Form 6-K ASML HOLDING NV For: Apr 18

April 18, 2018 6:12 AM

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
______________________

FORM 6-K

REPORT OF A FOREIGN ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For April 18, 2018

______________________

ASML Holding N.V.

De Run 6501

5504 DR Veldhoven

The Netherlands

(Address of principal executive offices)

______________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If ‘‘Yes’’ is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

EXHIBITS 99.1, 99.3, AND 99.4 TO THIS REPORT ON FORM 6-K ARE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-116337), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-126340), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-136362), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-141125), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-142254), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-144356), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-147128), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-153277), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-162439), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-170034), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-188938), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-190023), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-192951), THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-203390) AND THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-219442) OF ASML HOLDING N.V. AND IN THE OUTSTANDING PROSPECTUSES CONTAINED IN SUCH REGISTRATION STATEMENTS.

Exhibits


99.1	“Strong DUV demand drives solid Q1 results and confirms positive outlook for 2018. Multiple EUV orders, including High-NA, demonstrate further adoption of EUV technology", press release dated April 18, 2018


99.2	“Strong DUV demand drives solid Q1 results and confirms positive outlook for 2018. Multiple EUV orders, including High-NA, demonstrate further adoption of EUV technology", presentation dated April 18, 2018


99.3	Summary US GAAP Consolidated Financial Statements


99.4	Summary IFRS Consolidated Financial Statements

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ASML HOLDING N.V. (Registrant)

Date: April 18, 2018 By: /s/ Peter T.F.M. Wennink

Peter T.F.M. Wennink

Chief Executive Officer

Exhibit 99.1

Strong DUV demand drives solid Q1 results and confirms positive outlook for 2018

Multiple EUV orders, including High-NA, demonstrate further adoption of EUV technology

VELDHOVEN, the Netherlands, April 18, 2018 - ASML Holding N.V. (ASML) today publishes its 2018 first-quarter results.


•	Q1 net sales of EUR 2.29 billion, net income EUR 540 million, gross margin 48.7 percent


•	ASML expects Q2 2018 net sales between EUR 2.5 billion and EUR 2.6 billion and a gross margin around 43 percent reflecting a significant increase in EUV sales



(Figures in millions of euros unless otherwise indicated)	Q4 2017¹	Q1 2018
Net sales	2,561	2,285
...of which Installed Base Management sales²	606	617

Other income (Co-Investment Program)	24	0

New lithography systems sold (units)	48	48
Used lithography systems sold (units)	9	1

Net bookings ³	2,935	2,442

Gross profit	1,156	1,113
Gross margin (%)	45.2	48.7

Net income	644	540
EPS (basic; in euros)	1.50	1.26

End-quarter cash and cash equivalents and short-term investments	3,288	3,194

(1) As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The fourth-quarter figures have not been adjusted to reflect these changes in accounting policy.

(2) Installed Base Management sales equals our net service and field option sales.

(3) Bookings do not include High-NA EUV orders

A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com

CEO Statement

"Our first quarter sales were somewhat stronger than expected and our gross margin was above our guidance, mostly driven by the volume and mix of our DUV and holistic litho products. During the quarter we shipped three EUV systems and an additional system is in the process of being shipped. The continued growth of our EUV business is confirmed by nine more orders for NXE:3400B EUV systems in Q1. Customers have publicly discussed taking EUV into high volume production starting by the end of this year. We will support this launch with a plan to ship 20 EUV systems in 2018 and have production capacity for at least 30 systems in 2019. Furthermore, regarding the next-generation EUV platform, High-NA, we received the first four orders from three customers and we also sold options to buy eight more systems. High-NA is an extension of EUV lithography and will enable geometric chip scaling beyond the next decade, offering a resolution and overlay capability which is 70 percent better than today’s most advanced EUV systems," said ASML President and Chief Executive Officer Peter Wennink.

"All in all, we saw a good start of the year and we reiterate our expectation for continued solid growth in 2018, both in sales and profitability."

Q1 Product Highlights


•	In our DUV business, our latest NXT machines have shown capability to run in excess of the productivity milestone of 6,000 wafers per day, with an average five percent productivity increase over 12 months, supporting our customers' value requirements.


•	In our Holistic Lithography product portfolio to date we have shipped multiple e-beam-based pattern fidelity metrology systems (ePfm5) which deliver high resolution capability to detect systematic defects. This

innovation, where ASML's e-beam metrology is combined with its computational lithography software, will make it possible to provide e-beam-based feedback to the lithography scanner in a production environment. We also demonstrated the first proof of concept of multiple e-beams to further improve productivity of e-beam metrology and expand the application opportunity in high volume production.


•	Throughput of our EUV platform continued to improve, with more than 125 wafers per hour measured at a customer site (testing based on ASML's Acceptance Test Procedures - ATP), meeting the productivity milestone agreed with our customers. We also demonstrated 140 wafers per hour at ASML.

Outlook

For the second-quarter of 2018, ASML expects net sales between EUR 2.5 billion and EUR 2.6 billion, a gross margin around 43 percent, reflecting a significant increase in EUV sales, R&D costs of about EUR 375 million, SG&A costs of about EUR 115 million. Our target effective annualized tax rate is around 14 percent.

Dividend Proposal

ASML has submitted a proposal to the 2018 Annual General Meeting of Shareholders to declare a dividend in respect of 2017 of EUR 1.40 per ordinary share (for a total amount of approximately EUR 600 million), compared with a dividend of EUR 1.20 per ordinary share paid in respect of 2016.

Update Share Buyback Program

As part of ASML’s financial policy to return excess cash to shareholders through dividends and regularly timed share buybacks, in January 2018 ASML announced its intention to purchase up to EUR 2.5 billion of shares to be executed within the 2018–2019 time frame. ASML intends to cancel these shares after repurchase, with the exception of up to 2.4 million shares which will be used to cover employee share plans.

Through April 1, 2018, ASML has acquired 1.0 million shares under this program for a total consideration of EUR 170 million.

The current program may be suspended, modified or discontinued at any time. All transactions under this program are published on ASML’s website (www.asml.com/investors) on a weekly basis.



Media Relations Contacts	Investor Relations Contacts
Monique Mols, phone +31 6 5284 4418	Skip Miller, phone +1 480 235 0934
Lucas van Grinsven, phone +31 6 1019 9532	Marcel Kemp, phone +31 40 268 6494
Brittney Wolff, phone +1 408 483 3207	Craig DeYoung, phone +852 2295 1168

Investor and Media Conference Call

A conference call for investors and media will be hosted by CEO Peter Wennink and CFO Wolfgang Nickl at 15:00 Central European Time / 09:00 AM U.S. Eastern time. To register for the call and receive dial-in information, go to www.asml.com/qresultscall. Listen-only access is also available via www.asml.com.

About ASML

ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is to enable affordable microelectronics that improve the quality of life. To achieve this, our mission is to invent, develop, manufacture and service advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry. ASML's guiding principle is continuing Moore's Law towards ever smaller, cheaper, more powerful and energy-efficient semiconductors. This results in increasingly powerful and capable electronics that enable the world to progress within a multitude of fields, including healthcare, technology, communications, energy, mobility, and entertainment. ASML is a multinational company with offices in 60 cities in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 20,000 people on payroll and flexible contracts (expressed in full time equivalents). ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML. More information about ASML, our products and technology, and career opportunities is available on www.asml.com.

US GAAP and IFRS Financial Reporting

ASML's primary accounting standard for quarterly earnings releases and annual reports is US GAAP, the accounting principles generally accepted in the United States of America. Quarterly US GAAP consolidated statements of operations, consolidated statements of cash flows and consolidated balance sheets, and a reconciliation of net income from US GAAP to IFRS as adopted by the EU (‘IFRS’) are available on www.asml.com.

The comparative figures in the consolidated balance sheets, the related consolidated statements of operations and consolidated statements of cash flows for the quarter and year ended, are presented without taking into account the new accounting standards ASC 606 - Revenue from Contracts with Customers and ASC 842 - Leases.

In addition to reporting financial figures in accordance with US GAAP, ASML also reports financial figures in accordance with IFRS for statutory purposes. The most significant differences between US GAAP and IFRS that affect ASML concern the capitalization of certain product development costs and the accounting of income taxes. ASML’s quarterly IFRS consolidated statement of profit or loss, consolidated statement of cash flows, consolidated statement of financial position and a reconciliation of net income from US GAAP to IFRS are available on www.asml.com.

The comparative figures in the consolidated statement of financial position, the related consolidated statements of profit or loss and consolidated statement of cash flows for the quarter and year ended, are presented without taking into account the new accounting standards IFRS 15 - Revenue from Contracts with Customers and IFRS 16 - Leases.

The consolidated balance sheets of ASML Holding N.V. as of April 1, 2018, the related consolidated statements of operations and consolidated statements of cash flows for the quarter and year ended April 1, 2018 as presented in this press release are unaudited.

