Document and Entity Information
Document and Entity Information Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Entity Information [Line Items] | |
Entity Registrant Name | ASML HOLDING NV |
Entity File Number | 001-33463 |
Entity Incorporation, State or Country Code | P7 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Title of 12(b) Security | Ordinary Shares |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 419,810,706 |
Entity Address, Address Line One | De Run 6501 |
Entity Address, City or Town | Veldhoven |
Entity Address, Postal Zip Code | 5504 DR |
Entity Address, Country | NL |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Trading Symbol | ASML |
Business Contact [Member] | |
Entity Information [Line Items] | |
Contact Personnel Name | Skip Miller |
City Area Code | 480 |
Local Phone Number | 235 0934 |
Contact Personnel Email Address | skip.miller@asml.com |
Entity Address, Address Line One | 2650 W Geronimo Place |
Entity Address, City or Town | Chandler |
Entity Address, State or Province | AZ |
Entity Address, Postal Zip Code | 85224 |
Entity Address, Country | US |
Document and Entity Informati_2
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019 | |
Document And Entity Information [Abstract] | |
Document Period End Date | Dec. 31, 2019 |
Entity Central Index Key | 0000937966 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Shell Company | false |
Document Annual Report | true |
Document Registration Statement | false |
Entity Emerging Growth Company | false |
Document Transition Report | false |
Document Shell Company Report | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - EUR (€) € in Millions, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Related Party Costs | € 1,321.8 | € 1,173.7 | € 918.4 | ||
Net Sales | 11,820 | 10,944 | 8,962.7 | ||
Cost of sales | [1] | (6,540.2) | (5,914.8) | (4,942.5) | |
Gross profit | 5,279.8 | 5,029.2 | 4,020.2 | ||
Other income | 0 | 0 | 95.8 | ||
Research and development costs | (1,968.5) | (1,575.9) | (1,259.7) | ||
Selling, general and administrative costs | (520.5) | (488) | (416.6) | ||
Income from operations | 2,790.8 | 2,965.3 | 2,439.7 | ||
Interest and other, net | (25) | (28.3) | (50.3) | ||
Income before income taxes | 2,765.8 | 2,937 | [2] | 2,389.4 | |
Provision for income taxes | (191.7) | (351.6) | [2] | (306) | |
Income (Loss) from Continuing Operations After Tax before Equity Method Investments, Noncontrolling Interest | 2,574.1 | 2,585.4 | 2,083.4 | ||
Profit (loss) related to equity method investments | (18.2) | (6.2) | 16.7 | ||
Net income | € 2,592.3 | € 2,591.6 | € 2,066.7 | ||
Basic net income per ordinary share (in EUR per share) | € 6.16 | € 6.10 | € 4.81 | ||
Diluted net income per ordinary share (in EUR per share) | [3] | € 6.15 | € 6.08 | € 4.79 | |
Number of ordinary shares used in computing per share amounts | |||||
Basic | 420.8 | 424.9 | 429.8 | ||
Weighted Average Number of Shares Outstanding, Diluted | 421.6 | 426.4 | 431.6 | ||
System sales | |||||
Net Sales | € 8,996.2 | € 8,259.1 | € 6,424.4 | ||
Cost of sales | (4,676.2) | (4,141.2) | (3,439.9) | ||
Service and field option sales | |||||
Net Sales | 2,823.8 | 2,684.9 | 2,538.3 | ||
Cost of sales | € (1,864) | € (1,773.6) | € (1,502.6) | ||
[1] | 1. Cost of sales includes amounts with related parties of €1,321.8 million , €1,173.7 million and €918.4 million in 2019 , 2018 , and 2017 | ||||
[2] | 1. In 2017 and 2018 , Provision for income taxes deferred included the tax expense related to changes in the uncertain tax positions, which has been corrected into Provision for income taxes current. The impact is a reclassification for 2018 of €57.0 million from Provision from income taxes deferred to Provision from income taxes current, which is split €50.4 million from Netherlands and €6.6 million from Foreign. The impact is a reclassification for 2017 of €17.5 million from Provision from income taxes deferred to Provision from income taxes current, which includes €6.3 million from Netherlands and €11.2 million from Foreign . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . | ||||
[3] | 1. The calculation of diluted net income per ordinary share assumes the exercise of options issued under our stock option plans and the issuance of shares under our share plans for periods in which exercises or issuances would have a dilutive effect. The calculation of diluted net income per ordinary share does not assume exercise of options when exercise would be anti-dilutive. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | € 2,592.3 | € 2,591.6 | € 2,066.7 |
Other comprehensive income: | |||
Proportionate share of other comprehensive income from equity method investments | (19.8) | (4.8) | (1) |
Foreign currency translation, net of taxes: | |||
Gain (loss) on foreign currency translation and effective portion of hedges on net investments | 20.1 | 18.2 | (329) |
Financial instruments, net of taxes: | |||
Gain (loss) on derivative financial instruments | 3.2 | 8.3 | (16.6) |
Transfers to net income | (10.7) | 11.8 | (3.1) |
Other comprehensive income, net of taxes | (7.2) | 33.5 | (349.7) |
Total comprehensive income, net of taxes | 2,585.1 | 2,625.1 | 1,717 |
Total comprehensive income, attributable to equity holders | € 2,585.1 | € 2,625.1 | € 1,717 |
Consolidated Balance Sheets
Consolidated Balance Sheets - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | € 3,121.1 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | € 3,532.3 | 3,121.1 | |
Short-term investments | 1,185.8 | 913.3 | |
Accounts receivable, net | 1,786.8 | 1,498.2 | |
Finance receivables, net | 564.5 | 611.1 | |
Current tax assets | 178.7 | 79.7 | |
Contract assets | 231 | 95.9 | |
Inventories, net | 3,809.2 | 3,439.5 | |
Other assets | [1] | 842.8 | 772.6 |
Total current assets | 12,131.1 | 10,531.4 | |
Finance receivables, net | 421.1 | 275.1 | |
Deferred tax assets | 236.3 | ||
Other assets | [2] | 830.4 | 806.1 |
Equity method investments | 833 | 915.8 | |
Goodwill | 4,541.1 | 4,541.1 | |
Other intangible assets, net | 1,104.4 | 1,104 | |
Property, plant and equipment, net | 1,999.3 | 1,589.5 | |
Right-of-use assets - Operating | 205.4 | 137.6 | |
Right-of-use assets - Finance | [3] | 118.5 | 0 |
Total non-current assets | 10,498.5 | 9,605.5 | |
Total assets | 22,629.6 | 20,136.9 | |
Liabilities and shareholders’ equity | |||
Accounts payable | [4] | 1,062.2 | 964 |
Accrued and other liabilities | 1,039.9 | 911.4 | |
Current tax liabilities | 65.6 | 187.9 | |
Current portion of long-term debt | 0 | ||
Contract liabilities | 2,526.4 | 1,728.6 | |
Total current liabilities | 4,694.1 | 3,791.9 | |
Long-term debt | 3,108.3 | 3,026.5 | |
Deferred and other tax liabilities | 234.4 | 251.2 | |
Contract liabilities | 1,759.6 | 1,224.6 | |
Accrued and other liabilities | 241 | 201.7 | |
Total non-current liabilities | 5,343.3 | 4,704 | |
Total liabilities | 10,037.4 | 8,495.9 | |
Issued and outstanding shares | 38.2 | 38.6 | |
Share premium | 3,772 | 3,741.3 | |
Treasury shares at cost | (1,019.6) | (1,621.8) | |
Retained earnings | 9,523.8 | 9,197.9 | |
Accumulated other comprehensive income | 285 | ||
Total shareholders’ equity | 12,592.2 | 11,641 | |
Total liabilities and shareholders’ equity | 22,629.6 | 20,136.9 | |
Deferred Tax Assets, Gross | 657.5 | 435.2 | |
Deferred Tax Assets, Net of Valuation Allowance | 583.9 | 356 | |
Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||
Due to Related Parties | 127.4 | 60.2 | |
Assets | |||
Other assets | [1] | 215.2 | 231.2 |
Other assets | [2] | 585.3 | 533.4 |
Right-of-use assets - Finance | € 107.6 | € 0 | |
[1] | 1. Other assets - current includes amounts with related parties of €215.2 million and €231.2 million at December 31, 2019 and 2018 , respectively. | ||
[2] | 2. Other assets - non-current includes amounts with related parties of €585.3 million and €533.4 million at December 31, 2019 and 2018 , respectively. | ||
[3] | 3. Right-of-use assets - Finance includes amounts with related parties of €107.6 million and €0.0 million at December 31, 2019 and 2018 , respectively. | ||
[4] | 4. Accounts Payable includes amounts with related parties of €127.4 million and €60.2 million at December 31, 2019 and 2018 , respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Other assets | [1] | € 842.8 | € 772.6 |
Common Stock, Value, Issued | 38.8 | € 38.6 | |
Common Stock Shares; issued and outstanding | 421,097,729 | ||
Other assets | [2] | 830.4 | € 806.1 |
Right-of-use assets - Finance | [3] | € 118.5 | € 0 |
Common Stock [Member] | |||
Ordinary Shares, nominal value (in EUR) | € 0.09 | € 0.09 | |
Ordinary Shares, authorized (number of shares) | 699,999,000 | 699,999,000 | |
Common Stock Shares; issued and outstanding | 419,810,706 | 427,393,592 | |
Common Stock, Shares, Issued | 421,097,729 | 427,393,592 | |
Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||
Other assets | [1] | € 215.2 | € 231.2 |
Other assets | [2] | 585.3 | 533.4 |
Right-of-use assets - Finance | 107.6 | 0 | |
Due to Related Parties | € 127.4 | € 60.2 | |
[1] | 1. Other assets - current includes amounts with related parties of €215.2 million and €231.2 million at December 31, 2019 and 2018 , respectively. | ||
[2] | 2. Other assets - non-current includes amounts with related parties of €585.3 million and €533.4 million at December 31, 2019 and 2018 , respectively. | ||
[3] | 3. Right-of-use assets - Finance includes amounts with related parties of €107.6 million and €0.0 million at December 31, 2019 and 2018 , respectively. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - EUR (€) € in Millions | Total | Issued and Outstanding Shares [Member] | Share Premium [Member] | Treasury Shares at Cost [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | |
Beginning Balance at Dec. 31, 2016 | € 9,972.4 | € 39.4 | € 3,693.5 | € (796.2) | € 6,434.5 | € 601.2 | [1] |
Beginning Balance, shares at Dec. 31, 2016 | 429,900,000 | ||||||
Components of comprehensive income: | |||||||
Net income | 2,066.7 | 2,066.7 | |||||
Proportionate share of OCI from equity method investments | (1) | (1) | [1] | ||||
Foreign currency translation and effective portion of hedges on net investments | (329) | (329) | [1] | ||||
Gain (loss) on financial instruments, net of taxes | (19.7) | (19.7) | [1] | ||||
Total comprehensive income, attributable to equity holders | 1,717 | 2,066.7 | (349.7) | [1] | |||
CCIP: | |||||||
Fair value differences | 28.6 | 28.6 | |||||
Purchase of treasury shares | € (500) | € 0 | (500) | ||||
Purchase of treasury shares, shares | (3,468,737) | (3,500,000) | |||||
Cancellation of treasury shares | € 0 | € 0.7 | (650) | 649.3 | |||
Share-based payments | 53.1 | 53.1 | |||||
Issuance of shares | 22 | € 0.1 | (42.7) | 88.3 | (23.7) | ||
Issuance of shares, shares | 1,000,000 | ||||||
Dividend paid | (516.7) | (516.7) | |||||
Ending Balance at Dec. 31, 2017 | € 10,776.4 | € 38.8 | 3,732.5 | (557.9) | 7,311.5 | 251.5 | [1] |
Ending Balance, shares at Dec. 31, 2017 | 427,393,592 | 427,400,000 | |||||
Components of comprehensive income: | |||||||
Net income | € 2,591.6 | 2,591.6 | |||||
Proportionate share of OCI from equity method investments | (4.8) | (4.8) | [1] | ||||
Foreign currency translation and effective portion of hedges on net investments | 18.2 | 18.2 | [1] | ||||
Gain (loss) on financial instruments, net of taxes | 20.1 | 20.1 | [1] | ||||
Total comprehensive income, attributable to equity holders | 2,625.1 | 2,591.6 | 33.5 | [1] | |||
CCIP: | |||||||
Purchase of treasury shares | € (1,146.2) | € (0.3) | (1,145.9) | ||||
Purchase of treasury shares, shares | (2,400,000) | (7,000,000) | |||||
Share-based payments | € 46.3 | 46.3 | |||||
Issuance of shares | 21.8 | € 0.1 | (37.5) | 82 | (22.8) | ||
Issuance of shares, shares | 700,000 | ||||||
Dividend paid | (597.1) | (597.1) | |||||
Ending Balance at Dec. 31, 2018 | € 11,641 | € 38.6 | 3,741.3 | (1,621.8) | 9,197.9 | 285 | [1] |
Ending Balance, shares at Dec. 31, 2018 | 421,097,729 | 421,100,000 | |||||
Beginning Balance at Dec. 31, 2017 | € 10,776.4 | € 38.8 | 3,732.5 | (557.9) | 7,311.5 | 251.5 | [1] |
Beginning Balance, shares at Dec. 31, 2017 | 427,393,592 | 427,400,000 | |||||
CCIP: | |||||||
Purchase of treasury shares | € (1,556.1) | ||||||
Ending Balance at Dec. 31, 2019 | 12,592.2 | € 38.2 | 3,772 | (1,019.6) | 9,523.8 | ||
Ending Balance, shares at Dec. 31, 2019 | 419,800,000 | ||||||
Accumulated other comprehensive income | 285 | ||||||
Beginning Balance at Dec. 31, 2018 | € 11,641 | € 38.6 | 3,741.3 | (1,621.8) | 9,197.9 | 285 | [1] |
Beginning Balance, shares at Dec. 31, 2018 | 421,097,729 | 421,100,000 | |||||
Components of comprehensive income: | |||||||
Net income | € 2,592.3 | ||||||
Proportionate share of OCI from equity method investments | (19.8) | (19.8) | [1] | ||||
Foreign currency translation and effective portion of hedges on net investments | 20.1 | 20.1 | [1] | ||||
Gain (loss) on financial instruments, net of taxes | (7.5) | (7.5) | [1] | ||||
Total comprehensive income, attributable to equity holders | 2,585.1 | 2,592.3 | (7.2) | [1] | |||
CCIP: | |||||||
Purchase of treasury shares | € (410) | € 0 | (410) | ||||
Purchase of treasury shares, shares | (1,948,808) | (1,900,000) | |||||
Cancellation of treasury shares | € 0 | € 0.5 | (902.3) | 901.8 | |||
Share-based payments | 74.6 | 74.6 | |||||
Issuance of shares | 27.2 | € 0.1 | (43.9) | 109.9 | (38.9) | ||
Issuance of shares, shares | 600,000 | ||||||
Dividend paid | (1,325.7) | (1,325.7) | |||||
Ending Balance at Dec. 31, 2019 | € 12,592.2 | € 38.2 | € 3,772 | € (1,019.6) | € 9,523.8 | ||
Ending Balance, shares at Dec. 31, 2019 | 419,800,000 | ||||||
Accumulated other comprehensive income | € 277.8 | ||||||
[1] | As of December 31, 2019 , accumulated OCI consists of €(25.6) million loss relating to our proportionate share of other comprehensive income from equity method investments ( 2018 : €(5.8) million loss ; 2017 : one million loss ), €302.4 million relating to foreign currency translation gain ( 2018 : €282.3 million gain ; 2017 : €264.1 million gain ) and €1.0 million relating to unrealized gains on financial instruments ( 2018 : €8.5 million gains ; 2017 : €(11.6) million losses ). |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Number of issued shares | 431,464,705 | ||
Common Stock, Shares, Outstanding | 421,097,729 | 427,393,592 | |
Number of treasury shares | 5,848,998 | 10,368,038 | 4,071,113 |
Accumulated Other Comprehensive Income (Loss), proportionate share of other comprehensive income for equity method investments | € (25.6) | € (5.8) | € (1,000,000) |
Accumulated OCI, net of taxes relating to foreign currency translation gain (loss) | 302.4 | 282.3 | 264.1 |
Accumulated OCI, net of taxes unrealized gains (losses) on financial instruments | € 1 | € 8.5 | € (11.6) |
Common Stock [Member] | |||
Number of issued shares | 425,659,704 | 431,465,767 | |
Common Stock, Shares, Outstanding | 419,810,706 | 427,393,592 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Land and buildings reclassification | € 54.7 | ||||
Cash received equity method investments | 99.9 | € 89.2 | € 19.7 | ||
Cash Flows from Operating Activities | |||||
Net income | 2,592.3 | 2,591.6 | 2,066.7 | ||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||
Depreciation and amortization | [1] | 448.5 | 422.7 | 417.5 | |
Impairment | 4.7 | 15.4 | 9 | ||
Loss on disposal of property, plant and equipment | 3.1 | 3.6 | 2.8 | ||
Share-based payments | 74.6 | 46.3 | 53.1 | ||
Inventory reserves | 221.5 | 218.2 | 120.1 | ||
Deferred income taxes | (236.8) | (238.5) | (8.4) | ||
Profit (loss) related to equity method investment, including dividends received from equity method investments and capitalization of support funding paid to equity method investments | [2] | 56.9 | 61.6 | 36.4 | |
Changes in assets and liabilities: | |||||
Accounts receivable | (255) | 212.4 | (1,128.6) | ||
Finance receivables | (95.3) | (664.9) | 237 | ||
Inventories | (404.7) | (515.7) | (284.1) | ||
Other assets | (199.1) | (404) | (169.4) | ||
Accrued and other liabilities | 82.1 | 237.7 | 90.9 | ||
Accounts payable | (12.1) | 97.9 | 266.6 | ||
Current tax assets and liabilities | (202.6) | 13.1 | (151.8) | ||
Contract assets and liabilities | 1,198.3 | 975.3 | 260.5 | ||
Net cash provided by operating activities | 3,276.4 | 3,072.7 | 1,818.3 | ||
Cash Flows from Investing Activities | |||||
Purchase of property, plant and equipment | [3] | (766.6) | (574) | [4] | (338.9) |
Purchase of intangible assets | (119.3) | (35.5) | (19.1) | ||
Purchase of short-term investments | (1,291.5) | (918.1) | (1,129.3) | ||
Maturity of short-term investments | 1,019 | 1,034.1 | 1,250 | ||
Cash from (used for) derivative financial instruments | 0 | (2.4) | 27 | ||
Loans issued and other investments | 0 | (1) | (0.6) | ||
Repayment on loans | 0.9 | 5.4 | 1.6 | ||
Acquisition of equity method investments | 0 | 0 | (1,019.7) | ||
Net cash used in investing activities | (1,157.5) | (491.5) | (1,229) | ||
Cash Flows from Financing Activities | |||||
Dividend paid | (1,325.7) | (597.1) | (516.7) | ||
Purchase of treasury shares | (410) | (1,146.2) | (500) | ||
Net proceeds from issuance of shares | 27.2 | 21.8 | 50.6 | ||
Repayment of debt | (3.8) | (2.8) | (243) | ||
Net cash used in financing activities | (1,712.3) | (1,724.3) | (1,209.1) | ||
Net cash flows | 406.6 | 856.9 | (619.8) | ||
Effect of changes in exchange rates on cash | 4.6 | 5.2 | (28.1) | ||
Net increase (decrease) in cash and cash equivalents | 411.2 | 862.1 | (647.9) | ||
Cash and cash equivalents at beginning of the year | 3,121.1 | 2,259 | 2,906.9 | ||
Cash and cash equivalents at end of the year | 3,532.3 | 3,121.1 | 2,259 | ||
Supplemental Disclosures of Cash Flow Information: | |||||
Interest paid | (59.9) | (61) | (91.4) | ||
Income taxes paid, net of refunds | € (678.7) | € (554.4) | € (475) | ||
[1] | Depreciation and amortization includes depreciation of property, plant and equipment, amortization of intangible assets, and amortization of underwriting commissions and discount related to the bonds and credit facility. | ||||
[2] | Equity method investments includes the profit (loss) related to equity method investments, dividends received from equity method investments and capitalization of R&D and supply chain support funding. The dividend received is a cash inflow in 2019 of €99.9 million ( 2018 : €89.2 million , 2017 : €19.7 million ). | ||||
[3] | In 2019 , an amount of €184.1 million ( 2018 : €191.6 million , 2017 : €36.5 million ) of the purchase of property, plant and equipment relates to funding provided for tooling to our equity method investment , which is initially recognized as part of the other assets. | ||||
[4] | In 2018 , an amount of €54.7 million of land and buildings was reclassified to other assets. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash received equity method investments | € 99.9 | € 89.2 | € 19.7 |
Funding provided for tooling equity method investment [Member] | |||
Additions related to non-cash transfers | € 184.1 | € 191.6 | € 36.5 |
General Information _ Summary o
General Information / Summary of General Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
General Information / Summary of General Accounting Policies | General information / summary of general accounting policies ASML, with its corporate headquarters in Veldhoven, the Netherlands, is engaged in the development, production, marketing, selling and servicing of advanced semiconductor equipment. ASML’s principal operations are in the Netherlands, the US and Asia. Our shares are listed for trading in the form of registered shares on Euronext Amsterdam and on NASDAQ. The principal trading market of our ordinary shares is Euronext Amsterdam. Basis of preparation The accompanying Consolidated Financial Statements are stated in millions of euros unless indicated otherwise. The accompanying Consolidated Financial Statements have been prepared in conformity with US GAAP . We have reclassified certain prior period amounts to align with the current period presentation. Use of estimates The preparation of our Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the balance sheet dates , and the reported amounts of net sales and costs during the reported periods. Actual results could differ from those estimates. We evaluate our estimates continuously and we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates if the assumptions prove incorrect. To the extent there are material differences between actual results and these estimates, our future results could be materially and adversely affected. We believe that the accounting policies described below require us to make significant judgments and estimates in the preparation of our Consolidated Financial Statements. Our most critical accounting estimates include: • Revenue recognition, including lease accounting • Inventory reserves • Uncertain tax positions in income taxes • Contingencies and litigation • Evaluation of long-lived assets for impairment Principles of consolidation The Consolidated Financial Statements include the Financial Statements of ASML Holding N.V. and all of its subsidiaries. Subsidiaries are all entities over which ASML controls the financial and operating activities, generally accompanying a shareholding of more than 50.0% of the outstanding voting rights. Subsidiaries are fully consolidated from the date on which control is obtained by ASML. All intercompany transactions, balances and unrealized results on transactions with subsidiaries are eliminated. We also assess if we are the primary beneficiary of, and thus would consolidate, any variable interest entity. Foreign currency translation The financial information for subsidiaries outside the euro-zone is measured using a mix of local currencies or the euro as the functional currency. The Financial Statements of those foreign subsidiaries are translated into euros in the preparation of ASML’s Consolidated Financial Statements . Assets and liabilities are translated into euros at the exchange rate on the respective balance sheet dates. Income and costs are translated into euros based on the average exchange rate for the corresponding period. The resulting translation adjustments are recorded directly in shareholders’ equity. New US GAAP accounting pronouncements adopted During 2019 , ASML has adopted the following accounting pronouncements : Adoption of ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326)" was issued by the FASB in June 2016 and provides financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. The adoption of ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326) does not have a material impact on our Consolidated Financial Statements . New US GAAP accounting pronouncements issued but not adopted For the year ended December 31, 2019 , there are no new US GAAP accounting pronouncements which have not yet been adopted and are expected to have a material impact on our Consolidated Financial Statements . |
Revenue from Contract with Cust
Revenue from Contract with Customer Revenue from Contract with Customer | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers | Revenue from contracts with customers Accounting Policy - Revenue from contracts with customers We measure revenue based on the consideration specified in the contracts with our customers, adjusted for any significant financing components, and excluding any taxes 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. We bill our customers for, and recognize as net sales, any charges for shipping and handling costs. We have a right to part of the payment for our systems upon reserving a production slot, part upon delivery of our systems, and the remaining part upon final acceptance of our systems. Right to payment for our service and field options occurs upon shipment or completion of the service unless described otherwise. The payment term is typically due 15-45 days after the aforementioned events. The costs related to our sales 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, other holistic lithography solutions and customer services. The main portion of our net sales is derived from volume purchase agreements 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. In our volume purchase agreements 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 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. 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 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 services provided. 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 determined using the adjusted market assessment approach, which requires judgment. 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. Used systems We have no 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 sale of the repurchased and refurbished 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 which is 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. Transfer of control and revenue recognition for new product introductions occurs upon customer acceptance (generally at SAT). Once there is an established 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 and on certain optic parts for 60 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. Goods or services Nature, timing of satisfying the performance obligations, and significant payment terms Application projects Application 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. 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 transfers 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. Accounting policy - Revenue from lessor agreements 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. Leases where substantially all the risks and rewards incidental to ownership of an asset are transferred to the lessee are classified as sales-type lease arrangements. If we have offered the customer a sales-type lease arrangement, revenue is recognized at commencement of the lease term. The difference between the gross finance receivable and the present value of the minimum lease payments is initially recognized as unearned interest and presented as a deduction to the gross finance receivable. Interest income is recognized in the Consolidated Statements of Operations over the term of the lease contract using the effective interest method. Leases whereby all the risks and rewards incidental to ownership are not transferred to the lessee are classified as operating lease arrangements. If we have offered the customer an operating lease arrangement, the system is included in property, plant and equipment upon commencement of the lease. Revenue from operating lease arrangements is recognized in the Consolidated Statements of Operations on a straight-line basis over the term of the lease contract. Disaggregation of revenue Our revenue from contracts with customers, on a disaggregated basis, aligns with our reportable segment disclosures with the addition of disaggregation of net system sales per technology and per end-use. Net system sales per technology were as follows: Year ended December 31 Net system sales Net system sales € millions 2019 EUV 26 2,799.7 ArFi 82 4,707.7 ArF dry 22 401.2 KrF 65 679.7 i-line 34 133.5 Metrology & Inspection 115 274.4 Total 344 8,996.2 2018 EUV 18 1,880.1 ArFi 86 4,806.9 ArF dry 16 274.3 KrF 78 860.1 i-line 26 98.6 Metrology & Inspection 114 339.1 Total 338 8,259.1 2017 EUV 11 1,084.2 ArFi 76 4,028.7 ArF dry 13 186.4 KrF 71 743.5 i-line 26 99.7 Metrology & Inspection 95 281.9 Total 292 6,424.4 Net system sales per end-use were as follows: Year ended December 31 Net system sales Net system sales € millions 2019 Logic 238 6,565.3 Memory 106 2,430.9 Total 344 8,996.2 2018 Logic 125 3,713.7 Memory 213 4,545.4 Total 338 8,259.1 2017 Logic 145 3,456.7 Memory 147 2,967.7 Total 292 6,424.4 Contract assets and liabilities The contract assets primarily relate to our rights to a consideration for goods or services delivered but not invoiced at the reporting date. The contract assets are transferred to the receivables when the receivables become unconditional. The contract liabilities primarily relate to remaining performance obligations for which consideration has been received such as down payments received for systems to be delivered, as well as deferred revenue from system shipments, based on the allocation of the consideration to the related performance obligations in the contract. This deferred revenue mainly consists of extended and enhanced warranties, installation and free goods or services provided as part of a volume purchase agreement. The majority of our customer contracts contain both asset and liability positions. At the end of each reporting period, these positions are netted on a contract basis and presented as either an asset or a liability in the Consolidated Balance Sheets. Consequently, a contract balance can change between periods from a net contract asset balance to a net contract liability balance in the balance sheet. Significant changes in the contract assets and the contract liabilities balances during the periods are as follows. Year ended December 31 2018 2019 (in millions) € € Contract Assets Contract Liabilities Contract Assets Contract Liabilities Balance at beginning of the year 270.4 2,152.0 95.9 2,953.2 Transferred to receivables from contract assets from the beginning of the period (456.2 ) — (167.4 ) — Revenues recognized during the year, to be invoiced 192.3 — 68.7 — Revenue recognition that was included in the contract liability balance at the beginning of the period — (1,306.3 ) — (1,528.4 ) Changes as a result of cumulative catch-up adjustments arising from changes in estimates — (64.4 ) — (133.4 ) Remaining performance obligations for which considerations have been received — 2,082.5 — 2,760.8 Transfer between contract assets and liabilities 89.4 89.4 233.8 233.8 Total 95.9 2,953.2 231.0 4,286.0 The increase in the net contract liability to €4,055.0 million as of December 31, 2019 compared to €2,857.3 million as of December 31, 2018 was mainly caused by an increase in contract liabilities related to the recognition of down payments related to unconditional receivables as well as regular down payments for systems to be shipped in 2020 or later. The cumulative catch-up adjustments recognized as revenues in 2019 mainly relate to changed estimates impacting discounts and credits related to system volumes as part of a volume purchase agreement that ended in 2019 . Remaining performance obligations Our customers generally commit to purchase systems, service, or field options through separate sales orders and service contracts. Typically the terms and conditions of these sales orders come from volume purchase agreements with our customers which can cover up to 5 years . The revenues for each committed performance obligation are estimated based on the terms and conditions agreed through the volume purchase agreements. When revenues will be recognized is mainly dependent on when systems are shipped or installed or service projects are performed and completed, all of which is estimated based on contract terms and communication with our customers, including the customer facility readiness to take delivery of our goods or services. The volume purchase agreements may be subject to modifications, impacting the amount and timing of revenue recognition for the anticipated revenues. As of December 31, 2019 the remaining performance obligations amount to €13.2 billion ( December 31, 2018 : €10.0 billion 1 ). We estimate 55% ( December 31, 2018 : 66% ) of these anticipated revenues is expected to be recognized during the next 12 months . The remaining anticipated revenues mainly include orders related to NXE:3400C and our next-generation EUV platform, High-NA. We target to start shipping High-NA to our customers early 2022. 1. The remaining performance obligations as of December 31, 2018 have been increased by €1.5 billion to reflect commitments not included in our 2018 Consolidated Financial Statements . The adjustment does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . |
Segment Disclosure
Segment Disclosure | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Disclosure | Segment disclosure ASML has one reportable segment, for the development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. Its operating results are regularly reviewed by the Chief Operating Decision Maker in order to make decisions about resource allocation and assess performance. Management reporting includes net system sales figures of new and used systems, sales per technology and sales per end-use. For the sales per technology and end-use, see Note 2 Revenue from contracts with customers . Net system sales for new and used systems were as follows: Year ended December 31 2017 2018 2019 (in millions) € € € New systems 6,332.9 8,115.6 8,807.1 Used systems 91.5 143.5 189.1 Net system sales 6,424.4 8,259.1 8,996.2 For geographical reporting, total net sales are attributed to the geographic location in which the customers’ facilities are located. Long-lived assets are attributed to the geographic location in which these assets are located . Total net sales and long-lived assets (consisting of property, plant and equipment) by geographic region were as follows: Year ended December 31 Total net sales Long-lived assets (in millions) € € 2019 Japan 463.2 6.5 Korea 2,202.1 24.1 Singapore 120.0 1.6 Taiwan 5,357.0 131.6 China 1,377.7 21.3 Rest of Asia 2.6 0.5 Netherlands 2.6 1,396.0 EMEA 314.6 4.3 United States 1,980.2 413.4 Total 11,820.0 1,999.3 2018 Japan 567.6 8.2 Korea 3,725.1 24.6 Singapore 222.5 1.1 Taiwan 1,989.5 96.5 China 1,842.8 16.2 Rest of Asia 1.9 0.4 Netherlands 1.2 1,113.8 EMEA 631.7 5.1 United States 1,961.7 323.6 Total 10,944.0 1,589.5 2017 Japan 404.3 3.4 Korea 3,031.4 23.2 Singapore 163.7 0.8 Taiwan 2,096.7 88.1 China 919.5 4.1 Rest of Asia 3.5 3.0 Netherlands 4.0 1,186.0 EMEA 921.5 5.0 United States 1,418.1 287.2 Total 8,962.7 1,600.8 In 2019 , total net sales to the largest customer accounted for €4,688.6 million , or 39.7% , of total net sales ( 2018 : €2,476.8 million , or 22.6% , of total net sales ; 2017 : €2,454.4 million , or 27.4% , of total net sales ). Our three largest customers (based on total net sales) accounted for €2,191.8 million , or 77.2% , of accounts receivable and finance receivables at December 31, 2019 , compared with €1,491.3 million , or 58.8% , at December 31, 2018 . Substantially all of our sales were export sales in 2019 , 2018 and 2017 . The increase in total net sales of €876.0 million , or 8.0% , to €11,820.0 million in 2019 from €10,944.0 million in 2018 ( 2017 : €8,962.7 million ) is driven by the increase in EUV, both in the number of units and also in the transition to the high productivity NXE:3400C model that has a higher ASP. The Logic sector was the largest end-user growth driver, as well as the largest consumer of our most advanced EUV systems. In addition to the growth in EUV, Logic was also the key driver for the DUV business in 2019 , although DUV net sales were consistent from 2018 to 2019 . This is due to net sales to the Memory sector decreasing significantly compared to 2018 , as we saw our Memory customers digesting the capacity additions in 2017 and 2018 in order to keep demand and supply in balance. Taiwan saw the highest geographic sales growth at over 100% in support of multiple new factories. Similar to DUV, Metrology & Inspection net sales decreased from 2018 to 2019 in line with Memory demand. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash and Cash Equivalents and Short-term Investments | Cash and cash equivalents and short-term investments Accounting Policy Cash and cash equivalents consist primarily of highly liquid investments, such as bank deposits, money market funds and interest-bearing bank accounts with insignificant interest rate risk and original maturities to the entity holding the investments of 3 months or less at the date of acquisition. Investments with original maturities to the entity holding the investments longer than 3 months and less than 1 year at the date of acquisition are presented as short-term investments. Gains and losses other than impairments, interest income and foreign exchange results, are recognized in OCI until the short-term investments are derecognized. Upon derecognition, the cumulative gain or loss recognized in OCI, is recognized in the Consolidated Statements of Operations. Short-term investments have insignificant interest rate risk. Cash and cash equivalents and short-term investments consist of the following: Year ended December 31 2018 2019 (in millions) € € Deposits with financial institutions 188.2 434.8 Investments in money market funds 2,342.6 2,139.7 Interest-bearing bank accounts 590.3 957.8 Cash and cash equivalents 3,121.1 3,532.3 Deposits with financial institutions 913.3 1,185.8 Short-term investments 913.3 1,185.8 The deposits with financial institutions and investments in money market funds have an investment grade credit rating. Our cash and cash equivalents are predominantly denominated in euros and partly in US dollars and Taiwanese dollars. At December 31, 2019 no restrictions on usage of cash and cash equivalents exist ( 2018 : no restrictions). The carrying amount of these assets approximates their fair value. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable, net Accounting Policy Accounts receivable are measured at fair value and are subsequently measured at amortized cost, less allowance for credit losses. The carrying amount of the accounts receivable approximates the fair value. We perform ongoing credit evaluations on our customers’ financial condition. We periodically review whether an allowance for credit losses is needed by considering factors such as historical payment experience, credit quality, aging of the accounts receivable balances, expected lifetime losses, and current economic conditions that may affect a customer's ability to pay . When entering into arrangements to sell our receivable, we de-recognize the receivable only in case the receivable is isolated, the transferred receivable includes the right to pledge or exchange, and we transfer control over the receivable. Accounts receivable consist of the following: As of December 31 2018 2019 (in millions) € € Accounts receivable, gross 1,504.9 1,791.9 Allowance for credit losses (6.7 ) (5.1 ) Accounts receivable, net 1,498.2 1,786.8 The increase in accounts receivable as of December 31, 2019 compared to December 31, 2018 is mainly due to the increase in our sales. The increase is partly offset by sales of Accounts receivable through a factoring arrangement totaling €1.3 billion , of which €0.7 billion relates to unconditional accounts receivable for down payments on systems to be shipped in 2020. The total receivables amount sold has been derecognized and treated as an operating cash flow within the Consolidated Statements of Cash Flows as all transferred receivables were determined to be isolated, contain a right to pledge, and as we transfered control over the receivable. |
Finance Receivables, net
Finance Receivables, net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Finance Receivables | Finance receivables, net Accounting Policy Finance receivables consist of receivables in relation to sales-type leases. We perform ongoing credit evaluations of 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. The following table lists the components of the finance receivables as of December 31, 2019 and 2018 : As of December 31 2018 2019 (in millions) € € Finance receivables, gross 893.7 994.4 Unearned interest (7.5 ) (8.8 ) Finance receivables, net 886.2 985.6 Current portion of finance receivables, gross 613.3 568.4 Current portion of unearned interest (2.2 ) (3.9 ) Non-current portion of finance receivables, net 275.1 421.1 The increase in finance receivables as of December 31, 2019 compared to December 31, 2018 is mainly due to free-use periods and support of capacity ramp-up of high-end systems which are part of the early-insertion lifecycle of the technology. At December 31, 2019 , finance receivables, gross due for payment in each of the next 5 years and thereafter are as follows: (in millions) € 2020 568.4 2021 257.7 2022 168.3 2023 — 2024 — Thereafter — Finance receivables, gross 994.4 Gross profit recognized at the commencement date of the lease for our sales-type leases amounts to €343.9 million during 2019 ( 2018 : €446.5 million ; 2017 : €247.4 million ). Interest income for our sales-type leases in 2019 amounts to €4.7 million ( 2018 : €4.9 million ; 2017 : €4.0 million ). In 2019 , 2018 and 2017 we did no t record any expected credit losses from finance receivables. As of December 31, 2019 , the finance receivables were neither past due nor impaired. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, net Accounting Policy Inventories cost are computed on a first-in, first-out basis. Our inventory values are comprised of purchased materials, freight expenses and customs duties, production labor and overhead. The valuation of inventory includes determining which fixed costs can be included in inventory based on normal capacity of our manufacturing and assembly facilities. If factory usage is below the established normal capacity level a portion of our fixed production overhead costs are not included in the cost of inventory; instead, they are recognized as cost of sales in the current period. Inventory is valued at the lower of cost or net realizable value, based on assumptions about future demand and market conditions. Valuation of inventory also requires us to estimate inventory that is defective, obsolete or in excess (Inventory Reserves). We use our demand forecast to develop manufacturing plans and utilize this information to compare against raw materials, work in progress and finished product levels to determine the amount of defective, obsolete or excess inventory. Inventories consist of the following: As of December 31 2018 2019 (in millions) € € Raw materials 1 1,550.3 2,026.3 Work-in-process 1,537.5 1,505.9 Finished products 1 793.0 771.3 Inventories, gross 3,880.8 4,303.5 Inventory reserves (441.3 ) (494.3 ) Inventories, net 3,439.5 3,809.2 1. In 2019 , the presentation of service parts needing to be reworked has been adjusted from Finished products to Raw materials as they are not able to be used in sale of goods or services in their current state. As a result, we have reclassified €312.0 million from Finished products to Raw materials for the previously reported December 31, 2018 balances . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . The increase in inventory in 2019 compared to 2018 is driven by our growing business. A summary of activity in the inventory reserves is as follows: Year ended December 31 2018 2019 (in millions) € € Balance at beginning of year (349.9 ) (441.3 ) Additions for the year (218.2 ) (221.5 ) Effect of changes in exchange rates 4.2 (0.5 ) Utilization of the reserve 122.6 169.0 Balance at end of year (441.3 ) (494.3 ) In 2019 , the addition for the year is recorded between cost of sales €221.5 million and R&D costs €0.0 million ( 2018 : cost of sales €207.9 million and R&D costs €10.3 million , 2017 : cost of sales €101.3 million and R&D costs €18.8 million ). In 2019 , the additions for the year mainly relates to inventory items which became obsolete due to technological developments and design changes. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | Other assets Other current and non-current assets consist of the following: As of December 31 2018 2019 (in millions) € € Advance payments to Carl Zeiss SMT GmbH 231.1 215.2 Prepaid expenses 299.6 372.5 Derivative financial instruments 1 42.2 34.5 VAT 116.0 89.5 Other assets 83.7 131.1 Other current assets 772.6 842.8 Advance payments to Carl Zeiss SMT GmbH 533.4 585.3 Derivative financial instruments 1 59.7 103.0 Compensation plan assets 43.1 55.1 Non-current accounts receivable 150.7 67.8 Other assets 19.2 19.2 Other non-current assets 806.1 830.4 1. For further details on derivative financial instruments see Note 24 Financial risk management . ASML owns an indirect interest of 24.9% in Carl Zeiss SMT GmbH, who is our single supplier of optical columns and, from time to time, ASML makes non-interest bearing advance payments to Carl Zeiss SMT GmbH supporting their work-in-process, thereby securing lens and optical column deliveries to us. Amounts included in these advance payments are settled through future lens or optical column deliveries. The increase in this balance is due to our continued growth within our EUV business, as well as the support provided under the High-NA agreement. For more details, see Note 9 Equity method investments . Prepaid expenses mainly include prepaid income taxes on intercompany profit not realized by the ASML group of €159.2 million ( 2018 : €100.9 million ) and the contract balance related to the joint development program with imec of €88.8 million as of December 31, 2019 ( 2018 : €107.5 million ). At the end of 2018 we started the new joint development program with imec under which we mainly deliver systems and services upfront and receive R&D services throughout the contract period up until 2024. The increase in prepaid expenses mainly relates to an increase in prepaid income taxes on intercompany profit, which is caused by an increase of intercompany inventory balances. Non-current accounts receivable decreased as the majority of the balance as of December 31, 2019 is due in 2020 and as such moved to current accounts receivable. |
