs
capableofperformingalargernumberoffunctionsathigherspeedswithlowerpowerconsumption.Webelievethat
theselong-termtrendswillcontinuefortheforeseeablefutureandwillbeaccompaniedbyacontinuingdemandfor
productionequipmentthatiscapableofaccurateproductionofadvancedICsinhighvolumesatthelowestpossible
cost.
Lithographyequipmentisusedtoprintcomplexcircuitpatternsontosiliconwafers,whicharetheprimaryrawmaterials
forICs.Theprintingprocessisoneofthemostcriticalandexpensivestepsinwaferfabrication.Lithographyequipment
isthereforeasignificantfocusoftheICindustrysdemandforcost-efficientenhancementstoproductiontechnology.
Thecoststodevelopnewlithographyequipmentarehigh.Accordingly,thelithographyequipmentindustryis
characterizedbythepresenceofonlyafewprimarysuppliers:ASML,Nikon,and(toalesserdegree)Canon.In2013,
ASMLwasoneoftheworldsleadingprovidersoflithographyequipment(measuredinrevenuesbaseduponGartner
Dataquestfourthquarter2013report).
41
TotallithographyequipmentshippedbytheindustryasawholeinthesixyearsendedDecember31,2013,issetoutin
thefollowingtable:
1
2
Year ended December 31
2013
Totalunitsshipped
Totalvalue(inmillionsUSD)
238
5,641
2012
2011
251
6,002
376
8,225
2010
304
6,416
2009
128
2,485
2008
344
5,388
Historicaldataandfull-year2013estimatesasreportedbyGartnerDataquestinitsfourthquarter2013report.
HistoricaldataarebasedonfiguresasincludedintheGartnerDataquestfourthquarter2013report.Whereappropriate,theestimatesasincludedin
theGartnerDataquestreportsinprioryearshavebeenupdatedbasedonthisfourthquarter2013report.
Fortheyear2013,thelatestindicationsofindependentmarketanalystsshowadecreaseintotallithographyequipment
shippedtothemarketbytheindustryof5.2percentinunitvolumeand6.0percentinvalue.In2013,thevalueofour
netsystemssalesincreasedby5.0percentcomparedto2012.
Business Strategy
Thelong-termgrowthofthesemiconductorindustryistheresultoftheprinciplethatthepower,costandtimerequired
foreverycomputationonadigitalelectronicdevicecanbereducedbyshrinkingthesizeoftransistorsonchips.
In2013,chipmakersroutinelyproducedelectronicchipfeatureswithgeometriesof28nm,comparedtotypical
geometriesof10,000nmintheearly1970s,resultinginanincreaseinthenumberoftransistorsonleadingchips
fromseveralthousandtoovertwobillion.ThistrendwasfirstobservedbyIntelco-founderGordonMoorein1965,
andisreferredtoas"MooresLaw".MooresLawhasresultedinourinformationsocietywithfastwiredandwireless
communicationsbuiltonaffordablechips.MooresLawalsohasanimpactontheenergyusageofchips.Smaller
geometriesallowformuchlowerelectricalcurrentstooperatethechip.Thishashelpedtocontaintheworldsenergy
consumptiondespitetheproliferationofaffordablecomputing.Usingadvancedsemiconductorsinindustrialand
consumerproductsoftenprovideseconomicbenefits,user-friendlinessandincreasedsafety.Thetechnologyrevolution
poweredbysemiconductorshasbroughtmanyadvantages:notonlycaninformationbemorewidelydisseminatedthan
everbefore,affordablechipintelligencehasalsoenabledindustryandservicesectorstocreateanddistributeproducts
andideasatlightningspeed.
Smarter,smallerandmoreenergy-efficientchipsaremadewithincreasinglysophisticatedlithographysystemsproduced
byASML.Lithographysystemsarecrucialtotheroadmapsofchipmakerstomakesmallertransistorsonchips.Our
businessstrategyisbasedonmaintainingandfurtherdevelopingourpositionasatechnologyleaderinsemiconductor
lithography.Whenexecuted,thisstrategyresultsinthedeliveryoflithographysystemswhichenablecustomersto
producethehighestperformanceandlowestcostchips.Thesuperiorvalueofownershipofferedtocustomersasa
resultofourstrategyalsomaximizesourownfinancialperformance,aligningtheinterestsofASMLandourcustomers.
Customer Focus
Ensuringcustomersareservedwiththerightproductsattherighttimeandsupportedbyexcellentservice,iskeytoour
commitmenttoalong-termrelationship.Withhigh-valuedproducts,customersexpecthigh-qualitysupportcustomized
totheirspecificrequirements.Thissupportincludesserviceengineers,equippedwiththelatesttechnicalinformation,
toensurethehighestlevelsofsystemperformance,aswellasapplicationsspecialistswhosupportoptimalsystem
processingandnewproductimplementation.
ASMLaimstodeliverlithographysystemswiththelowestcostofownership.
CustomersatisfactionisacriticalobjectiveofASML.Wehaveaccountteamsthatarespecificallydedicatedtocustomer
satisfactionthroughoutthelifecycleofourproducts.
Through2013,allofthetop10chipmakersworldwide,intermsofsemiconductorcapitalexpenditure,wereour
customers.Wealsohaveasignificantshareofcustomersoutsidethetop10.Westriveforcontinuedbusinessgrowth
withallourcustomers.Weexpectthatcustomerconcentrationmightincreasebecauseofcontinuingconsolidationin
thesemiconductormanufacturingindustry.
In2013,oursatisfactionratingsbycustomerssurpassedeverylithographycompetitor,accordingtoVLSIResearch,
ASMLranksthirdinthesemiconductorindustryequipmentsuppliersandfirstamonglithographycompetitors.Our
performancehasconsistentlybeengood:forelevenyearsinarowwehavebothrankedamongthetop5semiconductor
industrysuppliersandourrankingsurpassedthatofanyofourlithographycompetitors.
42
Technology Leadership
Ourcustomersneedlithographyscannersthatcontinuouslyimproveperformanceinthreeareas:imaging,throughput
andoverlay.Theimageoftheelectronicchipcircuitmustbeextremelysmall(currentlythesmallestfeatureshave
asizeoflessthan30nm),thesystemmustbeabletoimagebillionsofthesefeatureseverysecondanditmustbe
abletodothatwithextremeprecisionofjustafewnm(onenmisfoursiliconatoms).Torealizeandimprovethis
systemperformanceforourcustomers,ASMLneedstodelivertherighttechnologyattherighttimetomeetlongtermroadmapswhichoftenextendmanyyearsintothefuture.Therefore,ASMLiscommittedtosignificantlong-term
investmentsinR&D.In2013,ourR&Dinvestments(netofcredits)amountedtoEUR887.7million(2012:EUR599.4
million).AsignificantpartofourR&D-budgetwasusedforR&Djointlydevelopedwithoursuppliersandtechnology
partners.Furthermore,in2013,werecognizedOtherIncomeinrelationtothecontributionsmadebyourParticipating
CustomersofEUR64.4million.
Ourlithographyscannersarebasedonourdual-stagewaferimagingplatform,theTWINSCANsystem,whichwe
introducedin2000andwhichallowsexposureofonewaferwhilesimultaneouslymeasuringthewaferwhichwillbe
exposednext.Ourstrongleadershipinthiscapabilityhasallowedustoachievetheindustryshighestproductivity,
enablingreducedcost-per-exposureperwafer.Dual-stagelithographyalsosupportstherequiredoverlaytoposition
electronicfeaturesonthewafer,asitallowsformoretimetomeasurethewaferpriortoexposure.Wearetheonly
lithographymanufacturerthatenablesvolumeproductionbasedondual-stagesystems.
Inordertomeettheimaging,overlayandthroughputdemandsofourcustomers,wehavefocusedourR&Dinvestments
onthreecoreprograms:EUV,Immersionandholisticlithographysolutions.
Ourinnovativeimmersionlithographysystemsplaceafluidbetweenthewaferandasystemsprojectionlenstoenhance
focusandenablecircuitline-widthtoshrinktosmallerdimensionsthanwhatispossiblewith"dry"lithographysystems.
ASMLpioneeredthis"wet"technologyandhasexperiencedstrongdemandforimmersion-basedsystems,whichhave
beenadoptedbymostofourcustomers.
Wehavedevelopeddifferentimmersionsystemsfordifferentcustomerneeds.TheTWINSCANNXTplatformenables
nextgenerationsofsemiconductorsthroughtheso-calledDPTwhichrequirestwoexposuresperlayeronachip,
enablingpreciseimagingpatternsandlinesbyusingourTWINSCANNXTplanarwaferstageandbreakthroughgrid
metrology.In2013,weshippedourfirstfiveNXT:1970Cisystems,whichofferoverlaybelow2nm,focuscontrolofless
than20nmandthroughputofmorethan250wafersperhour.Approximately250NXT:1950iandNXT:1960Bisystems
arecurrentlyinusebyourcustomers,whicharefield-upgradeabletothesameperformancelevelasourNXT:1970Ci
system.
In2010,weachievedamajormilestonewithEUVlithographywhenweshippedourfirstNXE:3100.TheNXE:3100
combinedawavelengthof13.5nmandanopticalsystemwithaNAof0.25toprovideimagingataresolutionof27
nm.Through2013,ourNXE:3100pre-productionsystemsexposedacumulativetotalofmorethan44,000wafersat
customerssites,enablingsuccessfulrecipedevelopmentsforthesub14nmLogicand22nmDRAMnodes.
ThesuccessoroftheNXE:3100,theNXE:3300Bcombinesawavelengthof13.5nmandanopticalsystemwitha
NAof0.33toprovideimagingataresolutionof22nm.TheenhancementsoftheNXE:3300Benabletheimproved
performance,inthesamemannerthatupgradestotheNXTplatformimproveitsproductivity.In2013,thefirstofour
third-generationEUVscannershasbeenrecognizedinsales.Asperyearend2013,thesecondandthirdNXE:3300B
systemsarebeinginstalledatcustomersites.
OnMay30,2013,weconcludedtheacquisitionofCymerforatotalconsiderationofEUR3.1billion(USD4.1billion).
SeeNote4totheFinancialStatements.WeexpectthattheacquisitionofCymerwillhelpustoachieveourstrategic
objectiveofdeliveringaneconomicallyviableEUVscannertosemiconductormanufacturersassoonasreasonably
possible.WebelievethatcombiningCymersexpertiseinEUVlightsourceswithourexpertiseinlithographysystems
designandintegrationwillreducetherisksrelatedtothesuccessfuldevelopmentof,andacceleratetheintroductionof,
EUVtechnology.ThisintegrationworkonourNXE:3300Bscannersandlightsourcesisprogressingsteadily.Weremain
ontargettodeliversystemswithathroughputof70wafersperhourin2014,upgradeableto125wafersperhourin
2015.
43
Furthermore,asaconsequenceoftheacquisitionofCymer,wearenowabletoofferourcustomersOnPulse
contracts.Thesecontractsofferacomprehensiveapproachtoenhancinglightsourceproductivity,offeringour
customerspredictablelightsourcerunningcoststhatscaledirectlywithpulseutilization.WeprovideourOnPulse
contractcustomerson-sitesupportfromcertifiedserviceengineersandcontinuousreal-timelightsourcemonitoring.
ReplacementpartsandsupportarecoveredundertheOnPulsecontract,whichfacilitatescostsavingsforour
customersaswellassimplifiedorderandassetmanagement.WebelievethatourOnPulsecontractsofferour
customersmanycompellingbenefits,andthisproducthasbeenwell-receivedbyourcustomers.
Also,wecomplementourscannerproductswitharapidlyexpandingholisticlithographyportfolioofsoftwareand
metrologyproductstohelpourcustomersoptimizesemiconductorscannerperformance,provideafasterstarttochip
productionandachievebetterimagingathigherresolutions.Semiconductormanufacturersfaceincreasinglysmaller
marginsoferrorastheyshrinkchipfeatures.Holisticlithographyprovidesawaytoshrinkwithinthesemargins,offering
significantrevenue-generatingandcost-savingopportunitiestoourcustomers.In2013,weboostedsalesofYieldStar
metrologysystemstoourleadingedgecustomers.Thesemachinesgeneratethedatausedbyourholisticlithography
productstocontroloverlay,CDandfocusforthemostadvancedprocessnodes.
Operational Excellence
Westrivetosustainourbusinesssuccessbasedonourtechnologicalleadershipbycontinuingtoexecuteour
fundamentaloperatingstrategy,includingreducinglead-timeswhileimprovingourcostcompetitiveness.Lead-timeis
thetimefromacustomersordertoatooldelivery.
Ourbusinessstrategyincludesoutsourcingthemanufacturingofthemajorityofcomponentsandsubassembliesthat
makeupourproducts.Weworkinpartnershipwithsuppliers,collaboratingonquality,logistics,technologyandtotal
cost.Byoperatingourstrategyofvaluesourcing,westrivetoattainflexibilityandcostefficienciesfromoursuppliers
throughmutualcommitmentandsharedriskandreward.Valuesourcingalsoallowstheflexibilitytoadapttothe
cyclicalityoftheworldmarketforsemiconductorlithographysystems.
WehaveaflexiblelabormodelwithamixoffixedandflexiblecontractedlaborinourmanufacturingandR&Dfacilities
inVeldhoven,theNetherlands,andpayrollemployeescompensatedunderapartlyvariablesalarystructurethrough
ASMLsprofitsharingplan.FurthermoreinotherfacilitiesoutsidetheNetherlands,theapplicablelocallaborlawsand
regulationsprovidesufficientflexibility.Bothmodelsreinforceourabilitytoadaptmorequicklytosemiconductormarket
cycles,includingsupportforpotential24-hour,sevendays-a-weekproductionactivities.Bymaximizingtheflexibilityof
ourtechnicallyskilledworkforce,wecanshortenlead-times:akeydriverofaddedvalueforourcustomers.
Inviewoftheeconomicvolatilityofthesemiconductorindustry,wecontinuetostrivetoachievemoreefficienciesinour
operationsbyaddressingourcoststructureandstrengtheningourcapabilitytogeneratecash.
Our Business Model
Ourbusinessmodelisderivedfromour"ValueofOwnership"conceptwhichisbasedonthefollowingprinciples:
Offeringongoingimprovementsinthroughput,imagingandoverlaybyintroducingadvancedtechnologybased
modularplatforms,advancedapplicationsandholisticlithographysolutionsoutsidethetraditionallithography
business,eachresultinginlowercostsorhighervalueperproductforourcustomers;
Providingcustomerservicesthatensurerapid,efficientinstallation,superiorsupportandtrainingtooptimize
manufacturingprocessesofourcustomers;
MaintainingappropriatelevelsofR&Dtoofferthemostadvancedtechnologysuitableforhigh-throughputandlowcostvolumeproductionattheearliestpossibledateenhancing/followingMoore'slaw;
Enhancingthecapabilitiesoftheinstalledbaseofourcustomersthroughongoingfieldupgradesofthroughput,
imagingandoverlay,basedonfurthertechnologydevelopments;
Reducingthecycletimebetweenacustomersorderofasystemandtheuseofthatsysteminvolumeproduction;
Expandingoperationalflexibilityinresearchandmanufacturingbyreinforcingstrategicallianceswithworldclass
partners,includingoutsourcingcompanies;
Improvingthereliabilityanduptimeofourinstalledsystembase;and
Providingrefurbishingservicesthateffectivelyincreaseresidualvaluebyextendingthelifeofequipment.
44
Manufacturing, Logistics and Suppliers

Ourbusinessmodelisbasedonoutsourcingproductionofasignificantpartofthecomponentsandmodulesthat
compriseourlithographysystemsandsources,workinginpartnershipwithsuppliersfromallovertheworld.Our
manufacturingactivitiescomprisethesubassemblyandtestingofcertainmodulesandthefinalassemblyandfine
tuning/testingofacompletesystemfromcomponentsandmodulesthataremanufacturedtoourspecificationsbythird
partiesandbyus.Allofourmanufacturingactivities(subassembly,finalassemblyandsystemfinetuning/testing)are
performedincleanroomfacilitiesinVeldhoven,theNetherlands,inWilton,ConnecticutandinSanDiego,California,
boththeUnitedStates,inPyongtaek,SouthKoreaandinLinkou,Taiwan.Weprocurestepper,sourceandscanner
systemcomponentsandsubassembliesfromasinglesupplieroralimitedgroupofsuppliersinordertoensureoverall
qualityandtimelinessofdelivery.Wejointlyoperateaformalstrategywithsuppliersknownas"valuesourcing",which
isbasedoncompetitiveperformanceinquality,logistics,technologyandtotalcost.Theessenceofvaluesourcingisto
maintainasupplybasethatisworldclass,globallycompetitiveandgloballypresent.
Ourvaluesourcingstrategyisbasedonthefollowingstrategicprinciples:
Maintaininglong-termrelationshipswithoursuppliers;
Sharingrisksandrewardswithoursuppliers;
Dualsourcingofknowledge,globally,togetherwithoursuppliers;and
Singlesourcingofproducts,wherepossibleorrequired.
Valuesourcingisintendedtoaligntheperformanceofoursupplierswithourrequirementsonquality,logistics,
technologyandtotalcosts.
Zeissisoursinglesupplieroflenses,collectorsandothercriticalopticalcomponents.In2013,26.2percentofour
aggregatecostofsaleswaspurchasedfromZeiss(2012:26.9percent).
ZeissishighlydependentonitsmanufacturingandtestingfacilitiesinOberkochenandWetzlar,Germany,andits
suppliers.Moreover,Zeisshasafinitecapacityforproductionoflensesandopticalcomponentsforoursystemsand
collectorsforourEUVsources.Theexpansionofthisproductioncapacitymayrequiresignificantlead-time.Fromtime
totime,thenumberofsystemsweareabletoproducemaybelimitedbythecapacityofZeisstoprovideuswithlenses,
collectorsandothercriticalopticalcomponents.In2013ourproductionwasnotlimitedbythedeliveriesfromZeiss.
OurrelationshipwithZeississtructuredasastrategicalliancepursuanttoseveralagreementsexecutedin1997and
subsequentyears.Theseagreementsdefineaframeworkinallareasofourbusinessrelationship.Thepartnership
betweenASMLandZeissisfocusedoncontinuousimprovementofoperationalexcellence.
Pursuanttotheseagreements,ASMLandZeisshaveagreedtocontinuetheirstrategicallianceuntileitherparty
providesatleastthreeyearsnoticeofitsintenttoterminate.
InadditiontoZeiss,wealsorelyonotheroutsidevendorsforthecomponentsandsubassembliesusedinoursystems
andlightsources,eachofwhichisobtainedfromalimitednumberofsuppliers.Seealso"RiskFactors-TheNumberof
SystemsWeCanProduceisLimitedbyOurDependenceonaLimitedNumberofSuppliersofKeyComponents".
WehaveaflexiblelabormodelwithamixoffixedandflexiblecontractedlaborinourmanufacturingandR&Dfacilities
inVeldhoven,theNetherlands,andpayrollemployeescompensatedunderapartlyvariablesalarystructurethrough
ASMLsprofitsharingplan.FurthermoreinotherfacilitiesoutsidetheNetherlands,theapplicablelocallaborlawsand
regulationsprovidesufficientflexibility.Bothmodelsreinforceourabilitytoadaptmorequicklytosemiconductormarket
cycles,includingsupportforpotential24-hour,sevendays-a-weekproductionactivities.Bymaximizingtheflexibilityof
ourtechnicallyskilledworkforce,wecanshortenlead-times:akeydriverofaddedvalueforourcustomers.
Organizational Structure
ASMLHoldingN.V.isaholdingcompanythatoperatesthroughitssubsidiaries.Ourmajoroperatingsubsidiaries,each
ofwhichisawholly-owned(directorindirect)subsidiary,areASMLNetherlandsB.V.,ASMLSystemsB.V.,ASMLHong
KongLimitedandASMLUSInc.
SeeNote28toourConsolidatedFinancialStatementsforalistofourmainsubsidiaries.
45
ASML Operations Update

ThefollowingtablepresentstheKPIusedbyourBoardofManagementandseniormanagementtomeasure
performanceinourmonthlyoperationalreviewmeetings.ThefiguresinthetablebelowarebasedonUSGAAP.

(in millions)
Sales
Netsales
Increase(decrease)innetsales(%)
Netsystemsales
Netserviceandfieldoptionsales
Salesofsystems(inunits)
ASPoftotalsystemsales
ASPofnewsystemsales
ASPofusedsystemsales
2
ValueofsystemsbacklogexcludingEUV
2
SystemsbacklogexcludingEUV(inunits)
2
ASPofsystemsbacklogexcludingEUV
2
ASPofsystemsbacklogexcludingEUV(New)
2
ASPofsystemsbacklogexcludingEUV(Used)
3
Immersionsystemsrecognized(inunits)
4
NXEsystemsrecognized(inunits)
Profitability
Grossprofit
Operatingincome
Netincome
Liquidity
Cashandcashequivalents
Short-terminvestments
Operatingcashflow
1
2
3
4
2013
EUR
2012
EUR
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
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
41.5
20.0
19.4
2,005.2
1,156.8
1,146.3
2,330.7
679.9
1,054.2
42.4
24.4
24.2
1,767.6
930.0
703.5
Asapercentageofnetsales.
Oursystemsbacklogandnetbookingsincludeonlyordersforwhichwrittenauthorizationshavebeenacceptedandsystemshipmentandrevenue
recognitiondateswithinthefollowing12monthshavebeenassigned.
Includedinthetotalnumberofimmersionsystemsrecognizedin2013is4unitsofourmostadvancedimmersiontechnologyNXT:1970Cisystems
(2012:nil)
In2013,thefirstofourthird-generationEUVscannershasbeenrecognizedinsales.Asperyearend2013,thesecondandthirdNXE:3300Bsystems
arebeinginstalledatcustomersites.
TheConsolidatedFinancialStatementsincludedinthisStatutoryAnnualReportarebasedonIFRS-EU,therefore,the
resultsofoperationsanalysissetoutintheremainderofthisparagraphisbasedonIFRS-EU.Foradetailedexplanation
ofthedifferencesbetweenU.S.GAAPandIFRS-EU,werefertopages54and55.
Results of Operations
SetforthbelowareourConsolidatedStatementofProfitorLossdataforthetwoyearsendedDecember31,2013and
2012:

(in millions)
2013
EUR
2012
EUR
Netsales
Costofsales
Grossprofit
Otherincome
Researchanddevelopmentcosts
Selling,generalandadministrativecosts
Operatingincome
Interestandother,net
Incomebeforeincometaxes
Benefitfrom(provisionfor)incometaxes
Netincome
5,245.3
(3,159.3)
2,086.0
64.4
(564.0)
(311.3)
1,275.1
(18.8)
1,256.3
(62.5)
1,193.8
4,731.5
(2,835.7)
1,895.8
0.0
(298.1)
(256.5)
1,341.2
(3.3)
1,337.9
(35.6)
1,302.3
46
Thefollowingtableshowsasummaryofnetsales,unitssold,grossprofitandASPdatafortheyearsendedDecember
31,2013and2012:

(in millions EUR, unless otherwise indicated)
2013
2012
Netsales
Netsystemsales
Totalsalesofsystems(inunits)
Totalsalesofnewsystems(inunits)
Totalsalesofusedsystems(inunits)
Grossprofitasapercentageofnetsales
ASPofsystemsales
ASPofnewsystemsales
ASPofusedsystemsales
5,245.3
3,993.1
1,252.2
157
142
15
39.8
25.4
27.4
6.9
4,731.5
3,801.6
929.9
170
146
24
40.1
22.4
24.8
7.6
Sales
NetsalesincreasedbyEUR513.8million,or10.9percent,toEUR5,245.3millionin2013fromEUR4,731.5millionin
2012,mainlydrivenbytheincreaseinnetserviceandfieldoptionsalesofEUR322.3million,or34.7percenttoEUR
1,252.2millionin2013fromEUR929.9millionin2012.Theincreaseinnetserviceandfieldoptionsalesismainly
causedbytheexpansionofHolisticLithographythroughincreasedsalesofintegratedmetrologyandfeedbackloop
technologyandbyOnPulserevenuesasaresultoftheacquisitionofCymer.
TheincreaseinnetsystemsalesofEUR191.5million,or5.0percent,toEUR3,993.1millionin2013fromEUR3,801.6
millionin2012ismainlycausedbyanincreasedASPwhichmorethanoffsetstheloweramountofsystemssold.
TheincreaseoftheASPofoursystemssoldcanmainlybeexplainedbytheASPofournewsystemssoldwhich
increasedtoEUR27.4millionin2013fromEUR24.8millionin2012,whichwastheresultofashiftinthemixof
systemssoldtowardsmorehigh-endsystemtypes,NXT:1960BiandNXT:1970CiandincludingoneNXE:3300B.
Through2013,allofthetop10chipmakersworldwide,intermsofsemiconductorcapitalexpenditure,wereour
customers.In2013,recognizedsalestoourlargestcustomeraccountedforEUR2,058.6million,or39.2percentofour
netsales.In2012,recognizedsalestoourlargestcustomeraccountedforEUR1,236.1million,or26.1percentofour
netsales.
GrossprofitincreasedbyEUR190.1milliontoEUR2,086.0millionor39.8percentofnetsalesin2013fromEUR
1,895.8millionor40.1percentofnetsalesin2012.Highergrossprofitwasmainlydrivenbytheincreasednetsystem
sales.Grossprofitasapercentageofnetsalesin2013decreasedcomparedto2012,mainlyduetoa1.5percent
impactfromnon-cashpurchasepriceaccountingadjustmentsrelatedtotheCymeracquisition.
Other Income
OtherincomeconsistsofcontributionsforR&DprogramsundertheNREfundingarrangementsfromParticipating
CustomersoftheCCIPandamountedtoEUR64.4millionfor2013(2012:nil).
Research and Development Costs
R&DinvestmentsofEUR887.7million,comprisingofR&Dcosts(includingdevelopmentcostsnoteligiblefor
capitalization),netofcredits,ofEUR564.0million(2012:EUR301.3million)andcapitalizationofdevelopment
expendituresofEUR323.7million(2012:EUR298.1million)weresignificantlyhigherthanin2012(EUR599.4million).
OverallR&DinvestmentsincreasedasaresultoftheacquisitionofCymerandfurtherinvestmentsinourotherstrategic
programs(EUV,immersionandholisticlithography).
Selling, General and Administrative costs
SG&AcostsincreasedbyEUR54.8million,or21.4percent,toEUR311.3millionin2013,fromEUR256.5millionin
2012.TheincreasewasmainlydrivenbytheacquisitionandsubsequentintegrationofCymerandincurredrestructuring
expenses.
47
Profitability
Ourtargetistoachieveannualincomefromoperationsaspercentageofnetsalesofgreaterthan20percent.However
inexceptionalcircumstances,asevidencebythefinancialandeconomiccrisisin2009,wecouldseeperiodswith
incomefromoperationsthataresubstantiallybelowourminimumtargetlevel.
Interest and Other, Net
Interestandother,netincreasedbyEUR15.5milliontoEUR18.8millionexpensein2013fromEUR3.3millionexpense
in2012.ThisincreaseismainlyexplainedbythelossonthepartialextinguishmentofourEUR600million5.75percent
seniornotesdue2017andalowerinterestgeneratedonourcashandcashequivalentsandshort-terminvestments
compared.
Income Taxes
Theeffectivetaxrateincreasedto5.0percentofincomebeforeincometaxesin2013comparedto2.7percentin2012.
In2013,theeffectivetaxratewasimpactedbythesettlementofthefavorablepre-existingrelationshipsbetweenCymer
andASML.Thissettlementgainisnotrecognizedfortaxpurposesandwas,apartfromtheR&Dtaxincentives,the
majordriverforthechangeintheeffectivetaxratein2013.In2012,theeffectivetaxratewasamongstothersimpacted
byaone-timetaxbenefitresultingfromsuccessfulconclusionoftaxaudits.Themovementintheliabilityforuncertain
taxbenefitsin2013isconsideredtobelimitedcomparedto2012.
Net Income
Netincomein2013amountedtoEUR1,193.8million,or22.8percentofnetsales,representingEUR2.78basicnet
incomeperordinaryshare,comparedwithnetincomein2012ofEUR1,302.3million,or27.5percentofnetsales,
representingEUR3.07basicnetincomeperordinaryshare.
Liquidity
OurcashandcashequivalentsincreasedtoEUR2,330.7millionasofDecember31,2013fromEUR1,767.6millionas
ofDecember31,2012andourshort-terminvestmentsdecreasedtoEUR679.9millionasofDecember31,2013from
EUR930.0millionasofDecember31,2012.
WegeneratednetcashprovidedbyoperatingactivitiesofEUR1,381.0millionandEUR999.3millionin2013and2012
respectively.Highernetcashprovidedbyoperatingactivitiesin2013comparedto2012relatestoincreasedsaleslevels
andadecreaseofourworkingcapital,mainlyduetoanincreaseinaccountspayable.
WeusedEUR692.0millionininvestingactivitiesin2013andEUR1,413.4millionin2012.In2013,ourinvesting
activitiesmainlyrelatedtothecashconsiderationpaidfortheacquisitionofCymerofEUR443.7millionandthe
purchaseofproperty,plantandequipmentofEUR210.8million,mainlyrelatedtofurtherexpansionofourEUV
productionfacilities.Thiswastoalargeextentoffsetbythedecreaseofshort-terminvestments,mainlyinDutch
TreasuryCertificatesanddepositswiththeDutchgovernment,ofEUR290.2million.In2012ourinvestingactivities
primarilyrelatedtoourshort-terminvestmentsinDutchTreasuryCertificatesanddepositswiththeDutchgovernmentof
EUR930.0millionandpurchasesofproperty,plantandequipmentofEUR171.9millionandthepurchaseofintangible
assetsofEUR301.2million.
NetcashusedinfinancingactivitieswasEUR116.3millionin2013comparedwithnetcashusedinfinancingactivities
ofEUR547.8millionin2012.InSeptember2013,wecompletedanofferingofEUR750million3.375percentsenior
notesdue2023withinterestpayableannuallyonSeptember19and,simultaneously,werepurchasedanominalamount
ofEUR361.8millionofourEUR600million5.75percentseniornotesdue2017inatenderoffer.
In2013,netcashusedinfinancingactivitiesincludedthenetcashproceedsofEUR740.4millionfromournotes
offeringandnetcashproceedsofEUR31.8millionfromtheissuanceofsharesinconnectionwiththeexerciseand
purchaseofemployeestockoptions,mainlyoffsetbynetcashoutflowsofEUR368.3millionforournotestenderoffer
andunwindingofrelatedinterestrateswaps,EUR300.0millionforourregularsharebuybackprogramandEUR216.1
millionforourannualdividendpayment.In2012,netcashusedinfinancingactivitiesincludesthenetcashoutflowof
EUR3,728.3millionfortheSyntheticShareBuyback,EUR535.4millionforourregularsharebuybackprogramsand
EUR188.9millionforourannualdividendpayment,toalargeextentoffsetbytheproceedsofEUR3,853.9millionfrom
issuanceofsharesundertheCCIPandEUR53.8millionnetproceedsfromissuanceofsharesinconnectionwiththe
exerciseandpurchaseofemployeestockoptions.
Ourprincipalsourcesofliquidityconsistofcashflowsfromoperations,cashandcashequivalentsasofDecember31,
2013ofEUR2,330.7million,short-terminvestmentsasofDecember31,2013ofEUR679.9millionandavailablecredit
facilitiesasofDecember31,2013ofEUR700.0million.Inaddition,wemayfromtimetotimeraiseadditionalcapitalin
debtandequitymarkets.Ourgoalistoremainaninvestmentgraderatedcompanyandmaintainacapitalstructurethat
supportsthis.
48
Weinvestourcashandcashequivalentsandshort-terminvestmentsinshort-termdepositswithfinancialinstitutions
thathavegoodcreditratingsandtheDutchgovernment,inDutchTreasuryCertificatesandinAAAm-ratedmoney
marketfundsthatinvestinhigh-ratedshort-termdebtsecuritiesoffinancialinstitutionsandgovernments.Our
investmentsarepredominantlydenominatedineurosandpartlyinU.S.dollars.
OuravailablecreditfacilityconsistsofanEUR700.0millioncommittedrevolvingcreditfacilityfromagroupofbanks
thatwillmaturein2018.Thecreditfacilitycontainsarestrictivecovenantthatrequiresustomaintainaminimum
committedcapitaltonettotalassetsratioof40.0percentcalculatedinaccordancewithcontractuallyagreed
definitions.Attheendof2013,wewereincompliancewiththecovenant.Outstandingamountsunderthiscredit
facilitywillbearinterestatEURIBORorLIBORplusamarginthatdependsonourliquidityposition.Noamountswere
outstandingunderthecreditfacilityasoftheendof2013.
Wehaverepaymentobligationsin2017,amountingtoEUR238.2millionandin2023,amountingtoEUR750.0million,
bothrelatingtoourEurobonds.
ASMLseekstoensurethatcashgeneratedfromoperations,togetherwiththeliquidityprovidedbyexistingcash
andcashequivalentsandshort-terminvestmentsanditsborrowingcapability,willbesufficienttosatisfyitsliquidity
requirementsthroughouteveryphaseoftheindustrycycles.
Ourliquidityneedsareaffectedbymanyfactors,someofwhicharebasedonthenormalon-goingoperationsofthe
business,andothersthatrelatetotheuncertaintiesoftheglobaleconomyandthesemiconductorindustry.Although
ourcashrequirementsfluctuatebasedonthetimingandextentofthesefactors,webelievethatcashgeneratedfrom
operations,togetherwiththeliquidityprovidedbyexistingcashandcashequivalentsandshort-terminvestmentsand
ourborrowingcapabilityaresufficienttosatisfyourcurrentrequirements,includingourexpectedcapitalexpendituresin
2014.Weintendtoreturncashtoourshareholdersonaregularbasisintheformofdividendpaymentsand,subjectto
ouractualandanticipatedliquidityrequirementsandotherrelevantfactors,sharebuybacksorcapitalrepayment.
SeeNotes6,18,19,20and21toourConsolidatedFinancialStatementsforfurtherreference.
Trend Information
In2013,ourbusinesswassupportedbycontinuingmomentumintheLogicsegmentwithcustomersstartingtoadd
capacityatthe20nmnode,drivenbythemobileapplicationsmarket.Thememorysegmentcontinuedtopickupinlight
oftightmobileDRAMcapacity.NANDmemorybitdemandisonasteadygrowthpathwithastablemarketoutlook,
underpinningtechnologyandcapacityinvestmentsin2014.
Thefollowingtablesetsforthoursystemsbacklog,excludingEUV,asofDecember31,2013and2012.

(in millions EUR, unless otherwise indicated)
2013
2012
NewsystemsbacklogexcludingEUV(inunits)
UsedsystemsbacklogexcludingEUV(inunits)
TotalsystemsbacklogexcludingEUV(inunits)
ValueofnewsystemsbacklogexcludingEUV
ValueofusedsystemsbacklogexcludingEUV
TotalvalueofsystemsbacklogexcludingEUV
ASPofnewsystemsbacklogexcludingEUV
ASPofusedsystemsbacklogexcludingEUV
ASPoftotalsystemsbacklogexcludingEUV
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
Outlook
Oursystemsbacklogincludesonlyordersforwhichwrittenauthorizationshavebeenacceptedandsystemshipment
andrevenuerecognitiondateswithin12monthshavebeenassigned.Historically,ordershavebeensubjectto
cancellationordelaybythecustomer.Duetopossiblecustomerchangesindeliveryschedulesandtocancellation
oforders,oursystemsbacklogatanyparticulardateisnotnecessarilyindicativeofactualsalesforanysucceeding
period.
Forthefirstquarterof2014,weexpectnetsalesofaroundEUR1.4billionandotherincomeofaboutEUR20million,
whichconsistsofcontributionsfromparticipantsoftheCCIP.
49
Subjecttomarketconditions,weexpectthatourcapitalexpenditures(purchasesofproperty,plantandequipment)in
2014willbeaboutEUR480million(2013:EUR210.8million).Theseexpenditureswillmainlyconsistofinvestments
usedforthefurtherexpansionofourEUVproductionfacilitiesenablingustomeetfuturedemandforEUVsystemsand
ofinvestmentsinourotherstrategicprograms(e.g.Immersion).Weexpecttofinancethesecapitalexpendituresthrough
cashgeneratedbyoperationsandcashandcashequivalents,aswellasNREfundingpayments.
Weexpectourheadcount(payrollandtemporaryemployees)toslightlyincreaseduring2014,mainlyfollowingfrom
increasedoperationalactivitiesandtheaccelerationofourR&Dactivities.
Cymer Merger
OnOctober16,2012,ASMLenteredintoamergeragreementwithCymer,acompanyengagedinthedevelopment,
manufacturingandmarketingoflightsourcesforsaletocustomerswhomanufacturephotolithographytoolsinthe
semiconductorequipmentindustry(theMergerAgreement).TheMergerAgreementprovidedfortheacquisitionof
alloutstandingsharesofCymerbyawholly-ownedsubsidiary,ASMLUSinc.,anindirectwholly-ownedsubsidiary
ofASML.TheMergerAgreementalsocontainedcertaincustomaryrepresentationsandwarranties,covenantsand
indemnities.ThetransactionwascompletedonMay30,2013,inaccordancewiththetermsoftheMergerAgreement,
foratotalconsiderationofEUR3.1billion(USD4.1billion).SeeNote4.
Customer Co-Investment Program