Regulated Information

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Forward Looking Statements

This document contains statements relating to certain projections, business trends and other matters that are forward-looking, including statements with respect to expected trends and outlook, bookings, expected financial results and trends, including expected sales, EUV revenue, gross margin, R&D and SG&A expenses, and annualized effective tax rate for the first quarter of 2018, and expected financial results and trends for the full year 2018, including the expectation for continued solid growth in sales and profitability in 2018, annual revenue opportunity for ASML and EPS potential by 2020 with significant further growth potential into the next decade, expected industry trends and expected trends in the business environment, statements with respect to the intent of customers to insert EUV into volume manufacturing, ASML’s commitment to secure system performance, shipments, and support for volume manufacturing, including availability, productivity, throughput, shipments and the ability to support a growing installed base, including timing of shipments (including planned EUV shipments in 2018 and production capacity in 2019), statements with respect to orders, including High-NA system orders and options, the expected benefits (and performance commitments) of High-NA, including securing ASML’s lithography roadmap beyond the next decade, lower costs per function by improving imaging, overlay and productivity, increased numerical aperture of the new optical system on High-NA systems, targeted throughput and the new product portfolio resulting from the addition of High-NA, statements with respect to the DUV productivity milestone, the benefits of HMI’s e-beam metrology capabilities, including the introduction of a new class of pattern fidelity control, the reduction of measurement time, the benefits of combining ASML’s e-beam metrology with computational lithography software and the potential introduction of multiple e-beams in one system and multi-beam enabling further throughput scaling, shrink being a key driver supporting innovation and providing long-term industry growth, lithography enabling affordable shrink and delivering value to customers, the expected continuation of Moore's law and that EUV will continue to enable Moore’s law and drive long term value for ASML beyond the next decade, intention to return excess cash to shareholders through stable or growing dividends and regularly timed share buybacks in line with our policy, statements about our proposed dividend, dividend policy and intention to repurchase shares and statements with respect to the share repurchase plan for 2018-2019, including the intention to use certain shares to cover employee share plans and cancel the rest of the shares upon repurchase. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue", "targets", "commits to secure" and variations of these words or comparable words. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors, including the impact of general economic conditions on consumer confidence and demand for our customers' products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, conditions included in system orders and the risks that systems are not shipped pursuant to orders or as expected because conditions are not met or for any other reason, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products including EUV, the number and timing of EUV systems expected to be shipped and recognized in revenue, actual EUV production capacity, delays in EUV systems production and development and volume production by customers, including meeting development requirements for volume production, demand for EUV systems being sufficient to result in utilization of EUV facilities in which ASML has made significant investments, our ability to enforce patents and protect intellectual property rights, the outcome of intellectual property litigation, availability of raw materials, critical manufacturing equipment and qualified employees, trade environment, changes in exchange rates, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases, results of the share repurchase plan and other risks indicated in the risk factors included in ASML's Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. These forward-looking statements are made only as of the date of this document. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Strong DUV demand drives solid Q1 results and confirms positive outlook for 2018 Multiple EUV orders, including High-NA, demonstrate further adoption of EUV technology ASML 2018 First-Quarter Results Veldhoven, the Netherlands April 18, 2018 Public

Public Slide 2 April 18, 2018 Agenda • Investor key messages • Business highlights • Outlook • Product highlights • Financial statements

Public Slide 3 April 18, 2018 Investor key messages

Public Slide 4 April 18, 2018 Investor key messages • Shrink is a key industry driver supporting innovation and providing long term industry growth • Lithography enables affordable shrink and therefore delivers compelling value for our customers • EUV will enable continuation of Moore’s Law and will drive long term value for ASML beyond the next decade • DUV, Holistic Litho and EUV are highly differentiated products providing unique value drivers for our customers and ASML • ASML models a 2020 annual revenue opportunity of € 11 billion with an EPS > € 9*, with significant further growth potential into the next decade • HMI provides market leading e-beam metrology capability which expands our integrated Holistic Lithography solutions to include a new class of pattern fidelity control • We expect to continue to return excess cash to our shareholders through stable or growing dividends and regularly timed share buybacks in line with our policy • We will host an Investor Day on November 8th, 2018 at our headquarters in The Netherlands * based on model details and assumptions as presented in our 2016 Investor Day (October 31, 2016)

Public Slide 5 April 18, 2018 Business highlights

Public Slide 6 April 18, 2018 Q1 results summary • Net sales of € 2,285 million, net systems sales valued at € 1,668 million, Installed Base Management sales at € 617 million • Gross margin of 48.7% • Operating margin of 28.1% • Net income as a percentage of net sales of 23.6% • Net bookings of € 2,442 million, excluding High-NA EUV orders - Installed Base Management equals our service and field option sales - Net bookings are calculated based upon the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842) which ASML has adopted as of January 1, 2018

Public Slide 7 April 18, 2018 Net system sales breakdown in value Q1’18 total value € 1,668 million Q4’17 total value € 1,955 million - Lithography systems do not include metrology and inspection systems - Logic equals our Foundry and IDM sales - As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The quarterly comparative numbers have not been adjusted to reflect these changes in accounting policy

Public Slide 8 April 18, 2018 Logic Memory Total net sales million € by End-use Installed Base Management - Installed Base Management equals our service and field option sales - Logic equals our Foundry and IDM sales - As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The comparative numbers have not been adjusted to reflect these changes in accounting policy

Public Slide 9 April 18, 2018 Bookings activity by End-use Q1’18 total value € 2,442 million Q4’17 total value € 2,935 million Lithography systems New Used Units 55 7 Lithography systems New Used Units 68 7 - Lithography systems do not include metrology and inspection systems - Logic equals our Foundry and IDM sales - As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The quarterly comparative numbers have not been adjusted to reflect these changes in accounting policy - Bookings do not include High-NA EUV orders

Public Slide 10 April 18, 2018 • Proposal submitted to 2018 Annual General Meeting of Shareholders to pay a dividend of € 1.40 per ordinary share, for a total of around € 600 million, in respect of fiscal year 2017 • € 170 million worth of shares has been repurchased in Q1 • € 2,330 million of the 2018/2019 share buyback program remaining Capital return to shareholders Dividend The dividend for a year is paid in the subsequent year 2009 Capital return is cumulative share buyback + dividend proposed Share buyback YTD

Public Slide 11 April 18, 2018 Outlook

Public Slide 12 April 18, 2018 Q2 Outlook • Q2 2018 net sales between € 2.5 billion and € 2.6 billion ◦ Including EUV revenue around € 600 million • Gross margin around 43% • R&D costs of about € 375 million • SG&A costs of about € 115 million • Effective annualized tax rate around 14%

Public Slide 13 April 18, 2018 Product highlights

Public Slide 14 April 18, 2018 EUV commitment to volume manufacturing continues Customers commitment to insert EUV in volume manufacturing by ordering systems ASML commitment to securing system performance, shipments and support required for volume manufacturing • 3 EUV systems shipped in Q1, 1 shipment in progress, 1 revenue recognized • Received 9 EUV orders in Q1 • In addition, received 4 High-NA orders for R&D systems from 3 customers and sold options for 8 early volume systems • Planned shipments of 20 systems in 2018, production capacity of at least 30 systems in 2019 For volume manufacturing of logic and memory, ASML remains committed to deliver: • Throughput of >125 wafers per hour • Availability of >90% on average • Shipments on time in sufficient volume • Ability to support a growing installed base

Public Slide 15 April 18, 2018 Continuing progress on our EUV productivity roadmap NXE:3400B Acceptance Test Procedures (ATP) test: 26x33mm2, 96 fields, 20mJ/cm2

Public Slide 16 April 18, 2018 High-NA commitment secures lithography roadmap beyond the next decade • Extension of EUV with High-NA lithography enables the IC industry to continue to drive down cost per function by improving imaging, overlay and productivity ◦ NA (numerical aperture) of the new optical system will increase from 0.33 on current EUV systems, to 0.55 on High-NA systems ◦ Throughput targeted at 185 wafers per hour • With the addition of High-NA, the ASML product portfolio will include 0.33 NA and 0.55 NA EUV, dry and immersion DUV, as well as Holistic products, all designed to work seamlessly together in production • Last year’s investment in Carl Zeiss SMT solidifies our development timeline and reduces our execution risk • Received four orders for High-NA R&D systems from three leading semiconductor manufacturers targeted to start shipping by end of 2021 • Sold options for eight High-NA early volume systems targeted to start shipping in 2024

Public Slide 17 April 18, 2018 Applications Product Highlights • Initial ePfm5 customer evaluation data shows significant measurement cycle time reductions • Shipped our first YS:1375 for In Device Measurement • First 3x3 multi-beam images captured on proof of concept system • YieldStar metrology system growth further accelerates with memory adoption

Public Slide 18 April 18, 2018 Multi-beam enables further throughput scaling First 3x3 multi-beam image captured, ~9x increase in throughput capability Surface inspected by 9 beamsSurface inspected by 1 beam 9x 1 4 7 2 5 8 3 6 9 1 beam number Demonstrated 9 uniform images

Public Slide 19 April 18, 2018 YieldStar metrology system growth further accelerates with memory adoption 2013 shipments 2017 shipments

Public Slide 20 April 18, 2018 Financial statements

Public Slide 21 April 18, 2018 Consolidated statements of operations M€ Q1 2017 1 Q2 2017 1 Q3 2017 1 Q4 2017 1 Q1 2018 Net sales 1,944 2,101 2,447 2,561 2,285 Gross profit 925 946 1,050 1,156 1,113 Gross margin % 47.6 45.0 42.9 45.2 48.7 Other income 2 24 24 24 24 — R&D costs (315) (313) (315) (317) (357) SG&A costs (99) (102) (103) (113) (114) Income from operations 535 555 656 750 642 Operating income as a % of net sales 27.5 26.4 26.8 29.3 28.1 Net income 452 466 557 644 540 Net income as a % of net sales 23.3 22.2 22.8 25.1 23.6 Earnings per share (basic) € 1.05 1.08 1.30 1.50 1.26 Earnings per share (diluted) € 1.05 1.08 1.29 1.49 1.26 Lithography systems sold (units) 3 44 42 55 57 49 Net booking value 4 1,894 2,375 2,154 2,935 2,442 1 As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The quarterly comparative numbers have not been adjusted to reflect these changes in accounting policy. 2 Customer Co-Investment Program (CCIP). 3 Lithography systems do not include metrology and inspection systems. 4 Our systems net bookings include all system sales orders for which written authorizations have been accepted (for EUV starting with the NXE:3350B and excluding the High-NA systems). These numbers have been prepared in accordance with US GAAP

Public Slide 22 April 18, 2018 Consolidated statements of Cash flows M€ Q1 2017 1 Q2 2017 1 Q3 2017 1 Q4 2017 1 Q1 2018 Net income 452 466 557 644 540 Net cash provided by (used in) operating activities (168) 530 400 1,037 191 Net cash provided by (used in) investing activities 150 (754) (72) (533) 182 Net cash provided by (used in) financing activities 12 (744) (154) (323) (160) Net increase (decrease) in cash & cash equivalents 4 (996) 163 181 206 Free cash flow* (212) 469 302 882 56 Cash and cash equivalents and short-term investments 3,836 2,514 2,678 3,288 3,194 * Free cash flow is defined as net cash provided by (used in) operating activities minus investments in Capex (Purchase of Property, plant and equipment and intangibles), see US GAAP Consolidated Financial Statements. 1 As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The quarterly comparative numbers have not been adjusted to reflect these changes in accounting policy. These numbers have been prepared in accordance with US GAAP

Public Slide 23 April 18, 2018 Consolidated Balance sheets M€ Assets Q1 2017 1 Q2 2017 1 Q3 2017 1 Q4 2017 1 Q1 2018 Cash & cash equivalents and short-term investments 3,836 2,514 2,678 3,288 3,194 Net accounts receivable and finance receivables 1,426 1,758 2,066 2,096 2,025 Contract assets — — — — 12 Inventories, net 2,996 3,137 2,998 2,958 3,231 Other assets 1,211 1,354 1,339 1,470 1,437 Tax assets 171 63 99 94 403 Equity method investments — 1,002 1,008 982 971 Goodwill 4,784 4,646 4,565 4,541 4,541 Other intangible assets 1,279 1,231 1,191 1,166 1,146 Property, plant and equipment 1,622 1,567 1,552 1,601 1,560 Right-of-use assets — — — — 124 Total assets 17,325 17,272 17,496 18,196 18,644 Liabilities and shareholders' equity Current liabilities 2,876 3,125 2,974 3,342 3,132 Non-current liabilities 4,206 4,114 4,175 4,178 4,450 Shareholders' equity 10,243 10,033 10,347 10,676 11,062 Total liabilities and shareholders' equity 17,325 17,272 17,496 18,196 18,644 These numbers have been prepared in accordance with US GAAP 1 As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The quarterly comparative numbers have not been adjusted to reflect these changes in accounting policy.