Equity Method Investments Equit
Equity Method Investments Equity Method Investments (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Equity method investments Accounting Policy Equity investments which we are able to exercise significant influence but do not control, are accounted for using the equity method and presented on our Consolidated Balance Sheets within Equity method investments . The difference between the cost of our investment and our proportionate share of the carrying value of the investee's underlying net assets as of the acquisition date is the basis difference. The basis difference is allocated to the identifiable assets and liabilities based on their fair value as of the acquisition date (i.e., the date which we obtain significant influence), with the excess costs of the investment over our proportional fair value of the identifiable assets and liabilities being equity method goodwill. We amortize the basis difference related to the other intangible assets over the estimated remaining useful lives of these assets that gave rise to this difference. The remaining weighted-average life of the finite-lived intangible assets acquired is 17.2 years and is amortized using a straight-line method. In-process R&D is initially capitalized at fair value as an intangible asset with an indefinite life. When the R&D project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. If the project is abandoned, we will record the full basis difference charge for the value of the related intangible asset in our Consolidated Statements of Operations in the period of abandonment. Equity method goodwill is not amortized or tested for impairment; instead the equity method investment is tested for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. Under the equity method, after initial recognition at cost, our Equity method investments are adjusted for our proportionate share of the profit or loss and other comprehensive income of the investee, recognized on a one-quarter time lag and presented within Profit (loss) related to equity method investments . Our proportionate share of the profit or loss of the investee is adjusted for any differences in accounting principles and policies, basis difference adjustments and intra-entity profits. Receipt of dividends reduces our Equity method investments , which is presented as an operating cash flow based on the nature of the distributions. Equity method investments consists of a 24.9% equity interest acquired on June 29, 2017 in Carl Zeiss SMT Holding GmbH & Co. KG, a limited partnership that owns Carl Zeiss SMT GmbH, our single supplier of optical columns. We have determined that Carl Zeiss SMT Holding GmbH & Co. KG is a variable interest entity because the entity was established without substantive voting rights since there is disparity between our voting rights and our economics, as well as substantially all of Carl Zeiss SMT Holding GmbH & Co. KG ’ s activities involve or are conducted on our behalf. However, we are not the primary beneficiary of the variable interest entity because we lack the power, through voting rights or similar rights, to direct the activities that most significantly impact Carl Zeiss SMT Holding GmbH & Co. KG ’ s economic performance. For the year ended December 31, 2019 , we recorded a profit from equity method investments of €18.2 million ( 2018 : €6.2 million ) in our Consolidated Statements of Operations. This profit includes the following components: • Profit of €82.8 million ( 2018 : €80.9 million ) related to our share of Carl Zeiss SMT Holding GmbH & Co. KG’s net income after accounting policy alignment • Cost due to basis difference amortization related to intangible assets of €26.7 million ( 2018 : €26.7 million ) • Cost due to intercompany profit elimination of €13.7 million ( 2018 : €10.7 million ) • Cost due to dividend forfeiture of €24.2 million ( 2018 : €0.0 million ) • Cost due to inventory step-up release of €0.0 million ( 2018 : €37.3 million ) During 2019 , we received dividends amounting to €99.9 million ( 2018 : €89.2 million ) from Carl Zeiss SMT Holding GmbH & Co. KG. Carl Zeiss SMT Holding GmbH & Co. KG is a privately held company; therefore, quoted market prices for its stock are not available. The following summarizes the total assets and liabilities related to our variable interest in Carl Zeiss SMT Holding GmbH & Co. KG as reflected in our Consolidated Balance Sheets , as well as our maximum exposure to losses as of December 31, 2019 . Our maximum exposure to loss is limited to our equity method investment in Carl Zeiss SMT Holding GmbH & Co. KG and prepayments provided to the equity method investment. As of December 31 2019 2019 Maximum exposure to loss (in millions) Assets Liabilities EUV Agreements 320.9 — 320.9 DUV Agreements 34.7 — 34.7 High-NA Agreement 566.5 (28.0 ) 566.5 Investment agreement for 24.9% equity 833.0 — 833.0 EUV and DUV Agreements Carl Zeiss SMT GmbH is our single supplier of optical columns and, from time to time, receives non-interest bearing advance payments from us that support their work in-process, thereby securing lens and optical module deliveries to us. Amounts owed under these advance payments are settled through future lens, DUV or EUV optical component deliveries. Our maximum exposure related to this agreement is limited to the assets not settled as of the balance sheet date. High-NA Agreement On November 3, 2016 we agreed with Carl Zeiss SMT GmbH to support their R&D costs, capital expenditures and supply chain investments, in respect of High NA, for an amount initially estimated at €760.0 million . The current estimate as of December 31, 2019 is €1,242.2 million ( 2018 : €1,229.9 million ) . As of December 31, 2019 our estimated remaining commitment to Carl Zeiss SMT GmbH is €524.8 million ( 2018 : €795.3 million ). The table below summarizes support provided to Carl Zeiss SMT GmbH, by type: For the year ended 2017 2018 2019 (in millions) € € € Capital expenditures 89.1 191.8 184.1 R&D costs 55.8 74.8 94.2 Supply chain investments 2.6 8.5 4.5 Total support provided 147.5 275.1 282.8 Our maximum exposure related to this agreement is limited to the amount reimbursable from Carl Zeiss SMT GmbH as of the balance sheet date. R&D and supply chain support costs are capitalized for 24.9% of this funding because it directly benefits us through our investment in Carl Zeiss SMT Holding GmbH & Co. KG. The amount capitalized is presented within equity method investments. The remainder of this support relating to supply chain support costs is charged to the cost of sales as incurred, the part related to R&D costs is charged to Research and development costs as incurred. The support provided related to capital expenditures consists of tooling and facilities, which is determined to be a lease. As a result, prior to the asset being put into use, it is recorded in other assets and then transferred into ROU Assets - Finance when put into use. |
Equity Method Investments [Table Text Block] | The following summarizes the total assets and liabilities related to our variable interest in Carl Zeiss SMT Holding GmbH & Co. KG as reflected in our Consolidated Balance Sheets , as well as our maximum exposure to losses as of December 31, 2019 . Our maximum exposure to loss is limited to our equity method investment in Carl Zeiss SMT Holding GmbH & Co. KG and prepayments provided to the equity method investment. As of December 31 2019 2019 Maximum exposure to loss (in millions) Assets Liabilities EUV Agreements 320.9 — 320.9 DUV Agreements 34.7 — 34.7 High-NA Agreement 566.5 (28.0 ) 566.5 Investment agreement for 24.9% equity 833.0 — 833.0 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Accounting Policy Goodwill represents the excess of the costs of an acquisition over the fair value of the amounts assigned to assets acquired and liabilities incurred or assumed of the acquired subsidiary at the date of acquisition. Goodwill on acquisition of subsidiaries is allocated to reporting units for the purpose of impairment testing. The allocation is made to those reporting units that are expected to benefit from the business combination in which the goodwill arose. Goodwill is stated at cost less accumulated impairment losses. Goodwill is tested for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the goodwill may not be recoverable. To determine whether it is necessary to perform the quantitative goodwill impairment test, we perform a step-zero qualitative assessment, annually. If we determine that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, we do not perform a quantitative goodwill impairment test. Goodwill mainly results from the acquisitions of Cymer and HMI. The balance as of December 31, 2019 is €4,541.1 million ( 2018 : €4,541.1 million ). We have identified two reporting units: Reporting Unit ASML and Reporting Unit Cymer Light Sources. As of December 31, 2019 the goodwill allocated to Reporting Unit ASML amounts to €4,078.8 million ( 2018 : €4,078.8 million ) and Reporting Unit Cymer Light Sources amounts to €462.3 million ( 2018 : €462.3 million ). Based on our assessment during the annual goodwill impairment test, we believe it is more likely than not that the fair values of the reporting units exceed their carrying amounts, and therefore goodwill was no t impaired as of December 31, 2019 . |
Other Intangible Assets, net
Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other intangible assets, net Accounting Policy Other intangible assets include brands, intellectual property, developed technology, customer relationships, and other intangible assets not yet available for use. These finite-lived intangible assets are stated at cost, less accumulated amortization and accumulated impairment losses. Amortization is calculated using the straight-line method based on the estimated useful lives of the assets. Finite-lived intangible assets are assessed for impairment whenever there is an indication that the balance sheet carrying amount may not be recoverable using cash flow projections for the useful life. The following table shows the respective useful lives for other intangible assets: Category Estimated useful life Brands 20 years Intellectual property 3 - 10 years Developed technology 6 - 15 years Customer relationships 8 - 18 years Other 2 - 6 years As of December 31, 2019 other intangible assets consist mainly of brands, intellectual property, developed technology, customer relationships obtained from the acquisitions of HMI (2016) and Cymer (2013): (in millions) Brands Intellectual Developed Customer Other Total Cost Balance at January 1, 2018 38.2 61.9 1,199.9 228.6 32.2 1,560.8 Additions — 5.0 — — 37.0 42.0 Disposals — — — — — — Effect of changes in exchange rates 1.0 2.0 — — (3.0 ) — Balance at December 31, 2018 39.2 68.9 1,199.9 228.6 66.2 1,602.8 Additions — 73.7 — — 42.1 115.8 Disposals — — — — (0.2 ) (0.2 ) Effect of changes in exchange rates (0.3 ) (0.2 ) 0.2 — 2.4 2.1 Balance at December 31, 2019 38.9 142.4 1,200.1 228.6 110.5 1,720.5 Accumulated amortization Balance at January 1, 2018 4.8 60.0 264.2 57.8 8.0 394.8 Amortization 1.9 1.2 82.1 12.7 5.8 103.7 Disposals — — — — — — Effect of changes in exchange rates 0.7 1.6 0.2 — (2.2 ) 0.3 Balance at December 31, 2018 7.4 62.8 346.5 70.5 11.6 498.8 Amortization 1.9 7.8 82.0 12.7 11.0 115.4 Disposals — — — — (0.2 ) (0.2 ) Effect of changes in exchange rates (0.1 ) — 0.1 — 2.1 2.1 Balance at December 31, 2019 9.2 70.6 428.6 83.2 24.5 616.1 Carrying amount December 31, 2018 31.8 6.1 853.4 158.1 54.6 1,104.0 December 31, 2019 29.7 71.8 771.5 145.4 86.0 1,104.4 Additions in Intellectual property consist of intellectual property assets acquired from Mapper during 2019. During 2019 , we recorded amortization charges of €115.4 million ( 2018 : €103.7 million ; 2017 : €105.5 million ) which were recorded in cost of sales for €97.4 million ( 2018 : €97.2 million ; 2017 : €99.7 million ), in R&D costs for €7.5 million ( 2018 : €1.3 million and 2017 : €2.1 million ) and in SG&A costs for €10.5 million ( 2018 : €5.2 million and 2017 : €3.7 million ). As of December 31, 2019 , the other intangible assets not yet available for use amount to €14.9 million ( 2018 : €37.0 million ) and are allocated to Reporting Unit ASML. During 2019 we recorded no impairment charges ( 2018 : €0.0 million ; 2017 : €0.1 million ). As of December 31, 2019 , the estimated amortization expenses for other intangible assets, for the next 5 years and thereafter, are as follows: (in millions) € 2020 120.0 2021 120.0 2022 117.0 2023 109.0 2024 102.0 Thereafter 536.4 Amortization expenses 1,104.4 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net Accounting Policy Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. Costs of assets manufactured by ASML include direct manufacturing costs, production overhead and interest costs incurred for qualifying assets during the construction period. Property, plant and equipment are depreciated on a straight-line basis in the Consolidated Statements of Operations over their estimated useful lives, except for land which is not depreciated. The following table shows the respective useful lives for property, plant and equipment: Category Estimated useful life Buildings and constructions 5 - 45 years Machinery and equipment 1 - 7 years Leasehold improvements 1 - 10 years Furniture, fixtures and other equipment 3 - 5 years Property, plant and equipment is assessed for impairment whenever there is an indication that the carrying amount may not be recoverable using cash flow projections for the useful life. Property, plant and equipment consist of the following: (in millions) Land and buildings € Machinery and equipment € Leasehold improvements € Furniture, fixtures and other equipment € Total € Cost Balance at January 1, 2018 1,641.8 1,159.9 256.6 375.6 3,433.9 Additions 119.6 196.4 21.5 44.6 382.1 Disposals (57.2 ) (16.0 ) (3.4 ) (4.9 ) (81.5 ) Net non-cash movements to/from Inventories — (38.9 ) — — (38.9 ) Effect of changes in exchange rates 5.6 3.7 0.5 0.9 10.7 Balance at December 31, 2018 1,709.8 1,305.1 275.2 416.2 3,706.3 Additions 321.0 261.1 26.7 64.6 673.4 Disposals (0.3 ) (17.5 ) (1.4 ) (103.4 ) (122.6 ) Net non-cash movements to/from Inventories — 33.9 — — 33.9 Effect of changes in exchange rates 6.0 5.2 0.5 0.3 12.0 Balance at December 31, 2019 2,036.5 1,587.8 301.0 377.7 4,303.0 Accumulated depreciation and impairment Balance at January 1, 2018 552.7 742.4 244.5 293.5 1,833.1 Depreciation 92.8 174.8 19.2 28.6 315.4 Impairment charges 1.0 14.4 — — 15.4 Disposals (2.5 ) (13.3 ) (3.0 ) (4.5 ) (23.3 ) Net non-cash movements to/from Inventories — (27.8 ) — — (27.8 ) Effect of changes in exchange rates 2.0 1.5 0.2 0.3 4.0 Balance at December 31, 2018 646.0 892.0 260.9 317.9 2,116.8 Depreciation 98.5 166.7 21.3 38.8 325.3 Impairment charges — 4.7 — — 4.7 Disposals (0.2 ) (14.8 ) (1.2 ) (103.3 ) (119.5 ) Net non-cash movements to/from Inventories — (28.7 ) — — (28.7 ) Effect of changes in exchange rates 2.0 2.8 0.3 — 5.1 Balance at December 31, 2019 746.3 1,022.7 281.3 253.4 2,303.7 Carrying amount December 31, 2018 1,063.8 413.1 14.3 98.3 1,589.5 December 31, 2019 1,290.2 565.1 19.7 124.3 1,999.3 As of December 31, 2019 , the carrying amount includes assets under construction for land and buildings of €286.6 million ( 2018 : €79.0 million ), machinery and equipment of €85.4 million ( 2018 : €39.1 million ), leasehold improvements of €4.5 million ( 2018 : €7.8 million ) and furniture, fixtures and other equipment of €7.8 million ( 2018 : €9.3 million ). As of December 31, 2019 , the carrying amount of land amounts to €105.7 million ( 2018 : €94.6 million ). The majority of the additions in 2019 in land and buildings as well as furniture, fixtures and office equipment relates to construction of ASML’s logistics facility, office space and parking garages at our headquarters in Veldhoven. Our Veldhoven campus expansion will support continued growth. The majority of additions in 2019 in machinery and equipment relates to upgrade and expansion of production tooling and investment in prototypes, evaluation and training systems which are similar to those that ASML sells in its ordinary course of business. These systems are capitalized under property, plant and equipment because these are held for own use and for evaluation purposes. These are recorded at cost and depreciated over their expected useful life taking into consideration their residual value. From the time that these assets are no longer held for own use but intended for sale in the ordinary course of business, they are reclassified from property, plant and equipment to inventory at their carrying value. Net non-cash movements to/from Inventories consists of systems, tooling and equipment which we build in our factory as inventory. When inventory is utilized by R&D, for more than 1 year, it is subsequently moved to PP&E for the period it is being utilized for research and development. When no longer required for R&D activities the equipment is transferred back to inventory at its current net book value and reworked to make ready for sale to our customers. The Consolidated Statements of Operations include the following depreciation charges: As of December 31 2017 2018 2019 (in millions) € € € Cost of Sales 195.7 191.6 196.1 R&D Costs 101.7 105.9 117.2 SG&A 10.8 17.9 12.0 Total Depreciation 308.2 315.4 325.3 |
Right-of-use assets and lease l
Right-of-use assets and lease liabilities Right-of-use assets and lease liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Right-of-use assets and lease liabilities | Right-of-use assets and lease liabilities Accounting Policy We determine if an arrangement is a lease at inception. Operating leases are included in Right-of-use (“ROU”) assets - Operating, accrued & other current liabilities, and accrued & other non-current liabilities in our consolidated balance sheets. Finance leases are included in Right-of-use ("ROU") assets - Finance, current portion of long-term debt, and Long-term debt in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. 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 lease payments. The lease ROU asset also includes any lease payments made and is reduced by lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 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 lease right-of-use assets and liabilities. ASML owns the majority of real estate we utilize for manufacturing, supply chain management and general administration at our headquarter in Veldhoven, in the Netherlands. At our other locations, worldwide much of the properties we occupy are leased and therefore comprise the largest amount of our right-of-use assets. Additionally, we lease warehouse space at locations world-wide and cars for use of our employees. Right-of-use assets consist of the following leases: Operating Finance As of December 31 2018 2019 2018 2019 (in millions) € € € € Properties 105.1 177.0 — 92.1 Cars 11.9 11.9 — — Equipment — — — 26.4 Warehouses 14.5 8.7 — — Other 6.1 7.8 — — Right-of-use assets 137.6 205.4 — 118.5 For the year ended December 31, 2019 , ROU Assets under an operating lease arrangement increased by €67.8 million , mainly due to the commencement of two new real estate lease contracts in the United States . For the year ended December 31, 2019 , we recognized ROU Assets under a finance lease arrangement in our Consolidated Balance Sheets . These ROU Assets consist of facilities and tooling related to our High-NA agreement with Carl Zeiss SMT, for which the funds are prepaid by ASML. As capital expenditures under this arrangement are placed into service, we derecognized our prepaid asset and recognized a ROU Asset under a finance lease arrangement. The agreed prepayments, and conversion to ROU Assets, are planned to continue through the year 2022. Previously, one immaterial finance lease was recorded within Property, plant and equipment, which is now moved to ROU Assets - Finance for the year ended December 31, 2019 . Lease liabilities are split between current and non-current: Operating Finance As of December 31 2018 2019 2018 2019 (in millions) € € € € Current 46.3 55.6 — — Non-current 93.7 153.8 — 9.5 Lease liabilities 140.0 209.4 — 9.5 For the year ended December 31, 2019, Lease Liabilities under an operating lease arrangement increased by €69.4 million , mainly due to the commencement of two new real estate lease contracts in the United States. The majority of our finance leases do not have an associated lease liability as the lease payments have been prepaid. The Consolidated Statements of Operations include the following depreciation charges relating to these leases: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 (in millions) € € € € € € Properties 29.9 40.2 48.2 — — 2.8 Cars 7.1 7.4 8.1 — — — Equipment — — — — — 4.5 Warehouses 5.9 7.1 4.5 — — — Other 11.6 12.4 12.4 — — — Depreciation charge right-of-use assets 54.5 67.1 73.2 — — 7.3 The total cash outflows relating to the lease liabilities are as follows: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 (in millions) € € € € € € Total Cash Outflow 54.5 67.1 73.2 — — 2.8 The weighted average remaining lease term and weighted average discount rate related to the leases are as follows: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 € € € € € € Weighted average remaining lease term (months) 57 60 70 0 0 230 Weighted average discount rate (%) 2.2 % 2.1 % 2.2 % — % — % 0.7 % |
Right-of-use assets and lease liabilities | Right-of-use assets and lease liabilities Accounting Policy We determine if an arrangement is a lease at inception. Operating leases are included in Right-of-use (“ROU”) assets - Operating, accrued & other current liabilities, and accrued & other non-current liabilities in our consolidated balance sheets. Finance leases are included in Right-of-use ("ROU") assets - Finance, current portion of long-term debt, and Long-term debt in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. 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 lease payments. The lease ROU asset also includes any lease payments made and is reduced by lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 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 lease right-of-use assets and liabilities. ASML owns the majority of real estate we utilize for manufacturing, supply chain management and general administration at our headquarter in Veldhoven, in the Netherlands. At our other locations, worldwide much of the properties we occupy are leased and therefore comprise the largest amount of our right-of-use assets. Additionally, we lease warehouse space at locations world-wide and cars for use of our employees. Right-of-use assets consist of the following leases: Operating Finance As of December 31 2018 2019 2018 2019 (in millions) € € € € Properties 105.1 177.0 — 92.1 Cars 11.9 11.9 — — Equipment — — — 26.4 Warehouses 14.5 8.7 — — Other 6.1 7.8 — — Right-of-use assets 137.6 205.4 — 118.5 For the year ended December 31, 2019 , ROU Assets under an operating lease arrangement increased by €67.8 million , mainly due to the commencement of two new real estate lease contracts in the United States . For the year ended December 31, 2019 , we recognized ROU Assets under a finance lease arrangement in our Consolidated Balance Sheets . These ROU Assets consist of facilities and tooling related to our High-NA agreement with Carl Zeiss SMT, for which the funds are prepaid by ASML. As capital expenditures under this arrangement are placed into service, we derecognized our prepaid asset and recognized a ROU Asset under a finance lease arrangement. The agreed prepayments, and conversion to ROU Assets, are planned to continue through the year 2022. Previously, one immaterial finance lease was recorded within Property, plant and equipment, which is now moved to ROU Assets - Finance for the year ended December 31, 2019 . Lease liabilities are split between current and non-current: Operating Finance As of December 31 2018 2019 2018 2019 (in millions) € € € € Current 46.3 55.6 — — Non-current 93.7 153.8 — 9.5 Lease liabilities 140.0 209.4 — 9.5 For the year ended December 31, 2019, Lease Liabilities under an operating lease arrangement increased by €69.4 million , mainly due to the commencement of two new real estate lease contracts in the United States. The majority of our finance leases do not have an associated lease liability as the lease payments have been prepaid. The Consolidated Statements of Operations include the following depreciation charges relating to these leases: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 (in millions) € € € € € € Properties 29.9 40.2 48.2 — — 2.8 Cars 7.1 7.4 8.1 — — — Equipment — — — — — 4.5 Warehouses 5.9 7.1 4.5 — — — Other 11.6 12.4 12.4 — — — Depreciation charge right-of-use assets 54.5 67.1 73.2 — — 7.3 The total cash outflows relating to the lease liabilities are as follows: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 (in millions) € € € € € € Total Cash Outflow 54.5 67.1 73.2 — — 2.8 The weighted average remaining lease term and weighted average discount rate related to the leases are as follows: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 € € € € € € Weighted average remaining lease term (months) 57 60 70 0 0 230 Weighted average discount rate (%) 2.2 % 2.1 % 2.2 % — % — % 0.7 % |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued and Other Liabilities | Accrued and other liabilities Accrued and other liabilities consist of the following: As of December 31 2018 2019 (in millions) € € Costs to be paid 154.8 252.1 Personnel related items 544.4 654.6 Derivative financial instruments 1 47.4 3.9 Operating lease liabilities 2 140.0 209.4 Provisions 160.3 30.7 Standard warranty reserve 59.8 128.4 Other 6.4 1.8 Accrued and other liabilities 1,113.1 1,280.9 Less: non-current portion of accrued and other liabilities 201.7 241.0 Current portion of accrued and other liabilities 911.4 1,039.9 1. For further details on derivative financial instruments see Note 24 Financial risk management . 2. For further details on lease liabilities see Note 13 Right-of-use assets and lease liabilities . Costs to be paid as of December 31, 2019 include accrued costs for unbilled services provided by suppliers including contracted labor, outsourced services and consultancy. In addition, the costs to be paid as of December 31, 2019 include the royalties owed as part of our cross-license agreement with Nikon for the full year. Personnel related items mainly consist of accrued profit sharing, accrued management bonuses, accrued vacation days, accrued pension premiums, accrued wage tax and accrued vacation allowance. The increase in the accrued personnel related items compared to prior year is the result of the growth of our business which results in an increase in the number of our employees. The provisions mainly relate to the settlement with Nikon, which was paid during the year. For more details refer to Note 16 Commitments, contingencies and guarantees . The standard warranty reserve is based on historical product performance and total expected costs to fulfill our warranty obligation. Annually, we assess, and update if necessary, the standard warranty reserve based on the latest actual historical warranty costs and expected future warranty costs. The 2019 addition of the warranty reserve of €118.5 million is mainly due to new insights to determine our warranty, in light of the increase in installed base and the fact that EUV is now going into high-volume manufacturing. Total changes in standard warranty reserve for the years 2019 and 2018 are as follows: Year ended December 31 2018 2019 (in millions) € € Balance at beginning of year 59.7 59.8 Additions for the year 61.9 118.5 Utilization of the reserve (59.8 ) (50.0 ) Effect of exchange rates (2.0 ) 0.1 Balance at end of year 59.8 128.4 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt and interest and other costs Accounting policy Long-term debt represents debt issued privately without registration with a government authority and is payable to others under the terms of a signed agreement. Long-term debt is initially recognized at fair value. Long-term debt is subsequently measured at amortized cost. Debt is qualified as long-term debt as long as the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Interest accruals and payments relating to Long-term debt are accounted for as part of the “Accrued and other liabilities”. Interest and other costs should be accrued and recorded with the passage of time over the agreed term, regardless of when the interest receipt or payment has taken place. Long-term debt consists of the following: As of December 31 2018 2019 (in millions) € € €500 million 0.625% senior notes due 2022, carrying amount 494.5 499.5 €750 million 3.375% senior notes due 2023, carrying amount 816.0 813.3 €1,000 million 1.375% senior notes due 2026, carrying amount 964.6 1,007.0 €750 million 1.625% senior notes due 2027, carrying amount 742.4 778.3 Other 9.0 10.2 Long-term debt 3,026.5 3,108.3 Less: current portion of long-term debt — — Non-current portion of long-term debt 3,026.5 3,108.3 Our obligations to make principal repayments under our Eurobonds and other borrowing arrangements excluding interest expense as of December 31, 2019 : (in millions) € 2020 2.8 2021 2.8 2022 502.8 2023 751.3 2024 — Thereafter 1,750.0 Long-term debt 3,009.7 Less: current portion of long-term debt 2.8 Non-current portion of long-term debt 3,006.9 For the years 2020 and 2021 the obligations relate to lease payments. The years thereafter mainly relate to repayments of principals under our Eurobonds. Eurobonds The following table summarizes the carrying amount of our outstanding Eurobonds, including the fair value of interest rate swaps used to hedge the change in the fair value of the Eurobonds: As of December 31 2018 2019 (in millions) € € Amortized cost amount 2,980.0 2,983.2 Fair value interest rate swaps 1 37.5 114.9 Carrying amount 3,017.5 3,098.1 1. The fair value of the interest rate swaps excludes accrued interest. In September 2013 , we issued our €750 million 3.375% senior notes due 2023 , with interest payable annually on September 19. The notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on September 19, 2023 . In July 2016 , we issued our €500 million 0.625% senior notes due 2022 , with interest payable annually on July 7. The notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on July 7, 2022 . In July 2016 , we issued our €1,000 million 1.375% senior notes due 2026 , with interest payable annually on July 7. The notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on July 7, 2026 . In November 2016 , we issued our €750 million 1.625% senior notes due 2027 , with interest payable annually on May 28. The notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on May 28, 2027 . The Eurobonds serve as hedged items in fair value hedge relationships in which we hedge the variability of changes in the fair value of our Eurobonds due to changes in market interest rates with interest rate swaps. The fair value changes of these interest rate swaps are recorded on the Consolidated Balance Sheets under derivative financial instruments (within other current assets, other non-current assets, current accrued and other liabilities and non-current accrued and other liabilities) and the carrying amount of the Eurobonds is adjusted for these fair value changes only. The following table summarizes the estimated fair value of our Eurobonds: As of December 31 2018 2019 (in millions) € € Principal amount 3,000.0 3,000.0 Carrying amount 3,017.5 3,098.1 Fair value 1 3,119.4 3,247.7 1. Source: Bloomberg Finance LP. The fair value of our Eurobonds is estimated based on quoted market prices as of December 31, 2019 . Due to changes in market interest rates and credit spreads since the issue of our Eurobonds which carry a fixed coupon interest rate, the fair value deviates from the principal amount. Lines of credit Our available committed credit facility, with a group of banks, is €700.0 million as of December 31, 2019 and as of December 31, 2018 . No amounts were outstanding under the committed credit facility at the end of 2019 and 2018 . This facility of €700.0 million was renegotiated on July 3, 2019 , including the extension of the maturity date to July 3, 2024 . The extension includes options for extension by two 1-year extension options on the first and the second anniversary of the facility (extending the maturity potentially to 2026) , if agreed by both ASML and the lenders . Outstanding amounts under this credit facility will bear interest at EURIBOR or LIBOR plus a margin that depends on our credit rating and ESG score. Interest and other, net Interest and other consist mainly of interest income and interest expenses. In 2019, the interest expense component is €36.6 million ( 2018 : €41.8 million and 2017 : €57.5 million ), related to interest expense on our Eurobonds, as well as related interest rate swaps and hedges, and amortized financing costs. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, contingencies and guarantees Legal contingencies ASML is party to various legal proceedings generally incidental to our business. ASML also faces exposures from other actual or potential claims and legal proceedings. In addition, ASML’s customers may be subject to claims of infringement from third parties alleging that the ASML equipment used by those customers in the manufacture of semiconductor products, and / or the methods relating to use of the ASML equipment, infringes one or more patents issued to those third parties. If these claims were successful, ASML could be required to indemnify such customers for some or all of the losses incurred or damages assessed against them as a result of that infringement. In connection with proceedings and claims, our management evaluates, based on the relevant facts and legal principles, the likelihood of an unfavorable (or favorable) outcome, and whether the amount of the loss (or gain) can be reasonably estimated. Significant subjective judgments are required in these evaluations, including judgments regarding the validity of asserted claims and the likely outcome of legal and administrative proceedings. The outcome of these proceedings, however, is subject to a number of factors beyond our control, most notably the uncertainty associated with predicting decisions by courts and administrative agencies. In addition, estimates of the potential costs (or gains) associated with legal and administrative proceedings frequently cannot be subjected to any sensitivity analysis, as damage estimates or settlement offers by claimants may bear little or no relation to the eventual outcome. Finally, in any particular proceeding, we may agree to settle or to terminate a claim or proceeding in which we believe that it would ultimately prevail where we believe that doing so, when taken together with other relevant commercial considerations, is more effective than engaging in an expensive and protracted litigation, the outcome of which is uncertain. Management determined that either a loss (or gain) was not probable and/or was not reasonably estimable and in 2019 , no losses or gains related to legal contingencies are charged to our Consolidated Statements of Operations ( 2018 : €131.0 million and 2017 : €0.0 million ). On January 23, 2019 , ASML entered into a binding MOU with Nikon and Carl Zeiss SMT relating to a comprehensive settlement of all pending disputes between Nikon, ASML and Zeiss. On February 18, 2019 , the parties executed the settlement and cross-license agreement contemplated by the MOU. The terms include a payment to Nikon by ASML and Zeiss of a total of €150.0 million and royalty payments of 0.8% by ASML and Zeiss to Nikon, and by Nikon to ASML and Zeiss, over the sales of their respective immersion lithography systems for 10 years from date of the agreement. As of December 31, 2018 we accrued an amount in the accrued and other liabilities of €131.0 million representing ASML’s share of the €150.0 million , which was paid during the first half of 2019 . See Note 14 Accrued and other liabilities . Other commitments, contingencies and guarantees We have various contractual obligations, some of which are required to be recorded as liabilities in our Consolidated Balance Sheets , including long- and short-term debt and lease commitments. Other contractual obligations, namely purchase obligations and guarantees, are generally not required to be recognized as liabilities but are required to be disclosed. Our contractual obligations as of December 31, 2019 can be summarized as follows: Payments due by period Total 1 year 2 year 3 year 4 year 5 year After (in millions) € € € € € € € Long-Term Debt Obligations, including interest expense 1 3,303.5 59.2 59.0 556.1 795.8 26.3 1,807.1 Lease Obligations 2 209.4 53.5 44.4 31.7 19.1 11.8 48.9 Purchase Obligations 4,562.7 3,947.8 384.6 149.0 56.8 17.5 7.0 Carl Zeiss SMT GmbH High NA Funding Commitment 3 524.8 304.3 214.4 6.1 — — — Total Contractual Obligations 4 8,600.4 4,364.8 702.4 742.9 871.7 55.6 1,863.0 1. Long-term debt obligations mainly relate to principal amounts and interest payments of our Eurobonds. For the amounts excluding interest expenses and for further details see Note 15 Long-term debt and interest and other costs . 2. For further details see Note 13 Right-of-use assets and lease liabilities . 3. For further details see Note 9 Equity method investments . 4. We have excluded unrecognized tax benefits for an amount of €227.1 million as the amounts that will be settled in cash are not known and the timing of any payments is uncertain. We have purchase commitments towards suppliers in the ordinary course of business. ASML expects that it will honor these purchase commitments to fulfill future sales, in line with the timing of those future sales. The general terms and conditions of the agreements relating to the major part of our purchase commitments as of December 31, 2019 contain clauses that enable us to delay or cancel delivery of ordered goods and services up to the dates specified in the corresponding purchase contracts. These terms and conditions that we typically agree with our supply chain partners give us additional flexibility to adapt our purchase commitments to our requirements in light of the cyclicality and technological developments inherent in the industry in which we operate. We establish a provision for cancellation costs when the liability has been incurred and the amount of cancellation fees is reasonably estimable. Our guarantees as of December 31, 2019 can be summarized as follows: We have a non-committed guarantee facility of €85.0 million under which guarantees in the ordinary course of business can be provided to third parties. As of January 1, 2019 , ASML entered into a non-committed credit facility for our Chinese subsidiary of €130.0 million . The non-committed credit facility covers bank guarantees, standby letters of credit, as well as advances up to €75.0 million . During the first half of 2019 , ASML entered into a 10 year lease for real estate in San Jose, California for which ASML Holding N.V. executed a parental guarantee agreement with the landlord. The guarantee covers the associated rent and operating expenses our subsidiary is obliged to pay, up to €92.4 million . The parental guarantee serves as recourse in case of default by the subsidiary and cannot exceed the amounts stated above. |
Share-based compensation Share-
Share-based compensation Share-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share based compensation | Share based compensation Accounting Policy Share-based payments ASML has share based-payment plans for the company’s employees. These plans consist of performance plans including services and service only plans. The performance plans contain 70% non-market based elements and a 30% market based element. The fair value of the market based element of the performance plans (30% Total Shareholder Return as compared to a specific peer group) is measured at the grant date incorporating the expected vesting and expected value at vesting, using a tailored Monte Carlo simulation model. The fair value of the non-market based element of the performance plans (ROAIC (40%), rating in technology index (20%) and sustainability (10%)) and the service plans (being service over specified period of time) is measured at the grant date at the share price less present value of expected dividends during the vesting period, as participants are not entitled to dividends payable and voting rights during the vesting period. The likelihood of the conditions being met for service and non-market performance plans is assessed as part of the company’s best estimate of the number of equity instruments that will ultimately vest . Participants are entitled to a conditional grant of company shares upon awarding. Performance plans are subject to cliff vesting and are accounted for on a straight line basis. Service only plans are subject to graded vesting. Each installment of the plan is therefore accounted as a separate grant with a separate fair value. This means that each installment will be separately measured and attributed to expense over the related vesting period. Expenses for the market based element are recognized during vesting at a fixed vesting level (as the vesting expectation is incorporated in the fair value) provided that all other performance conditions are met. Expenses for the non-market based elements and service plans are recognized during vesting at expected vesting levels, which are updated during vesting period as necessary, with a final update/adjustment at vesting date. All share based remuneration expenses are recognized as personnel expense, with a corresponding entry in equity, during the vesting period of the award. Share based remuneration expenses are included in the same income statement line or lines in the functional grouped consolidated statement of operations as the compensation paid to the employees receiving the stock-based awards. Share-based compensation The General Meeting approved the adoption of the most recent remuneration Policy for the Board of Management and the number of shares to be issued. The most recent remuneration policy includes the target and maximum levels of the LTI plans, the performance measures and pay-out zone percentages. The General Meeting also approved the restrictions and limits to the Board of Management for issuance/granting of ordinary shares, limits for restricting or excluding the preemption rights accruing to shareholder and the restrictions and limits to the Board of Management for repurchasing ordinary shares on behalf of the company. Employee Umbrella Share Plan The Employee Umbrella Share Plan, effective as of January 1, 2014 covers all employees. All grants under the Employee Umbrella Share Plan typically have a 3 -year vesting period and are subject to the above mentioned performance or service criteria. The assumptions for the calculation of the fair value of shares, which include a market based performance element (Total Shareholder Return) are set out in the following table: Year ended December 31 2017 2018 2019 Share price in € at grant date 114.1 166.9 199.5 Expected volatility ASML 27.1 % 26.1 % 29.8 % Expected volatility PHLX index 21.6 % 21.3 % 24.8 % Vesting period 2.9 years 2.9 years 2.5 years Dividend yield 1.1 % 0.8 % 1.1 % Risk free interest rate (Eurozone) (0.6 )% (0.4 )% (0.8 )% Risk free interest rate (US) 1.5 % 2.2 % 1.8 % Expenses for share plans were as follows: Year ended December 31 2017 2018 2019 (in millions, except weighted average period) € € € Total compensation expenses incurred for share based remuneration (including share-based payments to the BoM) 53.1 46.3 74.6 The tax benefit (excluding excess tax benefits) recognized related to the recognized share-based compensation costs in the US 8.7 5.6 5.9 Total compensation expenses to be incurred for share based remuneration (including share-based payments to the BoM) in future periods 78.5 94.2 95.8 Weighted average period in which compensation expenses (including share-based payments to the BoM) are expected to be recognized 1.8 years 1.7 years 1.6 years Details with respect to shares granted and vested during the year are set out in the following table: EUR-denominated USD-denominated Year ended December 31 2017 2018 2019 2017 2018 2019 Total fair value at vesting date of shares vested during the year (in millions) 49.9 46.4 58.7 53.3 61.6 54.9 Weighted average fair value of shares granted 125.16 161.63 190.33 130.77 187.98 206.90 A summary of the status of conditionally outstanding shares as of December 31, 2019 , and changes during the year ended December 31, 2019 , is presented below: EUR-denominated USD-denominated Number Weighted Number Weighted Conditional shares outstanding at January 1, 2019 720,827 120.73 661,182 146.78 Granted 315,578 190.33 255,885 206.90 Vested (304,322 ) 116.82 (282,971 ) 138.04 Forfeited (50,054 ) 96.74 (55,597 ) 138.43 Conditional shares outstanding at December 31, 2019 682,029 157.48 578,499 179.22 Option plans The grant-date fair value of stock options is estimated using a Black-Scholes option valuation model. This Black Scholes model requires the use of assumptions, including expected share price volatility, the estimated life of each award and the estimated dividend yield. The risk-free interest rate used in the model is determined, based on an index populated with euro denominated European government agency bond with high credit ratings and with a life equal to the expected life of the equity settled share-based payments. Our option plans typically vest over a 3 -year service period with any unexercised stock options expiring 10 years after the grant date. Options granted have fixed exercise prices equal to the closing price of our shares listed at Euronext Amsterdam on grant date. As of 2017 we no longer grant options to our employees and all options issued are vested. We therefore no longer disclose the assumptions of the options since there are no changes compared to the Integrated Report 2018. Issuance of shares upon exercising the stock options are deducted from the treasury shares. The purchase of shares against the exercise price is settled with the employees involved through deductions on their salary. Details with respect to stock options are set out in the following table: EUR-denominated USD-denominated Year ended December 31 2017 2018 2019 2017 2018 2019 Weighted average share price at the exercise date of stock options 132.67 169.68 201.52 148.48 201.01 225.70 Aggregate intrinsic value of stock options exercised (in millions) 12.5 13.6 4.3 4.8 7.6 2.3 Weighted average remaining contractual term of currently exercisable options (in years) 3.80 4.76 4.16 4.49 5.20 4.40 Aggregate intrinsic value of exercisable stock options (in millions) 21.0 8.9 17.7 13.1 5.2 11.8 Aggregate intrinsic value of outstanding stock options (in millions) 21.2 9.0 17.7 13.2 5.2 11.8 The number and weighted average exercise prices of stock options as of December 31, 2019 , and changes during the year then ended are presented below: EUR-denominated USD-denominated Number Weighted average Number Weighted average Outstanding, January 1, 2019 116,692 60.49 70,299 81.43 Granted — — — — Exercised (27,952 ) 46.90 (14,750 ) 72.86 Forfeited — — — — Expired — — — — Outstanding, December 31, 2019 88,740 64.80 55,549 83.71 Exercisable, December 31, 2019 88,740 64.80 55,549 83.71 Details with respect to the stock options outstanding are set out in the following table: EUR-denominated USD-denominated Range of € ) Number of outstanding options at December 31, 2019 Weighted Range of Number of outstanding options at December 31, 2019 Weighted 20 - 25 7,260 0.79 20 - 25 — 0.00 25 - 40 8,060 1.72 25 - 40 6,518 1.10 40 - 50 9,290 2.80 40 - 50 562 1.80 50 - 60 7,273 3.97 50 - 60 2,869 2.70 60 - 70 15,318 3.93 60 - 70 423 3.10 70 - 80 14,115 5.38 70 - 80 1,059 3.30 80 - 90 13,625 5.85 80 - 90 12,449 4.80 90 - 100 13,799 5.69 90 - 100 21,957 5.00 100 - 110 — 0.00 100 - 110 9,712 5.70 Total 88,740 4.16 Total 55,549 4.40 Employee purchase plan Every quarter, we offer our worldwide payroll employees the opportunity to buy our shares against fair value using their net salary. The Board of Management is excluded from participation in this plan. The fair value for shares is based on the closing price of our shares listed at Euronext Amsterdam on grant date. The maximum net amount for which employees can participate in the plan amounts to 10.0% of their annual gross base salary. When employees retain the shares for a minimum of 12 months , we will pay out a 20.0% cash bonus on the initial participation amount. |