Overview
OnJuly9,2012,weannouncedourCCIPtoaccelerateourdevelopmentofEUVtechnologybeyondthecurrent
generationandourdevelopmentoffuture450mmsiliconwafertechnology.TheParticipatingCustomerscollectively
agreedtofundEUR1.38billionofourresearchanddevelopmentprojectsfrom2013through2017.Thisprogram
createdrisksharingwithsomeofourlargestcustomerswhiletheresultsofASMLsdevelopmentprogramswillbe
availabletoeverysemiconductormanufacturerwithnorestrictions.TheR&DfundingprogramintheCCIPconsistsof
twofundingprojects:a450mmtechnologydevelopmentprojectandanext-generationEUVdevelopmentproject.ASML
enteredintoNREFundingAgreementswiththeParticipatingCustomers.
Inadditiontothefundingcommitmentsdescribedabove,theParticipatingCustomershaveinvestedinordinaryshares
equal,inaggregate,to23percentofASML'sissuedsharecapital(calculatedgivingeffecttoourSyntheticShare
BuybackinNovember2012).Theproceedsoftheshareissuance,EUR3.85billion,werereturnedtotheholdersof
ordinaryshares(excludingtheParticipatingCustomers)throughaSyntheticShareBuybackexecutedinNovember2012.
ForfurtherinformationregardingtheSyntheticShareBuyback,seeNote26toourFinancialStatements.
Description of Investment Agreements, Shareholder Agreements and NRE Funding Agreements
InconnectionwiththeCCIP,ASMLenteredintoaninvestmentagreement,ashareholderagreementandNREFunding
AgreementswitheachoftheParticipatingCustomers.Intelisthelargestparticipantintheprogram,withanaggregate
fundingcommitmentofEUR829millionandaninvestmentin15percentofourordinaryshares(calculatedgiving
effecttoourSyntheticShareBuybackinNovember2012).Adescriptionoftheinvestmentagreement,shareholders
agreementandNREFundingAgreementsbetweenASMLandIntelissetoutbelow.TheagreementsbetweenASML
andtheotherprogramparticipants-TSMC(whichacquired5percentofoursharesandmadeanEUR276million
fundingcommitment)andSamsung(whichacquired3percentofoursharesandmadeanEUR276millionfunding
commitment)areonsubstantiallythesametermsasthoseagreedwithIntel.ShareswereacquiredbyDutchfoundations
(Stichtingen)establishedforeachparticipant.
Investment Agreement
PursuanttotheIntelInvestmentAgreementbetweenASMLandIntel,datedJuly9,2012,ASMLagreedtoissuetoa
foundationestablishedforthelntelStichtingordinarysharesequalto15percentofASMLsissuedordinaryshares;
theIntelStichtingissuedtoInteldepositaryreceiptsrepresentingtheordinaryshares.Thesubscriptionpriceforthe
ordinarysharesissuedtoIntelwasEUR39.91perordinaryshare,whichistheaverageofthevolumeweightedaverage
priceofourshareslistedatNYSEEuronextAmsterdamforthetwentytradingdaysuptoandincludingJuly6,2012.
UndertheIntelInvestmentAgreement,ASMLhasagreedtoindemnifyIntel,anditsaffiliatesforcertainlossesand
expensesrelatedtobreachesofrepresentations,warranties,covenantsandagreementsintheInvestmentAgreements
andwithrespecttocertainlegalproceedingsrelatedthereto,subjecttocertainlimitations.
50
Shareholder Agreement
InconnectionwiththeissuanceofsharespursuanttotheIntelInvestmentAgreement,onSeptember12,2012ASML,
IntelandtheIntelStichtingenteredintoaShareholderAgreementwhichgovernscertainmattersrelatingtotheholding
ofandfurtherinvestmentbyIntelinordinarysharesofASML,directlyandindirectlythroughtheIntelStichting,including
themattersdescribedbelow.
Voting Restrictions
PursuanttotheIntelShareholderAgreement,Intel(andtheIntelStichting)willnotbeentitledtovotetheordinaryshares
thatwereacquiredbytheIntelStichtingaspartoftheCCIPoranyotherordinarysharesotherwisetransferredtothe
IntelStichting(underthecircumstancesdescribedunder"Standstill;AdditionalPurchases"below)priortoaShareholder
AgreementTerminationEvent(asdefinedbelow),exceptwhenaSuspensionEvent(asdescribedbelow)occursand
iscontinuingorwherethefollowingmattersareproposedatanyGeneralMeeting(the"VotingRestrictions"):(i)an
issuanceofASMLsharesorgrantofrightstosubscribeforASMLsharesrepresenting25percentormoreoftheissued
andoutstandingsharecapitalofASMLortherestrictionorexclusionofpre-emptionrightsrelatingthereto(ineach
case,onanaggregatebasisduringthepreceding12months)orthedesignationoftheBoardofManagementasthe
authorizedbodytoresolveonthesematters;(ii)anauthorizationtorepurchase25percentormoreofASMLsissued
andoutstandingsharecapitalonanaggregatebasisduringthepreceding12months;(iii)theapprovalofasignificant
changeintheidentityornatureofASMLoritsbusiness,includingatransferofallorsubstantiallyallbusinessorassets
ofASMLanditssubsidiariestoathirdparty,theestablishmentorcancellationofalong-lastingcooperationofessential
importancewithathirdpartyandanacquisitionordispositionofaninterestinthecapitalorassetsofapersonwith
avalueofatleastonethirdoftheassetsofASML(onaconsolidatedbasis);(iv)anamendmenttoASMLsArticlesof
AssociationthatwouldmateriallyaffectthespecificvotingrightsofIntel,wouldmateriallyaffecttheidentityornature
ofASMLoritsbusiness,orwoulddisproportionately(oruniquely)andadverselyaffecttherightsorbenefitsattached
toorderivedfromtheordinarysharesheldbyIntelthroughtheIntelStichtingascomparedtotheshareholders;(v)the
dissolutionofASML;and(vi)anymergerordemergerwhichwouldresultinamaterialchangeintheidentityornatureof
ASMLoritsbusiness.
Standstill, Lock-up and Orderly Market Arrangements
Standstill;AdditionalPurchases
Subjecttocertainexceptions,pursuanttotheShareholderAgreement,Intel(oritsaffiliates)maynot,priortothe
six-yearanniversaryofthedateoftheIntelShareholderAgreement(the"StandstillPeriod"),acquiremorethan19.9
percentoftheoutstandingsharecapitalofASMLwithoutASMLspriorapproval(the"StandstillRestriction").Thereis
anexceptionfromtheStandstillRestrictioninthecaseofasuspensionevent,whichincludescertaincircumstances
whereathirdpartyhasacquiredormadeanoffertoacquireatleast20percentofASMLsoutstandingshares,andthe
StandstillRestrictionwillterminateupontheoccurrenceofaShareholderAgreementTerminationEvent.
TheShareholderAgreementpermitsIntel(anditsaffiliates)toacquireupto4.99percentofASML'soutstandingshares
(otherthansharesacquiredthroughtheCCIP)thatmaybeheldoutsidetheIntelStichting.ForanyadditionalASML
sharesthatIntel(oritsaffiliates)acquiresinexcessof4.99percentoftheoutstandingsharesofASML,Intelisrequired
todepositsuchshareswiththeIntelStichtinginexchangeforDepositaryReceipts.ShareshelddirectlybyIntelorits
affiliates(andwhichnotrequiredtobedepositedwiththeIntelStichting)arenotsubjecttotheVotingRestrictions,or
Lock-UpRestrictions(asdefinedbelow),butaresubjecttotheStandstillRestriction.
TheIntelStichtingwillcontinuetoholdASMLsharesownedbyIntel(notwithstandingterminationoftheStandstill
Period)untiltheearlierof(i)suchtimeasIntelowns(directlyorthroughtheIntelStichting)lessthan2percentof
ASMLsoutstandingshares(therelevantpercentageis1percentfortheotherParticipatingCustomers)(ii)thedate
ofnotificationtoASMLbyParticipatingCustomersthattheaggregateamountofASMLsoutstandingsharesowned
byIntelandtheotherParticipatingCustomersrepresentslessthan5percentofASMLsoutstandingsharesand(iii)
aShareholderAgreementTerminationEvent(asdefinedbelow),followingwhichtimeDepositaryReceiptswillbe
exchangedfortheunderlyingASMLshares.IncaseIntelwouldacquireASMLshareswithin18monthsafteranevent
describedunder(i)or(ii)above,anyASMLsharesheldbyIntelinexcessof4.99percentoftheoutstandingsharesof
ASMLmustbetransferredto(andheldby)theIntelStichting.
51
Lock-up;OrderlySellDown
Intelmaynot,withoutpriorwrittenconsentofASML,transferanyordinarysharesorDepositaryReceiptsuntilthe
earliestof(i)twoyearsandsixmonthsafterthedateoftheIntelShareholderAgreement,(ii)terminationoftheNRE
FundingAgreements,and(iii)theoccurrenceofaShareholderAgreementTerminationEvent((i),(ii)and(iii)together,the
"Lock-UpRestriction").TheLock-UpRestrictiondoesnotapplyincertaincircumstanceswhereathirdpartyoffersto
acquireatleast20percentofASMLsshares.IntelisnotpermittedtotransfertheASMLordinarysharesitacquiredin
theprograminconnectionwithanoffer(beforetheendoftheoffer),ormakeanypublicstatementinsupportofsuch
offer,thatisnotrecommendedbytheASMLSupervisoryBoardorManagementBoard,exceptinlimitedcircumstances.
Inaddition,Intelmaynot(evenaftertheLock-UpRestrictionhasended),withoutwrittenconsentofASML,transfer
onNYSEEuronextAmsterdam,NASDAQoranothersecuritiesexchangemorethan(i)inrespectofIntel,4percentof
theoutstandingsharesofASMLduringanysixmonthperiod(therelevantpercentageis1.5percentforSamsungand
2.5percentforTSMC).TherearealsorestrictionsonIntel'sabilitytotransferASMLsharestocertaincompetitorsor
customersofASML.
Termination
TheIntelShareholderAgreementwillterminateupontheoccurrenceofthefollowingevents(eacha"Shareholder
AgreementTerminationEvent")(i)certainchangeofcontroltransactionsweretheshareholdersofASMLpriortosuch
atransactionarenolongerentitledtoexerciseatleast50percentofthevotesintheGeneralMeetingfollowingsuch
transaction,(ii)intheeventofadelistingofourshareslistedatNYSEEuronextAmsterdamordelistingofourshares
listedatNASDAQ(exceptforcertainvoluntarydelistingsfromNASDAQ),(iii)thewindinguporliquidationofASML,or
(vi)intheeventthatallDepositaryReceiptsareexchangedforASMLsharesandInteldoesnotacquireASMLsharesin
excessof4.99percentoftheoutstandingASMLshareswithin18monthsofsuchexchange(see"Standstill;Additional
Purchases"above).
NRE Funding Agreements
Intel NRE Funding Agreements
OnJuly9,2012,ASMLandIntelenteredintotwoNREFundingAgreementspursuanttowhichIntelhasagreedto
fundcertainofASMLsR&Dcostsandprojectexpenditures.OneagreementrelatestotheIntel450mmNREFunding
AgreementandtheotherrelatestotheIntelEUVNREFundingAgreement(togethertheIntelNREFundingAgreements).
IntelhascommittedtoprovidefundinginanaggregateamountofEUR553millionundertheIntel450mmNREFunding
AgreementandfundinginanaggregateamountofEUR276millionundertheIntelEUVNREFundingAgreement,
payableoverthetermoftherelevantagreements(2013-2017).Undertheagreements,ASMLretainssolecontrolover
thedevelopmentof450mmphotolithographyequipmentandEUVplatformsandwillownallintellectualproperty
createdbyASMLinconnectiontherewith.TheNREFundingAgreementsprovidethatifASML,initsreasonable
discretion,determinestoabandoneitherthe450mmorEUVdevelopmentproject,asaresultoftechnicalinfeasibility
orlackofsufficientindustrydemand,orifthethenremainingfundingexceedstheexpenditureestimateforthe
developmentproject(450mmorEUV),thenthepartiesmayagreeonanalternativedevelopmentproject.Ifnoalternative
isagreed,ASMLmayinvoiceIntelfortheremainingdueportionofcommittedfundingduringeachyearoftheremaining
fundingperiodinwhichASML'sactualgrossR&Dexpendituresexceedaminimumthresholdspecifiedintherelevant
IntelNREFundingAgreement.
TheNREFundingAgreementswillterminateonDecember31,2017oruponpre-paymentbyInteloftheaggregate
amountoffundingowedundertheIntelNREFundingAgreements
Development 450mm silicon wafer technology
InNovember2013,followingourcustomersdecision,ASMLdecidedtopausethedevelopmentof450mmlithography
systemsuntilcustomerdemandandthetimingrelatedtosuchdemandisclear.Webelievethatour450mm
developmentactivitiescanberestartedifandwhentheindustrydemandstheintroductionof450mm.Since450mm
requiresbothgenericdevelopmentsandwafersize-specificdevelopments,manyofouremployeesinvolvedinthe
450mmprojectaredoingworkthatisjustasrelevantforfutureDUVandEUVplatforms.Theteamsandpeoplehave
thereforebeenreassignedtodifferentprojects.
52
UnderourCCIP,wearepartytoa450mmNREFundingAgreementwithIntelforatotalNREfundingcommitmentof
EUR553million.WearecurrentlyindiscussionswithInteltodetermineappropriateprojectstowhichtoapplythe
450mmNREfunding.
UndertheCCIP,wearealsopartytoEUVNREagreementswithIntel(totalfundingofEUR276million),TSMC(total
fundingofEUR276million)andSamsung(totalfundingofEUR276million),allofwhichfundingisbeingusedforEUV
projects.

TheremunerationofthemembersoftheSupervisoryBoardisnotdependentonourfinancialresults.Nomemberofthe
SupervisoryBoardpersonallymaintainsabusinessrelationshipwithASMLotherthanasamemberoftheSupervisory
Board.TheRemunerationCommitteeisresponsibleforreviewingand,ifappropriate,recommendingchangesto
theremunerationoftheSupervisoryBoard.Anyrecommendedchangestotheremunerationofthemembersofthe
SupervisoryBoardmustbesubmittedtotheGeneralMeetingofShareholdersforapproval.Formoredetailsregarding
theremunerationoftheSupervisoryBoardwerefertoNote31toourConsolidatedFinancialStatements.

TheremunerationoftheindividualmembersoftheBoardofManagementisdeterminedbytheSupervisoryBoardbased
ontheadviceoftheRemunerationCommitteeoftheSupervisoryBoard.Formoredetailsregardingtheremunerationof
theBoardofManagement,werefertotheCorporateGovernanceParagraphandNote31toourConsolidatedFinancial
Statements.
Corporate Governance
ASMLcontinuouslymonitorsandassessesapplicableDutch,U.S.,andotherrelevantcorporategovernancecodes,
rules,andregulations.ASMLissubjecttotheCode,asASMLisregisteredintheNetherlandsandislistedonNYSE
EuronextAmsterdam.FormoredetailswerefertotheCorporateGovernanceParagraph.

TheDirectorsResponsibilityStatementisincludedinthisreportonpages57and58.
Corporate Responsibility Report 2013

CorporateResponsibilityStrategy:Ourcustomerswantlithographysystemsthatproducemorechipsfaster,usingless
energyandfewernaturalresources,atasimilarcost.Customersalsowantus,astheirsupplier,tooperateaccordingto
thehighestenvironmental,socialandgovernancestandards.ASML'scorporateresponsibilitystrategyisbasedonand
fullyalignedtoourbusinessstrategy,aimedatmaintainingandfurtherdevelopingourpositionasatechnologyleaderin
thesemiconductorindustry.
In2013,weperformedacomprehensiveandstructuredmaterialityassessmentinordertoidentifythenon-financial
themesthataremostrelevanttoourstakeholdersandforoursustainedlong-termbusinesssuccess.
53
Mostofthematerialthemesidentifiedarealreadyincludedinourstrategyandhighonourprioritylist.Weidentified
eightmaterialnon-financialthemesvalidatedbytheCRSB:
Innovation;
Knowledge&intellectualpropertymanagement;
Sustainablerelationshipwithoursuppliers;
Sustainablerelationshipwithourcustomers;
Productstewardship;
Talentmanagement;
Training&development;and
Sustainablerelationshipwithouremployees.
Inaddition,werecognizethattherearecertainotherthemesonwhichourstakeholdersexpectustoactasa
responsiblecorporatecitizen.Thesethemeshavebeenlabeledasresponsiblebusinessthemes.Theoutcomeofthe
materialityassessmentwillbeusedin2014torefocusourcorporateresponsibilitystrategy.
CorporateResponsibilityGovernance:CorporateresponsibilityisdrivenbytheExecutiveVicePresidentOperationsand
OrderFulfillmentProcess,FrdricJ.M.Schneider-Maunoury,whochairstheCRSB,whichsupervisestheexecution
ofourcorporateresponsibilitystrategy.TheCRSBismadeupofseniormanagementrepresentativesfromallsectors
withinASML.ItisthemissionoftheCRSBtomonitortherealizationofourcorporateresponsibilitytargetsandKPIs,
andtoreviewandapproverelatedpolicychangesandimprovementactivities.TheCRSBmetfourtimesin2013.
ThemeetingsfocusedonreviewingtheprogressofASMLsnon-financialperformanceindicatorswithrespecttoour
corporateresponsibilitytargets,KPIsandprojects.
TheCorporateRisk&Assurancedepartmentcoordinatestheday-to-dayimplementationofthecorporateresponsibility
strategy,policiesandimprovementactivities,whilebusinessownershavetheoperationalresponsibilitytoimplementthe
corporateresponsibilitypolicies.
US GAAP and Dutch Statutory Annual Reports

General
ASMLpreparestwosetsofFinancialStatements,onebasedonUSGAAPandonebasedonDutchlawandIFRS-EU.By
meansofregulation1606/2002,theEuropeanCommissionhasstipulatedthatalllistedcompanieswithintheEuropean
UnionmemberstatesarerequiredtopreparetheirconsolidatedfinancialstatementsunderIFRS-EUasfromJanuary1,
2005.
TheConsolidatedFinancialStatementsincludedinthisStatutoryAnnualReportarebasedonIFRS-EU.Forinternaland
externalreportingpurposes,ASMLfollowsUSGAAP,whichisASMLsprimaryaccountingstandardforsettingfinancial
andoperationalperformancetargets.
ASMLsAnnualReportonForm20-F,whichisbasedonUSGAAP,maycontainadditionalinformationnexttoits
StatutoryAnnualReport.TheAnnualReportonForm20-F,theUSGAAPquarterlypressreleases(includingsummary
USGAAPandIFRSConsolidatedFinancialStatements),theStatutoryInterimReportandtheStatutoryAnnualReport
areavailableonASML'swebsiteatwww.asml.com.FortheperiodspresentedinthisStatutoryAnnualReport,themain
differencesbetweenIFRSandUSGAAPforASMLrelatetothefollowing:

(in thousands)
2013
EUR
2012
EUR
Net income based on US GAAP

Developmentexpenditures
Share-basedpayments
Incometaxes
Reversalofwrite-downs
Net income based on IFRS
1,015,490
188,972
4,029
(14,647)
1,193,844
1,146,316
164,736
(959)
(587)
(7,159)
1,302,347
54
As of December 31
(in thousands)
2013
EUR
2012
EUR
Shareholders equity under U.S. GAAP

Share-basedpayments
Incometaxes
Reversalofwrite-downs
Equity under IFRS
6,922,427
582,614
27,038
12,716
7,544,795
4,066,893
396,894
4,061
30,354
4,498,202
Development Expenditures
UnderIFRS,ASMLappliesIAS38,IntangibleAssets.InaccordancewithIAS38,ASMLcapitalizescertain
developmentexpendituresthatareamortizedovertheexpectedusefullifeoftherelatedproductgenerallyranging
betweenoneandthreeyears.Amortizationstartswhenthedevelopedproductisreadyforvolumeproduction.
UnderUSGAAP,ASMLappliesASC730,ResearchandDevelopment.InaccordancewithASC730,ASMLcharges
costsrelatingtoR&Dtooperatingexpenseasincurred.
Share-based Payments
UnderIFRS,ASMLappliesIFRS2,Share-basedPayments.InaccordancewithIFRS2,ASMLrecordsasanexpense
thefairvalueofitsshare-basedpaymentswithrespecttostockoptionsandstockgrantedtoitsemployeesafter
November7,2002.UnderIFRS,atperiodendadeferredtaxassetiscomputedonthebasisofthetaxdeductionfor
theshare-basedpaymentsundertheapplicabletaxlawandisrecognizedtotheextentitisprobablethatfuturetaxable
profitwillbeavailableagainstwhichthesedeductibletemporarydifferenceswillbeutilized.Therefore,changesin
ASMLssharepricedoaffectthedeferredtaxassetatperiod-endandresultinadjustmentstothedeferredtaxasset.
UnderUSGAAP,ASMLappliesASC718Compensation-StockCompensationwhichrequirescompaniestorecognize
thecostofemployeeservicesreceivedinexchangeforawardsofequityinstrumentsbaseduponthegrant-datefair
valueofthoseinstruments.ASC718sgeneralprincipleisthatadeferredtaxassetisestablishedaswerecognize
compensationcostsforcommercialpurposesforawardsthatareexpectedtoresultinataxdeductionunderexisting
taxlaw.UnderUSGAAP,thedeferredtaxrecordedonshare-basedcompensationiscomputedonthebasisofthe
expenserecognizedinthefinancialstatements.Therefore,changesinASMLssharepricedonotaffectthedeferredtax
assetrecordedinourFinancialStatements.
Income Taxes
UnderIFRS,ASMLappliesIAS12,IncomeTaxesbeginningfromJanuary1,2005.InaccordancewithIAS12
unrealizednetincomeresultingfromintercompanytransactionsthatareeliminatedfromthecarryingamountofassets
inconsolidationgiverisetoatemporarydifferenceforwhichdeferredtaxesmustberecognizedinconsolidation.The
deferredtaxesarecalculatedbasedonthetaxrateapplicableinthepurchaserstaxjurisdiction.
UnderUSGAAP,theeliminationofunrealizednetincomefromintercompanytransactionsthatareeliminatedfrom
thecarryingamountofassetsinconsolidationgiverisetoatemporarydifferenceforwhichprepaidtaxesmustbe
recognizedinconsolidation.ContrarytoIFRS,theprepaidtaxesunderUSGAAParecalculatedbasedonthetaxrate
applicableinthesellersratherthanthepurchaserstaxjurisdiction.
Reversal of Write-downs
UnderIFRS,ASMLappliesIAS2(revised),Inventories.InaccordancewithIAS2,reversalofapriorperiodwrite-down
asaresultofasubsequentincreaseinvalueofinventoryshouldberecognizedintheperiodinwhichthevalueincrease
occurs.
UnderUSGAAP,ASMLappliesASC330Inventory.InaccordancewithASC330reversalofawrite-downisprohibited
asawrite-downcreatesanewcostbasis.
55
Statutory Interim Report 2013

OnJuly17,2013wepublishedourStatutoryInterimReportforthesix-monthperiodendedJune30,2013.This
reportincludesConsolidatedCondensedInterimFinancialStatementspreparedinaccordancewithIAS34,anInterim
ManagementBoardReportandaManagingDirectors'Statement.TheStatutoryInterimReportcomprisesregulated
informationwithinthemeaningoftheDutchFMSA.
TheBoardofManagement,
56

Managing Directors Statement (EU Transparency Directive)
TheBoardofManagementherebydeclaresthat,tothebestofitsknowledge,theStatutoryFinancialStatements
preparedinaccordancewithIFRS-EUandTitle9ofPart2oftheNetherlandsCivilCodeprovideatrueandfairview
oftheassets,liabilities,financialpositionandprofitorlossofASMLHoldingN.V.andtheundertakingsincludedinthe
consolidationtakenasawholeandthatthemanagementreportincludesafairreviewconcerningthepositionasper
thestatementoffinancialpositiondate,thedevelopmentandperformanceofASMLHoldingN.V.andtheundertakings
includedintheconsolidationtakenasawhole,togetherwiththeprincipalriskanduncertaintiesthattheyface.
In Control Statement (Dutch Corporate Governance Code)

AstheBoardofManagementofASMLHoldingN.V.,weherebystatethatweareresponsibleforthedesign,
implementationandoperationofASML'sinternalriskmanagementandcontrolsystems.Thepurposeofthesesystems
istoadequatelyandeffectivelymanagethesignificantriskstowhichASMLisexposed.Suchsystemscanneverprovide
absoluteassuranceregardingachievementofcorporateobjectives,norcantheyprovideanabsoluteassurancethat
materialerrors,losses,fraudandtheviolationoflawsorregulationswillnotoccur.
Financial Reporting Risks
Tocomplywithourdutiesintheareaofinternalriskmanagementandcontrolsystemswithrespecttofinancialreporting
risks,weusevariousmeasuresincludingbutnotlimitedto:
monthlyoperationalreviewmeetingsoftheBoardofManagementwithASMLsseniormanagementonfinancial
performanceandrealizationofoperationalobjectivesandresponsestoemergingissues;
semi-annualfinancialplanningmeetingsoftheBoardofManagementwithASMLsseniormanagement;
monthlyandquarterlyfinancialreportingtotheBoardofManagementandASMLsseniormanagement;
lettersofrepresentationthataresignedbyASMLskeyseniormanagementmembersonasemi-annualbasisinwhich
theyconfirmthatfortheirresponsibleareabasedupontheirknowledge(i)aneffectivesystemofinternalcontrolsand
proceduresismaintainedand(ii)thefinancialreportsfairlypresentthefinancialposition,resultsofoperationsand
cashflows;
assessmentsbyASMLsDisclosureCommitteewithrespecttothetimelyreview,disclosure,andevaluationof
periodic(financial)reports;
assessmentsbyASMLsDisclosureCommitteewithrespecttointernalcontrolsinlightofamongothersthe
requirementsundertheSarbanes-OxleyActof2002andtheDutchCorporateGovernanceCode;
discussionsonmanagementlettersandauditreportsprovidedbyASML'sinternalandexternalauditorswithinour
BoardofManagementandSupervisoryBoard;
ASML'sCodeofConductandBusinessPrinciples,ourguidelinesonethicalbusinessconduct;
ASMLsprocedureforreportingissueswithrespecttotheCodeofConduct,includingcomplaintsofafinancial
nature,theReportingProcedure;and;
ASMLsAnti-FraudPolicy,whichfacilitatesthedevelopmentofcontrolswhichwillaidinprevention,deterrenceand
detectionoffraudagainstASML.
Weacknowledgetheimportanceofinternalcontrolandriskmanagementsystems.Therefore,in2004,ASMLexecuted
theSOXProjecttoestablishaframeworktoproperlymanageinternalcontrolsoverfinancialreporting,whichisrequired
persection404oftheSarbanes-OxleyActof2002("SOX404").TheresultsofASMLsassessmentoftheeffectiveness
ofthisframework,whichisbasedontheCommitteeofSponsoringOrganizationsoftheTreadwayCommission("COSO")
model(1992),aswellassignificantchangesandimprovements,areregularlyreportedtoanddiscussedwithASMLs
AuditCommitteeandexternalauditors.TheAuditCommitteereportsaboutthesesubjectstotheSupervisoryBoardon
aregularbasis.Inaddition,onceayear,theBoardofManagementdiscussestheimplementationofthisinternalcontrol
framework,aswellassignificantchangesandmajorimprovementsininternalcontrols,withtheAuditCommitteeand
thefullSupervisoryBoard.
57
Summary
Basedontheoutcomeoftheabove-mentionedmeasuresandtothebestofitsknowledgeandbelief,theBoardof
Managementstatesthat:
1. theabove-mentionedmeasuresprovideareasonablelevelofassurancethatASMLsFinancialStatementsasof
andfortheyearendedDecember31,2013fairlypresentinallmaterialrespectsthefinancialcondition,resultsof
operationsandcashflowsofASMLandthatASMLsFinancialStatementsasofandfortheyearendedDecember
31,2013donotcontainanymaterialinaccuracy;
2. theinternalriskmanagementandcontrolsystemsprovideareasonableassurancethatthefinancialreportingdoes
notcontainanyerrorsofmaterialimportanceandhaveworkedadequatelyin2013;and
3. therearenoindicationsthatASML'sinternalcontrolsoverfinancialreportingwillnotoperateeffectivelyin2014.
ASMLsBoardofManagementiscurrentlynotawareofanysignificantchangeinASML'sinternalcontroloverfinancial
reportingthatoccurredduring2013thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,ASML's
effectivenessofinternalcontroloverfinancialreporting.
Operational/Strategic Risks and Legal and Regulatory Risks
Tocomplywithourdutiesintheareaofinternalriskmanagementandcontrolsystemswithrespecttooperational/
strategicrisksandlegalandregulatoryrisks,weusevariousmeasuresamongwhich:
strategicevaluationsofASMLsbusinessbytheBoardofManagementinconsultationwiththeSupervisoryBoard;
semi-annualseniormanagementmeetings,whichareconductedtoassessASMLscorporateinitiativeswhichare
launchedinordertoexecuteASMLsstrategy;
monthlyoperationalreviewmeetingsoftheBoardofManagementwithASMLsseniormanagementonfinancial
performanceandrealizationofoperationalobjectivesandresponsestoemergingissues;
semi-annualfinancialplanningmeetingsoftheBoardofManagementwithASMLsseniormanagement;
monthly(internal)andquarterly(public)financialreporting;
lettersofrepresentationthataresignedbyASMLskeyseniormanagementmembersonasemi-annualbasisin
whichtheyconfirmtheirresponsibilityforassessingbusinessrisksandensuringappropriateriskmitigationfortheir
responsibleareabasedupontheirknowledge;
quarterlyreviewofkeyoperationalriskareasbytheCRSB;
ASML'sCodeofConductandBusinessPrinciples,ourguidelinesonethicalbusinessconduct;
ASMLsprocedureforreportingissueswithrespecttotheCodeofConduct,includingcomplaintsofafinancial
nature,theReportingProcedure;and;
ASMLsAnti-FraudPolicy,whichfacilitatesthedevelopmentofcontrolswhichwillaidinprevention,deterrenceand
detectionoffraudagainstASML.
TheestablishmentofASMLsinternalcontrolandriskmanagementsystemsisbasedontheidentificationofexternal
andinternalriskfactorsthatcouldinfluencetheoperationalandfinancialobjectivesofASMLandcontainsasystem
ofmonitoring,reportingandoperationalreviews.Allmaterialriskmanagementactivitieshavebeendiscussedwith
theAuditCommitteeandtheSupervisoryBoard.Formoreinformationonourriskmanagementactivitiesandour
internalcontrolandriskmanagementsystems,werefertoInternalRiskManagementandControlSystems,External
FactorsincludedinASMLsCorporateGovernanceParagraph.ForasummaryofASMLsRiskFactors,werefertoour
ManagementBoardReportinthisStatutoryAnnualReport.
TheBoardofManagement,
PeterT.F.M.Wennink,President,CEOandChairmanoftheBoardofManagement
MartinA.vandenBrink,President,CTOandViceChairmanoftheBoardofManagement
FritsJ.vanHout,ExecutiveVicePresident,ChiefProgramOfficer
FrdricJ.M.Schneider-Maunoury,ExecutiveVicePresident,ChiefOperationsOfficer
58
Consolidated Financial
Statements
59
60
Consolidated Financial Statements

62
ConsolidatedStatementofProfitorLoss
63
ConsolidatedStatementofComprehensiveIncome
64
ConsolidatedStatementofFinancialPosition
65
ConsolidatedStatementofChangesinEquity
66
ConsolidatedStatementofCashFlows
67
NotestotheConsolidatedFinancialStatements
61
Consolidated Statement of Profit or Loss

(in thousands, except per share data)
2013
EUR
2012
EUR
29
Netsystemsales
3,993,129
1,252,197
3,801,632
929,923
29
Total net sales

Costofsystemsales
Costofserviceandfieldoptionsales
5,245,326
(2,324,903)
(834,443)
4,731,555
(2,308,315)
(527,377)
30
Total cost of sales
(3,159,346)
(2,835,692)
Gross profit
Otherincome
2,085,980
64,456
(563,965)
(311,335)
1,895,863
(298,052)
(256,479)
33
33
Operating income
Financeincome
Financecosts
1,275,136
9,187
(28,010)
1,341,332
16,585
(20,008)
27
Income before income taxes

Provisionforincometaxes
1,256,313
(62,469)
1,337,909
(35,562)
Net income
Basicnetincomeperordinaryshare
1
Dilutednetincomeperordinaryshare
Numberofordinarysharesusedincomputingpershareamounts(inthousands):
Basic
1
Diluted
1,193,844
2.78
2.75
1,302,347
3.07
3.05
429,770
433,446
424,096
426,986
Notes
36
30,32
30
8
8
8
8
1
Thecalculationofdilutednetincomeperordinaryshareassumestheexerciseofoptionsissuedunderourstockoptionplansandtheissuanceof
sharesunderourshareplansforperiodsinwhichexercisesorissuanceswouldhaveadilutiveeffect.Thecalculationofdilutednetincomeper
ordinarysharedoesnotassumeexerciseofsuchoptionsorissuanceofshareswhensuchexercisesorissuancewouldbeanti-dilutive.
62
Consolidated Statement of Comprehensive Income

(in thousands)
2013
EUR
2012
EUR
Net income
1,193,844
1,302,347
Foreign currency translation, net of taxes:

Gain(loss)onthehedgeofanetinvestment
Gain(loss)ontranslationofforeignoperations
(122,000)
5,927
Financial instruments, net of taxes:

Gain(loss)onderivativefinancialinstruments
Transferstonetincome
1
Other comprehensive income for the period, net of taxes
(5,370)
(2,276)
(129,646)
214
(7,761)
(1,620)
Total comprehensive income for the period, net of taxes
1,064,198
1,300,727
AttributabletoEquityholders
1,064,198
1,300,727
Notes
Other comprehensive income:
6,19
6,19
6,19
6,19
AllitemsinaccumulatedothercomprehensiveincomeasatDecember31,2013,comprisingofthehedgingreserveofEUR12.2million(2012:EUR
4.6million)andthecurrencytranslationreserveofEUR214.0million(2012:EUR96.5million),willbereclassifiedsubsequentlytoprofitorlosswhen
specificconditionsaremet.
63
Consolidated Statement of Financial Position

(Beforeappropriationofnetincome)
Notes
9
10
11
27
16
13
14
15
27
13
16
17
14
18
18
As of December 31
(in thousands)
2013
EUR
2012
EUR
Assets
Property,plantandequipment
Goodwill
Otherintangibleassets
Deferredtaxassets
Financereceivables
Derivativefinancialinstruments
Otherassets
Total non-current assets
1,217,840
2,111,296
1,375,572
302,724
46,017
30,777
263,353
5,347,579
1,029,923
158,067
460,928
188,638
38,621
101,651
206,900
2,184,728
Inventories
Currenttaxassets
Financereceivables
Accountsreceivable
Otherassets
Total current assets
2,393,022
32,333
40,843
250,472
878,321
250,217
679,884
2,330,694
6,855,786
1,856,970
57,116
50,097
265,167
605,288
166,088
930,005
1,767,596
5,698,327
Total assets
12,203,365
7,883,055
Equity and liabilities

19
Equity
7,544,795
4,498,202
20
13
27
22
23
Long-termdebt
Deferredandothertaxliabilities
Provisions
Accruedandotherliabilities
Total non-current liabilities
1,065,756
2,608
439,885
4,620
280,534
1,793,403
752,892
4,032
132,834
7,974
401,109
1,298,841
22
13
20
27
23
Provisions
Currentportionoflong-termdebt
Currenttaxliabilities
Accountspayable
Total current liabilities
2,227
9,044
4,385
15,803
2,207,838
625,870
2,865,167
2,280
6,861
3,610
10,791
1,873,509
188,961
2,086,012
Total equity and liabilities
12,203,365
7,883,055
64
Consolidated Statement of Changes in Equity

Issued and
Outstanding Shares
Notes
6,19
6,19
19,36
19,36
19,36
19
19
24,30,31
24,30
19
19
6,19
6,19
19,36
19
19
24,30,31
24,30
19
19
2
3
4
5
6
7
(in thousands)
Balance at January 1, 2012
Appropriation of net income
Components of statement of
comprehensive income
Netincome
Foreigncurrencytranslation
Lossonfinancialinstruments,netof
taxes
Total comprehensive income
Amount
EUR
38,816
Share
Premium
EUR
920,478
Treasury
Shares at
Cost
EUR
(417,837)
1,494,071
5,927
(7,547)
1,302,347
-
1,302,347
5,927
(7,547)
(1,620)
1,302,347
1,300,727
125,628
3,977,368
(123,416)
(3,728,324)
192,482
349,901
1,302,347
(535,373)
20,596
55,711
(188,892)
4,498,202
- (1,302,347)
Number
EUR
413,669
Retained
Other
2
Earnings Reserves
EUR
EUR
1,525,238
159,039
Net
Income
EUR
1,494,071
Total
EUR
3,719,805
- (1,494,071)
CCIP:
Issuanceofshares
3
Fairvaluedifferences
4
Capitalrepayment
96,566
(93,411)
8,691 3,968,677
- (123,416)
(8,691) (3,845,261)
Purchases of treasury shares

Cancellation of treasury shares
Share-based payments
Issuance of shares
Dividend paid
Development expenditures
Balance at December 31, 2012
(13,478)
3,819
407,165
(1,030)
37,786
20,596
(8,106)
932,968
(535,373)
294,752
66,982
(465,848)
(293,722)
(3,165)
(188,892)
(192,482)
2,341,048

Netincome
Lossonfinancialinstruments,netof
taxes
1,302,347
(122,000)
(7,646)
1,193,844
-
1,193,844
(122,000)
(7,646)
(129,646)
1,193,844
1,064,198
CCIP:
5
20,956
20,956

6
7
Issuance of shares
Dividend paid
(4,614)
38,301
440,852
(854)
3,282
40,214
116,821
2,312,360
3,383,105
(300,000)
349,261
50,805
(365,782)
(348,407)
(5,744)
(216,085)
(231,523)
2,841,636
231,523
451,778
1,193,844
(300,000)
116,821
2,360,703
(216,085)
7,544,795
AsofDecember31,2013,thenumberofissuedshareswas446,822,452.Thisincludesthenumberofissuedandoutstandingsharesof440,852,334
andthenumberoftreasurysharesof5,970,118.AsofDecember31,2012,thenumberofissuedshareswas419,852,467.Thisincludesthenumber
ofissuedandoutstandingsharesof407,165,221andthenumberoftreasurysharesof12,687,246.
Otherreservesconsistofthehedgingreserve,thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures.SeeNote
19.
ThedifferencebetweenthefairvalueofthesharesandthesubscriptionpriceofthesharesissuedtotheparticipatingcustomersintheCCIP.
In2012,aspartofthecapitalrepayment,EUR3,728.3millionofEquitywasreturnedtoourshareholders(excludingParticipatingCustomersinthe
CCIP)andthenumberofshareswasreducedby23percent.SeeNote19.
EUR21.0millionisrecognizedtoincreaseequitytothefairvalueofthesharesissuedtotheParticipatingCustomersintheCCIP.Theportionofthe
NREfundingallocabletothesharesisrecognizedovertheNREFundingAgreementsperiod(2013-2017).
Share-basedpaymentsincludeanamountofEUR66.1millioninrelationtothefairvaluecompensationofunvestedequityawardsexchangedaspart
ofacquisitionofCymer.
Issuanceofsharesincludes36,464,576ordinarysharesissuedinrelationtotheacquisitionofCymerforatotalfairvalueofEUR2,346.7million.
ThedifferenceofEUR1.0millionwiththefairvalueofsharesasdisclosedinNote4isexplainedby14,533sharesstilltobeissuedtoformerCymer
shareholders.
65
Consolidated Statement of Cash Flows

(in thousands)
2013
EUR
2012
EUR
Cash Flows from Operating Activities

Netincome
1,193,844
1,302,347
Adjustmentstoreconcilenetincometo
netcashflowsfromoperatingactivities:
Depreciationandamortization
Impairment
1
Lossondisposalofproperty,plantandequipment
Share-basedpayments
Allowancefordoubtfulreceivables
Allowanceforobsoleteinventory
Deferredincometaxes
320,924
13,057
2,823
47,422
1,062
164,852
26,018
285,886
3,234
2,272
18,714
458
118,678
(41,695)
Changesinassetsandliabilities:
Accountsreceivable
Financereceivables
1
Inventories
Otherassets
Accountspayable
Incometaxespayable
Cash generated from operations
(192,149)
9,277
(521,110)
(53,141)
(6,747)
321,486
68,795
1,396,413
246,982
(225,103)
(334,280)
(8,627)
(109,785)
(225,083)
81,177
1,115,175
Interestreceived
Interestpaid
Incometaxespaid
Net cash provided by operating activities
37,355
(50,535)
(2,278)
1,380,955
31,453
(37,906)
(109,504)
999,218
Notes
9,11
9,11
9
24,31
17
15
27
17
16
15
14
22,23
27
9
11
5,18
5,18
19
19
24,31
19
20
Cash Flows from Investing Activities

1
Purchaseofproperty,plantandequipment
Purchaseofintangibleassets
Purchaseofavailableforsalesecurities
Maturityofavailableforsalesecurities
Acquisitionofsubsidiaries(netofcashacquired)
Net cash used in investing activities
(210,804)
(327,672)
(904,856)
1,195,031
2
(443,712)
(692,013)
(171,878)
(301,282)
(1,379,997)
449,992
(10,292)
(1,413,457)
Cash Flows from Financing Activities

Dividendpaid
Purchaseofshares
Netproceedsfromissuanceofshares
Netproceedsfromissuanceofnotes
Repurchasesofnotes
CapitalRepayment
Repaymentofdebt
Net cash used in financing activities
(216,085)
(300,000)
31,822
4
740,445
5
(368,303)
(4,100)
(116,221)
(188,892)
(535,373)
3
3,907,666
6
(3,728,324)
(2,776)
(547,699)
18
Netcashflows
Effectofchangesinexchangeratesoncash
Net increase (decrease) in cash and cash equivalents
Cashandcashequivalentsatbeginningoftheyear
572,721
(9,623)
563,098
1,767,596
(961,938)
(2,248)
(964,186)
2,731,782
18
Cash and cash equivalents at end of the year
2,330,694
1,767,596
2
3
4
5
6
AnamountofEUR115.9million(2012:EUR204.8million,2011:EUR300.5million)oftheadditionsinproperty,plantandequipmentrelatestononcashtransfersfrominventory,anamountofEUR12.5million(2012:EUR9.6million,2011:EUR17.7million)relatestoothernon-cashmovements
(mainlyinvestmentsnotyetpaidandinceptionsoffinanceleasearrangements)andanamountofEUR48.2million(2012:EUR222.9million,2011:
EUR145.3million)ofthedisposalofproperty,plantandequipmentrelatestonon-cashtransferstoinventory.Sincethetransfersbetweeninventory
andproperty,plantandequipmentarenon-cashevents,thesearenotreflectedintheConsolidatedStatementofCashFlows.Forfurtherdetailssee
Note9.
InadditiontothecashpaidinrelationtotheacquisitionofCymer,weissued36,464,576sharesforanamountofEUR2,346.7million(non-cash
event)aspartoftheconsiderationpaid.
ThenetproceedsfromissuanceofsharesincludesanamountofEUR3,853.9millionrelatedtotheshareissuancesinconnectiontotheCCIP.
NetproceedsfromissuanceofnotesrelatetothetotalcashproceedsofEUR740.4million(netofincurredtransactioncosts)fromtheofferingofour
EUR750million3.375percentseniornotesdue2023.
RepurchaseofnotesrelatestothenetcashoutflowsofEUR368.3millionforthepartialrepurchaseofourEUR600million5.75percentseniornotes
due2017includingthepartialunwindingoftherelatedinterestrateswaps.
ThedifferenceofEUR125.6millionbetweenthecapitalrepaymentofEUR3,728.3millionandthenetproceedsfromissuanceofsharesofEUR
3,853.9millionrelatestothecapitalrepaymentonASML'streasuryshareswhichwasalsopartoftheSyntheticShareBuybackinNovember2012.
66
Notes to the Consolidated Financial Statements

1. General Information
ASML,withitscorporateheadquartersinVeldhoven,theNetherlands,isengagedinthedevelopment,production,
marketing,sellingandservicingofadvancedsemiconductorequipmentsystems,exclusivelyconsistingoflithography
systems.ASML'sprincipaloperationsareintheNetherlands,theUnitedStatesofAmericaandAsia.
OursharesarelistedfortradingintheformofregisteredsharesonNASDAQandonNYSEEuronextAmsterdam.The
principaltradingmarketofourordinarysharesisNYSEEuronextAmsterdam.
OnMay30,2013weacquired100percentoftheissuedsharecapitalofCymer.Comparativefinancialinformation
presentedintheConsolidatedFinancialStatementsdoesnotincludeCymer,unlessstatedotherwise.
OurFinancialStatementswereauthorizedforissuebytheBoardofManagementonFebruary11,2014andwillbefiled
attheTradeRegisteroftheChamberofCommerceinEindhoven,theNetherlandswithineightdaysafteradoptionby
theGeneralMeetingofShareholders,scheduledonApril23,2014.
2. Adoption of New and Revised International Financial Reporting Standards
Standards and Interpretations Effective in 2013

ASML'simplementationofnewStandardsandInterpretationswhichareeffectiveasofJanuary1,2013andhadan
effectonourConsolidatedFinancialStatements,aresummarizedbelow:
AnnualImprovementstoIFRSs2009-2011CycleissuedinMay2012(effectiveforannualperiodsbeginningonor
afterJanuary1,2013).AmendmentstoIFRSsamongstothersincludeamendmentstoIAS1"PresentationofFinancial
Statements".ThisAmendmentrequirestogrouptheitemsinothercomprehensiveincomeonthebasisofwhetherthey
arepotentiallyabletosubsequentlyreclassifiedtoprofitandloss(reclassificationadjustments).Thepresentationofour
ConsolidatedStatementofComprehensiveIncomehasbeenadjustedtocomplywiththisAmendment.
At the Date of Authorization of These Consolidated Financial Statements, the Following Standards and
Interpretations Have Been Issued However Are Not Yet Effective and/or Have Not Yet Been Adopted by the EU
and Have Not Yet Been Adopted by Us
1
IFRS9FinancialInstruments(effectiveforannualperiodsbeginningonorafterJanuary1,2017 ),wasissuedin
November2009andsubsequentlyamendedinDecember16,2011andNovember19,2013.TheStandardissubject
toendorsementbytheEU.IFRS9addressestheclassificationandmeasurementoffinancialassetsandfinancial
liabilities.IFRS9enhancestheabilityofinvestorsandotherusersoffinancialinformationtounderstandtheaccounting
offinancialassetsandreducescomplexity.Furthermore,IFRS9addressestheaccountingforchangesinthefairvalue
offinancialliabilities(designatedatfairvaluethroughprofitorloss)attributabletochangesinthecreditriskofthat
liability.WearecurrentlyintheprocessofdeterminingtheimpactofimplementingthisStandardonourConsolidated
FinancialStatements.
IAS32Amendments"OffsettingFinancialAssetsandFinancialLiabilities"(effectiveforannualperiodsbeginningonor
afterJanuary1,2014).TheamendmentstoIAS32clarifyexistingapplicationissuesrelatingtotheoffsetoffinancial
assetsandfinancialliabilitiesrequirements.Specificallytheamendmentsclarifythemeaningof'currencyhasalegally
enforceablerightofset-off'and'simultaneousrealizationandsettlement'.Wedonotanticipateanymaterialimpacton
ourConsolidatedFinancialStatementsuponimplementation.
WebelievethattheeffectofallotherIFRSsnotyetadoptedisnotexpectedtobematerial.
1) theIASBtentativelydecidedthatthemandatoryeffectivedateofIFRS9willbenoearlierthanannualperiodsbeginningonorafter1January2017.
67
3. Summary of Significant Accounting Policies