Public Slide 24 April 18, 2018 This document contains statements relating to certain projections, business trends and other matters that are forward-looking, including statements with respect to expected trends and outlook, bookings, expected financial results and trends, including expected sales, EUV revenue, gross margin, R&D and SG&A expenses, and annualized effective tax rate for the first quarter of 2018, and expected financial results and trends for the full year 2018, including the expectation for continued solid growth in sales and profitability in 2018, annual revenue opportunity for ASML and EPS potential by 2020 with significant further growth potential into the next decade, expected industry trends and expected trends in the business environment, statements with respect to the intent of customers to insert EUV into volume manufacturing, ASML’s commitment to secure system performance, shipments, and support for volume manufacturing, including availability, productivity, throughput, shipments and the ability to support a growing installed base, including timing of shipments (including planned EUV shipments in 2018 and production capacity in 2019), statements with respect to orders, including High-NA system orders and options, the expected benefits (and performance commitments) of High-NA, including securing ASML’s lithography roadmap beyond the next decade, lower costs per function by improving imaging, overlay and productivity, increased numerical aperture of the new optical system on High-NA systems, targeted throughput and the new product portfolio resulting from the addition of High-NA, statements with respect to the DUV productivity milestone, the benefits of HMI’s e-beam metrology capabilities, including the introduction of a new class of pattern fidelity control, the reduction of measurement time, the benefits of combining ASML’s e-beam metrology with computational lithography software and the potential introduction of multiple e-beams in one system and multi-beam enabling further throughput scaling, shrink being a key driver supporting innovation and providing long-term industry growth, lithography enabling affordable shrink and delivering value to customers, the expected continuation of Moore's law and that EUV will continue to enable Moore’s law and drive long term value for ASML beyond the next decade, intention to return excess cash to shareholders through stable or growing dividends and regularly timed share buybacks in line with our policy, statements about our proposed dividend, dividend policy and intention to repurchase shares and statements with respect to the share repurchase plan for 2018-2019, including the intention to use certain shares to cover employee share plans and cancel the rest of the shares upon repurchase. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue", "targets", "commits to secure" and variations of these words or comparable words. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors, including the impact of general economic conditions on consumer confidence and demand for our customers' products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, conditions included in system orders and the risks that systems are not shipped pursuant to orders or as expected because conditions are not met or for any other reason, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products including EUV, the number and timing of EUV systems expected to be shipped and recognized in revenue, actual EUV production capacity, delays in EUV systems production and development and volume production by customers, including meeting development requirements for volume production, demand for EUV systems being sufficient to result in utilization of EUV facilities in which ASML has made significant investments, our ability to enforce patents and protect intellectual property rights, the outcome of intellectual property litigation, availability of raw materials, critical manufacturing equipment and qualified employees, trade environment, changes in exchange rates, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases, results of the share repurchase plan and other risks indicated in the risk factors included in ASML's Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. These forward-looking statements are made only as of the date of this document. We do not undertake to update or revise the forward- looking statements, whether as a result of new information, future events or otherwise. Forward looking statements

Exhibit 99.3

ASML - Summary US GAAP Consolidated Statements of Operations ^1,2



	Three months ended,
	Apr 2,		Apr 1,
	2017³		2018
(in millions EUR, except per share data)

Net system sales	1,215.8		1,667.7
Net service and field option sales	727.8		617.3
Total net sales	1,943.6		2,285.0

Total cost of sales	(1,019.0	)	(1,171.5	)
Gross profit	924.6		1,113.5

Other income	23.9		—
Research and development costs	(315.1	)	(357.1	)
Selling, general and administrative costs	(98.6	)	(114.2	)
Income from operations	534.8		642.2

Interest and other, net	(14.1	)	(10.5	)
Income before income taxes	520.7		631.7

Provision for income taxes	(68.6	)	(74.4	)
Income after income taxes	452.1		557.3

Profit (loss) related to equity method investments	—		(17.6	)
Net income	452.1		539.7


Basic net income per ordinary share	1.05		1.26
Diluted net income per ordinary share ⁴	1.05		1.26


Weighted average number of ordinary shares used in computing per share amounts (in millions):
Basic	430.1		427.2
Diluted ⁴	432.3		428.9

ASML - Ratios and Other Data ^1,2



	Three months ended,
	Apr 2,		Apr 1,
	2017³		2018
(in millions EUR, except otherwise indicated)

Gross profit as a percentage of net sales	47.6	%	48.7	%
Income from operations as a percentage of net sales	27.5	%	28.1	%
Net income as a percentage of net sales	23.3	%	23.6	%
Income taxes as a percentage of income before income taxes	13.2	%	11.8	%
Shareholders’ equity as a percentage of total assets	59.1	%	59.3	%
Sales of lithography systems (in units) ⁵	44		49
Value of booked systems (EUR millions) ⁶	1,894		2,442
Net bookings lithography systems (in units) ⁵	55		62
Number of payroll employees in FTEs	14,483		16,994
Number of temporary employees in FTEs	2,657		3,271

ASML - Summary US GAAP Consolidated Balance Sheets^1,2



	Dec 31,	Apr 1,
	2017³	2018
(in millions EUR)

ASSETS
Cash and cash equivalents	2,259.0	2,464.8
Short-term investments	1,029.3	729.3
Accounts receivable, net	1,772.3	1,603.4
Finance receivables, net	59.1	228.7
Current tax assets	61.6	312.5
Contract assets	—	11.5
Inventories, net	2,958.4	3,231.5
Other assets	867.3	631.0
Total current assets	9,007.0	9,212.7

Finance receivables, net	264.9	193.2
Deferred tax assets	31.7	90.7
Other assets	602.7	805.9
Equity method investments	982.2	970.5
Goodwill	4,541.1	4,541.2
Other intangible assets, net	1,166.0	1,146.5
Property, plant and equipment, net	1,600.8	1,559.5
Right-of-use assets	—	124.0
Total non-current assets	9,189.4	9,431.5

Total assets	18,196.4	18,644.2

LIABILITIES AND SHAREHOLDERS’ EQUITY
Total current liabilities	3,341.9	3,132.2

Long-term debt	3,000.1	2,978.6
Deferred and other tax liabilities	327.9	354.7
Provisions	21.2	22.3
Contract liabilities	—	819.4
Accrued and other liabilities	829.1	275.3
Total non-current liabilities	4,178.3	4,450.3

Total liabilities	7,520.2	7,582.5

Total shareholders’ equity	10,676.2	11,061.7
Total liabilities and shareholders’ equity	18,196.4	18,644.2

ASML - Summary US GAAP Consolidated Statements of Cash Flows^1,2



	Three months ended,
	Apr 2,		Apr 1,
	2017³		2018
(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income	452.1		539.7

Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	110.1		102.6
Impairment	0.2		2.0
Loss on disposal of property, plant and equipment	0.3		0.4
Share-based payments	13.5		12.2
Allowance for doubtful receivables	1.2		2.4
Allowance for obsolete inventory	29.3		59.0
Deferred income taxes	16.3		8.6
Equity method investments, net of income taxes	—		17.6
Changes in assets and liabilities	(791.4	)	(553.5	)
Net cash provided by (used in) operating activities	(168.4	)	191.0

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(38.6	)	(129.2	)
Purchase of intangible assets	(5.2	)	(6.1	)
Purchase of short-term investments	(75.0	)	(79.3	)
Maturity of short-term investments	300.0		379.3
Cash from (used for) derivative financial instruments	(30.7	)	23.6
Loans issued and other investments	—		(0.2	)
Repayment on loans	—		—
Acquisition of equity method investments	—		(5.9	)
Dividend income from equity method investments	—		—
Net cash provided by (used in) investing activities	150.5		182.2

CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid	—		—
Purchase of shares	—		(166.9	)
Net proceeds from issuance of shares	13.0		7.0
Repayment of debt	(1.2	)	(0.3	)
Net cash provided by (used in) financing activities	11.8		(160.2	)

Net cash flows	(6.1	)	213.0

Effect of changes in exchange rates on cash	9.8		(7.2	)
Net increase (decrease) in cash and cash equivalents	3.7		205.8

ASML - Quarterly Summary US GAAP Consolidated Statements of Operations ^1,2



	Three months ended,
		Apr 2,		Jul 2,		Oct 1,		Dec 31,		Apr 1,
		2017 ³		2017 ³		2017 ³		2017 ³		2018
(in millions EUR, except per share data)

Net system sales		1,215.8		1,384.1		1,818.9		1,954.9		1,667.7
Net service and field option sales		727.8		717.3		628.5		605.5		617.3
Total net sales		1,943.6		2,101.4		2,447.4		2,560.4		2,285.0

Total cost of sales		(1,019.0	)	(1,154.9	)	(1,397.9	)	(1,404.3	)	(1,171.5	)
Gross profit		924.6		946.5		1,049.5		1,156.1		1,113.5

Other income		23.9		24.0		23.9		24.0		—
Research and development costs		(315.1	)	(312.7	)	(314.5	)	(317.4	)	(357.1	)
Selling, general and administrative costs		(98.6	)	(102.0	)	(103.3	)	(112.7	)	(114.2	)
Income from operations		534.8		555.8		655.6		750.0		642.2