Employee benefits Employee bene
Employee benefits Employee benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee benefits | Employee benefits Bonus plans We have a performance related short term incentive (STI) bonus plans for our employees. Under these plans, the amounts depend on company and / or individual performance. Within ASML, the STI for these employees (excluding the Board of Management) can range between 0% and 112.5% of their annual base salary, depending on the job levels and on which plan they are included. The performance targets are set for a whole year. The STI over 2019 is accrued for in the Consolidated Balance Sheets as part of the accrued and other liabilities as of December 31, 2019 and is expected to be paid in the first quarter of 2020 . STI expenses for the Board of Management and other employees were as follows: Year ended December 31 2017 2018 2019 (in millions) € € € Board of Management 1 3.8 4.5 5.1 Other employees 2 218.0 233.7 269.1 Total bonus expenses 221.8 238.2 274.2 1. Includes all members that served on the Board of Management throughout the year. 2. Includes all variations of available STI bonus plans of which employees are eligible. Deferred compensation plans In July 2002, we adopted a non-qualified deferred compensation plan for our US employees that allows a select group of management or highly compensated employees to defer a portion of their salary, bonus, and commissions. The plan allows us to credit additional amounts to the participants’ account balances. The participants divide their funds among the investments available in the plan. Participants elect to receive their funds in future periods after the earlier of their employment termination or their withdrawal election, at least 3 years after deferral. Expenses were close to nil relating to this plan in 2019 , 2018 and 2017 . Cymer has a similar non-qualified deferred compensation plan for a selected group of management level employees in the US in which the employee may elect to defer receipt of current compensation in order to provide retirement and other benefits on behalf of such employee backed by Cymer owned life insurance policies. As of December 31, 2019 , our liability under deferred compensation plans was €56.6 million ( 2018 : €46.8 million ) . The related compensation plan assets are €55.1 million ( 2018 : €43.1 million ). Pension plans Accounting policy Contributions to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions. Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution plans where our obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan. ASML accounts for its multi-employer defined benefit plan as if it were a defined contribution plan for the following reasons: • ASML is affiliated to an industry-wide pension fund and uses the pension scheme in common with other participating companies. • Under the regulations of the pension plan, the only obligation these participating companies have towards the pension fund is to pay the annual premium liability. Participating companies are under no obligation whatsoever to pay off any deficits the pension plan may incur. Nor have they any claim to any potential surpluses. We maintain one multi-employer union plan and various other pension plans (based on defined contribution) covering substantially all of our employees. Our pension and retirement expenses for all employees for the years ended December 31, 2019 , 2018 and 2017 were: Year ended December 31 2017 2018 2019 (in millions) € € € Pension plan based on multi-employer union plan 62.4 74.0 96.6 Pension plans based on defined contribution 38.4 48.0 55.9 Pension and retirement expenses 100.8 122.0 152.5 In accordance with the collective bargaining agreements effective for the industry in which we operate, which has no expiration date, there are 12,572 eligible employees in the Netherlands that participate in a multi-employer union plan. Our net periodic pension cost for this multi-employer union plan for any period is the amount of the required employer contribution for that period. This multi-employer union plan is managed by PME and covers approximately 1,400 companies and approximately 161,000 contributing members. Every company participating in the PME contributes a premium calculated as a percentage of its total pensionable salaries, with each company subject to the same contribution rate. Although the premium can fluctuate yearly based on the coverage ratio of the multi-employer union plan, for 2019 the contribution percentage is 22.7% (2018: 23.0% ). The pension rights of each employee are based upon the employee’s average salary during employment. For the year ended December 31, 2019 , our contribution to this multi-employer union plan (including premiums paid by employees), was 11.7% ( December 31, 2018 : 9.6% ) of the total contribution to the plan. For next year we expect to contribute around €175.0 million to this multi-employer union plan (including premiums paid by employees). The plan monitors its risks on a global basis, not by participating company or employee, and is subject to regulation by Dutch governmental authorities. By law (the Dutch Pension Act), a multi-employer union plan must be monitored against specific criteria, including the coverage ratio of the plan’s assets to its obligations. The coverage percentage is calculated by dividing the funds capital by the total sum of pension liabilities and is based on actual market interest rates. The coverage ratio as per December 31, 2019 is 98.7% (December 31, 2018 : 101.3% ) and is below the legally required minimum coverage ratio of 104% . PME has initiated a recovery plan to increase the coverage ratio to its legally required minimum level. Based on this plan it is estimated that the coverage ratio will increase to the legally required minimum coverage ratio as of 2028, which is within the legally required maximum recovery period of ten years. We have however no obligation to pay off any deficits the pension fund may incur, nor do we have any claim to any potential surpluses. We also participate in several other defined contribution pension plans (outside the Netherlands), with our expenses for these plans equaling the employer contributions made in the relevant period. |
Personnel expenses and employee
Personnel expenses and employee information | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Selected Operating Expenses and Additional Information | Personnel expenses and employee information Personnel expenses for all payroll employees were as follows: Year ended December 31 2017 2018 2019 (in millions) € € € Wages and salaries 1,492.8 1,777.9 2,124.4 Social security expenses 119.6 146.3 181.9 Pension and retirement expenses 100.8 122.0 152.5 Share-based payments 53.1 46.3 74.6 Personnel expenses 1,766.3 2,092.5 2,533.4 The average number of payroll employees in FTEs during 2019 , 2018 and 2017 was 22,192 , 18,204 and 15,136 , respectively. The average number of payroll employees in FTEs in our operations in the Netherlands during 2019 , 2018 and 2017 was 11,376 , 8,597 and 7,211 , respectively. Both increase s in 2019 compared to 2018 and in 2018 compared to 2017 in payroll employees in FTEs were in line with our business growth. In 2019 this increase was also the result of converting more temporary employees to payroll employees. The total number of payroll and temporary employees as of December 31 in FTEs per sector was: As of December 31 2017 2018 2019 (in FTE) Customer Support 5,051 5,674 5,953 Manufacturing and Supply Chain Management 4,909 5,779 5,933 Strategic Supply Management 203 267 326 General & Administrative 1,517 1,701 1,898 Sales and Mature Products and Services 184 559 624 Research & Development 7,352 9,267 10,166 Total 19,216 23,247 24,900 Less: Temporary employees 2,997 3,203 1,681 Payroll employees 16,219 20,044 23,219 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes Accounting Policy The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effect of incurred net operating losses and for tax consequences attributable to differences between the balance sheet carrying amounts of existing assets and liabilities and their respective tax bases. If it is more likely than not that the carrying amounts of deferred tax assets will not be realized, a valuation allowance is recorded for the differences. Tax expense includes current taxes on profit as well as actual or potential withholding taxes on current and expected income from group companies. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Operations in the period that includes the enactment date. We assess uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While we believe we have appropriate support for the positions taken on our tax returns, we regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes, and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. The components of the provision for income taxes are as follows: Year ended December 31 2017 1 2018 1 2019 (in millions) € € € Netherlands 2,076.6 2,602.0 2,441.2 Foreign 312.8 335.0 324.6 Income before taxes 2,389.4 2,937.0 2,765.8 Provision for income taxes current (349.3 ) (433.5 ) (305.5 ) Provision for income taxes deferred 61.9 9.7 74.8 Provision for income taxes Netherlands (287.4 ) (423.8 ) (230.7 ) Provision for income taxes current (35.3 ) (210.1 ) (118.4 ) Provision for income taxes deferred 16.6 282.3 157.4 Provision for income taxes Foreign (18.7 ) 72.2 39.0 Total provision for income taxes current (384.5 ) (643.5 ) (423.9 ) Total provision for income taxes deferred 78.5 291.9 232.2 Provision for income taxes (306.0 ) (351.6 ) (191.7 ) 1. In 2017 and 2018 , Provision for income taxes deferred included the tax expense related to changes in the uncertain tax positions, which has been corrected into Provision for income taxes current. The impact is a reclassification for 2018 of €57.0 million from Provision from income taxes deferred to Provision from income taxes current, which is split €50.4 million from Netherlands and €6.6 million from Foreign. The impact is a reclassification for 2017 of €17.5 million from Provision from income taxes deferred to Provision from income taxes current, which includes €6.3 million from Netherlands and €11.2 million from Foreign . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . The Dutch statutory tax rate was 25.0% in 2019 , 2018 and 2017 . Tax amounts in other jurisdictions are calculated at the rates prevailing in the relevant jurisdictions. The reconciliation of the provision for income taxes is as follows: Year ended December 31 2017 2018 2019 (in millions) € % 1 € % 1 € % 1 Income before income taxes 2,389.4 100.0 % 2,937.0 100.0 % 2,765.8 100.0 % Income tax provision based on ASML’s domestic rate (597.4 ) 25.0 % (734.3 ) 25.0 % (691.4 ) 25.0 % Effects of tax rates in foreign jurisdictions 21.0 (0.9 )% 15.4 (0.5 )% 5.0 (0.2 )% Adjustments in respect of tax exempt income 24.0 (1.0 )% 6.2 (0.2 )% 7.2 (0.3 )% Adjustments in respect of tax incentives 263.1 (11.0 )% 311.8 (10.6 )% 351.0 (12.7 )% Adjustments in respect of prior years’ current taxes (38.3 ) 1.6 % (1.2 ) — % 46.7 (1.7 )% Adjustments in respect of prior years’ deferred taxes 40.9 (1.7 )% 3.3 (0.1 )% 9.8 (0.4 )% Movements in the liability for unrecognized tax benefits (17.4 ) 0.7 % (57.2 ) 1.9 % (16.9 ) 0.6 % Tax effects in respect to HMI restructuring — — % 115.3 (3.9 )% 89.8 (3.2 )% Change in valuation allowance (11.9 ) 0.5 % (28.5 ) 1.0 % 7.6 (0.3 )% Equity method investments — — % (14.5 ) 0.5 % (19.7 ) 0.7 % Other (credits) and non tax deductible items 10.0 (0.4 )% 32.1 (1.1 )% 19.2 (0.7 )% Provision for income taxes (306.0 ) 12.8 % (351.6 ) 12.0 % (191.7 ) 6.9 % 1. As a percentage of income before income taxes. Income tax provision based on ASML’s domestic rate The provision for income taxes based on ASML’s domestic rate is based on the Dutch statutory income tax rate. It reflects the provision for income taxes that would have been applicable assuming that all of our income is taxable against the Dutch statutory tax rate and there are no permanent differences between taxable base and financial results and no Dutch tax incentives are applied. Effects of tax rates in foreign jurisdictions A portion of our results is realized in countries other than the Netherlands where different tax rates are applicable. The effect can differ from year to year depending on the profit before tax in foreign jurisdictions. Adjustments in respect of tax exempt income In certain jurisdictions part of the income generated is tax exempted. The higher effect in 2019 compared to 2018 is caused by a small increasing level of income reported at the level of ASML Hong Kong. Adjustments in respect of tax incentives Adjustments in respect of tax incentives mainly relates to a reduced tax rate as a result of application of the Dutch Innovation Box. The Innovation box is a facility under Dutch corporate tax law pursuant to which qualified income associated with R&D is subject to an effective tax rate of 7.0% . The innovation box benefit is determined according to Dutch laws and published tax policy, the application of which has been confirmed in an agreement among ASML and the Dutch tax authorities, which agreement applies for the years 2017 through 2023 assuming facts and circumstances do not change. Furthermore this category includes the benefit of US Tax Reform through the Foreign Derived Intangible Income (FDII) deduction at the level of our US group companies. The FDII deduction is a facility under US corporate tax law which reduces the effective tax rate on qualifying income. The higher effect in 2019 compared to 2018 is mainly caused by an increase in the FDII deduction in the US. Adjustments in respect of prior years’ current taxes The movements in the adjustments in respect of prior years ’ current taxes relate to differences between the initially estimated income taxes and final corporate income tax returns filed, which to a main extent are offset with corresponding adjustments in prior years' deferred taxes (movement in temporary differences). Other main driver for the 2019 movement is an increase in the FDII deduction as taken into account in our 2018 tax filing in the US. Adjustments in respect of prior years’ deferred taxes The movements in the adjustments in respect of prior years’ deferred taxes once again relate to differences between the initially estimated income taxes and final corporate income tax returns filed. Hereby the 2017 movement is explained by an agreement with the Dutch tax authorities to amortize certain IP over their useful life time rather than in the year of acquisition, which is mirrored in the adjustment in respect of 2017 prior years’ current taxes. The 2019 movement is mainly driven by the capitalization of R&D expenses for tax purposes in the US, which is mirrored by an adjustment in prior years' current taxes. Movements in the liability for unrecognized tax benefits In 2019, similar to prior years 2018 and 2017, the effective tax rate was impacted by movements in the liability for unrecognized tax benefits. Tax effects in respect to HMI restructuring The 2019 and 2018 tax effects are driven by an internal restructuring of our HMI group companies. As a result of this internal restructuring the deferred tax liabilities on intangible assets that were initially included in the business combination accounting for HMI have been released during 2018. Furthermore a deferred tax asset has been recognized in 2019 for book to tax differences on intangible fixed assets transferred as part of the internal restructuring. Change in valuation allowance The higher effect in 2019 compared to 2018 is mainly caused by a release of a valuation allowance as initially recorded for tax credits at the level our group companies in the US. Equity method investments This line includes the income tax expense relating to our equity investment in Carl Zeiss SMT Holding GmbH & Co. KG The higher effect in 2019 compared to 2018 is mainly caused by an increase of the profit before tax of the equity investment. Other credits and non-tax deductible items Other credits and non-tax deductible items reflect the impact on our statutory rates of permanent non-tax deductible items such as non-deductible interest expense, and non-deductible meals and entertainment expenses, as well as the impact of various tax credits on our provision for income taxes. US Tax Reform The 2017, 2018 and 2019 year-end tax positions calculated also reflect the regulations of US Tax Reform, thereby taking into account the most recent guidance issued by US government. In regard to GILTI and BEAT, an election has been made to treat this as a period permanent item. Income taxes recognized directly in shareholders’ equity Income taxes recognized directly in shareholders’ equity (including OCI) are as follows: Income tax recognized in shareholders’ equity 2017 2018 2019 (in millions) € € € Current tax OCI (financial instruments) (2.3 ) (1.4 ) (1.0 ) Tax benefit from share-based payments — — — Deferred tax OCI (equity method investments) — (0.9 ) (6.1 ) Total income tax recognized in shareholders’ equity (2.3 ) (2.3 ) (7.1 ) Liability for unrecognized tax benefits and deferred taxes The liability for unrecognized tax benefits ( including accrued interest and penalties) and total deferred tax position recorded on the Consolidated Balance Sheets is as follows: As of December 31 2018 2019 (in millions) € € Liability for unrecognized tax benefits (208.7 ) (227.1 ) Deferred tax position 193.8 438.0 Deferred and other tax assets (liabilities) (14.9 ) 210.9 Liability for unrecognized tax benefits We have operations in multiple jurisdictions, where we are subject to the application of complex tax laws. Application of these complex tax laws may lead to uncertainties on tax positions. We aim to resolve these uncertainties in discussions with the tax authorities. We reserve for unrecognized tax benefits in line with the requirements of ASC 740 , which requires us to estimate the potential outcome of any uncertain tax position. Our estimate for the potential outcome of any uncertain tax position is highly judgmental. We believe that we have adequately provided for uncertain tax positions. However, settlement of these uncertain tax positions in a manner inconsistent with our expectations could have a material impact on our Consolidated Financial Statements . Consistent with the requirements of ASC 740 , as of December 31, 2019 , the liability for unrecognized tax benefits including interest and penalties amounts to €227.1 million ( 2018 : €208.7 million ) which is classified as Deferred and other tax liabilities. If recognized, these tax benefits would affect our effective tax rate for approximately equal amounts. Expected interest and penalties related to income tax liabilities have been accrued for and are included in the liability for unrecognized tax benefits and in the provision for income taxes. The balance of accrued interest and penalties recorded in the Consolidated Balance Sheets as of December 31, 2019 amounts to €76.6 million ( 2018 : €68.5 million ). Accrued interest and penalties recorded in the Consolidated Statements of Operations of 2019 amount to €9.0 million ( 2018 : €32.6 million ; 2017 : €4.2 million ). A reconciliation of the beginning and ending balance of the liability for unrecognized tax benefits (excluding interest and penalties) is as follows: As of December 31 2018 2019 (in millions) € € Balance, January 1 (113.9 ) (140.4 ) Gross increases – tax positions in prior period (27.4 ) (21.3 ) Gross decreases – tax positions in prior period 10.3 2.2 Gross increases – tax positions in current period (21.9 ) (18.9 ) Acquisitions through business combinations — — Settlements — — Lapse of statute of limitations 13.9 28.7 Effect of changes in exchange rates (1.4 ) (1.0 ) Total liability for unrecognized tax benefits (140.4 ) (150.7 ) We conclude our allowances for tax contingencies to be appropriate. Based on the information currently available, we estimate that the liability for unrecognized tax benefits will decrease by €34.0 million (excluding interest and penalties) within the next 12 months , mainly as a result of expiration of statute of limitations. We file income tax returns with the Dutch tax authority, the U.S. federal government, various U.S. states, and various foreign jurisdictions throughout the world. Our Dutch tax returns are open to examination for the years 2014 to 2019. In addition our U.S. federal and state tax returns remain open to examination for the years 2015 through 2019. We are routinely subject to examinations and audits from tax and other authorities in the various jurisdictions in which we operate, including the US and the Netherlands. We are currently subject to an audit by Korean tax and customs authorities, the outcome of which we cannot predict at this time. We believe that adequate amounts of taxes and related interest and penalties have been provided for, and any adjustments as a result of examinations are not expected to have a material adverse effect. Deferred taxes The composition of total deferred tax assets and liabilities reconciled to the classification in the Consolidated Balance Sheets is as follows: Deferred taxes January 1, 2019 Other Consolidated Statements of Operations Effect of changes in exchange rates Income tax recognized in shareholders’ equity December 31, 2019 (in millions) € € € € € € Deferred tax assets: Capitalized R&D expenditures 1.7 — 189.0 2.2 — 192.9 R&D & other credits 70.5 — (11.1 ) 1.4 — 60.8 Inventories 52.9 — (0.2 ) (3.4 ) — 49.3 Deferred revenue 150.3 — (92.4 ) (1.1 ) — 56.8 Accrued and other liabilities 40.5 — 31.4 1.5 — 73.4 Installation and warranty reserve 13.3 — (1.3 ) 0.3 — 12.3 Tax effect carry-forward losses 8.5 — 3.4 0.6 — 12.5 Property, plant and equipment 19.4 — 9.0 4.4 — 32.8 Lease liabilities — — 8.1 — — 8.1 Intangible fixed assets 48.7 — 81.1 — — 129.8 Restructuring and impairment — — — — — — Alternative minimum tax credits — — — — — — Share-based payments 7.7 — 0.6 0.2 — 8.5 Other temporary differences 21.7 — (5.4 ) (2.1 ) 6.1 20.3 Total deferred tax assets, gross 435.2 — 212.2 4.0 6.1 657.5 Valuation allowance 1 (79.2 ) — 7.6 (2.0 ) — (73.6 ) Total deferred tax assets, net 356.0 — 219.8 2.0 6.1 583.9 Deferred tax liabilities: Intangible fixed assets (119.8 ) — 17.9 (2.3 ) — (104.2 ) Goodwill — — (6.6 ) — — (6.6 ) Right-of-use assets — — (8.1 ) — — (8.1 ) Property, plant and equipment (25.7 ) — 9.8 0.6 — (15.3 ) Deferred revenue (0.1 ) — (13.0 ) — — (13.1 ) Borrowing costs long-term debt (1.5 ) — — — — (1.5 ) Other temporary differences (15.1 ) 7.4 12.4 (1.8 ) — 2.9 Total deferred tax liabilities (162.2 ) 7.4 12.4 (3.5 ) — (145.9 ) Net deferred tax assets (liabilities) 193.8 7.4 232.2 (1.5 ) 6.1 438.0 Classified as: Deferred tax assets – non-current 236.3 445.3 Deferred tax liabilities – non-current (42.5 ) (7.3 ) Net deferred tax assets (liabilities) 193.8 438.0 1. The valuation allowance disclosed above relates to R&D credits and Tax effect carry-forward losses that may not be realized. Deferred taxes January 1, 2018 Effects of changes in accounting principles Consolidated Statements of Operations Effect of changes in exchange rates Income tax recognized in shareholders’ equity December 31, 2018 (in millions) € € € € € € Deferred tax assets: Capitalized R&D expenditures 3.2 — (1.6 ) 0.1 — 1.7 R&D & other credits 44.1 — 25.2 1.2 — 70.5 Inventories 46.5 — 4.6 1.8 — 52.9 Deferred revenue 21.0 — 128.7 0.6 — 150.3 Accrued and other liabilities 42.7 — (4.4 ) 2.2 — 40.5 Installation and warranty reserve 11.1 — 1.6 0.6 — 13.3 Tax effect carry-forward losses 5.7 — 2.8 — — 8.5 Property, plant and equipment 9.2 8.2 1.8 0.2 — 19.4 Intangible fixed assets — 51.7 (3.0 ) — — 48.7 Restructuring and impairment — — — — — — Alternative minimum tax credits 4.5 — (4.5 ) — — — Share-based payments 7.7 — (0.3 ) 0.3 — 7.7 Other temporary differences 20.1 2.6 (2.3 ) 0.4 0.9 21.7 Total deferred tax assets, gross 215.8 62.5 148.6 7.4 0.9 435.2 Valuation allowance 1 (49.5 ) — (28.5 ) (1.2 ) — (79.2 ) Total deferred tax assets, net 166.3 62.5 120.1 6.2 0.9 356.0 Deferred tax liabilities: Intangible fixed assets (265.1 ) — 149.7 (4.4 ) — (119.8 ) Property, plant and equipment (37.9 ) — 13.3 (1.1 ) — (25.7 ) Deferred revenue (13.2 ) — 13.1 — — (0.1 ) Borrowing costs (1.7 ) — 0.2 — — (1.5 ) Other temporary differences (9.0 ) — (4.5 ) (1.6 ) — (15.1 ) Total deferred tax liabilities (326.9 ) — 171.8 (7.1 ) — (162.2 ) Net deferred tax assets (liabilities) (160.6 ) 62.5 291.9 (0.9 ) 0.9 193.8 Classified as: Deferred tax assets – non-current 31.7 236.3 Deferred tax liabilities – non-current (192.3 ) (42.5 ) Net deferred tax assets (liabilities) (160.6 ) 193.8 1. The valuation allowance disclosed above relates to R&D credits and Tax effect carry-forward losses that may not be realized. Tax effect carry-forward losses and R&D credits The deferred tax assets from carry-forward losses and R&D credits recognized as per December 31, 2019 are almost fully reserved. R&D credits for the amount of €40.0 million have no expiration date. The remaining R&D credits of €20.8 million have an expiration date between 2022 and 2034 . The carry-forward losses of €106.4 million have an expiration date between 2021 and 2027 . Unrecognized Deferred Tax Liability Related to Investments in Foreign Subsidiaries In general, it is our practice and intention to reinvest the earnings of our non-Dutch subsidiaries in those operations and distribute only when necessary or opportune by law. The tax implications of distributions by such non-Dutch subsidiaries are dependent on local tax and accounting regulations applying at the moment of actual distribution. As these cannot practicably be determined as of December 31, 2019, no deferred tax liability has been recognized in respect of undistributed profit reserves of the foreign subsidiaries. As of December 31, 2019 the unrecognized temporary difference approximately amounts to €193.7 million . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ equity Share capital ASML’s authorized share capital amounts to €126.0 million and is divided into: • 700,000,000 Cumulative Preference Shares with a nominal value of €0.09 each. • 699,999,000 Ordinary Shares with a nominal value of €0.09 each. • 9,000 Ordinary Shares B with a nominal value of €0.01 each. As of December 31, 2019 , 425,659,704 ordinary shares with a nominal value of €0.09 each were issued and fully paid up; this includes 419,810,706 outstanding shares and 5,848,998 treasury shares. As of December 31, 2018 , 431,465,767 ordinary shares with a nominal value of €0.09 each were issued and fully paid up; this includes 421,097,729 outstanding shares and 10,368,038 treasury shares. As of December 31, 2017 , 431,464,705 ordinary shares with a nominal value of €0.09 each were issued and fully paid up; this includes 427,393,592 outstanding shares and 4,071,113 treasury shares. No ordinary shares B and no cumulative preference shares have been issued. Our Board of Management has the power to issue ordinary shares and cumulative preference shares insofar as the Board of Management has been authorized to do so by the General Meeting. The Board of Management requires approval of the Supervisory Board for such an issue. The authorization by the General Meeting can only be granted for a certain period not exceeding 5 years and may be extended for no longer than 5 years on each occasion. If the General Meeting has not authorized the Board of Management to issue shares, the General Meeting will be authorized to issue shares on the Board of Management’s proposal, provided that the Supervisory Board has approved such proposal. Ordinary shares An ordinary share entitles the holder thereof to cast nine votes at the General Meeting. Each ordinary share consists of 900 fractional shares. Fractional shares entitle the holder thereof to a fractional dividend, but do not entitle the holder thereof to voting rights. Only those persons who hold shares directly in the share register in the Netherlands, held by us at our address at 5504 DR Veldhoven, de Run 6501, the Netherlands, or in the New York share register, held by JP Morgan Chase Bank, N.A., P.O. Box 64506, St. Paul, MN 55164-0506, United States, can hold fractional shares. Those who hold ordinary shares through the deposit system under the Dutch Securities Bank Giro Transactions Act (‘Wet giraal effectenverkeer’; the Giro Act) maintained by the Dutch central securities depository Euroclear Nederland or through the Depository Trust Company cannot hold fractional shares. At our 2019 AGM, the Board of Management was authorized from April 24, 2019 through October 24, 2020, subject to the approval of the Supervisory Board, to issue shares and / or rights thereto representing up to a maximum of 5.0% of our issued share capital at April 24, 2019, plus an additional 5.0% of our issued share capital at April 24, 2019 that may be issued in connection with mergers, acquisitions and / or (strategic) alliances. Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, net of income taxes, from the proceeds. Holders of ASML’s ordinary shares have a preemptive right, in proportion to the aggregate nominal amount of the ordinary shares held by them. This preemptive right may be restricted or excluded. Holders of ordinary shares do not have preemptive right with respect to any ordinary shares issued for consideration other than cash or ordinary shares issued to employees. If authorized for this purpose by the General Meeting, the Board of Management has the power, subject to approval of the Supervisory Board, to restrict or exclude the preemptive rights of holders of ordinary shares. At our 2019 AGM, our shareholders authorized the Board of Management through October 24, 2020, subject to approval of the Supervisory Board, to restrict or exclude preemptive rights with respect to holders of ordinary shares up to a maximum of 10.0% of our issued share capital. We may repurchase our issued ordinary shares at any time, subject to compliance with the requirements of Dutch law and our Articles of Association. Any such repurchases are and remain subject to the approval of the Supervisory Board and the authorization by the General Meeting, which authorization may not be for more than 18 months. At the 2019 AGM, the Board of Management has been authorized, subject to Supervisory Board approval, to repurchase through October 24, 2020, up to a maximum of two times 10.0% of our issued share capital at April 24, 2019, at a price between the nominal value of the ordinary shares purchased and 110.0% of the market price of these securities on Euronext Amsterdam or NASDAQ. Ordinary shares B Our Articles of Association provide for 9,000 ordinary shares B with a nominal value of €0.01 . Each ordinary share B entitles the holder thereof to cast one vote at the General Meeting. No ordinary shares B have been issued. Cumulative preference shares In 1998, we granted the Preference Share Option to the Foundation. This option was amended and extended in 2003 and 2007. A third amendment to the option agreement between the Foundation and ASML became effective on January 1, 2009, to clarify the procedure for the repurchase and cancellation of the preference shares when issued. The nominal value of the cumulative preference shares amounts to €0.09 and the number of cumulative preference shares included in the authorized share capital is 700,000,000 . A cumulative preference share entitles the holder thereof to cast nine votes in the General Meeting. The Foundation may exercise the Preference Share Option in situations where, in the opinion of the Board of Directors of the Foundation, ASML’s interests, ASML’s business or the interests of ASML’s stakeholders are at stake. This may be the case if a public bid for ASML’s shares has been announced or has been made, or the justified expectation exists that such a bid will be made without any agreement having been reached in relation to such a bid with ASML. The same may apply if one shareholder, or more shareholders acting in concert, acquire or hold a substantial percentage of ASML’s issued ordinary shares without making an offer to acquire all outstanding shares or if, in the opinion of the Board of Directors of the Foundation, the (attempted) exercise of the voting rights by one shareholder or more shareholders, acting in concert, is materially in conflict with ASML’s interests, ASML’s business or ASML’s stakeholders. The objectives of the Foundation are to look after the interests of ASML and of the enterprises maintained by ASML and of the companies which are affiliated in a group with ASML, in such a way that the interests of ASML, of those enterprises and of all parties concerned are safeguarded in the best possible way, and influences in conflict with these interests which might affect the independence or the identity of ASML and those companies are deterred to the best of the Foundation’s ability, and everything related to the above or possibly conductive thereto. The Foundation seeks to realize its objects by the acquiring and holding of cumulative preference shares in the capital of ASML and by exercising the rights attached to these shares, particularly the voting rights attached to these shares. The Preference Share Option gives the Foundation the right to acquire a number of cumulative preference shares as the Foundation will require, provided that the aggregate nominal value of such number of cumulative preference shares shall not exceed the aggregate nominal value of the ordinary shares that have been issued at the time of exercise of the Preference Share Option for a subscription price equal to their nominal value. Only one-fourth of the subscription price would be payable at the time of initial issuance of the cumulative preference shares, with the other three-fourths of the nominal value only being payable when we call up this amount. Exercise of the Preference Share Option could effectively dilute the voting power of the outstanding ordinary shares by one-half. Cancellation and repayment of the issued cumulative preference shares by ASML requires the authorization by the General Meeting of a proposal to do so by the Board of Management approved by the Supervisory Board. If the Preference Share Option is exercised and as a result cumulative preference shares are issued, ASML, at the request of the Foundation, will initiate the repurchase or cancellation of all cumulative preference shares held by the Foundation. In that case ASML is obliged to effect the repurchase and cancellation respectively as soon as possible. A cancellation will result in a repayment of the amount paid and exemption from the obligation to pay up on the cumulative preference shares. A repurchase of the cumulative preference shares can only take place when such shares are fully paid up. If the Foundation does not request ASML to repurchase or cancel all cumulative preference shares held by the Foundation within 20 months after issuance of these shares, we will be obliged to convene a General Meeting in order to decide on a repurchase or cancellation of these shares. The Foundation is independent of ASML. The Board of Directors of the Foundation comprises four independent members from the Netherlands’ business and academic communities. The current members of the Foundation’s Board of Directors are: Mr A.P.M. van der Poel, Mr S. Perrick, Mr J.M. de Jong and Mr A.H. Lundqvist. Dividend policy ASML aims to distribute a dividend that will be growing over time, paid semi-annually. On an annual basis, the Board of Management, upon prior approval from the Supervisory Board, submits a proposal to the AGM with respect to the amount of dividend to be declared with respect to the prior year, taking into account any interim dividend distributions. The dividend proposal and amount of share buybacks in any given year will be subject to the availability of distributable profits, retained earnings and cash, and may be affected by, among other factors, the Board of Management’s views on our potential future liquidity requirements, including for investments in production capacity and working capital requirements, the funding of our R&D programs and for acquisition opportunities that may arise from time to time, and by future changes in applicable income tax and corporate laws. We may also suspend buyback programs from time to time, which would reduce the amount of cash we are able to return to shareholders. Accordingly, the Board of Management may decide to propose not to pay a dividend or pay a lower dividend and may suspend, adjust the amount of or discontinue share buyback programs or we may otherwise fail to complete buyback programs. For 2019 , the proposal to declare a final dividend of €1.35 per ordinary share of €0.09 nominal value will be submitted to the 2020 AGM. Supported by our long-term business plan, we will submit a proposal at the 2020 Annual General Meeting to declare a total dividend for 2019 of €2.40 per ordinary share. Recognizing the interim dividend of €1.05 per share paid November 15, 2019 , this leads to a final dividend of €1.35 per share. The total dividend for 2018 was €2.10 per share. Dividends on ordinary shares are payable out of net income or retained earnings as shown in our Financial Statements as adopted by our AGM, after payment first of (accumulated) dividends out of net income on any issued cumulative preference shares. Purchase of equity securities In addition to dividend payments, we intend to return cash to our shareholders on a regular basis through share buybacks or capital repayment, subject to our actual and anticipated level of liquidity requirements and other relevant factors. On January 17, 2018 , we announced a share buyback program amounting to €2.5 billion , to be executed within the 2018-2019 time frame. The shares to be repurchased under this program were intended to be canceled, with the exception of up to 2.4 million shares, which would be used to cover employee share plans. In 2018, we repurchased 2,400,000 shares to cover employee share plans and 4,644,389 shares for cancellation for a total consideration of €1,146.2 million . No shares were canceled in 2018 . In January 2019, 5,806,366 ordinary shares were canceled , of which 3,468,737 shares were repurchased under the 2016-2017 program. In 2019 , we repurchased 1,948,808 shares for cancellation for a total consideration of 410.0 million . The total number of repurchased shares under the 2018-2019 program was 8,993,197 shares for a total amount of €1,556.1 million and therefore the 2018-2019 program was not completed for the full amount. The remainder of the shares bought back under the 2018-2019 program is intended to be canceled in 2020 , with the exception of up to 2.4 million shares, which were used to cover employee share plans. The share buyback program may be suspended, modified or discontinued at any time. The following table provides a summary of shares repurchased by ASML in 2019 : Period Total number of shares purchased Average price paid per Share € ) Total number of shares purchased as part of publicly announced plans or programs Maximum value of shares that may yet be purchased under the program € millions) January 24 - 31, 2019 47,400 151.63 47,400 1,346.7 February 1 - 28, 2019 145,001 160.67 192,401 1,323.4 March 1 - 31, 2019 150,956 163.68 343,357 1,298.7 April 1 - 30, 2019 83,791 176.71 427,148 1,283.9 May 1 - 31, 2019 — — 427,148 1,283.9 June 1 - 30, 2019 — — 427,148 1,283.9 July 1 - 31, 2019 145,094 204.60 572,242 1,254.2 August 1 - 31, 2019 336,141 194.30 908,383 1,188.9 September 1 - 30, 2019 284,335 219.26 1,192,718 1,126.5 October 1 - 31, 2019 293,486 230.89 1,486,204 1,058.8 November 1 - 30, 2019 274,093 244.52 1,760,297 991.7 December 1 - 20, 2019 188,511 253.95 1,948,808 943.9 Total 1,948,808 210.38 |
Net Income per Ordinary Share (
Net Income per Ordinary Share (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Net Income per Ordinary Share [Abstract] | |
Earnings Per Share [Text Block] | Net income per ordinary share Basic net income per ordinary share is calculated by: • Dividing net income by the weighted average number of ordinary shares outstanding for that period; The dilutive effect is calculated using the treasury stock method by: • Dividing net income by the weighted average number of ordinary shares outstanding for that period plus shares applicable to options and conditional shares Excluded from the diluted weighted average number of shares outstanding calculation are cumulative preference shares contingently issuable to the preference share foundation, since they represent a different class of stock than the ordinary shares. The basic and diluted net income per ordinary share has been calculated as follows: Year ended December 31 2017 2018 2019 (in millions, except per share data) € € € Net income 2,066.7 2,591.6 2,592.3 Weighted average number of shares outstanding 429.8 424.9 420.8 Basic net income per ordinary share 4.81 6.10 6.16 Weighted average number of shares outstanding 429.8 424.9 420.8 Plus shares applicable to Options and conditional shares 1.8 1.5 0.9 Dilutive potential ordinary shares 1.8 1.5 0.9 Diluted weighted average number of shares 431.6 426.4 421.6 Diluted net income per ordinary share 1 4.79 6.08 6.15 1. The calculation of diluted net income per ordinary share assumes the exercise of options issued under our stock option plans and the issuance of shares under our share plans for periods in which exercises or issuances would have a dilutive effect. The calculation of diluted net income per ordinary share does not assume exercise of options when exercise would be anti-dilutive. |