Basis of Preparation
TheaccompanyingConsolidatedFinancialStatementsarestatedinthousandsofEURunlessotherwiseindicated.These
ConsolidatedFinancialStatements,preparedforstatutorypurposes,havebeenpreparedinaccordancewithIFRSEU.Forinternalandexternalreportingpurposes,weapplyUSGAAP.USGAAPisourprimaryaccountingstandardfor
settingfinancialandoperationalperformancetargets.
TheConsolidatedFinancialStatementshavebeenpreparedonhistoricalcostconventionunlessstatedotherwise.The
principalaccountingpoliciesadoptedaresetoutbelow.
Use of Estimates
ThepreparationofourConsolidatedFinancialStatementsinconformitywithIFRSrequiresmanagementtomake
estimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesandthedisclosureofcontingent
assetsandliabilitiesonthedatesoftheConsolidatedStatementofFinancialPositionandthereportedamountsofnet
salesandcostsduringthereportedperiods.Actualresultscoulddifferfromthoseestimates.
Basis of Consolidation
TheConsolidatedFinancialStatementsincludetheFinancialStatementsofASMLHoldingN.V.andallofitssubsidiaries
andtheSPEofwhichASMListheprimarybeneficiary.Allintercompanyprofits,balancesandtransactionshavebeen
eliminatedintheconsolidation.
Subsidiaries
SubsidiariesareallentitiesoverwhichASMLhasthepowertogovernfinancialandoperatingpoliciesgenerally
accompanyingashareholdingofmorethan50percentofthevotingrights.Asfromthedatethatthesecriteriaaremet,
thefinancialdataoftherelevantcompanyareincludedintheconsolidation.
BusinessCombinations
Acquisitionsofsubsidiariesareincludedonthebasisoftheacquisitionmethod.Thecostofacquisitionismeasured
basedontheconsiderationtransferredatfairvalue,thefairvalueofidentifiableassetsdistributedandthefairvalueof
liabilitiesincurredorassumedattheacquisitiondate(i.e.thedateatwhichweobtaincontrol).Theexcessofthecosts
ofanacquiredsubsidiaryoverthenetoftheamountsassignedtoidentifiableassetsacquiredandliabilitiesincurredor
assumed,iscapitalizedasgoodwill.Acquisition-relatedcostsareexpensedwhenincurredintheperiodtheyariseorthe
serviceisreceived.
SpecialPurposeEntities
WhenwehaveaninterestinaSPE,weshallassesswhetherwehavecontroloverthatSPEand,thus,should
consolidatetheSPE.
Foreign Currency Translation
TheindividualfinancialstatementsofeachgroupentityarepresentedintheirFunctionalCurrency.Forthepurposeof
theConsolidatedFinancialStatements,theresultsandfinancialpositionofeachentityareexpressedineuros,whichis
ASML'sFunctionalCurrency,andthepresentationcurrencyfortheConsolidatedFinancialStatements.
Inpreparingthefinancialstatementsoftheindividualentities,transactionsinForeignCurrenciesarerecordedatthe
ratesofexchangeprevailingthedateofthetransactions.AteachConsolidatedStatementofFinancialPositiondate,
monetaryitemsdenominatedinForeignCurrenciesaretranslatedattheratesprevailingtheConsolidatedStatement
ofFinancialPositiondate.Non-monetaryitemscarriedatfairvaluethataredenominatedinForeignCurrenciesare
translatedattheratesprevailingonthedatewhenthefairvaluewasdetermined.Non-monetaryitemsthataremeasured
intermsofhistoricalcostinaForeignCurrencyarenotretranslated.
Exchangeratedifferencesarisingonthesettlementofmonetaryitems,andonthetranslationofmonetaryitems,are
recognizedintheConsolidatedStatementofProfitorLossintheperiodinwhichtheyarise.Exchangeratedifferences
arisingonthetranslationofnon-monetaryitemscarriedatfairvaluearerecognizedintheConsolidatedStatementof
ProfitorLossfortheperiodexceptfordifferencesarisingonthetranslationofnon-monetaryitemsinrespectofwhich
gainsandlossesarerecognizeddirectlyinequity.Forsuchnon-monetaryitems,anyexchangeratecomponentofthat
gainorlossisalsorecognizeddirectlyinequity.
Inordertohedgeitsexposuretocertainforeignexchangeraterisks,weenterintoforwardcontractsandcurrency
options;seebelowfordetailsofouraccountingpoliciesinrespectofsuchderivativefinancialinstruments.
68
ForthepurposeofpresentingConsolidatedFinancialStatements,theassetsandliabilitiesofourforeignsubsidiaries
(includingcomparatives)areexpressedineurosusingexchangeratesprevailingontheConsolidatedStatementof
FinancialPositiondate.Incomeandcostitems(includingcomparatives)aretranslatedattheaverageexchangerates
fortheperiod,unlessexchangeratesfluctuatedsignificantlyduringthatperiod,inwhichcasetheexchangeratesat
thedatesofthetransactionsareused.Exchangeratedifferencesarisingareclassifiedasequityandtransferredtoour
currencytranslationreserve.SuchtranslationdifferencesarerecognizedintheConsolidatedStatementofProfitorLoss
intheperiodinwhichtheforeignoperationisdisposed.Goodwillandfairvalueadjustmentsarisingontheacquisitionof
aforeignsubsidiaryaretreatedasassetsandliabilitiesofforeignsubsidiariesandtranslatedatclosingrate.
Property, Plant and Equipment
Property,plantandequipmentarestatedatcost,lessaccumulateddepreciationandanyaccumulatedimpairment
losses.CostsofassetsmanufacturedbyASMLincludedirectmanufacturingcosts,productionoverheadandinterest
costsincurredforqualifyingassetsduringtheconstructionperiod.Depreciationiscalculatedusingthestraight-line
methodbasedontheestimatedusefullivesoftherelatedassets.Incaseofleaseholdimprovements,theestimated
usefullivesoftherelatedassetsdonotexceedtheremainingtermofthecorrespondinglease.Thefollowingtable
presentstheestimatedusefullivesofASMLsproperty,plantandequipment:
Category
Buildingsandconstructions
Machineryandequipment
Leaseholdimprovements
Furniture,fixturesandotherequipment
Estimated useful life

5-45years
2-10years
5-10years
3-5years
Landisnotdepreciated.
Certaininternalandexternalcostsassociatedwiththepurchaseand/ordevelopmentofinternallyusedsoftwareare
capitalizedwhenboththepreliminaryprojectstageiscompletedandmanagementhasauthorizedfurtherfundingfor
theproject,whichithasdeemedprobabletobecompletedandtobeusablefortheintendedfunction.Thesecostsare
amortizedonastraight-linebasisovertheperiodofrelatedbenefit,whichrangesprimarilyfromthreetofiveyears.
Theestimatedusefullivesanddepreciationmethodarereviewedateachyear-end,withtheeffectofanychangesin
estimatesaccountedforonaprospectivebasis.
Thegainorlossarisingonthedisposalorretirementofanitemofproperty,plantandequipmentisdeterminedasthe
differencebetweenthesalesproceedsandthecarryingamountoftheassetandisrecognizedintheConsolidated
StatementofProfitorLoss.
Intangible Assets
Goodwill
Goodwillrepresentstheexcessofthecostsofanacquisitionoverthefairvalueoftheamountsassignedtoassets
acquiredandliabilitiesincurredorassumedoftheacquiredsubsidiaryatthedateofacquisition.Goodwillonacquisition
ofsubsidiariesisallocatedtoCGUsforthepurposeofimpairmenttesting.TheallocationismadetothoseCGUsthat
areexpectedtobenefitfromthebusinesscombinationinwhichthegoodwillarose.Goodwillistestedforimpairment
annuallyattheendofthethirdquarterandwhenevereventsorchangesincircumstancesindicatethatthecarrying
amountofthegoodwillmaynotberecoverable.IftheRecoverableAmountoftheCGUislessthanthecarryingamount
oftheunit,theimpairmentlossisallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheunitand
thentotheotherassetsoftheunitpro-rataonthebasisofthecarryingamountofeachassetintheunit.Animpairment
lossrecognizedforgoodwillisnotreversedinasubsequentperiod.Goodwillisstatedatcostlessaccumulated
impairmentlosses.
Ondisposalofasubsidiary,theattributableamountofgoodwillisincludedinthedeterminationoftheprofitorlosson
disposal.
OtherIntangibleAssets
Otherintangibleassetsincludeinternally-generatedintangibleassets,brands,intellectualproperty,developed
technology,customerrelationships,in-processR&Dandotherintangibleassets.
69
Internally-generatedIntangibleAssetsDevelopmentExpenditures
Expendituresonresearchactivitiesarerecognizedascostsintheperiodinwhichtheyincur.IFRSrequirescapitalization
ofdevelopmentexpendituresprovidedif,andonlyif,certaincriteriacanbedemonstrated.
Aninternally-generatedintangibleassetarisingfromourdevelopmentisrecognizedonlyifwecandemonstrateallofthe
followingconditions:
Thetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale;
Theintentiontocompletetheintangibleassetanduseorsellit;
Theabilitytouseorselltheintangibleasset;
Theprobabilitythattheassetcreatedwillgeneratefutureeconomicbenefits;
Theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseorsellthe
intangibleasset;and
Theabilitytomeasurereliablytheexpenditureattributabletotheintangibleassetduringitsdevelopment.
Forcertaindevelopmentprograms,itwasnotpossibletoseparatedevelopmentactivitiesfromresearchactivities
(approximatelyEUR25.1millionandEUR19.6millionfor2013and2012,respectively).Consequently,wearenotable
toreliablydeterminetheamountofdevelopmentexpendituresincurredandthereforenoamountswerecapitalizedfor
theseprograms.
Internally-generatedintangibleassetsareamortizedonastraight-linebasisovertheirestimatedusefullives,ranging
fromonetofiveyears.Wherenointernally-generatedintangibleassetcanberecognized,developmentexpenditureis
chargedtotheConsolidatedStatementofProfitorLossintheperiodinwhichitisincurred.
Theestimatedusefullivesandamortizationmethodarereviewedateachyear-end,withtheeffectofanychangesin
estimateaccountedforonaprospectivebasis.
Brands,IntellectualProperty,DevelopedTechnology,CustomerRelationshipsandOtherIntangibleAssets
Brands,intellectualproperty,developedtechnology,customerrelationshipsandotherintangibleassetsarestatedat
costlessaccumulatedamortizationandanyaccumulatedimpairmentlosses.Amortizationischargedonastraight-line
basisovertheirestimatedusefullives.Theestimatedusefullifeandamortizationmethodarereviewedattheendof
eachannualreportingperiod,withtheeffectofanychangesinestimatebeingaccountedforonaprospectivebasis.
In-processResearchandDevelopment
In-processR&Drelatetothefairvalueofthetechnologythatwasindevelopmentatthetimeofanacquisition.InprocessR&Dareconsideredtobenotyetreadyforuseandarethereforenotamortized.Atinceptionofamortization,
theamountofin-processR&Dwillbereclassifiedtodevelopedtechnology.
ThefollowingtablepresentstheestimatedusefullivesofASMLsotherintangibleassets:
Category
Estimated useful life
Brands
Intellectualproperty
Developedtechnology
Customerrelationships
Other
20years
1-5years
3-10years
6-15years
8-18years
2-6years
Impairment of Tangible and Intangible Assets Excluding Goodwill

AteachConsolidatedStatementofFinancialPositiondate,wereviewthecarryingamountsofourtangibleand
intangibleassets(otherthangoodwill)todeterminewhetherthereisanyindicationthatthoseassetshavesufferedan
impairmentloss.Ifanysuchindicationexists,theRecoverableAmountoftheassetisestimatedinordertodetermine
theextentoftheimpairmentloss(ifany).WhereitisnotpossibletoestimatetheRecoverableAmountofanindividual
asset,weestimatetheRecoverableAmountoftheCGUtowhichtheassetbelongs.Whereareasonableandconsistent
basisofallocationcanbeidentified,corporateassetsarealsoallocatedtoindividualCGU's,orotherwisetheyare
allocatedtothesmallestgroupofCGU'sforwhichareasonableandconsistentallocationbasiscanbeidentified.
70
Otherintangibleassetsnotyetavailableforusearetestedforimpairmentannually,andwheneverthereisanindication
thattheassetmaybeimpaired.
IftheRecoverableAmountofanasset(orCGU)isestimatedtobelessthanitscarryingamount,thecarryingamount
oftheasset(orCGU)isreducedtoitsRecoverableAmount.Animpairmentlossisrecognizedimmediatelyinthe
ConsolidatedStatementofProfitorLoss,unlesstherelevantassetiscarriedatarevaluedamount,inwhichcasethe
impairmentlossistreatedasarevaluationdecrease.
Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(orCGU)isincreasedtotherevised
estimateofitsRecoverableAmount,butsothattheincreasedcarryingamountdoesnotexceedthecarryingamount
thatwouldhavebeendeterminedhadnoimpairmentlossbeenrecognizedfortheasset(orCGU)inprioryears.A
reversalofanimpairmentlossisrecognizedimmediatelyintheConsolidatedStatementofProfitorLoss,unless
therelevantassetiscarriedatarevaluedamount,inwhichcasethereversaloftheimpairmentlossistreatedasa
revaluationincrease.
Financial Assets
Financialassetsareclassifiedas"Financialassetsatfairvaluethroughprofitorloss",AFSor"Loansandreceivables".
Theclassificationdependsonthenatureandpurposeofthefinancialassetsandisdeterminedatthetimeofinitial
recognition.
FinancialAssetsatFairValueThroughProfitorLoss
Financialassetsareclassifiedatfairvaluethroughprofitorlosswhenthefinancialassetisdesignatedatfairvalue
throughprofitorloss.Assetsinthiscategoryarecategorizedascurrentassets.
Available-forSaleFinancialAssets
AFSfinancialassetsarenon-derivativesthatareeitherdesignatedasAFSorarenotclassifiedas(a)loansand
receivables,(b)held-to-maturityinvestmentsor(c)financialassetsatfairvaluethroughprofitandloss.OurAFSfinancial
assetscompriseshort-terminvestments,whichconsistofDutchTreasuryCertificatesanddepositswiththeDutch
government.Ourshort-terminvestmentsarestatedatfairvalue.Fairvalueofourshort-terminvestmentsisdetermined
inthemannerdescribedinNote5.
LoansandReceivables
Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinan
activemarket.Theyareincludedincurrentassets,exceptformaturitiesgreaterthan12monthsaftertheConsolidated
StatementofFinancialPositiondate.Theseareclassifiedasnon-currentassets.Ourloansandreceivablescomprise
ofaccountsreceivable,financereceivables,cashandcashequivalents(excludinginvestmentsinmoneymarketfunds,
whichareclassifiedasfinancialassetsatfairvaluethroughprofitandloss)andothernon-currentandcurrentassetsin
theConsolidatedStatementofFinancialPosition.
Loansandreceivablesareinitiallymeasuredatfairvalueandsubsequentlyatamortizedcostusingtheeffectiveinterest
ratemethod.
WeassessateachConsolidatedStatementofFinancialPositiondatewhetherthereisobjectiveevidencethatafinancial
assetoragroupoffinancialassetsisimpaired.
Impairment of Financial Assets
Financialassets,otherthanthoseatfairvaluethroughprofitorloss,areassessedforindicatorsofimpairmentateach
ConsolidatedStatementofFinancialPositiondate.Financialassetsareimpairedwherethereisobjectiveevidencethat,
asaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionofthefinancialasset,theestimatedfuture
cashflowsoftheinvestmenthavebeenimpacted.
Financial Liabilities and Equity Instruments Issued by ASML
FinancialliabilitiesandequityinstrumentsissuedbyASMLareclassifiedaccordingtothesubstanceofthecontractual
arrangementsenteredintoandthedefinitionsofafinancialliabilityandanequityinstrument.
Financialliabilitiesareeitherclassifiedasfinancialliabilitiesatfairvaluethroughprofitorlossorotherfinancial
liabilities.AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofASMLafterdeducting
allofitsliabilities.EquityinstrumentsissuedbyASMLarerecordedatfairvalue,netofdirectissuecosts.
71
Financialliabilitiesatfairvaluethroughprofitorlossarestatedatfairvaluewithanyresultantgainorlossrecognizedin
theConsolidatedStatementofProfitorLoss.
Otherfinancialliabilities(includingloans,borrowingsandtradeandotherpayables)aresubsequentlymeasuredat
amortizedcostusingtheeffectiveinterestratemethod.
Derivative Financial Instruments and Hedging Activities
Derivativefinancialinstrumentsareinitiallyrecognizedatfairvalueonthedateaderivativecontractisenteredinto
andaresubsequentlyremeasuredattheirfairvalue.Themethodofrecognizingtheresultinggainorlossdependson
whetherthederivativefinancialinstrumentsdesignatedasahedginginstrument,andifso,thenatureoftheitembeing
hedged.Wedesignatecertainderivativefinancialinstrumentsaseither:
Ahedgeoftheexposuretochangesinthefairvalueofarecognizedassetorliability,orofanunrecognizedfirm
commitment,thatareattributabletoaparticularrisk(fairvaluehedge);or
Ahedgeoftheexposureofvariabilityinthecashflowsofarecognizedassetorliability,ofaforecastedtransaction,
thatisattributabletoaparticularrisk(cashflowhedge).
Wedocumentattheinceptionofthetransactiontherelationshipbetweenhedginginstrumentsandhedgeditems,as
wellasourriskmanagementobjectivesandstrategyforundertakingvarioushedgingtransactions.Wealsodocument
ourassessment,bothathedgeinceptionandonanongoingbasis,ofwhetherderivativefinancialinstrumentsthatare
usedinhedgingtransactionsarehighlyeffectiveinoffsettingchangesinfairvaluesorcashflowsofhedgeditems.
ThefairvaluesofvariousderivativefinancialinstrumentsusedforhedgingpurposesaredisclosedinNote5,Note6,
Note12andNote13.MovementsinthehedgingreservewithinequityareshowninNote19.Thefairvaluepartofa
derivativefinancialinstrumentthathasaremainingtermoflessorequalto12monthsisclassifiedascurrentassetor
liability.Whenthefairvaluepartofaderivativefinancialinstrumenthasatermofmorethan12monthsitisclassifiedas
non-current.
FairValueHedge
Changesinthefairvalueofaderivativefinancialinstrumentthatisdesignatedandqualifiesasafairvaluehedge,
alongwiththegainorlossonthehedgedassetorliabilitythatisattributabletothehedgedrisk,arerecordedinthe
ConsolidatedStatementofProfitorLoss.Wedesignateforeigncurrencyhedginginstrumentsasahedgeofthefair
valueofarecognizedassetorliabilityinnon-functionalcurrencies.
Hedgeaccountingisdiscontinuedwhenwerevokethehedgingrelationship,thehedginginstrumentexpiresorissold,
terminatedorexercised,ornolongerqualifiesforhedgeaccounting.Theadjustmenttothecarryingamountofthe
hedgeditemarisingfromthehedgedriskisamortizedtotheConsolidatedStatementofProfitorLossfromthatdate.
Interestrateswapsthatarebeingusedtohedgethefairvalueoffixedloancouponspayablearedesignatedasfair
valuehedges.Thechangeinfairvalueisintendedtooffsetthechangeinthefairvalueoftheunderlyingfixedloan
coupons,whichisrecordedaccordingly.Thegainorlossrelatingtotheineffectiveportionofinterestrateswaps
hedgingfixedloancouponspayableisrecognizedintheConsolidatedStatementofProfitorLossinfinancecostsor
financeincome.
CashFlowHedge
Theeffectiveportionofchangesinthefairvalueofaderivativethatisdesignatedandqualifiesasacashflowhedge
isrecognizedinOCIandaccumulatedundertheheadingofthehedgingreserve,inequity,untiltheunderlyinghedged
transactionisrecognizedintheConsolidatedStatementofProfitorLoss.However,whentheforecastedtransactionthat
ishedgedresultsintherecognitionofanon-financialassetoranon-financialliability,thegainsandlossespreviously
deferredinequityaretransferredfromequityandincludedintheinitialmeasurementofthecostoftheassetorliability.
Hedgeaccountingisdiscontinuedwhenwerevokethehedgingrelationship,thehedginginstrumentexpiresoris
sold,terminatedorexercised,ornolongerqualifiesforhedgeaccounting.AnygainorlossrecognizedinOCIand
accumulatedinequityatthattimeremainsinequityandisrecognizedwhentheforecastedtransactionisultimately
recognizedintheConsolidatedStatementofProfitorLoss.Whenaforecastedtransactionisnolongerexpectedto
occur,thecumulativegainorlossthatwasdeferredinequityisrecognizedimmediatelyintheConsolidatedStatement
ofProfitorLoss.
72
Foreigncurrencyhedginginstrumentsthatarebeingusedtohedgecashflowsrelatingtofuturesalesorpurchase
transactionsinnon-functionalcurrenciesaredesignatedascashflowhedges.Thegainorlossrelatingtotheineffective
portionoftheforeigncurrencyhedginginstrumentsisrecognizedintheConsolidatedStatementofProfitorLossinnet
salesorcostofsales.
Interestrateswapsthatarebeingusedtohedgechangesinthevariabilityoffutureinterestpaymentsaredesignated
ascashflowhedges.Thechangeinfairvalueisintendedtooffsetthechangeinthefairvalueoftheunderlying
assets,whichisrecordedaccordinglyinequityashedgingreserve.Themaximumlengthoftimeofcashflowhedges
isthetimeelapsedfromthemomenttheexposureisgenerateduntiltheactualsettlement.Thegainorlossrelating
totheineffectiveportionofinterestrateswapshedgingthevariabilityoffutureinterestreceiptsisrecognizedinthe
ConsolidatedStatementofProfitorLossinfinanceincomeorfinancecosts.
Inventories
Inventoriesarestatedatthelowerofcost(first-in-first-outmethod)ornetrealizablevalue.Thecostsofinventories
compriseofnetpricespaidformaterialspurchased,chargesforfreightandcustomsduties,productionlaborcostand
factoryoverhead.Netrealizablevaluerepresentstheestimatedsellingpricelessallestimatedcostsofcompletionand
coststobeincurredinmarketing,sellinganddistribution.
Inventoryprovisionsarerecognizedforslow-moving,obsoleteorunsellableinventory.Impairmentlossesforinventories
aredeterminedbasedontheexpecteddemandwhichisderivedfromthesalesforecastsaswellastheexpected
marketvalueoftheinventory.Anewassessmentofnetrealizablevalueismadeineachsubsequentperiod.Whenthe
circumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistorwhenthereisclear
evidenceofanincreaseinnetrealizablevaluebecauseofchangedeconomiccircumstances,theamountofthewritedownisreversed.
Accounts Receivable
Accountsreceivablearemeasuredatinitialrecognitionatfairvalueandaresubsequentlymeasuredatamortized
costusingtheeffectiveinterestratemethod,lessallowancefordoubtfuldebts.Anallowancefordoubtfuldebtsof
accountsreceivableisestablishedwhenthereisobjectiveevidencethatwewillnotbeabletocollectallamountsdue
accordingtooriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtor
willenterbankruptcyorfinancialrestructuringanddefaultordelinquencyinpaymentsareconsideredindicatorsthatthe
accountsreceivableareimpaired.Theallowancerecognizedismeasuredasthedifferencebetweentheassetscarrying
amountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitial
recognition.
Short-term Investments
Investmentswithremainingmaturitieslongerthanthreemonthsandlessthanoneyearatthedateofacquisitionare
presentedasshort-terminvestments.Theshort-terminvestmentsareclassifiedasAFSfinancialassetsandarestated
atfairvalue.Gainsandlosses,otherthanimpairments,interestincomeandforeignexchangeresults,arerecognizedin
OCIuntiltheShort-terminvestmentsarederecognized.Uponderecognition,thecumulativegainorlossrecognizedin
OCI,isrecognizedintheConsolidatedStatementofProfitorLoss.
Cash and Cash Equivalents
Cashandcashequivalentsconsistprimarilyofhighlyliquidinvestments,suchasbankdeposits,moneymarketfunds
andinterest-bearingbankaccountswithinsignificantinterestrateriskandremainingmaturitiesofthreemonthsorless
atthedateofacquisition.
Equity
Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissuanceofnewsharesoroptions
areshowninequityasadeduction,netofincometaxes,fromtheproceeds.
Treasurysharesaredeductedfromequityfortheconsiderationpaid,includinganydirectlyattributableincrementalcosts
(netofincometaxes),untilthesharesarecancelledorreissued.Wheresuchsharesaresubsequentlyreissued,any
considerationreceived,netofanydirectlyattributableincrementaltransactioncostsandrelatedincometaxeffectsis
includedinequity.
73
Accounts Payable
Accountspayableareinitiallymeasuredatfairvalue,andaresubsequentlymeasuredatamortizedcost,usingthe
effectiveinterestratemethod.
Revenue Recognition
Ingeneral,werecognizetherevenuefromthesaleofasystemuponshipmentandtherevenuefromtheinstallationof
asystemuponcompletionofthatinstallationatthecustomersite.Eachsystemundergoes,priortoshipment,aFATin
ASMLscleanroomfacilities,effectivelyreplicatingtheoperatingconditionsthatwillbepresentonthecustomer'ssite,
inordertoverifywhetherthesystemwillmeetitsstandardspecificationsandanyadditionaltechnicalandperformance
criteriaagreedwiththecustomer.Asystemisshipped,andrevenueisrecognized,onlyafterallspecificationsare
metandcustomersign-offisreceivedorwaived.Incasenotallspecificationsaremetandtheremainingperformance
obligationisnotessentialtothefunctionalityofthesystembutissubstantiveratherthaninconsequentialorperfunctory,
aportionofthesalespriceisdeferred.Althougheachsystem'sperformanceisre-testeduponinstallationatthe
customer'ssite,wehaveneverfailedtosuccessfullycompleteinstallationofasystematacustomerspremises.
Inconnectionwiththeintroductionofnewtechnology,suchasoursecond-andthird-generationEUVsystems
(NXE:3100andNXE:3300B,respectively),weinitiallydeferrevenuerecognitionuntilcompletionofinstallationand
acceptanceofthenewtechnologybasedsystematcustomerpremises.Asoursystemsarebasedlargelyontwo
productplatformsthatpermitincremental,modularupgrades,theintroductionofgenuinelynewtechnologyoccurs
infrequently,andinthepast15years,hasoccurredononlytwooccasions:2010(EUV)and1999(TWINSCAN).
Wehavenosignificantrepurchasecommitmentsinitsgeneralsalestermsandconditions.Fromtimetotimewe
repurchasesystemsthatwehavemanufacturedandsoldand,followingrefurbishment,resellthosesystemstoother
customers.Thisrepurchasedecisionisdrivenbymarketdemandexpressedbyothercustomersandnotbyexplicitor
implicitcontractualarrangementsrelatingtotheinitialsale.Weconsiderreasonableoffersfromanyvendor,including
customers,torepurchaseusedsystemssothatwecanrefurbish,resell,andinstallthesesystemsaspartofour
normalbusinessoperations.Oncerepurchased,therepurchasepriceoftheusedsystemisrecordedinwork-inprocessinventoryduringtheperioditisbeingrefurbished,followingwhichtherefurbishedsystemisreflectedin
finishedproductsinventoryuntilitissoldtothecustomer.AsofDecember31,2013and2012ASMLhadnorepurchase
commitments.
Themainportionofourrevenueisderivedfromcontractualarrangementswithourcustomersthathavemultiple
deliverables,suchasinstallationandtrainingservices,prepaidservicecontractsandprepaidextendedopticwarranty
contracts.Therevenuerelatingtotheundeliveredelementsofthearrangementsisdeferreduntildeliveryofthese
elements.Revenuefrominstallationandtrainingservicesisrecognizedwhentheservicesarecompleted.Revenuefrom
prepaidservicecontractsandprepaidextendedandenhanced(optic)warrantycontractsisrecognizedoverthetermof
thecontract.
Weoffercustomersdiscountsinthenormalcourseofsalesnegotiations.Thesediscountsaredirectlydeductedfromthe
grosssalespriceatthemomentofrevenuerecognition.Inaddition,weoffervolumediscountstocustomers.Insome
instancesthesevolumediscountscanbeusedtopurchasefieldoptions(systemenhancements).Therelatedamount
isrecordedasareductioninrevenueattimeofshipment.Fromtimetotime,weofferfreeordiscountedproductsor
services(awardcredits)toourcustomersaspartofavolumepurchaseagreement.Thesalestransactionthatgivesrise
totheseawardcreditsisaccountedforasamultipleelementrevenuetransactionastheagreementsinvolvethedelivery
ofmultipleproducts.Theconsiderationreceivedfromthesalestransactionisallocatedbetweentheawardcreditsand
theotherelementsofthesalestransaction.Theconsiderationallocatedtotheawardcreditsisrecognizedasdeferred
revenueuntilawardcreditsaredeliveredtothecustomer.Theamountallocabletoadelivereditemislimitedtothe
amountthatisnotcontingentuponthedeliveryofadditionalitemsormeetingotherspecifiedperformanceconditions
(thenon-contingentamount).
74
Revenuesarerecognizedexcludingthetaxesleviedonrevenues(netbasis).
Intheeventthatanarrangementwithacustomerbecomesonerous,werecognizealiabilityfortheamountthatthecost
ofsettlingthearrangementexceedstheamountofthecontractprice.Obligationsresultingfromthearrangementcan
eitherbeconstructiveorcontractual.Whenwesatisfytheonerousarrangement,wederecognizetherelatedliability.
LeaseArrangements
Ourleaseclassificationsforsystemsaredeterminedonacontract-bycontractbasis,takingthesubstanceanddetailsof
eachleasecontractintoconsideration.
Finance Leases
Leaseswheresubstantiallyalltherisksandrewardsincidentaltoownershipofanassetaretransferredtothelessee
areclassifiedasfinanceleasearrangements.Ifwehaveofferedthecustomerafinanceleasearrangement,revenueis
recognizedatcommencementoftheleaseterm.Thedifferencebetweenthegrossfinancereceivableandthepresent
valueoftheminimumleasepaymentsisinitiallyrecognizedasunearnedinterestandpresentedasadeductiontothe
grossfinancereceivable.InterestincomeisrecognizedintheConsolidatedStatementofProfitorLossoverthetermof
theleasecontractusingtheeffectiveinterestmethod.
Operating Leases
Leaseswherebyalltherisksandrewardsincidentaltoownershiparenottransferredtothelesseeareclassifiedas
operatingleasearrangements.Ifwehaveofferedthecustomeranoperatingleasearrangement,thesystemisincluded
inproperty,plantandequipmentuponcommencementofthelease.Revenuefromoperatingleasearrangementsis
recognizedintheConsolidatedStatementofProfitorLossonastraight-linebasisoverthetermoftheleasecontract.
Warranty
Weprovidestandardwarrantycoverageonoursystemsfor12monthsandoncertainopticpartsfor60months,
providinglaborandpartsnecessarytorepairsystemsandopticpartsduringthewarrantyperiod.Theestimated
warrantycostsareaccountedforbyaccruingthesecostsforeachsystemuponrecognitionofthesystemsale.The
estimatedwarrantycostsarebasedonhistoricalproductperformanceandfieldexpenses.Baseduponhistoricalservice
records,wecalculatethechargeofaverageservicehoursandpartspersystemtodeterminetheestimatedwarranty
charge.Onasemi-annualbasis,weassess,andupdateifnecessary,ouraccountingestimatesusedtocalculatethe
standardwarrantyprovisionbasedonthelatestactualhistoricalwarrantycostsandexpectedfuturewarrantycosts.The
extendedandenhanced(optic)warrantyonoursystemsandcertainopticalpartsisaccountedforasaseparateelement
ofmultipleelementrevenuerecognitiontransactions.
Customer Co-Investment Program
InconnectionwiththeCCIP,weenteredintoinvestmentagreements,ShareholdersAgreementsandNREFunding
AgreementsandcommercialagreementswithParticipatingCustomers.
Theinvestmentagreements,ShareholderAgreements,NREFundingAgreementsandcommercialagreementare
accountedforasonetransactionwithseperatelyidentifiablecomponents.Thefollowingtwoseparatecomponents
areidentified:(1)theshareissuance(governedbytheinvestmentagreementandtheShareholderAgreement)and(2)
theNREfundingandcommercialdiscountsandcredits(governedbytheNREFundingAgreementandthecommercial
agreementwithIntel).
ThesharesissuedtotheParticipatingCustomersarerecordedatfairvaluebasedonquotedshareprices(EUR3,977.4
million)withtheremainingaggregatearrangementconsiderationallocatedtotheNREfundingandcommercialdiscounts
andcredits.Thedifferencebetweenthefairvalueofthesharesandthesubscriptionpriceoftheshares(EUR39.91)
wasrecordedasadeductionfromequityuponissuanceoftheshares(EUR123.4million).Equityisincreasedtothefair
valueofthesharesastheportionoftheNREfundingallocabletothesharesisreceivedovertheNREfundingperiod
(2013-2017).TheamountsaredeemedreceivablesfromtheParticipatingCustomersintheircapacityasshareholdersof
ASML.
ArelatedpartyrelationshipexistsbetweenASMLandIntelasaresultoftheequityinvestmentmadebyIntelaspartof
theCCIP.Basedonthecommercialdiscountsandcredits(governedbytheCommercialAgreementwithIntel)andthe
significantrelatedpartyrelationship,allNREfundingwillbedeferredandrecognizedintheConsolidatedStatementof
ProfitorLossonlywhenthecommercialdiscountsandcreditsareearned.
InadditionseealsootherincomeforfurtherexplanationontheaccountingpolicieswithrespecttoCCIP.
75
Accounting for Shipping and Handling Fees and Costs

Webillourcustomerfor,andrecognizeasrevenue,anychargesforshippingandhandlingcosts.Therelatedcostsare
recognizedascostofsales.
Cost of Sales
Costofsystemsalescomprisedirectproductcostssuchasmaterials,labor,costofwarranty,depreciation,
amortization,shippingandhandlingcostsandrelatedoverheadcosts.ASMLaccruesfortheestimatedcostofthe
warrantyonitssystems,whichincludesthecostoflaborandpartsnecessarytorepairsystemsduringthewarranty
period.Theamountsrecordedinthewarrantyaccrualareestimatedbasedonactualhistoricalexpensesincurredand
onestimatedprobablefutureexpensesrelatedtocurrentsales.Actualwarrantycostsarechargedagainsttheaccrued
warrantyreserve.
Costsofservicesalescomprisedirectservicecostssuchasmaterials,labor,depreciationandoverheadcosts.
Costoffieldoptionsalescomprisedirectproductcostssuchasmaterials,labor,depreciation,costofwarranty,
shippingandhandlingcostsandrelatedoverheadcosts.
Other Income
TheportionoftheNREfundingfromTSMCandSamsung,notallocabletothesharesissuedtotheParticipating
CustomersundertheCCIP,isrecognizedinOtherincomewhentheR&Dcostsrelatingtothedevelopmentof450mm
lithographyequipmentandEUVplatformsarerecognizedovertheNREfundingperiod(2013-2017).
Government Grants
GovernmentgrantsarenotrecognizeduntilthereisreasonableassurancethatASMLwillcomplywiththeconditions
attachingtothemandthatthegrantswillbereceived.
GovernmentgrantswhoseprimaryconditionisthatASMLshouldpurchase,constructorotherwiseacquirenon-current
assetsarerecognizedasdeferredincomeintheConsolidatedStatementofFinancialPositionandtransferredtothe
ConsolidatedStatementofProfitorLossonasystematicandrationalbasisovertheusefullivesoftherelatedassets.
Othergovernmentgrantsarerecognizedasincomeovertheperiodsnecessarytomatchthemwiththecostsforwhich
theyareintendedtocompensate,onasystematicbasis.Governmentgrantsthatarereceivableascompensation
forexpensesorlossesalreadyincurred,orforthepurposeofgivingimmediatefinancialsupporttoASMLwithno
futurerelatedcostsarerecognizedintheConsolidatedStatementofProfitorLossintheperiodinwhichtheybecome
receivable.
Borrowing Costs
Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,whichareassets
thatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,areaddedtothecostof
thoseassets,untilsuchtimethattheassetsaresubstantiallyreadyfortheirintendeduseorsale.
Income Taxes
Incometaxesrepresentthesumofthecurrenttaxpositionanddeferredtax.
Thecurrenttaxpositionisbasedontaxablebasefortheyear.Taxablebasediffersfromresultsasreportedinthe
ConsolidatedStatementofProfitorLossbecauseitexcludesitemsofincomeorchargesthataretaxableordeductible
inpriororlateryears,forexampletimingdifferencesbetweentaxablebaseandfinancialresults,anditfurther
excludesitemsthatarenevertaxableordeductible,forexamplepermanentdifferencesbetweentaxablebaseand
financialresults.Ourtaxpositioniscalculatedusingtaxratesthathavebeenenactedorsubstantivelyenactedatthe
ConsolidatedStatementofFinancialPositiondate.
DeferredtaxisrecognizedondifferencesbetweenthecarryingamountsofassetsandliabilitiesintheConsolidated
FinancialStatementsandthecorrespondingtaxbaseusedinthecomputationoftaxableprofit.Deferredtaxliabilities
arerecognizedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognizedtotheextentthatitis
probablethattaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilized.Such
assetsandliabilitiesarenotrecognizedifthetemporarydifferencearisesfromgoodwillorfromtheinitialrecognition
(otherthaninabusinesscombination)ofotherassetsandliabilitiesinatransactionthataffectsneitherthetaxableprofit
northeaccountingprofit.
76
ThecarryingamountofdeferredtaxassetsisreviewedateachConsolidatedStatementofFinancialPositiondateand
reducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitswillbeavailabletoallowallorpartofthe
assettoberecovered.
Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodinwhichthe
liabilityissettledortheassetrealized,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantively
enactedbytheConsolidatedStatementofFinancialPositiondate.Themeasurementofdeferredtaxliabilitiesand
assetsreflectsthetaxconsequencesthatwouldfollowfromthemannerinwhichweexpect,atthereportingdate,to
recoverorsettlethecarryingamountofourassetsandliabilities.
DeferredtaxassetsandliabilitiesareoffsetontheConsolidatedStatementofFinancialPositionwhenthereisalegally
enforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandwhentheyrelatetoincometaxeslevied
bythesametaxationauthorityandweintendtosettleourcurrenttaxassetsandliabilitiesonanetbasis.
Werecognizealiabilityforuncertaintaxpositionswhenitisprobablethatanoutflowofeconomicresourceswilloccur.
Measurementoftheliabilityforuncertaintaxpositionsisbasedonmanagementsbestestimateoftheamountoftax
benefitthatwillbelost.
TheConsolidatedStatementofProfitorLosseffectofinterestandpenaltiesrelatingtoliabilitiesforuncertaintax
positionsarepresentedbasedontheirnature,aspartofinterestchargesandaspartofSG&Acosts,respectively.
CurrentanddeferredtaxarerecognizedasanexpenseorincomeintheConsolidatedStatementofProfitorLoss,
exceptwhentheyrelatetoitemscreditedordebiteddirectlytoOCIordirectlytoequity,inwhichcasethetaxisalso
recognizeddirectlyinequity,orwheretheyarisefromtheinitialaccountingforabusinesscombination.Inthecaseof
abusinesscombination,thetaxeffectistakenintoaccountincalculatinggoodwillorindeterminingtheexcessofour
interestinthenetfairvalueoftheacquiredentitysidentifiableassetsandliabilitiesincurredorassumedoverthecostof
thebusinesscombination.
Contingencies and Litigation
Wearepartytovariouslegalproceedingsgenerallyincidentaltoourbusiness,asdisclosedinNote26.Inconnection
withtheseproceedingsandclaims,ourmanagementevaluated,basedontherelevantfactsandlegalprinciples,the
likelihoodofanunfavorableoutcomeandwhethertheamountofthelosscouldbereasonablyestimated.Inmostcases,
managementdeterminedthateitheralosswasnotprobableorwasnotreasonablyestimable.Significantsubjective
judgmentswererequiredintheseevaluations,includingjudgmentsregardingthevalidityofassertedclaimsandthe
likelyoutcomeoflegalandadministrativeproceedings.Theoutcomeoftheseproceedings,however,issubjecttoa
numberoffactorsbeyondourcontrol,mostnotablytheuncertaintyassociatedwithpredictingdecisionsbycourts
andadministrativeagencies.Inaddition,estimatesofthepotentialcostsassociatedwithlegalandadministrative
proceedingsfrequentlycannotbesubjectedtoanysensitivityanalysis,asdamageestimatesorsettlementoffersby
claimantsmaybearlittleornorelationtotheeventualoutcome.Finally,inanyparticularproceeding,wemayagreeto
settleortoterminateaclaimorproceedinginwhichwebelievethatitwouldultimatelyprevailwherewebelievethat
doingso,whentakentogetherwithotherrelevantcommercialconsiderations,ismorecost-effectivethanengaginginan
expensiveandprotractedlitigation,theoutcomeofwhichisuncertain.
WeaccruelegalcostsrelatedtolitigationinourConsolidatedStatementofProfitorLossatthetimewhentherelated
legalservicesareactuallyprovidedtous.
Share-based Payments
Thecostofemployeeservicesreceived(compensationexpenses)inexchangeforawardsofequityinstrumentsare
recognizedbaseduponthegrant-datefairvalueofstockoptionsandshares.Thegrant-datefairvalueofstockoptions
isestimatedusingaBlack-Scholesoptionvaluationmodel.ThisBlack-Scholesmodelrequirestheuseofassumptions,
includingexpectedsharepricevolatility,theestimatedlifeofeachawardandtheestimateddividendyield.Theriskfreeinterestrateusedinthemodelisdetermined,basedonanindexpopulatedwitheuro-denominatedEuropean
governmentagencybondswithAAAratings,andwithalifeequaltotheexpectedlifeoftheequity-settledshare-based
payments.Thegrant-datefairvalueofsharesisdeterminedbasedontheclosingpriceofourordinarysharesonNYSE
EuronextinAmsterdamonthegrant-date.
77
Thegrant-datefairvalueoftheequity-settledshare-basedpaymentsisexpensedonastraight-linebasisoverthe
vestingperiod,basedonourestimateofequityinstrumentsthatwilleventuallyvest.AteachConsolidatedStatement
ofFinancialPositiondate,wereviseourestimateofthenumberofequityinstrumentsexpectedtovest.Theimpactof
therevisionoftheoriginalestimates,ifany,isrecognizedintheConsolidatedStatementofProfitorLossintheperiodin
whichtherevisionisdetermined,withacorrespondingadjustmenttoequity.
Ourcurrentshare-basedpaymentplansdonotprovideforcashsettlementofoptionsandstock.
Retirement Benefit Costs
Contributionstodefinedcontributionretirementbenefitplansarerecognizedasanexpensewhenemployeeshave
renderedserviceentitlingthemtothecontributions.Paymentsmadetostate-managedretirementbenefitschemes
aredealtwithaspaymentstodefinedcontributionplanswhereourobligationsundertheplansareequivalenttothose
arisinginadefinedcontributionretirementbenefitplan.ASMLaccountsforitsmulti-employerdefinedbenefitplanasif
itwereadefinedcontributionplanforthefollowingreasons:
ASMLisaffiliatedtoanindustrywidepensionfundandusesthepensionschemeincommonwithother
participatingcompanies;and
Undertheregulationsofthepensionplan,theonlyobligationtheseparticipatingcompanieshavetowardsthe
pensionfundistopaytheannualpremiumliability.Participatingcompaniesareundernoobligationwhatsoeverto
payoffanydeficitsthepensionplanmayincur.Norhavetheyanyclaimtoanypotentialsurpluses.
Consolidated Statement of Cash Flows
TheConsolidatedStatementofCashFlowshasbeenpreparedbasedontheindirectmethod.Cashflowsinforeign
currencieshavebeentranslatedataverageexchangerates.Exchangeratedifferenceoncashandcashequivalentsare
shownseparatelyintheConsolidatedStatementofCashFlows.Acquisitionsofsubsidiariesarepresentednetofcash
balancesacquired.
4. Business Combinations
OnMay30,2013,weconcludedtheacquisitionofCymerandobtainedcontrolthroughacquiring100percentof
theissuedsharecapitalofCymer,foraconsiderationofEUR3.1billion.Therearenocontingentconsideration
arrangements.
Priortotheacquisition,Cymerwasanindustryleaderindevelopingandservicinglithographylightsourcesusedby
chipmanufacturersworldwidetopatternadvancedsemiconductorchips.CymerhasproductionfacilitiesinSanDiego,
California,theUnitedStatesofAmericaandinPyongtaek-city,SouthKorea,Asia.
TheacquisitionofCymerwillsupportourstrategicobjectiveofdeliveringaneconomicallyviableEUVscannerto
semiconductormanufacturerswithinthetimelinerequiredbyourcustomers.Inaddition,thereareopportunitiesto
furtherenhanceCymersgrowingadvancedimmersionsystemsandrelatedinstalledbaseproductsbusiness.
TheamountsrecordedfortheacquisitionasdisclosedinourStatutoryInterimReportforthesixmonthsendedJune
30,2013wereprovisional.UnderIFRS3(R),adjustmentstoprovisionalfairvaluesandgoodwillcanbemadeinthe
periodsubsequenttothebusinesscombination.Theperiodduringwhichsuchanadjustmentispermittedislimited
to12monthsfromthedateofacquisition.Measurementperiodadjustmentshavebeenrecordedsubsequenttothe
preparationoftheStatutoryInterimReportforthesixmonthsendedJune30,2013whichresultedinanincreaseofthe
purchaseconsiderationofEUR178.4million.Thisadjustmentrelatestoasettlementgainregardingpre-existingEUV
supplyarrangementsofEUR178.4millionasdisclosedbelow.Othermeasurementperiodadjustmentsresultedina
decreaseofthefairvalueofthenetidentifiableassetsacquiredandamountedtoEUR6.8million.AsperDecember31,
2013wefinalizedourpurchasepriceallocationoftheCymeracquisition.
78
Thefollowingtablesummarizesthemajorclassesofconsiderationtransferred,andtherecognizedamountsofthefair
valueoftheidentifiableassetsdistributedandthefairvalueoftheliabilitiesincurredorassumedattheacquisitiondate.
1
2
(in thousands)
Property,plantandequipment
Otherintangibleassets
Deferredtaxassets
Otherassets,currentandnon-current
Inventories
Currenttaxassets
Financereceivables
Accountsreceivable
May 30, 2013