Interest and other, net		(14.1	)	(10.8	)	(12.5	)	(12.9	)	(10.5	)
Income before income taxes		520.7		545.0		643.1		737.1		631.7

Provision for income taxes		(68.6	)	(78.7	)	(86.0	)	(77.4	)	(74.4	)
Income after income taxes		452.1		466.3		557.1		659.7		557.3

Profit (loss) related to equity method investments		—		—		—		(16.7	)	(17.6	)
Net income		452.1		466.3		557.1		643.0		539.7


Basic net income per ordinary share		1.05		1.08		1.30		1.50		1.26
Diluted net income per ordinary share ⁴		1.05		1.08		1.29		1.49		1.26


Weighted average number of ordinary shares used in computing per share amounts (in millions):
Basic		430.1		430.4		430.1		428.4		427.2
Diluted ⁴		432.3		432.4		432.0		430.3		428.9

ASML - Quarterly Summary Ratios and other data ^1,2




	Apr 2,		Jul 2,		Oct 1,		Dec 31,		Apr 1,
	2017 ³		2017 ³		2017 ³		2017 ³		2018
(in millions EUR, except otherwise indicated)

Gross profit as a percentage of net sales	47.6	%	45.0	%	42.9	%	45.2	%	48.7	%
Income from operations as a percentage of net sales	27.5	%	26.4	%	26.8	%	29.3	%	28.1	%
Net income as a percentage of net sales	23.3	%	22.2	%	22.8	%	25.1	%	23.6	%
Income taxes as a percentage of income before income taxes	13.2	%	14.4	%	13.4	%	10.5	%	11.8	%
Shareholders’ equity as a percentage of total assets	59.1	%	58.1	%	59.1	%	58.7	%	59.3	%
Sales of lithography systems (in units)⁵	44		42		55		57		49
Value of booked systems (EUR millions) ⁶	1,894		2,375		2,154		2,935		2,442
Net bookings lithography systems (in units) ⁵	55		55		70		75		62
Number of payroll employees in FTEs	14,483		15,005		15,615		16,219		16,994
Number of temporary employees in FTEs	2,657		2,722		2,826		2,997		3,271

ASML - Quarterly Summary US GAAP Consolidated Balance Sheets^1,2



	Apr 2,	Jul 2,	Oct 1,	Dec 31,	Apr 1,
	2017 ³	2017 ³	2017 ³	2017 ³	2018
(in millions EUR)

ASSETS
Cash and cash equivalents	2,910.6	1,914.2	2,077.6	2,259.0	2,464.8
Short-term investments	925.0	600.0	600.0	1,029.3	729.3
Accounts receivable, net	864.8	1,224.6	1,664.2	1,772.3	1,603.4
Finance receivables, net	346.9	413.6	138.2	59.1	228.7
Current tax assets	137.0	32.6	73.6	61.6	312.5
Contract assets	—	—	—	—	11.5
Inventories, net	2,995.7	3,136.9	2,998.5	2,958.4	3,231.5
Other assets	589.6	719.6	741.8	867.3	631.0
Total current assets	8,769.6	8,041.5	8,293.9	9,007.0	9,212.7

Finance receivables, net	213.6	120.2	263.9	264.9	193.2
Deferred tax assets	34.5	30.1	25.5	31.7	90.7
Other assets	621.1	634.6	597.4	602.7	805.9
Equity method investments	—	1,002.1	1,007.9	982.2	970.5
Goodwill	4,784.1	4,645.9	4,564.7	4,541.1	4,541.2
Other intangible assets, net	1,279.5	1,230.4	1,191.1	1,166.0	1,146.5
Property, plant and equipment, net	1,622.4	1,567.3	1,552.0	1,600.8	1,559.5
Right-of-use assets	—	—	—	—	124.0
Total non-current assets	8,555.2	9,230.6	9,202.5	9,189.4	9,431.5

Total assets	17,324.8	17,272.1	17,496.4	18,196.4	18,644.2

LIABILITIES AND SHAREHOLDERS’ EQUITY
Total current liabilities	2,875.4	3,125.0	2,974.2	3,341.9	3,132.2

Long-term debt	3,040.3	2,995.5	2,996.7	3,000.1	2,978.6
Deferred and other tax liabilities	410.1	337.9	320.0	327.9	354.7
Provisions	20.5	20.5	21.2	21.2	22.3
Contract liabilities	—	—	—	—	819.4
Accrued and other liabilities	735.5	760.6	837.5	829.1	275.3
Total non-current liabilities	4,206.4	4,114.5	4,175.4	4,178.3	4,450.3

Total liabilities	7,081.8	7,239.5	7,149.6	7,520.2	7,582.5

Total shareholders’ equity	10,243.0	10,032.6	10,346.8	10,676.2	11,061.7
Total liabilities and shareholders’ equity	17,324.8	17,272.1	17,496.4	18,196.4	18,644.2

ASML - Quarterly Summary US GAAP Consolidated Statements of Cash Flows^1,2



	Three months ended,
		Apr 2,		Jul 2,		Oct 1,		Dec 31,		Apr 1,
		2017 ³		2017 ³		2017 ³		2017 ³		2018
(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income		452.1		466.3		557.1		643.0		539.7

Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		110.1		103.9		101.2		102.3		102.6
Impairment		0.2		7.6		—		1.2		2.0
Loss on disposal of property, plant and equipment		0.3		0.8		0.1		1.6		0.4
Share-based payments		13.5		10.1		14.8		14.7		12.2
Allowance for doubtful receivables		1.2		1.3		3.1		2.2		2.4
Allowance for obsolete inventory		29.3		31.3		40.6		18.9		59.0
Deferred income taxes		16.3		(1.5	)	(6.5	)	(15.9	)	8.6
Equity method investments, net of income taxes		—		—		—		16.7		17.6
Changes in assets and liabilities		(791.4	)	(89.5	)	(310.4	)	252.0		(553.5	)
Net cash provided by (used in) operating activities		(168.4	)	530.3		400.0		1,036.7		191.0

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(38.6	)	(56.3	)	(95.7	)	(148.3	)	(129.2	)
Purchase of intangible assets		(5.2	)	(5.0	)	(2.1	)	(6.8	)	(6.1	)
Purchase of short-term investments		(75.0	)	(275.0	)	(100.0	)	(679.3	)	(79.3	)
Maturity of short-term investments		300.0		600.0		100.0		250.0		379.3
Cash from (used for) derivative financial instruments		(30.7	)	(16.5	)	32.0		42.2		23.6
Loans issued and other investments		—		—		—		(0.6	)	(0.2	)
Repayment on loans		—		—		—		1.6		—
Acquisition of equity method investments		—		(1,002.1	)	(5.8	)	(11.8	)	(5.9	)
Dividend income from equity method investments		—		—		—		19.7		—
Net cash provided by (used in) investing activities		150.5		(754.9	)	(71.6	)	(533.3	)	182.2

CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid		—		(516.7	)	—		—		—
Purchase of shares		—		—		(165.5	)	(334.5	)	(166.9	)
Net proceeds from issuance of shares		13.0		11.9		12.7		13.0		7.0
Repayment of debt		(1.2	)	(239.5	)	(1.2	)	(1.1	)	(0.3	)
Net cash provided by (used in) financing activities		11.8		(744.3	)	(154.0	)	(322.6	)	(160.2	)

Net cash flows		(6.1	)	(968.9	)	174.4		180.8		213.0

Effect of changes in exchange rates on cash		9.8		(27.5	)	(11.0	)	0.6		(7.2	)
Net increase (decrease) in cash and cash equivalents		3.7		(996.4	)	163.4		181.4		205.8

Notes to the Summary US GAAP Consolidated Financial Statements

Basis of preparation

The accompanying Summary Consolidated Financial Statements are stated in millions of euros unless indicated otherwise. The accompanying Summary Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). The comparative figures in the consolidated balance sheets, the related

consolidated statements of operations and consolidated statements of cash flows for the quarter and year ended, are presented

without taking into account the new accounting standards ASC 606 - Revenue from Contracts with Customers and ASC 842 -

Leases.

For further details on our Summary of Significant Accounting Policies refer to the Notes to the Consolidated Financial Statements as recorded in our 2017 Integrated Report based on US GAAP which is available on www.asml.com and we refer to the Notes to the Summary Consolidated Financial Statements. Further disclosures, as required under US GAAP in annual reports, are not included in the Summary Consolidated Financial Statements.

Property, plant and equipment

Subject to market conditions, we expect that our capital expenditures (purchases of property, plant and equipment excluding capital expenditures related to tooling and facilities which we agreed with Carl Zeiss SMT GmbH in the High-NA agreement) in 2018 will be approximately EUR 460 million. These expenditures will mainly consist of further expansion and upgrades of facilities. We expect to finance these capital expenditures through cash generated by operations and existing cash and cash equivalents.

Revenue From Contracts With Customers

Impact Assessment

As of January 1, 2018, ASML has adopted ASC 606 - Revenue From Contracts With Customers. We selected full retrospective adoption and therefore will restate 2016 and 2017. The most significant changes in our accounting policy (compared to ASC 605 - Revenue Recognition) are:


•	A change from allocating the consideration of a contract to the elements of the contract using the relative selling price determined through vendor-specific objective evidence or the best estimate of selling price, to allocating the consideration of a contract based on stand-alone selling prices determined using the adjusted market approach in accordance with ASC 606.


•	Certain upgrades and services change from point in time revenue recognition upon completion of the performance obligation to over time revenue recognition throughout the upgrade or service period.

For 2016, our impact assessment shows:


•	An increase of Total net sales of EUR 80 million and an increase of Net income of EUR 86 million


•	Net contract liabilities of EUR 1,770 million

For 2017, our impact assessment shows:


•	A decrease of Total net sales of EUR 90 million and a decrease of Net income of EUR 52 million


•	Net contract liabilities of EUR 2,062 million

We applied ASC 606 for the years ended December 31, 2016 and 2017 retrospectively using the practical expedients in paragraph ASC 606-10-65-1(f), under which we:


•	Do not restate contracts that begin and are completed in the same annual reporting period;


•	Used the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods;


•	Do not disclose the amount of consideration allocated to the remaining performance obligations or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application - i.e. January 1, 2018; and


•	Reflect the aggregate effect of all modifications that occurred before January 1, 2016 when identifying the performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations.