Vulnerability Due to Certain Co
Vulnerability Due to Certain Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Vulnerability Due to Certain Concentrations | Vulnerability due to certain concentrations We rely on outside vendors for components and subassemblies used in our systems including the design thereof, each of which is obtained from a single supplier or a limited number of suppliers. Our reliance on a limited group of suppliers involves several risks, including a potential inability to obtain an adequate supply of required components, reduced control over pricing and the risk of untimely delivery of these components and subassemblies. Carl Zeiss SMT GmbH, in which ASML owns an indirect interest of 24.9% , is our single supplier, and we are their single customer, of Optical Columns for lithography systems. Carl Zeiss SMT GmbH is capable of developing and producing these items only in limited numbers and only through the use of manufacturing and testing facilities in Oberkochen and Wetzlar, Germany. In 2019 , 28.3% of our aggregate cost of system sales was purchased from Carl Zeiss SMT GmbH ( 2018 : 28.3% ; 2017 : 26.6% ). Our relationship with Carl Zeiss AG is structured as a strategic alliance pursuant to several agreements executed in 1997 and subsequent years. These agreements define a framework in all areas of our business relationship. The partnership between ASML and Carl Zeiss AG is run under the principle of ‘two companies, one business’ and is focused on continuous improvement of operational excellence. Pursuant to these agreements, ASML and Carl Zeiss AG have agreed to continue their strategic alliance until either party provides at least three years notice of its intent to terminate. A constraint in the production could result in limited availability of Optical Columns. During 2019 , our production was not limited by the deliveries from Carl Zeiss SMT GmbH. For further information on the relationship between ASML and Carl Zeiss SMT GmbH, see Note 9 Equity method investments and Note 25 Related party transactions . |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Risk Management | Financial risk management Risk management program We are exposed to certain financial risks such as foreign currency risk, interest rate risk, credit risk, liquidity risk and capital risk. Our overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potentially adverse effects on our financial performance. Our risk management program focuses appropriately on the current environment of uncertainty in the financial markets. A key element within our risk management program is our long held conservative financing policy, which is based on three foundational elements: • Liquidity: Maintain financial stability with a target to keep our Cash & cash equivalents, together with Short-term investments, above a minimum range of €2.0 to €2.5 billion • Capital structure: Maintain a capital structure that targets a solid investment grade credit rating • Cash return: Provide a sustainable dividend per share that will grow over time, paid semi-annually, while returning structural excess cash to shareholders on a regular basis through share buybacks or capital repayment We use derivative financial instruments to hedge certain risk exposures. None of these transactions are entered into for trading or speculative purposes. We believe that market information is the most reliable and transparent measure for our derivative financial instruments that are measured at fair value. Foreign currency risk management We are exposed to currency risks. Our Financial Statements are expressed in euros. Accordingly, our results of operations are exposed to fluctuations in exchange rates between the euro and such other currencies, and changes in currency exchange rates can result in losses in our Financial Statements. We are particularly exposed to fluctuations in the exchange rates between the US dollar and the euro, and to a lesser extent to the Japanese yen, the Korean won and the Taiwanese dollar in relation to the euro. We incur costs of sales predominantly in euros with portions also denominated in US and Taiwanese dollars. A small portion of our operating results are driven by movements in currencies other than the euro, yen, US dollar or Taiwanese dollar. Foreign currency sensitivity We are mainly exposed to fluctuations in exchange rates between the euro and the US dollar, the euro and Taiwanese dollar and the euro and the Japanese yen. The following table details our sensitivity to a 10.0% strengthening of foreign currencies against the euro. The sensitivity analysis includes foreign currency denominated monetary items outstanding and adjusts their translation at the period end for a 10.0% strengthening in foreign currency rates. A positive amount indicates an increase in net income or equity, as shown. The following table represent the foreign currency sensitivity on net income and equity: 2018 2019 (in millions) Impact on net income € Impact on equity € Impact on net income € Impact on equity € US dollar (8.7 ) 28.2 (11.5 ) 30.2 Japanese yen (1.7 ) (4.0 ) 4.2 (0.9 ) Taiwanese dollar (6.5 ) (12.7 ) (6.2 ) — Other currencies (5.9 ) — (4.0 ) — Total (22.8 ) 11.5 (17.5 ) 29.3 It is our policy to limit the effects of currency exchange rate fluctuations on our Consolidated Statements of Operations . The decreased effect on net income in 2019 compared with 2018 reflects our lower net exposure to currencies other than the euro at year-end 2019 . The negative effect on net income as presented in the table above for 2019 is mainly attributable to timing differences between the arising and hedging of exposures. The effects of the fair value movements of cash flow hedges, entered into for US dollar and Japanese yen transactions are recognized in equity. The US dollar and Japanese yen effect on equity in 2019 compared with 2018 is the result of an increase in outstanding purchase hedges and decrease in outstanding sales hedges. The effects of the fair value movements of net investment hedges, entered into for Taiwanese dollar transactions are recognized in equity in 2018. This effect is offset by the translation adjustment on the net investment also recorded in equity. This offset is not included in the table above. For a 10.0% weakening of the foreign currencies against the euro, there would be approximately an equal but opposite effect on net income and equity. Foreign currency risk policy It is our policy to hedge material transaction exposures, such as forecasted sales and purchase transactions, and material net remeasurement exposures, such as accounts receivable and payable. We hedge these exposures through the use of foreign exchange contracts. Foreign exchange contracts The notional principal amounts of the outstanding forward foreign exchange contracts in the main currencies US dollar, Japanese yen and Taiwanese dollar at December 31, 2019 are USD 219.5 million , JPY 8.6 billion and TWD 3.8 billion ( 2018 : USD 348.6 million , JPY 6.0 billion and TWD 8.8 billion ). The hedged highly probable forecasted transactions denominated in foreign currency are expected to occur at various dates during the coming 12 months . Gains and losses recognized in OCI on forward foreign exchange contracts included in a hedge relationship will be recognized in the Consolidated Statements of Operations in the period during which the hedged forecasted transactions affect the Consolidated Statements of Operations . In 2019 , we recognized a net amount of €10.7 million gain ( 2018 : €11.8 million loss ; 2017 : €3.1 million gain ) in the Consolidated Statements of Operations resulting from effective cash flow hedges for forecasted sales and purchase transactions that occurred in the year. Furthermore, we recognized a net amount of €12.0 million loss in the Consolidated Statements of Operations resulting from derivative financial instruments measured at fair value through profit or loss ( 2018 : €24.2 million gain ; 2017 : €126.4 million gain ), which is almost fully offset by the revaluation of the hedged monetary items. As of December 31, 2019 , accumulated OCI includes €2.1 million representing the total anticipated gain to be released to cost of sales ( 2018 : gain €10.9 million and 2017 : loss €12.5 million ) (net of taxes: 2019 : gain €1.8 million ; 2018 : gain €9.7 million ; 2017 : loss €11.2 million ), which will offset the euro equivalent of foreign currency denominated forecasted purchase transactions. All amounts are expected to be released over the next 12 months . As of December 31, 2019 , accumulated OCI includes loss €1.2 million ( 2018 : loss €1.4 million ; 2017 : nil ), representing the total anticipated gain to be released to sales. The effectiveness of all contracts for which we apply hedge accounting is monitored on a quarterly basis throughout the life of the hedges. During 2019 , 2018 and 2017 , no ineffective hedge relationships were recognized. As of December 31, 2019 , €0.0 million ( 2018 : loss €11.9 million ) representing the effective portion of hedges on net investments was recognized in accumulated OCI. Interest rate risk management We have interest-bearing assets and liabilities that expose us to fluctuations in market interest rates. We use interest rate swaps to align the interest-typical terms of interest-bearing liabilities with the interest-typical terms of interest-bearing assets. There may be residual interest rate risk to the extent the asset and liability positions do not fully offset. Interest rate sensitivity The sensitivity analysis below has been determined based on the exposure to interest rates for both derivative financial and non-derivative financial instruments at the balance sheet date with the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. The table below shows the effect of a 1.0 percentage point increase in interest rates on our net income and equity. A positive amount indicates an increase in net income and equity. The following table represent the interest rate sensitivity on net income and equity: 2018 2019 (in millions) Impact on net income € Impact on equity € Impact on net income € Impact on equity € Effect of a 1.0% point increase in interest rates 10.3 — 17.2 — The positive effect on net income mainly relates to our total amount of cash and cash equivalents and short-term investments being higher than our total floating debt position. For a 1.0 percentage point decrease in interest rates there would be approximately an equal but opposite effect on net income and equity. Hedging policy interest rates As part of our hedging policy, we use interest rate swaps to hedge changes in fair value of our Eurobonds due to changes in market interest rates, thereby offsetting the variability of future interest receipts on part of our cash and cash equivalents. During 2019 , these hedges were highly effective in hedging the fair value exposure to interest rate movements. The changes in fair value of the Eurobonds were included in the Consolidated Statements of Operations in the same period as the changes in the fair value of the interest rate swaps. Furthermore, as part of our hedging policy, we use interest rate swaps to hedge the variability of future interest cash flows relating to certain of our operating lease obligations. In June 2018, these interest rate swaps matured together with the related operating lease obligation. Over the lifetime of the hedge relationship the hedge was highly effective in hedging the cash flow exposure to interest rate movements. Interest rate swaps The notional principal amount of the outstanding interest rate swap contracts as of December 31, 2019 was €3.0 billion ( 2018 : €3.0 billion ). Credit risk management Financial instruments that potentially subject us to significant concentration of credit risk consist principally of cash and cash equivalents, short-term investments, derivative financial instruments used for hedging activities, accounts receivable and finance receivables and prepayments to suppliers. Cash and cash equivalents, short-term investments and derivative financial instruments contain an element of risk of the counterparties being unable to meet their obligations. Our risk management program focuses appropriately on the current environment of uncertainty in the financial markets. We invest our cash and cash equivalents and short-term investments in short-term deposits with financial institutions that have investment grade credit ratings and in money market and other investment funds that invest in high-rated debt securities. To mitigate the risk that our counterparties in hedging transactions are unable to meet their obligations, we enter into transactions with a limited number of major financial institutions that have investment grade credit ratings and closely monitor their creditworthiness. Concentration risk is mitigated by limiting the exposure to each of the individual counterparties. Our customers consist of IC manufacturers located throughout the world. We perform ongoing credit evaluations of our customers’ financial condition. We mitigate credit risk through additional measures, including the use of down payments, letters of credit, and contractual ownership retention provisions. Retention of ownership enables us to recover the systems in the event a customer defaults on payment. Liquidity risk management Our principal sources of liquidity consist of Cash and cash equivalents, Short-term investments and available credit facilities with a target to keep our Cash & cash equivalents, together with Short-term investments, above a minimum range of €2.0 to €2.5 billion . In addition, we may from time to time raise additional funding in debt and equity markets. We seek to ensure that our principal sources of liquidity will be sufficient to satisfy our liquidity requirements at all times. Our liquidity needs are affected by many factors, some of which are based on the normal on-going operations of the business, and others that relate to the uncertainties of the global economy and the semiconductor industry. Although our cash requirements fluctuate based on the timing and extent of these factors, we believe that cash generated from operations, together with our other sources of liquidity are sufficient to satisfy our current requirements, including our expected capital expenditures and debt servicing. We invest our cash and cash equivalents and short-term investments in short-term deposits with financial institutions that have investment grade credit ratings and in money market and other investment funds that invest in high-rated short and medium-term debt securities. Our investments are mainly denominated in euros and to some extent in US dollars and Taiwanese dollars. We intend to return cash to our shareholders on a regular basis in the form of dividend payments and, subject to our actual and anticipated liquidity requirements and other relevant factors, share buybacks or capital repayments. Capital risk management Our objectives when managing our capital structure are to safeguard our ability to satisfy our capital providers by maintaining a capital structure that ensures liquidity and supports a solid investment grade credit rating. The capital structure includes both debt and the components of equity, in accordance with both US GAAP and IFRS. The capital structure is mainly altered by, among other things, adjusting the amount of dividends paid to shareholders, the amount of share buybacks or capital repayment, and any changes in the level of debt. Our capital structure is formally reviewed with the Supervisory Board each year in connection with our updated long term financial plan and relevant scenarios. The outcome of this year’s review confirmed to maintain our historical financing policy in relation to our capital structure. Our current credit rating from Moody’s is A3 (stable) and from Fitch is A- (stable), which is consistent with the credit ratings as of December 31, 2018 . Financial instruments Accounting Policy Derivative financial instruments and hedging activities We use derivative financial instruments for the management of foreign currency risks and interest rate risks. We measure all derivative financial instruments based on fair values derived from market prices of the instruments. We adopt hedge accounting for hedges that are highly effective in offsetting the identified hedged risks taking into account required effectiveness criteria. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and subsequently remeasured. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. We designate derivatives as one of the following: • A hedge of an exposure relating to changes in the fair value of a recognized asset or liability, that is attributable to a particular risk (fair value hedge). • A hedge of an exposure relating to the variability in the cash flows of a recognized asset or liability, or of a forecasted transaction, that is attributable to a particular risk (cash flow hedge). • A hedge of the foreign currency exposure relating to a net investment in a foreign operation (net investment hedge). We document at the inception of the transaction the relationship between hedging instruments and hedged items, as well as our risk management objectives and strategy for undertaking various hedging transactions. We also document, both at hedge inception and on an ongoing basis, whether derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. The cash flows resulting from the derivative financial instruments are classified in the Consolidated Statements of Cash Flows according to the nature of the hedged item. Fair value hedge Changes in the fair value of a derivative financial instrument, that is designated and qualified as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in the Consolidated Statements of Operations. Hedge accounting is discontinued when we revoke the hedging relationship, the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. The adjustment to the carrying amount of the hedged item arising from the hedged risk is amortized to the Consolidated Statements of Operations from that date. Interest rate swaps that are being used to hedge the fair value of fixed loan coupons payable are designated as fair value hedges. The change in fair value is intended to offset the change in the fair value of the underlying fixed loan coupons, which is recorded accordingly. The gain or loss relating to the ineffective portion of interest rate swaps hedging fixed loan coupons payable is recognized in the Consolidated Statements of Operations as interest and other, net. Cash flow hedge Changes in the fair value of a derivative that is designated and qualified as a cash flow hedge are recorded in OCI, net of taxes, until the underlying hedged transaction is recognized in the Consolidated Statements of Operations. In the event that the underlying hedge transaction will not occur within the specified time period, the gain or loss on the related cash flow hedge is released from OCI and included in the Consolidated Statements of Operations, unless extenuating circumstances exist that are related to the nature of the forecasted transaction and are outside our control or influence and which cause the forecasted transaction to be probable of occurring on a date that is beyond the specified time period. Foreign currency hedging instruments that are being used to hedge cash flows related to forecasted sales or purchase transactions in non-functional currencies are designated as cash flow hedges. The gain or loss relating to the ineffective portion of the foreign currency hedging instruments is recognized in the Consolidated Statements of Operations in net sales or cost of sales. Fair values of the derivatives The following table summarizes the notional amounts and estimated fair values of our derivative financial instruments: As of December 31 2018 2019 (in millions) Notional Fair Value Notional Fair Value Forward foreign exchange contracts 134.1 (2.0 ) 142.6 (0.7 ) Interest rate swaps 3,000.0 56.5 3,000.0 134.3 The following table summarizes our derivative financial instruments per category: As of December 31 2018 2019 (in millions) Assets Liabilities Assets Liabilities Interest rate swaps — cash flow hedges — — — — Interest rate swaps — fair value hedges 88.5 32.0 134.3 — Forward foreign exchange contracts — cash flow hedges 6.5 0.9 2.4 0.6 Forward foreign exchange contracts — net investment hedge — 2.6 — — Forward foreign exchange contracts — no hedge accounting 6.9 11.9 0.8 3.3 Total 101.9 47.4 137.5 3.9 Less non-current portion: Interest rate swaps — fair value hedges 59.7 32.0 103.0 — Total non-current portion 59.7 32.0 103.0 — Total current portion 42.2 15.4 34.5 3.9 The fair value part of a hedging derivative financial instrument that has a remaining term of 12 months or less after balance sheet date is classified as current asset or liability. When the fair value part of a hedging derivative has a term of more than 12 months after balance sheet date, it is classified as non-current asset or liability. The current portion of derivative financial instruments is included in other current assets and current accrued and other liabilities in the Consolidated Balance Sheets . The non-current portion of derivative financial instruments is included in other non-current assets and non-current accrued and other liabilities in the Consolidated Balance Sheets . Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement hierarchy prioritizes the inputs to valuation techniques used to measure fair value as follows: • Level 1: Valuations based on inputs such as quoted prices for identical assets or liabilities in active markets that the entity has the ability to access. • Level 2: Valuations based on inputs other than level 1 inputs such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. • Level 3: Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s fair value classification is based on the lowest level of any input that is significant in the fair value measurement hierarchy. Financial assets and financial liabilities measured at fair value on a recurring basis Investments in money market funds (as part of our cash and cash equivalents) have fair value measurements which are all based on quoted prices for identical assets or liabilities. Our short-term investments consist of deposits with original maturities to the entity holding the investments longer than 3 months and less than one year at the date of acquisition with financial institutions that have investment grade credit ratings. The fair value of the deposits is determined with reference to quoted market prices in an active market for similar assets or discounted cash flow analysis. The principal market in which we execute our derivative contracts is the institutional market in an over-the-counter environment with a high level of price transparency. The market participants usually are large commercial banks. The valuation inputs for our derivative contracts are based on quoted prices and quoting pricing intervals from public data sources; they do not involve management judgment. The valuation technique used to determine the fair value of forward foreign exchange contracts (used for hedging purposes) approximates the net present value technique which is the estimated amount that a bank would receive or pay to terminate the forward foreign exchange contracts at the reporting date, taking into account current interest rates and current exchange rates. The valuation technique used to determine the fair value of interest rate swaps (used for hedging purposes) is the net present value technique, which is the estimated amount that a bank would receive or pay to terminate the swap agreements at the reporting date, taking into account current interest rates. Our Eurobonds serve as hedged items in fair value hedge relationships in which we hedge the variability of changes in the fair value of our Eurobonds due to changes in market interest rates with interest rate swaps. The fair value changes of these interest rate swaps are recorded on the Consolidated Balance Sheets under derivative financial instruments (within other current and non-current assets and other current and non-current liabilities) and the carrying amounts of the Eurobonds are adjusted for the effective portion of these fair value changes only. For the actual aggregate carrying amount and the fair value of our Eurobonds, see Note 15 Long-term debt and interest and other costs . The following tables present our financial assets and financial liabilities that are measured at fair value on a recurring basis: As of December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) € € € € Assets measured at fair value Derivative financial instruments 1 — 137.5 — 137.5 Money market funds 2 2,139.7 — — 2,139.7 Short-term investments 3 — 1,185.8 — 1,185.8 Total 2,139.7 1,323.3 — 3,463.0 Liabilities measured at fair value Derivative financial instruments 1 — 3.9 — 3.9 Assets and Liabilities for which fair values are disclosed Long-term debt 4 3,247.7 — — 3,247.7 1. Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps. 2. Money market funds are part of our cash and cash equivalents. See Note 4 Cash and cash equivalents and short-term investments . 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . 4. Long-term debt relates to Eurobonds. See Note 15 Long-term debt and interest and other costs . As of December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) € € € € Assets measured at fair value Derivative financial instruments 1 — 101.9 — 101.9 Money market funds 2 2,342.6 — — 2,342.6 Short-term investments 3 — 913.3 — 913.3 Total 2,342.6 1,015.2 — 3,357.8 Liabilities measured at fair value Derivative financial instruments 1 — 47.4 — 47.4 Assets and Liabilities for which fair values are disclosed Long-term debt 4 3,119.4 — — 3,119.4 1. Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps. 2. Money market funds are part of our cash and cash equivalents. See Note 4 Cash and cash equivalents and short-term investments . 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . 4. Long-term debt relates to Eurobonds. See Note 15 Long-term debt and interest and other costs . There were no transfers between levels during the years ended December 31, 2019 and December 31, 2018 . Financial assets and financial liabilities that are not measured at fair value The carrying amount of cash and cash equivalents, accounts payable, and other current financial assets and liabilities approximate their fair value because of the short-term nature of these instruments. Money market and investment funds measurement The money market and investment funds qualify as available for sale securities. The fair value is close to the carrying value due to short term nature and since related to investment with investment grade credit ratings. Allowances for credit losses and total unrealized gains and losses are close to nil. These money market funds can be called on a daily basis. Investments in money market funds are managed on a daily basis based triggered through excess cash balances. Realized gain and losses on these money market funds are close to nil given low interest rates and high credit ratings. Costs of securities were close to nil. ASML does not have trading securities as of December 31, 2019 . Deposits measurement The deposits as part of the short term investments and cash and cash equivalents qualify as securities held to maturity. The amortized cost value is close to the fair value and carrying value due to short term nature and since related to investment with investment grade credit ratings. Allowance for credit losses and total unrealized gains and losses are close to nil. Maturities are shorter than one year. No held to maturity securities were sold before expiration date. Assets and liabilities measured at fair value on a non-recurring basis In 2018 and 2019 , we had no significant fair value measurements on a non-recurring basis. We did no t recognize any impairment charges for goodwill and other intangible assets during 2018 and 2019 . See Note 10 Goodwill and Note 11 Other intangible assets, net for more information. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related party transactions On June 29, 2017 , we acquired of a 24.9% interest in Carl Zeiss SMT Holding GmbH & Co. KG, which owns 100% of the shares in Carl Zeiss SMT GmbH , to strengthen the long-standing and successful partnership and to facilitate the development of the future generation of EUV lithography systems. Based on the 24.9% investment and our relationship with Carl Zeiss SMT GmbH being our single supplier of optical columns essential to our chip-making systems, Carl Zeiss SMT Holding GmbH & Co. KG and its subsidiaries are considered related parties of ASML as of June 29, 2017 . On November 3, 2016 we agreed with Carl Zeiss SMT GmbH to support their R&D costs, capital expenditures and supply chain investments, in respect of High NA, for an amount initially estimated at €760.0 million . The current estimate as of December 31, 2019 is €1,242.2 million (2018: €1,229.9 million ) . As of December 31, 2019 our estimated remaining commitment to Carl Zeiss SMT GmbH is €524.8 million ( 2018 : €795.3 million ). The table below summarizes support provided to Carl Zeiss SMT GmbH, by type: For the year ended 2017 2018 2019 (in millions) € € € Capital expenditures 89.1 191.8 184.1 R&D costs 55.8 74.8 94.2 Supply chain investments 2.6 8.5 4.5 Total support provided 147.5 275.1 282.8 From time to time, ASML makes non-interest bearing advance payments to Carl Zeiss SMT GmbH supporting their work-in-process, thereby securing lens and optical column deliveries to us. Amounts included in these advance payments are settled through future lens or optical column deliveries. The increase in this balance is due to our continued growth within our EUV business, as well as the support provided under the High-NA agreement. For more details, see Note 9 Equity method investments . In 2018, ASML and Carl Zeiss SMT GmbH entered into an agreement for ASML to support the development and integration of certain tooling to be used in future production of High NA optical columns, for which Carl Zeiss SMT GmbH has agreed to reimburse all costs to ASML. Receivable amounts from Carl Zeiss SMT GmbH are presented within Other Assets. The total purchases and outstanding balances with Carl Zeiss SMT Holding GmbH & Co. KG and its subsidiaries: Year ended December 31 2017 2018 2019 (in millions) € € € Total purchases 1,141.6 1,401.0 1,502.3 As of December 31 2018 2019 (in millions) € € Advance payments and High-NA capital expenditure support 768.1 814.5 Right-of-use assets - Finance — 107.6 Accounts payable 60.2 127.4 For more details in relation to our 24.9% interest in Carl Zeiss SMT Holding GmbH & Co. KG see Note 9 Equity method investments . There have been no transactions during our most recent fiscal year , and there are currently no transactions, between ASML or any of its subsidiaries, and any other significant shareholder, and any director or officer or any relative or spouse thereof other than ordinary course (compensation) arrangements. During our most recent fiscal year , there has been no, and at present there is no, outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof , other than the virtual financing arrangement with respect to shares described under Note 18 Employee benefits . Furthermore, ASML has not granted any personal loans, guarantees, or the like to members of the Board of Management or Supervisory Board. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events Subsequent events were evaluated up to February 11, 2020 , which is the date the Financial Statements included in this Integrated Report were approved. There are no events to report. |
General Information _ Summary_2
General Information / Summary of General Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of preparation The accompanying Consolidated Financial Statements are stated in millions of euros unless indicated otherwise. The accompanying Consolidated Financial Statements have been prepared in conformity with US GAAP . We have reclassified certain prior period amounts to align with the current period presentation. |
Use of Estimates | Use of estimates The preparation of our Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the balance sheet dates , and the reported amounts of net sales and costs during the reported periods. Actual results could differ from those estimates. We evaluate our estimates continuously and we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates if the assumptions prove incorrect. To the extent there are material differences between actual results and these estimates, our future results could be materially and adversely affected. We believe that the accounting policies described below require us to make significant judgments and estimates in the preparation of our Consolidated Financial Statements. Our most critical accounting estimates include: • Revenue recognition, including lease accounting • Inventory reserves • Uncertain tax positions in income taxes • Contingencies and litigation • Evaluation of long-lived assets for impairment |
Principles of Consolidation | Principles of consolidation The Consolidated Financial Statements include the Financial Statements of ASML Holding N.V. and all of its subsidiaries. Subsidiaries are all entities over which ASML controls the financial and operating activities, generally accompanying a shareholding of more than 50.0% of the outstanding voting rights. Subsidiaries are fully consolidated from the date on which control is obtained by ASML. All intercompany transactions, balances and unrealized results on transactions with subsidiaries are eliminated. We also assess if we are the primary beneficiary of, and thus would consolidate, any variable interest entity. |
Foreign Currency Translation | Foreign currency translation The financial information for subsidiaries outside the euro-zone is measured using a mix of local currencies or the euro as the functional currency. The Financial Statements of those foreign subsidiaries are translated into euros in the preparation of ASML’s Consolidated Financial Statements . Assets and liabilities are translated into euros at the exchange rate on the respective balance sheet dates. Income and costs are translated into euros based on the average exchange rate for the corresponding period. The resulting translation adjustments are recorded directly in shareholders’ equity. |
Significant Accounting Policies [Text Block] | General information / summary of general accounting policies ASML, with its corporate headquarters in Veldhoven, the Netherlands, is engaged in the development, production, marketing, selling and servicing of advanced semiconductor equipment. ASML’s principal operations are in the Netherlands, the US and Asia. Our shares are listed for trading in the form of registered shares on Euronext Amsterdam and on NASDAQ. The principal trading market of our ordinary shares is Euronext Amsterdam. Basis of preparation The accompanying Consolidated Financial Statements are stated in millions of euros unless indicated otherwise. The accompanying Consolidated Financial Statements have been prepared in conformity with US GAAP . We have reclassified certain prior period amounts to align with the current period presentation. Use of estimates The preparation of our Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the balance sheet dates , and the reported amounts of net sales and costs during the reported periods. Actual results could differ from those estimates. We evaluate our estimates continuously and we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates if the assumptions prove incorrect. To the extent there are material differences between actual results and these estimates, our future results could be materially and adversely affected. We believe that the accounting policies described below require us to make significant judgments and estimates in the preparation of our Consolidated Financial Statements. Our most critical accounting estimates include: • Revenue recognition, including lease accounting • Inventory reserves • Uncertain tax positions in income taxes • Contingencies and litigation • Evaluation of long-lived assets for impairment Principles of consolidation The Consolidated Financial Statements include the Financial Statements of ASML Holding N.V. and all of its subsidiaries. Subsidiaries are all entities over which ASML controls the financial and operating activities, generally accompanying a shareholding of more than 50.0% of the outstanding voting rights. Subsidiaries are fully consolidated from the date on which control is obtained by ASML. All intercompany transactions, balances and unrealized results on transactions with subsidiaries are eliminated. We also assess if we are the primary beneficiary of, and thus would consolidate, any variable interest entity. Foreign currency translation The financial information for subsidiaries outside the euro-zone is measured using a mix of local currencies or the euro as the functional currency. The Financial Statements of those foreign subsidiaries are translated into euros in the preparation of ASML’s Consolidated Financial Statements . Assets and liabilities are translated into euros at the exchange rate on the respective balance sheet dates. Income and costs are translated into euros based on the average exchange rate for the corresponding period. The resulting translation adjustments are recorded directly in shareholders’ equity. New US GAAP accounting pronouncements adopted During 2019 , ASML has adopted the following accounting pronouncements : Adoption of ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326)" was issued by the FASB in June 2016 and provides financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. The adoption of ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326) does not have a material impact on our Consolidated Financial Statements . New US GAAP accounting pronouncements issued but not adopted For the year ended December 31, 2019 , there are no new US GAAP accounting pronouncements which have not yet been adopted and are expected to have a material impact on our Consolidated Financial Statements . |
Revenue from contracts with customers | Contract assets and liabilities The contract assets primarily relate to our rights to a consideration for goods or services delivered but not invoiced at the reporting date. The contract assets are transferred to the receivables when the receivables become unconditional. The contract liabilities primarily relate to remaining performance obligations for which consideration has been received such as down payments received for systems to be delivered, as well as deferred revenue from system shipments, based on the allocation of the consideration to the related performance obligations in the contract. This deferred revenue mainly consists of extended and enhanced warranties, installation and free goods or services provided as part of a volume purchase agreement. The majority of our customer contracts contain both asset and liability positions. At the end of each reporting period, these positions are netted on a contract basis and presented as either an asset or a liability in the Consolidated Balance Sheets. Consequently, a contract balance can change between periods from a net contract asset balance to a net contract liability balance in the balance sheet. Accounting Policy - Revenue from contracts with customers We measure revenue based on the consideration specified in the contracts with our customers, adjusted for any significant financing components, and excluding any taxes 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. We bill our customers for, and recognize as net sales, any charges for shipping and handling costs. We have a right to part of the payment for our systems upon reserving a production slot, part upon delivery of our systems, and the remaining part upon final acceptance of our systems. Right to payment for our service and field options occurs upon shipment or completion of the service unless described otherwise. The payment term is typically due 15-45 days after the aforementioned events. The costs related to our sales 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, other holistic lithography solutions and customer services. The main portion of our net sales is derived from volume purchase agreements 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. In our volume purchase agreements 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 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. 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 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 services provided. 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 determined using the adjusted market assessment approach, which requires judgment. 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. Used systems We have no 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 sale of the repurchased and refurbished 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 which is 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. Transfer of control and revenue recognition for new product introductions occurs upon customer acceptance (generally at SAT). Once there is an established 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 and on certain optic parts for 60 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. Goods or services Nature, timing of satisfying the performance obligations, and significant payment terms Application projects Application 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. 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 transfers 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. |
Legal Costs, Policy [Policy Text Block] | Legal contingencies ASML is party to various legal proceedings generally incidental to our business. ASML also faces exposures from other actual or potential claims and legal proceedings. In addition, ASML’s customers may be subject to claims of infringement from third parties alleging that the ASML equipment used by those customers in the manufacture of semiconductor products, and / or the methods relating to use of the ASML equipment, infringes one or more patents issued to those third parties. If these claims were successful, ASML could be required to indemnify such customers for some or all of the losses incurred or damages assessed against them as a result of that infringement. |
Long-term Debt | Accounting policy Long-term debt represents debt issued privately without registration with a government authority and is payable to others under the terms of a signed agreement. Long-term debt is initially recognized at fair value. Long-term debt is subsequently measured at amortized cost. Debt is qualified as long-term debt as long as the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Interest accruals and payments relating to Long-term debt are accounted for as part of the “Accrued and other liabilities”. |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Accounting Policy Accounts receivable are measured at fair value and are subsequently measured at amortized cost, less allowance for credit losses. The carrying amount of the accounts receivable approximates the fair value. We perform ongoing credit evaluations on our customers’ financial condition. We periodically review whether an allowance for credit losses is needed by considering factors such as historical payment experience, credit quality, aging of the accounts receivable balances, expected lifetime losses, and current economic conditions that may affect a customer's ability to pay . |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Accounting Policy Other intangible assets include brands, intellectual property, developed technology, customer relationships, and other intangible assets not yet available for use. These finite-lived intangible assets are stated at cost, less accumulated amortization and accumulated impairment losses. Amortization is calculated using the straight-line method based on the estimated useful lives of the assets. Finite-lived intangible assets are assessed for impairment whenever there is an indication that the balance sheet carrying amount may not be recoverable using cash flow projections for the useful life. The following table shows the respective useful lives for other intangible assets: Category Estimated useful life Brands 20 years Intellectual property 3 - 10 years Developed technology 6 - 15 years Customer relationships 8 - 18 years Other 2 - 6 years |