1
EUR
124,308
751,542
97,565
29,418
301,279
37,289
611
121,395
40,055
84,129
Assets acquired
1,587,591
Long-termdebt,currentandnon-current
Accruedandotherliabilities,currentandnon-current
Accountspayable
609
297,977
90,900
151,412
Liabilities assumed
540,898
Total net identifiable assets
1,046,693
ConsiderationpaidincashforthetransactiononMay30,2013
2
Fairvalueofshares
Fairvalueofequityawardscashsettled
Fairvalueofunvestedequityawardstobeexchanged
Gainonsettlementofpre-existingrelationships
Consideration transferred
486,325
2,347,663
41,516
66,073
178,427
3,120,004
Goodwill on acquisition
2,073,311
AmountswereconvertedintoeuroattherateofUSD/EUR1.3043
Aspartoftheconsiderationtransferred,Cymershareswereconvertedintoarighttoreceive36,479,109ASMLordinaryshares.Theseshareswere
valuedat$83.94beingtheopeningpriceonNASDAQatMay30,2013.AsatDecember31,201314,533ASMLordinarysharesarestilltobeissued.
Priortotheacquisition,supplyandR&DarrangementsexistedbetweenCymerandASML.Thesepre-existing
relationshipswereeffectivelysettledasaresultoftheacquisition.WedeterminedthattheR&Darrangementaswellas
thesupplyarrangements(excludingEUV)wereatcurrentmarkettermsandthereforenogainorlosswasrecognized.
WedeterminedthattheEUVsupplyarrangementswerefavorabletoASMLandthereforeagainofEUR178.4million
wasrecognizedincostofsaleswithinourConsolidatedStatementofProfitorLoss.Thisgainwasrecognized
separatelyfromthebusinesscombinationasitisnotpartoftheassetsacquiredorliabilitiesassumed.Theapproachfor
quantifyingthefavorablecomponenttoASMLoftheEUVsupplyarrangementsisbasedontheassessmentoftheprices
forsuchlightsourcesiftheEUVsupplyarrangementswouldhavebeenrenegotiatedinMay2013.Thisapproachisin
linewith(andoffsets)theexpectedlosses(forwhichaliabilityisrecognizedofEUR171.2millionincludedincoststo
bepaid,seeNote23)toupgradethefirst11EUVsourcesinthefield,whichwasassumedbyASMLasaresultofthe
acquisitionofCymer.
ThemajorityofthegoodwillarisingontheacquisitionofCymerisattributabletothefactthatwebelievethat
theacquisitionwillhelpusachievingourstrategicobjectiveofdeliveringaneconomicallyviableEUVscannerto
semiconductormanufacturersassoonasreasonablypossible.WebelievethatcombiningCymer'sexpertiseinEUVlight
sourceswithourexpertiseinlithographysystemsdesignandintegrationwillreducetherisksrelatedtothesuccessful
developmentofandacceleratetheintroductionofEUVtechnology.Withouttheacquisition,wedonotbelievethat
CymerwouldhavesufficientresourcestocompletethedevelopmentoftheEUVlightsourceandasaresult,theonly
waytomaketheEUVlightsourcedevelopmentsuccessfulwithoutadditionaldelaywasthroughtheacquisitionof
Cymer.WebelievethattheacquisitionwillallowustomoreeffectivelypartitionresponsibilitiesbetweenCymer,its
suppliersanduswithrespecttoEUVlightsourcedevelopment,therebyreducingriskandincreasingdevelopment
speed.Also,synergiesareexpectedfromthecombination.AgoodwillamountofEUR1656.5millionhasbeenallocated
toourexistingCGUASMLexcludingCLS.TheremainingpartofthegoodwillofEUR416.8millionhasbeenallocatedto
CGUCLS.Noneofthegoodwillrecognizedisexpectedtobedeductibleforincometaxpurposes.
79
CymercontributedEUR178.7 milliontototalnetsalesandalossofEUR125.2milliontonetincome(includingthe
chargeofEUR85.5millionrelatedtothepurchasepriceallocationadjustments)fortheperiodbetweenthedateof
acquisitionandtheConsolidatedStatementofFinancialPositiondate.
In2013,weincurredEUR7.8milliontransactioncostsrelatingtotheacquisitionofCymer.Thesecostsareincludedin
SG&A.
ThefollowingunauditedproformasummarypresentsestimatedconsolidatedinformationofASMLasiftheCymer
acquisitionhadoccurredonJanuary1,2013.Theseamountshavebeencalculatedafterapplyingouraccounting
policiesandadjustingtheresultsofCymertoreflectthechargesandbenefitsassumingthefairvalueadjustmentshad
beenappliedfromJanuary1,2013withtheconsequentialtaxeffects.
Pro Forma Year ended December 31

(in millions)
Totalnetsales
Netincome
1
Unaudited
2013
EUR
5,362
1
1,186
ProformanetincomewasadjustedtoexcludeEUR25millionofacquisitionrelatedcostsin2013.
5. Fair Value Measurements

Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransaction
betweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementhierarchyprioritizestheinputsto
valuationtechniquesusedtomeasurefairvalueasfollows:
Level1:Valuationsbasedoninputssuchasquotedpricesforidenticalassetsorliabilitiesinactivemarketsthatthe
entityhastheabilitytoaccess.
Level2:Valuationsbasedoninputsotherthanlevel1inputssuchasquotedpricesforsimilarassetsorliabilities,
quotedpricesinmarketsthatarenotactive,orotherinputsthatareobservableorcanbecorroboratedbyobservable
dataforsubstantiallythefulltermoftheassetsorliabilities.
Level3:Valuationsbasedoninputsthataresupportedbylittleornomarketactivityandthataresignificanttothefair
valueoftheassetsorliabilities.
Thefairvaluehierarchygivesthehighestprioritytoquotedprices(unadjusted)inactivemarketsforidenticalassets
orliabilities(Level1)andthelowestprioritytounobservableinputs(Level3).Afinancialinstrumentsfairvalue
classificationisbasedonthelowestlevelofanyinputthatissignificantinthefairvaluemeasurementhierarchy.
Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis
Investmentsinmoneymarketfunds(aspartofourcashandcashequivalents)havefairvaluemeasurementswhichare
allbasedonquotedpricesforidenticalassetsorliabilities.
OurAFSfinancialinstrumentsconsistofDutchTreasuryCertificatesanddepositswiththeDutchgovernment.Dutch
TreasuryCertificatesaretradedinanactivemarketandthefairvalueisdeterminedbasedonquotedmarketpricesfor
identicalassetsorliabilities.Thefairvalueofdepositsisdeterminedwithreferencetoquotedmarketpricesforsimilar
assetsordiscountedcashflowanalysis.
Theprincipalmarketinwhichweexecuteourderivativecontractsistheinstitutionalmarketinanover-the-counter
environmentwithahighlevelofpricetransparency.Themarketparticipantsusuallyarelargecommercialbanks.The
valuationinputsforourderivativecontractsarebasedonquotedpricesandquotingpricingintervalsfrompublicdata
sources;theydonotinvolvemanagementjudgement.
Thevaluationtechniqueusedtodeterminethefairvalueofforwardforeignexchangecontracts(usedforhedging
purposes)approximatestheNPVtechniquewhichistheestimatedamountthatabankwouldreceiveorpaytoterminate
theforwardforeignexchangecontractsatthereportingdate,takingintoaccountcurrentinterestratesandcurrent
exchangerates.
Thevaluationtechniqueusedtodeterminethefairvalueofinterestrateswaps(usedforhedgingpurposes)istheNPV
technique,whichistheestimatedamountthatabankwouldreceiveorpaytoterminatetheswapagreementsatthe
reportingdate,takingintoaccountcurrentinterestrates,discountedataratethatreflectsthecreditriskofvarious
counterpartiesorourowncreditrisk.
80
OurEurobondsserveashedgeditemsinfairvaluehedgerelationshipsinwhichwehedgethevariabilityofchangesin
thefairvalueofourEurobondsduetochangesinmarketinterestrateswithinterestrateswaps.Thefairvaluechanges
oftheseinterestrateswapsarerecordedontheConsolidatedFinancialPositionunderderivativefinancialinstruments
(withinothercurrentassetsandothernon-currentassets)andthecarryingamountsoftheEurobondsareadjustedfor
thesefairvaluechangesonly.FortheactualaggregatecarryingamountandthefairvalueofourEurobonds,seeNote
20.
Thefollowingtablepresentsourfinancialassetsandfinancialliabilitiesthataremeasuredatfairvalueonarecurring
basis:
1
2
3
4
1
2
3
4
As of December 31, 2013

(in thousands)
Assets
1
2
Moneymarketfunds
3
Total
Level 1
EUR
Level 2
EUR
Level 3
EUR
Total
EUR
535,000
304,884
839,884
71,620
375,000
446,620
71,620
535,000
679,884
1,286,504
Liabilities
4
Long-termdebt
1
Total
1,017,501
11,652
1,029,153
1,017,501
11,652
1,029,153
Derivativefinancialinstrumentsconsistofforwardforeignexchangecontractsandinterestrateswaps.SeeNote6.
Moneymarketfundsarepartofourcashandcashequivalents.
Short-terminvestmentsconsistofDutchTreasuryCertificatesanddepositswiththeDutchgovernment.
Long-termdebtmainlyrelatestoourEurobonds(carryingamountasatDecember31,2013:EUR1,017.5million)andexcludesaccruedinterest.For
furtherdetailsseeNote20.

(in thousands)
Assets
1
2
Moneymarketfunds
3
Total
Level 1
EUR
Level 2
EUR
Level 3
EUR
Total
EUR
385,420
279,988
665,408
151,748
650,017
801,765
151,748
385,420
930,005
1,467,173
Liabilities
4
Longtermdebt
1
Total
756,502
10,893
767,395
756,502
10,893
767,395
Derivativefinancialinstrumentsconsistofforwardforeignexchangecontractsandinterestrateswaps.SeeNote6.
Moneymarketfundsarepartofourcashandcashequivalents.
Short-terminvestmentsconsistofDutchTreasuryCertificatesanddepositswiththeDutchgovernment.
Long-termdebtmainlyrelatestoourEurobonds(carryingamountasatDecember31,2012:EUR707.1million)andexcludesaccruedinterest.For
furtherdetailsseeNote20.
TherewerenotransfersbetweenlevelsduringtheyearsendedDecember31,2013andDecember31,2012.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In2013,werecognizedimpairmentchargesofEUR13.1million(2012:EUR3.2million)onourproperty,plantand
equipment,mainlyrelatingtobuildings(EUR3.6million)andmachineryandequipment(EUR8.0million).Valuation
oftheseassetsisclassifiedasLevel3inthefairvaluehierarchysincetheirfairvaluesweredeterminedbasedon
unobservableinputs.Theimpairmentchargeisdeterminedbasedonthedifferencebetweentheassetsvalueinuse
(beingEUR16.4million)andtheircarryingamount.Forfurtherinformation,seeNote9.
Wedidnotrecognizeanyimpairmentchargesforgoodwillandotherintangibleassetsduring2013.SeeNotes10and11
formoreinformation.ForfairvaluemeasurementsinrelationtotheacquisitionofCymer,werefertoNote4.
81
6. Financial Risk Management

Weareexposedtocertainfinancialriskssuchasmarketrisk(includingforeigncurrencyriskandinterestraterisk),
creditrisk,liquidityriskandcapitalrisk.Theoverallriskmanagementprogramfocusesontheunpredictabilityof
financialmarketsandseekstominimizepotentiallyadverseeffectsonourfinancialperformance.Weusederivative
financialinstrumentstohedgecertainriskexposures.Noneofourtransactionsareenteredintofortradingor
speculativepurposes.Webelievethatmarketinformationisthemostreliableandtransparentmeasureforourderivative
financialinstrumentsthataremeasuredatfairvalue.
Foreign Currency Risk Management
Oursalesarepredominatelydenominatedineuros.Exceptionsmayoccuronacustomerbycustomerbasis.Ourcost
ofsalesandothercostsaremainlydenominatedineuros,toacertainextentinU.S.dollarandJapaneseyenandtoa
limitedextentinothercurrencies.Therefore,weareexposedtoforeigncurrencyexchangerisk.
Itisourpolicytohedgematerialtransactionexposures,suchasforecastedsalesandpurchasetransactions,and
materialnetremeasurementexposures,suchasaccountsreceivableandpayable.Wehedgetheseexposuresthrough
theuseofforeignexchangecontracts.
AsofDecember31,2013,accumulatedOCIincludesEUR10.7million(netoftaxes:EUR9.5million;2012:EUR5.3
millionloss)representingthetotalanticipatedlosstobechargedtocostofsales,whichwilloffsettheEURequivalentof
foreigncurrencydenominatedforecastedpurchasetransactions.Allamountsareexpectedtobechargedoverthenext
12months.AsofDecember31,2013,noamountwasincludedinaccumulatedOCIrepresentingthetotalanticipated
gaintobereleasedtosales(2012:EUR4.3milliongain,netoftaxes).Theeffectivenessofallcontractsforwhichwe
applyhedgeaccountingismonitoredonaquarterlybasisthroughoutthelifeofthehedges.During2012and2013,no
ineffectivehedgerelationshipswererecognized.
Interest Rate Risk Management
Wehaveinterest-bearingassetsandliabilitiesthatexposeustofluctuationsinmarketinterestrates.Weuseinterest
rateswapstoaligntheinterest-typicaltermsofinterest-bearingliabilitieswiththeinterest-typicaltermsofinterestbearingassets.Theremayberesidualinterestraterisktotheextenttheassetandliabilitypositionsdonotfullyoffset.
Aspartofourhedgingpolicy,weuseinterestrateswapstohedgechangesinfairvalueofourEurobondsdueto
changesinmarketinterestrates,therebyoffsettingthevariabilityoffutureinterestreceiptsonpartofourcashand
cashequivalents.During2013,thesehedgeswerehighlyeffectiveinhedgingthefairvalueexposuretointerestrate
movements.ThechangesinfairvalueoftheEurobondswereincludedatthesametimeintheConsolidatedStatement
ofProfitorLossasthechangesinthefairvalueoftheinterestrateswaps.
Furthermore,aspartofourhedgingpolicy,weuseinterestrateswapstohedgethevariabilityoffutureinterestcash
flowsrelatingtocertainofouroperatingleaseobligations.During2013,thesehedgeswerehighlyeffectiveinhedging
thecashflowexposuretointerestratemovements.
Financial Instruments
Weuseforeignexchangecontractstomanageourforeigncurrencyriskandinterestrateswapstomanageourinterest
raterisk.Thefollowingtablesummarizesthenotionalamountsandestimatedfairvaluesofourderivativefinancial
instruments:
As of December 31
(in thousands)
Forwardforeignexchangecontracts
Interestrateswaps
1
2
2013
Notional amount
EUR
986,986
1,013,053
Fair Value
EUR
8,583
51,385
2012
Notional amount
EUR
262,146
624,900
Fair Value
EUR
16,805
124,050
Relatestoforwardcontractsassignedasahedgetoforecastedsalesandpurchasetransactionsandtomonetaryassetsandliabilities,mainlyinU.S.
dollarandJapaneseyen.
Relatestointerestrateswapsassignedasahedgetointerestbearingassetsandliabilities,mainlyrelatedtoourEurobonds;thefairvalueofthe
interestrateswapsincludesaccruedinterest.
82
Sensitivity Analysis Financial Instruments

ForeignCurrencySensitivity
WearemainlyexposedtofluctuationsinexchangeratesbetweentheeuroandtheU.S.dollarandtheeuroandthe
Japaneseyen.Thefollowingtabledetailsoursensitivitytoa10.0percentstrengtheningofforeigncurrenciesagainst
theeuro.Thesensitivityanalysisincludesforeigncurrencydenominatedmonetaryitemsoutstandingandadjuststheir
translationattheperiodendfora10.0percentstrengtheninginforeigncurrencyrates.Apositiveamountindicatesan
increaseinincomebeforeincometaxesorOCI,asshown.
2013
2012
(in thousands)
Impact on income before

income taxes
EUR
Impact on equity
EUR
Impact on income before

income taxes
EUR
U.S.dollar
Japaneseyen
Taiwansesdollar
Othercurrencies
Total
(15,608)
183
(7,692)
(9,281)
(32,398)
21,059
913
21,972
(5,258)
465
(4,956)
(2,718)
(12,467)
Impact on equity
EUR
13,669
(3,218)
10,451
ItisourpolicytolimittheeffectsofcurrencyexchangeratefluctuationsonourConsolidatedStatementofProfitor
Loss.Theincreasedeffectonincomebeforeincometaxesin2013comparedwith2012reflectsourhighernetexposure
atyearend.Thenegativeeffectonincomebeforeincometaxesaspresentedinthetableabovefor2013ismainly
attributabletotimingdifferencesbetweenthearisingandhedgingofexposures.
Theeffectsofthefairvaluemovementsofcashflowhedges,enteredintoforU.S.dollarandJapaneseyentransactions
arerecognizedinOCI.TheincreasedU.S.dollarandJapaneseyeneffectonOCIin2013comparedwith2012isthe
resultofanincreaseinoutstandingpurchasehedges.
Fora10.0percentweakeningoftheforeigncurrenciesagainsttheeuro,therewouldbeapproximatelyanequalbut
oppositeeffectontheincomebeforeincometaxesandOCI.
InterestRateSensitivity
Thesensitivityanalysisbelowhasbeendeterminedbasedontheexposuretointerestratesforbothderivativefinancial
andnon-derivativefinancialinstrumentsattheStatementofFinancialPositiondatewiththestipulatedchangetaking
placeatthebeginningofthefinancialyearandheldconstantthroughoutthereportingperiod.Thetablebelowshows
theeffectofa1.0percentagepointincreaseininterestratesonourincomebeforeincometaxesandOCI.Apositive
amountindicatesanincreaseinincomebeforeincometaxesandOCI.
2013
Impact on
income before
income taxes
Impact on OCI
EUR
EUR
19,969
1,183
(in thousands)
Effectofa1.0percentpointincreaseininterestrates
2012
Impact on
income before
income taxes
Impact on OCI
EUR
EUR
20,706
1,488
Thepositiveeffectonincomebeforeincometaxesmainlyrelatestoourcashandcashequivalentsandshort-term
investments.ThepositiveeffectonOCI,ismainlyattributabletothefairvaluemovementsoftheinterestrateswaps
designatedascashflowhedges.
Fora1.0percentagepointdecreaseininterestratestherewouldbealoweroppositeeffectonincomebeforeincome
taxesandOCIduetothecurrentinterestrates.
Credit Risk Management
Financialinstrumentsthatpotentiallysubjectustosignificantconcentrationofcreditriskconsistprincipallyofcash
andcashequivalents,short-terminvestments,derivativefinancialinstrumentsusedforhedgingactivities,accounts
receivableandfinancereceivables.
83
Cashandcashequivalents,short-terminvestmentsandderivativefinancialinstrumentscontainanelementofriskof
thecounterpartiesbeingunabletomeettheirobligations.Ourriskmanagementprogramfocusesappropriatelyon
thecurrentenvironmentofuncertaintyinthefinancialmarkets,especiallyintheeuro-zone.Weinvestourcashand
cashequivalentsandshort-terminvestmentsinshort-termdepositswithhigh-ratedfinancialinstitutionsandtheDutch
government,inDutchTreasuryCertificatesandinAAAm-ratedmoneymarketfundsthatinvestinhigh-ratedshort-term
debtsecuritiesoffinancialinstitutionsandgovernments.Tomitigatetheriskthatanyofourcounterpartiesinhedging
transactionsisunabletomeetitsobligations,weonlyenterintotransactionswithalimitednumberofmajorfinancial
institutionsthathavegoodcreditratingsandcloselymonitorthecreditworthinessofourcounterparties.Concentration
riskismitigatedbylimitingtheexposuretoasinglecounterparty.
OurcustomersconsistofICmanufacturerslocatedthroughouttheworld.Weperformongoingcreditevaluationsof
ourcustomersfinancialcondition.Wetakeadditionalmeasurestomitigatecreditriskwhenconsideredappropriateby
meansofe.g.downpayments,lettersofcreditorretentionofownershipprovisionsincontracts.Retentionofownership
enablesustorecoverthesystemsintheeventacustomerdefaultsonpayment.
Liquidity Risk Management
Ourliquidityneedsareaffectedbymanyfactors,someofwhicharebasedonthenormalongoingoperationsofthe
business,andothersthatrelatetotheuncertaintiesoftheglobaleconomyandthesemiconductorindustry.Although
ourcashrequirementsfluctuatebasedonthetimingandextentofthesefactors,webelievethatcashgeneratedfrom
operations,togetherwiththeliquidityprovidedbyexistingcashandcashequivalentsandshort-terminvestmentsand
ourborrowingcapabilityaresufficienttosatisfyourcurrentrequirements,includingour2014capitalexpenditures.We
intendtoreturncashtoourshareholdersonaregularbasisintheformofdividendpaymentsand,subjecttoouractual
andanticipatedliquidityrequirementsandotherrelevantfactors,sharebuybacksorcapitalrepayment.
Ourliquidityanalysisofderivativefinancialinstrumentsisasfollows:
(in thousands)
Total
EUR
Less than 1
year
EUR
1-3 years
EUR
3-5 years
EUR
After 5 years
EUR
Cash outflows
Currencycontracts
Interestrateswaps
8,059
259,122
8,059
15,569
40,046
51,921
151,586
Cash inflows
Currencycontracts
Interestrateswaps
16,582
309,031
16,582
39,078
78,405
64,985
126,563
Forinterestrateswapsincludedinabovetabletheamountsdisclosedhavebeendeterminedbyreferencetothe
projectedinterestratesasillustratedbytheyieldcurvesasatDecember31,2013.
Formoreinformationonourcontractualobligations,includingtheliquidityanalysisinrelationtoourborrowings,see
Note25.Additionallyotherfinancialliablities(includingtradepayables)areexpectedtobesettledwithinoneyear.
7. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

Intheprocessofapplyingouraccountingpolicies,whicharedescribedinNote3,managementhasmadesome
judgmentsthathavesignificanteffectontheamountsrecognizedintheConsolidatedFinancialStatements.Thesealso
includekeyassumptionsconcerningthefuture,andotherkeysourcesofestimationuncertaintyattheConsolidated
StatementofFinancialPositiondate,thathaveasignificantriskofcausingamaterialadjustmenttothecarrying
amountsofassetsandliabilitieswithinthenextfinancialyear.
Business Combinations
Acquisitionsofsubsidiariesareincludedonthebasisoftheacquisitionmethod.Thecostofacquisitionismeasured
basedontheconsiderationtransferredatfairvalue,thefairvalueofidentifiableassetsdistributedandthefairvalueof
liabilitiesincurredorassumedattheacquisitiondate(i.e.thedateatwhichweobtaincontrol).Theexcessofthecosts
ofanacquiredsubsidiaryoverthenetoftheamountsassignedtoidentifiableassetsacquiredandliabilitiesincurredor
assumed,iscapitalizedasgoodwill.Acquisition-relatedcostsareexpensedwhenincurredintheperiodtheyariseorthe
serviceisreceived.
84
Warranty
Weprovidestandardwarrantycoverageonoursystemsfor12monthsandoncertainopticpartsfor60months,
providinglaborandpartsnecessarytorepairsystemsandopticpartsduringthewarrantyperiod.Theestimated
warrantycostsareaccountedforbyaccruingthesecostsforeachsystemuponrecognitionofthesystemsale.The
estimatedwarrantycostsarebasedonhistoricalproductperformanceandfieldexpenses.Baseduponhistoricalservice
records,wecalculatethechargeofaverageservicehoursandpartspersystemtodeterminetheestimatedwarranty
costs.Onasemi-annualbasis,weassess,andupdateifnecessary,ouraccountingestimatesusedtocalculatethe
standardwarrantyreservebasedonthelatestactualhistoricalwarrantycostsandexpectedfuturewarrantycosts.The
actualproductperformanceand/orfieldexpenseprofilesmaydiffer,andinthosecasesweadjustourwarrantyreserves
accordingly.Futurewarrantycostsmayexceedourestimates,whichcouldleadtoanincreaseinourcostofsales.In
2013and2012,thereassessmentsofthewarrantyreserve,andresultingchangeinaccountingestimate,didnothavea
materialeffectonourConsolidatedStatementofProfitorLossandEarningspershareamounts.
Evaluation of Long-lived Assets for Impairment
Long-livedassetsincludegoodwill,otherintangibleassetsandproperty,plantandequipment.
Ateachreportingdate,wereviewthecarryingamountsofourtangibleandintangibleassetstodeterminewhetherthere
isanyindicationthatthoseassetshavesufferedanimpairmentloss.Ifanysuchindicationexists,theRecoverable
Amountoftheassetisestimatedinordertodeterminetheextentoftheimpairmentloss(ifany).Whereitisnotpossible
toestimatetheRecoverableAmountofanindividualasset,weestimatetheRecoverableAmountoftheCGUtowhich
theassetbelongs.Whereareasonableandconsistentbasisofallocationcanbeidentified,corporateassetsarealso
allocatedtoindividualCGUs,orotherwisetheyareallocatedtothesmallestgroupofCGUsforwhichareasonableand
consistentallocationbasiscanbeidentified.
Goodwillandintangibleassetsnotyetavailableforusearetestedforimpairmentannually,andwheneverthereisan
indicationthattheassetmaybeimpaired.
IftheRecoverableAmountofanasset(orCGU)isestimatedtobelessthanitscarryingamount,thecarryingamountof
theasset(orCGU)isreducedtoitsRecoverableAmount.Animpairmentlossisrecognizedimmediatelyinprofitorloss,
unlesstherelevantassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossistreatedasarevaluation
decrease.
During2013,werecordedimpairmentchargesofEUR13.1million(2012:EUR3.2million)ofwhichwerecordedEUR6.3
million(2012:EUR1.0million)incostofsales,EUR6.7million(2012:EUR0.5million)inR&DcostsandEUR0.1million
(2012:EUR1.7million)inSG&Acosts.
Wedidnotrecordanyimpairmentchargesinotherintangibleassets.
Capitalization of Development Expenditures
Indeterminingthedevelopmentexpenditurestobecapitalized,ASMLmakesestimatesandassumptionsbasedon
expectedfutureeconomicbenefitsgeneratedbyproductsthataretheresultofthesedevelopmentexpenditures.Other
importantestimatesandassumptionsinthisassessmentprocessaretherequiredinternalrateofreturn,thedistinction
betweenresearchanddevelopmentandtheestimatedusefullife.
AccountsReceivable and Finance Receivables
Amajorityofouraccountsreceivableandfinancereceivablesarederivedfromsalestoalimitednumberoflarge
multinationalsemiconductormanufacturersthroughouttheworld.Inordertomonitorpotentialcreditlosses,weperform
ongoingcreditevaluationsofourcustomersfinancialcondition.Respectiveallowancesforcreditlossesonboth
accountsreceivableandfinancereceivablesaremaintainedbaseduponmanagementsassessmentoftheexpected
collectabilityofallaccountsreceivableandfinancereceivables.Therespectiveallowancesforcreditlossesonaccounts
receivableandfinancereceivablesarereviewedperiodicallytoassesstheadequacyoftheseallowances.Inmakingthis
assessment,managementtakesintoconsideration(i)anycircumstancesofwhichweareawareregardingacustomers
inabilitytomeetitsfinancialobligations;and(ii)ourjudgmentsastopotentialprevailingeconomicconditionsinthe
industryandtheirpotentialimpactonourcustomers.Wherewedeemitprudenttodoso,wemayrequiresomeformof
creditenhancement,suchaslettersofcredit,downpaymentsandretentionofownershipprovisionsincontracts,before
shippingsystemstocertaincustomers,whichareintendedtorecoverthesystemsintheeventacustomerdefaultson
payment.Wehavenotincurredanymaterialaccountsreceivableorfinancereceivablecreditlossesduringthepastthree
years.Abusinessfailureofoneofourmaincustomerscouldresultinasubstantialcreditlossinrespecttoamounts
owedtousbythatcustomer,whichcouldadverselyaffectourbusiness,financialconditionandproftorloss.
85
Inventories
Inventoriesarestatedatthelowerofcost(first-in-first-outmethod)ornetrealizablevalue.Thecostofinventories
comprisenetpricespaidformaterialspurchased,chargesforfreightandcustomsduties,productionlaborcostand
factoryoverhead.Netrealizablevaluerepresentstheestimatedsellingpricelessallestimatedcostsofcompletionand
coststobeincurredinmarketing,sellinganddistribution.
Inventoryprovisionsarerecognizedforslow-moving,obsoleteorunsellableinventoriesandarereviewedonaquarterly
basis.Ourmethodologyinvolvesmatchingouronhandandon-orderinventorywithourmanufacturingforecast.In
determininginventoryprovisions,weevaluateinventoryinexcessofourforecastedneedsonbothtechnologicaland
economiccriteriaandmakeappropriateprovisionstoreflecttheriskofobsolescence.Thismethodologyissignificantly
affectedbyourforecastedneedsforinventories.Ifactualdemandorusageweretobelowerthanestimated,additional
inventoryprovisionsforexcessorobsoleteinventorymayberequired,whichcouldhaveamaterialadverseeffectonour
business,financialconditionandprofitorloss.
IncomeTaxes
WeoperateinvarioustaxjurisdictionsinAsia,theUnitedStatesandEuropeandmustcomplywiththetaxlawsofeach
ofthesejurisdictions.
Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodinwhichthe
liabilityissettledortheassetrealized,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantively
enactedatConsolidatedStatementofFinancialPositiondate.Themeasurementofdeferredtaxliabilitiesandassets
reflectsthetaxconsequencesthatwouldfollowfromthemannerinwhichweexpect,atthereportingdate,torecoveror
settlethecarryingamountofourassetsandliabilities.
Wecontinuouslyassessourabilitytorealizeourdeferredtaxassetsresulting,amongothers,fromnetoperatingloss
carry-forwards.Thecarryingamountisreductedtotheextendthatitisnolongerprobablethatsufficienttaxableprofits
willbeavailabletoallowallorpartoftheassettoberecovered.
Thecalculationofourtaxliabilitiesinvolvesuncertaintiesintheapplicationofcomplextaxlaws.Ourestimateforthe
potentialoutcomeofanyuncertaintaxpositionishighlyjudgmental.However,webelievethatwehaveadequately
providedforuncertaintaxpositions.Settlementoftheseuncertaintiesinamannerinconsistentwithourexpectations
couldhaveamaterialimpactonourresultsofoperations,financialconditionandcashflows.Werecognizealiabilityfor
uncertaintaxpositionswhenitisprobablethatanoutflowofeconomicresourceswilloccur.Measurementoftheliability
foruncertaintaxpositionsisbasedonmanagementsbestestimateoftheamountoftaxbenefitthatwillbelost.
86
8. Earnings per Share

Basicnetincomeperordinaryshareiscalculatedbydividingnetincomebytheweightedaveragenumberofordinary
sharesoutstandingforthatperiod.Thedilutiveeffectiscalculatedusingthetreasurystockmethod.Excludedfrom
thedilutedweightedaveragenumberofsharesoutstandingcalculationarecumulativepreferencesharescontingently
issuabletothepreferencesharefoundation,sincetheyrepresentadifferentclassofstockthantheordinaryshares.See
Note19forfurtherdiscussion.
Thebasicanddilutednetincomeperordinarysharehasbeencalculatedinaccordancewiththefollowingschedule:
As of December 31
(in thousands, except per share data)
2013
EUR
2012
EUR
Net income
1,193,844
1,302,347
Weighted average number of shares outstanding during the year

(after deduction of treasury stock)
429,770
424,096
Basic net income per ordinary share
2.78
3.07
Weighted average number of shares:

Plussharesapplicableto:
1
Optionsandconditionalshares
429,770
424,096
3,676
2,890
Dilutive potential ordinary shares
3,676
2,890
Adjusted weighted average number of shares
433,446
426,986
2.75
3.05
Diluted net income per ordinary share

1
Thecalculationofdilutednetincomeperordinaryshareassumestheexerciseofoptionsissuedunderourstockoptionplansandtheissuanceof
sharesunderourshareplansforperiodsinwhichexercisesorissuanceswouldhaveadilutiveeffect.Thecalculationofdilutednetincomeper
ordinarysharedoesnotassumeexerciseofsuchoptionsorissuanceofshareswhensuchexercisesorissuancewouldbeanti-dilutive.
9. Property, Plant and Equipment

Property,plantandequipmentconsistofthefollowing:
Leasehold
improvements
EUR
Furniture,
fixtures and
other
equipment
EUR
Total
EUR
764,023
248,429
(317,022)
(4,671)
690,759
48,965
171,895
(90,244)
(17,490)
803,885
206,660
8,883
(300)
(391)
214,852
1,057
11,543
(336)
(1,464)
225,652
344,979
22,749
(30,894)
(59)
336,775
3,246
32,168
(1,925)
(1,783)
368,481
2,057,803
386,295
(348,563)
(6,116)
2,089,419
124,308
339,252
(92,519)
(27,342)
2,433,118
155,877
31,598
649
(347)
(505)
187,272
47,791
3,619
(5)
(1,116)
237,561
401,800
110,571
906
(92,205)
(3,090)
417,982
114,677
7,997
(42,625)
(8,068)
489,963
145,775
13,416
(248)
(165)
158,778
12,415
1,352
(266)
(422)
171,857
300,741
23,668
1,679
(30,575)
(49)
295,464
22,170
89
(1,282)
(544)
315,897
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
659,761
797,539
272,777
313,922
56,074
53,795
41,311
52,584
1,029,923
1,217,840
Land,
buildings and
constructions
EUR
Machinery
and
equipment
EUR
742,141
106,234
(347)
(995)
847,033
71,040
123,646
(14)
(6,605)
1,035,100
Accumulated depreciation and impairment

Balance,January1,2012
Depreciation
Impairmentcharges
Disposals
Effectofchangesinexchangerates
Balance,December31,2012
Depreciation
Impairmentcharges
Disposals
Balance, December 31, 2013
Carrying amount
December31,2012
December 31, 2013
(in thousands)
Cost
Additions
Disposals
Acquisitionsthroughbusinesscombinations
Additions
Disposals
87
Property,plantandequipmentincludeamountsrecordedasaresultoftheacquisitionofCymer.Formoreinformation
withrespecttobusinesscombinations,werefertoNote4.
AsofDecember31,2013,thecarryingamountincludesassetsunderconstructionforland,buildingsandconstructions
ofEUR49.3million(2012:EUR5.5million),machineryandequipmentofEUR35.9million(2012:EUR21.8million),
leaseholdimprovementsofEUR1.0million(2012:EUR1.0million)andfurniture,fixturesandotherequipmentofEUR
13.9million(2012:EUR9.3million).AsofDecember31,2013,thecarryingamountoflandamountstoEUR79.2million
(2012:EUR60.7million).
Themajorityoftheadditionsanddisposalsin2013and2012relatetomachineryandequipment(includingoperating
leasestocustomers,prototypes,evaluationandtrainingsystems).ThesesystemsaresimilartothosethatASMLsells
initsordinarycourseofbusiness.Thesystemsarecapitalizedunderproperty,plantandequipmentbecausetheyare
heldforownuse,foroperatingleaseandforevaluationpurposes.Thesesystemsarerecordedatcostanddepreciated
overtheirexpectedusefullifetakingintoconsiderationtheirresidualvalue.Fromthetimethattheseassetsareno
longerheldforusebutintendedforsaleintheordinarycourseofbusiness,theyarereclassifiedfromproperty,plantand
equipmenttoinventoryattheloweroftheircarryingvalueorfairmarketvalue.Sincethetransfersbetweeninventory
andproperty,plantandequipmentarenon-cashevents,thesearenotreflectedintheConsolidatedStatementofCash
Flows.AnamountofEUR115.9million(2012:EUR204.8million)oftheadditionsrelatestonon-cashtransfersfrom
inventoryandanamountofEUR12.5million(2012:EUR9.6million)relatestoothernon-cashmovements(mainly
capitalexpendituresnotyetpaidasatDecember31,2013).AnamountofEUR48.2million(2012:EUR222.9million)
ofthedisposalsrelatestonon-cashtransferstoinventory.Whensold,theproceedsandcostofthesesystemsare
recordedasnetsalesandcostofsales,respectively,identicaltothetreatmentofothersalestransactions.Thecostof
salesforthesesystemsincludestheinventoryvalueandtheadditionalcostsofrefurbishing(materialsandlabor).
Theimpairmentchargesrecordedin2013mainlyrelatedtobuildings(EUR3.6million)andmachineryandequipment
(EUR8.0million).Werecordedimpairmentchargesinbuildingsrelatingtotherebuildofcleanroomcabinsandin
machineryandequipmentrelatingtoprototypes.Thetotalimpairmentchargesweredeterminedbasedonthedifference
betweentheassetsvalueinuse(beingEUR16.4million)andtheircarryingamount.
Theimpairmentchargesrecordedin2012mainlyrelatedtofurniture,fixtureandotherequipment(EUR1.7million).We
recordedimpairmentchargeswithrespecttosoftwarewhichceasedtobeused.Thetotalimpairmentchargeswere
determinedbasedonthedifferencebetweentheassetsvalueinuse(beingEUR0.1million)andtheircarryingamount.
AsofDecember31,2013,thecarryingamountofmachineryandequipmentincludesanamountofEUR36.7millionwith
respecttoevaluationandoperatingleasesystems(2012:EUR82.2million).
During2013,werecordedimpairmentchargesofEUR13.1million(2012:EUR3.2million)ofwhichwerecordedEUR6.3
million(2012:EUR1.0million)incostofsales,EUR6.7million(2012:EUR0.5million)inR&DcostsandEUR0.1million
(2012:EUR1.7million)inSG&Acosts.
During2013,werecordeddepreciationchargesofEUR197.1million(2012:EUR179.3million)ofwhichwerecorded
EUR144.1million(2012:EUR147.7million)incostofsales,EUR35.0million(2012EUR15.3million)inR&Dcostsand
EUR18.0million(2012:EUR16.3million)inSG&Acosts.
SpecialPurposeEntity
Thecarryingamountofland,buildingsandconstructionsincludesanamountofEUR30.9million(2012:EUR32.4
million)relatingtoourheadquartersinVeldhoven,theNetherlands,whichisownedbyKoppelenwegIIB.V.,aSPE.
Asof2003,weareleasingtheVeldhovenheadquartersforaperiodof15years(startingin2003)fromanentity("lessor")
thatwasincorporatedbytheSPEShareholders.ThelessorsequityamountstoEUR1.9millionandhasnotchanged
since2003.
TheSPEshareholderseachgrantedaloanofEUR11.6millionandafourthbankgrantedaloanofEUR12.3million
(EUR47.1millionintotal)totheparentofthelessor.ASMLprovidedtheparentofthelessorwithasubordinatedloan
ofEUR5.4millionandhasapurchaseoptionthatisexercisableeitherattheendoftheleasein2018,atapriceof
EUR24.5million,orduringtheleaseatapriceequaltothebookvalueoftheassets.Thetotalassetsofthelessor
entityamountedtoEUR54.5millionatinceptionofthelease.TheentityisdeterminedtobeaSPEbecausetheequity
investorsdonothavesufficientequityatriskforthelegalentitytofinanceitsactivitieswithoutsufficientadditional
subordinatedsupport.
88
TheprimarypurposeforwhichtheSPEwascreatedwastoprovideASMLwithuseofthebuildingfor15years,where
ASMLdoesnotretainsubstantiallyalltherisksandrewardsfromchangesinvalueofthebuilding.Themainactivities
oftheentityaretorent,re-marketandultimatelysellthebuildingthatisownedbytheSPE.Theeconomicperformance
oftheSPEismostsignificantlyimpactedbytheabilityofthelessee(ASML)toexercisethepurchaseoptionatanytime
duringtheleaseterm,andthuswecouldpotentiallybenefitfromincreasesinthefairvalueofthebuilding.
Whilethedebtholdershaveaninterest,andmayabsorblosses,andtheequityholdershaveaninterestandmayreceive
benefits,theydonothavethepowertodirectactivitiesthatmostsignificantlyimpacttheentityseconomicperformance
andtherefore,cannotbetheprimarybeneficiary.Throughthepre-determinedpriceofthecalloptionASMLhasthe
powerovertheSPE,thereforeonlyASMLmeetsboththepowerandlosses/benefitcriterionandconsolidatestheSPE.
10. Goodwill
Changesingoodwillaresummarizedasfollows:

(in thousands)
Cost
Balance,January1
Acquisitionthroughbusinesscombinations
Balance,December31
2013
EUR
2012
EUR
158,067
2,073,311
(120,082)
2,111,296
155,124
6,038
(3,095)
158,067
GoodwillincreasedduetheacquisitionofCymer.Formoreinformationwithrespecttobusinesscombinations,seeNote
4.
Goodwillistestedforimpairmentannuallyattheendofthethirdquarterandwhenevereventsorchangesin
circumstancesindicatethatthecarryingamountofthegoodwillmaynotberecoverable.
DuetotheacquisitionofCymerwehavere-evaluatedourCGUstructurein2013.Asaresult,weconcludedthatwe
havetwoCGUs:CGUASMLexcludingCLSandCGUCLS.Allgoodwillacquiredinperiodsbefore2013wasallocated
totheCGUASMLexcludingCLS.ThegoodwillresultingfromtheacquisitionofCymerwasallocatedbetweenthetwo
CGUs.ThisresultedinagoodwillamountfortheCGUASMLexcludingCLSofEUR1,717.2million(includinggoodwill
fromacquisitionsinperiodsbefore2013)andagoodwillamountfortheCGUCLSofEUR394.1million.
DuetothechangeinCGUstructure,wecouldnolongeruseourpreviousvaluationtechnique,whichwasbasedonone
CGUandthereforewasequaltothemarketcapitalization.Instead,for2013,theRecoverableAmountsoftheCGUsare
basedonthevalue-in-usecalculations.Thevalue-in-usecalculationsweredeterminedbydiscountingthefuturecash
flowsgeneratedfromthecontinuinguseoftheunit.Cashflowsbeyondtheforecastedperiodhavebeenextrapolated
usingasteady0percentgrowthrate.
Thepre-taxWACCusedtodeterminetheexpecteddiscountedfuturecashflowsis11.7percentforCGUASML
excludingCLSand14.5percentforCGUCLS.
WithrespecttoCGUCLS,theoutcomeofasensitivityanalysisof200basispointsadversechangeinkeyassumptions
(lowerASPorhigherpre-taxWACC,respectively)didnotresultinamateriallydifferentoutcomeoftheimpairmenttest.
Basedontherecoverabilitytestingduringtheannualgoodwillimpairmenttest,webelievethatthefairvalueofthe
CGUsexceedstheircarryingvalue,thereforegoodwillwasnotimpairedasofDecember31,2013andDecember31,
2012.
89
11. Other Intangible Assets

Otherintangibleassetsconsistofbothfinite-livedotherintangibleassetsandotherintangibleassetsnotyetreadyfor
use.ThemainpartoftheotherintangibleassetswasacquiredaspartoftheacquisitionsofBrionandCymer.Formore
informationwithrespecttobusinesscombinations,seeNote4.
Finite-livedotherintangibleassetsconsistofthefollowing:
Development
expenditures
(in thousands)
EUR
Brands
EUR
Intellectual Developed
Customer
property technology relationships
EUR
EUR
EUR
Other
EUR
Total
EUR
Cost
Additions
Additions
824,621
293,624
(2,341)
1,115,904
323,672
(5,996)
1,433,580
13,280
(726)
12,554
47,250
7,658
54,908
4,000
58,908
49,469
(472)
48,997
427,797
(23,380)
453,414
8,733
8,733
162,980
(8,907)
162,806
2,231
2,231
2,231
932,304
301,282
(2,813)
1,230,773
604,057
327,672
(39,009)
2,123,493
Accumulated amortization
Amortization
Amortization
566,704
98,806
(591)
664,919
92,149
(1,426)
755,642
382
(13)
369
47,228
800
48,028
2,135
50,163
43,004
5,803
(490)
48,317
18,694
(596)
66,415
5,277
1,092
6,369
6,332
(174)
12,527
2,103
109
2,212
19
2,231
664,316
106,610
(1,081)
769,845
119,711
(2,209)
887,347
Carrying amount
December31,2012
December31,2013
450,985
677,938
12,185
6,880
8,745
680
386,999
2,364
150,279
19
-
460,928
1,236,146
Developmentexpendituresmainlyrelatetothecapitalizedexpendituresregardingourcoreprograms:EUV,immersion
andholisticlithographysolutions.
Theweighted-averageamortizationperiodforthetotalfinite-livedotherintangibleassetsacquired,asaresultofthe
acquisitionofCymer,is15.2years.
Theweighted-averageamortizationperiodforthefinite-livedotherintangibleassetsacquired,asaresultofthe
acquisitionofCymer,bymajorintangibleassetclassisasfollows:
(in years)
Weighted-averageamortizationperiod
Brands
20.0
Developed technology
14.0
Customer relationships
17.9
Acquiredfinite-livedotherintangibleassetsareamortizedonastraight-linebasisnottakingintoaccountanyresidual
value.
Intellectualpropertyrelatestolicensesandpatentspurchasedfromthirdparties.During2013,weacquiredintellectual
propertyfromthirdpartiesforanamountofEUR4.0million(2012:EUR7.7million).
90
Otherintangibleassetsnotyetreadyforuseconsistofthefollowing:
(in thousands)
Cost
Additions
In-process
R&D
EUR
-
Additions
Carrying amount, December 31, 2013
147,485
(8,059)
139,426
AllacquiredotherintangibleassetsnotyetreadyforuseareallocatedtoCGUASMLexcludingCLS.
Brands,Developedtechnology,Customerrelationships,In-processR&DandOtherwereobtainedfromtheacquisitions
ofCymer(2013)andBrion(2007).
During2013,werecordedamortizationchargesofEUR119.7million(2012:EUR106.6million)whichwererecorded
incostofsalesforEUR118.2million(2012:EUR106.5million)andinR&DcostsforEUR1.5million(2012:EUR0.1
million).
During2013and2012wedidnotrecordanyimpairmentchargesforotherintangibleassets.
During2013,wecapitalizedborrowingcostsforEUR8.1million,usingacapitalizationrateof2.00percent(2012:
capitalizedborrowingcostsEUR2.5million;capitalizationrateused5.75percent).
AsatDecember31,2013,theestimatedamortizationexpensesforotherintangibleassets,forthenextfiveyearsand
thereafter,areasfollows:
(in thousands)
2014
2015
2016
2017
2018
Thereafter
Total
91
EUR
171,105
195,546
207,027
199,578
143,512
458,804
1,375,572
12. Financial Instruments by Category

Theaccountingpoliciesforfinancialinstrumentshavebeenappliedtothelineitemsbelowandrepresentthefairvalue
ofthesefinancialinstruments:
Derivatives Derivatives for Financial assets

at fair value
at fair value which hedge
through profit accounting is through profit or
loss
applied
or loss
(in thousands)
EUR
EUR
EUR
Assets as per statement of financial position date
Accountsreceivable
Financereceivables
Othernon-currentandcurrentassets
Total
16,634
16,634
54,986
54,986
535,000
535,000
679,884
679,884
878,321
296,489
104,188
1,795,694
3,074,692
Total
EUR
71,620
878,321
296,489
104,188
679,884
2,330,694
4,361,196

(in thousands)
Derivatives at fair
value through profit
or loss
EUR
Derivatives for
which hedge
accounting is
applied
EUR
Other
financial
liabilities
EUR
Total
EUR
Liabilities as per statement of financial position date

1
Long-termdebt
Accountspayable
Total
2,015
2,015
9,637
9,637
1,070,141
699,580
625,870
2,395,591
1,070,141
11,652
699,580
625,870
2,407,243
Long-termdebtincludesourEurobonds.BecausetheEurobondsserveashedgediteminafairvaluehedgerelationship,thecarryingamountisonly
adjustedforfairvaluechangesasaresultofchangesinmarketinterestrates.Seenote20.
Derivatives Derivatives for Financial assets

at fair value
at fair value which hedge
through profit accounting is through profit or
loss
applied
or loss
(in thousands)
EUR
EUR
EUR
Assets as per statement of financial position date
Accountsreceivable
Financereceivables
Othernon-currentandcurrentassets
Total
Available
for sale
financial Loans and
assets receivables
EUR
EUR
16,943
16,943
134,805
134,805
385,420
385,420
Available
for sale
financial Loans and
assets receivables
EUR
EUR
930,005
930,005
605,288
303,788
68,638
1,382,176
2,359,890
Total
EUR
151,748
605,288
303,788
68,638
930,005
1,767,596
3,827,063

(in thousands)
Derivatives at fair
value through profit
or loss
EUR
Derivatives for
which hedge
accounting is
applied
EUR
Other
financial
liabilities
EUR
Total
EUR
Liabilities as per statement of financial position date

1
Long-termdebt
Accountspayable
Total
425
425
10,468
10,468
756,502
480,088
188,961
1,425,551
756,502
10,893
480,088
188,961
1,436,444
Long-termdebtincludesourEurobond.BecausetheEurobondservesashedgediteminafairvaluehedgerelationship,thecarryingamountisonly
adjustedforfairvaluechangesasaresultofchangesinmarketinterestrates.Seenote20.
92
SeeNote5forthefairvaluemeasurementhierarchy.
Thecarryingamountsoftheaccountsreceivable,financereceivablesandotherassetsapproximatetheirfairvalue.
Theamountsreflectedaboverepresentourmaximumexposuretocreditriskforfinancialassets.SeeNote6forcredit
riskmanagementinrelationtoourfinancialassets.
13. Derivative Financial Instruments

Thederivativefinancialinstrumentsconsistofthefollowing:
2013
2012
As of December 31
(in thousands)
Interestrateswaps-cashflowhedges
Interestrateswaps-fairvaluehedges
Forwardforeignexchangecontracts-cashflowhedges
Forwardforeignexchangecontracts-otherhedges(nohedgeaccounting)
Total
Assets
EUR
54,983
3
16,634
71,620
Liabilities
EUR
3,598
6,039
2,015
11,652
Assets
EUR
128,830
5,975
16,943
151,748
Liabilities
EUR
4,780
5,688
425
10,893
Lessnon-currentportion:
Interestrateswaps-cashflowhedges
Interestrateswaps-fairvaluehedges
Total non-current portion
30,777
30,777
2,608
2,608
101,651
101,651
4,032
4,032
Total current portion
40,843
9,044
50,097
6,861
Thefairvaluepartofahedgingderivativefinancialinstrumentsthathasaremainingtermof12monthsorlessafter
StatementofFinancialPositiondateisclassifiedascurrentassetorliability.Whenthefairvaluepartofahedging
derivativehasatermofmorethan12monthsafterStatementofFinancialPositiondate,itisclassifiedasnon-current
assetorliability.
Foreign Exchange Contracts
ThenotionalprincipalamountsoftheoutstandingforwardforeignexchangecontractsinthemaincurrenciesU.S.dollar
andJapaneseyenatDecember31,2013areUSD1,144.0millionandJPY2.2billion(2012:USD159.8millionandJPY
8.4billion).
Thehedgedhighlyprobableforecastedtransactionsdenominatedinforeigncurrencyareexpectedtooccuratvarious
datesduringthecoming12months.GainsandlossesrecognizedinOCIonforwardforeignexchangecontractsasof
December31,2013willberecognizedintheConsolidatedStatementofProfitorLossintheperiodorperiodsduring
whichthehedgedforecastedtransactionsaffecttheConsolidatedStatementofProfitorLoss.
In2013,werecognizedanetamountofEUR2.3milliongain(2012:EUR8.7milliongain)intheConsolidatedStatement
ofProfitorLossresultingfromeffectivecashflowhedgesforforecastedsalesandpurchasetransactionsthatoccurred
intheyear.Furthermore,werecognizedanetamountofEUR62.5milliongainintheConsolidatedStatementofProfitor
Lossresultingfromderivativefinancialinstrumentsmeasuredatfairvaluethroughprofitorloss(2012:EUR3.0million
gain).
Interest Rate Swaps
ThenotionalprincipalamountsoftheoutstandinginterestrateswapcontractsasofDecember31,2013wereEUR
1,013.1million(2012:EUR624.9million).
93
14. Other Assets

Othernon-currentassetsconsistofthefollowing:
1
2
As of December 31
(in thousands)
2013
EUR
2012
EUR
AdvancepaymentstoZeiss
1
Compensationplanassets
2
SubordinatedloangrantedtolessorinrespectofVeldhovenheadquarters
Other
Total other non-current assets
224,123
20,174
5,445
13,611
263,353
183,025
12,080
5,445
6,350
206,900
ForfurtherdetailsoncompensationplanassetsseeNote24.
ForfurtherdetailsonloangrantedtolessorinrespectofVeldhovenheadquartersseeNote9.
Zeissisoursolesupplierofmainopticalsystems(includinglenses)and,fromtimetotime,receivesnon-interestbearing
advancepaymentsfromusthatsupportsZeiss'work-in-process,therebysecuringlensandopticalmoduledeliveriesto
us.AmountsowedundertheseadvancepaymentsaresettledthroughfuturelensorEUVopticalmoduledeliveries.The
non-currentpartofnon-interestbearingadvancepaymentstoZeissmainlyrelatestopaymentsmadetosupportZeiss'
investmentsinASMLsEUVprogram.ThesepaymentsaresettledthroughfutureEUVopticalmoduledeliveries.
Othercurrentassetsconsistofthefollowing:
As of December 31
(in thousands)
2013
EUR
2012
EUR
AdvancepaymentstoZeiss
VAT
Prepaidexpenses
Otherreceivables
Total other current assets
99,415
67,381
54,716
28,705
250,217
70,257
25,215
34,888
35,728
166,088
Fromtimetotime,Zeissreceivesnon-interestbearingadvancepaymentsfromusthatassistinfinancingZeiss'work-inprocessandtherebysecurelensandopticalmoduledeliveriestous.Amountsowedundertheseadvancepaymentsare
repaidorsettledthroughlensorEUVopticalmoduledeliveriesoverthefollowing12months.
Thecarryingamountofthenon-currentandcurrentotherassetsapproximatesthefairvalue.
15. Inventories
Inventoriesconsistofthefollowing:
As of December 31
(in thousands)
2013
EUR
2012
EUR
Rawmaterials
Work-in-process
Finishedproducts
438,853
1,549,119
666,648
307,315
1,074,042
742,979
Total inventories, gross

Provisionforobsolescenceand/orlowermarketvalue
Total inventories
2,654,620
(261,598)
2,393,022
2,124,336
(267,366)
1,856,970
94
Asummaryofactivityintheprovisionforobsolescenceand/orlowermarketvalueisasfollows:
As of December 31
(in thousands)
2013
EUR
2012
EUR
Balanceatbeginningofyear
Additionfortheyear
Utilizationoftheprovision
Balance at end of year
(267,366)
(164,852)
2,532
168,088
(261,598)
(185,462)
(138,962)
1,009
56,049
(267,366)
In2013,theadditionfortheyearisrecordedincostofsalesforanamountofEUR155.4millionandR&Dcostsfor
anamountofEUR9.5million(2012:costofsalesEUR133.3millionandR&DcostsforanamountofEUR5.7million).
The2013additionfortheyearmainlyrelatestoinventoryitemswhichwereceasedtobeusedduetotechnological
developmentsanddesignchangeswhichresultedinobsolescenceofcertainparts.
Utilizationoftheprovisionmainlyrelatestothesaleandscrappingofobsoleteinventories.In2013,ASMLmadeno
profitonthesaleofinventoriesthathadbeenpreviouslywrittendown(2012:EUR2.3million).
ThecostofinventoriesrecognizedascostsandincludedincostofsalesamountedtoEUR2,131.3million(2012:EUR
1,873.5million).
16. Finance Receivables

Financereceivablesconsistofthenetinvestmentinfinanceleases.Thefollowingtableliststhecomponentsofthe
FinancereceivablesasofDecember31,2013and2012:
As of December 31
(in thousands)
Financereceivables,gross
Unearnedinterest
Finance receivables
Currentportionoffinancereceivables,gross
Currentportionofunearnedinterest
Non-current portion of finance receivables
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
TheslightdecreaseinfinancereceivablesasofDecember31,2013comparedtoDecember31,2012iscausedbya
changeintheproductmix(lowernumberofhigh-endsystemtypesincludedattheendof2013comparedto2012).
AtDecember31,2013,theminimumleasepaymentsandpresentvalueofminimumleasepaymentsisasfollows:
As of December 31
(in thousands)
Notlaterthanoneyear
Laterthanoneyearandnotlaterthanfiveyears
Less:unearnedinterest
Present value of minimum lease payments receivable
Minimum lease
payments
2013
EUR
254,227
48,750
302,977
(6,488)
296,489
2012
EUR
268,617
40,999
309,616
(5,828)
303,788
Present value of
minimum lease payments
2013
2012
EUR
EUR
250,472
46,017
296,489
n/a
296,489
265,167
38,621
303,788
n/a
303,788
Weperformongoingcreditevaluationsonourcustomersfinancialcondition.Weperiodicallyreviewwhetheraprovision
forcreditlossesisneededbyconsideringfactorssuchashistoricalpaymentexperience,creditquality,theagingof
thefinancereceivablesbalances,andcurrenteconomicconditionsthatmayaffectacustomersabilitytopay.In2013
and2012,wedidnotrecordanyexpectedcreditlossesfromfinancereceivables.AsofDecember31,2013thefinance
receivableswereneitherpastduenorimpaired.
95
17. Accounts Receivable

Accountsreceivableconsistofthefollowing:
As of December 31
(in thousands)
Accountsreceivable,gross
Provisionfordoubtfulreceivables
2013
EUR
880,169
(1,848)
2012
EUR
607,359
(2,071)
Accounts receivable
878,321
605,288
TheincreaseinaccountsreceivableasofDecember31,2013comparedtoDecember31,2012ismainlycausedbyan
increasednumberofsystemsshippedandrecognizedinsalesinthelastmonthsof2013comparedtothelastmonths
of2012.
Thecarryingamountoftheaccountsreceivableapproximatesthefairvalue.Weperformongoingcreditevaluationson
ourcustomersfinancialcondition.Weperiodicallyreviewwhetheraprovisionforcreditlossesisneededbyconsidering
factorssuchashistoricalpaymentexperience,creditquality,agingoftheaccountsreceivablebalances,andcurrent
economicconditionsthatmayaffectacustomersabilitytopay.
Themainpartofthecarryingvalueofaccountsreceivableconsistsofeurobalances.
Accountsreceivableareimpairedandprovidedforonanindividualbasis.AsofDecember31,2013,accountsreceivable
ofEUR91.4million(2012:EUR101.7million)werepastduebutnotimpaired.Thesebalancesarestillconsideredtobe
recoverablebecausetheyrelatetocustomersforwhomthereisnorecenthistoryofdefaultandtherehasnotbeena
significantchangeincreditquality.Thetablebelowshowstheageinganalysisoftheaccountsreceivablethatareupto
threemonthspastdueandoverthreemonthspastdue.Accountsreceivablearepastduewhenthepaymenttermhas
expired.
As of December 31
(in thousands)
2013
EUR
2012
EUR
Uptothreemonthspastdue
Overthreemonthspastdue
81,312
10,065
96,104
5,584
Total past due
91,377
101,688
Weprovidedextendedpaymenttermstosomeofourcustomers.Theaveragedaysoutstandingincreasedto58daysin
2013from47daysin2012.
Movementsintheallowancefordoubtfulreceivablesareasfollows:

(in thousands)
Balanceatbeginningofyear
1
Additionfortheyear
2013
EUR
(2,071)
(1,062)
1,285
2012
EUR
(2,582)
(458)
969
Allowance for doubtful receivables
(1,848)
(2,071)
Theadditionfortheyearisrecordedincostofsales.
18. Cash and Cash Equivalents and Short-term Investments

CashandcashequivalentsatDecember31,2013includedepositswithhigh-ratedfinancialinstitutionsandtheDutch
governmentofEUR853.5million(2012:EUR775.6million),investmentsinAAAm-ratedmoneymarketfundsthatinvest
inhigh-rateddebtsecuritiesoffinancialinstitutionsandgovernmentsofEUR535.0million(2012:EUR385.4million)
andinterest-bearingbankaccountsofEUR942.2million(2012:EUR606.6million).Ourcashandcashequivalentsare
predominantlydenominatedineurosandpartlyinU.S.dollars.
96
Cashandcashequivalentshaveinsignificantinterestrateriskandremainingmaturitiesofthreemonthsorlessatthe
dateofacquisition.ExceptforanamountofEUR4.7million,norestrictionsonusageofcashandcashequivalents
exist.Thecarryingamountoftheseassetsapproximatestheirfairvalue.
Short-terminvestmentshaveinsignificantinterestrateriskandremainingmaturitieslongerthanthreemonthsbutless
thanoneyearatthedateofacquisition.
Short-terminvestments(classifiedasAFSsecurities)consistofthefollowing:

(in thousands)
DutchTreasuryCertificates
Deposits
Total
Cost basis
304,884
375,000
679,884
Unrealized
Gains
-
Unrealized
Losses
-
Recorded Basis
304,884
375,000
679,884

(in thousands)
DutchTreasuryCertificates
Deposits
Total
Cost basis
279,988
650,017
930,005
Unrealized
Gains
-
Unrealized
Losses
-
Recorded Basis
279,988
650,017
930,005
19. Equity
Share Capital
sharesareissued.
Cymer.
Consequently,onNovember24,2012,theArticlesofAssociationwereamendedasfollows.Uponthefirstamendment
theordinarysharestobeheldforthebenefitoftheparticipantstotheCCIPwereconvertedintoordinarysharesM
andallotherordinaryshareswereconvertedintoordinarysharesA.Uponthesecondamendment,theparvalueper
ordinaryshareAwasincreasedfromEUR0.09toEUR9.24attheexpenseofthesharepremiumreserve.Uponthe
thirdamendment,thenominalvalueperordinaryshareAwasreducedtoanamountofEUR0.06,bydecreasingthe
nominalvalueperordinaryshareAbyanamountofEUR9.18,whichresultedinarepaymentofthesameamountper
97
sharetoholdersofordinarysharesintowhichtheordinarysharesAwereconverted.Thefourthamendmentprovided
fortheconsolidationoftheordinarysharesAthroughtheexchangeofeach100ordinarysharesfor77ordinaryshares,
resultinginanincreaseofthenominalvalueperordinarysharefromEUR0.06toEUR0.09,wherebytheaggregate
differencewasbookedattheexpenseofthesharepremiumreserve.Thefifthandlastamendmentprovidedforthe
deletionoftheshareclassMforparticipantstotheCCIPandtheshareclassAfortheothershareholders.Theordinary
sharesMandAwereconvertedthereafterintoordinaryshareswithoutaspecificlettermarkattachedtoit.These
amendmentsinsubstanceconstituteaSyntheticShareBuybackinwhichweeffectivelyrepurchased93,411,216shares
atanaveragepriceofEUR39.91foratotalamountofEUR3,728.3million.ThedifferenceofEUR125.6millionbetween
thecapitalrepaymentofEUR3,728.3millionandthenetproceedsfromissuanceofsharesofEUR3,853.9million
relatestothecapitalrepaymentonASML'streasuryshareswhichwasalsopartoftheSyntheticShareBuyback.
CCIPseeNote36.
Ordinary Shares
GiroTransactionsAct(Wet giraal effectenverkeer;the"GiroAct")maintainedbytheDutchcentralsecuritiesdepository
HoldersofASMLsordinaryshareshaveapreemptiverightofsubscription,inproportiontotheaggregatenominal
ofholdersofordinaryshares.
Ordinary Shares B
AspartofthemostrecentchangesinourArticlesofAssociation,adoptedattheEGMheldonSeptember7,2012,
the9,000ordinarysharesBwithanominalvalueofEUR0.01wereintroduced.Apersonwhoholds(amultipleof)100
fractionalshares,mayexchangethosefractionalsharesforanordinaryshareB.EveryholderofanordinaryshareBis
entitledtoone-ninth(1/9)ofadividend.EachordinaryshareBentitlestheholderthereoftocastonevoteattheGeneral
Meeting.
In1998,wegrantedtothepreferenceshareFoundation,thePreferenceShareOption.Thisoptionwasamendedand
issued.
PertheamendmentofourArticlesofAssociationonMay6,2011,thenominalvalueofthecumulativepreferenceshares
wasincreasedtoEUR0.09.Thenumberofcumulativepreferencesharesincludedintheauthorizedsharecapitalwas
decreasedto700,000,000.ThiswasdonetosimplifytheArticlesofAssociation,andtogiveeachsharetherighttocast
onevoteintheGeneralMeetingofShareholders.
98
arefullypaidup.
Other Reserves
ASMLisacompanyincorporatedunderDutchLaw.InaccordancewiththeDutchCivilCode,otherreservesconsistof
legalreservesthathavetobeestablishedincertaincircumstances.Thelegalreservesconsistofthehedgingreserve,
thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures.Legalreservesarenotfor
distributiontoourshareholders.Ifthecurrencytranslationreserveorthehedgingreservehasanegativebalance,
distributionstoourshareholdersarerestrictedtotheextentofthenegativebalance.
99
Changesinotherreservesduring2013and2012wereasfollows:
Hedging
reserve
EUR
Currency
translation
reserve
EUR
Reserve for
capitalized
development
expenditures
EUR
Total
EUR
2,984
(103,567)
259,622
159,039
5,927
5,927

Gain(Loss)onderivativefinancialinstruments
214
(7,761)
214
(7,761)
Currency translation on development expenditures
(4,563)
1,119
(96,521)
192,482
(1,119)
450,985
192,482
349,901
Components of statement of comprehensive income:

Foreign currency translation:
Gain(Loss)ontranslationofforeignoperations
(122,000)
(122,000)

(5,370)
(2,276)
(5,370)
(2,276)
(12,209)
4,570
(213,951)
231,523
(4,570)
677,938
231,523
451,778
(in thousands)
Exchangeratedifferencesrelatingtothetranslationfromourforeignsubsidiariesintoeuroarerecognizedinthe
currencytranslationreserve.Gainsandlossesonhedginginstrumentsthataredesignatedashedgesofnetinvestments
inforeignoperationsareincludedinthecurrencytranslationreserve.
Hedgingreserverepresentshedginggainsandlossesontheeffectiveportionofcashflowhedges.
Appropriation of Net Income
Aspartofourfinancingpolicy,weaimtopayanannualdividendthatwillbestableorgrowingovertime.Annually,the
BoardofManagementwill,uponpriorapprovalfromtheSupervisoryBoard,submitaproposaltotheAGMwithrespect
totheamountofdividendtobedeclaredwithrespecttotheprioryear.Thedividendproposalinanygivenyearwillbe
subjecttotheavailabilityofdistributableprofitsorretainedearningsandmaybeaffectedby,amongotherfactors,the
BoardofManagement'sviewsonourpotentialfutureliquidityrequirements,includingforinvestmentsinproduction
capacity,thefundingofourR&Dprogramsandforacquisitionopportunitiesthatmayarisefromtimetotime;andby
futurechangesinapplicableincometaxandcorporatelaws.Accordingly,itmaybedecidedtoproposenottopaya
dividendortopayalowerdividendwithrespecttoanyparticularyearinthefuture.
For2013,aproposaltodeclareadividendofEUR0.61perordinaryshareofEUR0.09nominalvaluewillbesubmitted
totheAGMtobeheldonApril23,2014.
DividendsonordinarysharesarepayableoutofnetincomeorretainedearningsasshowninourFinancialStatements
asadoptedbyourGeneralMeetingofShareholders,afterpaymentfirstof(accumulated)dividendsoutofnetincomeon
anyissuedcumulativepreferenceshares.
Share Buyback Programs
Inadditiontodividendpayments,weintendtoreturncashtoourshareholdersonaregularbasisthroughshare
buybacksorcapitalrepayment,subjecttoouractualandanticipatedlevelofliquidityrequirements,ourcurrentshare
price,othermarketconditionsandotherrelevantfactors.
100
OnApril24,2013,theAGMauthorizedtherepurchaseofuptoamaximumoftwotimes10.0percentofourissuedshare
capitalasofthedateofauthorizationthroughOctober24,2014.
4,614,179ofoursharesforatotalamountofEUR300.0millionatanaveragepriceofEUR65.02pershare.These
sharesareintendedtobecancelledin2014.
Thefollowingtableprovidesasummaryofourrepurchasedsharesin2013:
Period
April18-30,2013
May2-31,2013
June1-30,2013
July1-31,2013
August1-31,2013
September1-30,2013
October3-31,2013
November1-30,2013
December1-31,2013
Total
Total number
of shares
purchased
297,500
389,974
749,434
321,486
283,097
179,146
556,443
962,146
874,953
Average price paid

per Share
(EUR)
55.35
61.76
60.39
65.20
67.83
69.06
69.34
66.76
67.25
4,614,179
65.02
Total number of shares Maximum value of shares

purchased as
that may
part of publicly
yet be purchased
announced plans
under the program
or programs
(EUR)
297,500
983,534,770
687,474
959,449,401
1,436,908
914,192,630
1,758,394
893,232,250
2,041,491
874,028,834
2,220,637
861,656,533
2,777,080
823,072,791
3,739,226
758,841,727
4,614,179
700,000,036
20. Long-term Debt

Thelong-termdebtconsistsofthefollowing:
As of December 31
(in thousands)
2013
EUR
2012
EUR
EUR750million3.375percentseniornotesdue2023,carryingamount
EUR600million5.75percentseniornotesdue2017,carryingamount
1
Loanheadquarterbuilding
Other
Long-term debt
Less:currentportionoflongtermdebt
Non-current portion of long term debt
748,083
269,418
30,936
21,704
1,070,141
4,385
1,065,756
707,107
32,366
17,029
756,502
3,610
752,892
ThisloanrelatestoourSPE,seeNote9.
OurobligationstomakeprincipalrepaymentsunderourEurobondsandotherborrowingarrangementsexcluding
interestexpenseasofDecember31,2013,forthenextfiveyearsandthereafter,areasfollows:
(inthousands)
2014
2015
2016
2017
2018
Thereafter
Long-term debt
Less:currentportionoflong-termdebt
Non-current portion of long-term debt
101
EUR
4,385
4,252
4,211
242,361
27,997
757,467
1,040,673
4,385
1,036,288
Eurobond
ThefollowingtablesummarizesthecarryingamountofouroutstandingEurobonds,includingthefairvalueofinterest
rateswapsusedtohedgethechangeinthefairvalueoftheEurobonds:
1
2
As of December 31
(in thousands)
2013
EUR
2012
EUR
Eurobond
1
Amortizedcostamount
2
Fairvaluehedgeadjustment
Total
976,862
40,639
1,017,501
597,012
110,095
707,107
Theamortizedcostamountisadjustedfortransactioncosts.
Thefairvalueoftheinterestrateswapsexcludesaccruedinterest.
InJune2007,wecompletedanofferingofourEUR600million5.75percentseniornotesdue2017,withinterestpayable
annuallyonJune13.ThenotesareredeemableattheoptionofASML,inwholeorinpart,atanytimebypayingamake
wholepremium,andunlesspreviouslyredeemed,willberedeemedat100percentoftheirprincipalamountonJune13,
2017.InSeptember2013,werepurchasedanominalamountofEUR361.8millionofthesenotesinatenderofferfora
cashamountofEUR423.0millionincludingaccruedinterest.
InSeptember2013,wecompletedanofferingofourEUR750million3.375percentseniornotesdue2023,withinterest
payableannuallyonSeptember19.ThenotesareredeemableattheoptionofASML,inwholeorinpart,atanytime
bypayingamakewholepremium,andunlesspreviouslyredeemed,willberedeemedat100percentoftheirprincipal
amountonSeptember19,2023.
TheEurobondsserveashedgeditemsinfairvaluehedgerelationshipsinwhichwehedgethevariabilityofchangesin
thefairvalueofourEurobondsduetochangesinmarketinterestrateswithinterestrateswaps.Thefairvaluechanges
oftheseinterestrateswapsarerecordedontheConsolidatedStatementofFinancialPositionunderderivativefinancial
instruments(withinothercurrentassetsandothernon-currentassets)andthecarryingamountoftheEurobondsis
adjustedforthesefairvaluechangesonly.FollowingtherepurchaseofpartofourEUR600million5.75percentsenior
notesdue2017,thecorrespondingpartoftheinterestrateswapshasbeenterminated,simultaneously.
ThefollowingtablesummarizesamongstotherstheestimatedfairvalueoftheEurobonds:
As of December 31
(in thousands)
Principalamount
Carryingamount
1
Fairvalue
1
2013
EUR
988,153
1,017,501
1,028,238
2012
EUR
600,000
707,107
700,644
Source:BloombergFinanceLP
ThefairvalueofourEurobondsisestimatedbasedonquotedmarketpricesasofDecember31,2013.Duetochanges
inmarketinterestratesandcreditspreadssincetheissueofourEurobondswhichcarryafixedcouponinterestrate,the
fairvaluedeviatesfromtheprincipalamount.
102
21. Lines of Credit

OuravailablecreditfacilitiesamounttoEUR700.0millionasofDecember31,2013andEUR500.0millionasof
December31,2012.Noamountswereoutstandingunderthesecreditfacilitiesattheendof2013and2012.
TheamountatDecember31,2013consistsofoneEUR700millioncommittedrevolvingcreditfacilityfromagroupof
banksthatwillmaturein2018.ThiscreditfacilityreplacedourEUR500millioncommittedrevolvingcreditfacilitythat
wasduetoexpireinMay2015andthatwe,inlinewithourfinancingpolicy,cancelledinMarch2013.Thenewcredit
facilitycontainsasimilarrestrictivecovenantasthecreditfacilityitreplacedandthatrequiresustomaintainaminimum
long-termcommittedcapitaltonettotalassetsratioof40.0percentcalculatedinaccordancewithcontractuallyagreed
definitions.Long-termcommittedcapitalcontains,amongothers,equityanddebtmaturingatleastoneyearafterthe
maturitydateofthecreditfacility,whilenettotalassetsmainlycomprisesoftotalassetsminuscash,cashequivalents
andcertainshort-terminvestments.Furthermore,adjustmentsaremadefore.g.intangiblesandoperatingleases.Asof
December31,2013thisratiowas89.6percent.Therefore,weareincompliancewiththecovenantattheendof2013.
OutstandingamountsunderthiscreditfacilitywillbearinterestatEURIBORorLIBORplusamarginthatdependsonour
liquidityposition.
TheamountatDecember31,2012,consistedofoneEUR500millioncommittedrevolvingcreditfacilityfromagroupof
banksthatwecancelledinMarch2013.Thecreditfacilitycontainedarestrictivecovenantthatrequiredustomaintaina
minimumcommittedcapitaltonettotalassetsratioof40.0percentcalculatedinaccordancewithcontractuallyagreed
definitions.AsofDecember31,2012,thisratiowas85.8percent.Therefore,wewereincompliancewiththecovenantat
theendof2012.
22. Provisions
Themovementintheprovisionforleasecontractterminationcostsisasfollows:
(in thousands)
Balance,January1
Releaseoftheprovision
Unwindingofdiscount
Effectofexchangerates
Provision for lease contract termination costs
Less:currentportionofprovisionforleasecontractterminationcosts
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
Theprovisionforleasecontractterminationcostsrelatestoanoperatingleasecontractforabuildingforwhichno
economicbenefitsareexpected.Theprovisionforleasecontractterminationcostsisexpectedtobefullyutilizedby
2017.
23. Accrued and Other Liabilities

Accruedandotherliabilitiesconsistofthefollowing:
As of December 31
(in thousands)
2013
EUR
2012
EUR
Deferredrevenue
Coststobepaid
Downpaymentsfromcustomers
Personnelrelateditems
Standardwarrantyreserve
Other
939,358
440,010
821,959
247,246
27,475
12,324
739,136
278,066
1,033,768
200,670
21,626
1,352
Total accrued and other liabilities

1
Less:non-currentportionofaccruedandotherliabilities
Current portion of accrued and other liabilities
2,488,372
280,534
2,207,838
2,274,618
401,109
1,873,509
Themainpartofthenon-currentportionofaccruedandotherliabilitiesrelatestodownpaymentsreceivedfromcustomersregardingfuture
shipmentsofEUVsystemsanddeferralswithrespecttoservices.
Theincreaseinaccruedandotherliabilitiesmainlyrelatestotheincreaseindeferredrevenueandcoststobepaid,
partlyoffsetbythedecreaseindownpaymentsfromcustomers.
103
DeferredrevenueasofDecember31,2013mainlyconsistsofawardcreditsregardingfreeordiscountedproducts
orservicesaspartofvolumepurchaseagreementsamountingtoEUR660.1million(2012:EUR581.5million)and
prepaidextendedandenhanced(optic)warrantycontractsamountingtoEUR261.2million(2012:EUR242.2million).In
addition,thedeferredrevenuealsoincludesdeferralswithrespecttoourfirstthird-generationEUVsystem,NXE:3300B.
CoststobepaidincludeanamountofEUR171.2millionrelatingtotheexpectedlossestoupgradethefirst11EUV
sourcesinthefield,whichwasassumedbyASMLasaresultoftheacquisitionofCymer.Inaddition,coststobepaid
includeaccruedcostforunbilledservicesprovidedbysuppliersincludingcontractedlabor,outsourcedservicesand
consultancy.
Wereceivedownpaymentsfromcustomerspriortoshipmentofsystemsincludedinourcurrentproductportfolioor
systemscurrentlyunderdevelopment.
Personnelrelateditemsmainlyconsistofaccruedmanagementbonuses,accruedprofitsharing,accruedvacationdays,
accruedvacationallowance,accruedwagetax,socialsecuritiesandaccruedpensionpremiums.
Changesinstandardwarrantyreservefortheyears2013and2012areasfollows:
(in thousands)
Balance,January1
Additionsfortheyear
Utilizationofthereserve
Releaseofthereserve
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
Thereleaseofthereserveisduetoachangeinaccountingestimatebasedonlowerthanexpectedhistoricalwarranty
expensesasaresultofanimprovedlearning-curveconcerningoursystems.Thereleasehasbeenincludedincostof
sales.
24. Employee Benefits

OurbonusexpensesfortheBoardofManagement(includingMr.NicklandMr.Meurice)andseniormanagementwere
asfollows:

(in thousands)
2013
EUR
2012
EUR
Bonusexpenses
32,698
16,474
BonusexpensesincludeanamountofEUR2.1million(2012:EUR1.8million)inrelationtotheSTIcashbonusforour
BoardofManagement,Mr.NicklandMr.Meurice(werefertoNote31).
Wehaveaperformancerelatedbonusplanforseniormanagement,whoarenotmembersoftheBoardofManagement.
Underthisplan,thebonusamountisdependentonactualperformanceagainstcorporate,departmentalandpersonal
targets.WithinASMLthebonusformembersofseniormanagementcanrangebetween0.0percentand40.0percent,
or0.0percentand70.0percent,oftheirannualsalaries,dependingupontheirseniority.Theperformancetargetsareset
foreachhalfyear.Thebonusoverthefirsthalfof2013waspaidinthesecondhalfof2013.Thebonusoverthesecond
halfof2013isaccruedforintheConsolidatedStatementofFinancialPositionasofDecember31,2013andisexpected
tobepaidinthefirstquarterof2014.AsaresultoftheacquisitionofCymer,weassumedallexistingbonusplans
eligibletoCymeremployees.WithinCymerbonusescanrangebetween0.0percentand150.0percent,or0.0percent
and200.0percentoftherelevantemployee'sannualsalary,dependinguponsuchemployee'sseniorityandrespective
division.Theperformancetargetsaresetforawholeyear.Thebonusover2013isaccruedforintheConsolidated
StatementofFinancialPositionasofDecember31,2013andisexpectedtobepaidinthefirstquarterof2014.
104
Ourbonuscostsundertheseplanswereasfollows:

(in thousands)
2013
EUR
2012
EUR
Bonusexpenses
30,631
14,588
Theincreaseinbonuscostsin2013comparedto2012ismainlyattributabletotheacquisitionofCymer.
Profit-sharing Plan
Wehaveaprofit-sharingplancoveringallEuropeanandUSnon-salesemployeeswhoarenotmembersoftheBoard
ofManagementorseniormanagement.Undertheplan,eligibleemployeesreceiveanannualprofit-sharing,basedona
percentageofnetincomerelativetosalesrangingfrom0.0to20.0percentoftheirannualsalary.Theprofitsharingfor
theyears2013and2012was14.0percentorEUR55.9millionand18.0percentorEUR64.5million,respectively.Our
profitisalsooneofthecriteriafortheindividualvariablepayprogramsforemployeesinAsiaandemployeeseligibleto
thesalesrewardplanwhichamounttoEUR25.8millionfor2013(includingEUR2.3millionforthesalesrewardplan)
andEUR24.4millionfor2012.
Share-based Compensation
Wehaveadoptedvariousshare(option)plansforouremployees.Eachyear,theBoardofManagementdetermines,
bycategoryofourpersonnel,thetotalavailablenumberofstockoptionsandmaximumnumberofsharesthatcanbe
grantedinthatyear.ThedeterminationissubjecttotheapprovalofourSupervisoryBoard.FormembersoftheBoard
ofManagement,wehaveseparateshare-basedpaymentplans,fordetailsonserviceandvestingconditionsseebelow.
Ourcurrentshare-basedpaymentplansdonotprovidecashsettlementofoptionsandshares.
Thetotalgrossamountofrecognizedcompensationexpensesassociatedwithshare-basedpayments(including
share-basedpaymentstotheBoardofManagement)wasEUR47.4millionin2013andEUR18.7millionin2012.
Compensationexpensesin2013includedEUR20.2millionrelatingtoincurredpost-acquisitionexpensesforsharebasedcompensationawardsexchangedaspartoftheacquisitionofCymer,seeNote4.Detailsconcerningtheshare
(option)planswhichhavebeenadoptedbyASMLaspartoftheCymeracquisitionareincludedinthetablesbelow.The
taxbenefitrecognizedrelatedtotherecognizedshare-basedcompensationcostsamountstoEUR10.7millionin2013
andEUR0.9millionin2012.
Totalcompensationcostsrelatedtonon-vestedawardstoberecognizedinfutureperiodsamounttoEUR62.4million
asperDecember31,2013(2012:EUR30.4million).Theweightedaverageperiodoverwhichthesecostsareexpected
toberecognizediscalculatedat1.7years(2012:2.0years).
Option Plans
Optionsgrantedunderourstockoptionplanshavefixedexercisepricesequaltotheclosingpriceofourshareslisted
atNYSEEuronextAmsterdamorourshareslistedatNASDAQontheapplicablegrant-dates.Grantedstockoptions
generallyvestoverathree-yearperiodwithanyunexercisedstockoptionsexpiringtenyearsafterthegrant-date.
Wehavefivedifferentstockoptionplans:
Employeeplan
Optionpurchaseplan
Brionstockoptionplan
Cymerstockoptionplan
Seniormanagementplan(alreadyvested)
TheOptionpurchaseplanhasnoserviceandvestingconditions.Theotherplanstypicallyhaveathreetofouryear
servicecondition.ThefairvalueofthestockoptionsisdeterminedusingaBlack-Scholesoptionvaluationmodel.
105
TheBlack-Scholesoptionvaluationofourstockoptionsisbasedonthefollowingassumptions:
2013
2012
Weightedaverageshareprice(inEUR)
Volatility(inpercentage)
Expectedlife(inyears)
Riskfreeinterestrate
Expecteddividendyield(inEUR)
1
Forfeiturerate
62.0
27.0
5.6
0.8
2.00
-
40.3
25.6
5.0
2.1
1.45
-
AsofyearendforeachofthetwoyearsendedDecember31,forfeituresareestimatedtobenil.
Whenestablishingtheexpectedlifeassumptionweannuallytakeintoaccountthecontractualtermsofthestock
optionsaswellashistoricalemployeeexercisebehavior.
Otherdetailswithrespecttostockoptionsaresetoutinthefollowingtable:
EUR-denominated
2013
2012
14.22
59.53
15,924
3.09
37,441
38,718
Weightedaveragefairvalueofstockoptionsgranted
Weightedaveragesharepriceattheexercisedateofstockoptions
Aggregateintrinsicvalueofstockoptionsexercised(inthousands)
Aggregateremainingcontractualtermofcurrentlyexercisableoptions(years)
Aggregateintrinsicvalueofexercisablestockoptions(inthousands)
Aggregateintrinsicvalueofoutstandingstockoptions(inthousands)
8.97
40.45
71,331
3.59
34,438
35,671
USD-denominated
2013
2012
21.74
77.25
11,086
3.12
22,781
25,369
11.87
50.88
12,684
3.17
21,882
22,433
ThenumberandweightedaverageexercisepricesofstockoptionsasofDecember31,2013,andchangesduringthe
yearthenendedarepresentedbelow:
EUR-denominated
Outstanding,January1,2013
Granted
Exercised
Forfeited
Expired
Outstanding, December 31, 2013
Exercisable,December31,2013
1
Number of options
1,128,162
28,308
(358,581)
(4,234)
(11,353)
782,302
731,452
USD-denominated
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
1
101,400
(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
USD-denominatedgrantsinclude79,153optionswithaweightedaverageexercisepriceofUSD53.07whichhavebeenassumedbyASMLaspartof
theacquisitionofCymer.
Detailswithrespecttothestockoptionsoutstandingaresetoutinthefollowingtable:
EUR-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
USD-denominated
Weighted average
Number of remaining contractual
outstanding options
life of outstanding
at December 31, 2013
options (years)
380,681
2.36
185,086
3.11
141,192
4.05
24,843
7.76
25,256
8.80
6,156
9.17
19,088
9.76
782,302
3.46
106
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
Weighted average
Number of remaining contractual
outstanding options
life of outstanding
at December 31, 2013
options (years)
20,560
1.97
133,117
0.90
4,311
4.80
80,019
3.92
93,456
5.72
1,468
7.70
9,540
8.71
1,383
9.07
43,993
9.14
18,788
9.78
406,635
4.23
In2013and2012,onlyrepurchasedshareswereusedtosatisfytheoptionrightsuponexercise.Formoreinformation
withrespecttorepurchasedshareswerefertoNote19.
SharePlans
Sharesgrantedunderourshareplansincludeathreetofouryearserviceperiodandforsomeplansperformance
conditions.ThefairvalueofsharesisdeterminedbasedontheclosingtradingpriceofourshareslistedatNYSE
EuronextAmsterdamonthegrantdate.
Wehaveeightdifferentshareplans:
Employeeplan
Cymeremployeeplan
Sharepurchaseplan
Newhireperformanceshareplan
Brionperformanceshareplan
Cymerperformanceshareplan
Seniormanagementperformanceshareplan
Boardofmanagementperformanceshareplan(seeNote31)
TheSharepurchaseplanhasnoserviceandvestingconditions.Theemployeeplansonlyhaveserviceconditions.The
otherplanshaveserviceconditionswhicharesimilarandhavevestingconditionswhicharebasedonperformance.
Detailswithrespecttosharesaresetoutinthefollowingtable:

Totalfairvalueatvestingdateofsharesvestedduringtheyear(inthousands)
Weightedaveragefairvalueofsharesgranted
EUR-denominated
2013
2012
38,280
55.83
16,179
36.15
USD-denominated
2013
2012
51,798
83.58
5,392
47.71
AsummaryofthestatusofconditionallyoutstandingsharesasofDecember31,2013,andchangesduringtheyear
endedDecember31,2013,ispresentedbelow:
EUR-denominated
Conditional shares outstanding at January 1, 2013

Granted
Vested/Issued
Forfeited
Conditional shares outstanding at December 31, 2013
1
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
USD-denominated
Number of
shares
249,094
1,852,320
(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
USD-denominatedgrantsinclude1,634,990shareswithaweightedaveragefairvalueofUSD83.94whichhavebeenassumedbyASMLaspartof
theacquisitionofCymer.
Other Plans
Employee Purchase Plan
Everyquarter,weofferourworldwidepayrollemployeestheopportunitytobuyoursharesorourstockoptionsagainst
fairvalueoutoftheirnetsalary.Thefairvalueforsharesisdeterminedbasedontheclosingpriceofourshareslistedat
NYSEEuronextAmsterdamonthegrant-date.ThefairvalueofthestockoptionsisdeterminedusingaBlack-Scholes
optionvaluationmodel.FortheassumptionsonwhichtheBlack-Scholesoptionvaluationmodelisused,seethe
disclosureaboveunderthecaption"OptionPlans".Themaximumnetamountforwhichemployeescanparticipatein
theplanamountsto10.0percentofgrossbasesalary.Whenemployeesretainthesharesand/orstockoptionsfora
minimumof12months,wewillpayouta20.0percentcashbonusonthenetinvestedamount.
107
Deferred Compensation Plans

InJuly2002,weadoptedanon-qualifieddeferredcompensationplanforourUnitedStatesemployeesthatallows
aselectgroupofmanagementorhighlycompensatedemployeestodeferaportionoftheirsalary,bonus,and
commissions.Theplanallowsustocreditadditionalamountstotheparticipantsaccountbalances.Theparticipants
dividetheirfundsamongtheinvestmentsavailableintheplan.Participantselecttoreceivetheirfundsinfutureperiods
aftertheearlieroftheiremploymentterminationortheirwithdrawalelection,atleastthreeyearsafterdeferral.There
wereminorexpensesrelatingtothisplanin2013and2012.Cymerhasasimilarnon-qualifieddeferredcompensation
planforaselectedgroupofmanagementlevelemployeesintheUnitedStatesinwhichtheemployeemayelecttodefer
receiptofcurrentcompensationfromusinordertoprovideretirementandotherbenefitsonbehalfofsuchemployee
backedbyCymerownedlifeinsurancepolicies.
AsofDecember31,2013,and2012,ourliabilityunderdeferredcompensationplanswasEUR23.5millionandEUR11.8
million,respectively.
Pension Plans
Wemaintainvariouspensionplanscoveringsubstantiallyallofouremployees.OuremployeesintheNetherlands,
5,525FTEs,participateinamulti-employerunionplan(PME)determinedinaccordancewiththecollectivebargaining
agreementseffectivefortheindustryinwhichweoperate.Thiscollectivebargainingagreementhasnoexpiration
date.Thismulti-employerunionplancoversapproximately1,296companiesandapproximately146,000contributing
members.Ourcontributiontothemulti-employerunionplanislessthan5.0percentofthetotalcontributiontotheplan
aspertheannualreportfortheyearendedDecember31,2012.Theplanmonitorsitsrisksonaglobalbasis,notby
companyoremployee,andissubjecttoregulationbyDutchgovernmentalauthorities.Bylaw(theDutchPensionAct),a
multi-employerunionplanmustbemonitoredagainstspecificcriteria,includingthecoverageratiooftheplan'sassets
toitsobligations.Thiscoverageratiomustexceed104.3percentforthetotalplan.Everycompanyparticipatingina
Dutchmulti-employerunionplancontributesapremiumcalculatedasapercentageofitstotalpensionablesalaries,
witheachcompanysubjecttothesamepercentagecontributionrate.Thepremiumcanfluctuateyearlybasedonthe
coverageratioofthemulti-employerunionplan.Thepensionrightsofeachemployeearebasedupontheemployee's
averagesalaryduringemployment.
In2009,becauseofalowcoverageratio,PMEpreparedandexecutedaso-called"RecoveryPlan"whichwas
approvedbyDeNederlandscheBank.Underthetermsoftherecoveryplan,whichterminatedattheendof2013,a
minimalcoveragepercentageof104.3percentwasrequired.Thecoveragepercentageofthemulti-employerunion
planincreasedto103.4percentasofDecember31,2013(December31,2012:93.9percent),whichisbelowthe
requirementsassetoutintherecoveryplan.Howeverwehavenoobligationwhatsoevertopayoffanydeficitsthe
pensionfundmayincur,norhaveweanyclaimtoanypotentialsurpluses.Thecoveragepercentageiscalculatedby
dividingthefundscapitalbythetotalsumofpensionliabilitiesandisbasedonactualmarketinterest.In2014the
pensionpremiumpercentagewillincreasefrom24.0to24.1.
Ournetperiodicpensioncostforthismulti-employerunionplanforanyperiodistheamountoftherequiredcontribution
forthatperiod.
Wealsoparticipateinseveraldefinedcontributionpensionplans,withourexpensesfortheseplansequalingthe
contributionsmadeintherelevantperiod.
OurpensionandretirementexpensesforallemployeesforthethreeyearsendedDecember31,2013and2012were:

(in thousands)
2013
EUR
2012
EUR
Pensionplanbasedonmulti-employerunionplan
Pensionplansbasedondefinedcontribution
40,476
19,799
34,525
15,773
Pension and retirement expenses
60,275
50,298
25. Commitments, Contingencies and Guarantees

Wehavevariouscontractualobligations,someofwhicharerequiredtoberecordedasliabilitiesinourFinancial
Statements,includinglong-andshort-termdebt.Othercontractualobligations,namelyoperatingleasecommitments,
purchaseobligationsandguarantees,aregenerallynotrequiredtoberecognizedasliabilitiesonourConsolidated
StatementofFinancialPositionbutarerequiredtobedisclosed.
108
OurcontractualobligationsasofDecember31,2013canbesummarizedasfollows:
1 year
EUR
2 year
EUR
3 year
EUR
4 year
EUR
5 year
EUR
After
5 years
EUR
45,079
Long-TermDebtObligations,includinginterestexpense 1,341,380
OperatingLeaseObligations
30,293
74,946
PurchaseObligations 2,012,913 1,894,455
Liabilityforuncertaintaxpositions,includinginterest
580
74,069
expense
44,952
21,543
85,548
945
44,907
14,081
16,223
7,680
275,640
4,803
13,772
26,105
54,155
2,539
2,382
785
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
Payments due by period

(in thousands)
Total
EUR
SeeNote20fortheamountsexcludinginterestexpense.
Long-termdebtobligationsmainlyrelatetointerestpaymentsandtheprincipalamountofourEurobonds.SeeNote20.
Operatingleaseobligationsincludeleasesofequipmentandfacilities.Leasepaymentsrecognizedasanexpensewere
EUR42.0millionandEUR41.6millionfortheyearsendedDecember31,2013and2012,respectively.
Severaloperatingleasesforourbuildingscontainpurchaseoptions,exercisableattheendofthelease,andinsome
cases,duringthetermofthelease.TheamountstobepaidifASMLwouldexercisethesepurchaseoptionsattheend
oftheleaseasofDecember31,2013canbesummarizedasfollows:
Purchase options due by period

(in thousands)
Purchaseoptions
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
-
Purchaseobligationsincludepurchasecommitmentswithsuppliersintheordinarycourseofbusiness.ASMLexpects
thatitwillhonorthesepurchaseobligationstofulfillfuturesales,inlinewiththetimingofthosefuturesales.The
generaltermsandconditionsoftheagreementsrelatingtothemajorpartofourpurchasecommitmentsasofDecember
31,2013containclausesthatenablesustodelayorcanceldeliveryoforderedgoodsandservicesuptothedates
specifiedinthecorrespondingpurchasecontracts.Thesetermsandconditionsthatwehaveagreedwithoursupply
chainpartnersgivesusadditionalflexibilitytoadaptourpurchaseobligationstoourrequirementsinlightoftheinherent
cyclicalityofthesemiconductorequipmentindustryinwhichweoperate.Weestablishaprovisionforcancellationfees
whenitisprobablethattheliabilityhasbeenincurredandtheamountofcancellationfeesisreasonablyestimable.
ASMLHoldingN.V.formsataxunitytogetherwithcertainofitsDutchsubsidiaries,forpurposesofDutchtaxlawsand
areassuchjointlyandseverallyliableforthetaxdebtsoftheunity:ThefiscalunitycomprisesasofDecember31,2013
ofASMLHoldingN.V.,ASMLNetherlandsB.V.andASMLSystemsB.V.
26. Legal Contingencies

ASMLispartytovariouslegalproceedingsgenerallyincidentaltoourbusiness.ASMLalsofacesexposuresfrom
otheractualorpotentialclaimsandlegalproceedings.Inaddition,ASML'scustomersmaybesubjecttoclaimsof
infringementfromthirdpartiesallegingthattheASMLequipmentusedbythosecustomersinthemanufactureof
semiconductorproducts,and/orthemethodsrelatingtouseoftheASMLequipment,infringesoneormorepatents
issuedtothosethirdparties.Iftheseclaimsweresuccessful,ASMLcouldberequiredtoindemnifysuchcustomersfor
someorallofthelossesincurredordamagesassessedagainstthemasaresultofthatinfringement.
WeaccrueforlegalcostsrelatedtolitigationinourConsolidatedStatementofProfitorLossatthetimewhenthe
relatedlegalservicesareactuallyprovidedtoASML.In2013,EUR3.2millionestimatedlosseswererecordedasa
chargetoourConsolidatedStatementofProfitorLoss(2012:noestimatedlosseswererecorded).
109
Fromlate2001through2004,ASMLwaspartytoaseriesofcivillitigationsandadministrativeproceedingsinwhich
NikonallegedASMLsinfringementofNikonpatentsrelatingtolithography.ASMLinturnfiledclaimsagainstNikon.
PursuanttoagreementsexecutedonDecember10,2004,ASMLandNikonagreedtosettleallpendingworldwide
patentlitigationbetweenthecompanies.Thesettlementincludedanexchangeofreleases,apatentCross-License
agreementrelatedtolithographyequipmentusedtomanufacturesemiconductordevicesandpaymentstoNikonby
ASML.AsofJanuary1,2015,thepartiesmaybringsuitforinfringementofpatentssubjecttotheNikonCross-License
Agreement,includinganyinfringementthatoccurredduringtheCross-LicenseTransitionPeriod.Damagesresulting
fromclaimsforpatentinfringementoccurringduringtheCross-LicenseTransitionPeriodarelimitedtothreepercentof
thenetsalespriceofproductsfoundtoinfringevalidandenforceablepatents.
27. Income Taxes

Thecomponentsofprovisionforincometaxesareasfollows:

(in thousands)
2013
EUR
2012
EUR
Currenttax
Deferredtax
Total
(69,974)
7,505
(62,469)
(82,105)
46,543
(35,562)
TheDutchstatutorytaxratewas25.0percentin2013and2012.Taxamountsinotherjurisdictionsarecalculatedatthe
ratesprevailingintherelevantjurisdictions.
Thereconciliationoftheprovisionforincometaxesisasfollows:

(in thousands)
2013
EUR
2012
EUR

IncometaxprovisionbasedonASML'sdomestictaxrate
Effectsoftaxratesinforeignjurisdictions
Adjustmentsinrespectoftaxexemptincome
Adjustmentsinrespectoftaxincentives
Adjustmentsinrespectofprioryears'currenttaxes
Adjustmentsinrespectofprioryears'deferredtaxes
Movementsintheliabilityforuncertaintaxpositions
Adjustmentsinrespectofnon-taxablepre-existingrelationship
Othercreditsandnon-taxableitems
Provision for income taxes
1,256,313
(314,078)
15,315
29,430
144,225
5,155
16,164
(3,484)
67,730
(22,926)
(62,469)
100.0
25.0
(1.2)
(2.3)
(11.5)
(0.4)
(1.3)
0.3
(5.4)
1.8
5.0
1,337,909
(334,477)
6,576
23,532
165,649
18,275
92,366
(7,483)
(35,562)
100.0
25.0
(0.5)
(1.8)
(12.4)
(1.4)
0.0
(6.9)
0.0
0.7
2.7
Income Tax Provision Based on ASML's Domestic Rate

TheprovisionforincometaxesbasedonASML'sdomesticrateisbasedontheDutchstatutoryincometaxrate.It
reflectstheprovisionforincometaxesthatwouldhavebeenapplicableassumingthatallofourincomeistaxable
againsttheDutchstatutorytaxrateandtherewerenopermanentdifferencesbetweentaxablebaseandfinancialresults
andnoDutchtaxincentivesareapplied.
Effects of Tax Rates in Foreign Jurisdictions
AportionofASMLsresultsarerealizedincountriesotherthantheNetherlandswheredifferenttaxratesareapplicable.
Theincreaseoftheeffectsoftaxratesinforeignjurisdictionscomparedto2012ismainlyexplainedbyashiftinthemix
oftaxableincomeacrosstaxjurisdictionsasaresultoftheacquisitionofCymerasperMay30,2013.
Adjustments in Respect of Tax Exempt Income
Incertainjurisdictionspartoftheincomegeneratedistaxexempted.
Adjustments in Respect of Tax Incentives
Adjustmentsinrespectoftaxincentivesrelatetoreducedtaxratesinseveraljurisdictions,mainlyconsistingofthe
Dutch"InnovationBox"andtheRDA.TheInnovationboxisafacilityunderDutchcorporatetaxlawpursuanttowhich
incomeassociatedwithR&Dispartiallyexemptedfromtaxation.TheRDAisataxincentiveinwhichanadditionaltax
depreciationisallowedfortangibleassetsutilizedforresearchanddevelopmentpurposes.
110
Adjustments in Respect of Prior Years Current Taxes

In2012,werecognizedataxbenefitofEUR18.3millionor1.4percentofincomebeforetaxesmainlyattributabletothe
applicationoftaxexemptionsforprioryears,whichhadafavorableeffectontheeffectivetaxratefor2012.
Adjustments in Respect of Prior Years Deferred Taxes
In2013,werecognizedataxbenefitofEUR16.2millionasaresultofapartlyreleaseofavaluationallowanceforNID
creditsorNIDstocktotheextendweexpectfuturetaxableprofitstorealizetheseNIDcreditsbeforeexpirationofthose
credits.
Movements in the Liability for Uncertain Tax Positions
In2012,theeffectivetaxratewasimpactedbyataxbenefitofEUR92.4millionor6.9percentofincomebeforeincome
taxesmainlyasaresultofthesuccessfulconclusionoftaxauditsindifferentjurisdictions(EUR92.1million)whereas
themovementintheliabilityforuncertaintaxpositionsin2013isconsideredtobelimited.
Adjustments in Respect of Non-Taxable Pre-Existing Relationships
In2013,theeffectivetaxratewasimpactedbythesettlementgainrecognizedasaresultoftheeffectivelysettledpreexistingrelationshipsrelatedtotheacquisitionofCymer(werefertoNote4)asthisgaindoesnotrepresentataxable
itemforincometaxpurposes.
Other Credits and Non-taxable Items
Othercreditsandnon-taxableitemsreflecttheimpactonstatutoryratesofpermanentnon-taxableitemssuchasnondeductibletaxes,non-deductibleinterestexpense,andnon-deductiblemealsandentertainmentexpenses,aswellas
theimpactof(thereversalof)varioustaxcreditsonourprovisionforincometaxes.
Income Taxes Recognized Directly in Equity
Incometaxesrecognizeddirectlyinequity(includingOCI)areasfollows:
Income tax recognized in equity

(in thousands)
2013
EUR
2012
EUR
Current tax
Issuanceofshares
(759)
(3,110)
(1,066)
(2,116)
Deferred tax
Share-basedpayments
Income tax recognized in equity
(3,327)
(7,196)
(1,882)
(5,064)
Liability for Uncertain Tax Positions and Deferred Taxes

ThetotaldeferredtaxpositionandliabilityforuncertaintaxpositionsrecordedontheStatementOfFinancialPosition
areasfollows:
As of December 31
(in thousands)
2013
EUR
2012
EUR
Liabilityforuncertaintaxpositions
Deferredtaxposition
Total
(74,069)
(63,092)
(137,161)
(59,967)
115,771
55,804
Liability for Uncertain Tax Positions

Thecalculationofourliabilityforuncertaintaxpositionsinvolvesuncertaintiesintheapplicationofcomplextax
laws.Ourestimateforthepotentialoutcomeofanyuncertaintaxissueishighlyjudgmental.Webelievethatwehave
adequatelyprovidedforuncertaintaxpositions.However,settlementoftheseuncertaintaxpositionsinamanner
inconsistentwithourexpectationscouldhaveamaterialimpactonourFinancialStatements.
ConsistentwiththeprovisionsofIAS12,asofDecember31,2013,ASMLhasaliabilityforuncertaintaxpositionsof
EUR74.1million(2012:EUR60.0million)whichisclassifiedasnon-currentdeferredandothertaxliabilities.Thetotal
liabilityforuncertaintaxpositions,ifreversed,wouldhaveafavorableeffectonoureffectivetaxrate.
111
Areconciliationofthebeginningandendingbalanceoftheliabilityforuncertaintaxpositionsisasfollows:
As of December 31
(in millions)
2013
EUR
2012
EUR
Balance,January1
Grossincreasestaxpositionsinpriorperiod
Grossdecreasestaxpositionsinpriorperiod
Grossincreasestaxpositionsincurrentperiod
Increaseresultingfromacquisition
Settlements
Lapseofstatuteoflimitations
Total liability for uncertain tax positions
59,967
6,045
(2,025)
6,796
6,514
(2,964)
(264)
74,069
155,432
4,297
(92,521)
3,255
(10,496)
59,967
For2012thegrossdecreasesintaxpositionsinpriorperiodmainlyrelatestothereleaseoftaxpositionsafter
succesfullconclusionoftaxauditsindifferentjurisdictions(EUR92.5million).
Webelieveourallowancesfortaxcontingenciesareappropriate.Weestimatethatthetotalliabilityforuncertaintax
positionswilldecreasebyEUR0.6millionwithinthenext12months.Theestimatedchangestotheliabilityforuncertain
taxpositionswithinthenext12monthsaremainlyduetoexpectedsettlementswithtaxauthorities.
Wearesubjecttotaxauditsincertainofourmajortaxjurisdictions,foryearsfromandincluding2011onwardsin
HongKong,andforyearsfromandincluding2001onwardsintheUnitedStates.Inthecourseofsuchaudits,localtax
authoritiesmaychallengethepositionstakenbyus.
Deferred Tax Position
Thechangesindeferredincometaxassetsandliabilitiesconsistofthefollowingelements:
Changes in deferred tax assets and liabilities

(in thousands)
2013
EUR
2012
EUR
Balance, January 1
Statementofprofitorloss
Equity
Exchangedifferences
Balance, December 31
115,771
(193,861)
11,718
3,327
(47)
(63,092)
164,389
(45,593)
1,882
(4,907)
115,771
ThecompositionoftotaldeferredtaxassetsandliabilitiesintheConsolidatedFinancialStatementsisasfollows:
Deferred tax assets
Composition of temporary differences

(in thousands)
Unrealizedprofitsresultingfromintercompany
transactions
Inventories
Capitalizedresearchanddevelopmentexpenditures
Deferredrevenue
Provisions
Installationandwarrantyreserve
Taxeffectcarry-forwardlosses
Fixedassets
Restructuringandimpairment
1
Alternativeminimumtaxcredits
Share-basedpayments
Othertemporarydifferences
2
Total
1
2
Acquisitions
through Consolidated
business Statement of
January 1,
2013 combinations profit or loss
EUR
EUR
EUR
Equity
EUR
Exchange
differences
EUR
December
31, 2013
EUR
60,174
14,467
(11,893)
(4,671)
58,077
28,167
8,669
20,572
21,528
7,151
5,557
7,798
4,336
5,227
5,493
13,966
188,638
10,258
41,679
7,148
754
4,140
16,885
2,234
97,565
9,269
(8,669)
(43,035)
17,960
(174)
61,551
325
(791)
1,349
4,550
(20)
30,422
3,327
3,327
(1,033)
(2,807)
(1,176)
(275)
(580)
(478)
(184)
(234)
(1,271)
(4,519)
(17,228)
46,661
16,409
45,460
6,702
67,282
11,785
3,361
6,342
28,984
11,661
302,724
AlternativeminimumtaxcreditsrelatetoprepaidUStaxeswhicharecreditedagainstfuturetaxableprofitsafterthecarry-forwardlossesused.
UnrecognizedtaxassetsasatDecember31,2013amountedtoEUR25.0million(2012:EUR30.5million)
112
Deferred tax liabilities

(in thousands)
Intangiblefixedassets
Fixedassets
Borrowingcosts
Total
Acquisitions
through Consolidated
business Statement of
January 1,
2013 combinations profit or loss
EUR
EUR
EUR
(44,256)
(25,890)
(1,958)
(763)
(72,867)
(286,337)
(4,786)
(303)
(291,426)
Exchange
Equity differences
EUR
EUR
(28,000)
8,730
12,517
135
(12,086)
(18,704)
560
15,702
567
352
17,181
December
31, 2013
EUR
(71,696)
(261,905)
(17,592)
(1,823)
(12,800)
(365,816)
Deferred tax assets

(in thousands)
Consolidated
January 1, Statement of
2012 profit or loss
EUR
EUR
Unrealizedprofitsresultingfromintercompanytransactions
Inventories
Deferredrevenue
Provisions
Installationandwarrantyreserve
Taxeffectcarry-forwardlosses
Fixedassets
Restructuringandimpairment
1
Alternativeminimumtaxcredits
Share-basedpayments
Total
1
60,327
34,935
25,022
23,892
14,515
8,772
7,735
6,495
5,146
5,028
3,660
16,728
212,255
2,260
(6,468)
(16,601)
(3,083)
7,296
(1,508)
(2,219)
1,454
(733)
229
49
(1,138)
(20,462)
Equity
EUR
1,882
1,882
Exchange December 31,

differences
2012
EUR
EUR
(2,413)
(300)
248
(237)
(283)
(113)
41
(151)
(77)
(30)
(98)
(1,624)
(5,037)
60,174
28,167
8,669
20,572
21,528
7,151
5,557
7,798
4,336
5,227
5,493
13,966
188,638
AlternativeminimumtaxcreditsrelatetoprepaidUStaxeswhicharecreditedagainstfuturetaxableprofitsafterthecarry-forwardlossesused.
Deferred tax liabilities

(in thousands)
Consolidated
January 1, Statement of
2012 profit or loss
EUR
EUR
Fixedassets
Borrowingcosts
Total
(26,357)
(19,108)
(1,554)
(847)
(47,866)
113
(17,891)
(6,965)
(404)
129
(25,131)
Equity
EUR
-
Exchange December 31,

differences
2012
EUR
EUR
(8)
183
(45)
130
(44,256)
(25,890)
(1,958)
(763)
(72,867)
Tax Effect Carry-forward Losses

Deferredtaxassetsfromcarry-forwardlossesresultpredominantlyfromnetoperatinglosscarry-forwardsincurredin
theUnitedStatesandNIDstockinBelgium.
NetoperatinglossesqualifiedastaxlossesunderUnitedStatesfederaltaxlawswereincurredduring2013.Net
operatinglossesqualifyingastaxlossesunderUnitedStatesfederaltaxlawsincurredbyUnitedStatesgroup
companiescaningeneralbeoffsetagainstfutureprofitsrealizedinthe20yearsfollowingtheyearinwhichthelosses
areincurred.NetoperatinglossesqualifiedastaxlossesunderUnitedStatesstatetaxlawsincurredbyUnitedStates
groupcompaniescaningeneralbeoffsetagainstfutureprofitsrealizedinthe5to20yearsfollowingtheyearinwhich
thelossesareincurred.TheperiodofnetoperatinglosscarryforwardforUnitedStatesstatetaxpurposesdepends
onthestateinwhichthetaxlossarose.OurabilitytouseUnitedStatesstatetaxlosscarryforwardsinexistenceat
December31,2013,issubjecttovaryingstatestatutes(providingforperiodsofbetween5and20years)taxassets
arerecognizedtotheextendthatitisprobablethatsufficienttaxableprofitsareavailable.Thetotalamountoflosses
carriedforwardunderUnitedStatesfederaltaxlawsasofDecember31,2013,isEUR67.5milliontaxbasisorEUR
23.6milliontaxeffect.ThetotalamountoflossescarriedforwardunderUnitedStatesstatetaxlawsasofDecember31,
2013,isEUR254.3milliontaxbasisorEUR7.9milliontaxeffect.
NIDstockinBelgiumcangenerallybeoffsetagainstfutureprofitsrealizedinthe7yearsfollowingtheyearinwhichthe
NIDStockoccurs.ThetotalamountofNIDstockisEUR47.6milliontaxablebaseandEUR16.2milliontaxeffect.
28. Subsidiaries
DetailsofourmainsubsidiariesatDecember31,2013areasfollows:
Legal Entity
Country of Incorporation
1
Main subsidiaries of ASML Holding N.V. :

ASMLNetherlandsB.V.
ASMLMaskToolsB.V.
ASMLSystemsB.V.
ASMLGermanyGmbH
ASMLFranceS.a.r.l.
ASML(UK)Ltd.
ASMLIsrael(2001)Ltd.
ASMLIrelandLtd.
ASMLItalyS.r.l.
ASMLHongKongLtd.
ASMLSingaporePte.Ltd.
ASMLKoreaCo.Ltd.
ASMLJapanCo.Ltd.
ASMLLithographyFacilitiesScienceandTechnologyCo.Ltd.
ASMLTaiwanLtd.
ASMLEquipmentMalaysiaSdn.Bhd.
ASMLBelgiumBVBA
ASMLBelgiumFinanceCV
BrionTechnologies(Shenzhen)Co.Ltd.
BrionTechnologies,Inc.
ASMLUS,Inc.
ASMLCapitalUS,Inc.
ASMLMaskTools,Inc.
ASMLParticipationsUSInc.
LehrerPearson,Inc.
ASMLVentures1,Inc.
Cymer,LLC.
eLithLLC.
ASMLHongKongLogisticServicesLtd.
CymerB.V.
CymerJapan,Inc.
CymerKorea,Inc.
CymerSingaporePteLtd.
CymerSoutheastAsiaLtd.
CymerSemiconductorEquipment(Shanghai)Co.Ltd.
TCZ,LLC.
TCZPteLtd.
TCZGmbH
1
Netherlands(Veldhoven)
Germany(Dresden)
France(Montbonnot)
UK(Paisley(Scotland))
Israel(Ramat-Gan)
Ireland(Dublin)
Italy(Avezzano)
HongKongSAR
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(Dover,Delaware)
US(Reno,Nevada)
HongKongSAR
Netherlands(Amsterdam)
Japan(Tokyo)
Korea(Kyunggi-Do)
Singapore(Singapore)
Taiwan(Hsinchu)
China(Pudong)
US(Reno,Nevada)
Singapore(Singapore)
Germany(Oberkochen)
Allofoursubsidiariesare(directlyorindirectly)wholly-owned,withexceptionofeLithLLC,inwhichweholdaninterestof50percent.
114
29. Segment Disclosure

SegmentinformationhasbeenpreparedinaccordancewithIFRS8,OperatingSegments.
ASMLhasonereportablesegment,forthedevelopment,production,marketing,saleandservicingofadvanced
semiconductorequipmentsystemsexclusivelyconsistingoflithographyrelatedsystems.InprioryearsourCEOwas
identifiedasCODM.AsaresultofASML'schangeinleadershipasannouncedonApril17,2013,ourCEOandCTO
havebeenjointlyidentifiedastheCODM.BoththeCEOandCTOreviewtheoperatingresultstomakedecisionsabout
allocatingresourcesandassessingperformance.Thechangeinleadershipdidnotresultinachangeinreportable
segmentscomparedto2012.
Managementreportingincludesnetsystemsalesfiguresofnewandusedsystemsandincludessalespertechnology.
Netsystemsalesfornewandusedsystemswereasfollows:

(in thousands)
2013
EUR
2012
EUR
Newsystems
Usedsystems
Net system sales
3,890,154
102,975
3,993,129
3,620,260
181,372
3,801,632
TheincreaseinnetsystemsalesofEUR191.5million,or5.0percent,toEUR3,993.1millionin2013fromEUR
3,801.6millionin2012ismainlycausedbyanincreasedASPwhichmorethanoffsetstheloweramountofsystemssold.
Netsalesbytechnologywasasfollows:

(in thousands)
2013
EUV
ArFi
ArFdry
KrF
I-line
Total
2012
EUV
ArFi
ArFdry
KrF
I-line
Total
115
Net system sales

in Units
Net system sales

in EUR
1
77
2
64
13
157
60,100
3,120,719
38,019
720,053
54,238
3,993,129
1
72
4
78
15
170
43,700
2,715,221
81,428
908,244
53,039
3,801,632
SegmentperformanceisevaluatedbyourCODMbasedonUSGAAPnetincomeorlosswhichincertainrespect,as
explainedinthetablebelow,ismeasureddifferentlyfromnetincomeorlossreportedinourConsolidatedFinancial
StatementswhicharebasedonIFRS.

(in thousands)
2013
EUR
2012
EUR
Netsystemsales
3,993,129
1,252,197
3,801,632
929,923
Total net sales

Costofsystemsales
Costofserviceandfieldoptionsales
5,245,326
(2,233,621)
(834,443)
4,731,555
(2,198,921)
(527,377)
Total cost of sales
(3,068,064)
2,726,298
Gross profit
Otherincome
2,177,262
64,456
(882,029)
(311,741)
2,005,257
(589,182)
(259,301)
Income from operations

Interestandother,net
1,047,948
(24,471)
1,156,774
(6,196)

Provisionforincometaxes
1,023,477
(7,987)
1,150,578
(4,262)
Net income
DifferencesUSGAAPandIFRS
Net income based on IFRS
1,015,490
178,354
1,193,844
1,146,316
156,031
1,302,347
SegmentperformanceisalsoevaluatedbyourmanagementbasedonU.S.GAAPfortotalassets.Thetablebelow
presentsthemeasurementsandthereconciliationtototalassetsintheConsolidatedStatementofFinancialPosition:
As of December 31
(in thousands)
Totalassetsformanagementreportingpurposes
DifferencesUSGAAPandIFRS
Total assets based on IFRS
2013
EUR
11,513,730
689,635
12,203,365
2012
EUR
7,410,478
472,577
7,883,055
Forgeographicalreporting,netsalesareattributedtothegeographiclocationinwhichthecustomersfacilitiesare
located.Totalnon-currentassetsareattributedtothegeographiclocationinwhichtheseassetsarelocatedandexclude
deferredtaxassets,financialinstruments,post-employmentbenefitassetsandrightsarisingunderinsurancecontracts.
116
Netsalesandnon-currentassetsbygeographicregionwereasfollows:

(in thousands)
2013
Japan
Korea
Singapore
Taiwan
RestofAsia
Netherlands
RestofEurope
UnitedStates
Total
Net sales
EUR
Non-current assets
EUR
201,664
1,286,509
139,313
2,221,426
478,234
11,525
187,030
719,625
5,245,326
2,679
13,347
837
48,076
3,427
1,783,999
1,830
3,084,872
4,939,067
2012
Japan
Korea
Singapore
Taiwan
RestofAsia
Netherlands
RestofEurope
UnitedStates
Total
292,309
1,276,304
98,554
1,479,768
197,262
256,192
1,131,166
4,731,555
40,856
17,664
968
50,372
2,073
1,482,154
1,599
298,753
1,894,439
In2013,netsalestothelargestcustomeraccountedforEUR2,058.6million,or39.2percent,ofnetsales(2012:EUR
1,236.1million,or26.1percent,ofnetsales).Ourthreelargestcustomers(basedonnetsales)accountedforEUR861.4
million,or73.3percent,ofaccountsreceivableandfinancereceivablesatDecember31,2013,comparedwithEUR
535.1million,or58.9percent,atDecember31,2012.
Substantiallyallofoursaleswereexportsalesin2013and2012.
30. Selected Operating Expenses and Additional Information

Personnelexpensesforallpayrollemployeeswere:

(in thousands)
Wagesandsalaries
Socialsecurityexpenses
Pensionandretirementexpenses
Share-basedpayments
Personnel expenses
2013
EUR
835,563
69,839
60,275
47,422
1,013,099
2012
EUR
711,039
58,180
50,298
18,714
838,231
TheaveragenumberofpayrollemployeesinFTEsduring2013and2012was9,540and8,140,respectively.Thetotal
numberofpayrollandtemporaryemployeesinFTEspersectorwas:
As of December 31
CustomerSupport
SG&A
IndustrialEngineering
Manufacturing&Logistics
R&D
Total employees (in FTEs)
Less:Temporaryemployees(inFTEs)
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
TheaveragenumberofpayrollemployeesinFTEsinouroperationsintheNetherlandsduring2013and2012was5,112
and4,620,respectively.
117
31. Board of Management and Supervisory Board Remuneration