Accounting Policy

We measure revenue based on the consideration specified in the contracts with our customers, adjusted for any significant financing components, and excluding any tax amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a good or service to our customer. Taxes assessed by a governmental authority that are imposed on a specific revenue-producing transaction, that are collected by us from our customers, are excluded from revenue.

We bill our customers for, and recognize as net sales, any charges for shipping and handling costs. The related costs are recognized as cost of sales. For certain contracts and constructive obligations resulting from these arrangements, for which a loss is evident, we recognize the anticipated loss to the extent the costs of completing these contracts and constructive obligations exceed the amount of the contract price. When we satisfy these obligations, we utilize the related liability.

We generate revenue from the sale of integrated patterning solutions for the semiconductor industry, which mainly consist of systems, system related options and upgrades, holistic lithography solutions and customer services. The main portion of our net sales is derived from contractual arrangements with our customers that have multiple deliverables (performance obligations), which mainly include the sale of our systems, system related options, installation, training and extended and enhanced (optic) warranty.

The main portion of our system sales results from volume purchase agreements, in which we offer customers discounts in the normal course of sales negotiations. As part of these volume purchases agreements, we may also offer free goods or services and cash credits that can be used towards future purchases. Occasionally, systems, with the related extended and enhanced (optic) warranties, installation and training services, are ordered individually. Our system sales agreements do not include a general right of return.

For bundled packages, we account for individual goods and services, including the free or discounted goods or services, separately if they are distinct - i.e. if a product or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The consideration paid for our performance obligations is typically fixed, unless specifically noted in the nature of the performance obligations. At times the total consideration of the contract can be dependent on the final volume of systems ordered by the customer. Payment is typically due 15-45 days after shipment or completion of the service unless described otherwise. The total consideration of the contract is allocated between all distinct performance obligations in the contract based on their stand-alone selling prices. The stand-alone selling prices are determined based on other stand-alone sales that are directly observable, when possible. However, for the majority of our performance obligations these are not available. If no directly observable evidence is available, the stand-alone selling price is estimated using the adjusted market assessment approach. These estimates are considered significant judgments.

Variable consideration is estimated at contract inception for each performance obligation, and subsequently updated each quarter, using either the expected value method or most likely amount method, whichever is determined to best predict the consideration to be collected from the customer. Variable consideration is only included in the transaction price if it is considered probable that a significant revenue reversal will not occur.

In certain scenarios when entering into a volume purchase agreement, free goods or services are provided directly or through a cash voucher that can be used on future contracts. Consideration from the contract will be allocated to these performance obligations and revenue recognized when control transfers based on the nature of the goods or service provided.

Options to buy goods or services in addition to the purchase commitment are assessed to determine if they provide a material right to the customer that they would not have received if they had not entered into this contract. Each option to buy additional goods or services provided at a discount from the stand-alone selling price is considered a material right. The discount offered from the stand-alone selling price will be allocated from the consideration of the other goods and services in the contract if it is determined the customer will exercise the option to buy, adjusted for the likelihood. Revenue will be recognized in line with the nature of the related goods or services. If it is subsequently determined the customer will not exercise the option to buy, or the option expires, revenue will be recognized.

Occasionally we may enter into a bill-and-hold transaction where we invoice a customer for a system that is ready for delivery but not shipped to the customer until a later date, based on customer’s request. Transfer of control is determined to have occurred only when there is a substantive reason for the arrangement, the system is separately identified as belonging to the customer, the good has been accepted by the customer and is ready for delivery, and we do not have the ability to direct the use of the system.




Goods or services	Nature, timing of satisfying the performance obligations, and significant payment terms

New systems (established technologies)	New systems sales include i-line, KrF, ArF, ArFi and EUV related systems, along with the related factory options ordered with the base system, as well as metrology and inspection systems. Prior to shipment, the majority of our systems undergo a Factory Acceptance Test (FAT) in our cleanroom facilities, effectively replicating the operating conditions that will be present on the customer’s site, in order to verify whether the system meets its standard specifications and any additional technical and performance criteria agreed with the customer. A system is shipped only after all contractual specifications are met or discrepancies from agreed upon specifications are waived and customer signoff is received for delivery. Each system’s performance is re-tested through a Site Acceptance Test (SAT) after installation at the customer site. We have never failed to successfully complete installation of a system at a customer’s premises; therefore, acceptance at FAT is considered to be proven for established technologies with a history of successful customer acceptances at SAT (equal or better than FAT). Transfer of control of a system undergoing FAT, and recognition of revenue related to this system, will occur upon delivery of the system, depending on the Incoterms. Transfer of control of a system not undergoing a FAT, and recognition of revenue related to this system, will occur upon customer acceptance of the system at SAT.




Goods or services	Nature, timing of satisfying the performance obligations, and significant payment terms
Used systems	We have no significant repurchase commitments in our general sales terms and conditions, however from time to time we repurchase systems that we have manufactured and sold and, following refurbishment, will resell to other customers. This repurchase decision is mainly driven by market demand expressed by other customers and less frequently by explicit or implicit contractual arrangements relating to the initial sale. We consider reasonable offers from any vendor, including customers, to repurchase used systems that we can refurbish, resell, and install as part of our normal business operations. Transfer of control of the systems, and related revenue recognition, will occur either upon delivery of the system to the carrier or upon arrival of the system to the customer's loading dock, depending on the Incoterms and if a FAT was performed prior to shipment. If no FAT was performed, then transfer of control will be upon customer acceptance at SAT. If a FAT was performed, then transfer of control will be upon customer acceptance at FAT, refer to "New systems (established technologies)".

Field upgrades and options (system enhancements)	Field upgrades and options mainly relate to goods and services that are delivered for systems already installed in the customer factories. Certain upgrades require significant installation efforts, enhancing an asset the customer controls, therefore resulting in transfer of control over the period of installation, measured using the cost incurred method estimated using labor hours, as this best depicts the satisfaction of our obligation in transferring control. The options and other upgrades that do not require significant installation effort transfer control upon delivery, depending on the Incoterms. As long as we are not able to make a reliable estimate of the total efforts needed to complete the upgrade, we only recognize revenue to cover costs incurred. Margin will be realized at the earlier of us being able to make a reliable estimate or completion of the upgrade.

New product introduction	New product introductions are typically newly developed options to be used within our systems. Revenue for new product introductions is not recognized until there is an established history of successful installation and customer acceptance. Upon establishing a history of successful installation and customer acceptance, revenue will be recognized consistent with other systems and goods after transfer of control.

Installation	Installation is provided within the selling price of a system. Installation is considered to be distinct as it does not significantly modify the system being purchased and the customer or a third party could be capable of performing the installation themselves if desired. Transfer of control takes place over the period of installation from delivery through SAT, measured on a straight-line basis, as our performance is satisfied evenly over this period of time. As long as we are not able to make a reliable estimate of the total efforts needed to complete the installation, we only recognize revenue to cover costs incurred. Margin will be realized at the earlier of us being able to make a reliable estimate or installation completion.

Warranties	We provide standard warranty coverage on our systems for 12 months, providing labor and non-consumable parts necessary to repair our systems during these warranty periods. These standard warranties cannot be purchased and do not provide a service in addition to the general assurance the system will perform as promised. As a result, no revenue is allocated to these standard warranties. Both the extended and enhanced (optic) warranties on our systems are accounted for as a separate performance obligation, with transfer of control taking place over the warranty period, measured on a straight-line basis, as this is a stand-ready obligation.

Time-based licenses and related service	Time-based licenses relate to software licenses and the related service which are sold for a period of time. The licenses and the related service are not considered to be individually distinct and the transfer of control takes place over the license term, measured on a straight-line basis, as our performance is satisfied evenly over this period of time. Payments are made in installments throughout the license term.

Eclipse projects	Eclipse projects are node transition and consulting projects which at times may be provided as free service within a volume purchase agreement. Measuring satisfaction of this performance obligation is performed through an input method based on the labor hours expended relative to the estimated total labor hours as this best depicts the transfer of control of these kind of services. As long as we are not able to make a reliable estimate of the total efforts needed to complete these kind of projects, we only recognize revenue to cover costs incurred. Margin will be realized at the earlier of us being able to make a reliable estimate or project completion.




Goods or services	Nature, timing of satisfying the performance obligations, and significant payment terms
Service contracts	Service contracts are entered into with our customers to support our systems used in their ongoing operations during the systems lifecycle, typically in the form of full-service agreements, limited manpower agreements, other labor agreements, parts availability or parts usage agreements. These services are typically for a specified period of time. Control transfers over this period of time, measured on a straight-line basis, as these are stand-ready obligations, with an exception for the labor hour pool service contracts for which we recognize revenue in line with invoicing, using the practical expedient in ASC 606-10-55-18. Invoicing is typically performed monthly or quarterly throughout the service period, typically payable within 15-45 days.

Billable parts and labor	Billable labor represents maintenance services to our systems installed in the customer’s factories while in operation, through purchase orders from our customer. Control over these services is transferred to the customer upon receipt of customer sign-off. Billable parts represent spare parts including optical components relating to our systems installed in the customer’s factories while in operation, through purchase orders from our customer. Billable parts can be: • Sold as direct spare parts, for which control transfers upon the relevant Incoterms; or • Sold as part of maintenance services, for which control transfer upon receipt of customer sign-off.

Field projects (relocations)	Field projects represent mainly relocation services. Measuring satisfaction of this performance obligation is performed through an input method based on the labor hours expended relative to the estimated total labor hours as this best depicts the transfer of control of our service.

OnPulse Maintenance	OnPulse maintenance services are provided over a specified period of time on our light source systems. Payment is determined by the amount of pulses counted from each light source system, which is variable. Invoicing is monthly based on the pulses counted. Revenue is recognized in line with invoicing using the practical expedient in ASC 606-10-55-18.

Leases

Impact Assessment

As of January 1, 2018, ASML has early adopted ASC 842 - Leases. We applied a modified retrospective adoption and therefore restated 2016 and 2017. The most significant change in our accounting policy (compared to ASC 840 - Leases) is the recognition of Right-of-Use (ROU) assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged.