Derivative Financial Instruments | Accounting Policy Derivative financial instruments and hedging activities We use derivative financial instruments for the management of foreign currency risks and interest rate risks. We measure all derivative financial instruments based on fair values derived from market prices of the instruments. We adopt hedge accounting for hedges that are highly effective in offsetting the identified hedged risks taking into account required effectiveness criteria. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and subsequently remeasured. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. We designate derivatives as one of the following: • A hedge of an exposure relating to changes in the fair value of a recognized asset or liability, that is attributable to a particular risk (fair value hedge). • A hedge of an exposure relating to the variability in the cash flows of a recognized asset or liability, or of a forecasted transaction, that is attributable to a particular risk (cash flow hedge). • A hedge of the foreign currency exposure relating to a net investment in a foreign operation (net investment hedge). We document at the inception of the transaction the relationship between hedging instruments and hedged items, as well as our risk management objectives and strategy for undertaking various hedging transactions. We also document, both at hedge inception and on an ongoing basis, whether derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. The cash flows resulting from the derivative financial instruments are classified in the Consolidated Statements of Cash Flows according to the nature of the hedged item. Fair value hedge Changes in the fair value of a derivative financial instrument, that is designated and qualified as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in the Consolidated Statements of Operations. Hedge accounting is discontinued when we revoke the hedging relationship, the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. The adjustment to the carrying amount of the hedged item arising from the hedged risk is amortized to the Consolidated Statements of Operations from that date. Interest rate swaps that are being used to hedge the fair value of fixed loan coupons payable are designated as fair value hedges. The change in fair value is intended to offset the change in the fair value of the underlying fixed loan coupons, which is recorded accordingly. The gain or loss relating to the ineffective portion of interest rate swaps hedging fixed loan coupons payable is recognized in the Consolidated Statements of Operations as interest and other, net. Cash flow hedge Changes in the fair value of a derivative that is designated and qualified as a cash flow hedge are recorded in OCI, net of taxes, until the underlying hedged transaction is recognized in the Consolidated Statements of Operations. In the event that the underlying hedge transaction will not occur within the specified time period, the gain or loss on the related cash flow hedge is released from OCI and included in the Consolidated Statements of Operations, unless extenuating circumstances exist that are related to the nature of the forecasted transaction and are outside our control or influence and which cause the forecasted transaction to be probable of occurring on a date that is beyond the specified time period. Foreign currency hedging instruments that are being used to hedge cash flows related to forecasted sales or purchase transactions in non-functional currencies are designated as cash flow hedges. The gain or loss relating to the ineffective portion of the foreign currency hedging instruments is recognized in the Consolidated Statements of Operations in net sales or cost of sales. |
Cash and Cash Equivalents | Accounting Policy Cash and cash equivalents consist primarily of highly liquid investments, such as bank deposits, money market funds and interest-bearing bank accounts with insignificant interest rate risk and original maturities to the entity holding the investments of 3 months or less at the date of acquisition. |
Short-term Investments | Investments with original maturities to the entity holding the investments longer than 3 months and less than 1 year at the date of acquisition are presented as short-term investments. Gains and losses other than impairments, interest income and foreign exchange results, are recognized in OCI until the short-term investments are derecognized. Upon derecognition, the cumulative gain or loss recognized in OCI, is recognized in the Consolidated Statements of Operations. Short-term investments have insignificant interest rate risk. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | We perform ongoing credit evaluations on our customers’ financial condition. We periodically review whether an allowance for credit losses is needed by considering factors such as historical payment experience, credit quality, aging of the accounts receivable balances, expected lifetime losses, and current economic conditions that may affect a customer's ability to pay . |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Accounting Policy We determine if an arrangement is a lease at inception. Operating leases are included in Right-of-use (“ROU”) assets - Operating, accrued & other current liabilities, and accrued & other non-current liabilities in our consolidated balance sheets. Finance leases are included in Right-of-use ("ROU") assets - Finance, current portion of long-term debt, and Long-term debt in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. 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 lease payments. The lease ROU asset also includes any lease payments made and is reduced by lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 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 lease right-of-use assets and liabilities. ASML owns the majority of real estate we utilize for manufacturing, supply chain management and general administration at our headquarter in Veldhoven, in the Netherlands. At our other locations, worldwide much of the properties we occupy are leased and therefore comprise the largest amount of our right-of-use assets. Additionally, we lease warehouse space at locations world-wide and cars for use of our employees. |
Financing Receivable, Fee and Interest Income [Policy Text Block] | Accounting Policy Finance receivables consist of receivables in relation to sales-type leases. We perform ongoing credit evaluations of 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. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | We perform ongoing credit evaluations of 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. |
Inventories | Accounting Policy Inventories cost are computed on a first-in, first-out basis. Our inventory values are comprised of purchased materials, freight expenses and customs duties, production labor and overhead. The valuation of inventory includes determining which fixed costs can be included in inventory based on normal capacity of our manufacturing and assembly facilities. If factory usage is below the established normal capacity level a portion of our fixed production overhead costs are not included in the cost of inventory; instead, they are recognized as cost of sales in the current period. Inventory is valued at the lower of cost or net realizable value, based on assumptions about future demand and market conditions. Valuation of inventory also requires us to estimate inventory that is defective, obsolete or in excess (Inventory Reserves). We use our demand forecast to develop manufacturing plans and utilize this information to compare against raw materials, work in progress and finished product levels to determine the amount of defective, obsolete or excess inventory. |
Equity Method Investments [Policy Text Block] | Accounting Policy Equity investments which we are able to exercise significant influence but do not control, are accounted for using the equity method and presented on our Consolidated Balance Sheets within Equity method investments . The difference between the cost of our investment and our proportionate share of the carrying value of the investee's underlying net assets as of the acquisition date is the basis difference. The basis difference is allocated to the identifiable assets and liabilities based on their fair value as of the acquisition date (i.e., the date which we obtain significant influence), with the excess costs of the investment over our proportional fair value of the identifiable assets and liabilities being equity method goodwill. We amortize the basis difference related to the other intangible assets over the estimated remaining useful lives of these assets that gave rise to this difference. The remaining weighted-average life of the finite-lived intangible assets acquired is 17.2 years and is amortized using a straight-line method. In-process R&D is initially capitalized at fair value as an intangible asset with an indefinite life. When the R&D project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. If the project is abandoned, we will record the full basis difference charge for the value of the related intangible asset in our Consolidated Statements of Operations in the period of abandonment. Equity method goodwill is not amortized or tested for impairment; instead the equity method investment is tested for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. Under the equity method, after initial recognition at cost, our Equity method investments are adjusted for our proportionate share of the profit or loss and other comprehensive income of the investee, recognized on a one-quarter time lag and presented within Profit (loss) related to equity method investments . Our proportionate share of the profit or loss of the investee is adjusted for any differences in accounting principles and policies, basis difference adjustments and intra-entity profits. Receipt of dividends reduces our Equity method investments , which is presented as an operating cash flow based on the nature of the distributions. |
Intangible Assets | Accounting Policy Goodwill represents the excess of the costs of an acquisition over the fair value of the amounts assigned to assets acquired and liabilities incurred or assumed of the acquired subsidiary at the date of acquisition. Goodwill on acquisition of subsidiaries is allocated to reporting units for the purpose of impairment testing. The allocation is made to those reporting units that are expected to benefit from the business combination in which the goodwill arose. Goodwill is stated at cost less accumulated impairment losses. Goodwill is tested for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the goodwill may not be recoverable. To determine whether it is necessary to perform the quantitative goodwill impairment test, we perform a step-zero qualitative assessment, annually. If we determine that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, we do not perform a quantitative goodwill impairment test. |
Property, Plant and Equipment | Accounting Policy Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. Costs of assets manufactured by ASML include direct manufacturing costs, production overhead and interest costs incurred for qualifying assets during the construction period. Property, plant and equipment are depreciated on a straight-line basis in the Consolidated Statements of Operations over their estimated useful lives, except for land which is not depreciated. The following table shows the respective useful lives for property, plant and equipment: Category Estimated useful life Buildings and constructions 5 - 45 years Machinery and equipment 1 - 7 years Leasehold improvements 1 - 10 years Furniture, fixtures and other equipment 3 - 5 years Property, plant and equipment is assessed for impairment whenever there is an indication that the carrying amount may not be recoverable using cash flow projections for the useful life. |
Lessor, Leases [Policy Text Block] | Accounting policy - Revenue from lessor agreements 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. Leases where substantially all the risks and rewards incidental to ownership of an asset are transferred to the lessee are classified as sales-type lease arrangements. If we have offered the customer a sales-type lease arrangement, revenue is recognized at commencement of the lease term. The difference between the gross finance receivable and the present value of the minimum lease payments is initially recognized as unearned interest and presented as a deduction to the gross finance receivable. Interest income is recognized in the Consolidated Statements of Operations over the term of the lease contract using the effective interest method. Leases whereby all the risks and rewards incidental to ownership are not transferred to the lessee are classified as operating lease arrangements. If we have offered the customer an operating lease arrangement, the system is included in property, plant and equipment upon commencement of the lease. Revenue from operating lease arrangements is recognized in the Consolidated Statements of Operations on a straight-line basis over the term of the lease contract. |
Income Taxes | Accounting Policy The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effect of incurred net operating losses and for tax consequences attributable to differences between the balance sheet carrying amounts of existing assets and liabilities and their respective tax bases. If it is more likely than not that the carrying amounts of deferred tax assets will not be realized, a valuation allowance is recorded for the differences. Tax expense includes current taxes on profit as well as actual or potential withholding taxes on current and expected income from group companies. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Operations in the period that includes the enactment date. We assess uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While we believe we have appropriate support for the positions taken on our tax returns, we regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes, and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. |
Commitments and Contingencies, Policy [Policy Text Block] | In connection with proceedings and claims, our management evaluates, based on the relevant facts and legal principles, the likelihood of an unfavorable (or favorable) outcome, and whether the amount of the loss (or gain) can be reasonably estimated. Significant subjective judgments are required in these evaluations, including judgments regarding the validity of asserted claims and the likely outcome of legal and administrative proceedings. The outcome of these proceedings, however, is subject to a number of factors beyond our control, most notably the uncertainty associated with predicting decisions by courts and administrative agencies. In addition, estimates of the potential costs (or gains) associated with legal and administrative proceedings frequently cannot be subjected to any sensitivity analysis, as damage estimates or settlement offers by claimants may bear little or no relation to the eventual outcome. Finally, in any particular proceeding, we may agree to settle or to terminate a claim or proceeding in which we believe that it would ultimately prevail where we believe that doing so, when taken together with other relevant commercial considerations, is more effective than engaging in an expensive and protracted litigation, the outcome of which is uncertain. |
Share-based payments | Accounting Policy Share-based payments ASML has share based-payment plans for the company’s employees. These plans consist of performance plans including services and service only plans. The performance plans contain 70% non-market based elements and a 30% market based element. The fair value of the market based element of the performance plans (30% Total Shareholder Return as compared to a specific peer group) is measured at the grant date incorporating the expected vesting and expected value at vesting, using a tailored Monte Carlo simulation model. The fair value of the non-market based element of the performance plans (ROAIC (40%), rating in technology index (20%) and sustainability (10%)) and the service plans (being service over specified period of time) is measured at the grant date at the share price less present value of expected dividends during the vesting period, as participants are not entitled to dividends payable and voting rights during the vesting period. The likelihood of the conditions being met for service and non-market performance plans is assessed as part of the company’s best estimate of the number of equity instruments that will ultimately vest . Participants are entitled to a conditional grant of company shares upon awarding. Performance plans are subject to cliff vesting and are accounted for on a straight line basis. Service only plans are subject to graded vesting. Each installment of the plan is therefore accounted as a separate grant with a separate fair value. This means that each installment will be separately measured and attributed to expense over the related vesting period. Expenses for the market based element are recognized during vesting at a fixed vesting level (as the vesting expectation is incorporated in the fair value) provided that all other performance conditions are met. Expenses for the non-market based elements and service plans are recognized during vesting at expected vesting levels, which are updated during vesting period as necessary, with a final update/adjustment at vesting date. All share based remuneration expenses are recognized as personnel expense, with a corresponding entry in equity, during the vesting period of the award. Share based remuneration expenses are included in the same income statement line or lines in the functional grouped consolidated statement of operations as the compensation paid to the employees receiving the stock-based awards. Share-based compensation The General Meeting approved the adoption of the most recent remuneration Policy for the Board of Management and the number of shares to be issued. The most recent remuneration policy includes the target and maximum levels of the LTI plans, the performance measures and pay-out zone percentages. The General Meeting also approved the restrictions and limits to the Board of Management for issuance/granting of ordinary shares, limits for restricting or excluding the preemption rights accruing to shareholder and the restrictions and limits to the Board of Management for repurchasing ordinary shares on behalf of the company. |
Pension plans | Accounting policy Contributions to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions. Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution plans where our obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan. ASML accounts for its multi-employer defined benefit plan as if it were a defined contribution plan for the following reasons: • ASML is affiliated to an industry-wide pension fund and uses the pension scheme in common with other participating companies. • Under the regulations of the pension plan, the only obligation these participating companies have towards the pension fund is to pay the annual premium liability. Participating companies are under no obligation whatsoever to pay off any deficits the pension plan may incur. Nor have they any claim to any potential surpluses. |
Net Income per Ordinary Share | Basic net income per ordinary share is calculated by: • Dividing net income by the weighted average number of ordinary shares outstanding for that period; The dilutive effect is calculated using the treasury stock method by: • Dividing net income by the weighted average number of ordinary shares outstanding for that period plus shares applicable to options and conditional shares Excluded from the diluted weighted average number of shares outstanding calculation are cumulative preference shares contingently issuable to the preference share foundation, since they represent a different class of stock than the ordinary shares. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New US GAAP accounting pronouncements adopted During 2019 , ASML has adopted the following accounting pronouncements : Adoption of ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326)" was issued by the FASB in June 2016 and provides financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. The adoption of ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326) does not have a material impact on our Consolidated Financial Statements . New US GAAP accounting pronouncements issued but not adopted For the year ended December 31, 2019 , there are no new US GAAP accounting pronouncements which have not yet been adopted and are expected to have a material impact on our Consolidated Financial Statements . |
Long-term Debt | Long-term debt and interest and other costs Accounting policy Long-term debt represents debt issued privately without registration with a government authority and is payable to others under the terms of a signed agreement. Long-term debt is initially recognized at fair value. Long-term debt is subsequently measured at amortized cost. Debt is qualified as long-term debt as long as the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Interest accruals and payments relating to Long-term debt are accounted for as part of the “Accrued and other liabilities”. Interest and other costs should be accrued and recorded with the passage of time over the agreed term, regardless of when the interest receipt or payment has taken place. Long-term debt consists of the following: As of December 31 2018 2019 (in millions) € € €500 million 0.625% senior notes due 2022, carrying amount 494.5 499.5 €750 million 3.375% senior notes due 2023, carrying amount 816.0 813.3 €1,000 million 1.375% senior notes due 2026, carrying amount 964.6 1,007.0 €750 million 1.625% senior notes due 2027, carrying amount 742.4 778.3 Other 9.0 10.2 Long-term debt 3,026.5 3,108.3 Less: current portion of long-term debt — — Non-current portion of long-term debt 3,026.5 3,108.3 Our obligations to make principal repayments under our Eurobonds and other borrowing arrangements excluding interest expense as of December 31, 2019 : (in millions) € 2020 2.8 2021 2.8 2022 502.8 2023 751.3 2024 — Thereafter 1,750.0 Long-term debt 3,009.7 Less: current portion of long-term debt 2.8 Non-current portion of long-term debt 3,006.9 For the years 2020 and 2021 the obligations relate to lease payments. The years thereafter mainly relate to repayments of principals under our Eurobonds. Eurobonds The following table summarizes the carrying amount of our outstanding Eurobonds, including the fair value of interest rate swaps used to hedge the change in the fair value of the Eurobonds: As of December 31 2018 2019 (in millions) € € Amortized cost amount 2,980.0 2,983.2 Fair value interest rate swaps 1 37.5 114.9 Carrying amount 3,017.5 3,098.1 1. The fair value of the interest rate swaps excludes accrued interest. In September 2013 , we issued our €750 million 3.375% senior notes due 2023 , with interest payable annually on September 19. The notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on September 19, 2023 . In July 2016 , we issued our €500 million 0.625% senior notes due 2022 , with interest payable annually on July 7. The notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on July 7, 2022 . In July 2016 , we issued our €1,000 million 1.375% senior notes due 2026 , with interest payable annually on July 7. The notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on July 7, 2026 . In November 2016 , we issued our €750 million 1.625% senior notes due 2027 , with interest payable annually on May 28. The notes are redeemable at the option of ASML, in whole or in part, at any time by paying a make whole premium, and unless previously redeemed, will be redeemed at 100% of their principal amount on May 28, 2027 . The Eurobonds serve as hedged items in fair value hedge relationships in which we hedge the variability of changes in the fair value of our Eurobonds due to changes in market interest rates with interest rate swaps. The fair value changes of these interest rate swaps are recorded on the Consolidated Balance Sheets under derivative financial instruments (within other current assets, other non-current assets, current accrued and other liabilities and non-current accrued and other liabilities) and the carrying amount of the Eurobonds is adjusted for these fair value changes only. The following table summarizes the estimated fair value of our Eurobonds: As of December 31 2018 2019 (in millions) € € Principal amount 3,000.0 3,000.0 Carrying amount 3,017.5 3,098.1 Fair value 1 3,119.4 3,247.7 1. Source: Bloomberg Finance LP. The fair value of our Eurobonds is estimated based on quoted market prices as of December 31, 2019 . Due to changes in market interest rates and credit spreads since the issue of our Eurobonds which carry a fixed coupon interest rate, the fair value deviates from the principal amount. Lines of credit Our available committed credit facility, with a group of banks, is €700.0 million as of December 31, 2019 and as of December 31, 2018 . No amounts were outstanding under the committed credit facility at the end of 2019 and 2018 . This facility of €700.0 million was renegotiated on July 3, 2019 , including the extension of the maturity date to July 3, 2024 . The extension includes options for extension by two 1-year extension options on the first and the second anniversary of the facility (extending the maturity potentially to 2026) , if agreed by both ASML and the lenders . Outstanding amounts under this credit facility will bear interest at EURIBOR or LIBOR plus a margin that depends on our credit rating and ESG score. Interest and other, net Interest and other consist mainly of interest income and interest expenses. In 2019, the interest expense component is €36.6 million ( 2018 : €41.8 million and 2017 : €57.5 million ), related to interest expense on our Eurobonds, as well as related interest rate swaps and hedges, and amortized financing costs. |
Interest Expense, Policy [Policy Text Block] | Interest and other costs should be accrued and recorded with the passage of time over the agreed term, regardless of when the interest receipt or payment has taken place. |
Transfers and Servicing of Financial Assets, Servicing of Financial Assets, Policy [Policy Text Block] | When entering into arrangements to sell our receivable, we de-recognize the receivable only in case the receivable is isolated, the transferred receivable includes the right to pledge or exchange, and we transfer control over the receivable. |
General Information _ Summary_3
General Information / Summary of General Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New US GAAP accounting pronouncements adopted During 2019 , ASML has adopted the following accounting pronouncements : Adoption of ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326)" was issued by the FASB in June 2016 and provides financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. The adoption of ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326) does not have a material impact on our Consolidated Financial Statements . New US GAAP accounting pronouncements issued but not adopted For the year ended December 31, 2019 , there are no new US GAAP accounting pronouncements which have not yet been adopted and are expected to have a material impact on our Consolidated Financial Statements . |
Revenue from Contract with Cu_2
Revenue from Contract with Customer Revenue from Contract with Customer (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Goods or services, Nature, timing of satisfying the performance obligations, and significant payment terms | 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. Used systems We have no 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 sale of the repurchased and refurbished 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 which is 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. Transfer of control and revenue recognition for new product introductions occurs upon customer acceptance (generally at SAT). Once there is an established 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 and on certain optic parts for 60 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. Goods or services Nature, timing of satisfying the performance obligations, and significant payment terms Application projects Application 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. 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 transfers 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. |
Schedule of Net System Sales in Units | Net system sales per technology were as follows: Year ended December 31 Net system sales Net system sales € millions 2019 EUV 26 2,799.7 ArFi 82 4,707.7 ArF dry 22 401.2 KrF 65 679.7 i-line 34 133.5 Metrology & Inspection 115 274.4 Total 344 8,996.2 2018 EUV 18 1,880.1 ArFi 86 4,806.9 ArF dry 16 274.3 KrF 78 860.1 i-line 26 98.6 Metrology & Inspection 114 339.1 Total 338 8,259.1 2017 EUV 11 1,084.2 ArFi 76 4,028.7 ArF dry 13 186.4 KrF 71 743.5 i-line 26 99.7 Metrology & Inspection 95 281.9 Total 292 6,424.4 Net system sales per end-use were as follows: Year ended December 31 Net system sales Net system sales € millions 2019 Logic 238 6,565.3 Memory 106 2,430.9 Total 344 8,996.2 2018 Logic 125 3,713.7 Memory 213 4,545.4 Total 338 8,259.1 2017 Logic 145 3,456.7 Memory 147 2,967.7 Total 292 6,424.4 |
Changes in Contracts with Customer, Asset and Liability | Significant changes in the contract assets and the contract liabilities balances during the periods are as follows. Year ended December 31 2018 2019 (in millions) € € Contract Assets Contract Liabilities Contract Assets Contract Liabilities Balance at beginning of the year 270.4 2,152.0 95.9 2,953.2 Transferred to receivables from contract assets from the beginning of the period (456.2 ) — (167.4 ) — Revenues recognized during the year, to be invoiced 192.3 — 68.7 — Revenue recognition that was included in the contract liability balance at the beginning of the period — (1,306.3 ) — (1,528.4 ) Changes as a result of cumulative catch-up adjustments arising from changes in estimates — (64.4 ) — (133.4 ) Remaining performance obligations for which considerations have been received — 2,082.5 — 2,760.8 Transfer between contract assets and liabilities 89.4 89.4 233.8 233.8 Total 95.9 2,953.2 231.0 4,286.0 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Net Sales for New and Used Systems | Net system sales for new and used systems were as follows: Year ended December 31 2017 2018 2019 (in millions) € € € New systems 6,332.9 8,115.6 8,807.1 Used systems 91.5 143.5 189.1 Net system sales 6,424.4 8,259.1 8,996.2 |
Net Sales and Long-lived Assets by Geographic Region | Total net sales and long-lived assets (consisting of property, plant and equipment) by geographic region were as follows: Year ended December 31 Total net sales Long-lived assets (in millions) € € 2019 Japan 463.2 6.5 Korea 2,202.1 24.1 Singapore 120.0 1.6 Taiwan 5,357.0 131.6 China 1,377.7 21.3 Rest of Asia 2.6 0.5 Netherlands 2.6 1,396.0 EMEA 314.6 4.3 United States 1,980.2 413.4 Total 11,820.0 1,999.3 2018 Japan 567.6 8.2 Korea 3,725.1 24.6 Singapore 222.5 1.1 Taiwan 1,989.5 96.5 China 1,842.8 16.2 Rest of Asia 1.9 0.4 Netherlands 1.2 1,113.8 EMEA 631.7 5.1 United States 1,961.7 323.6 Total 10,944.0 1,589.5 2017 Japan 404.3 3.4 Korea 3,031.4 23.2 Singapore 163.7 0.8 Taiwan 2,096.7 88.1 China 919.5 4.1 Rest of Asia 3.5 3.0 Netherlands 4.0 1,186.0 EMEA 921.5 5.0 United States 1,418.1 287.2 Total 8,962.7 1,600.8 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Short-Term Investments | Cash and cash equivalents and short-term investments consist of the following: Year ended December 31 2018 2019 (in millions) € € Deposits with financial institutions 188.2 434.8 Investments in money market funds 2,342.6 2,139.7 Interest-bearing bank accounts 590.3 957.8 Cash and cash equivalents 3,121.1 3,532.3 Deposits with financial institutions 913.3 1,185.8 Short-term investments 913.3 1,185.8 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable consist of the following: As of December 31 2018 2019 (in millions) € € Accounts receivable, gross 1,504.9 1,791.9 Allowance for credit losses (6.7 ) (5.1 ) Accounts receivable, net 1,498.2 1,786.8 |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Components of Finance Receivables | The following table lists the components of the finance receivables as of December 31, 2019 and 2018 : As of December 31 2018 2019 (in millions) € € Finance receivables, gross 893.7 994.4 Unearned interest (7.5 ) (8.8 ) Finance receivables, net 886.2 985.6 Current portion of finance receivables, gross 613.3 568.4 Current portion of unearned interest (2.2 ) (3.9 ) Non-current portion of finance receivables, net 275.1 421.1 |
Finance Receivables Due for Payment | At December 31, 2019 , finance receivables, gross due for payment in each of the next 5 years and thereafter are as follows: (in millions) € 2020 568.4 2021 257.7 2022 168.3 2023 — 2024 — Thereafter — Finance receivables, gross 994.4 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: As of December 31 2018 2019 (in millions) € € Raw materials 1 1,550.3 2,026.3 Work-in-process 1,537.5 1,505.9 Finished products 1 793.0 771.3 Inventories, gross 3,880.8 4,303.5 Inventory reserves (441.3 ) (494.3 ) Inventories, net 3,439.5 3,809.2 1. In 2019 , the presentation of service parts needing to be reworked has been adjusted from Finished products to Raw materials as they are not able to be used in sale of goods or services in their current state. As a result, we have reclassified €312.0 million from Finished products to Raw materials for the previously reported December 31, 2018 balances . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . |
Allowance for Obsolescence and/or Lower Market Value | A summary of activity in the inventory reserves is as follows: Year ended December 31 2018 2019 (in millions) € € Balance at beginning of year (349.9 ) (441.3 ) Additions for the year (218.2 ) (221.5 ) Effect of changes in exchange rates 4.2 (0.5 ) Utilization of the reserve 122.6 169.0 Balance at end of year (441.3 ) (494.3 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | Other current and non-current assets consist of the following: As of December 31 2018 2019 (in millions) € € Advance payments to Carl Zeiss SMT GmbH 231.1 215.2 Prepaid expenses 299.6 372.5 Derivative financial instruments 1 42.2 34.5 VAT 116.0 89.5 Other assets 83.7 131.1 Other current assets 772.6 842.8 Advance payments to Carl Zeiss SMT GmbH 533.4 585.3 Derivative financial instruments 1 59.7 103.0 Compensation plan assets 43.1 55.1 Non-current accounts receivable 150.7 67.8 Other assets 19.2 19.2 Other non-current assets 806.1 830.4 1. For further details on derivative financial instruments see Note 24 Financial risk management . |
Equity Method Investments Equ_2
Equity Method Investments Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |
Classification of funding to Carl Zeiss SMT GmbH | The table below summarizes support provided to Carl Zeiss SMT GmbH, by type: For the year ended 2017 2018 2019 (in millions) € € € Capital expenditures 89.1 191.8 184.1 R&D costs 55.8 74.8 94.2 Supply chain investments 2.6 8.5 4.5 Total support provided 147.5 275.1 282.8 The table below summarizes support provided to Carl Zeiss SMT GmbH, by type: For the year ended 2017 2018 2019 (in millions) € € € Capital expenditures 89.1 191.8 184.1 R&D costs 55.8 74.8 94.2 Supply chain investments 2.6 8.5 4.5 Total support provided 147.5 275.1 282.8 |
Equity Method Investments [Table Text Block] | The following summarizes the total assets and liabilities related to our variable interest in Carl Zeiss SMT Holding GmbH & Co. KG as reflected in our Consolidated Balance Sheets , as well as our maximum exposure to losses as of December 31, 2019 . Our maximum exposure to loss is limited to our equity method investment in Carl Zeiss SMT Holding GmbH & Co. KG and prepayments provided to the equity method investment. As of December 31 2019 2019 Maximum exposure to loss (in millions) Assets Liabilities EUV Agreements 320.9 — 320.9 DUV Agreements 34.7 — 34.7 High-NA Agreement 566.5 (28.0 ) 566.5 Investment agreement for 24.9% equity 833.0 — 833.0 |
Other Intangible Assets, net (T
Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Other Intangible Assets | As of December 31, 2019 other intangible assets consist mainly of brands, intellectual property, developed technology, customer relationships obtained from the acquisitions of HMI (2016) and Cymer (2013): (in millions) Brands Intellectual Developed Customer Other Total Cost Balance at January 1, 2018 38.2 61.9 1,199.9 228.6 32.2 1,560.8 Additions — 5.0 — — 37.0 42.0 Disposals — — — — — — Effect of changes in exchange rates 1.0 2.0 — — (3.0 ) — Balance at December 31, 2018 39.2 68.9 1,199.9 228.6 66.2 1,602.8 Additions — 73.7 — — 42.1 115.8 Disposals — — — — (0.2 ) (0.2 ) Effect of changes in exchange rates (0.3 ) (0.2 ) 0.2 — 2.4 2.1 Balance at December 31, 2019 38.9 142.4 1,200.1 228.6 110.5 1,720.5 Accumulated amortization Balance at January 1, 2018 4.8 60.0 264.2 57.8 8.0 394.8 Amortization 1.9 1.2 82.1 12.7 5.8 103.7 Disposals — — — — — — Effect of changes in exchange rates 0.7 1.6 0.2 — (2.2 ) 0.3 Balance at December 31, 2018 7.4 62.8 346.5 70.5 11.6 498.8 Amortization 1.9 7.8 82.0 12.7 11.0 115.4 Disposals — — — — (0.2 ) (0.2 ) Effect of changes in exchange rates (0.1 ) — 0.1 — 2.1 2.1 Balance at December 31, 2019 9.2 70.6 428.6 83.2 24.5 616.1 Carrying amount December 31, 2018 31.8 6.1 853.4 158.1 54.6 1,104.0 December 31, 2019 29.7 71.8 771.5 145.4 86.0 1,104.4 |
Future Amortization Expenses | As of December 31, 2019 , the estimated amortization expenses for other intangible assets, for the next 5 years and thereafter, are as follows: (in millions) € 2020 120.0 2021 120.0 2022 117.0 2023 109.0 2024 102.0 Thereafter 536.4 Amortization expenses 1,104.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Depreciation charges by expense classification [Table Text Block] | The Consolidated Statements of Operations include the following depreciation charges: As of December 31 2017 2018 2019 (in millions) € € € Cost of Sales 195.7 191.6 196.1 R&D Costs 101.7 105.9 117.2 SG&A 10.8 17.9 12.0 Total Depreciation 308.2 315.4 325.3 |
Property, Plant and Equipment | Property, plant and equipment consist of the following: (in millions) Land and buildings € Machinery and equipment € Leasehold improvements € Furniture, fixtures and other equipment € Total € Cost Balance at January 1, 2018 1,641.8 1,159.9 256.6 375.6 3,433.9 Additions 119.6 196.4 21.5 44.6 382.1 Disposals (57.2 ) (16.0 ) (3.4 ) (4.9 ) (81.5 ) Net non-cash movements to/from Inventories — (38.9 ) — — (38.9 ) Effect of changes in exchange rates 5.6 3.7 0.5 0.9 10.7 Balance at December 31, 2018 1,709.8 1,305.1 275.2 416.2 3,706.3 Additions 321.0 261.1 26.7 64.6 673.4 Disposals (0.3 ) (17.5 ) (1.4 ) (103.4 ) (122.6 ) Net non-cash movements to/from Inventories — 33.9 — — 33.9 Effect of changes in exchange rates 6.0 5.2 0.5 0.3 12.0 Balance at December 31, 2019 2,036.5 1,587.8 301.0 377.7 4,303.0 Accumulated depreciation and impairment Balance at January 1, 2018 552.7 742.4 244.5 293.5 1,833.1 Depreciation 92.8 174.8 19.2 28.6 315.4 Impairment charges 1.0 14.4 — — 15.4 Disposals (2.5 ) (13.3 ) (3.0 ) (4.5 ) (23.3 ) Net non-cash movements to/from Inventories — (27.8 ) — — (27.8 ) Effect of changes in exchange rates 2.0 1.5 0.2 0.3 4.0 Balance at December 31, 2018 646.0 892.0 260.9 317.9 2,116.8 Depreciation 98.5 166.7 21.3 38.8 325.3 Impairment charges — 4.7 — — 4.7 Disposals (0.2 ) (14.8 ) (1.2 ) (103.3 ) (119.5 ) Net non-cash movements to/from Inventories — (28.7 ) — — (28.7 ) Effect of changes in exchange rates 2.0 2.8 0.3 — 5.1 Balance at December 31, 2019 746.3 1,022.7 281.3 253.4 2,303.7 Carrying amount December 31, 2018 1,063.8 413.1 14.3 98.3 1,589.5 December 31, 2019 1,290.2 565.1 19.7 124.3 1,999.3 |
Right-of-use assets and lease_2
Right-of-use assets and lease liabilities Right-of-use assets and lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Right-of-use asset operating/finance lease by category | Right-of-use assets consist of the following leases: Operating Finance As of December 31 2018 2019 2018 2019 (in millions) € € € € Properties 105.1 177.0 — 92.1 Cars 11.9 11.9 — — Equipment — — — 26.4 Warehouses 14.5 8.7 — — Other 6.1 7.8 — — Right-of-use assets 137.6 205.4 — 118.5 Lease liabilities are split between current and non-current: Operating Finance As of December 31 2018 2019 2018 2019 (in millions) € € € € Current 46.3 55.6 — — Non-current 93.7 153.8 — 9.5 Lease liabilities 140.0 209.4 — 9.5 |
Schedule of lease cost | The Consolidated Statements of Operations include the following depreciation charges relating to these leases: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 (in millions) € € € € € € Properties 29.9 40.2 48.2 — — 2.8 Cars 7.1 7.4 8.1 — — — Equipment — — — — — 4.5 Warehouses 5.9 7.1 4.5 — — — Other 11.6 12.4 12.4 — — — Depreciation charge right-of-use assets 54.5 67.1 73.2 — — 7.3 The total cash outflows relating to the lease liabilities are as follows: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 (in millions) € € € € € € Total Cash Outflow 54.5 67.1 73.2 — — 2.8 The weighted average remaining lease term and weighted average discount rate related to the leases are as follows: Operating Finance As of December 31 2017 2018 2019 2017 2018 2019 € € € € € € Weighted average remaining lease term (months) 57 60 70 0 0 230 Weighted average discount rate (%) 2.2 % 2.1 % 2.2 % — % — % 0.7 % |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued and Other Liabilities | Accrued and other liabilities consist of the following: As of December 31 2018 2019 (in millions) € € Costs to be paid 154.8 252.1 Personnel related items 544.4 654.6 Derivative financial instruments 1 47.4 3.9 Operating lease liabilities 2 140.0 209.4 Provisions 160.3 30.7 Standard warranty reserve 59.8 128.4 Other 6.4 1.8 Accrued and other liabilities 1,113.1 1,280.9 Less: non-current portion of accrued and other liabilities 201.7 241.0 Current portion of accrued and other liabilities 911.4 1,039.9 1. For further details on derivative financial instruments see Note 24 Financial risk management . 2. For further details on lease liabilities see Note 13 Right-of-use assets and lease liabilities . |
Changes in Standard Warranty Reserve | The standard warranty reserve is based on historical product performance and total expected costs to fulfill our warranty obligation. Annually, we assess, and update if necessary, the standard warranty reserve based on the latest actual historical warranty costs and expected future warranty costs. The 2019 addition of the warranty reserve of €118.5 million is mainly due to new insights to determine our warranty, in light of the increase in installed base and the fact that EUV is now going into high-volume manufacturing. Total changes in standard warranty reserve for the years 2019 and 2018 are as follows: Year ended December 31 2018 2019 (in millions) € € Balance at beginning of year 59.7 59.8 Additions for the year 61.9 118.5 Utilization of the reserve (59.8 ) (50.0 ) Effect of exchange rates (2.0 ) 0.1 Balance at end of year 59.8 128.4 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Long-term debt consists of the following: As of December 31 2018 2019 (in millions) € € €500 million 0.625% senior notes due 2022, carrying amount 494.5 499.5 €750 million 3.375% senior notes due 2023, carrying amount 816.0 813.3 €1,000 million 1.375% senior notes due 2026, carrying amount 964.6 1,007.0 €750 million 1.625% senior notes due 2027, carrying amount 742.4 778.3 Other 9.0 10.2 Long-term debt 3,026.5 3,108.3 Less: current portion of long-term debt — — Non-current portion of long-term debt 3,026.5 3,108.3 |
Principal Repayments and Other Borrowing Arrangements | Our obligations to make principal repayments under our Eurobonds and other borrowing arrangements excluding interest expense as of December 31, 2019 : (in millions) € 2020 2.8 2021 2.8 2022 502.8 2023 751.3 2024 — Thereafter 1,750.0 Long-term debt 3,009.7 Less: current portion of long-term debt 2.8 Non-current portion of long-term debt 3,006.9 |