TheremunerationofthemembersoftheBoardofManagementisdeterminedbytheSupervisoryBoardontheadvice
oftheRemunerationCommittee.The2010RemunerationPolicy,asadoptedbytheGeneralMeetingofShareholderson
March24,2010,wasnotchangedin2013.
The2010RemunerationPolicyenablesASMLtocontinuetoattract,rewardandretainqualifiedandexperienced
industryprofessionalsinaninternationallabormarket.Theremunerationstructureandlevelsareassessedagainsta
referencemarketbybenchmarking.Thetotalremunerationin2013consistsofbasesalary,short-termperformance
incentives(incash),long-termperformanceincentives(inshares)andotherbenefits.
The 2013 Appointment Amendment and 2014 Mutual Consent Termination of the Employment Agreement with Mr.
Meurice on the Conclusion of His Activities as CEO
TorealizeareliabletransferofhisresponsibilitiestoMessrs.WenninkandVandenBrink,theSupervisoryBoardandMr.
MeuriceagreedonanamendedroleasperJuly1,2013,atwhichdateMr.MeuriceceasedtobeamemberoftheBoard
ofManagement.Thischangeisduetoanaturaltransitionofresponsibilitiesandisnotduetoperformance,expected
adverseevolutionofthecompanyordifferenceofopinion.
TheemploymentagreementofMr.MeuricewillcontinueuntilMarch31,2014.Untilthen,Mr.Meuricewillremain
availabletoprovideadvicetotheSupervisoryBoardand/orBoardofManagementuponrequest,keepaprofessional
interfacewithkeydecisionmakersatcustomersandpartnersandpersonallydrivetheexecutionofanumberof
strategicprojects.
ThebenefitsundertheemploymentcontractwillbehonoreduntilMarch31,2014,inaccordancewiththe2010
RemunerationPolicy.Therewillbenoseverancepaymentgiventheconclusionoftheemploymentagreementbymutual
consent.
Thenumberofsharestobeawardedfromtheperformancesharesgrantedin2011,2012and2013havebeencalculated
basedontheperformanceofthelastthreecompletedyearsofassignmentandontheintentionofboththeSupervisory
BoardandMr.Meuricetohaveafairfinalsettlementupontermination,recognizingtheaddedvalueofMr.Meuriceto
ASML,ensuringasmoothtransitiontothePresidentsandwaivinganypotentialbenefitsupontermination.Asaresult,
thenumberofsharestobeawarded,subjecttocontinuedemploymenttoDecember31,2013,willbe95percentof
thesharesgrantedin2011,2012and2013basedontheactualperformanceintheperiod2010-2012.Theoriginal
grantdatefairvaluesfortheseconditionallygrantedperformancesharesareallocatedovertheperioduntiltherevised
estimatedvestingin2014.
Apro-ratedcompensation(consistingofbasesalaryandattargetshorttermincentive)willapplyfortheperiodJanuary
throughMarch2014.Inaddition,fortheservicesinthefirstquarterof2014,theshare-basedcompensationelement
ofMr.Meurice'sremunerationwillbesettledincashandcalculatedas15,167.75shares,multipliedbytheshareprice
effectiveasofthedateofexit.TheCompanywillreimbursereasonablerepatriationandmovingcostsmade.
Remuneration of the Presidents
PerJuly1,2013,basesalaryofthePresidents,Messrs.Wennink(PresidentandCEO)andVandenBrink(Presidentand
CTO),wasincreased.TheSTItargetlevelforMr.WenninkandMr.VandenBrinkremainedat60percent.Nochanges
weremadetothePresidents'conditionalLTIawardsforthefinancialyear2013.
Messrs.WenninkandVandenBrinkholdemploymentcontractsforanindefiniteperiodoftime,but,uponnotificationto
the2014GeneralMeetingofShareholders,theirappointmenttermwillbechangedfromanindefinitetermtoadefinite
termoffouryears.Ifany,theseverancepaymentatterminationofemploymentwillnotexceedone-yearbasesalary.
Appointment New CFO
PerDecember1,2013Mr.NicklwasappointedasExecutiveVicePresidentandCFO.AlthoughMr.Nicklwillonlybe
formallyappointedasmemberoftheBoardofManagementuponnotificationtotheGeneralMeetingofShareholdersto
beheldonApril23,2014,his2013remunerationdetailsareincludedinthe2013compensationtable.Theremuneration
packageofMr.Nicklisfullyinlinewiththe2014RemunerationPolicyandtheapplicableCorporateGovernance
standards.Mr.Nicklwillbeappointedforaperiodoffouryearsunderamanagementservicesagreement.Ifany,
severanceisrestrictedtoonetimebasesalary.
ASMLcompensatedpartofthesharesandstockoptionsthatwereforfeitedwhenMr.Nickllefthisformercompany
intheUnitedStates.Thiscompensationtakestheformofamaximumof56,000performancerelatedshares,tobe
rewardedin2014,subjecttotheperformanceconditionsandathreeyearvestingperiodasapplicableunderthe
118
2014RemunerationPolicy.Theforfeitedshareandoptionawardshadavestingperiodwhichwasshorterthanthe
performanceperiodappliedbyASMLandthemajorityofoutstandingawardswerenotperformancerelated.
TotalDirectCompensation,PensionandOtherBenefits
TheremunerationofthemembersoftheBoardofManagementandformermembersoftheBoardOfManagementin
2013,2012and2011wasasfollows:
P.T.F.M.
Wennink
M.A.vanden
Brink
W.Nickl
F.J.vanHout
F.J.M.
SchneiderMaunoury
Year
2013
2012
2011
2013
2012
2011
2013
2012
2011
2013
2012
2011
2013
2012
2011
Fixed
Short-term
(variable)
Base
salary
STI
1
(Cash)
LTI (share
2
awards)
Subtotal
Pension
EUR
407,673
304,800
291,043
416,945
322,800
308,339
10
65,000
273,976
267,000
255,259
266,797
259,800
248,102
EUR
3
1,349,115
4
1,289,415
5
875,493
3
1,429,197
4
1,366,039
5
927,912
3
1,182,907
4
1,131,676
832,201
3
1,150,392
1,144,137
676,945
EUR
2,438,288
2,102,215
1,654,536
2,543,142
2,226,839
1,753,251
115,000
1,914,883
1,843,676
1,515,460
1,863,189
1,836,937
1,341,047
EUR
106,033
79,190
85,994
112,481
83,990
91,243
4,547
71,164
69,110
75,134
69,244
67,190
56,475
EUR
681,500
508,000
488,000
697,000
538,000
517,000
50,000
458,000
445,000
428,000
446,000
433,000
416,000
Fixed Short-term
(variable)
Former
Financial
Board of
Year
Management
E.Meurice
2013
2012
2011
1
2
6
7
8
9
10
11
12
Long-term
Subtotal
(variable) Remuneration
Long-term
Subtotal
(variable) Remuneration
Base
salary
EUR
STI
1
(Cash)
EUR
LTI (share
2
awards)
EUR
843,000
818,000
787,000
630,353
613,500
586,709
5,837,399
4
2,079,601
5
1,413,218
3,11
Total
Remuneration
Other
Compensation
Pension
7
Premium
EUR
94,455
181,826
9,735
4,290
Other benefits
and expense
8
reimbursement
EUR
45,848
46,275
44,669
45,920
47,540
45,502
12,936
42,910
37,313
35,190
28,426
28,889
28,313
Other
Subtotal
EUR
Pension
EUR
Compensation
Pension
7
Premium
EUR
7,310,752
3,511,101
2,786,927
172,593
167,427
140,113
88,050
Total
12
EUR
2,590,169
2,227,680
1,879,654
2,701,543
2,358,369
2,071,822
132,483
2,028,957
1,950,099
1,635,519
1,960,859
1,933,016
1,430,125
Total
Remuneration
Other benefits
and expense
8
reimbursement
EUR
Total
EUR
107,500
127,116
136,765
7,590,845
3,805,644
3,151,855
12
ActualSTI(cash)chargeabletothecompanyinthefinancialyear(i.e.STIrelatingtoperformanceinthecurrentyearbutpaidoutinthenextfinancial
year).
TheremunerationreportedaspartoftheLTI(shareawards)isbasedoncostincurredunderIFRS.Thecostsofshareawardsarechargedtothe
ConsolidatedStatementofProfitorLossoverthe3yearvestingperiodbasedonthemaximumachievablenumberofshareawards.Thereforethe
costsfore.g.thefinancialyear2013includecostsoftheBoardofManagementperformanceshareplan2013,2012and2011.Furthermorethe
differencebetweentheamountbasedonthemaximumachievablenumberofshareawardsandtheamountbasedontheactualnumberofshare
awardsthatvest,isreleasedtotheConsolidatedStatementofProfitorLossinthefinancialyearinwhichtheshareawardsvest.
TheremunerationreportedaspartoftheLTI(shareawards)fortheyear2013includesanadjustmentfortheBoardofManagementperformance
shareplan2010basedontheactualnumberofshareawardsvestedin2013.TheadjustmentforMrWennink,MrvandenBrink,MrvanHout,Mr.
Schneider-MaunouryandforMrMeuriceamountstoEUR-63,035,EUR-66,795,EUR-55,376,EUR-53,748,EUR-101,740,respectively.
shareplan2009basedontheactualnumberofshareawardsvestedin2012.TheadjustmentforMrWennink,MrvandenBrink,MrvanHoutandfor
MrMeuriceamountstoEUR-65,785,EUR-69,831,EUR-57,838,EUR-106,266,respectively.
shareplan2008basedontheactualnumberofshareawardsvestedin2011.TheadjustmentforMrWennink,MrvandenBrinkandforMrMeurice
amountstoEUR-91,645,EUR-97,281,EUR-148,040,respectively.
Thissubtotalreflectsbasesalary,STI(cash)andLTI(shareawards).
In2011,compensationwaspaidtotheBoardofManagementregardingtheriskpremiumforspouse/orphanpensions,toaligntheBoardof
Managementpensionarrangementwithseniormanagement.Thisconcernedareimbursementforriskpremiumsthatwereerroneouslypaidbythe
participantsinthepast.
Otherbenefitsandexpensereimbursementaregrossamountsandmayincludehousingcosts,companycarcosts,travelexpenses,socialsecurity
costs,healthanddisabilityinsurancecostsandrepresentationallowances.
Mr.NicklonlyjoinedASMLinDecember2013andwasnotpartoftheBoardofManagementashisappointmentisstillsubjecttothenotificationof
theGeneralMeetingofShareholders2014.
Mr.Nicklispartlycompensatedforhislossof2013variableincomeathispreviousemployer;hereceivesfromASMLEuro65,000permonthfor
everymonthinfunctionin2013.
TheremunerationreportedaspartoftheLTI(shareawards)fortheyear2013mainlyincludescostsrelatedtotheaccelleratedvestingoftheshare
awardsfortheshareplans2011,2012and2013.
ThistotalreflectsthesubtotalRemuneration,pension,compensationpensionpremiumandtheotherbenefitsandexpensereimbursement.
Short-term Incentive
Theannualperformance-relatedcashincentivehasanon-targetlevelof75.0percentofbasesalaryfortheCEOand
60.0percentfortheothermembersoftheBoardofManagement.Pleasenotethattoensureasmoothtransitiontothe
2014RemunerationPolicy,theCEOhasacceptedatargetSTIof60percentperJuly1,2013inaccordancewiththe
2014RemunerationPolicyandtherewithfollowthetargetandmaximumSTIpercentagesthatapplytotheother
membersoftheBoardofManagement.
119
Thepayoutsarepro-ratedonalinearbasistothelevelofachievementofsixperformancecriteria.Foreach
performancecriterionchallengingbutrealistictargetsareset(bothforontargetandthresholdperformancefor
belowthresholdperformancefortherespectiveperformancecriterionnopayoutwilloccur).Theperformancetarget
settingandperformanceevaluationisconductedincooperationwiththerelevantcommitteesoftheSupervisoryBoard.
TechnologytargetissetandevaluatedincooperationwiththeTechnologyandStrategyCommittee,whereasfinancial
targetsaresetandevaluatedincooperationwiththeAuditCommittee.TheCompanysexternalauditorisengaged
toverifytheconsistentapplicationoftheapprovedcalculationmethodandtheaccuracyofthecalculationsofSTI
outcomes.
Ofthefivequantitativeperformancecriteria(number1-5),threearebasedontheachievementofmeasurablefinancial
targets,oneontechnologybasedobjectivesandoneonachievementsinthemarketplace.TheTechnologyLeadership
Indexincludesquantitativeandqualitativeelements.Thequalitativetarget(number6)isbasedontheachievementof
agreedkeyobjectives.
Theweightingofthequantitativecriteria,butalsotheemphasisofspecificdriversofthesecriteria,maychangefrom
timetotimeinordertobefullyalignedwiththestrategicprioritiesinanygivenyear.Alltargetsweresetinadvanceand
noretrospectivetargetsettinghastakenplace.Theoverallpayoutisannualandthecashincentiveisaccruedduringthe
performanceperiod.
Insettingtheshort-termperformancecriteriafor2013,theSupervisoryBoarddecidedtosetacashrelatedtarget
for2013consistingof:OperatingCashFlowH12013(weight25percent),OperatingCashFlowH22013(weight25
percent)andCashConversionCycleFY2013(weighted50percent).Inanticipationofthe2014RemunerationPolicy,
theSupervisoryBoarddeviatesfromthe2010PolicyanddecidedtosettheTechnologyLeadershipIndextargetonan
annualinsteadofonasemi-annualbasis.Theshort-termqualitativetargetfor2013wastransferredtothelong-term
incentiveandexcludedfromtheSTI.TherelativeweightsoftheremainingSTImeasureschangedaccordingly.
EffectiveJanuary1,2013thebasesalaryincreasedbythreepercentforallmembersoftheBoardofManagementwhich
alsoimpactsthevariableremuneration,i.e.theSTIandLTI,becauseitiscalculatedasapercentageofbasesalary.
In2013,theshort-termperformancecriteria(4outof5performancecriteriawereachievedontargetorabovetarget),
and1performancecriteriawasachievedbetweentargetandthresholdlevel),anactualshort-termperformancecash
payoutof99.7percentofthetargetSTI(of75percentor60percentrespectivelyofbasesalary)hasbeenawarded.
ThisresultsinacashpayoutofEUR1,995,744representing74.8percentofMr.Meurice'sbasesalary,59.8percentof
Messrs.Wennink's,VandenBrink's,vanHout'sandSchneider-Maunoury'sbasesalary.
Long-term Incentive
ThemembersoftheBoardofManagementareeligibletoreceiveperformanceshares,whichwillbeawardedannually
undertheconditionoffulfillmentofpredeterminedperformancetargets.Performancerelativetothesetargetsis
measuredoveraperiodofthreecalendaryears.Theperformancemeasuresforobtainingperformancetargetswillbe
ASMLsrelativeROAICpositioncomparedthepeergroup(weighted80.0percent)andaqualitativetargetrelatedto
ASMLslong-termabilitytokeepperformingathighstandards(weighted20.0percent).
ASMLdefinesandsetsstretchingtargets.Themaximumnumberofperformancesharestobeconditionallyawarded
equals146.25percentofbasesalarydividedbythevalueofoneperformanceshare(i.e.reflectingmaximum
achievement).Forontargetachievement,thevalueofperformanceshareswillbe80percentofbasesalary.
ThecosttotheCompanyiscalculatedbasedonthemaximumamountofsharesthatcanbeawardedandspreadover
thethree-yearperformanceperiod.Anydifferencebetweentheactualachievementafterthreeyearsandthemaximum
achievementwillbeadjustedafterthefinalperformanceyear.
Oncethesharesareunconditionallyawardedafterfulfillmentoftheperformanceconditions,theBoardofManagement
memberwillretainthesharesforatleasttwoyearsafterthedatetheawardbecomesunconditionaloruntilthe
terminationofemployment,whicheverperiodisshorter.TheperiodbeforetheBoardofManagementmemberobtains
fullrightstotheshareswillbefiveyearsintotal.
DetailsofperformancesharesgrantedtomembersoftheBoardofManagementareasfollows:
120
Board of management Grant date
P.T.F.M.
Wennink
M.A.van
denBrink
W.Nickl
F.J.M.
SchneiderMaunoury
Former Board of
Management
E.Meurice
Full control
Number of
shares at
grant date
Fair value at Vesting date

1
grant date
4/19/2013
4/18/2012
4/13/2011
2/1/2010
2/2/2009
2/4/2008
4/19/2013
4/18/2012
4/13/2011
2/1/2010
2/2/2009
2/4/2008
Conditional
Conditional
Conditional
Unconditional
Unconditional
Unconditional
Conditional
Conditional
Conditional
Unconditional
Unconditional
Unconditional
No
No
No
No
No
Yes
No
No
No
No
No
Yes
35,035
45,689
54,974
54,974
35,287
35,287
37,111
48,387
58,256
58,256
37,458
37,458
EUR
55.47
37.33
28.29
22.93
13.05
18.18
55.47
37.33
28.29
22.93
13.05
18.18
4/19/2016
4/18/2015
4/13/2014
2/1/2013
2/2/2012
2/4/2011
4/19/2016
4/18/2015
4/13/2014
2/1/2013
2/2/2012
2/4/2011
4/19/2013
Conditional
4/18/2012
Conditional
4/13/2011
Conditional
2/1/2010 Unconditional
4/19/2013
Conditional
4/18/2012
Conditional
4/13/2011
Conditional
No
No
No
No
No
No
No
No
No
30,681
40,023
48,293
48,293
31,021
29,877
38,944
46,886
46,886
55.47
37.33
28.29
22.93
13.05
55.47
37.33
28.29
22.93
4/19/2016
4/18/2015
4/13/2014
2/1/2013
2/2/2012
4/19/2016
4/18/2015
4/13/2014
2/1/2013
Number of
shares at
vesting date
52,225
2
30,246
2
30,246
55,343
2
32,107
2
32,107
End of lock-up
date
4/19/2018
4/18/2017
4/13/2016
2/1/2015
2/2/2014
2/4/2013
4/19/2018
4/18/2017
4/13/2016
2/1/2015
2/2/2014
2/4/2013
F.J.
vanHout
1
2
Status
Grant date
Status
Full control
Number of
shares at
grant date
4/19/2013
4/18/2012
4/13/2011
2/1/2010
2/1/2010
2/1/2010
2/2/2009
2/2/2009
2/2/2009
2/4/2008
Unconditional
Unconditional
Unconditional
Unconditional
Unconditional
Unconditional
Unconditional
Unconditional
Unconditional
Unconditional
No
No
No
No
Yes
Yes
No
Yes
Yes
Yes
56,471
73,570
88,732
29,578
29,577
29,577
19,000
19,001
19,001
57,002
Fair value at Vesting date

1
grant date
EUR
55.47
37.33
28.29
22.93
22.93
22.93
13.05
13.05
13.05
18.18
4/7/2014
4/7/2014
1/31/2014
2/1/2013
2/1/2013
2/1/2013
2/2/2012
2/2/2012
2/2/2012
2/4/2011
45,878
2
26,589
44,542
Number of
shares at
vesting date
53,647
69,891
84,295
28,099
28,098
28,098
2
16,287
2
16,286
2
16,286
2
48,859
4/19/2018
4/18/2017
4/13/2016
2/1/2015
2/2/2014
4/19/2018
4/18/2017
4/13/2016
2/1/2015
End of lock-up
date
4/7/2014
4/7/2014
1/31/2014
1/2/2014
10/1/2013
7/1/2013
1/2/2014
10/1/2013
7/1/2013
2/4/2013
Thefairvalueofthesharesasofthegrantdate.
Thenumberofsharesincludedinthelock-upperiodwerereducedin2012asaresultofthesyntheticsharebuybackduetoanexchangeforeach
100ordinarysharesfor77ordinaryshares.Thenumberofsharesvestedin2012afterthesyntheticsharebuybackforMr.Meurice,Mr.Wennink,Mr.
vandenBrinkandforMr.vanHoutare37,621shares,23,289shares,24,722sharesand20,473shares,respectively.Thenumberofsharesvestedin
2011afterthesyntheticsharebuybackforMr.Meurice,Mr.WenninkandforMr.vandenBrinkwas37,621shares,23,289sharesand24,722shares,
respectively.
Mr.NicklonlyjoinedASMLinDecember2013andwasnotpartoftheBoardofManagementashisappointmentisstillsubjecttothenotificationof
theGeneralMeetingofShareholders2014.
Pension Benefits
ThepensionarrangementfortheBoardofManagementisbasedontheexcedentarrangementforASMLemployeesin
TheNetherlands.TheplanisadefinedcontributionopportunityaslaiddowninDutchfiscalregulations.Pensionable
incomeisbasesalaryonly.Riskpremiumsfor(temporary)survivorspensionsarepaidseparatelybytheemployer.
Theemployeecontributionintheplanissetat4percentofthepensionbase(pensionableincomeminusWitteveen1
threshold) .
1) Dutchpensionarrangementshaveathresholdinthebuildupofpensionentitlements.Thisthresholdexistsbecauseallparticipantsareassumedto
beentitledtotheDutchstatepension(AOW)andthereforedonotneedanadditionalpensionoverthefirstpartoftheirpensionableincome.The
minimumlevelinthefiscallegislationforthisthresholdisrelatedtotheAOWallowanceandisknownastheWitteveen-threshold.Thisthresholdis
calculatedastheannualAOWallowance(includingholidayallowance)foramarriedpersontimes10/7.TheWitteveen-thresholdfor2013isEuro
13,227.00.
121
Term of Appointment/Employment
MembersoftheBoardofManagementappointedafterthe2004amendmentoftheArticlesofAssociation,are
appointedforaperiodoffouryears,afterwhichreappointmentispossibleforconsecutivetermsofmaximumfour
years.Messrs.P.WenninkandM.vandenBrinksappointmenttotheBoardofManagementisforanindefiniteperiod
oftime,astheirinitialappointmentwasbefore2004.Uponnotificationtothe2014AGM,theappointmentofMessrs.P.
WenninkandM.vandenBrinkwillbechangedintodefinitetermsoffouryears.
Severance Agreement
IftheCompanygivesnoticeofterminationoftheemploymentagreementormanagementservicesagreementfor
reasonswhichareexclusivelyormainlyfoundinactsoromissionsonthesideoftheBoardofManagementmember,no
severanceamountwillbegranted.Inthecaseofnoticeofterminationforotherreasons,aseverancepaymentequalto
oneannualbasesalarywillbemadeavailableupontheeffectivedateoftermination.
ThisseverancepaymentwillalsobemadeavailableincasetheBoardofManagementmembergivesnoticeof
terminationoftheemploymentagreementormanagementservicesagreementduetoasignificantdifferenceofopinion
betweentherespectivememberoftheBoardofManagementandtheSupervisoryBoardregardinghisemployment
agreement,hisfunctionortheCompanysstrategy.
Change of Control
BoardofManagementmembersarealsoentitledtotheaforementionedseverancepaymentintheeventASMLorits
legalsuccessorgivesnoticeofterminationduetoachangeincontroloriftheBoardofManagementgivesnoticeof
termination,whichisdirectlyrelatedtosuchchangeofcontrolandsuchnoticeisgivenwithintwelvemonthsfromthe
dateonwhichthechangeofcontroloccurs.
TheChangeofControlprovisionupuntil2013includesamitigationofthepay-outundertheLTI.Thisentailsthatthe
sharepricewillbefixedontheaverageofi)theaverageclosingsharepriceoveraperiodof15tradingdayspriortothe
firstpublicannouncementofchangeincontrolnegotiationsandii)theaverageclosingsharepriceoveraperiodof30
tradingdayspriortotheclosingofthetransaction.
Supervisory Board
TheannualremunerationforSupervisoryBoardmemberscoverstheperiodfromoneAGMtothenextone.Theannual
remunerationispaidinquarterlyinstallmentsstartingaftertheAGM.In2011theSupervisoryBoardproposedandthe
GeneralMeetingofShareholdersapprovedanadjustmentoftheremunerationoftheSupervisoryBoard,effectiveasper
April1,2011.FurthermorethegeneralmeetingofShareholdersapprovedafurtherincreaseoftheannual(fixed)feewith
amaximumamountofEUR5,000dependingoncircumstances,whichtheSupervisoryBoardimplementedonApril1,
2012.TherewerenochangestotheremunerationoftheSupervisoryBoardin2013.
122
ThefollowingtablesetsforthanoverviewoftheremunerationawardedtoSupervisoryBoardMembersin2013and
2012:
Year ended December 31,

2013
ArthurP.M.vanderPoel
OBBilous
FritzW.Frhlich
Hendrika(Ieke)C.J.vanden
Burg
WilliamT.Siegle
PaulineF.M.vanderMeer
Mohr
3
DougGrose
3
ClaraSmits-Nusteling
WolfgangH.Ziebart
Total
Year ended December 31,

2012
ArthurP.M.vanderPoel
JosW.B.Westerburgen
OBBilous
FritzW.Frhlich
Hendrika(Ieke)C.J.vanden
Burg
WilliamT.Siegle
PaulineF.M.vanderMeer
Mohr
WolfgangH.Ziebart
Total
1
2
3
4
5
6
Audit
committee
10,000
15,000
-
Remuneration
committee
8,000
Selection and
nomination
committee
8,000
4
11,000
5
6,000
-
Technology
and strategy
committee
8,000
4
11,000
3,800
-
15,000
Total
96,000
112,000
76,000
58,000
Supervisory
board
70,000
80,000
50,000
50,000
29,133
58,000
25,333
50,000
8,000
94,000
60,000
71,500
654,633
80,000
50,000
50,000
505,333
10,000
5
2,500
37,500
4
11,000
27,000
6,000
31,000
8,000
8,000
38,800
Total Supervisory
board
Audit
committee
Remuneration
committee
Technology
and strategy
committee
8,000
8,000
-
Other
1,2
10,000
5,000
-
94,750
96,116
104,750
68,750
56,750
68,750
48,750
78,750
48,750
48,750
10,000
15,000
-
12,000
8,000
90,750
56,750
78,750
48,750
8,000
12,000
-
72,750
641,366
48,750
470,000
10,000
35,000
6,000
34,000
28,000
8,000
36,000
38,366
Other
1,2
Selection and
nomination
committee
8,000
12,000
8,000
-
6
23,366
10,000
5,000
-
TocompensateforcertainobligationsASMLhastowardstheU.S.governmentasaresultoftheacquisitionofSiliconValleyGroupin2001,oneU.S.
memberreceivesanadditionalEUR10,000tofulfilltheseobligations.
Inadditiontotheannualfixedfee,theVice-ChairmanoftheSupervisoryBoardreceivesEUR5,000peryeartofulfillhisrole.
During2013DougGroseandClaraSmits-NustelingwereappointedasmemberoftheSupervisoryBoardandthereforereceivedanobserverfeein
thefirstquarter.
Amountdiffersfromtheannualcompensationduetoarolechangefrommembertochairmanofthecommittee.
Amountdiffersfromtheannualcompensationasthememberwasnotpartofthecommitteeforthefullyear.
In2012JosWesterburgenreceivedaprovisionalpaymentrelatedtothesupervisioryboardremunerationfortheperiodJanuarytoApril2013.As
legislationregardingVATregistrationforSupervisioryBoardmembershaschangedasof2013andJosWesterburgenhasresignedper2013,itwas
decidedtopaytheremunerationfeeinadvance.
Inaddition,anetcostallowancewaspaidtoeachSupervisoryBoardmemberin2013,amountingtoEUR1,800per
year,andEUR2,400peryearfortheChairmanoftheSupervisoryBoard.
MembersoftheSupervisoryBoardarefreetoacquireordisposeASMLsharesoroptionsfortheirownaccount,
providedtheycomplywiththeapplicableASMLInsiderTradingRules.Thosesecuritiesarenotpartofmembers
remunerationfromtheCompanyandarethereforenotincluded.NoneofthemembersoftheSupervisoryBoard
currentlyownessharesoroptionsonsharesoftheCompany.
TheannualremunerationforthemembersandformermembersoftheBoardofManagementandSupervisoryBoard
membersover2013amountstoEUR17.7million(2012:EUR12.9million).
32. Research and Development Costs

R&Dcosts(netofcreditsandexcludingcontributionsundertheNREfundingagreementsfromParticipatingCustomers
oftheCCIP)increasedbyEUR265.9million,or89.2percent,toEUR564.0millionin2013fromEUR298.1millionin
2012.R&DcostsmainlyasaresultoftheacquisitionofCymerandfurtherinvestmentsinourotherstrategicprograms
(EUV,immersionandholisticlithography).
R&DcostsincludecreditsforanamountofEUR9.2millionandEUR10.3millionin2013and2012,respectively.R&D
creditsrelatetoworldwide(inter-)governmentalfundingforcertainstrategicdevelopmentprograms.Thedecrease
inR&Dcreditsistheresultofachangeingovernmentprogramsfromsubsidypaymentstofiscalincentives.These
incentivesleadtotaxdeductionsinmainlytheDutchandUnitedStatestaxjurisdictions.
123
33. Finance Income and Costs

FinanceincomeofEUR9.2million(2012:EUR16.6million)mainlyrelatestointerestincomeondeposits,short-term
investments,moneymarketfunds,bankaccountsandonfinancereceivables.
FinancecostsofEUR28.0million(2012:EUR20.0million)mainlyconsistsofnetinterestexpenseonourEurobonds
andrelatedinterestrateswaps,interestonleaseobligationsandamortizedfinancingcostsofintotalEUR16.2million
(2012:EUR10.8million),andEUR8.9millionlossonthepartialextinguishmentofourEUR600million5.75percent
seniornotesdue2017.
InterestoncashpoolsisreportedonagrossbasisintheConsolidatedStatementofProfitorLossunderbothFinance
incomeandFinancecosts.Fromaneconomicandlegalperspective,theinterestoncashpoolsofEUR1.9million(2012:
EUR4.2million)recordedininterestincomenetsoffagainstthesameamountrecordedininterestexpense.
34. Vulnerability Due to Certain Concentrations

ASMLreliesonoutsidevendorstomanufacturethecomponentsandsubassembliesusedinitssystems,eachof
whichisobtainedfromasolesupplieroralimitednumberofsuppliers.ASMLsrelianceonalimitedgroupofsuppliers
involvesseveralrisks,includingapotentialinabilitytoobtainanadequatesupplyofrequiredcomponentsandreduced
controloverpricingandtimelydeliveryofthesesubassembliesandcomponents.Inparticular,fromtimetotime,the
numberofsystemsweareabletoproducemaybelimitedbytheproductioncapacityofZeiss.Zeissiscurrentlyour
solesupplieroflenses,collectors,andothercriticalopticalcomponentsandiscapableofproducingtheseitemsonlyin
limitednumbersandonlythroughtheuseofitsmanufacturingandtestingfacilityinOberkochenandWetzlar,Germany.
During2013,ASMLsproductionwasnotlimitedbythedeliveriesfromZeiss.
Businessfailureorinsolvencyofoneofourmaincustomersmayhaveanadverseeffectonourbusiness,financial
conditionandprofitorloss.
35. Principal Accountant Fees and Services

DeloittehasservedasourauditorfortheyearsendingDecember31,2013and2012.Thefollowingtablesetsoutthe
aggregatefeesforprofessionalauditservicesandotherservicesrenderedbyDeloitteanditsmemberfirmsand/or
affiliatesin2013and2012:

(inthousands)
Auditfeesinrelationtoannualreports
Otherauditfees
Audit-relatedfees
Taxfees
Other
2013
Deloitte
Accountants
B.V.
EUR
1,559
120
-
Deloitte
Network
EUR
364
347
-
Principal accountant fees and services
1,679
711
Total
EUR
1,559
364
120
347
-
2012
Deloitte
Accountants
B.V.
EUR
1,002
149
-
Deloitte
Network
EUR
352
353
247
Total
EUR
1,002
352
149
353
247
2,390
1,151
952
2,103
AuditFeesandOtherAuditFees
AuditfeesprimarilyrelatetotheauditofourFinancialStatementsassetoutinourAnnualReport,ourStatutoryAnnual
Report,agreeduponproceduresonourquarterlyfinancialresultsandservicesrelatedtostatutoryandregulatoryfilings
ofASMLanditssubsidiaries.
Audit-relatedFees
Audit-relatedfeesmainlyrelatedtovariousauditservicesnotrelatedtoourFinancialStatements.
124
TaxFees
Taxfeescanbedetailedasfollows:

(in thousands)
CorporateIncomeTaxcomplianceservices
Taxassistanceforexpatriateemployees
Othertaxadvisoryandcompliance
2013
EUR
186
2
159
2012
EUR
123
79
151
Tax fees
347
353
TheAuditCommitteehasapprovedtheexternalauditplanandrelatedauditfeesfortheyear2013.
Inordertocomplywiththemandatoryfirmrotation,anewauditorwillbeselectedin2014.Theappointmentofanew
auditorperJanuary1,2016,willbeproposedforapprovaltothe2015AGM.
36. Customer Co-Investment Program

Overview
generationandourdevelopmentoffuture450mmsiliconwafertechnology.TheParticipatingCustomerscollectively
agreedtofundEUR1.38billionofourresearchanddevelopmentprojectsfrom2013through2017.Thisprogram
createdrisksharingwithsomeofourlargestcustomerswhiletheresultsofASMLsdevelopmentprogramswillbe
availabletoeverysemiconductormanufacturerwithnorestrictions.TheR&DfundingprogramintheCCIPconsistsof
twofundingprojects:a450mmtechnologydevelopmentprojectandanext-generationEUVdevelopmentproject.ASML
enteredintoNREFundingAgreementswiththeParticipatingCustomers.
Inadditiontothefundingcommitmentsdescribedabove,theParticipatingCustomershaveinvestedinordinaryshares
equal,inaggregate,to23percentofASML'sissuedsharecapital(calculatedgivingeffecttoourSyntheticShare
BuybackinNovember2012).Theproceedsoftheshareissuance,EUR3.85billion,werereturnedtotheholdersof
ordinaryshares(excludingtheParticipatingCustomers)throughaSyntheticShareBuybackexecutedinNovember2012.
ForfurtherinformationregardingtheSyntheticShareBuyback,seeNote19.
Description of Investment Agreements, Shareholder Agreements and NRE Funding Agreements
InconnectionwiththeCCIP,ASMLenteredintoaninvestmentagreement,ashareholderagreementandNREfunding
agreementswitheachoftheParticipatingCustomers.Intelisthelargestparticipantintheprogram,withanaggregate
fundingcommitmentofEUR829millionandaninvestmentin15percentofourordinaryshares(calculatedgivingeffect
toourSyntheticShareBuybackinNovember2012).Adescriptionoftheinvestmentagreement,shareholdersagreement
andNREfundingagreementsbetweenASMLandIntelissetoutbelow.TheagreementsbetweenASMLandtheother
participants-TSMC(whichacquired5percentofoursharesandmadeanEUR276millionfundingcommitment)
andSamsung(whichacquired3percentofoursharesandmadeanEUR276millionfundingcommitment)areon
substantiallythesametermsasthoseagreedwithIntel.ShareswereacquiredbyDutchfoundations("Stichtingen")
establishedforeachparticipant.
Investment Agreements
PursuanttotheIntelInvestmentAgreement,datedJuly9,2012,ASMLissuedtoIntelStichtingordinarysharesequalto
15percentoftheissuedordinaryshareswithsimultaneousissuancebytheIntelStichtingtoIntelofthecorresponding
depositaryreceipts.
PursuanttotheTSMCInvestmentAgreement,datedAugust5,2012,ASMLissuedtoTSMCStichtingordinaryshares
equalto5percentoftheissuedordinaryshareswithsimultaneousissuancebytheTSMCStichtingtoTSMCofthe
correspondingdepositaryreceipts.
PursuanttotheSamsungInvestmentAgreement,datedAugust27,2012ASMLissuedtotheSamsungStichting
ordinarysharesequalto3percentoftheissuedordinaryshareswithsimultaneousissuancebytheSamsungStichting
toSamsungofthecorrespondingdepositaryreceipts.
ThesubscriptionpricefortheordinarysharesundertheInvestmentAgreementswasEUR39.91perordinaryshare,
whichistheaverageofthevolumeweightedaveragepriceofourshareslistedatNYSEEuronextAmsterdamforthe
twentytradingdaysuptoandincludingJuly6,2012.
125
Baseduponthesubscriptionprice(EUR39.91)includedintheInvestmentAgreements,theequityparticipationofIntel
(15percent),TSMC(5percent)andSamsung(3percent)amounttoEUR2,513million,EUR838millionandEUR503
million,respectively.
UndertheIntelInvestmentAgreements,ASMLhasagreedtoindemnifytheParticipatingCustomersandtheiraffiliates
forcertainlossesandexpensesrelatedtobreachesofrepresentations,warranties,covenantsandagreementsinthe
InvestmentAgreementsandwithrespecttocertainlegalproceedingsrelatedthereto,subjecttocertainlimitations.
Shareholder Agreements
InconnectionwiththeissuanceofsharespursuanttotheIntelInvestmentAgreement,onSeptember12,2012ASML,
IntelandtheIntelStichtingenteredintoaShareholderAgreementwhichgovernscertainmattersrelatingtotheholding
ofandfurtherinvestmentbyIntelinordinarysharesofASML,directlyandindirectlythroughtheIntelStichting,including
themattersdescribedbelow.
TheShareholderAgreementsbetweenASMLandtheotherprogramparticipants(TSMCandSamsung)areon
substantiallythesametermsasthoseagreedwithIntel.
Voting Restrictions
PursuanttotheShareholderAgreement,Intel(andtheIntelStichting)willnotbeentitledtovotetheordinarysharesthat
wereacquiredbytheIntelStichtingaspartoftheCCIPoranyotherordinarysharesotherwisetransferredtotheIntel
Stichting(underthecircumstancesdescribedunder"Standstill;AdditionalPurchases"below)priortoaShareholder
AgreementTerminationEvent(asdefinedbelow),exceptwhenaSuspensionEvent(asdescribedbelow)occursand
iscontinuingorwherethefollowingmattersareproposedatanyGeneralMeeting(the"VotingRestrictions"):(i)an
issuanceofASMLsharesorgrantofrightstosubscribeforASMLsharesrepresenting25percentormoreoftheissued
andoutstandingsharecapitalofASMLortherestrictionorexclusionofpre-emptionrightsrelatingthereto(ineach
case,onanaggregatebasisduringthepreceding12months)orthedesignationoftheBoardofManagementasthe
authorizedbodytoresolveonthesematters;(ii)anauthorizationtorepurchase25percentormoreofASMLsissued
andoutstandingsharecapitalonanaggregatebasisduringthepreceding12months;(iii)theapprovalofasignificant
changeintheidentityornatureofASMLorourbusiness,includingatransferofallorsubstantiallyallbusinessorassets
ofASMLandoursubsidiariestoathirdparty,theestablishmentorcancellationofalong-lastingcooperationofessential
importancewithathirdpartyandanacquisitionordispositionofaninterestinthecapitalorassetsofapersonwith
avalueofatleastonethirdoftheassetsofASML(onaconsolidatedbasis);(iv)anamendmenttoASMLsArticlesof
AssociationthatwouldmateriallyaffectthespecificvotingrightsofIntel,wouldmateriallyaffecttheidentityornature
ofASMLorourbusiness,orwoulddisproportionately(oruniquely)andadverselyaffecttherightsorbenefitsattached
toorderivedfromtheordinarysharesheldbyIntelthroughtheIntelStichtingascomparedtotheshareholders;(v)the
dissolutionofASML;and(vi)anymergerordemergerwhichwouldresultinamaterialchangeintheidentityornatureof
ASMLoritsbusiness.
Standstill, Lock-up and Orderly Market Arrangements
Standstill;AdditionalPurchases
Subjecttocertainexceptions,pursuanttotheShareholderAgreement,Intel(oritsaffiliates)maynot,priortothe
six-yearanniversaryofthedateoftheIntelShareholderAgreement(the"StandstillPeriod"),acquiremorethan19.9
percentoftheoutstandingsharecapitalofASMLwithoutASMLspriorapproval(the"StandstillRestriction").Thereis
anexceptionfromtheStandstillRestrictioninthecaseofasuspensionevent,whichincludescertaincircumstances
whereathirdpartyhasacquiredormadeanoffertoacquireatleast20percentofASMLsoutstandingshares,andthe
StandstillRestrictionwillterminateupontheoccurrenceofaShareholderAgreementTerminationEvent.
TheShareholderAgreementpermitsIntel(anditsaffiliates)toacquireupto4.99percentofASML'soutstandingshares
(otherthansharesacquiredthroughtheCCIP)thatmaybeheldoutsidetheIntelStichting.ForanyadditionalASML
sharesthatIntel(oritsaffiliates)acquiresinexcessof4.99percentoftheoutstandingsharesofASML,Intelisrequired
todepositsuchshareswiththeIntelStichtinginexchangeforDepositaryReceipts.ShareshelddirectlybyIntelorits
affiliates(andwhichnotrequiredtobedepositedwiththeIntelStichting)arenotsubjecttotheVotingRestrictions,or
Lock-UpRestrictions(asdefinedbelow),butaresubjecttotheStandstillRestriction.
TheIntelStichtingwillcontinuetoholdASMLsharesownedbyIntel(notwithstandingterminationoftheStandstill
Period)untiltheearlierof(i)suchtimeasIntelowns(directlyorthroughtheIntelStichting)lessthan2percentof
ASMLsoutstandingshares(therelevantpercentageis1percentfortheotherParticipatingCustomers)(ii)thedate
ofnotificationtoASMLbyParticipatingCustomersthattheaggregateamountofASMLsoutstandingsharesowned
byIntelandtheotherParticipatingCustomersrepresentslessthan5percentofASMLsoutstandingsharesand(iii)
126
aShareholderAgreementTerminationEvent(asdefinedbelow),followingwhichtimeDepositaryReceiptswillbe
exchangedfortheunderlyingASMLshares.IncaseIntelwouldacquireASMLshareswithin18monthsafteranevent
describedunder(i)or(ii)above,anyASMLsharesheldbyIntelinexcessof4.99percentoftheoutstandingsharesof
ASMLmustbetransferredto(andheldby)theIntelStichting.
Lock-up;OrderlySellDown
Intelmaynot,withoutpriorwrittenconsentofASML,transferanyordinarysharesorDepositaryReceiptsuntilthe
earliestof(i)twoyearsandsixmonthsafterthedateoftheIntelShareholderAgreement,(ii)terminationoftheNRE
FundingAgreements,and(iii)theoccurrenceofaShareholderAgreementTerminationEvent((i),(ii)and(iii)together,the
"Lock-UpRestriction").TheLock-UpRestrictiondoesnotapplyincertaincircumstanceswhereathirdpartyoffersto
acquireatleast20percentofASMLsshares.IntelisnotpermittedtotransfertheASMLordinarysharesitacquiredin
theprograminconnectionwithanoffer(beforetheendoftheoffer),ormakeanypublicstatementinsupportofsuch
offer,thatisnotrecommendedbytheASMLSupervisoryBoardorManagementBoard,exceptinlimitedcircumstances.
Inaddition,Intelmaynot(evenaftertheLock-UpPeriodhasended),withoutwrittenconsentofASML,transferon
NYSEEuronextAmsterdam,NASDAQoranothersecuritiesexchangemorethan(i)4percentoftheoutstandingshares
ofASMLduringanysixmonthperiod(therelevantpercentageis1.5percentforSamsungand2.5percentforTSMC).
TherearealsorestrictionsonIntel'sabilitytotransferASMLsharestocertaincompetitorsorcustomersofASML.
Termination
TheIntelShareholderAgreementwillterminateupontheoccurrenceofthefollowingevents(eacha"Shareholder
AgreementTerminationEvent")(i)certainchangeofcontroltransactionsweretheshareholdersofASMLpriortosuch
atransactionarenolongerentitledtoexerciseatleast50percentofthevotesintheGeneralMeetingfollowingsuch
transaction,(ii)intheeventofadelistingofourshareslistedatNYSEEuronextAmsterdamordelistingofourshares
listedatNASDAQ(exceptforcertainvoluntarydelistingsfromNASDAQ),(iii)thewindinguporliquidationofASML,or
(vi)intheeventthatallDepositaryReceiptsareexchangedforASMLsharesandInteldoesnotacquireASMLsharesin
excessof4.99percentoftheoutstandingASMLshareswithin18monthsofsuchexchange(see"Standstill;Additional
Purchases"above).
NRE Funding Agreements
OnJuly9,2012,ASMLandIntelenteredintotwoNREFundingAgreementspursuanttowhichIntelwillsupportASMLs
R&Dcostsandprojectexpenditures.OneagreementrelatestotheIntel450mmNREFundingAgreementandtheother
relatestotheIntelEUVNREFundingAgreement(togetherthe"IntelNREFundingAgreements").Intelhascommitted
toprovideEUR553millioninfundingundertheIntel450mmNREFundingAgreementandEUR276millioninfunding
undertheIntelEUVNREFundingAgreement,payableovertherespectiveterms(2013-2017)oftheIntelNREFunding
Agreements.
OnAugust5,2012,ASMLandTSMCenteredintotheTSMCNREFundingAgreementpursuanttowhichTSMCwill
supportASMLsR&Dcostsandprojectexpendituresrelatingtothedevelopmentof450mmlithographyequipmentand
EUVplatforms.TSMChascommittedtoprovideEUR276millioninfundingpayableovertheterm(2013-2017)ofthe
TSMCNREFundingAgreement.
OnAugust27,2012,ASMLandSamsungenteredintotheSamsungNREFundingAgreementpursuanttowhich
SamsungwillsupportASMLsR&Dcostsandprojectexpendituresrelatingtothedevelopmentof300mm/450mmand
EUVplatforms.SamsunghascommittedtoprovideEUR276millioninfundingpayableovertheterm(2013-2017)ofthe
SamsungNREFundingAgreement.
127
UndertheNREFundingAgreements,ASMLwillretainsolecontroloverthedevelopmentof450mmphotolithography
equipmentandEUVplatformsandwillownallintellectualpropertycreatedbyASMLinconnectiontherewith.TheNRE
FundingAgreementsprovidethatifASML,initsreasonablediscretion,determinestoabandoneitherthe450mmorEUV
developmentproject,asaresultoftechnicalinfeasibilityorlackofsufficientindustrydemand,orifthethenremaining
fundingexceedstheexpenditureestimateforthedevelopmentproject(450mmorEUV)thenthepartiesmayagreeonan
alternativedevelopmentproject,andifnoalternativeisagreed,ASMLmayinvoicetheParticipatingCustomersforthe
remainingdueportionofcommittedfundingduringeachyearoftheremainingfundingperiodinwhichASML'sactual
grossR&DexpendituresexceedaminimumthresholdspecifiedintheNREFundingAgreements.TheNREFunding
AgreementswillterminateonDecember31,2017oruponpre-paymentbytheParticipatingCustomeroftheaggregate
amountoffundingowedunderitsrespectiveNREFundingAgreement.
Commercial Agreement
OnJuly9,2012,ASMLandIntelenteredintoaCommercialAgreement,pursuanttowhichASMLandIntelestablished
acontractualframeworkforInteltopurchaseequipmentrelatedtothe450mmandEUVnext-generationlithography
equipment.Underthisagreement,Intelhascommittedtopurchasespecifiednumbersof450mmandEUVtools.
Theagreementsetsforthpricingtermsforthetoolsaswellasmilestonesrelatedtoproductdeliveries,andprovides
forcertaincommercialdiscountsintheformofcreditsinexchangeforIntelsearlypurchasecommitmentsand
volumepurchasecommitmentsandforspecifiedadditionalcreditsintheeventthatcertainschedulesarenotmet.In
addition,subjecttocertainconditions,ASMLhasagreedtoinstallsufficientcapacitytomeetIntelsforecasted450mm
lithographyequipmentneedsthrough2022.
ForfurtherdetailsregardingtheshareissuancestotheParticipatingCustomersandtheSyntheticShareBuyback
effectuatedinconnectionwithourCCIP,seeNote19.
Development 450mm silicon wafer technology
InNovember2013,followingourcustomersdecision,ASMLdecidedtopausethedevelopmentof450mmlithography
systemsuntilcustomerdemandandthetimingrelatedtosuchdemandisclear.Webelievethatour450mm
developmentactivitiescanberestartedifandwhentheindustrydemandstheintroductionof450mm.Since450mm
requiresbothgenericdevelopmentsandwafersize-specificdevelopments,manyofouremployeesinvolvedinthe
450mmprojectaredoingworkthatisjustasrelevantforfutureDUVandEUVplatforms.Theteamsandpeoplehave
thereforebeenreassignedtodifferentprojects.
UnderourCCIP,wearepartytoa450mmNREFundingAgreementwithIntelforatotalNREfundingcommitmentof
EUR553million.WearecurrentlyindiscussionswithInteltodetermineappropriateprojectstowhichtoapplythe
450mmNREfunding.
UndertheCCIP,wearealsopartytoEUVNREagreementswithIntel(totalfundingofEUR276million),TSMC(total
fundingofEUR276million)andSamsung(totalfundingofEUR276million),allofwhichfundingisbeingusedforEUV
projects.
128
37. Related Party Transactions

generationandourdevelopmentoffuture450mmsiliconwafertechnology.OneoftheParticipatingCustomers,Intel,
agreedtofundEUR829millionforourR&Dprojects.InadditionIntelalsoagreedtoinvestinordinarysharesequalto
15percentofourissuedsharecapital(calculatedgivingeffecttoourSyntheticShareBuybackinNovember2012).Due
totheequityinvestment,IntelisconsideredarelatedpartyofASMLasofJuly9,2012.
ThetotalnetsalestoIntel(anditsaffiliates)in2013amountedtoEUR494.7million.ThetotalnetsalestoIntel(and
itsaffiliates)fortheperiodfromJuly9,2012toDecember31,2012amountedtoEUR301.7million)whereasthe
outstandingbalancesasofDecember31,2013amounttoEUR(182.3)million(December31,2012:EUR65.0million).
Therehavebeennotransactionsduringourmostrecentfiscalyear,andtherearecurrentlynotransactions,between
ASMLoranyofitssubsidiaries,andanyothersignificantshareholderandanydirectororofficeroranyrelativeor
spousethereofotherthanordinarycoursecompensationarrangements.Duringourmostrecentfiscalyear,therehas
beenno,andatpresentthereisno,outstandingindebtednesstoASMLowedorowingbyanydirectororofficerof
ASMLoranyassociatethereof.
Forourdisclosuresinrelationtokeymanagementpersonnel,seenote31.
38. Subsequent Events