As of December 31, 2016 and 2017, our impact resulting from operating leases is as follows:


•	We have recognized ROU assets and lease liabilities of EUR 131 million and EUR 114 million, respectively.


•	The short term portion of the lease liabilities of EUR 28 million and EUR 33 million, respectively, has been classified as accrued and other liabilities - current.


•	The long term portion of the lease liabilities EUR 103 million and EUR 81 million, respectively, has been included in the accrued and other liabilities - non-current.

We elected the following practical expedients as a package and applied these consistently to all of our leases including those for which we are a lessee or a lessor:


•	We did not reassess whether any expired or existing contracts are or contain leases.


•	We did not reassess the lease classification for any expired or existing leases (that is, all existing leases that were classified as operating leases in accordance with ASC 840 will be classified as operating leases, and all existing leases that were classified as capital leases in accordance with ASC 840 will be classified as finance leases).


•	We did not reassess initial direct costs for any existing leases.

Leases from a Lessee Perspective- Accounting Policy

We determine if an arrangement is a lease at inception. Determining whether a contract contains a lease requires judgement. In general, arrangements are considered to be a lease when all of the following apply:


•	It conveys the right to control the use of an identified asset for a period of time in exchange for consideration;


•	We have substantially all economic benefits from the use of the asset; and


•	We can indirectly direct the use of the identified asset.

Each lease arrangement we enter into is classified as either a finance lease or an operating lease, which is determined at lease commencement or at the modification of the lease arrangement and based upon the terms of each lease.

Lease assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The lease ROU asset includes any lease payment made and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease which are included in the measurement of the ROU assets and lease liabilities when it is reasonably certain that we will exercise that option.

For operating leases the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For finance leases each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Consolidated statement of operations over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The finance lease asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For certain equipment and for leased warehouses we account for the lease and non-lease components separately. For warehouse leases the allocation of the consideration between lease and non-lease components is based on the relative stand-alone prices of lease components included in the lease contracts. Additionally, for car leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities.

Operating leases are included in ROU assets and in Accrued and other liabilities. Finance leases are included in Property, plant and equipment and Long-term debt.

Leases from a Lessor Perspective - Accounting Policy

We classify a lease as a sales-type when the lease meets any of the following criteria at lease commencement:


•	The lease transfers ownership of the underlying asset to the lessee by the end of the lease term;


•	The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise;


•	The lease term is for the major part of the remaining economic life of the underlying asset. However, if the commencement date falls at or near the end of the economic life of the underlying asset, this criterion shall not be used for purposes of classifying the lease;


•	The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset; or


•	The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

Revenue is recognized at commencement of the lease term of a sales-type lease. The present value of the lease payments is recognized as a finance receivable. The difference between the gross receivable and the present value of the receivable is unearned interest, which is recognized over time in the Consolidated statements of operations.

A lease is classified as an operating lease if the lease classification criteria (as described above) are not met. If we have offered our customers an operating lease arrangement, the contract consideration is recognized in the Consolidated statements of operations on a straight-line basis over the period of the lease.

Finance receivables

Finance receivables consist of receivables in relation to sales-type leases.

Other non-current assets

Other non-current assets consist of non-current accounts receivable.

We perform ongoing credit evaluations on our customers’ financial condition. We periodically review whether an allowance for credit losses is needed by considering factors such as historical payment experience, credit quality, the aging of the finance receivables balances, and current economic conditions that may affect a customer’s ability to pay.

Income Taxes Intra-Entity Transfers of Assets Other Than Inventory

As of January 1, 2018, ASML adopted ASC 740 Income taxes; Intra-entity transfers of assets other than inventory. We applied a modified retrospective adoption with a cumulative effect adjustment to Retained earnings as of January 1, 2018. The most significant change in our accounting policy is that prepaid taxes as calculated using the purchaser’s rather than the seller’s tax jurisdiction (except for prepaid taxes arising from intra-entity transfers of inventory).

As January 1, 2018, Retained earnings decreased with EUR 93 million and Other assets decreased with EUR 147 million whereas Deferred tax assets increased with EUR 54 million. This impact mainly relates to a so-called bi-lateral advanced pricing agreement between the US and the Dutch tax authorities on a inter group transfer of intellectual property rights.

ASML – Reconciliation US GAAP – IFRS-EU ^1,2



Net income	Three months ended,
	Apr 2,		Apr 1,
	2017 ³		2018
(in millions EUR)
Net income based on US GAAP	452.1		539.7
Development expenditures (see Note 1)	5.8		21.1
Income taxes (see Note 2)	3.1		19.9
Other	(0.1	)	(0.2	)
Net income based on IFRS-EU	460.9		580.5

Notes to the reconciliation from US GAAP to IFRS-EU

Note 1 Development expenditures

Under US GAAP, we apply ASC 730, ‘Research and Development’. In accordance with ASC 730, we charge costs relating to research and development to operating expense as incurred.

Under IFRS-EU, we apply IAS 38, ‘Intangible Assets’. In accordance with IAS 38, we capitalize certain development expenditures that are amortized over the expected useful life of the related product generally ranging between one and five years. Amortization starts when the developed product is ready for volume production.

Note 2 Income taxes

Under US GAAP, the elimination of unrealized net income from intercompany transactions relating to inventory that are eliminated in consolidation give rise to a temporary difference for which prepaid taxes must be recognized in consolidation. Contrary to IFRS-EU, the prepaid taxes under US GAAP are calculated based on the tax rate applicable in the seller’s rather than the purchaser’s tax jurisdiction.

Under IFRS-EU, we apply IAS 12, "Income Taxes". In accordance with IAS 12 unrealized net income resulting from intercompany transactions related to inventory that are eliminated in consolidation give rise to a temporary difference for which deferred taxes must be recognized in consolidation. The deferred taxes are calculated based on the tax rate applicable in the purchaser’s tax jurisdiction.


1	These financial statements are unaudited.


2	Numbers have been rounded.


3	As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842). The comparative figures for the quarter and year ended have not been adjusted to reflect these changes in accounting policy.


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


5	Lithography systems do not include metrology and inspection systems.


6	Our systems net bookings include all system sales orders for which written authorizations have been accepted (for EUV starting with the NXE:3350B and excluding the High-NA systems).

Exhibit 99.4

ASML - Summary IFRS-EU Consolidated Statement of Profit or Loss ^1,2



	Three months ended,
	Apr 2,		Apr 1,
	2017³		2018
(in millions EUR)

Net system sales	1,215.8		1,667.7
Net service and field option sales	727.8		617.3
Total net sales	1,943.6		2,285.0

Total cost of sales	(1,089.7	)	(1,233.0	)
Gross profit	853.9		1,052.0

Other income	23.9		—
Research and development costs	(237.4	)	(269.3	)
Selling, general and administrative costs	(98.6	)	(114.2	)
Operating income	541.8		668.5

Interest and other, net	(10.3	)	(10.5	)
Income before income taxes	531.5		658.0

Income tax expense	(70.6	)	(59.9	)
Income after income taxes	460.9		598.1

Profit (loss) related to investments in associates	—		(17.6	)
Net income	460.9		580.5

ASML - Summary IFRS-EU Consolidated Statement of Financial Position ^1,2



	Dec 31,	Apr 1,
	2017³	2018
(in millions EUR)

ASSETS
Right-of-use assets	—	124.0
Property, plant and equipment	1,546.1	1,559.5
Goodwill	4,562.7	4,562.7
Other intangible assets	2,736.1	2,742.3
Investments in associates	982.2	970.5
Deferred tax assets	196.3	256.5
Finance receivables	264.9	193.2
Derivative financial instruments	65.2	66.8
Other assets	458.5	739.1
Total non-current assets	10,812.0	11,214.6

Inventories	2,958.4	3,231.5
Contract assets	—	11.5
Current tax assets	61.6	312.5
Derivative financial instruments	50.5	55.6
Finance receivables	59.1	228.7
Accounts receivable	1,772.3	1,603.4
Other assets	717.1	458.8
Short-term investments	1,029.3	729.3
Cash and cash equivalents	2,259.0	2,464.8
Total current assets	8,907.3	9,096.1

Total assets	19,719.3	20,310.7

EQUITY AND LIABILITIES
Equity	11,956.1	12,479.7

Long-term debt	3,000.1	2,978.6
Derivative financial instruments	62.7	63.5
Deferred and other tax liabilities	570.9	603.2
Provisions	21.2	22.3
Contract liabilities	—	819.4
Accrued and other liabilities	766.4	211.8
Total non-current liabilities	4,421.3	4,698.8

Provisions	—	—
Contract liabilities	—	1,554.2
Derivative financial instruments	4.6	13.1
Current portion of long-term debt	25.2	24.9
Current and other tax liabilities	152.0	53.8
Accrued and other liabilities	2,322.8	506.7
Accounts payable	837.3	979.5
Total current liabilities	3,341.9	3,132.2

Total equity and liabilities	19,719.3	20,310.7

ASML - Summary IFRS-EU Consolidated Statement of Cash Flows ^1,2



	Three months ended,
	Apr 2,		Apr 1,
	2017³		2018
(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income	460.9		580.5

Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	180.8		163.9
Impairment	0.2		2.0
Loss on disposal of property, plant and equipment	0.3		0.4
Share-based payments	15.3		12.0
Allowance for doubtful receivables	1.2		2.4
Allowance for obsolete inventory	29.3		59.0
Deferred income taxes	15.3		(37.1	)
Investments in associates, net of income taxes	—		17.6
Changes in assets and liabilities	(790.2	)	(521.9	)
Net cash provided by (used in) operating activities	(86.9	)	278.8

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(38.6	)	(129.2	)
Purchase of intangible assets	(86.7	)	(93.9	)
Purchase of short-term investments	(75.0	)	(79.3	)
Maturity of short-term investments	300.0		379.3
Cash from (used for) derivative financial instruments	(30.7	)	23.6
Loans issued and other investments	—		(0.2	)
Repayment of loans	—		—
Acquisition of associates	—		(5.9	)
Dividend income from associates	—		—
Net cash provided by (used in) investing activities	69.0		94.4

CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid	—		—
Purchase of shares	—		(166.9	)
Net proceeds from issuance of shares	13.0		7.0
Repayment of debt	(1.2	)	(0.3	)
Net cash provided by (used in) financing activities	11.8		(160.2	)