Summary of Carrying Amount of Outstanding Eurobonds and Fair Value of Interest Rate Swaps | The following table summarizes the carrying amount of our outstanding Eurobonds, including the fair value of interest rate swaps used to hedge the change in the fair value of the Eurobonds: As of December 31 2018 2019 (in millions) € € Amortized cost amount 2,980.0 2,983.2 Fair value interest rate swaps 1 37.5 114.9 Carrying amount 3,017.5 3,098.1 1. The fair value of the interest rate swaps excludes accrued interest. |
Estimated Fair Value of Eurobonds | The following table summarizes the estimated fair value of our Eurobonds: As of December 31 2018 2019 (in millions) € € Principal amount 3,000.0 3,000.0 Carrying amount 3,017.5 3,098.1 Fair value 1 3,119.4 3,247.7 1. Source: Bloomberg Finance LP. |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligations | Our contractual obligations as of December 31, 2019 can be summarized as follows: Payments due by period Total 1 year 2 year 3 year 4 year 5 year After (in millions) € € € € € € € Long-Term Debt Obligations, including interest expense 1 3,303.5 59.2 59.0 556.1 795.8 26.3 1,807.1 Lease Obligations 2 209.4 53.5 44.4 31.7 19.1 11.8 48.9 Purchase Obligations 4,562.7 3,947.8 384.6 149.0 56.8 17.5 7.0 Carl Zeiss SMT GmbH High NA Funding Commitment 3 524.8 304.3 214.4 6.1 — — — Total Contractual Obligations 4 8,600.4 4,364.8 702.4 742.9 871.7 55.6 1,863.0 1. Long-term debt obligations mainly relate to principal amounts and interest payments of our Eurobonds. For the amounts excluding interest expenses and for further details see Note 15 Long-term debt and interest and other costs . 2. For further details see Note 13 Right-of-use assets and lease liabilities . 3. For further details see Note 9 Equity method investments . 4. We have excluded unrecognized tax benefits for an amount of €227.1 million as the amounts that will be settled in cash are not known and the timing of any payments is uncertain. |
Share-based compensation Shar_2
Share-based compensation Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Assumptions Used for Calculation of the Fair Value of Shares | The assumptions for the calculation of the fair value of shares, which include a market based performance element (Total Shareholder Return) are set out in the following table: Year ended December 31 2017 2018 2019 Share price in € at grant date 114.1 166.9 199.5 Expected volatility ASML 27.1 % 26.1 % 29.8 % Expected volatility PHLX index 21.6 % 21.3 % 24.8 % Vesting period 2.9 years 2.9 years 2.5 years Dividend yield 1.1 % 0.8 % 1.1 % Risk free interest rate (Eurozone) (0.6 )% (0.4 )% (0.8 )% Risk free interest rate (US) 1.5 % 2.2 % 1.8 % |
Schedule of Expenses for Share Plans | Expenses for share plans were as follows: Year ended December 31 2017 2018 2019 (in millions, except weighted average period) € € € Total compensation expenses incurred for share based remuneration (including share-based payments to the BoM) 53.1 46.3 74.6 The tax benefit (excluding excess tax benefits) recognized related to the recognized share-based compensation costs in the US 8.7 5.6 5.9 Total compensation expenses to be incurred for share based remuneration (including share-based payments to the BoM) in future periods 78.5 94.2 95.8 Weighted average period in which compensation expenses (including share-based payments to the BoM) are expected to be recognized 1.8 years 1.7 years 1.6 years |
Schedule of Shares Activity During Period | Details with respect to shares granted and vested during the year are set out in the following table: EUR-denominated USD-denominated Year ended December 31 2017 2018 2019 2017 2018 2019 Total fair value at vesting date of shares vested during the year (in millions) 49.9 46.4 58.7 53.3 61.6 54.9 Weighted average fair value of shares granted 125.16 161.63 190.33 130.77 187.98 206.90 A summary of the status of conditionally outstanding shares as of December 31, 2019 , and changes during the year ended December 31, 2019 , is presented below: EUR-denominated USD-denominated Number Weighted Number Weighted Conditional shares outstanding at January 1, 2019 720,827 120.73 661,182 146.78 Granted 315,578 190.33 255,885 206.90 Vested (304,322 ) 116.82 (282,971 ) 138.04 Forfeited (50,054 ) 96.74 (55,597 ) 138.43 Conditional shares outstanding at December 31, 2019 682,029 157.48 578,499 179.22 Details with respect to stock options are set out in the following table: EUR-denominated USD-denominated Year ended December 31 2017 2018 2019 2017 2018 2019 Weighted average share price at the exercise date of stock options 132.67 169.68 201.52 148.48 201.01 225.70 Aggregate intrinsic value of stock options exercised (in millions) 12.5 13.6 4.3 4.8 7.6 2.3 Weighted average remaining contractual term of currently exercisable options (in years) 3.80 4.76 4.16 4.49 5.20 4.40 Aggregate intrinsic value of exercisable stock options (in millions) 21.0 8.9 17.7 13.1 5.2 11.8 Aggregate intrinsic value of outstanding stock options (in millions) 21.2 9.0 17.7 13.2 5.2 11.8 |
Schedule of Number and Weighted Average Exercise Prices of Stock Options Activity | The number and weighted average exercise prices of stock options as of December 31, 2019 , and changes during the year then ended are presented below: EUR-denominated USD-denominated Number Weighted average Number Weighted average Outstanding, January 1, 2019 116,692 60.49 70,299 81.43 Granted — — — — Exercised (27,952 ) 46.90 (14,750 ) 72.86 Forfeited — — — — Expired — — — — Outstanding, December 31, 2019 88,740 64.80 55,549 83.71 Exercisable, December 31, 2019 88,740 64.80 55,549 83.71 |
Schedule of Range of Exercise Prices, Number of Outstanding Options, and Weighted Average Remaining Contractual Life of Oustanding Options | Details with respect to the stock options outstanding are set out in the following table: EUR-denominated USD-denominated Range of € ) Number of outstanding options at December 31, 2019 Weighted Range of Number of outstanding options at December 31, 2019 Weighted 20 - 25 7,260 0.79 20 - 25 — 0.00 25 - 40 8,060 1.72 25 - 40 6,518 1.10 40 - 50 9,290 2.80 40 - 50 562 1.80 50 - 60 7,273 3.97 50 - 60 2,869 2.70 60 - 70 15,318 3.93 60 - 70 423 3.10 70 - 80 14,115 5.38 70 - 80 1,059 3.30 80 - 90 13,625 5.85 80 - 90 12,449 4.80 90 - 100 13,799 5.69 90 - 100 21,957 5.00 100 - 110 — 0.00 100 - 110 9,712 5.70 Total 88,740 4.16 Total 55,549 4.40 |
Employee benefits Employee be_2
Employee benefits Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Bonus Plan Expense | STI expenses for the Board of Management and other employees were as follows: Year ended December 31 2017 2018 2019 (in millions) € € € Board of Management 1 3.8 4.5 5.1 Other employees 2 218.0 233.7 269.1 Total bonus expenses 221.8 238.2 274.2 1. Includes all members that served on the Board of Management throughout the year. 2. Includes all variations of available STI bonus plans of which employees are eligible. |
Schedule of Pension and Retirement Expenses | We maintain one multi-employer union plan and various other pension plans (based on defined contribution) covering substantially all of our employees. Our pension and retirement expenses for all employees for the years ended December 31, 2019 , 2018 and 2017 were: Year ended December 31 2017 2018 2019 (in millions) € € € Pension plan based on multi-employer union plan 62.4 74.0 96.6 Pension plans based on defined contribution 38.4 48.0 55.9 Pension and retirement expenses 100.8 122.0 152.5 |
Personnel expenses and employ_2
Personnel expenses and employee information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Personnel Expenses for All Payroll Employees | Personnel expenses for all payroll employees were as follows: Year ended December 31 2017 2018 2019 (in millions) € € € Wages and salaries 1,492.8 1,777.9 2,124.4 Social security expenses 119.6 146.3 181.9 Pension and retirement expenses 100.8 122.0 152.5 Share-based payments 53.1 46.3 74.6 Personnel expenses 1,766.3 2,092.5 2,533.4 |
Total Number of Payroll and Temporary Personnel Employed in FTE's Per Sector | The total number of payroll and temporary employees as of December 31 in FTEs per sector was: As of December 31 2017 2018 2019 (in FTE) Customer Support 5,051 5,674 5,953 Manufacturing and Supply Chain Management 4,909 5,779 5,933 Strategic Supply Management 203 267 326 General & Administrative 1,517 1,701 1,898 Sales and Mature Products and Services 184 559 624 Research & Development 7,352 9,267 10,166 Total 19,216 23,247 24,900 Less: Temporary employees 2,997 3,203 1,681 Payroll employees 16,219 20,044 23,219 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of (Provision for) Benefit from Income Taxes | The components of the provision for income taxes are as follows: Year ended December 31 2017 1 2018 1 2019 (in millions) € € € Netherlands 2,076.6 2,602.0 2,441.2 Foreign 312.8 335.0 324.6 Income before taxes 2,389.4 2,937.0 2,765.8 Provision for income taxes current (349.3 ) (433.5 ) (305.5 ) Provision for income taxes deferred 61.9 9.7 74.8 Provision for income taxes Netherlands (287.4 ) (423.8 ) (230.7 ) Provision for income taxes current (35.3 ) (210.1 ) (118.4 ) Provision for income taxes deferred 16.6 282.3 157.4 Provision for income taxes Foreign (18.7 ) 72.2 39.0 Total provision for income taxes current (384.5 ) (643.5 ) (423.9 ) Total provision for income taxes deferred 78.5 291.9 232.2 Provision for income taxes (306.0 ) (351.6 ) (191.7 ) 1. In 2017 and 2018 , Provision for income taxes deferred included the tax expense related to changes in the uncertain tax positions, which has been corrected into Provision for income taxes current. The impact is a reclassification for 2018 of €57.0 million from Provision from income taxes deferred to Provision from income taxes current, which is split €50.4 million from Netherlands and €6.6 million from Foreign. The impact is a reclassification for 2017 of €17.5 million from Provision from income taxes deferred to Provision from income taxes current, which includes €6.3 million from Netherlands and €11.2 million from Foreign . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . Income taxes recognized directly in shareholders’ equity (including OCI) are as follows: Income tax recognized in shareholders’ equity 2017 2018 2019 (in millions) € € € Current tax OCI (financial instruments) (2.3 ) (1.4 ) (1.0 ) Tax benefit from share-based payments — — — Deferred tax OCI (equity method investments) — (0.9 ) (6.1 ) Total income tax recognized in shareholders’ equity (2.3 ) (2.3 ) (7.1 ) |
Reconciliation Between (Provision for) Benefit from Income Taxes | The reconciliation of the provision for income taxes is as follows: Year ended December 31 2017 2018 2019 (in millions) € % 1 € % 1 € % 1 Income before income taxes 2,389.4 100.0 % 2,937.0 100.0 % 2,765.8 100.0 % Income tax provision based on ASML’s domestic rate (597.4 ) 25.0 % (734.3 ) 25.0 % (691.4 ) 25.0 % Effects of tax rates in foreign jurisdictions 21.0 (0.9 )% 15.4 (0.5 )% 5.0 (0.2 )% Adjustments in respect of tax exempt income 24.0 (1.0 )% 6.2 (0.2 )% 7.2 (0.3 )% Adjustments in respect of tax incentives 263.1 (11.0 )% 311.8 (10.6 )% 351.0 (12.7 )% Adjustments in respect of prior years’ current taxes (38.3 ) 1.6 % (1.2 ) — % 46.7 (1.7 )% Adjustments in respect of prior years’ deferred taxes 40.9 (1.7 )% 3.3 (0.1 )% 9.8 (0.4 )% Movements in the liability for unrecognized tax benefits (17.4 ) 0.7 % (57.2 ) 1.9 % (16.9 ) 0.6 % Tax effects in respect to HMI restructuring — — % 115.3 (3.9 )% 89.8 (3.2 )% Change in valuation allowance (11.9 ) 0.5 % (28.5 ) 1.0 % 7.6 (0.3 )% Equity method investments — — % (14.5 ) 0.5 % (19.7 ) 0.7 % Other (credits) and non tax deductible items 10.0 (0.4 )% 32.1 (1.1 )% 19.2 (0.7 )% Provision for income taxes (306.0 ) 12.8 % (351.6 ) 12.0 % (191.7 ) 6.9 % 1. As a percentage of income before income taxes. |
Liability for Unrecognized Tax Benefits and Deferred Tax Position Recorded on Consolidated Balance Sheets | The liability for unrecognized tax benefits ( including accrued interest and penalties) and total deferred tax position recorded on the Consolidated Balance Sheets is as follows: As of December 31 2018 2019 (in millions) € € Liability for unrecognized tax benefits (208.7 ) (227.1 ) Deferred tax position 193.8 438.0 Deferred and other tax assets (liabilities) (14.9 ) 210.9 |
Reconciliation of Beginning and Ending Balance of Liability for Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of the liability for unrecognized tax benefits (excluding interest and penalties) is as follows: As of December 31 2018 2019 (in millions) € € Balance, January 1 (113.9 ) (140.4 ) Gross increases – tax positions in prior period (27.4 ) (21.3 ) Gross decreases – tax positions in prior period 10.3 2.2 Gross increases – tax positions in current period (21.9 ) (18.9 ) Acquisitions through business combinations — — Settlements — — Lapse of statute of limitations 13.9 28.7 Effect of changes in exchange rates (1.4 ) (1.0 ) Total liability for unrecognized tax benefits (140.4 ) (150.7 ) |
Composition of Deferred Tax Assets and Liabilities Reconciled in Consolidated Balance Sheets | The composition of total deferred tax assets and liabilities reconciled to the classification in the Consolidated Balance Sheets is as follows: Deferred taxes January 1, 2019 Other Consolidated Statements of Operations Effect of changes in exchange rates Income tax recognized in shareholders’ equity December 31, 2019 (in millions) € € € € € € Deferred tax assets: Capitalized R&D expenditures 1.7 — 189.0 2.2 — 192.9 R&D & other credits 70.5 — (11.1 ) 1.4 — 60.8 Inventories 52.9 — (0.2 ) (3.4 ) — 49.3 Deferred revenue 150.3 — (92.4 ) (1.1 ) — 56.8 Accrued and other liabilities 40.5 — 31.4 1.5 — 73.4 Installation and warranty reserve 13.3 — (1.3 ) 0.3 — 12.3 Tax effect carry-forward losses 8.5 — 3.4 0.6 — 12.5 Property, plant and equipment 19.4 — 9.0 4.4 — 32.8 Lease liabilities — — 8.1 — — 8.1 Intangible fixed assets 48.7 — 81.1 — — 129.8 Restructuring and impairment — — — — — — Alternative minimum tax credits — — — — — — Share-based payments 7.7 — 0.6 0.2 — 8.5 Other temporary differences 21.7 — (5.4 ) (2.1 ) 6.1 20.3 Total deferred tax assets, gross 435.2 — 212.2 4.0 6.1 657.5 Valuation allowance 1 (79.2 ) — 7.6 (2.0 ) — (73.6 ) Total deferred tax assets, net 356.0 — 219.8 2.0 6.1 583.9 Deferred tax liabilities: Intangible fixed assets (119.8 ) — 17.9 (2.3 ) — (104.2 ) Goodwill — — (6.6 ) — — (6.6 ) Right-of-use assets — — (8.1 ) — — (8.1 ) Property, plant and equipment (25.7 ) — 9.8 0.6 — (15.3 ) Deferred revenue (0.1 ) — (13.0 ) — — (13.1 ) Borrowing costs long-term debt (1.5 ) — — — — (1.5 ) Other temporary differences (15.1 ) 7.4 12.4 (1.8 ) — 2.9 Total deferred tax liabilities (162.2 ) 7.4 12.4 (3.5 ) — (145.9 ) Net deferred tax assets (liabilities) 193.8 7.4 232.2 (1.5 ) 6.1 438.0 Classified as: Deferred tax assets – non-current 236.3 445.3 Deferred tax liabilities – non-current (42.5 ) (7.3 ) Net deferred tax assets (liabilities) 193.8 438.0 1. The valuation allowance disclosed above relates to R&D credits and Tax effect carry-forward losses that may not be realized. Deferred taxes January 1, 2018 Effects of changes in accounting principles Consolidated Statements of Operations Effect of changes in exchange rates Income tax recognized in shareholders’ equity December 31, 2018 (in millions) € € € € € € Deferred tax assets: Capitalized R&D expenditures 3.2 — (1.6 ) 0.1 — 1.7 R&D & other credits 44.1 — 25.2 1.2 — 70.5 Inventories 46.5 — 4.6 1.8 — 52.9 Deferred revenue 21.0 — 128.7 0.6 — 150.3 Accrued and other liabilities 42.7 — (4.4 ) 2.2 — 40.5 Installation and warranty reserve 11.1 — 1.6 0.6 — 13.3 Tax effect carry-forward losses 5.7 — 2.8 — — 8.5 Property, plant and equipment 9.2 8.2 1.8 0.2 — 19.4 Intangible fixed assets — 51.7 (3.0 ) — — 48.7 Restructuring and impairment — — — — — — Alternative minimum tax credits 4.5 — (4.5 ) — — — Share-based payments 7.7 — (0.3 ) 0.3 — 7.7 Other temporary differences 20.1 2.6 (2.3 ) 0.4 0.9 21.7 Total deferred tax assets, gross 215.8 62.5 148.6 7.4 0.9 435.2 Valuation allowance 1 (49.5 ) — (28.5 ) (1.2 ) — (79.2 ) Total deferred tax assets, net 166.3 62.5 120.1 6.2 0.9 356.0 Deferred tax liabilities: Intangible fixed assets (265.1 ) — 149.7 (4.4 ) — (119.8 ) Property, plant and equipment (37.9 ) — 13.3 (1.1 ) — (25.7 ) Deferred revenue (13.2 ) — 13.1 — — (0.1 ) Borrowing costs (1.7 ) — 0.2 — — (1.5 ) Other temporary differences (9.0 ) — (4.5 ) (1.6 ) — (15.1 ) Total deferred tax liabilities (326.9 ) — 171.8 (7.1 ) — (162.2 ) Net deferred tax assets (liabilities) (160.6 ) 62.5 291.9 (0.9 ) 0.9 193.8 Classified as: Deferred tax assets – non-current 31.7 236.3 Deferred tax liabilities – non-current (192.3 ) (42.5 ) Net deferred tax assets (liabilities) (160.6 ) 193.8 1. The valuation allowance disclosed above relates to R&D credits and Tax effect carry-forward losses that may not be realized. |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity - Summary of Shares Repurchased (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accelerated Share Repurchases [Table Text Block] | The following table provides a summary of shares repurchased by ASML in 2019 : Period Total number of shares purchased Average price paid per Share € ) Total number of shares purchased as part of publicly announced plans or programs Maximum value of shares that may yet be purchased under the program € millions) January 24 - 31, 2019 47,400 151.63 47,400 1,346.7 February 1 - 28, 2019 145,001 160.67 192,401 1,323.4 March 1 - 31, 2019 150,956 163.68 343,357 1,298.7 April 1 - 30, 2019 83,791 176.71 427,148 1,283.9 May 1 - 31, 2019 — — 427,148 1,283.9 June 1 - 30, 2019 — — 427,148 1,283.9 July 1 - 31, 2019 145,094 204.60 572,242 1,254.2 August 1 - 31, 2019 336,141 194.30 908,383 1,188.9 September 1 - 30, 2019 284,335 219.26 1,192,718 1,126.5 October 1 - 31, 2019 293,486 230.89 1,486,204 1,058.8 November 1 - 30, 2019 274,093 244.52 1,760,297 991.7 December 1 - 20, 2019 188,511 253.95 1,948,808 943.9 Total 1,948,808 210.38 |
Net Income per Ordinary Share_2
Net Income per Ordinary Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Income per Ordinary Share [Abstract] | |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | The basic and diluted net income per ordinary share has been calculated as follows: Year ended December 31 2017 2018 2019 (in millions, except per share data) € € € Net income 2,066.7 2,591.6 2,592.3 Weighted average number of shares outstanding 429.8 424.9 420.8 Basic net income per ordinary share 4.81 6.10 6.16 Weighted average number of shares outstanding 429.8 424.9 420.8 Plus shares applicable to Options and conditional shares 1.8 1.5 0.9 Dilutive potential ordinary shares 1.8 1.5 0.9 Diluted weighted average number of shares 431.6 426.4 421.6 Diluted net income per ordinary share 1 4.79 6.08 6.15 1. The calculation of diluted net income per ordinary share assumes the exercise of options issued under our stock option plans and the issuance of shares under our share plans for periods in which exercises or issuances would have a dilutive effect. The calculation of diluted net income per ordinary share does not assume exercise of options when exercise would be anti-dilutive. |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Sensitivity [Table Text Block] | The following table represent the foreign currency sensitivity on net income and equity: 2018 2019 (in millions) Impact on net income € Impact on equity € Impact on net income € Impact on equity € US dollar (8.7 ) 28.2 (11.5 ) 30.2 Japanese yen (1.7 ) (4.0 ) 4.2 (0.9 ) Taiwanese dollar (6.5 ) (12.7 ) (6.2 ) — Other currencies (5.9 ) — (4.0 ) — Total (22.8 ) 11.5 (17.5 ) 29.3 |
Schedule of Interest Rate Sensitivity [Table Text Block] | The following table represent the interest rate sensitivity on net income and equity: 2018 2019 (in millions) Impact on net income € Impact on equity € Impact on net income € Impact on equity € Effect of a 1.0% point increase in interest rates 10.3 — 17.2 — |
Summary of Notional Amounts and Estimated Fair Values of Financial Instruments | The following table summarizes the notional amounts and estimated fair values of our derivative financial instruments: As of December 31 2018 2019 (in millions) Notional Fair Value Notional Fair Value Forward foreign exchange contracts 134.1 (2.0 ) 142.6 (0.7 ) Interest rate swaps 3,000.0 56.5 3,000.0 134.3 |
Derivative Financial Instruments Per Category | The following table summarizes our derivative financial instruments per category: As of December 31 2018 2019 (in millions) Assets Liabilities Assets Liabilities Interest rate swaps — cash flow hedges — — — — Interest rate swaps — fair value hedges 88.5 32.0 134.3 — Forward foreign exchange contracts — cash flow hedges 6.5 0.9 2.4 0.6 Forward foreign exchange contracts — net investment hedge — 2.6 — — Forward foreign exchange contracts — no hedge accounting 6.9 11.9 0.8 3.3 Total 101.9 47.4 137.5 3.9 Less non-current portion: Interest rate swaps — fair value hedges 59.7 32.0 103.0 — Total non-current portion 59.7 32.0 103.0 — Total current portion 42.2 15.4 34.5 3.9 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present our financial assets and financial liabilities that are measured at fair value on a recurring basis: As of December 31, 2019 Level 1 Level 2 Level 3 Total (in millions) € € € € Assets measured at fair value Derivative financial instruments 1 — 137.5 — 137.5 Money market funds 2 2,139.7 — — 2,139.7 Short-term investments 3 — 1,185.8 — 1,185.8 Total 2,139.7 1,323.3 — 3,463.0 Liabilities measured at fair value Derivative financial instruments 1 — 3.9 — 3.9 Assets and Liabilities for which fair values are disclosed Long-term debt 4 3,247.7 — — 3,247.7 1. Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps. 2. Money market funds are part of our cash and cash equivalents. See Note 4 Cash and cash equivalents and short-term investments . 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . 4. Long-term debt relates to Eurobonds. See Note 15 Long-term debt and interest and other costs . As of December 31, 2018 Level 1 Level 2 Level 3 Total (in millions) € € € € Assets measured at fair value Derivative financial instruments 1 — 101.9 — 101.9 Money market funds 2 2,342.6 — — 2,342.6 Short-term investments 3 — 913.3 — 913.3 Total 2,342.6 1,015.2 — 3,357.8 Liabilities measured at fair value Derivative financial instruments 1 — 47.4 — 47.4 Assets and Liabilities for which fair values are disclosed Long-term debt 4 3,119.4 — — 3,119.4 1. Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps. 2. Money market funds are part of our cash and cash equivalents. See Note 4 Cash and cash equivalents and short-term investments . 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . 4. Long-term debt relates to Eurobonds. See Note 15 Long-term debt and interest and other costs . |
Related Party Transactions Rela
Related Party Transactions Related Party Revenue and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Classification of funding to Carl Zeiss SMT GmbH | The table below summarizes support provided to Carl Zeiss SMT GmbH, by type: For the year ended 2017 2018 2019 (in millions) € € € Capital expenditures 89.1 191.8 184.1 R&D costs 55.8 74.8 94.2 Supply chain investments 2.6 8.5 4.5 Total support provided 147.5 275.1 282.8 The table below summarizes support provided to Carl Zeiss SMT GmbH, by type: For the year ended 2017 2018 2019 (in millions) € € € Capital expenditures 89.1 191.8 184.1 R&D costs 55.8 74.8 94.2 Supply chain investments 2.6 8.5 4.5 Total support provided 147.5 275.1 282.8 |
Schedule of Related Party Transactions | The total purchases and outstanding balances with Carl Zeiss SMT Holding GmbH & Co. KG and its subsidiaries: Year ended December 31 2017 2018 2019 (in millions) € € € Total purchases 1,141.6 1,401.0 1,502.3 As of December 31 2018 2019 (in millions) € € Advance payments and High-NA capital expenditure support 768.1 814.5 Right-of-use assets - Finance — 107.6 Accounts payable 60.2 127.4 |
General Information _ Summary_4
General Information / Summary of General Accounting Policies - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | Nov. 03, 2016 | |||
Significant Accounting Policies [Line Items] | ||||||||
Legal Costs, Policy [Policy Text Block] | Legal contingencies ASML is party to various legal proceedings generally incidental to our business. ASML also faces exposures from other actual or potential claims and legal proceedings. In addition, ASML’s customers may be subject to claims of infringement from third parties alleging that the ASML equipment used by those customers in the manufacture of semiconductor products, and / or the methods relating to use of the ASML equipment, infringes one or more patents issued to those third parties. If these claims were successful, ASML could be required to indemnify such customers for some or all of the losses incurred or damages assessed against them as a result of that infringement. | |||||||
Commitments and Contingencies, Policy [Policy Text Block] | In connection with proceedings and claims, our management evaluates, based on the relevant facts and legal principles, the likelihood of an unfavorable (or favorable) outcome, and whether the amount of the loss (or gain) can be reasonably estimated. Significant subjective judgments are required in these evaluations, including judgments regarding the validity of asserted claims and the likely outcome of legal and administrative proceedings. The outcome of these proceedings, however, is subject to a number of factors beyond our control, most notably the uncertainty associated with predicting decisions by courts and administrative agencies. In addition, estimates of the potential costs (or gains) associated with legal and administrative proceedings frequently cannot be subjected to any sensitivity analysis, as damage estimates or settlement offers by claimants may bear little or no relation to the eventual outcome. Finally, in any particular proceeding, we may agree to settle or to terminate a claim or proceeding in which we believe that it would ultimately prevail where we believe that doing so, when taken together with other relevant commercial considerations, is more effective than engaging in an expensive and protracted litigation, the outcome of which is uncertain. | |||||||
Long-term Debt | Accounting policy Long-term debt represents debt issued privately without registration with a government authority and is payable to others under the terms of a signed agreement. Long-term debt is initially recognized at fair value. Long-term debt is subsequently measured at amortized cost. Debt is qualified as long-term debt as long as the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Interest accruals and payments relating to Long-term debt are accounted for as part of the “Accrued and other liabilities”. | |||||||
Interest Expense, Policy [Policy Text Block] | Interest and other costs should be accrued and recorded with the passage of time over the agreed term, regardless of when the interest receipt or payment has taken place. | |||||||
Voting Rights Required For Consolidation Of Subsidiaries | 50.00% | |||||||
Right-of-use assets - Operating | € 205.4 | € 137.6 | ||||||
Additional Cash and Cash Equivalent Related Text | P3M | |||||||
Contractual Obligation | [1] | € 8,600.4 | ||||||
Issuance of shares | 27.2 | 21.8 | € 22 | |||||
Fair value of shares issued to participating customers | 28.6 | |||||||
Operating Lease, Liability, Current | 55.6 | 46.3 | ||||||
Operating Lease, Liability, Noncurrent | 153.8 | 93.7 | ||||||
Accounts Receivable, after Allowance for Credit Loss, Noncurrent | 67.8 | 150.7 | ||||||
Stockholders' Equity Attributable to Parent | 12,592.2 | 11,641 | 10,776.4 | € 10,691.1 | € 9,972.4 | |||
Other assets | [2] | 830.4 | 806.1 | |||||
Share Premium [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Issuance of shares | (43.9) | (37.5) | (42.7) | |||||
Fair value of shares issued to participating customers | 28.6 | |||||||
Stockholders' Equity Attributable to Parent | € 3,772 | 3,741.3 | € 3,732.5 | € 3,732.5 | € 3,693.5 | |||
Minimum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Short Term Investments Maturity Period | 3 months | |||||||
Maximum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Short Term Investments Maturity Period | 1 year | |||||||
Zeiss High-NA Funding Commitment [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Contractual Obligation | € 524.8 | [3] | € 795.3 | € 760 | ||||
Carl Zeiss SMT Holding GmbH & Co. KG [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 24.90% | |||||||
[1] | 4. We have excluded unrecognized tax benefits for an amount of €227.1 million as the amounts that will be settled in cash are not known and the timing of any payments is uncertain. | |||||||
[2] | 2. Other assets - non-current includes amounts with related parties of €585.3 million and €533.4 million at December 31, 2019 and 2018 , respectively. | |||||||
[3] | 3. For further details see Note 9 Equity method investments . |
General Information _ Summary_5
General Information / Summary of General Accounting Policies - Net Income per Ordinary Share (Detail) - EUR (€) € / shares in Units, € in Millions, shares in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accounting Policies [Abstract] | ||||
Net income | € 2,592.3 | € 2,591.6 | € 2,066.7 | |
Weighted average number of shares outstanding | 420.8 | 424.9 | 429.8 | |
Basic net income per ordinary share (in EUR per share) | € 6.16 | € 6.10 | € 4.81 | |
Diluted weighted average number of shares | 421.6 | 426.4 | 431.6 | |
Diluted net income per ordinary share (in EUR per share) | [1] | € 6.15 | € 6.08 | € 4.79 |
[1] | 1. The calculation of diluted net income per ordinary share assumes the exercise of options issued under our stock option plans and the issuance of shares under our share plans for periods in which exercises or issuances would have a dilutive effect. The calculation of diluted net income per ordinary share does not assume exercise of options when exercise would be anti-dilutive. |
General Information _ Summary_6
General Information / Summary of General Accounting Policies General Information / Summary of General Accounting Policies - New accounting policies (Details) - EUR (€) € / shares in Units, € in Millions, shares in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cash and cash equivalents | € 3,121.1 | ||||||
Net Sales | € 11,820 | 10,944 | € 8,962.7 | ||||
Cost of Goods and Services Sold | [1] | (6,540.2) | (5,914.8) | (4,942.5) | |||
Gross profit | 5,279.8 | 5,029.2 | 4,020.2 | ||||
Other income | 0 | 0 | 95.8 | ||||
Selling, General and Administrative Expense | (520.5) | (488) | (416.6) | ||||
Income from operations | 2,790.8 | 2,965.3 | 2,439.7 | ||||
Interest and other, net | (25) | (28.3) | (50.3) | ||||
Income before income taxes | 2,765.8 | 2,937 | [2] | 2,389.4 | |||
Income Tax Expense (Benefit) | (191.7) | (351.6) | [2] | (306) | |||
Income (Loss) from Continuing Operations After Tax before Equity Method Investments, Noncontrolling Interest | 2,574.1 | 2,585.4 | 2,083.4 | ||||
Profit (loss) related to equity method investments | (18.2) | (6.2) | 16.7 | ||||
Accumulated other comprehensive income | 285 | ||||||
Net income | € 2,592.3 | € 2,591.6 | € 2,066.7 | ||||
Earnings Per Share, Basic | € 6.16 | € 6.10 | € 4.81 | ||||
Earnings Per Share, Diluted | [3] | € 6.15 | € 6.08 | € 4.79 | |||
Basic | 420.8 | 424.9 | 429.8 | ||||
Weighted Average Number of Shares Outstanding, Diluted | 421.6 | 426.4 | 431.6 | ||||
Proportionate share of OCI from equity method investments | € (19.8) | € (4.8) | € (1) | ||||
Foreign currency translation and effective portion of hedges on net investments | 20.1 | 18.2 | (329) | ||||
Other comprehensive income, net of taxes | (7.2) | 33.5 | (349.7) | ||||
Total comprehensive income, net of taxes | 2,585.1 | 2,625.1 | 1,717 | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 2,585.1 | 2,625.1 | 1,717 | ||||
Short-term investments | 1,185.8 | 913.3 | |||||
Accounts receivable, net | 1,786.8 | 1,498.2 | |||||
Current tax assets | 178.7 | 79.7 | |||||
Contract assets | 231 | 95.9 | |||||
Inventories, net | 3,809.2 | 3,439.5 | |||||
Other assets | [4] | 842.8 | 772.6 | ||||
Total current assets | 12,131.1 | 10,531.4 | |||||
Deferred tax assets | 236.3 | ||||||
Other assets | [5] | 830.4 | 806.1 | ||||
Equity Method Investments | 833 | 915.8 | |||||
Goodwill | 4,541.1 | 4,541.1 | |||||
Other intangible assets, net | 1,104.4 | ||||||
Property, plant and equipment, net | 1,999.3 | 1,589.5 | 1,600.8 | ||||
Right-of-use assets - Operating | 205.4 | 137.6 | |||||
Total non-current assets | 10,498.5 | 9,605.5 | |||||
Total assets | 22,629.6 | 20,136.9 | |||||
Accounts payable | [6] | 1,062.2 | 964 | ||||
Accrued and other liabilities | 1,039.9 | 911.4 | |||||
Current tax liabilities | 65.6 | 187.9 | |||||
Current portion of long-term debt | 0 | ||||||
Contract liabilities | 2,526.4 | 1,728.6 | |||||
Total current liabilities | 4,694.1 | 3,791.9 | |||||
Long-term debt | 3,026.5 | ||||||
Deferred and other tax liabilities | 234.4 | 251.2 | |||||
Contract liabilities | 1,759.6 | 1,224.6 | |||||
Accrued and other liabilities | 241 | 201.7 | |||||
Total non-current liabilities | 5,343.3 | 4,704 | |||||
Total liabilities | 10,037.4 | 8,495.9 | |||||
Issued and outstanding shares | 38.2 | 38.6 | |||||
Share premium | 3,772 | 3,741.3 | |||||
Treasury Stock, Value | 1,019.6 | 1,621.8 | |||||
Retained earnings | 9,523.8 | 9,197.9 | |||||
Stockholders' Equity Attributable to Parent | 12,592.2 | 11,641 | 10,776.4 | € 10,691.1 | € 9,972.4 | ||
Total liabilities and shareholders’ equity | 22,629.6 | 20,136.9 | |||||
Depreciation, Depletion and Amortization | [7] | 448.5 | 422.7 | 417.5 | |||
Impairment | 4.7 | 15.4 | 9 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | (3.1) | (3.6) | (2.8) | ||||
Share-based payments | 74.6 | 46.3 | 53.1 | ||||
Inventory reserves | 221.5 | 218.2 | 120.1 | ||||
Deferred Income Taxes and Tax Credits | (236.8) | (238.5) | (8.4) | ||||
Increase (Decrease) in Accounts Receivable | 255 | (212.4) | 1,128.6 | ||||
Increase (Decrease) in Inventories | 404.7 | 515.7 | 284.1 | ||||
Increase (Decrease) in Other Operating Assets | 199.1 | 404 | 169.4 | ||||
Accounts payable | (12.1) | 97.9 | 266.6 | ||||
Payments to Acquire Property, Plant, and Equipment | [8] | 766.6 | 574 | [9] | 338.9 | ||
Payments to Acquire Intangible Assets | 119.3 | 35.5 | 19.1 | ||||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | 0 | 2.4 | (27) | ||||
Proceeds from (Repayments of) Debt | 0.9 | 5.4 | 1.6 | ||||
Payments to Acquire Equity Method Investments | 0 | 0 | 1,019.7 | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | [7] | 89.2 | |||||
Payments for Repurchase of Common Stock | 410 | 1,146.2 | 500 | ||||
Net proceeds from issuance of shares | 27.2 | 21.8 | 50.6 | ||||
Repayments of Long-term Debt | 3.8 | 2.8 | 243 | ||||
Net cash flows | 406.6 | 856.9 | (619.8) | ||||
Product [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net Sales | 8,996.2 | 8,259.1 | 6,424.4 | ||||
Cost of Goods and Services Sold | (4,676.2) | (4,141.2) | (3,439.9) | ||||
Service and Field Options [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net Sales | 2,823.8 | 2,684.9 | 2,538.3 | ||||
Cost of Goods and Services Sold | € (1,864) | € (1,773.6) | € (1,502.6) | ||||
[1] | 1. Cost of sales includes amounts with related parties of €1,321.8 million , €1,173.7 million and €918.4 million in 2019 , 2018 , and 2017 | ||||||
[2] | 1. In 2017 and 2018 , Provision for income taxes deferred included the tax expense related to changes in the uncertain tax positions, which has been corrected into Provision for income taxes current. The impact is a reclassification for 2018 of €57.0 million from Provision from income taxes deferred to Provision from income taxes current, which is split €50.4 million from Netherlands and €6.6 million from Foreign. The impact is a reclassification for 2017 of €17.5 million from Provision from income taxes deferred to Provision from income taxes current, which includes €6.3 million from Netherlands and €11.2 million from Foreign . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . | ||||||
[3] | 1. The calculation of diluted net income per ordinary share assumes the exercise of options issued under our stock option plans and the issuance of shares under our share plans for periods in which exercises or issuances would have a dilutive effect. The calculation of diluted net income per ordinary share does not assume exercise of options when exercise would be anti-dilutive. | ||||||
[4] | 1. Other assets - current includes amounts with related parties of €215.2 million and €231.2 million at December 31, 2019 and 2018 , respectively. | ||||||
[5] | 2. Other assets - non-current includes amounts with related parties of €585.3 million and €533.4 million at December 31, 2019 and 2018 , respectively. | ||||||
[6] | 4. Accounts Payable includes amounts with related parties of €127.4 million and €60.2 million at December 31, 2019 and 2018 , respectively. | ||||||
[7] | Depreciation and amortization includes depreciation of property, plant and equipment, amortization of intangible assets, and amortization of underwriting commissions and discount related to the bonds and credit facility. | ||||||
[8] | In 2019 , an amount of €184.1 million ( 2018 : €191.6 million , 2017 : €36.5 million ) of the purchase of property, plant and equipment relates to funding provided for tooling to our equity method investment , which is initially recognized as part of the other assets. | ||||||
[9] | In 2018 , an amount of €54.7 million of land and buildings was reclassified to other assets. |
Revenue from Contract with Cu_3
Revenue from Contract with Customer Revenue from Contract with Customer - Net System Sales per Technology (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2019EUR (€)Unit | Dec. 31, 2018EUR (€)Unit | Dec. 31, 2017EUR (€)Unit | |
Disaggregation of Revenue [Line Items] | |||
Net Sales | € 11,820 | € 10,944 | € 8,962.7 |
EUV | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 26 | 18 | 11 |
Net Sales | € 2,799.7 | € 1,880.1 | € 1,084.2 |
ArFi | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 82 | 86 | 76 |
Net Sales | € 4,707.7 | € 4,806.9 | € 4,028.7 |
ArF dry | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 22 | 16 | 13 |
Net Sales | € 401.2 | € 274.3 | € 186.4 |
KrF | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 65 | 78 | 71 |
Net Sales | € 679.7 | € 860.1 | € 743.5 |
i-line | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 34 | 26 | 26 |
Net Sales | € 133.5 | € 98.6 | € 99.7 |
Metrology & Inspection | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 115 | 114 | 95 |
Net Sales | € 274.4 | € 339.1 | € 281.9 |
System sales | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 344 | 338 | 292 |
Net Sales | € 8,996.2 | € 8,259.1 | € 6,424.4 |
Revenue from Contract with Cu_4
Revenue from Contract with Customer Revenue from Contract with Customer - Net System Sales per End-Use (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2019EUR (€)Unit | Dec. 31, 2018EUR (€)Unit | Dec. 31, 2017EUR (€)Unit | |
Disaggregation of Revenue [Line Items] | |||
Net Sales | € 11,820 | € 10,944 | € 8,962.7 |
System sales | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 344 | 338 | 292 |
Net Sales | € 8,996.2 | € 8,259.1 | € 6,424.4 |
System sales | Logic | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 238 | 125 | 145 |
Net Sales | € 6,565.3 | € 3,713.7 | € 3,456.7 |
System sales | Memory | |||
Disaggregation of Revenue [Line Items] | |||
Net system sales in units | Unit | 106 | 213 | 147 |
Net Sales | € 2,430.9 | € 4,545.4 | € 2,967.7 |
Revenue from Contract with Cu_5
Revenue from Contract with Customer Revenue from Contract with Customer - Contract Assets and Liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities | € (4,286) | € (2,953.2) | € (2,152) |
Financing Receivables | 985.6 | 886.2 | |
Contract assets | € 231 | € 95.9 |
Revenue from Contract with Cu_6
Revenue from Contract with Customer Revenue from Contract with Customer - Changes in Contract Assets and Liabilities (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract with Customer, Change in Assets and Liabilities [Roll Forward] | ||
Contract Assets, Balance at beginning of the year | € 95.9 | € 270.4 |
Contract Liabilities, Balance at beginning of the year | 2,953.2 | 2,152 |
Transferred to receivables from contract assets from the beginning of the period | (167.4) | (456.2) |
Revenues recognized during the year, to be invoiced | 68.7 | 192.3 |
Revenue recognition that was included in the contract liability balance at the beginning of the period | (1,528.4) | (1,306.3) |
Changes as a result of cumulative catch-up adjustments arising from changes in estimates | (133.4) | (64.4) |
Remaining performance obligations for which considerations have been received | 2,760.8 | 2,082.5 |
Contract Assets, Transfer between contract assets and liabilities | 233.8 | 89.4 |
Contract Liabilities, Transfer between contract assets and liabilities | 233.8 | 89.4 |
Contract Assets, Balance at end of the year | 231 | 95.9 |
Contract Liabilities, Balance at end of the year | € 4,286 | € 2,953.2 |
Revenue from Contract with Cu_7
Revenue from Contract with Customer Revenue from Contract with Customer - Additional information (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract with Customer Additional Information [Line Items] | ||
Net contract liability | € 4,055 | € 2,857.3 |
Document Period End Date | Dec. 31, 2019 | |
Amount of remaining performance obligations | € 13,200 | € 10,000 |
Percentage expected to be recognized | 55.00% | 66.00% |
Period revenue is expected to be recognized | 12 months | |
Revenue, Remaining Performance Obligation, Amount Adjustment | € 1,500 |
Segment Disclosure - Additional
Segment Disclosure - Additional Information (Detail) € in Millions | 12 Months Ended | ||
Dec. 31, 2019EUR (€)SegmentRate | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 1 | ||
Increase (Decrease) in net system sales in percentage | Rate | 8.00% | ||
Net Sales | € 11,820 | € 10,944 | € 8,962.7 |
Increase (Decrease) in net system sales | 876 | ||
Accounts receivables and finance receivables of three largest customers based on net sales | € 2,191.8 | € 1,491.3 | |
Accounts receivables and finance receivables of three largest customers based on net sales, percentage | 77.20% | 58.80% | |
Document Period End Date | Dec. 31, 2019 | ||
Largest Customer [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | € 4,688.6 | € 2,476.8 | € 2,454.4 |
Largest Customer [Member] | Revenue Benchmark [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales revenue from largest customer as percentage | 39.70% | 22.60% | 27.40% |
System sales | |||
Segment Reporting Information [Line Items] | |||
Net Sales | € 8,996.2 | € 8,259.1 | € 6,424.4 |
Segment Disclosure - Net Sales
Segment Disclosure - Net Sales for New and Used Systems (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net Sales | € 11,820 | € 10,944 | € 8,962.7 |
System sales | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 8,996.2 | 8,259.1 | 6,424.4 |
New systems | System sales | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 8,807.1 | 8,115.6 | 6,332.9 |
Used systems | System sales | |||
Segment Reporting Information [Line Items] | |||
Net Sales | € 189.1 | € 143.5 | € 91.5 |
Segment Disclosure - Net Sale_2
Segment Disclosure - Net Sales and Long-lived Assets by Geographic Region (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Long-lived assets | € 1,999.3 | € 1,589.5 | € 1,600.8 |
Net Sales | 11,820 | 10,944 | 8,962.7 |
Japan [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 6.5 | 8.2 | 3.4 |
Net Sales | 463.2 | 567.6 | 404.3 |
Korea [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 24.1 | 24.6 | 23.2 |
Net Sales | 2,202.1 | 3,725.1 | 3,031.4 |
Singapore [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1.6 | 1.1 | 0.8 |
Net Sales | 120 | 222.5 | 163.7 |
Taiwan [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 131.6 | 96.5 | 88.1 |
Net Sales | 5,357 | 1,989.5 | 2,096.7 |
CHINA | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 21.3 | 16.2 | 4.1 |
Net Sales | 1,377.7 | 1,842.8 | 919.5 |
Rest of Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 0.5 | 0.4 | 3 |
Net Sales | 2.6 | 1.9 | 3.5 |
Netherlands | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,396 | 1,113.8 | 1,186 |
Net Sales | 2.6 | 1.2 | 4 |
Rest of Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 4.3 | 5.1 | 5 |
Net Sales | 314.6 | 631.7 | 921.5 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 413.4 | 323.6 | 287.2 |
Net Sales | € 1,980.2 | € 1,961.7 | € 1,418.1 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-term Investments - Additional Information (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | € 3,121.1 | ||
Restricted cash and cash equivalents | € 0 | 0 | |
Fair Value, Recurring [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Money market funds | 2,139.7 | 2,342.6 | [1] |
Deposits [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 434.8 | 188.2 | |
Interest-Bearing Bank Accounts [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | € 957.8 | € 590.3 | |