SubsequenteventswereevaluateduptoFebruary11,2014,whichistheissuancedateofthisAnnualReport2013.
Therearenosubsequenteventstoreport.
Veldhoven,theNetherlands
February11,2014
Preparedby
1
TheBoardofManagement :
PeterT.F.M.Wennink
MartinA.vandenBrink
FritsJ.vanHout
FrdricJ.M.Schneider-Maunoury
1) Mr.Nickl'sappointmenttoASML'sBoardofManagementissubjecttothenotificationoftheAGM,scheduledtobeheldonApril23,2014.
129
130
131
132

134
CompanyBalanceSheet
135
AbbreviatedCompanyStatementofProfitorLoss
136
NotestotheCompanyFinancialStatements
133
Company Balance Sheet

As of December 31
(in thousands)
Non-current assets
Investmentsinsubsidiaries
Loanstosubsidiaries
Deferredtaxassets
Othernon-currentassets
2013
EUR
2012
EUR
9,838,641
1,239
1,680
30,777
2,646
6,415,214
1,297
14,358
101,651
1,474
Total non-current assets
9,874,983
6,533,994
Current assets
Amountsduefromsubsidiaries
Currenttaxassets
Othercurrentassets
431,705
42,588
2,941
375,000
1,133,431
219,326
54,796
44,727
3,544
550,017
589,848
Total current assets

Total assets
1,985,665
11,860,648
1,462,258
7,996,252
Equity
CumulativePreferenceShares;EUR0.09nominalvalue;
700,000,000sharesauthorizedatDecember31,2013and2012;
noneissuedandoutstandingatDecember31,2013and2012;
OrdinarySharesB;EUR0.01nominalvalue;
9,000sharesauthorizedatDecember31,2013and2012;
noneissuedandoutstandingperDecember31,2013and2012;
OrdinaryShares;EUR0.09nominalvalue;
699,999,000sharesauthorizedatDecember31,2013;
440,852,334issuedandoutstandingatDecember31,2013;
699,999,000sharesauthorizedatDecember31,2012;
407,165,221issuedandoutstandingatDecember31,2012;
Issuedandoutstandingshares
Sharepremium
Retainedearnings
Treasurysharesatcost
Legalreserves
Netincome
40,214
3,383,105
2,841,636
(365,782)
451,778
1,193,844
37,786
932,968
2,341,048
(465,848)
349,901
1,302,347
Total equity
7,544,795
4,498,202
Non-current liabilities
Long-termdebt
1,017,501
103,722
707,107
87,746
Total non-current liabilities
1,121,223
794,853
Current liabilities
Amountsduetosubsidiaries
Currentandothertaxliabilities
3,156,618
15,038
8,338
14,636
2,669,294
19,279
14,624
Total current liabilities

Total equity and liabilities
3,194,630
11,860,648
2,703,197
7,996,252
134
Abbreviated Company Statement of Profit or Loss
135

(in thousands)
2013
EUR
2012
EUR
Netincomefromsubsidiaries
Gain(Loss)aftertaxes
1,202,542
(8,698)
1,255,478
46,869
Net income
1,193,844
1,302,347
Notes to the Company Financial Statements

1. General Information
Thedescriptionofouractivitiesandourstructure,asincludedintheNotestotheConsolidatedFinancialStatements,
alsoapplytotheCompanyFinancialStatements.
Inaccordancewitharticle362sub8Part9ofBook2oftheDutchCivilCode,wehavepreparedourCompanyFinancial
StatementsinaccordancewithDutchGAAPapplyingtheaccountingprinciplesasadoptedintheConsolidatedFinancial
Statements,exceptfortheaccountingforinvestmentsinsubsidiariesandourconsolidatedSPE.Investmentsin
subsidiariesandconsolidatedSPEarestatedatnetassetvalueasweeffectivelyexercisecontrolovertheoperational
andfinancialactivitiesoftheseinvestments.ThenetassetvalueisdeterminedonthebasisoftheIFRSaccounting
principlesappliedbyASMLinitsConsolidatedFinancialStatements.
Inaccordancewitharticle402Part9ofBook2oftheDutchCivilCodetheCompanyStatementofProfitorLossis
presentedinabbreviatedform.
2. Summary of Significant Accounting Policies

Significant Accounting Policies
TheaccountingpoliciesusedinthepreparationoftheCompanyFinancialStatementsarethesameasthoseusedin
thepreparationoftheConsolidatedFinancialStatements(inaccordancewitharticle362sub8Part9ofBook2ofthe
DutchCivilCode).SeetheNotestotheConsolidatedFinancialStatements.Inadditiontothoseaccountingpolicies,
thefollowingaccountingpolicyappliestotheCompanyFinancialStatements.TheaccompanyingCompanyFinancial
StatementsarestatedinthousandsofEURunlessotherwiseindicated.
Investments in Subsidiaries
Investmentsinsubsidiariesarestatedatnetassetvalueasweeffectivelyexerciseinfluenceofsignificanceoverthe
operationalandfinancialactivitiesoftheseinvestments.ThenetassetvalueisdeterminedonthebasisoftheIFRS-EU
asappliedinthepreparationoftheConsolidatedFinancialStatements.
3. Investments in Subsidiaries
Changesininvestmentsinsubsidiariesduring2013and2012wereasfollows:
(in thousands)
2013
EUR
2012
EUR
Balance,January1
6,415,214
5,169,322
Capitalcontributions
Capitalrepayment
Dividendsreceived
Netincomefromsubsidiaries
2,855,529
(492,751)
(13,384)
1,202,542
(120,863)
(7,646)
6,539
(9,206)
(5,299)
1,255,478
5,927
(7,547)
Balance, December 31
9,838,641
6,415,214
136
4. Equity
Changesinequityduring2013and2012wereasfollows(beforeappropriationofnetincome):
Issued and
Outstanding Shares
413,669
Amount
EUR
38,816
Share
Premium
EUR
920,478
Treasury
Shares at
Cost
EUR
(417,837)
Number
Notes
6,19
6,19
19,36
19,36
19,36
19
19
24,30,31
24,30
19
19
6,19
6,19
19,36
19
19
24,30,31
24,30
19
19
1
2
3
4
5
6
7
8
(in thousands)
Retained
Legal
3
Earnings Reserves
EUR
EUR
1,525,238
159,039
Net
Income
EUR
1,494,071
Total
EUR
3,719,805
- (1,494,071)

Netincome
Financialinstruments,netoftaxes
1,494,071
5,927
(7,547)
(1,620)
1,302,347
1,302,347
1,302,347
5,927
(7,547)
1,300,727
CCIP:
Issuanceofshares
4
5
Capitalrepayment
96,566
(93,411)
8,691 3,968,677
- (123,416)
(8,691) (3,845,261)
125,628
3,977,368
(123,416)
(3,728,324)

Issuance of shares
Dividend paid
(13,478)
3,819
407,165
(1,030)
37,786
20,596
(8,106)
932,968
(535,373)
294,752
66,982
(465,848)
(293,722)
(3,165)
(188,892)
(192,482)
2,341,048
192,482
349,901
1,302,347
(535,373)
20,596
55,711
(188,892)
4,498,202

Netincome
Financialinstruments,netoftaxes
1,302,347
- (1,302,347)
(122,000)
(7,646)
(129,646)
1,193,844
1,193,844
1,193,844
(122,000)
(7,646)
1,064,198
CCIP:
6
20,956
20,956

7
8
Issuance of shares
Dividend paid
(4,614)
38,301
440,852
(854)
3,282
40,214
116,821
2,312,360
3,383,105
(300,000)
349,261
50,805
(365,782)
(348,407)
(5,744)
(216,085)
(231,523)
2,841,636
231,523
451,778
1,193,844
(300,000)
116,821
2,360,703
(216,085)
7,544,795
NotereferencenumbersincludedbelowrelatetothenotestotheConsolidatedFinancialStatements.
AsofDecember31,2013,thenumberofissuedshareswas446,822,452.Thisincludesthenumberofissuedandoutstandingsharesof440,852,334
andthenumberoftreasurysharesof5,970,118.AsofDecember31,2012,thenumberofissuedshareswas419,852,467.Thisincludesthenumber
ofissuedandoutstandingsharesof407,165,221andthenumberoftreasurysharesof12,687,246.
Legalreservesconsistofthehedgingreserve,thecurrencytranslationreserveandthereserveforcapitalizeddevelopmentexpenditures.Seebelow
forfurtherinformation.
ThedifferencebetweenthefairvalueofthesharesandthesubscriptionpriceofthesharesissuedtotheparticipatingcustomersintheCCIP.
In2012,aspartofthecapitalrepayment,EUR3,728.3millionofequitywasreturnedtoourshareholders(excludingParticipatingCustomersinthe
CCIP)andthenumberofshareswasreducedby23percent.Seebelowforfurtherinformation.
EUR21.0millionisrecognizedtoincreaseequitytothefairvalueofthesharesissuedtotheParticipatingCustomersintheCCIP.Theportionofthe
NREfundingallocabletothesharesisrecognizedovertheNREFundingAgreementsperiod(2013-2017).
Share-basedpaymentsincludeanamountofEUR66.1millioninrelationtothefairvalueofunvestedequityawardsexchangedaspartofacquisition
ofCymer.
Issuanceofsharesincludes36,464,576ordinarysharesissuedinrelationtotheacquisitionofCymerforatotalfairvalueofEUR2,346.7million.
ThedifferenceofEUR1.0millionwiththefairvalueofsharesasdisclosedinNote4isexplainedby14,533sharesstilltobeissuedtoformerCymer
shareholders.
137
Share Capital
sharesareissued.
Cymer.
Consequently,onNovember24,2012,theArticlesofAssociationwereamendedasfollows.Uponthefirstamendment
theordinarysharestobeheldforthebenefitoftheparticipantstotheCCIPwereconvertedintoordinarysharesM
andallotherordinaryshareswereconvertedintoordinarysharesA.Uponthesecondamendment,theparvalueper
ordinaryshareAwasincreasedfromEUR0.09toEUR9.24attheexpenseofthesharepremiumreserve.Uponthe
thirdamendment,thenominalvalueperordinaryshareAwasreducedtoanamountofEUR0.06,bydecreasingthe
nominalvalueperordinaryshareAbyanamountofEUR9.18,whichresultedinarepaymentofthesameamountper
sharetoholdersofordinarysharesintowhichtheordinarysharesAwereconverted.Thefourthamendmentprovided
fortheconsolidationoftheordinarysharesAthroughtheexchangeofeach100ordinarysharesfor77ordinaryshares,
resultinginanincreaseofthenominalvalueperordinarysharefromEUR0.06toEUR0.09,wherebytheaggregate
differencewasbookedattheexpenseofthesharepremiumreserve.Thefifthandlastamendmentprovidedforthe
deletionoftheshareclassMforparticipantstotheCCIPandtheshareclassAfortheothershareholders.Theordinary
sharesMandAwereconvertedthereafterintoordinaryshareswithoutaspecificlettermarkattachedtoit.These
amendmentsinsubstanceconstituteaSyntheticShareBuybackinwhichweeffectivelyrepurchased93,411,216shares
atanaveragepriceofEUR39.91foratotalamountofEUR3,728.3million.ThedifferenceofEUR125.6millionbetween
thecapitalrepaymentofEUR3,728.3millionandthenetproceedsfromissuanceofsharesofEUR3,853.9million
relatestothecapitalrepaymentonASML'streasuryshareswhichwasalsopartoftheSyntheticShareBuyback.
CCIPseeNote36.
Ordinary Shares
GiroTransactionsAct(Wet giraal effectenverkeer;the"GiroAct")maintainedbytheDutchcentralsecuritiesdepository
138
HoldersofASMLsordinaryshareshaveapreemptiverightofsubscription,inproportiontotheaggregatenominal
ofholdersofordinaryshares.
Ordinary Shares B
AspartofthemostrecentchangesinourArticlesofAssociation,adoptedattheEGMheldonSeptember7,2012,
the9,000ordinarysharesBwithanominalvalueofEUR0.01wereintroduced.Apersonwhoholds(amultipleof)100
fractionalshares,mayexchangethosefractionalsharesforanordinaryshareB.EveryholderofanordinaryshareBis
entitledtoone-ninth(1/9)ofadividend.EachordinaryshareBentitlestheholderthereoftocastonevoteattheGeneral
Meeting.
In1998,wegrantedtothepreferenceshareFoundation,thePreferenceShareOption.Thisoptionwasamendedand
issued.
PertheamendmentofourArticlesofAssociationonMay6,2011,thenominalvalueofthecumulativepreferenceshares
wasincreasedtoEUR0.09.Thenumberofcumulativepreferencesharesincludedintheauthorizedsharecapitalwas
decreasedto700,000,000.ThiswasdonetosimplifytheArticlesofAssociation,andtogiveeachsharetherighttocast
onevoteintheGeneralMeetingofShareholders.
139
arefullypaidup.
Legal Reserves
Changesinlegalreservesduring2013and2012wereasfollows:
Hedging
reserve
EUR
Currency
translation
reserve
EUR
Reserve for
capitalized
development
expenditures
EUR
Total
EUR
2,984
(103,567)
259,622
159,039
5,927
5,927

214
(7,761)
214
(7,761)
(4,563)
1,119
(96,521)
192,482
(1,119)
450,985
192,482
349,901

(122,000)
(122,000)

(5,370)
(2,276)
(5,370)
(2,276)
(12,209)
4,570
(213,951)
231,523
(4,570)
677,938
231,523
451,778
(in thousands)
Exchangeratedifferencesrelatingtothetranslationfromourforeignsubsidiariesintoeuroarerecognizedinthe
currencytranslationreserve.Gainsandlossesonhedginginstrumentsthataredesignatedashedgesofnetinvestments
inforeignoperationsareincludedinthecurrencytranslationreserve.
Hedgingreserverepresentshedginggainsandlossesontheeffectiveportionofcashflowhedges.
140
Appropriation of Net Income

Aspartofourfinancingpolicy,weaimtopayanannualdividendthatwillbestableorgrowingovertime.Annually,the
BoardofManagementwill,uponpriorapprovalfromtheSupervisoryBoard,submitaproposaltotheAGMwithrespect
totheamountofdividendtobedeclaredwithrespecttotheprioryear.Thedividendproposalinanygivenyearwillbe
subjecttotheavailabilityofdistributableprofitsorretainedearningsandmaybeaffectedby,amongotherfactors,the
BoardofManagement'sviewsonourpotentialfutureliquidityrequirements,includingforinvestmentsinproduction
capacity,thefundingofourR&Dprogramsandforacquisitionopportunitiesthatmayarisefromtimetotime;andby
futurechangesinapplicableincometaxandcorporatelaws.Accordingly,itmaybedecidedtoproposenottopaya
dividendortopayalowerdividendwithrespecttoanyparticularyearinthefuture.
For2013,aproposaltodeclareadividendofEUR0.61perordinaryshareofEUR0.09nominalvaluewillbesubmitted
totheAGMtobeheldonApril23,2014.
DividendsonordinarysharesarepayableoutofnetincomeorretainedearningsasshowninourFinancialStatements
asadoptedbyourGeneralMeetingofShareholders,afterpaymentfirstof(accumulated)dividendsoutofnetincomeon
anyissuedcumulativepreferenceshares.
Share Buyback Programs
Inadditiontodividendpayments,weintendtoreturncashtoourshareholdersonaregularbasisthroughshare
buybacksorcapitalrepayment,subjecttoouractualandanticipatedlevelofliquidityrequirements,ourcurrentshare
price,othermarketconditionsandotherrelevantfactors.
OnApril24,2013,theAGMauthorizedtherepurchaseofuptoamaximumoftwotimes10.0percentofourissuedshare
capitalasofthedateofauthorizationthroughOctober24,2014.
4,614,179ofoursharesforatotalamountofEUR300.0millionatanaveragepriceofEUR65.02pershare.These
sharesareintendedtobecancelledin2014.
Thefollowingtableprovidesasummaryofourrepurchasedsharesin2013:
Period
April18-30,2013
May2-31,2013
June1-30,2013
July1-31,2013
August1-31,2013
September1-30,2013
October3-31,2013
November1-30,2013
December1-31,2013
Total
Total number
of shares
purchased
297,500
389,974
749,434
321,486
283,097
179,146
556,443
962,146
874,953
Average price paid

per Share
(EUR)
55.35
61.76
60.39
65.20
67.83
69.06
69.34
66.76
67.25
4,614,179
65.02
Total number of shares Maximum value of shares

purchased as
that may
part of publicly
yet be purchased
announced plans
under the program
or programs
(EUR)
297,500
983,534,770
687,474
959,449,401
1,436,908
914,192,630
1,758,394
893,232,250
2,041,491
874,028,834
2,220,637
861,656,533
2,777,080
823,072,791
3,739,226
758,841,727
4,614,179
700,000,036
5. Personnel
TheaveragenumberofemployeesemployedbytheASMLHoldingN.V.atyear-end2013wasfive(2012:five).
AsaresultofenactedDutchtaxlegislation(WetuitwerkingfiscalemaatregelenBegrotingsakkoord2013)during2013,
theCompanyincurredanexpenseofEUR3.1million(2012:EUR2.4million)inrelationtothe(former)membersofthe
BoardofManagement.
ASMLdoesnotconsidertheDutchTaxlegislation(WetuitwerkingfiscalemaatregelenBegrotingsakkoord2013)tobea
remunerationoranemployeebenefit.Forinformationregardingtheremunerationofthe(former)membersoftheBoard
ofManagementandMr.NicklreferenceismadetoNote31totheConsolidatedFinancialStatements.
6. Principal Accountant Fees and Services

Forinformationregardingauditor'sfees,werefertonote35totheConsolidatedFinancialStatements.
141
7. Commitments and Contingencies

ASMLHoldingN.V.hasassumedjointandseveralliabilitiesinaccordancewitharticle403Part9ofBook2ofTheDutch
CivilCodewithrespecttothefollowingDutchsubsidiaries:ASMLNetherlandsB.V.Furthermore,ASMLHoldingN.V.has
guaranteedallliabilitiesoutstandingatDecember31,2013,untilallaresatisfiedinfull,inaccordancewithsection479C
oftheUKCompaniesAct2006withrespecttoitsoverseassubsidiaryASML(UK)Ltd(registerednumberSC176574)
andaccordingly,undersection479AofthatActASML(UK)Ltdisexemptfromtherequirementtohaveitsfinancial
statementsaudited.
FromtimetotimeweprovideguaranteestothirdpartiesinconnectionwithtransactionsenteredintobyourDutch
subsidiariesintheordinarycourseofbusiness.
ASMLHoldingN.V.formsataxunitytogetherwithcertainofitsDutchsubsidiaries,forpurposesofDutchtaxlawsand
areassuchjointlyandseverallyliableforthetaxdebtsoftheunity:ThefiscalunitycomprisesasofDecember31,2012
ofASMLHoldingN.V.,ASMLNetherlandsB.V.andASMLSystemsB.V.
8. Amounts due from/due to Subsidiaries

Interestonamountsduefromsubsidiariesiscalculatedbasedonmonthlybaseratesplusamarket-conformmark-up,
interestonamountsduetosubsidiariesiscalculatedbasedonmonthlybaserate,minusasmallfee,withaminimumof
0percent.Allbalancesduefrom/duetosubsidiariesarerepayableondemand.
February11,2014
Preparedby
1
TheBoardofManagement :
PeterT.F.M.Wennink
MartinA.vandenBrink
FritsJ.vanHout
FrdricJ.M.Schneider-Maunoury
1) Mr.Nickl'sappointmenttoASML'sBoardofManagementissubjecttothenotificationoftheAGM,scheduledtobeheldonApril23,2014
142
Other Information
TheadditionalinformationbelowincludesabriefsummaryofthemostsignificantprovisionsofourArticlesof
Association.SeeNote19oftheConsolidatedFinancialStatements.
Adoption of Financial Statements
TheBoardofManagementwillsubmitourstatutoryannualreport,togetherwithacertificateoftheauditorinrespect
thereof,totheGeneralMeetingofShareholdersforadoption.
Statements Appropriation and Determination of Net Income
DividendsmaybepayableoutofnetincomeorretainedearningsshownintheCompanyFinancialStatementsas
adoptedbyourGeneralMeetingofShareholders,afterpaymentfirstof(accumulated)dividendsonanyoutstanding
cumulativepreferenceshares.Atitsdiscretion,however,subjecttostatutoryprovisions,theBoardofManagementmay,
withthepriorapprovaloftheSupervisoryBoard,distributeoneormoreinterimdividendsontheordinarysharesbefore
theFinancialStatementsforanyfinancialyearhavebeenadoptedbytheGeneralMeetingofShareholders.TheBoard
ofManagement,withtheapprovaloftheSupervisoryBoard,maydecidethatallorpartofournetincomeshouldbe
retainedandnotbemadeavailablefordistributiontoshareholders,exceptfordividendsonthecumulativepreference
shares.Thosenetincomesthatarenotretainedmaybedistributedtoshareholderspursuanttoashareholders'
resolution,providedthatthedistributiondoesnotreduceequitybelowtheamountofreservesrequiredbyDutchlaw.
ExistingreservesthataredistributableinaccordancewithDutchlawmaybemadeavailabletotheGeneralMeetingof
ShareholdersfordistributionuponaproposalbytheBoardofManagement,subjecttopriorapprovaloftheSupervisory
Board.Asregardscashpayments,therightstodividendsanddistributionsshalllapseifsuchdividendsordistributions
arenotclaimedwithinfiveyearsfollowingthedayafterthedateonwhichtheyweremadeavailable.
Annually,theBoardofManagementwillassesstheamountofdividendthatwillbeproposedtotheAnnualGeneral
MeetingofShareholders.For2012,adividendwasdeclaredofEUR0.53perordinaryshareofEUR0.09nominalvalue
whichwaspaidin2013.
AproposalwillbesubmittedtotheAnnualGeneralMeetingofShareholdersonApril23,2014todeclareadividendfor
2013ofEUR0.61perordinaryshareofwithaEUR0.09nominalvalue.
Voting Rights
WearesubjecttotherelevantprovisionsofDutchlawapplicabletolargecorporations(thestructuurregime).These
provisionshavetheeffectofconcentratingcontrolovercertaincorporatedecisionsandtransactionsinthehandsofthe
SupervisoryBoard.MembersoftheBoardofManagementareappointedbytheSupervisoryBoard.TheSupervisory
BoardshallnotifytheGeneralMeetingofShareholdersofintendedappointmentstotheBoardofManagement.
GeneralMeetingsofShareholderswillbeheldatleastonceayear.Wedonotsolicitfromornominateproxiesforour
shareholders.However,shareholdersandotherpersonsentitledtoattendGeneralMeetingsofShareholdersmaybe
representedbyproxies.
EGMsmaybeheldasoftenasdeemednecessarybytheSupervisoryBoardorBoardofManagementandmustbeheld
ifoneormoreordinaryorcumulativepreferenceshareholdersjointlyrepresentingatleasttenpercentoftheissued
sharecapitalmakeawrittenrequesttothateffecttotheSupervisoryBoardandtheBoardofManagementspecifyingin
detailthebusinesstobedealtwith.
ResolutionsareadoptedatGeneralMeetingsofShareholdersbyanabsolutemajorityofthevotescast(exceptwherea
differentproportionofvotesarerequiredbytheArticlesofAssociationorDutchlaw)andtherearegenerallynoquorum
requirementsapplicabletosuchmeetings.IntheGeneralMeetingofShareholderseachshareconferstherighttocast
onevote.
Subsequent Events
SubsequenteventswereevaluateduptoFebruary11,2014,whichistheissuancedateofthisAnnualReport2013.
Therearenosubsequenteventstoreport.
143
Independent Auditor's Report

To:TheGeneralMeetingofASMLHoldingN.V.
Report on the financial statements
Wehaveauditedtheaccompanyingfinancialstatementsfortheyear2013ofASMLHoldingN.V.,Veldhoven.The
financialstatementsincludetheconsolidatedfinancialstatementsandthecompanyfinancialstatements.The
consolidatedfinancialstatementscomprisetheconsolidatedstatementoffinancialpositionasperDecember31,2013,
theconsolidatedstatementofprofitorloss,theconsolidatedstatementofcomprehensiveincome,changesinequity
andcashflowsfortheyearthenended,andnotes,comprisingasummaryofthesignificantaccountingpoliciesand
otherexplanatoryinformation.ThecompanyfinancialstatementscomprisethecompanybalancesheetasperDecember
31,2013,thecompanystatementofprofitorlossfortheyearthenendedandthenotes,comprisingasummaryofthe
accountingpoliciesandotherexplanatoryinformation.
Management's responsibility
Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewith
InternationalFinancialReportingStandardsasadoptedbytheEuropeanUnionandwithPart9ofBook2oftheDutch
CivilCode,andforthepreparationofthemanagementboardreportinaccordancewithPart9ofBook2oftheDutch
CivilCode.Furthermoremanagementisresponsibleforsuchinternalcontrolasitdeterminesisnecessarytoenablethe
preparationofthefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Auditor's responsibility
Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Weconductedouraudit
inaccordancewithDutchlaw,includingtheDutchStandardsonAuditing.Thisrequiresthatwecomplywithethical
requirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsare
freefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancial
statements.Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksof
materialmisstatementofthefinancialstatements,whetherduetofraudorerror.
Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity'spreparationandfair
presentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,
butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity'sinternalcontrol.Anauditalso
includesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimates
madebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouraudit
opinion.
Opinion with respect to the consolidated financial statements
Inouropinion,theconsolidatedfinancialstatementsgiveatrueandfairviewofthefinancialpositionofASML
HoldingN.V.asperDecember31,2013andofitsresultanditscashflowsfortheyearthenendedinaccordancewith
InternationalFinancialReportingStandardsasadoptedbytheEuropeanUnionandwithPart9ofBook2oftheDutch
CivilCode.
Opinion with respect to the company financial statements
Inouropinion,thecompanyfinancialstatementsgiveatrueandfairviewofthefinancialpositionofASMLHoldingN.V.
asperDecember31,2013andofitsresultfortheyearthenendedinaccordancewithPart9ofBook2oftheDutch
CivilCode.
144
Report on other legal and regulatory requirements

PursuanttothelegalrequirementunderSection2:393sub5ateandfoftheDutchCivilCode,wehavenodeficiencies
toreportasaresultofourexaminationwhetherthemanagementboardreport,totheextentwecanassess,hasbeen
preparedinaccordancewithPart9ofBook2ofthisCode,andwhethertheinformationasrequiredunderSection2:392
sub1atb-hhasbeenannexed.Furtherwereportthatthemanagementboardreport,totheextentwecanassess,is
consistentwiththefinancialstatementsasrequiredbySection2:391sub4oftheDutchCivilCode.
DeloitteAccountantsB.V.
/s/G.M.Dekker
Eindhoven,TheNetherlands
February11,2014
145
146
Information and Investor Relations

Financial Calendar
April 16, 2014
AnnouncementofFirstQuarterresultsfor2014
April 23, 2014
GeneralMeetingofShareholders
Auditorium,ASMLBuilding7,
DeRun6665
July 16, 2014
AnnouncementofSecondQuarterresultsfor2014
October 15, 2014
AnnouncementofThirdQuarterresultsfor2014
Fiscal Year
ASMLsfiscalyearendsonDecember31,2014
Listing
TheordinarysharesofASMLarelistedontheofficialmarketoftheEuronextAmsterdambyNYSEEuronextAmsterdam
andintheUnitedStatesontheNASDAQ,underthesymbolASML.ASMLsordinarysharesmayalsotradeonother
stockexchangesfromtimetotime,althoughASMLhasnotappliedforlistingsonthoseexchangesanddoesnot
endorseandmaynotbenotifiedofsuchtrading.
Investor Relations
ASMLInvestorRelationswillsupplyinformationorcopiesoftheAnnualReportonForm20-FfiledwiththeUS
SecuritiesandExchangeCommissionandtheStatutoryAnnualReport.TheseAnnualReports,quarterlyreleasesand
otherinformationarealsoavailableonourwebsite(www.asml.com).
147
148
ASML Worldwide Contact Information

Corporate Headquarters
DeRun6501
5504DRVeldhoven
TheNetherlands
Mailing Address
P.O.Box324
5500AHVeldhoven
TheNetherlands
United States Main Offices
2650WGeronimoPlace
Chandler,AZ85224
U.S.A.
77DanburyRoad
Wilton,CT06897
U.S.A.
17075ThornmintCourt
SanDiego,CA92127
U.S.A
Asia Main Office
17thFloorSuite1702-3
Queen'sroadCentral100
HongKong
Corporate Communications
phone:+31402687870
email:corpcom@asml.com
Investor Relations
phone:+31402683938
email:investor.relations@asml.com
Formoreinformationpleasevisitour
websitewww.asml.com
149
Definitions
Name
Description
AFM
AutoriteitFinancileMarkten;theNetherlandsAuthorityfortheFinancialMarkets
AFS
Available-for-Sale
AGM
AnnualGeneralMeetingofShareholders
ArF
ArgonFluoride
ArFi
ArgonFluorideImmersion
ASML
ASMLHoldingN.V.anditssubsidiaries
ASP
Averagesellingprice
Brion
BrionTechnologies,Inc.
Canon
CanonKabushikiKaisha
CCIP
CustomerCo-InvestmentProgram
CD
CriticalDimension
CEO
ChiefExecutiveOfficer
CFO
ChiefFinancialOfficer
CGU
CashGeneratingUnit
CGUASMLexcluding
CLS
CashGeneratingUnitASMLexcludingCymerLightSources
CGUCLS
CashGeneratingUnitCymerLightSources
CMO
ChiefMarketingOfficer
Code
DutchCorporateGovernanceCode
CodeofConduct
Codeofethicsandconduct
CODM
ChiefOperatingDecisionMaker
Commission
TheUnitedStatesSecuritiesandExchangeCommission
Company
ASMLHoldingN.V.
COSO
CommitteeofSponsoringOrganizationsoftheTreadwayCommission
CPO
ChiefProgramOfficer
CRMC
CapitalResearch&ManagementCompany
Cross-License
TransitionPeriod
TheperiodbetweenJanuary1,2010andDecember31,2014
CRSB
CorporateRiskandSustainabilityBoard
CTO
ChiefTechnologyOfficer
CustomerStichtingen
IntelStichtingandTSMCStichtingjointlyreferred.SharesheldbyParticipatingCustomersin
theCCIP,areheldthroughFoundationsthatissuedtotheParticipatingCustomersdepository
receiptsrepresentingsharesheldbytheseFoundations
Cymer
FormerlyknownasCymerInc.
DeNederlandsche
Bank
theDutchcentralbank,whichisthesupervisorofallpensioncompaniesintheNetherlands
Deloitte
DeloitteAccountantsB.V.
DPT
Doublepatterningtechnology
DTC
DepositaryTrustCompany
DutchGAAP
AccountingprinciplesgenerallyacceptedintheNetherlands
EGM
ExtraordinaryGeneralMeetingofShareholders
150
Name
Description
EU
EuropeanUnion
EUR
Euros
Euro
Euros
Eurobonds
OurEUR600million5.75percentseniornotesdue2017andourEUR750million3.375percent
seniornotesdue2023
EuroclearNederland
NederlandsCentraalInstituutvoorGiraalEffectenverkeerB.V.
EUV
ExtremeUltraviolet
EVP
ExecutiveVicePresident
FAT
FactoryAcceptanceTest
FMSA
FinancialMarketsSupervisionAct('Wetophetfinancieeltoezicht'(Wft))
ForeignCurrency
Currencyotherthanthecurrencyoftheprimaryeconomicenvironmentinwhichtheentity
operates
Foundation
StichtingPreferenteAandelenASML
FTEs
Full-timeequivalents
FunctionalCurrency
Thecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates
holisticlithography
Optimizethescannerperformancebytakenintoaccounttheentirechipcreationprocess,from
designtovolumemanufacturing
IC
Intercircuit
IFRS
InternationalFinancialReportingStandards
IFRS-EU
InternationalFinancialReportingStandardsasadoptedbytheEuropeanUnion
Intel
IntelCorporation
Intel450mmNRE
FundingAgreement
Agreementrelatedtothedevelopmentof450mmlithographyequipment
IntelEUVNREFunding AgreementrelatedtothedevelopmentofEUVlithographyequipment
Agreement
IntelInvestment
Agreement
TheinvestmentagreementbetweenASMLandIntel
IntelNREFunding
Agreements
TheIntelFundingAgreementsrelatedtothedevelopmentof450mmandEUVlithography
equipment
IntelStichting
StichtingAdministratiekantoorMAKTSJAB
KPI
KeyPerformanceIndicator
KrF
KryptonFluoride
Logic
Micro-processormanufacturersandFoundries
Memory
NAND-FlashmemoryandDRAMmemorychipmakers
NASDAQ
NASDAQStockMarketLLC
NID
NotionalInterestDeduction
Nikon
NikonCorporation
NikonCross-License
Agreement
ApatentCross-LicenseagreementbetweenNikon,ASMLandZeiss,relatedtolithography
equipmentusedtomanufacturesemiconductordevices
nm
Nanometer(onebillionthofameter)
NPV
NetPresentValue
NRE
NonRecurringEngineering
NREFunding
Agreements
TheIntelNREFundingAgreements,theTSMCNREFundingAgreement,andtheSamsungNRE
FundingAgreement
NXE
NXEplatform;anewplatformutilizingtheconceptsoftheTWINSCANplatformwithcomplete
newtechnologiesinthreeareas:lightsource,lenssystem,andvacuumbody
NXE:3100
Second-generationEUVsystems
151
Name
Description
NXE:3300B
Third-generationEUVsystems
NXT
TWINSCANNXTsystems;animprovedversionoftheTWINSCANsystems,introducingnew
stagesandstagepositioncontroltechnology,whichenablesimprovedimagingandoverlay.
OCI
OtherComprehensiveIncome
Participatingcustomers CollectiveoftheparticipantsoftheCustomerCo-InvestmentProgram;IntelCorporation
(Intel),TaiwanSemiconductorManufacturingCompanyLtd.(TSMC)andSamsung
ElectronicsCorporation(Samsung)
PME
BedrijfstakpensioenfondsMetalektro
PreferenceShare
Option
Anoptiontoacquirecumulativepreferencesharesinourcapital
R&D
ResearchandDevelopment
RDA
ResearchandDevelopmentDeduction("ResearchandDevelopmentAftrek")
RecoverableAmount
Thehigheramountoffairvaluelesscoststosellandvalueinuse
Samsung
SamsungElectronicsCorporation
SamsungInvestment
Agreement
TheinvestmentagreementbetweenASMLandSamsung
SamsungNREFunding ASMLandSamsungenteredintotheSamsungNREfundingagreement
Agreement
SEC
TheUnitedStatesSecuritiesandExchangeCommission
SG&A
Selling,GeneralandAdministrative
ShareholderAgreement InconnectionwiththeissuanceofsharespursuanttotheIntelInvestmentAgreement,on
September12,2012ASML,IntelandtheIntelStichtingenteredintoashareholderagreement
(werefertopage51)
SNC
SelectionandNominationCommittee
SOX404
Section404oftheSarbanes-OxleyActof2002
SPE
SpecialPurposeEntity
SPEShareholders
SyndicateofthreebankssolelyforthepurposeofleasingtheheadquarterinVeldhoven
STI
Short-termincentive
theIntelInvestment
Agreement
TheinvestmentagreementbetweenASMLandIntel
TSMC
TaiwanSemiconductorManufacturingCompanyLtd.
TSMCInvestment
Agreement
TheinvestmentagreementbetweenASMLandTSMC
TSMCNREFunding
Agreement
ASMLandTSMCenteredintotheTSMCNREfundingagreement
TSMCStichting
StichtingAdministratiekantoorTSMC
U.S.dollars
UnitedStatesdollars
USGAAP
GenerallyacceptedaccountingprinciplesintheUnitedStatesofAmerica
USD
UnitedStatesdollars
VLSIResearch
Anindependentindustryresearchfirmthatsurveyedcustomersrepresenting95.0percentofthe
worldstotalsemiconductormarket
WACC
WeightedAverageCostofCapital
Wavelength
Thefrequencyoflightgoingthroughprojectionlenses;theshorterthewavelength,thesmaller
theline-widthandthefinerthepatternontheIC
YieldStar
Advancedwafermetrologysystem
Zeiss
CarlZeissSMTAG
152
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13

Statutory Annual Report 2013

Supervisory Board Report

Corporate Governance Paragraph

Management Board Report

Directors Responsibility Statement

Consolidated Financial Statements

Company Financial Statements

Information and Investor Relations

ASML Worldwide Contact Information

Peter T.F.M. Wennink (1957)

Supervisory Board Report

Meetings and Activities of the Supervisory Board

Composition of the Supervisory Board

Supervisory Board Committees

Technology and Strategy Committee

Remuneration of the Supervisory Board

Composition of the Board of Management

Remuneration of the Board of Management

Gratitude to ASML Employees

Information on Supervisory Board Members

P.F.M. van der Meer Mohr

Corporate Governance Paragraph

II. Board of Management

Remuneration of the Board of Management

III. Supervisory Board

Meetings and Activities of the Supervisory Board

Expertise, Composition, Appointment

IV. Shareholders and General Meeting of Shareholders

VI. Required Information Article 10 Takeover Directive

Identity of Person or Group

Appointment of Board of Management and Supervisory Board

VII. Deviation from the Code

Management Board Report

Explanation Per Risk

We Are Dependent on the Continued Operation of a Limited Number of Manufacturing Facilities

Financial Risk Management

Semiconductor Equipment Industry

Year ended December 31

Manufacturing, Logistics and Suppliers

ASML Operations Update

Year ended December 31

Year ended December 31

Year ended December 31

Year ended December 31

Customer Co-Investment Program

Remuneration of the Supervisory Board

Remuneration of the Board of Management

Directors Responsibility Statement

Corporate Responsibility Report 2013

US GAAP and Dutch Statutory Annual Reports

Year ended December 31

Net income based on US GAAP

Shareholders equity under U.S. GAAP

Statutory Interim Report 2013

Directors Responsibility Statement

In Control Statement (Dutch Corporate Governance Code)

Consolidated Financial Statements

Consolidated Statement of Profit or Loss

Total net sales

Total cost of sales

Income before income taxes

Consolidated Statement of Comprehensive Income