Net cash flows	(6.1	)	213.0

Effect of changes in exchange rates on cash	9.8		(7.2	)
Net increase (decrease) in cash and cash equivalents	3.7		205.8

ASML - Quarterly Summary IFRS-EU Consolidated Statement of Profit or Loss ^1,2



	Three months ended,
		Apr 2,		Jul 2,		Oct 1,		Dec 31,		Apr 1,
		2017³		2017³		2017³		2017³		2018
(in millions EUR)

Net system sales³		1,215.8		1,384.1		1,818.9		1,954.9		1,667.7
Net service and field option sales³		727.8		717.3		628.5		605.5		617.3
Total net sales		1,943.6		2,101.4		2,447.4		2,560.4		2,285.0

Total cost of sales		(1,089.7	)	(1,228.5	)	(1,470.7	)	(1,476.6	)	(1,233.0	)
Gross profit		853.9		872.9		976.7		1,083.8		1,052.0

Other income		23.9		24.0		23.9		24.0		—
Research and development costs		(237.4	)	(202.7	)	(229.6	)	(229.2	)	(269.3	)
Selling, general and administrative costs		(98.6	)	(102.0	)	(103.4	)	(112.6	)	(114.2	)
Operating income		541.8		592.2		667.6		766.0		668.5

Interest and other, net		(10.3	)	(12.2	)	(11.5	)	(12.0	)	(10.5	)
Income before income taxes		531.5		580.0		656.1		754.0		658.0

Income tax expense		(70.6	)	(104.4	)	(81.3	)	(23.4	)	(59.9	)
Income after income taxes		460.9		475.6		574.8		730.6		598.1

Profit (loss) related to investments in associates		—		—		—		(16.7	)	(17.6	)
Net income		460.9		475.6		574.8		713.9		580.5

ASML - Quarterly Summary IFRS-EU Consolidated Statement of Financial Position^1,2



	Apr 2,	Jul 2,	Oct 1,	Dec 31,	Apr 1,
	2017³	2017³	2017³	2017³	2018
(in millions EUR)

ASSETS
Right-of-use Assets	—	—	—	—	124.0
Property, plant and equipment	1,622.4	1,567.3	1,523.4	1,546.1	1,559.5
Goodwill	4,807.7	4,668.3	4,586.4	4,562.7	4,562.7
Other intangible assets	2,832.7	2,792.2	2,749.4	2,736.1	2,742.3
Investments in associates	—	1,002.1	1,007.9	982.2	970.5
Deferred tax assets	200.8	186.3	178.3	196.3	256.5
Finance receivables	213.6	120.2	263.9	264.9	193.2
Derivative financial instruments	85.5	84.7	63.5	65.2	66.8
Other assets	391.5	409.2	425.3	458.5	739.1
Total non-current assets	10,154.2	10,830.3	10,798.1	10,812.0	11,214.6

Inventories	2,995.7	3,136.9	2,998.5	2,958.4	3,231.5
Contract assets	—	—	—	—	11.5
Current tax assets	137.0	32.6	73.6	61.6	312.5
Derivative financial instruments	39.4	84.8	65.6	50.5	55.6
Finance receivables	346.9	413.6	138.2	59.1	228.7
Accounts receivable	864.8	1,224.6	1,664.2	1,772.3	1,603.4
Other assets	474.5	547.7	591.9	717.1	458.8
Short-term investments	925.0	600.0	600.0	1,029.3	729.3
Cash and cash equivalents	2,910.6	1,914.2	2,077.6	2,259.0	2,464.8
Total current assets	8,693.9	7,954.4	8,209.6	8,907.3	9,096.1

Total assets	18,848.1	18,784.7	19,007.7	19,719.3	20,310.7

EQUITY AND LIABILITIES
Equity	11,449.9	11,228.1	11,553.3	11,956.1	12,479.7

Long-term debt	3,040.3	2,995.5	2,996.7	3,000.1	2,978.6
Derivative financial instruments	50.8	71.2	77.9	62.7	63.5
Deferred and other tax liabilities	726.5	655.0	624.8	570.9	603.2
Provisions	20.5	20.5	21.2	21.2	22.3
Contract liabilities	—	—	—	—	819.4
Accrued and other liabilities	684.7	689.4	759.6	766.4	211.8
Total non-current liabilities	4,522.8	4,431.6	4,480.2	4,421.3	4,698.8

Provisions	0.8	—	—	—	—
Contract liabilities	—	—	—	—	1,554.2
Derivative financial instruments	30.0	0.1	6.1	4.6	13.1
Current portion of long-term debt	244.7	25.9	25.6	25.2	24.9
Current and other tax liabilities	137.6	31.9	82.0	152.0	53.8
Accrued and other liabilities	1,697.0	2,084.8	2,024.8	2,322.8	506.7
Accounts payable	765.3	982.3	835.7	837.3	979.5
Total current liabilities	2,875.4	3,125.0	2,974.2	3,341.9	3,132.2

Total equity and liabilities	18,848.1	18,784.7	19,007.7	19,719.3	20,310.7

ASML - Quarterly Summary IFRS-EU Consolidated Statement of Cash Flows ^1,2



	Three months ended,
		Apr 2,		Jul 2,		Oct 1,		Dec 31,		Apr 1,
		2017³		2017³		2017³		2017³		2018
(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income		460.9		475.6		574.8		713.9		580.5

Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		180.8		177.5		174.0		174.7		163.9
Impairment		0.2		7.6		—		1.2		2.0
Loss on disposal of property, plant and equipment		0.3		0.8		0.1		1.6		0.4
Share-based payments		15.3		10.5		19.4		20.9		12.0
Allowance for doubtful receivables		1.2		1.3		3.1		2.2		2.4
Allowance for obsolete inventory		29.3		31.3		40.6		18.9		59.0
Deferred income taxes		15.3		14.0		(11.8	)	(88.5	)	(37.1	)
Investments in associates, net of income taxes		—		—		—		16.7		17.6
Changes in assets and liabilities		(790.2	)	(79.7	)	(314.4	)	264.3		(521.9	)
Net cash provided by (used in) operating activities		(86.9	)	638.9		485.8		1,125.9		278.8

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(38.6	)	(56.3	)	(95.7	)	(148.3	)	(129.2	)
Purchase of intangible assets		(86.7	)	(113.6	)	(87.9	)	(96.0	)	(93.9	)
Purchase of short-term investments		(75.0	)	(275.0	)	(100.0	)	(679.3	)	(79.3	)
Maturity of short-term investments		300.0		600.0		100.0		250.0		379.3
Cash from (used for) derivative financial instruments		(30.7	)	(16.5	)	32.0		42.2		23.6
Loans issued and other investments		—		—		—		(0.6	)	(0.2	)
Repayment of loans		—		—		—		1.6		—
Acquisition of associates		—		(1,002.1	)	(5.8	)	(11.8	)	(5.9	)
Dividend income from associates		—		—		—		19.7		—
Net cash provided by (used in) investing activities		69.0		(863.5	)	(157.4	)	(622.5	)	94.4

CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid		—		(516.7	)	—		—		—
Purchase of shares		—		—		(165.5	)	(334.5	)	(166.9	)
Net proceeds from issuance of shares		13.0		11.9		12.7		13.0		7.0
Repayment of debt		(1.2	)	(239.5	)	(1.2	)	(1.1	)	(0.3	)
Net cash provided by (used in) financing activities		11.8		(744.3	)	(154.0	)	(322.6	)	(160.2	)

Net cash flows		(6.1	)	(968.9	)	174.4		180.8		213.0

Effect of changes in exchange rates on cash		9.8		(27.5	)	(11.0	)	0.6		(7.2	)
Net increase (decrease) in cash and cash equivalents		3.7		(996.4	)	163.4		181.4		205.8

Notes to the Summary IFRS-EU Consolidated Financial Statements

Basis of preparation

The accompanying Summary Consolidated Financial Statements are stated in millions of euros unless indicated otherwise. The accompanying Summary Consolidated Financial Statements have been prepared in conformity with International Financial Reporting Standards as adopted by the EU (“IFRS-EU”) accounting principles generally accepted in the Netherlands for companies quoted on Euronext Amsterdam. The comparative figures in the consolidated statement of financial position, the related consolidated statements of profit or loss and consolidated statement of cash flows for the quarter and year ended, are presented without taking into account the new accounting standards IFRS 15 - Revenue from Contracts with Customers and IFRS 16 - Leases. For further details on our Summary of Significant Accounting Policies refer to the Notes to the Consolidated Financial Statements as recorded in our 2017 Integrated Report based upon IFRS-EU which is available on www.asml.com and we refer to the Notes to the Summary Consolidated Financial Statements. Further disclosures, as required under IFRS-EU in annual reports and interim reporting (IAS 34), are not included in the Summary Consolidated Financial Statements.

For internal and external reporting purposes, we apply accounting principles generally accepted in the United States of America ("US GAAP"). US GAAP is our primary accounting standard for the setting of financial and operational performance targets.

Revenue From Contracts With Customers

Impact Assessment

As of January 1, 2018, ASML has adopted IFRS 15 - Revenue From Contracts With Customers. We selected full retrospective adoption and therefore will restate 2016 and 2017. The most significant changes in our accounting policy (compared to IAS 18 - Revenue Recognition) are:


•	A change from allocating the consideration of a contract to the elements of the contract using the relative selling price determined through vendor-specific objective evidence or the best estimate of selling price, to allocating the consideration of a contract based on stand-alone selling prices determined using the adjusted market approach in accordance with IFRS 15.


•	Certain upgrades and services change from point in time revenue recognition upon completion of the performance obligation to over time revenue recognition throughout the upgrade or service period.

For 2016, our impact assessment shows:


•	An increase of Total net sales of EUR 80 million and an increase of Net income of EUR 86 million


•	Net contract liabilities of EUR 1,770 million

For 2017, our impact assessment shows:


•	A decrease of Total net sales of EUR 90 million and a decrease of Net income of EUR 52 million


•	Net contract liabilities of EUR 2,062 million

We applied IFRS 15 for the years ended December 31, 2017 and 2016 retrospectively using the practical expedients in paragraph IFRS 15.C5, under which we:


•	Do not restate contracts that begin and are completed in the same annual reporting period;


•	Used the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods;


•	Do not disclose the amount of consideration allocated to the remaining performance obligations or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application - i.e. January 1, 2018; and


•	Reflect the aggregate effect of all modifications that occurred before January 1, 2016 when identifying the performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations.