[1] | 2. Money market funds are part of our cash and cash equivalents. See Note 4 Cash and cash equivalents and short-term investments . |
Cash and Cash Equivalents and_4
Cash and Cash Equivalents and Short-term Investments - Short-Term Investments (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Short Term Investments [Line Items] | ||||||
Cash and cash equivalents | € 3,121.1 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | € 3,532.3 | 3,121.1 | € 2,259 | € 2,906.9 | ||
Short-term investments | 1,185.8 | 913.3 | ||||
Deposits [Member] | ||||||
Short Term Investments [Line Items] | ||||||
Cash and cash equivalents | 434.8 | 188.2 | ||||
Interest-bearing Deposits [Member] | ||||||
Short Term Investments [Line Items] | ||||||
Cash and cash equivalents | 957.8 | 590.3 | ||||
Fair Value, Recurring [Member] | ||||||
Short Term Investments [Line Items] | ||||||
Money market funds | 2,139.7 | 2,342.6 | [1] | |||
Short-term investments | € 1,185.8 | [2] | € 913.3 | [3] | ||
[1] | 2. Money market funds are part of our cash and cash equivalents. See Note 4 Cash and cash equivalents and short-term investments . | |||||
[2] | 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . | |||||
[3] | 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . |
Accounts Receivable, net - Acco
Accounts Receivable, net - Accounts Receivable (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable, gross | € 1,791.9 | € 1,504.9 |
Allowance for credit losses | (5.1) | (6.7) |
Accounts receivable, net | 1,786.8 | € 1,498.2 |
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 1,300 | |
Transfer of Financial Financial Assets Accounted for as Sales, Amount Derecognized for Unconditional Downpayments | € 700 |
Finance Receivables, net - Comp
Finance Receivables, net - Components of Finance Receivables (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Finance receivables, gross | € 994.4 | € 893.7 |
Unearned interest | (8.8) | (7.5) |
Finance receivables, net | 985.6 | 886.2 |
Current portion of finance receivables, gross | 568.4 | 613.3 |
Current portion of unearned interest | (3.9) | (2.2) |
Non-current portion of finance receivables, net | € 421.1 | € 275.1 |
Finance Receivables, net - Fina
Finance Receivables, net - Finance Receivables Due for Payment (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
2019 | € 568.4 | |
2020 | 257.7 | |
2021 | 168.3 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Finance receivables, gross | € 994.4 | € 893.7 |
Finance Receivables, net - Addi
Finance Receivables, net - Additional Information (Detail) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Sales-type Lease, Selling Profit (Loss) | € 343,900,000 | € 446,500,000 | € 247,400,000 |
Sales-type Lease, Interest Income | 4,700,000 | 4,900,000 | 4,000,000 |
Expected credit losses from finance receivables recorded | € 0 | € 0 | € 0 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Inventory Disclosure [Abstract] | ||||
Service part reclassification | € 312 | |||
Raw materials 1 | [1] | 2,026.3 | € 1,550.3 | |
Work-in-process | 1,505.9 | 1,537.5 | ||
Finished products 1 | [1] | 771.3 | 793 | |
Inventories, gross | 4,303.5 | 3,880.8 | ||
Inventory reserves | (494.3) | (441.3) | € (349.9) | |
Inventories, net | € 3,809.2 | € 3,439.5 | ||
[1] | 1. In 2019 , the presentation of service parts needing to be reworked has been adjusted from Finished products to Raw materials as they are not able to be used in sale of goods or services in their current state. As a result, we have reclassified €312.0 million from Finished products to Raw materials for the previously reported December 31, 2018 balances . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows |
Inventories - Allowance for Obs
Inventories - Allowance for Obsolescence (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Activity in the allowance for obsolescence | |||
Balance at beginning of year | € (441.3) | € (349.9) | |
Additions for the year | (221.5) | (218.2) | € (120.1) |
Effect of changes in exchange rates | (0.5) | 4.2 | |
Utilization of the provision | 169 | 122.6 | |
Balance at end of year | € (494.3) | € (441.3) | € (349.9) |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory [Line Items] | |||
Additions for the year | € (221.5) | € (218.2) | € (120.1) |
Cost of Sales [Member] | |||
Inventory [Line Items] | |||
Additions for the year | (221.5) | (207.9) | (101.3) |
Research and Development Costs [Member] | |||
Inventory [Line Items] | |||
Additions for the year | € 0 | € (10.3) | € (18.8) |
Other Assets - Other Assets (De
Other Assets - Other Assets (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Advance payments to Carl Zeiss SMT GmbH, current | € 215.2 | € 231.1 | |
Prepaid expenses | 372.5 | 299.6 | |
Derivative financial instruments 1 | [1] | 34.5 | 42.2 |
VAT | 89.5 | 116 | |
Other assets | 131.1 | 83.7 | |
Other current assets | [2] | 842.8 | 772.6 |
Derivative Assets, Noncurrent | [1] | 103 | 59.7 |
Deferred Compensation Plan Assets | 55.1 | 43.1 | |
Non-current accounts receivable | 67.8 | 150.7 | |
Other Assets, Noncurrent | 19.2 | 19.2 | |
Other assets | [3] | 830.4 | 806.1 |
Zeiss High-NA Funding Commitment [Member] | |||
Related Party Transaction [Line Items] | |||
Advance payments to Carl Zeiss SMT GmbH, non-current | € 585.3 | € 533.4 | |
[1] | 1. For further details on derivative financial instruments see Note 24 Financial risk management . | ||
[2] | 1. Other assets - current includes amounts with related parties of €215.2 million and €231.2 million at December 31, 2019 and 2018 , respectively. | ||
[3] | 2. Other assets - non-current includes amounts with related parties of €585.3 million and €533.4 million at December 31, 2019 and 2018 , respectively. |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Contract balance related to imec | € 88.8 | € 107.5 |
Prepaid income taxes on intercompany profit, not realized, current | 159.2 | 100.9 |
Zeiss High-NA Funding Commitment [Member] | ||
Related Party Transaction [Line Items] | ||
Advance payments to Carl Zeiss SMT GmbH, non-current | € 585.3 | € 533.4 |
Other Assets - Other Non-Curren
Other Assets - Other Non-Current Assets (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Assets [Abstract] | |||
Derivative financial instruments | [1] | € 103 | € 59.7 |
Compensation plan assets | 55.1 | 43.1 | |
Non-current accounts receivable | 67.8 | 150.7 | |
Other assets | 19.2 | 19.2 | |
Other non-current assets | [2] | € 830.4 | € 806.1 |
[1] | 1. For further details on derivative financial instruments see Note 24 Financial risk management . | ||
[2] | 2. Other assets - non-current includes amounts with related parties of €585.3 million and €533.4 million at December 31, 2019 and 2018 , respectively. |
Equity Method Investments Equ_3
Equity Method Investments Equity Method Investments - Additional Information (Details) - EUR (€) € in Millions | Jun. 29, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 03, 2016 | ||
Schedule of Equity Method Investments [Line Items] | |||||||
Document Period End Date | Dec. 31, 2019 | ||||||
Profit (loss) related to equity method investments | € (18.2) | € (6.2) | € 16.7 | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | [1] | 89.2 | |||||
Zeiss Commitment Consideration already paid During the Year | 282.8 | 275.1 | 147.5 | ||||
Contractual Obligation | [2] | 8,600.4 | |||||
Equity Method Investments | € 833 | 915.8 | |||||
Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 17 years 2 months 12 days | ||||||
Equity Method Investment, Ownership Percentage | 24.90% | ||||||
equity method investment acquisition date | Jun. 29, 2017 | ||||||
Zeiss High-NA Funding Commitment [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Contractual Obligation - Estimated Total Contract Commitment | € 1,242.2 | 1,229.9 | |||||
Contractual Obligation | 524.8 | [3] | 795.3 | € 760 | |||
Liability [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 0 | ||||||
Maximum exposure to loss [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 833 | ||||||
Intercompany profit elimination [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Profit (loss) related to equity method investments | 13.7 | (10.7) | |||||
Dividend Forfeiture [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Profit (loss) related to equity method investments | 24.2 | 0 | |||||
Share of net income (loss) after accounting policy alignment [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Profit (loss) related to equity method investments | (82.8) | (80.9) | |||||
basis difference amortization [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Profit (loss) related to equity method investments | 26.7 | (26.7) | |||||
Inventory step-up release [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Profit (loss) related to equity method investments | 0 | (37.3) | |||||
Zeiss High-NA Funding Commitment [Member] | Assets [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 566.5 | ||||||
Zeiss High-NA Funding Commitment [Member] | Liability [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | (28) | ||||||
Zeiss High-NA Funding Commitment [Member] | Maximum exposure to loss [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 566.5 | ||||||
EUV agreement [Member] | Assets [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 320.9 | ||||||
EUV agreement [Member] | Liability [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 0 | ||||||
EUV agreement [Member] | Maximum exposure to loss [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 320.9 | ||||||
DUV Agreements [Domain] | Assets [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 34.7 | ||||||
DUV Agreements [Domain] | Liability [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 0 | ||||||
DUV Agreements [Domain] | Maximum exposure to loss [Member] | Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 34.7 | ||||||
Land, Buildings and Constructions [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Assets under construction in carrying amount | 286.6 | 79 | |||||
Capital expenditure support provided [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Zeiss Commitment Consideration already paid During the Year | 184.1 | 191.8 | 89.1 | ||||
Research and development support provided [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Zeiss Commitment Consideration already paid During the Year | 94.2 | 74.8 | 55.8 | ||||
Supply chain support provided [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Zeiss Commitment Consideration already paid During the Year | € 4.5 | € 8.5 | € 2.6 | ||||
[1] | Depreciation and amortization includes depreciation of property, plant and equipment, amortization of intangible assets, and amortization of underwriting commissions and discount related to the bonds and credit facility. | ||||||
[2] | 4. We have excluded unrecognized tax benefits for an amount of €227.1 million as the amounts that will be settled in cash are not known and the timing of any payments is uncertain. | ||||||
[3] | 3. For further details see Note 9 Equity method investments . |
Goodwill - Goodwill (Detail)
Goodwill - Goodwill (Detail) € in Millions | Dec. 31, 2019EUR (€) |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | € 4,541.1 |
Goodwill, Ending balance | € 4,541.1 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019EUR (€)Reporting_Unit | Dec. 31, 2018EUR (€) | |
Goodwill [Line Items] | ||
Number of reporting units | Reporting_Unit | 2 | |
Goodwill | € 4,541,100,000 | € 4,541,100,000 |
Impairment charges of goodwill | 0 | |
RU ASML [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 4,078,800,000 | 4,078,800,000 |
RU CLS [Member] | ||
Goodwill [Line Items] | ||
Goodwill | € 462,300,000 | € 462,300,000 |
Other Intangible Assets, net -
Other Intangible Assets, net - Finite-Lived Other Intangible Assets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Cost, Beginning Balance | € 1,602.8 | € 1,560.8 | |
Finite-lived Intangible Assets Acquired | 115.8 | 42 | |
Disposals | (0.2) | 0 | |
Effect of changes in exchange rates | 2.1 | 0 | |
Cost, Ending Balance | 1,720.5 | 1,602.8 | € 1,560.8 |
Accumulated amortization, Beginning Balance | 498.8 | 394.8 | |
Amortization | 115.4 | 103.7 | 105.5 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 0.1 |
Accumulated Amortization, Sale or Disposal of Finite-Lived Intangible Assets | (0.2) | 0 | |
Accumulated amortization, Ending Balance | 616.1 | 498.8 | 394.8 |
Carrying amount | 1,104.4 | 1,104 | |
Accumulated Amortization [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Effect of changes in exchange rates | 2.1 | 0.3 | |
Brands [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Cost, Beginning Balance | 39.2 | 38.2 | |
Finite-lived Intangible Assets Acquired | 0 | 0 | |
Disposals | 0 | 0 | |
Effect of changes in exchange rates | (0.3) | 1 | |
Cost, Ending Balance | 38.9 | 39.2 | 38.2 |
Accumulated amortization, Beginning Balance | 7.4 | 4.8 | |
Amortization | 1.9 | 1.9 | |
Accumulated Amortization, Sale or Disposal of Finite-Lived Intangible Assets | 0 | 0 | |
Accumulated amortization, Ending Balance | 9.2 | 7.4 | 4.8 |
Carrying amount | 29.7 | 31.8 | |
Brands [Member] | Accumulated Amortization [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Effect of changes in exchange rates | (0.1) | 0.7 | |
Intellectual Property [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Cost, Beginning Balance | 68.9 | 61.9 | |
Finite-lived Intangible Assets Acquired | 73.7 | 5 | |
Disposals | 0 | 0 | |
Effect of changes in exchange rates | (0.2) | 2 | |
Cost, Ending Balance | 142.4 | 68.9 | 61.9 |
Accumulated amortization, Beginning Balance | 62.8 | 60 | |
Amortization | 7.8 | 1.2 | |
Accumulated Amortization, Sale or Disposal of Finite-Lived Intangible Assets | 0 | 0 | |
Accumulated amortization, Ending Balance | 70.6 | 62.8 | 60 |
Carrying amount | 71.8 | 6.1 | |
Intellectual Property [Member] | Accumulated Amortization [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Effect of changes in exchange rates | 0 | 1.6 | |
Developed Technology [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Cost, Beginning Balance | 1,199.9 | 1,199.9 | |
Finite-lived Intangible Assets Acquired | 0 | 0 | |
Disposals | 0 | 0 | |
Effect of changes in exchange rates | 0.2 | 0 | |
Cost, Ending Balance | 1,200.1 | 1,199.9 | 1,199.9 |
Accumulated amortization, Beginning Balance | 346.5 | 264.2 | |
Amortization | 82 | 82.1 | |
Accumulated Amortization, Sale or Disposal of Finite-Lived Intangible Assets | 0 | 0 | |
Accumulated amortization, Ending Balance | 428.6 | 346.5 | 264.2 |
Carrying amount | 771.5 | 853.4 | |
Developed Technology [Member] | Accumulated Amortization [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Effect of changes in exchange rates | 0.1 | 0.2 | |
Customer Relationships [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Cost, Beginning Balance | 228.6 | 228.6 | |
Finite-lived Intangible Assets Acquired | 0 | 0 | |
Disposals | 0 | 0 | |
Effect of changes in exchange rates | 0 | 0 | |
Cost, Ending Balance | 228.6 | 228.6 | 228.6 |
Accumulated amortization, Beginning Balance | 70.5 | 57.8 | |
Amortization | 12.7 | 12.7 | |
Accumulated Amortization, Sale or Disposal of Finite-Lived Intangible Assets | 0 | 0 | |
Accumulated amortization, Ending Balance | 83.2 | 70.5 | 57.8 |
Carrying amount | 145.4 | 158.1 | |
Customer Relationships [Member] | Accumulated Amortization [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Effect of changes in exchange rates | 0 | 0 | |
Other [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Cost, Beginning Balance | 66.2 | 32.2 | |
Finite-lived Intangible Assets Acquired | 42.1 | 37 | |
Disposals | (0.2) | 0 | |
Effect of changes in exchange rates | 2.4 | (3) | |
Cost, Ending Balance | 110.5 | 66.2 | 32.2 |
Accumulated amortization, Beginning Balance | 11.6 | 8 | |
Amortization | 11 | 5.8 | |
Accumulated Amortization, Sale or Disposal of Finite-Lived Intangible Assets | (0.2) | 0 | |
Accumulated amortization, Ending Balance | 24.5 | 11.6 | € 8 |
Carrying amount | 86 | 54.6 | |
Other [Member] | Accumulated Amortization [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Effect of changes in exchange rates | € 2.1 | € (2.2) |
Other Intangible Assets, net _2
Other Intangible Assets, net - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | € 115.4 | € 103.7 | € 105.5 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 0.1 |
Other intangible assets not yet available for use | 14.9 | 37 | |
Cost of Sales [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 97.4 | 97.2 | 99.7 |
Research and Development Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 7.5 | 1.3 | 2.1 |
Selling, General and Administrative Expenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | € 10.5 | € 5.2 | € 3.7 |
Other Intangible Assets, net _3
Other Intangible Assets, net - Future Amortization Expenses (Detail) € in Millions | Dec. 31, 2019EUR (€) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | € 120 |
2020 | 120 |
2021 | 117 |
2022 | 109 |
2023 | 102 |
Thereafter | 536.4 |
Amortization expenses | € 1,104.4 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net - Property, Plant and Equipment (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost | |||
Beginning Balance | € 3,706.3 | € 3,433.9 | |
Additions | 673.4 | 382.1 | |
Disposals | (122.6) | (81.5) | |
Net movements to/from PPE | 33.9 | (38.9) | |
Effect of changes in exchange rates | 12 | 10.7 | |
Ending Balance | 4,303 | 3,706.3 | € 3,433.9 |
Accumulated depreciation and impairment | |||
Beginning Balance | 2,116.8 | 1,833.1 | |
Depreciation | 325.3 | 315.4 | 308.2 |
Impairment charges | 4.7 | 15.4 | |
Disposals | (119.5) | (23.3) | |
Net non-cash movements to/from inventory | (28.7) | (27.8) | |
Effect of changes in exchange rates | 5.1 | 4 | |
Ending Balance | 2,303.7 | 2,116.8 | 1,833.1 |
Carrying amount | |||
Carrying amount | 1,999.3 | 1,589.5 | 1,600.8 |
Land and buildings [Member] | |||
Cost | |||
Beginning Balance | 1,709.8 | 1,641.8 | |
Additions | 321 | 119.6 | |
Disposals | (0.3) | (57.2) | |
Net movements to/from PPE | 0 | 0 | |
Effect of changes in exchange rates | 6 | 5.6 | |
Ending Balance | 2,036.5 | 1,709.8 | 1,641.8 |
Accumulated depreciation and impairment | |||
Beginning Balance | 646 | 552.7 | |
Depreciation | 98.5 | 92.8 | |
Impairment charges | 0 | 1 | |
Disposals | (0.2) | (2.5) | |
Net non-cash movements to/from inventory | 0 | 0 | |
Effect of changes in exchange rates | 2 | 2 | |
Ending Balance | 746.3 | 646 | 552.7 |
Carrying amount | |||
Carrying amount | 1,290.2 | 1,063.8 | |
Machinery and Equipment [Member] | |||
Cost | |||
Beginning Balance | 1,305.1 | 1,159.9 | |
Additions | 261.1 | 196.4 | |
Disposals | (17.5) | (16) | |
Net movements to/from PPE | 33.9 | (38.9) | |
Effect of changes in exchange rates | 5.2 | 3.7 | |
Ending Balance | 1,587.8 | 1,305.1 | 1,159.9 |
Accumulated depreciation and impairment | |||
Beginning Balance | 892 | 742.4 | |
Depreciation | 166.7 | 174.8 | |
Impairment charges | 4.7 | 14.4 | |
Disposals | (14.8) | (13.3) | |
Net non-cash movements to/from inventory | (28.7) | (27.8) | |
Effect of changes in exchange rates | 2.8 | 1.5 | |
Ending Balance | 1,022.7 | 892 | 742.4 |
Carrying amount | |||
Carrying amount | 565.1 | 413.1 | |
Leasehold Improvements [Member] | |||
Cost | |||
Beginning Balance | 275.2 | 256.6 | |
Additions | 26.7 | 21.5 | |
Disposals | (1.4) | (3.4) | |
Net movements to/from PPE | 0 | 0 | |
Effect of changes in exchange rates | 0.5 | 0.5 | |
Ending Balance | 301 | 275.2 | 256.6 |
Accumulated depreciation and impairment | |||
Beginning Balance | 260.9 | 244.5 | |
Depreciation | 21.3 | 19.2 | |
Impairment charges | 0 | 0 | |
Disposals | (1.2) | (3) | |
Net non-cash movements to/from inventory | 0 | 0 | |
Effect of changes in exchange rates | 0.3 | 0.2 | |
Ending Balance | 281.3 | 260.9 | 244.5 |
Carrying amount | |||
Carrying amount | 19.7 | 14.3 | |
Furniture, Fixtures and Other Equipment [Member] | |||
Cost | |||
Beginning Balance | 416.2 | 375.6 | |
Additions | 64.6 | 44.6 | |
Disposals | (103.4) | (4.9) | |
Net movements to/from PPE | 0 | 0 | |
Effect of changes in exchange rates | 0.3 | 0.9 | |
Ending Balance | 377.7 | 416.2 | 375.6 |
Accumulated depreciation and impairment | |||
Beginning Balance | 317.9 | 293.5 | |
Depreciation | 38.8 | 28.6 | |
Impairment charges | 0 | 0 | |
Disposals | (103.3) | (4.5) | |
Net non-cash movements to/from inventory | 0 | 0 | |
Effect of changes in exchange rates | 0 | 0.3 | |
Ending Balance | 253.4 | 317.9 | 293.5 |
Carrying amount | |||
Carrying amount | 124.3 | 98.3 | |
Cost of Sales [Member] | |||
Accumulated depreciation and impairment | |||
Depreciation | 196.1 | 191.6 | 195.7 |
Research and Development Costs [Member] | |||
Accumulated depreciation and impairment | |||
Depreciation | 117.2 | 105.9 | 101.7 |
Selling, General and Administrative Expenses [Member] | |||
Accumulated depreciation and impairment | |||
Depreciation | € 12 | € 17.9 | € 10.8 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Land | € 105.7 | € 94.6 | |
Carrying amount | 1,999.3 | 1,589.5 | € 1,600.8 |
Depreciation | 325.3 | 315.4 | € 308.2 |
Land, Buildings and Constructions [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets under construction in carrying amount | 286.6 | 79 | |
Carrying amount | 1,290.2 | 1,063.8 | |
Depreciation | 98.5 | 92.8 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets under construction in carrying amount | 85.4 | 39.1 | |
Carrying amount | 565.1 | 413.1 | |
Depreciation | 166.7 | 174.8 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets under construction in carrying amount | 4.5 | 7.8 | |
Carrying amount | 19.7 | 14.3 | |
Depreciation | 21.3 | 19.2 | |
Furniture, Fixtures and Other Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets under construction in carrying amount | 7.8 | 9.3 | |
Carrying amount | 124.3 | 98.3 | |
Depreciation | € 38.8 | € 28.6 |
Right-of-use assets and lease_3
Right-of-use assets and lease liabilities Right-of-use assets operating lease per category (Details) € in Millions | Dec. 31, 2019EUR (€)lease | Dec. 31, 2018EUR (€) | |
Right-of-use assets operating lease category [Line Items] | |||
Right-of-use assets - Operating | € 205.4 | € 137.6 | |
Right-of-use assets - Finance | [1] | € 118.5 | 0 |
Number of finance lease arrangements recorded in property, plant and equipment | lease | 1 | ||
Properties | |||
Right-of-use assets operating lease category [Line Items] | |||
Right-of-use assets - Operating | € 177 | 105.1 | |
Right-of-use assets - Finance | 92.1 | 0 | |
Cars | |||
Right-of-use assets operating lease category [Line Items] | |||
Right-of-use assets - Operating | 11.9 | 11.9 | |
Right-of-use assets - Finance | 0 | 0 | |
Equipment | |||
Right-of-use assets operating lease category [Line Items] | |||
Right-of-use assets - Operating | 0 | 0 | |
Right-of-use assets - Finance | 26.4 | 0 | |
Warehouses | |||
Right-of-use assets operating lease category [Line Items] | |||
Right-of-use assets - Operating | 8.7 | 14.5 | |
Right-of-use assets - Finance | 0 | 0 | |
Other | |||
Right-of-use assets operating lease category [Line Items] | |||
Right-of-use assets - Operating | 7.8 | 6.1 | |
Right-of-use assets - Finance | € 0 | € 0 | |
[1] | 3. Right-of-use assets - Finance includes amounts with related parties of €107.6 million and €0.0 million at December 31, 2019 and 2018 , respectively. |
Right-of-use assets and lease_4
Right-of-use assets and lease liabilities Right-of-use assets and lease liabilities (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
ROU assets under operating lease arrangement | € 67.8 | ||
Operating Lease, Right-of-Use Asset | 205.4 | € 137.6 | |
Operating, Total Cash Outflow | 73.2 | 67.1 | € 54.5 |
Finance, Total Cash Outflow | € 2.8 | € 0 | € 0 |
Operating, Weighted average remaining lease term (months) | 70 months | 60 months | 57 months |
Finance, Weighted average remaining lease term (months) | 230 months | 0 months | 0 months |
Operating, Weighted average discount rate (%) | 2.20% | 2.10% | 2.20% |
Finance, Weighted average discount rate (%) | 0.70% | 0.00% | 0.00% |
Right-of-use assets and lease_5
Right-of-use assets and lease liabilities Lease liabilities operating leases current and non-current (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Leases [Abstract] | |||
Operating, Current | € 55.6 | € 46.3 | |
Operating, Non-current | 153.8 | 93.7 | |
Operating Lease, Liability | [1] | 209.4 | 140 |
Finance, Current | 0 | 0 | |
Finance, Non-current | 9.5 | 0 | |
Finance, Lease Liabilities | 9.5 | € 0 | |
Operating lease liability increase | € 69.4 | ||
[1] | 2. For further details on lease liabilities see Note 13 Right-of-use assets and lease liabilities . |
Right-of-use assets and lease_6
Right-of-use assets and lease liabilities Depreciation related to operating leases (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation operating leased assets [Line Items] | |||
Depreciation related to operating leases | € 73.2 | € 67.1 | € 54.5 |
Depreciation related to finance leases | 7.3 | 0 | 0 |
Properties | |||
Depreciation operating leased assets [Line Items] | |||
Depreciation related to operating leases | 48.2 | 40.2 | 29.9 |
Depreciation related to finance leases | 2.8 | 0 | 0 |
Cars | |||
Depreciation operating leased assets [Line Items] | |||
Depreciation related to operating leases | 8.1 | 7.4 | 7.1 |
Depreciation related to finance leases | 0 | 0 | 0 |
Equipment | |||
Depreciation operating leased assets [Line Items] | |||
Depreciation related to operating leases | 0 | 0 | 0 |
Depreciation related to finance leases | 4.5 | 0 | 0 |
Warehouses | |||
Depreciation operating leased assets [Line Items] | |||
Depreciation related to operating leases | 4.5 | 7.1 | 5.9 |
Depreciation related to finance leases | 0 | 0 | 0 |
Other | |||
Depreciation operating leased assets [Line Items] | |||
Depreciation related to operating leases | 12.4 | 12.4 | 11.6 |
Depreciation related to finance leases | € 0 | € 0 | € 0 |
Accrued and Other Liabilities -
Accrued and Other Liabilities - Accrued and Other Liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accrued Liabilities and Other Liabilities [Abstract] | ||||
Costs to be paid | € 252.1 | € 154.8 | ||
Personnel related items | 654.6 | 544.4 | ||
Derivative financial instruments 1 | [1] | 3.9 | 47.4 | |
Operating, Lease liabilities | [2] | 209.4 | 140 | |
Liabilities Subject to Compromise, Provision for Expected and Allowed Claims | 30.7 | 160.3 | ||
Standard warranty reserve | 128.4 | 59.8 | € 59.7 | |
Other | 1.8 | 6.4 | ||
Accrued and other liabilities | 1,280.9 | 1,113.1 | ||
Less: non-current portion of accrued and other liabilities | 241 | 201.7 | ||
Current portion of accrued and other liabilities | € 1,039.9 | € 911.4 | ||
[1] | 1. For further details on derivative financial instruments see Note 24 Financial risk management . | |||
[2] | 2. For further details on lease liabilities see Note 13 Right-of-use assets and lease liabilities . |
Accrued and Other Liabilities_2
Accrued and Other Liabilities - Additional Information (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Accrued Liabilities | € 252.1 | € 154.8 |
Accrued and Other Liabilities_3
Accrued and Other Liabilities - Changes in Standard Warranty Reserve (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of year | € 59.8 | € 59.7 |
Additions for the year | 118.5 | 61.9 |
Utilization of the reserve | (50) | (59.8) |
Effect of exchange rates | 0.1 | (2) |
Balance at end of year | € 128.4 | € 59.8 |
Long-term Debt - Components of
Long-term Debt - Components of Long-Term Debt (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Other | € 10.2 | € 9 |
Long-term debt | 3,108.3 | 3,026.5 |
Less: current portion of long-term debt | 0 | |
Current portion of long-term debt | 0 | |
Non-current portion of long-term debt | 3,026.5 | |
Long-term debt | 3,108.3 | 3,026.5 |
0.625 Percent Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 499.5 | 494.5 |
3.375 Percent Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 813.3 | 816 |
1.375 Percent Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 1,007 | 964.6 |
1.625 Percent Senior Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | € 778.3 | € 742.4 |
Long-term Debt - Principal Repa
Long-term Debt - Principal Repayments and Other Borrowing Arrangements (Detail) € in Millions | Dec. 31, 2019EUR (€) |
Debt Instrument [Line Items] | |
Long-term Debt, Repayments of Principal, Non-current | € 3,006.9 |
2020 | 2.8 |
2021 | 2.8 |
2022 | 502.8 |
2023 | 751.3 |
2024 | 0 |
Thereafter | 1,750 |
Long-term debt | € 3,009.7 |
Long-term Debt - Summary of Car
Long-term Debt - Summary of Carrying Amount of Outstanding Eurobonds and Fair Value of Interest Rate Swaps (Detail) - Eurobonds [Member] - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized Costs Amount [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount | € 2,983.2 | € 2,980 | |
Fair Value Adjustment Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount | [1] | € 114.9 | € 37.5 |
[1] | 1. The fair value of the interest rate swaps excludes accrued interest. |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2019EUR (€)Options | Dec. 31, 2018EUR (€) | Nov. 30, 2016EUR (€)Rate | Jul. 07, 2016EUR (€)Rate | Sep. 19, 2013EUR (€)Rate | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | € 700,000,000 | € 700,000,000 | |||
Line of Credit Facility, Number of options for 1-year extension | Options | 2 | ||||
Line of Credit Facility, Available credit facility | € 0 | € 0 | |||
3.375 Percent Senior Notes Due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | € 750,000,000 | ||||
Interest rate on principal amount | Rate | 3.375% | ||||
Redemption price of notes | 100.00% | ||||
Due date of redemption Eurobond | Sep. 19, 2023 | ||||
1.375 Percent Senior Notes Due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | € 1,000,000,000 | ||||
Interest rate on principal amount | Rate | 1.375% | ||||
Redemption price of notes | 100.00% | ||||
Due date of redemption Eurobond | Jul. 7, 2026 | ||||
1.625 Percent Senior Notes Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | € 750,000,000 | ||||
Interest rate on principal amount | Rate | 1.625% | ||||
Redemption price of notes | 100.00% | ||||
Due date of redemption Eurobond | May 28, 2027 | ||||
0.625 Percent Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | € 500,000,000 | ||||
Interest rate on principal amount | Rate | 0.625% | ||||
Redemption price of notes | 100.00% | ||||
Due date of redemption Eurobond | Jul. 7, 2022 |
Long-term Debt - Estimated Fair
Long-term Debt - Estimated Fair Value of Eurobonds (Detail) - Eurobonds [Member] - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Principal amount | € 3,000 | € 3,000 | |
Carrying amount | 3,098.1 | 3,017.5 | |
Long-term debt | [1] | 3,247.7 | 3,119.4 |
Amortized Costs Eurobonds [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount | 2,983.2 | 2,980 | |
Fair Value Adjustment Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount | [2] | € 114.9 | € 37.5 |
[1] | 1. Source: Bloomberg Finance LP. | ||
[2] | 1. The fair value of the interest rate swaps excludes accrued interest. |
Long-term debt, interest and ot
Long-term debt, interest and other costs Long-term Debt - Interest and other net (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long-Term Debt - Interest and Other net [Abstract] | |||
Interest Expense | € 36.6 | € 41.8 | € 57.5 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Contractual Obligations (Detail) - EUR (€) € in Millions | Feb. 18, 2019 | Jan. 23, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 03, 2016 | ||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||
Parental Guarantee Agreement Regarding Real Estate Lease of Subsidiary | € 92.4 | |||||||
Loss Contingency, Loss in Period | 0 | |||||||
Non-committed guarantee facility | € 85 | |||||||
Legal Fees | € 131 | € 0 | ||||||
Binding MOU Agreement Date | Jan. 23, 2019 | |||||||
Royalty Expense | 0.80% | |||||||
Increase (Decrease) in Royalties Payable | P10Y | |||||||
Contractual obligations | [1] | € 8,600.4 | ||||||
1 year | [1] | 4,364.8 | ||||||
2 year | [1] | 702.4 | ||||||
3 year | [1] | 742.9 | ||||||
4 year | [1] | 871.7 | ||||||
5 year | [1] | 55.6 | ||||||
After 5 years | [1] | 1,863 | ||||||
Loss Contingency, Settlement Agreement, Date | Feb. 18, 2019 | |||||||
Zeiss High-NA Funding Commitment [Member] | ||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||
Contractual obligations | 524.8 | [2] | € 795.3 | € 760 | ||||
1 year | [2] | 304.3 | ||||||
2 year | [2] | 214.4 | ||||||
3 year | [2] | 6.1 | ||||||
4 year | [2] | 0 | ||||||
5 year | [2] | 0 | ||||||
After 5 years | [2] | 0 | ||||||
Long-term Debt [Member] | ||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||
Contractual obligations | [3] | 3,303.5 | ||||||
1 year | [3] | 59.2 | ||||||
2 year | [3] | 59 | ||||||
3 year | [3] | 556.1 | ||||||
4 year | [3] | 795.8 | ||||||
5 year | [3] | 26.3 | ||||||
After 5 years | [3] | 1,807.1 | ||||||
Operating Lease Obligations [Member] | ||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||
Contractual obligations | [4] | 209.4 | ||||||
1 year | [4] | 53.5 | ||||||
2 year | [4] | 44.4 | ||||||
3 year | [4] | 31.7 | ||||||
4 year | [4] | 19.1 | ||||||
5 year | [4] | 11.8 | ||||||
After 5 years | [4] | 48.9 | ||||||
Purchase Obligations [Member] | ||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||
Contractual obligations | 4,562.7 | |||||||
1 year | 3,947.8 | |||||||
2 year | 384.6 | |||||||
3 year | 149 | |||||||
4 year | 56.8 | |||||||
5 year | 17.5 | |||||||
After 5 years | € 7 | |||||||
[1] | 4. We have excluded unrecognized tax benefits for an amount of €227.1 million as the amounts that will be settled in cash are not known and the timing of any payments is uncertain. | |||||||
[2] | 3. For further details see Note 9 Equity method investments . | |||||||
[3] | 1. Long-term debt obligations mainly relate to principal amounts and interest payments of our Eurobonds. For the amounts excluding interest expenses and for further details see Note 15 Long-term debt and interest and other costs . | |||||||
[4] | 2. For further details see Note 13 Right-of-use assets and lease liabilities . |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Commitments and Contingencies Disclosure [Abstract] | ||||
Unrecognized Tax Benefits | € 227.1 | € 208.7 | ||
Legal fees Nikon (gross) | 150 | |||
Loss Contingency, Loss in Period | 0 | |||
Legal Fees | 131 | € 0 | ||
Contractual Obligation | [1] | 8,600.4 | ||
Zeiss Commitment Consideration already paid During the Year | 282.8 | € 275.1 | € 147.5 | |
Non-committed guarantee facility | 85 | |||
Non Committed Credit Facility with Subsidiary | 130 | |||
Line of Credit Facility, Maximum Cash Advances Included in Credit Facility | € 75 | |||
Operating Lease, Weighted Average Remaining Lease Term | 10 years | |||
Parental Guarantee Agreement Regarding Real Estate Lease of Subsidiary | € 92.4 | |||
[1] | 4. We have excluded unrecognized tax benefits for an amount of €227.1 million as the amounts that will be settled in cash are not known and the timing of any payments is uncertain. |
Share-based compensation Shar_3
Share-based compensation Share-based payments - Fair Value Assumptions (Detail) - € / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assumptions Calculation Fair Value of Shares [Line Items] | |||
Share price at grant date (in eur per share) | € 199.5 | € 166.9 | € 114.1 |
Vesting period | 2 years 6 months | 2 years 10 months 24 days | 2 years 10 months 24 days |
Dividend yield | 1.10% | 0.80% | 1.10% |
Eurozone | |||
Assumptions Calculation Fair Value of Shares [Line Items] | |||
Risk free interest rate | (0.80%) | (0.40%) | (0.60%) |
US | |||
Assumptions Calculation Fair Value of Shares [Line Items] | |||
Risk free interest rate | (1.80%) | (2.20%) | (1.50%) |
Expected volatility ASML | |||
Assumptions Calculation Fair Value of Shares [Line Items] | |||
Expected volatility | 29.80% | 26.10% | 27.10% |
Expected volatility PHLX index | |||
Assumptions Calculation Fair Value of Shares [Line Items] | |||
Expected volatility | 24.80% | 21.30% | 21.60% |
Share-based compensation Shar_4
Share-based compensation Share-based payments - Expenses (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based payments | € 74.6 | € 46.3 | € 53.1 |
The tax benefit (excluding excess tax benefits) recognized related to the recognized share-based compensation costs in the US | 5.9 | 5.6 | 8.7 |
Total compensation expenses to be incurred for share based remuneration (including share-based payments to the BoM) in future periods | € 95.8 | € 94.2 | € 78.5 |
Weighted average period in which compensation expenses are expected to be recognized | 1 year 7 months 6 days | 1 year 8 months 12 days | 1 year 9 months 18 days |
Share-based compensation Shar_5
Share-based compensation Share-based payments - Summary of Share Plans (Details) € / shares in Units, € in Millions | 12 Months Ended | |||||
Dec. 31, 2019EUR (€)€ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018EUR (€)€ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017EUR (€)€ / shares | Dec. 31, 2017$ / shares | |
EUR-dominated Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | € 58.7 | € 46.4 | € 49.9 | |||
Weighted average fair value of shares granted (in usd/eur per share) | € / shares | € 190.33 | € 161.63 | € 125.16 | |||
US-denominated Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | € 54.9 | € 61.6 | € 53.3 | |||
Weighted average fair value of shares granted (in usd/eur per share) | $ / shares | $ 206.90 | $ 187.98 | $ 130.77 |
Share-based compensation Shar_6
Share-based compensation Share-based payments - Changes Conditional Shares (Details) | 12 Months Ended | |
Dec. 31, 2019€ / sharesshares | Dec. 31, 2019$ / sharesshares | |
EUR-denominated Conditional Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Conditional shares outstanding, beginning (in shares) | 720,827 | 720,827 |
Granted (in shares) | 315,578 | 315,578 |
Vested (in shares) | 304,322 | 304,322 |
Forfeited (in shares) | 50,054 | 50,054 |
Conditional shares outstanding, ending (in shares) | 682,029 | 682,029 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Conditional shares outstanding, beginning (in usd/eur per share) | € / shares | € 120.73 | |
Granted (in usd/eur per share) | € / shares | 190.33 | |
Vested (in usd/eur per share) | € / shares | 116.82 | |
Forfeited (in usd/eur per share) | € / shares | 96.74 | |
Conditional shares outstanding, ending (in usd/eur per share) | € / shares | € 157.48 | |
US-denominated Conditional Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Conditional shares outstanding, beginning (in shares) | 661,182 | 661,182 |
Granted (in shares) | 255,885 | 255,885 |
Vested (in shares) | 282,971 | 282,971 |
Forfeited (in shares) | 55,597 | 55,597 |
Conditional shares outstanding, ending (in shares) | 578,499 | 578,499 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Conditional shares outstanding, beginning (in usd/eur per share) | $ / shares | $ 146.78 | |
Granted (in usd/eur per share) | $ / shares | 206.90 | |
Vested (in usd/eur per share) | $ / shares | 138.04 | |
Forfeited (in usd/eur per share) | $ / shares | 138.43 | |
Conditional shares outstanding, ending (in usd/eur per share) | $ / shares | $ 179.22 |
Share-based compensation Shar_7
Share-based compensation Share-based payments - Stock Options (Details) € / shares in Units, $ / shares in Units, € in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019EUR (€)€ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018EUR (€)€ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017EUR (€)€ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average fair value of stock options granted (in usd/eur per share) | € / shares | € 199.5 | € 166.9 | € 114.1 | ||||||
Employee Stock Option Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period | 3 years | 3 years | |||||||
Stock options expiration period | 10 years | 10 years | |||||||
EUR-denominated Option Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average share price at the exercise date of stock options (in usd/eur per share) | € / shares | € 201.52 | € 169.68 | € 132.67 | ||||||
Aggregate intrinsic value of stock options exercised (in millions) | € | € 4.3 | € 13.6 | € 12.5 | ||||||
Weighted average remaining contractual term of currently exercisable options (in years) | 4 years 1 month 28 days | 4 years 1 month 28 days | 4 years 9 months 3 days | 4 years 9 months 3 days | 3 years 9 months 18 days | 3 years 9 months 18 days | |||
Aggregate intrinsic value of exercisable stock options (in millions) | € | € 17.7 | € 8.9 | € 21 | ||||||
Aggregate intrinsic value of outstanding stock options (in millions) | € | € 17.7 | € 9 | € 21.2 | ||||||
US-denominated Option Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average share price at the exercise date of stock options (in usd/eur per share) | $ / shares | $ 225.70 | $ 201.01 | $ 148.48 | ||||||
Aggregate intrinsic value of stock options exercised (in millions) | $ | $ 2.3 | $ 7.6 | $ 4.8 | ||||||
Weighted average remaining contractual term of currently exercisable options (in years) | 4 years 4 months 24 days | 4 years 4 months 24 days | 5 years 2 months 12 days | 5 years 2 months 12 days | 4 years 5 months 26 days | 4 years 5 months 26 days | |||
Aggregate intrinsic value of exercisable stock options (in millions) | $ | $ 11.8 | $ 5.2 | $ 13.1 | ||||||
Aggregate intrinsic value of outstanding stock options (in millions) | $ | $ 11.8 | $ 5.2 | $ 13.2 |
Share-based compensation Shar_8
Share-based compensation Share-based payments - Changes Stock Options (Details) - 12 months ended Dec. 31, 2019 | € / sharesshares | € / shares$ / sharesshares | $ / sharesshares |
EUR-denominated Option Awards | Euro Member Countries, Euro | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, Outstanding, beginning (in shares) | 116,692 | 116,692 | |
Number of options, Granted (in shares) | 0 | 0 | |
Number of options, Exercised (in shares) | 27,952 | 27,952 | |
Number of options, Forfeited (in shares) | 0 | 0 | |
Number of options, Expired (in shares) | 0 | 0 | |
Number of options, Outstanding, ending (in shares) | 88,740 | 88,740 | |
Number of options, Exercisable (in shares) | 88,740 | 88,740 | 88,740 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted average exercise price per ordinary share, Outstanding, beginning (in usd/eur per share) | € / shares | € 60.49 | ||
Weighted average exercise price per ordinary share, Granted (in usd/eur per share) | € / shares | 0 | ||
Weighted average exercise price per ordinary share, Exercised (in usd/eur per share) | € / shares | 46.90 | ||
Weighted average exercise price per ordinary share, Forfeited (in usd/eur per share) | € / shares | 0 | ||
Weighted average exercise price per ordinary share, Expired (in usd/eur per share) | € / shares | 0 | ||
Weighted average exercise price per ordinary share, Outstanding, ending (in usd/eur per share) | € / shares | 64.80 | ||
Weighted average exercise price per ordinary share (in usd/eur per share) | € / shares | € 64.80 | € 64.80 | |
US-denominated Option Awards | United States of America, Dollars | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, Outstanding, beginning (in shares) | 70,299 | 70,299 | |
Number of options, Granted (in shares) | 0 | 0 | |
Number of options, Exercised (in shares) | 14,750 | 14,750 | |
Number of options, Forfeited (in shares) | 0 | 0 | |
Number of options, Expired (in shares) | 0 | 0 | |
Number of options, Outstanding, ending (in shares) | 55,549 | 55,549 | |
Number of options, Exercisable (in shares) | 55,549 | 55,549 | 55,549 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted average exercise price per ordinary share, Outstanding, beginning (in usd/eur per share) | $ / shares | € 81.43 | ||
Weighted average exercise price per ordinary share, Granted (in usd/eur per share) | $ / shares | 0 | ||
Weighted average exercise price per ordinary share, Exercised (in usd/eur per share) | $ / shares | 72.86 | ||
Weighted average exercise price per ordinary share, Forfeited (in usd/eur per share) | $ / shares | 0 | ||
Weighted average exercise price per ordinary share, Expired (in usd/eur per share) | $ / shares | 0 | ||
Weighted average exercise price per ordinary share, Outstanding, ending (in usd/eur per share) | $ / shares | € 83.71 | ||
Weighted average exercise price per ordinary share (in usd/eur per share) | $ / shares | $ 83.71 |
Share-based compensation Shar_9
Share-based compensation Share-based payments - Outstanding Stock Options (Details) - 12 months ended Dec. 31, 2019 | € / sharesshares | $ / sharesshares |
EUR-denominated Option Awards | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 88,740 | 88,740 |
Weighted average remaining contractual life of outstanding options (years) | 4 years 1 month 28 days | 4 years 1 month 28 days |
EUR-denominated Option Awards | 20 - 25 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 7,260 | 7,260 |
Weighted average remaining contractual life of outstanding options (years) | 24 days | 24 days |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 20 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 25 | |