Accounting Policy




Goods or services	Nature, timing of satisfying the performance obligations, and significant payment terms

New systems (established technologies)	New systems sales include i-line, KrF, ArF, ArFi and EUV related systems, along with the related factory options ordered with the base system, as well as metrology and inspection systems. Prior to shipment, the majority of our systems undergo a Factory Acceptance Test (FAT) in our cleanroom facilities, effectively replicating the operating conditions that will be present on the customer’s site, in order to verify whether the system meets its standard specifications and any additional technical and performance criteria agreed with the customer. A system is shipped only after all contractual specifications are met or discrepancies from agreed upon specifications are waived and customer signoff is received for delivery. Each system’s performance is re-tested through a Site Acceptance Test (SAT) after installation at the customer site. We have never failed to successfully complete installation of a system at a customer’s premises; therefore, acceptance at FAT is considered to be proven for established technologies with a history of successful customer acceptances at SAT (equal or better than FAT). Transfer of control of a system undergoing FAT, and recognition of revenue related to this system, will occur upon delivery of the system, depending on the Incoterms. Transfer of control of a system not undergoing a FAT, and recognition of revenue related to this system, will occur upon customer acceptance of the system.




Goods or services	Nature, timing of satisfying the performance obligations, and significant payment terms
Used systems	We have no significant repurchase commitments in our general sales terms and conditions, however from time to time we repurchase systems that we have manufactured and sold and, following refurbishment, will resell to other customers. This repurchase decision is mainly driven by market demand expressed by other customers and less frequently by explicit or implicit contractual arrangements relating to the initial sale. We consider reasonable offers from any vendor, including customers, to repurchase used systems that we can refurbish, resell, and install as part of our normal business operations. Transfer of control of the systems, and related revenue recognition, will occur either upon delivery of the system to the carrier or upon arrival of the system to the customer's loading dock, depending on the Incoterms and if a FAT was performed prior to shipment. If no FAT was performed, then transfer of control will be upon customer acceptance at SAT. If a FAT was performed, then transfer of control will be upon customer acceptance at FAT, refer to "New systems (established technologies)".

Field upgrades and options (system enhancements)	Field upgrades and options mainly relate to goods and services that are delivered for systems already installed in the customer factories. Certain upgrades require significant installation efforts, enhancing an asset the customer controls, therefore resulting in transfer of control over the period of installation, measured using the cost incurred method estimated using labor hours, as this best depicts the satisfaction of our obligation in transferring control. The options and other upgrades that do not require significant installation effort transfer control upon delivery, depending on the Incoterms. As long as we are not able to make a reliable estimate of the total efforts needed to complete the upgrade, we only recognize revenue to cover costs incurred. Margin will be realized at the earlier of us being able to make a reliable estimate or completion of the upgrade.

New product introduction	New product introductions are typically newly developed options to be used within our systems. Revenue for new product introductions is not recognized until there is an established history of successful installation and customer acceptance. Upon establishing a history of successful installation and customer acceptance, revenue will be recognized consistent with other systems and goods after transfer of control.

Installation	Installation is provided within the selling price of a system. Installation is considered to be distinct as it does not significantly modify the system being purchased and the customer or a third party could be capable of performing the installation themselves if desired. Transfer of control takes place over the period of installation from delivery through SAT, measured on a straight-line basis, as our performance is satisfied evenly over this period of time. As long as we are not able to make a reliable estimate of the total efforts needed to complete the installation, we only recognize revenue to cover costs incurred. Margin will be realized at the earlier of us being able to make a reliable estimate or installation completion.

Warranties	We provide standard warranty coverage on our systems for 12 months, providing labor and non-consumable parts necessary to repair our systems during these warranty periods. These standard warranties cannot be purchased and do not provide a service in addition to the general assurance the system will perform as promised. As a result, no revenue is allocated to these standard warranties. Both the extended and enhanced (optic) warranties on our systems are accounted for as a separate performance obligation, with transfer of control taking place over the warranty period, measured on a straight-line basis, as this is a stand-ready obligation.

Time-based licenses and related service	Time-based licenses relate to software licenses and the related service which are sold for a period of time. The licenses and the related service are not considered to be individually distinct and the transfer of control takes place over the license term, measured on a straight-line basis, as our performance is satisfied evenly over this period of time. Payments are made in installments throughout the license term.

Eclipse projects	Eclipse projects are node transition and consulting projects which at times may be provided as free service within a volume purchase agreement. Measuring satisfaction of this performance obligation is performed through an input method based on the labor hours expended relative to the estimated total labor hours as this best depicts the transfer of control of these kind of services. As long as we are not able to make a reliable estimate of the total efforts needed to complete these kind of projects, we only recognize revenue to cover costs incurred. Margin will be realized at the earlier of us being able to make a reliable estimate or project completion.




Goods or services	Nature, timing of satisfying the performance obligations, and significant payment terms
Service contracts	Service contracts are entered into with our customers to support our systems used in their ongoing operations during the systems lifecycle, typically in the form of full-service agreements, limited manpower agreements, other labor agreements, parts availability or parts usage agreements. These services are typically for a specified period of time. Control transfers over this period of time, measured on a straight-line basis, as these are stand-ready obligations, with an exception for the labor hour pool service contracts for which we recognize revenue in line with invoicing, using the practical expedient in ASC 606-10-55-18. Invoicing is typically performed monthly or quarterly throughout the service period, typically payable within 15-45 days.

Billable parts and labor	Billable labor represents maintenance services to our systems installed in the customer’s factories while in operation, through purchase orders from our customer. Control over these services is transferred to the customer upon receipt of customer sign-off. Billable parts represent spare parts including optical components relating to our systems installed in the customer’s factories while in operation, through purchase orders from our customer. Billable parts can be: • Sold as direct spare parts, for which control transfers upon the relevant Incoterms; or • Sold as part of maintenance services, for which control transfer upon receipt of customer sign-off.

Field projects (relocations)	Field projects represent mainly relocation services. Measuring satisfaction of this performance obligation is performed through an input method based on the labor hours expended relative to the estimated total labor hours as this best depicts the transfer of control of our service.

OnPulse Maintenance	OnPulse maintenance services are provided over a specified period of time on our light source systems. Payment is determined by the amount of pulses counted from each light source system, which is variable. Invoicing is monthly based on the pulses counted. Revenue is recognized in line with invoicing using the practical expedient in ASC 606-10-55-18.

Leases

Impact Assessment

As of January 1, 2018, ASML has early adopted IFRS 16 - Leases. We applied a cumulative catch-up approach and therefore did not restate prior years presented upon adoption in 2018. The most significant change in our accounting policy (compared to IAS 17 - Leases) is the recognition of Right-of-Use (ROU) assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged.

As of January 1, 2018:


•	We have recognized ROU assets and lease liabilities of EUR 114 million.


•	The short term portion of the lease liabilities of EUR 33 million has been classified as Accrued and other liabilities - current.


•	The long term portion of the lease liabilities of EUR 81 million has been included in the Accrued and other liabilities - non-current.

We elected the following practical expedients and applied these consistently to all of our leases (including those for which we are a lessee or a lessor):


•	We did not reassess whether any expired or existing contracts are or contain leases.


•	We excluded initial direct costs for any existing leases.

Leases from a Lessee Perspective- Accounting Policy


•	It conveys the right to control the use of an identified asset for a period of time in exchange for consideration;


•	We have substantially all economic benefits from the use of the asset; and


•	We can indirectly direct the use of the identified asset.

Lease assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The ROU asset also includes any lease payment made and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease which are included in the measurement of the ROU assets and lease liabilities when it is reasonably certain that we will exercise that option.

For leases each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Consolidated statement of profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The ROU asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For certain equipment and for leased warehouses we account for the lease and non-lease components separately. For warehouse leases the allocation of the consideration between lease and non-lease components is based on the relative stand-alone prices of lease components included in the lease arrangements. Additionally, for car leases, we apply a portfolio approach to effectively account for the ROU assets and liabilities.

Leases are included in ROU assets and Accrued and other liabilities.

Leases from a Lessor Perspective - Accounting Policy

We classify a lease as a sales-type when the lease meets any of the following criteria at lease commencement:


•	The lease transfers ownership of the underlying asset to the lessee by the end of the lease term;


•	The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise;


•	The lease term is for the major part of the remaining economic life of the underlying asset. However, if the commencement date falls at or near the end of the economic life of the underlying asset, this criterion shall not be used for purposes of classifying the lease;


•	The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset; or


•	The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

A lease is classified as an operating lease if the lease classification criteria (as described above) are not met. If we have offered our customers an operating lease arrangement, the contract consideration is recognized in the Consolidated statement of profit or loss on a straight-line basis over the period of the lease.

Finance receivables

Finance receivables consist of receivables in relation to sales-type leases.

Other non-current assets

Other non-current assets consist of non-current accounts receivable.

We perform ongoing credit evaluations on our customers’ financial condition. We periodically review whether an allowance for credit losses is needed by considering factors such as historical payment experience, credit quality, the aging of the finance receivables balances, expected lifetime losses and current economic conditions that may affect a customer’s ability to pay.

ASML – Reconciliation US GAAP – IFRS-EU ^1,2



Net income	Three months ended,
	Apr 2,		Apr 1,
	2017³		2018
(in millions EUR)
Net income based on US GAAP	452.1		539.7
Development expenditures (see Note 1)	5.8		21.1
Income taxes (see Note 2)	3.1		19.9
Other	(0.1	)	(0.2	)
Net income based on IFRS-EU	460.9		580.5

Notes to the reconciliation from US GAAP to IFRS-EU

Note 1 Development expenditures

Under US GAAP, we apply ASC 730, ‘Research and Development’. In accordance with ASC 730, we charge costs relating to research and development to operating expense as incurred.

Note 2 Income taxes


1	These financial statements are unaudited.


2	Numbers have been rounded.


3	As of January 1, 2018, ASML has adopted the new Revenue Recognition Standard (IFRS 15) and Lease Standard (IFRS 16). The quarterly comparative numbers have not been adjusted to reflect these changes in accounting policy.

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Form 6-K ASML HOLDING NV For: Apr 18

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