EUR-denominated Option Awards | 25 - 40 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 8,060 | 8,060 |
Weighted average remaining contractual life of outstanding options (years) | 1 year 8 months 19 days | 1 year 8 months 19 days |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 25 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 40 | |
EUR-denominated Option Awards | 40 - 50 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 9,290 | 9,290 |
Weighted average remaining contractual life of outstanding options (years) | 2 years 9 months 18 days | 2 years 9 months 18 days |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 40 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 50 | |
EUR-denominated Option Awards | 50 - 60 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 7,273 | 7,273 |
Weighted average remaining contractual life of outstanding options (years) | 3 years 11 months 19 days | 3 years 11 months 19 days |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 50 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 60 | |
EUR-denominated Option Awards | 60 - 70 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 15,318 | 15,318 |
Weighted average remaining contractual life of outstanding options (years) | 3 years 11 months 4 days | 3 years 11 months 4 days |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 60 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 70 | |
EUR-denominated Option Awards | 70 - 80 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 14,115 | 14,115 |
Weighted average remaining contractual life of outstanding options (years) | 5 years 4 months 17 days | 5 years 4 months 17 days |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 70 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 80 | |
EUR-denominated Option Awards | 80 - 90 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 13,625 | 13,625 |
Weighted average remaining contractual life of outstanding options (years) | 5 years 10 months 6 days | 5 years 10 months 6 days |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 80 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 90 | |
EUR-denominated Option Awards | 90 - 100 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 13,799 | 13,799 |
Weighted average remaining contractual life of outstanding options (years) | 5 years 8 months 8 days | 5 years 8 months 8 days |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 90 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 100 | |
EUR-denominated Option Awards | 100 - 110 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 0 | 0 |
Weighted average remaining contractual life of outstanding options (years) | 0 years | 0 years |
Range of exercise prices, lower limit (in usd/eur per share) | € / shares | € 100 | |
Range of exercise prices, upper limit (in usd/eur per share) | € / shares | € 110 | |
US-denominated Option Awards | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 55,549 | 55,549 |
Weighted average remaining contractual life of outstanding options (years) | 4 years 4 months 24 days | 4 years 4 months 24 days |
US-denominated Option Awards | 20 - 25 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 0 | 0 |
Weighted average remaining contractual life of outstanding options (years) | 0 years | 0 years |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 20 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 25 | |
US-denominated Option Awards | 25 - 40 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 6,518 | 6,518 |
Weighted average remaining contractual life of outstanding options (years) | 1 year 1 month 6 days | 1 year 1 month 6 days |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 25 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 40 | |
US-denominated Option Awards | 40 - 50 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 562 | 562 |
Weighted average remaining contractual life of outstanding options (years) | 1 year 9 months 18 days | 1 year 9 months 18 days |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 40 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 50 | |
US-denominated Option Awards | 50 - 60 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 2,869 | 2,869 |
Weighted average remaining contractual life of outstanding options (years) | 2 years 8 months 12 days | 2 years 8 months 12 days |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 50 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 60 | |
US-denominated Option Awards | 60 - 70 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 423 | 423 |
Weighted average remaining contractual life of outstanding options (years) | 3 years 1 month 6 days | 3 years 1 month 6 days |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 60 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 70 | |
US-denominated Option Awards | 70 - 80 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 1,059 | 1,059 |
Weighted average remaining contractual life of outstanding options (years) | 3 years 3 months 18 days | 3 years 3 months 18 days |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 70 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 80 | |
US-denominated Option Awards | 80 - 90 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 12,449 | 12,449 |
Weighted average remaining contractual life of outstanding options (years) | 4 years 9 months 18 days | 4 years 9 months 18 days |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 80 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 90 | |
US-denominated Option Awards | 90 - 100 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 21,957 | 21,957 |
Weighted average remaining contractual life of outstanding options (years) | 5 years | 5 years |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 90 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 100 | |
US-denominated Option Awards | 100 - 110 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of outstanding options, Range of exercise prices (in shares) | 9,712 | 9,712 |
Weighted average remaining contractual life of outstanding options (years) | 5 years 8 months 12 days | 5 years 8 months 12 days |
Range of exercise prices, lower limit (in usd/eur per share) | $ / shares | $ 100 | |
Range of exercise prices, upper limit (in usd/eur per share) | $ / shares | $ 110 |
Share-based compensation Sha_10
Share-based compensation Share-based payments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019Rate | |
Employee Umbrella Share Plan | Share-based Payment Arrangement, Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum net amount, percentage of annual gross base salary | 10.00% |
Minimum period for retaining shares or stock option to qualify for bonus | 12 months |
Percentage of bonus on initial participation amount after minimum period for retaining shares or stock options | 20.00% |
Employee benefits Employee be_3
Employee benefits Employee benefits - Bonus Expenses (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Bonus Expenses [Line Items] | ||||
Bonus expense | € 274.2 | € 238.2 | € 221.8 | |
BoM [Member] | ||||
Bonus Expenses [Line Items] | ||||
Bonus expense | [1] | 5.1 | 4.5 | 3.8 |
Other Employees [Domain] | ||||
Bonus Expenses [Line Items] | ||||
Bonus expense | [2] | € 269.1 | € 233.7 | € 218 |
Minimum | ||||
Bonus Expenses [Line Items] | ||||
Short-term incentive calculation percentage | 0.00% | |||
Maximum | ||||
Bonus Expenses [Line Items] | ||||
Short-term incentive calculation percentage | 112.50% | |||
[1] | 1. Includes all members that served on the Board of Management throughout the year. | |||
[2] | 2. Includes all variations of available STI bonus plans of which employees are eligible. |
Employee benefits Employee be_4
Employee benefits Employee benefits - Deferred Compensation Plan (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Cymer compensation plan deferral period | 3 years | ||
Cymer compensation plan expenses | € 0 | € 0 | |
Deferred compensation plan liability | € 56,600,000 | 46,800,000 | |
Compensation plan assets | € 55,100,000 | € 43,100,000 |
Employee benefits Employee be_5
Employee benefits Employee benefits - Pension and Retirement Expenses (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€)PersonPlanCompanyRate | Dec. 31, 2018EUR (€)Rate | Dec. 31, 2017EUR (€) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer Plan, Number of Plans | Plan | 1 | |||
Pension plans based on defined contribution | € 55.9 | € 48 | € 38.4 | |
Multi-employer plan cost | 96.6 | 74 | 62.4 | |
Pension and retirement expenses | € 152.5 | € 122 | € 100.8 | |
Document Period End Date | Dec. 31, 2019 | |||
Netherlands Multiemployer Union Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of full time equivalent employees in multiemployer union plans | Person | 12,572 | |||
Number of companies covered by multiemployer plan | Company | 1,400 | |||
Number of contributing members in multiemployer plans | Person | 161,000 | |||
Required percentage of contributions for multiemployer plan | Rate | 22.70% | 23.00% | ||
Our multiemployer contribution | Rate | 11.70% | 9.60% | ||
Multiemployer plan coverage ratio | Rate | 98.70% | 101.30% | ||
Scenario, Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiple-Employer Plan Accounted for as Multiemployer Plan, Contribution by Participating Entity | € 175 |
Personnel expenses and employ_3
Personnel expenses and employee information - Personnel Expenses for All Payroll Employees (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation Related Costs [Abstract] | |||
Wages and salaries | € 2,124.4 | € 1,777.9 | € 1,492.8 |
Social security expenses | 181.9 | 146.3 | 119.6 |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 152.5 | 122 | 100.8 |
Share-based payments | 74.6 | 46.3 | 53.1 |
Personnel expenses | € 2,533.4 | € 2,092.5 | € 1,766.3 |
Personnel expenses and employ_4
Personnel expenses and employee information - Total Number of Payroll and Temporary Personnel Employed in FTE's Per Sector (Detail) - employee | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel Employed Per Sector [Line Items] | |||
Average Number Of Payroll Employees Employed | 22,192 | 18,204 | 15,136 |
Total employees (in FTEs) | 24,900 | 23,247 | 19,216 |
Customer Support [Member] | |||
Personnel Employed Per Sector [Line Items] | |||
Total employees (in FTEs) | 5,953 | 5,674 | 5,051 |
Sales Sector [Member] | |||
Personnel Employed Per Sector [Line Items] | |||
Total employees (in FTEs) | 624 | 559 | 184 |
Research And Development Sector [Member] | |||
Personnel Employed Per Sector [Line Items] | |||
Total employees (in FTEs) | 10,166 | 9,267 | 7,352 |
Manufacturing & Logistics [Member] | |||
Personnel Employed Per Sector [Line Items] | |||
Total employees (in FTEs) | 5,933 | 5,779 | 4,909 |
Strategic Supply Management Sector [Member] | |||
Personnel Employed Per Sector [Line Items] | |||
Total employees (in FTEs) | 326 | 267 | 203 |
General And Administrative Sector [Member] | |||
Personnel Employed Per Sector [Line Items] | |||
Total employees (in FTEs) | 1,898 | 1,701 | 1,517 |
Temporary FTEs [Member] | |||
Personnel Employed Per Sector [Line Items] | |||
Total employees (in FTEs) | 1,681 | 3,203 | 2,997 |
Payroll FTEs [Member] | |||
Personnel Employed Per Sector [Line Items] | |||
Total employees (in FTEs) | 23,219 | 20,044 | 16,219 |
Netherlands | |||
Personnel Employed Per Sector [Line Items] | |||
Average Number Of Payroll Employees Employed | 11,376 | 8,597 | 7,211 |
Income Taxes - Components of (P
Income Taxes - Components of (Provision for) Benefit from Income Taxes (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Contingency [Line Items] | ||||
Income before taxes, Netherlands | € 2,441.2 | € 2,602 | [1] | € 2,076.6 |
Income before taxes, Foreign | 324.6 | 335 | [1] | 312.8 |
Income before income taxes | 2,765.8 | 2,937 | [1] | 2,389.4 |
Provision for income taxes current | (305.5) | (433.5) | [1] | (349.3) |
Provision for income taxes deferred | 74.8 | 9.7 | [1] | 61.9 |
Provision for income taxes Netherlands | 230.7 | 423.8 | [1] | 287.4 |
Provision for income taxes current | (118.4) | (210.1) | [1] | (35.3) |
Provision for income taxes deferred | 157.4 | 282.3 | [1] | 16.6 |
Provision for income taxes Foreign | 39 | 72.2 | [1] | (18.7) |
Total provision for income taxes current | (423.9) | (643.5) | [1] | (384.5) |
Total provision for income taxes deferred | 232.2 | 291.9 | [1] | 78.5 |
Provision for income taxes | (191.7) | (351.6) | [1] | (306) |
Reclassification to Provision from income taxes current | 423.9 | 643.5 | [1] | 384.5 |
Reclassification to Provision from income taxes current, domestic | 305.5 | 433.5 | [1] | 349.3 |
Reclassification to Provision from income taxes current, foreign | 118.4 | 210.1 | [1] | 35.3 |
Reclassification from Provision for income taxes deferred | (232.2) | (291.9) | [1] | (78.5) |
Reclassification from Provision for income taxes deferred, domestic | (74.8) | (9.7) | [1] | (61.9) |
Reclassification from Provision for income taxes deferred, foreign | € (157.4) | (282.3) | [1] | (16.6) |
Revision Of Prior Period Reclassification Adjustment | ||||
Income Tax Contingency [Line Items] | ||||
Provision for income taxes current | (50.4) | (6.3) | ||
Provision for income taxes deferred | 50.4 | 6.3 | ||
Provision for income taxes current | (6.6) | (11.2) | ||
Provision for income taxes deferred | 6.6 | 11.2 | ||
Total provision for income taxes current | (57) | (17.5) | ||
Total provision for income taxes deferred | 57 | 17.5 | ||
Reclassification to Provision from income taxes current | 57 | 17.5 | ||
Reclassification to Provision from income taxes current, domestic | 50.4 | 6.3 | ||
Reclassification to Provision from income taxes current, foreign | 6.6 | 11.2 | ||
Reclassification from Provision for income taxes deferred | (57) | (17.5) | ||
Reclassification from Provision for income taxes deferred, domestic | (50.4) | (6.3) | ||
Reclassification from Provision for income taxes deferred, foreign | € (6.6) | € (11.2) | ||
[1] | 1. In 2017 and 2018 , Provision for income taxes deferred included the tax expense related to changes in the uncertain tax positions, which has been corrected into Provision for income taxes current. The impact is a reclassification for 2018 of €57.0 million from Provision from income taxes deferred to Provision from income taxes current, which is split €50.4 million from Netherlands and €6.6 million from Foreign. The impact is a reclassification for 2017 of €17.5 million from Provision from income taxes deferred to Provision from income taxes current, which includes €6.3 million from Netherlands and €11.2 million from Foreign . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between (Provision for) Benefit from Income Taxes (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Income before income taxes | € 2,765.8 | € 2,937 | [1] | € 2,389.4 | |
Income tax provision based on ASML’s domestic rate | (691.4) | (734.3) | (597.4) | ||
Effects of tax rates in foreign jurisdictions | 5 | 15.4 | 21 | ||
Adjustments in respect of tax exempt income | 7.2 | 6.2 | 24 | ||
Adjustments in respect of tax incentives | 351 | 311.8 | 263.1 | ||
Adjustments in respect of prior years’ current taxes | 46.7 | (1.2) | (38.3) | ||
Adjustments in respect of prior years’ deferred taxes | 9.8 | 3.3 | 40.9 | ||
Movements in the liability for unrecognized tax benefits | (16.9) | (57.2) | (17.4) | ||
Tax effects in respect to HMI restructuring | 89.8 | 115.3 | 0 | ||
Change in valuation allowance | 7.6 | (28.5) | (11.9) | ||
Equity method investments | (19.7) | (14.5) | 0 | ||
Other (credits) and non tax deductible items | 19.2 | 32.1 | 10 | ||
Provision for income taxes | € (191.7) | € (351.6) | [1] | € (306) | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Income before income taxes (in percentage) | [2] | 100.00% | 100.00% | 100.00% | |
Income tax provision based on ASML's domestic rate (in percentage) | [2] | 25.00% | 25.00% | 25.00% | |
Effects of tax rates in foreign jurisdictions (in percentage) | [2] | (0.20%) | (0.50%) | (0.90%) | |
Adjustments in respect of tax exempt income (in percentage) | [2] | (0.30%) | (0.20%) | (1.00%) | |
Adjustments in respect of tax incentives (in percentage) | [2] | (12.70%) | (10.60%) | (11.00%) | |
Adjustments in respect of prior years' current taxes (in percentage) | [2] | (1.70%) | 0.00% | 1.60% | |
Adjustments in respect of prior years' deferred taxes (in percentage) | [2] | (0.40%) | (0.10%) | (1.70%) | |
Movements in the liability for unrecognized tax benefits (in percentage) | [2] | 0.60% | 1.90% | 0.70% | |
Tax effects in respect of acquisition related items (in percentage) | [2] | (3.20%) | (3.90%) | 0.00% | |
Change in valuation allowance (in percentage) | [2] | (0.30%) | 1.00% | 0.50% | |
Equity method investments (in percentage) | [2] | 0.70% | 0.50% | 0.00% | |
Other credits and non tax deductible items (in percentage) | [2] | (0.70%) | (1.10%) | (0.40%) | |
Provision for income taxes (in percentage) | [2] | 6.90% | 12.00% | 12.80% | |
[1] | 1. In 2017 and 2018 , Provision for income taxes deferred included the tax expense related to changes in the uncertain tax positions, which has been corrected into Provision for income taxes current. The impact is a reclassification for 2018 of €57.0 million from Provision from income taxes deferred to Provision from income taxes current, which is split €50.4 million from Netherlands and €6.6 million from Foreign. The impact is a reclassification for 2017 of €17.5 million from Provision from income taxes deferred to Provision from income taxes current, which includes €6.3 million from Netherlands and €11.2 million from Foreign . The reclassification does not have an impact on the Consolidated Statements of Operations , Consolidated Statements of Comprehensive Income , Consolidated Balance Sheets , Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows . | ||||
[2] | 1. As a percentage of income before income taxes. |
Income Taxes - Income Taxes Rec
Income Taxes - Income Taxes Recognized Directly in Shareholders' Equity (Including OCI) (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
OCI (financial instruments) | € (1) | € (1.4) | € (2.3) |
Tax benefit from share-based payments | 0 | 0 | 0 |
OCI (equity method investments) | (6.1) | (0.9) | 0 |
Total income tax recognized in shareholders’ equity | € (7.1) | € (2.3) | € (2.3) |
Income Taxes - Liability for Un
Income Taxes - Liability for Unrecognized Tax Benefits and Deferred Tax Position Recorded on Consolidated Balance Sheets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | € 34 | ||
Liability for unrecognized tax benefits | (227.1) | € (208.7) | |
Deferred tax position | 438 | 193.8 | |
Deferred and other tax assets (liabilities) | 210.9 | (14.9) | |
Accrued interest and penalties recorded in the Consolidated Balance Sheets | 76.6 | 68.5 | |
Interest and penalties recorded in the Consolidated Statements of Operations | € 9 | € 32.6 | € 4.2 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Balance of Liability for Unrecognized Tax Benefits (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, January 1 | € 140.4 | € 113.9 |
Gross increases – tax positions in prior period | (21.3) | (27.4) |
Gross decreases – tax positions in prior period | 2.2 | 10.3 |
Gross increases – tax positions in current period | (18.9) | (21.9) |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 0 | 0 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 28.7 | 13.9 |
Effect of changes in exchange rates | (1.4) | |
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | (1) | |
Total liability for unrecognized tax benefits | (227.1) | (208.7) |
Total liability for unrecognized tax benefits | € 150.7 | € 140.4 |
Income Taxes - Composition of D
Income Taxes - Composition of Deferred Tax Assets and Liabilities Reconciled in Consolidated Balance Sheets (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Deferred tax assets: | ||||||||
Capitalized R&D expenditures, beginning balance | € 1.7 | € 3.2 | ||||||
R&D credits, beginning balance | 70.5 | 44.1 | ||||||
Inventories, beginning balance | 52.9 | 46.5 | ||||||
Deferred revenue, beginning balance | 150.3 | 21 | ||||||
Accrued and other liabilities, beginning balance | 40.5 | 42.7 | ||||||
Installation and warranty reserve, beginning balance | 13.3 | 11.1 | ||||||
Tax effect carry-forward losses, beginning balance | 8.5 | 5.7 | ||||||
Property, plant and equipment, beginning balance | 19.4 | 9.2 | ||||||
Lease liabilities, beginning balance | 0 | |||||||
Intangible fixed assets, beginning balance | 48.7 | 0 | ||||||
Restructuring and impairment, beginning balance | 0 | 0 | ||||||
Alternative minimum tax credits, beginning balance | 0 | 4.5 | ||||||
Share-based payments, beginning balance | 7.7 | 7.7 | ||||||
Other temporary differences, beginning balance | 21.7 | 20.1 | ||||||
Total deferred tax assets, gross, beginning balance | 435.2 | 215.8 | ||||||
Valuation allowance, beginning balance | [1] | (79.2) | (49.5) | |||||
Total deferred tax assets, net, beginning balance | 356 | 166.3 | ||||||
Capitalized R&D expenditures, Consolidated Statements of Operations | 189 | (1.6) | ||||||
Capitalized R&D expenditures, Effect of changes in exchange rates | 2.2 | 0.1 | ||||||
R&D & other credits, Consolidated Statements of Operations | (11.1) | 25.2 | ||||||
R&D & other credits, Effect of changes in exchange rates | 1.4 | 1.2 | ||||||
Inventories, Consolidated Statements of Operations | (0.2) | 4.6 | ||||||
Inventories, Effect of changes in exchange rates | (3.4) | 1.8 | ||||||
Deferred income, Consolidated Statements of Operations | (92.4) | 128.7 | ||||||
Deferred income, Effect of changes in exchange rates | (1.1) | 0.6 | ||||||
Accrued and other liabilities, Consolidated Statements of Operations | 31.4 | (4.4) | ||||||
Accrued and other liabilities, Effect of changes in exchange rates | 1.5 | 2.2 | ||||||
Installation and warranty reserve, Consolidated Statements of Operations | (1.3) | 1.6 | ||||||
Installation and warranty reserve, Effect of changes in exchange rates | 0.3 | 0.6 | ||||||
Tax effect carry-forward losses, Consolidated Statements of Operations | 3.4 | 2.8 | ||||||
Tax effect carry-forward losses, Effect of changes in exchange rates | 0.6 | |||||||
Property, plant and equipment, Effects of changes in accounting principles | 8.2 | |||||||
Property, plant and equipment, Consolidated Statements of Operations | 9 | 1.8 | ||||||
Property, plant and equipment, Effect of changes in exchange rates | 4.4 | 0.2 | ||||||
Lease liabilities, Consolidated Statements of Operations | 8.1 | |||||||
Intangible fixed assets, Effects of changes in accounting principles | 51.7 | |||||||
Intangible fixed assets, Consolidated Statements of Operations | 81.1 | (3) | ||||||
Alternative minimum tax credits, Consolidated Statements of Operations | (4.5) | |||||||
Share-based payments, Consolidated Statements of Operations | 0.6 | (0.3) | ||||||
Share-based payments, Effect of changes in exchange rates | 0.2 | 0.3 | ||||||
Other temporary differences, Effects of changes in accounting principles | 2.6 | |||||||
Other temporary differences, Consolidated Statements of Operations | (5.4) | (2.3) | ||||||
Other temporary differences, Effect of changes in exchange rates | (2.1) | 0.4 | ||||||
Other temporary differences, Income tax recognized in shareholders' equity | 6.1 | 0.9 | ||||||
Total deferred tax assets, gross, Effects of changes in accounting principles | 62.5 | |||||||
Total deferred tax assets, gross, Consolidated Statements of Operations | 212.2 | 148.6 | ||||||
Total deferred tax assets, gross, Effect of changes in exchange rates | 4 | 7.4 | ||||||
Total deferred tax assets, gross, Income tax recognized in shareholders' equity | 6.1 | 0.9 | ||||||
Valuation allowance, Consolidated Statements of Operations | 7.6 | [2] | (28.5) | [1] | ||||
Valuation allowance, Effect of changes in exchange rates | (2) | [2] | (1.2) | [1] | ||||
Total deferred tax assets, net, Effects of changes in accounting principles | 62.5 | |||||||
Total deferred tax assets, net, Consolidated Statements of Operations | 219.8 | 120.1 | ||||||
Total deferred tax assets, net, Effect of changes in exchange rates | 2 | 6.2 | ||||||
Total deferred tax assets, net, Income tax recognized in shareholders' equity | 6.1 | 0.9 | ||||||
Capitalized R&D expenditures, ending balance | 192.9 | 1.7 | ||||||
R&D credits, ending balance | 60.8 | 70.5 | ||||||
Inventories, ending balance | 49.3 | 52.9 | ||||||
Deferred revenue, ending balance | 56.8 | 150.3 | ||||||
Accrued and other liabilities, ending balance | 73.4 | 40.5 | ||||||
Installation and warranty reserve, ending balance | 12.3 | 13.3 | ||||||
Tax effect carry-forward losses, ending balance | 12.5 | 8.5 | ||||||
Property, plant and equipment, ending balance | 32.8 | 19.4 | ||||||
Lease liabilities, ending balance | 8.1 | 0 | ||||||
Intangible fixed assets, ending balance | 129.8 | 48.7 | ||||||
Restructuring and impairment, ending balance | 0 | 0 | ||||||
Alternative minimum tax credits, ending balance | 0 | 0 | ||||||
Share-based payments, ending balance | 8.5 | 7.7 | ||||||
Other temporary differences, ending balance | 20.3 | 21.7 | ||||||
Total deferred tax assets, gross, ending balance | 657.5 | 435.2 | ||||||
Valuation allowance, ending balance | (73.6) | [2] | (79.2) | [1] | ||||
Total deferred tax assets, net, ending balance | 583.9 | 356 | ||||||
Deferred tax liabilities: | ||||||||
Intangible fixed assets, beginning balance | (119.8) | (265.1) | ||||||
Goodwill, beginning balance | 0 | |||||||
Right-of-use assets, beginning balance | 0 | |||||||
Property, plant and equipment, beginning balance | (25.7) | (37.9) | ||||||
Deferred revenue, beginning balance | (0.1) | (13.2) | ||||||
Borrowing costs long term debt, beginning balance | (1.5) | (1.7) | ||||||
Other temporary differences, beginning balance | (15.1) | (9) | ||||||
Total deferred tax liabilities, beginning balance | (162.2) | (326.9) | ||||||
Net deferred tax assets (liabilities), beginning balance | 193.8 | |||||||
Intangible fixed assets, Consolidated Statement of Operations | 17.9 | 149.7 | ||||||
Intangible fixed assets, Effect of changes in exchange rates | (2.3) | (4.4) | ||||||
Goodwill, Consolidated Statements of Operations | (6.6) | |||||||
Right-of-use assets, Consolidated Statements of Operations | (8.1) | |||||||
Property, plant and equipment, Consolidated Statements of Operations | 9.8 | 13.3 | ||||||
Property, plant and equipment, Effect of changes in exchange rates | 0.6 | (1.1) | ||||||
Deferred revenue, Consolidated Statements of Operations | (13) | 13.1 | ||||||
Borrowing costs long term debt, Consolidated Statements of Operations | 0 | 0.2 | ||||||
Other temporary differences, Other | 7.4 | |||||||
Other, Consolidated Statements of Operations | 12.4 | (4.5) | ||||||
Other, Effect of changes in exchange rates | (1.8) | (1.6) | ||||||
Total deferred tax liabilities, Other | 7.4 | |||||||
Total deferred tax liabilities, Consolidated Statements of Operations | (12.4) | (171.8) | ||||||
Total deferred tax liabilities, Effect of changes in exchange rates | (3.5) | (7.1) | ||||||
Net deferred tax assets (liabilities), other | 7.4 | |||||||
Net deferred tax assets (liabilities), Effects of changes in accounting principles | 62.5 | |||||||
Net deferred tax assets (liabilities), Consolidated Statements of Operations | 232.2 | 291.9 | ||||||
Total deferred tax assets (liabilities), Effect of changes in exchange rates | (1.5) | (0.9) | ||||||
Net deferred tax assets (liabilities), Income tax recognized in shareholders' equity | 6.1 | 0.9 | ||||||
Intangible fixed assets, ending balance | (104.2) | (119.8) | ||||||
Goodwill, beginning balance | (6.6) | 0 | ||||||
Right-of-use assets, ending balance | (8.1) | 0 | ||||||
Property, plant and equipment, ending balance | (15.3) | (25.7) | ||||||
Deferred revenue, ending balance | (13.1) | (0.1) | ||||||
Borrowing costs long term debt, ending balance | (1.5) | (1.5) | ||||||
Other temporary differences, ending balance | 2.9 | (15.1) | ||||||
Total deferred tax liabilities, ending balance | (145.9) | (162.2) | ||||||
Net deferred tax assets (liabilities), ending balance | 438 | 193.8 | ||||||
Net deferred tax assets (liabilities) | € (160.6) | |||||||
Net deferred tax assets (liabilities) | 438 | 193.8 | € 438 | € 193.8 | ||||
Deferred tax assets – non-current | ||||||||
Deferred tax assets: | ||||||||
Total deferred tax assets, net, beginning balance | 236.3 | 31.7 | ||||||
Total deferred tax assets, net, ending balance | € 445.3 | € 236.3 | ||||||
Deferred tax liabilities – non-current | ||||||||
Deferred tax liabilities: | ||||||||
Net deferred tax assets (liabilities) | € (7.3) | € (42.5) | € (192.3) | |||||
[1] | 1. The valuation allowance disclosed above relates to R&D credits and Tax effect carry-forward losses that may not be realized. | |||||||
[2] | 1. The valuation allowance disclosed above relates to R&D credits and Tax effect carry-forward losses that may not be realized. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) € in Millions | Dec. 31, 2019EUR (€) |
Income Tax Disclosure [Line Items] | |
Unrecognized temporary difference | € 193.7 |
With Expiration Date | |
Income Tax Disclosure [Line Items] | |
Carryforward losses | 106.4 |
No Expiration Date | |
Income Tax Disclosure [Line Items] | |
Tax credit carryforward amount | 40 |
With Expiration Date | |
Income Tax Disclosure [Line Items] | |
Tax credit carryforward amount | € 20.8 |
Shareholders' Equity - Share Ca
Shareholders' Equity - Share Capital (Details) - EUR (€) | 12 Months Ended | |||
Dec. 31, 2019 | Nov. 15, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||||
Common stock value authorized | € 126,000,000 | |||
Cumulative Preference Shares; authorized (number of shares) | 700,000,000 | |||
Cumulative Preference Shares; nominal value (in EUR) | € 0.09 | |||
Common Stock, Shares, Outstanding | 421,097,729 | 427,393,592 | ||
Number of issued shares | 431,464,705 | |||
Number of treasury shares | 5,848,998 | 10,368,038 | 4,071,113 | |
Maximum authorization period for issuing shares | 5 years | |||
Maximum authorization period for issuing shares - extension | 5 years | |||
Preferred Stock, Voting Rights | nine votes | |||
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ equity Share capital ASML’s authorized share capital amounts to €126.0 million and is divided into: • 700,000,000 Cumulative Preference Shares with a nominal value of €0.09 each. • 699,999,000 Ordinary Shares with a nominal value of €0.09 each. • 9,000 Ordinary Shares B with a nominal value of €0.01 each. As of December 31, 2019 , 425,659,704 ordinary shares with a nominal value of €0.09 each were issued and fully paid up; this includes 419,810,706 outstanding shares and 5,848,998 treasury shares. As of December 31, 2018 , 431,465,767 ordinary shares with a nominal value of €0.09 each were issued and fully paid up; this includes 421,097,729 outstanding shares and 10,368,038 treasury shares. As of December 31, 2017 , 431,464,705 ordinary shares with a nominal value of €0.09 each were issued and fully paid up; this includes 427,393,592 outstanding shares and 4,071,113 treasury shares. No ordinary shares B and no cumulative preference shares have been issued. Our Board of Management has the power to issue ordinary shares and cumulative preference shares insofar as the Board of Management has been authorized to do so by the General Meeting. The Board of Management requires approval of the Supervisory Board for such an issue. The authorization by the General Meeting can only be granted for a certain period not exceeding 5 years and may be extended for no longer than 5 years on each occasion. If the General Meeting has not authorized the Board of Management to issue shares, the General Meeting will be authorized to issue shares on the Board of Management’s proposal, provided that the Supervisory Board has approved such proposal. Ordinary shares An ordinary share entitles the holder thereof to cast nine votes at the General Meeting. Each ordinary share consists of 900 fractional shares. Fractional shares entitle the holder thereof to a fractional dividend, but do not entitle the holder thereof to voting rights. Only those persons who hold shares directly in the share register in the Netherlands, held by us at our address at 5504 DR Veldhoven, de Run 6501, the Netherlands, or in the New York share register, held by JP Morgan Chase Bank, N.A., P.O. Box 64506, St. Paul, MN 55164-0506, United States, can hold fractional shares. Those who hold ordinary shares through the deposit system under the Dutch Securities Bank Giro Transactions Act (‘Wet giraal effectenverkeer’; the Giro Act) maintained by the Dutch central securities depository Euroclear Nederland or through the Depository Trust Company cannot hold fractional shares. At our 2019 AGM, the Board of Management was authorized from April 24, 2019 through October 24, 2020, subject to the approval of the Supervisory Board, to issue shares and / or rights thereto representing up to a maximum of 5.0% of our issued share capital at April 24, 2019, plus an additional 5.0% of our issued share capital at April 24, 2019 that may be issued in connection with mergers, acquisitions and / or (strategic) alliances. Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, net of income taxes, from the proceeds. Holders of ASML’s ordinary shares have a preemptive right, in proportion to the aggregate nominal amount of the ordinary shares held by them. This preemptive right may be restricted or excluded. Holders of ordinary shares do not have preemptive right with respect to any ordinary shares issued for consideration other than cash or ordinary shares issued to employees. If authorized for this purpose by the General Meeting, the Board of Management has the power, subject to approval of the Supervisory Board, to restrict or exclude the preemptive rights of holders of ordinary shares. At our 2019 AGM, our shareholders authorized the Board of Management through October 24, 2020, subject to approval of the Supervisory Board, to restrict or exclude preemptive rights with respect to holders of ordinary shares up to a maximum of 10.0% of our issued share capital. We may repurchase our issued ordinary shares at any time, subject to compliance with the requirements of Dutch law and our Articles of Association. Any such repurchases are and remain subject to the approval of the Supervisory Board and the authorization by the General Meeting, which authorization may not be for more than 18 months. At the 2019 AGM, the Board of Management has been authorized, subject to Supervisory Board approval, to repurchase through October 24, 2020, up to a maximum of two times 10.0% of our issued share capital at April 24, 2019, at a price between the nominal value of the ordinary shares purchased and 110.0% of the market price of these securities on Euronext Amsterdam or NASDAQ. Ordinary shares B Our Articles of Association provide for 9,000 ordinary shares B with a nominal value of €0.01 . Each ordinary share B entitles the holder thereof to cast one vote at the General Meeting. No ordinary shares B have been issued. Cumulative preference shares In 1998, we granted the Preference Share Option to the Foundation. This option was amended and extended in 2003 and 2007. A third amendment to the option agreement between the Foundation and ASML became effective on January 1, 2009, to clarify the procedure for the repurchase and cancellation of the preference shares when issued. The nominal value of the cumulative preference shares amounts to €0.09 and the number of cumulative preference shares included in the authorized share capital is 700,000,000 . A cumulative preference share entitles the holder thereof to cast nine votes in the General Meeting. The Foundation may exercise the Preference Share Option in situations where, in the opinion of the Board of Directors of the Foundation, ASML’s interests, ASML’s business or the interests of ASML’s stakeholders are at stake. This may be the case if a public bid for ASML’s shares has been announced or has been made, or the justified expectation exists that such a bid will be made without any agreement having been reached in relation to such a bid with ASML. The same may apply if one shareholder, or more shareholders acting in concert, acquire or hold a substantial percentage of ASML’s issued ordinary shares without making an offer to acquire all outstanding shares or if, in the opinion of the Board of Directors of the Foundation, the (attempted) exercise of the voting rights by one shareholder or more shareholders, acting in concert, is materially in conflict with ASML’s interests, ASML’s business or ASML’s stakeholders. The objectives of the Foundation are to look after the interests of ASML and of the enterprises maintained by ASML and of the companies which are affiliated in a group with ASML, in such a way that the interests of ASML, of those enterprises and of all parties concerned are safeguarded in the best possible way, and influences in conflict with these interests which might affect the independence or the identity of ASML and those companies are deterred to the best of the Foundation’s ability, and everything related to the above or possibly conductive thereto. The Foundation seeks to realize its objects by the acquiring and holding of cumulative preference shares in the capital of ASML and by exercising the rights attached to these shares, particularly the voting rights attached to these shares. The Preference Share Option gives the Foundation the right to acquire a number of cumulative preference shares as the Foundation will require, provided that the aggregate nominal value of such number of cumulative preference shares shall not exceed the aggregate nominal value of the ordinary shares that have been issued at the time of exercise of the Preference Share Option for a subscription price equal to their nominal value. Only one-fourth of the subscription price would be payable at the time of initial issuance of the cumulative preference shares, with the other three-fourths of the nominal value only being payable when we call up this amount. Exercise of the Preference Share Option could effectively dilute the voting power of the outstanding ordinary shares by one-half. Cancellation and repayment of the issued cumulative preference shares by ASML requires the authorization by the General Meeting of a proposal to do so by the Board of Management approved by the Supervisory Board. If the Preference Share Option is exercised and as a result cumulative preference shares are issued, ASML, at the request of the Foundation, will initiate the repurchase or cancellation of all cumulative preference shares held by the Foundation. In that case ASML is obliged to effect the repurchase and cancellation respectively as soon as possible. A cancellation will result in a repayment of the amount paid and exemption from the obligation to pay up on the cumulative preference shares. A repurchase of the cumulative preference shares can only take place when such shares are fully paid up. If the Foundation does not request ASML to repurchase or cancel all cumulative preference shares held by the Foundation within 20 months after issuance of these shares, we will be obliged to convene a General Meeting in order to decide on a repurchase or cancellation of these shares. The Foundation is independent of ASML. The Board of Directors of the Foundation comprises four independent members from the Netherlands’ business and academic communities. The current members of the Foundation’s Board of Directors are: Mr A.P.M. van der Poel, Mr S. Perrick, Mr J.M. de Jong and Mr A.H. Lundqvist. Dividend policy ASML aims to distribute a dividend that will be growing over time, paid semi-annually. On an annual basis, the Board of Management, upon prior approval from the Supervisory Board, submits a proposal to the AGM with respect to the amount of dividend to be declared with respect to the prior year, taking into account any interim dividend distributions. The dividend proposal and amount of share buybacks in any given year will be subject to the availability of distributable profits, retained earnings and cash, and may be affected by, among other factors, the Board of Management’s views on our potential future liquidity requirements, including for investments in production capacity and working capital requirements, the funding of our R&D programs and for acquisition opportunities that may arise from time to time, and by future changes in applicable income tax and corporate laws. We may also suspend buyback programs from time to time, which would reduce the amount of cash we are able to return to shareholders. Accordingly, the Board of Management may decide to propose not to pay a dividend or pay a lower dividend and may suspend, adjust the amount of or discontinue share buyback programs or we may otherwise fail to complete buyback programs. For 2019 , the proposal to declare a final dividend of €1.35 per ordinary share of €0.09 nominal value will be submitted to the 2020 AGM. Supported by our long-term business plan, we will submit a proposal at the 2020 Annual General Meeting to declare a total dividend for 2019 of €2.40 per ordinary share. Recognizing the interim dividend of €1.05 per share paid November 15, 2019 , this leads to a final dividend of €1.35 per share. The total dividend for 2018 was €2.10 per share. Dividends on ordinary shares are payable out of net income or retained earnings as shown in our Financial Statements as adopted by our AGM, after payment first of (accumulated) dividends out of net income on any issued cumulative preference shares. Purchase of equity securities In addition to dividend payments, we intend to return cash to our shareholders on a regular basis through share buybacks or capital repayment, subject to our actual and anticipated level of liquidity requirements and other relevant factors. On January 17, 2018 , we announced a share buyback program amounting to €2.5 billion , to be executed within the 2018-2019 time frame. The shares to be repurchased under this program were intended to be canceled, with the exception of up to 2.4 million shares, which would be used to cover employee share plans. In 2018, we repurchased 2,400,000 shares to cover employee share plans and 4,644,389 shares for cancellation for a total consideration of €1,146.2 million . No shares were canceled in 2018 . In January 2019, 5,806,366 ordinary shares were canceled , of which 3,468,737 shares were repurchased under the 2016-2017 program. In 2019 , we repurchased 1,948,808 shares for cancellation for a total consideration of 410.0 million . The total number of repurchased shares under the 2018-2019 program was 8,993,197 shares for a total amount of €1,556.1 million and therefore the 2018-2019 program was not completed for the full amount. The remainder of the shares bought back under the 2018-2019 program is intended to be canceled in 2020 , with the exception of up to 2.4 million shares, which were used to cover employee share plans. The share buyback program may be suspended, modified or discontinued at any time. The following table provides a summary of shares repurchased by ASML in 2019 : Period Total number of shares purchased Average price paid per Share € ) Total number of shares purchased as part of publicly announced plans or programs Maximum value of shares that may yet be purchased under the program € millions) January 24 - 31, 2019 47,400 151.63 47,400 1,346.7 February 1 - 28, 2019 145,001 160.67 192,401 1,323.4 March 1 - 31, 2019 150,956 163.68 343,357 1,298.7 April 1 - 30, 2019 83,791 176.71 427,148 1,283.9 May 1 - 31, 2019 — — 427,148 1,283.9 June 1 - 30, 2019 — — 427,148 1,283.9 July 1 - 31, 2019 145,094 204.60 572,242 1,254.2 August 1 - 31, 2019 336,141 194.30 908,383 1,188.9 September 1 - 30, 2019 284,335 219.26 1,192,718 1,126.5 October 1 - 31, 2019 293,486 230.89 1,486,204 1,058.8 November 1 - 30, 2019 274,093 244.52 1,760,297 991.7 December 1 - 20, 2019 188,511 253.95 1,948,808 943.9 Total 1,948,808 210.38 | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Proposed Final and Paid Interim Dividend Per Share | € 2.40 | |||
Ordinary Shares, authorized (number of shares) | 699,999,000 | 699,999,000 | ||
Ordinary Shares, nominal value (in EUR) | € 0.09 | € 0.09 | ||
Common Stock, Shares, Outstanding | 419,810,706 | 427,393,592 | ||
Paid Interim Dividend per Share | € 1.05 | |||
Number of issued shares | 425,659,704 | 431,465,767 | ||
Dividends Payable, Amount Per Share | € 1.35 | € 2.10 | ||
Common Class B [Member] | ||||
Class of Stock [Line Items] | ||||
Ordinary Shares, authorized (number of shares) | 9,000 | |||
Ordinary Shares, nominal value (in EUR) | € 0.01 | |||
Number of issued shares | 0 | |||
Cumulative Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of issued shares | 0 |
Shareholders' Equity - Ordinary
Shareholders' Equity - Ordinary Shares, Ordinary Shares B, Cumulative Preference Shares, and Dividend Policy (Details) - € / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Period In Which Company To Repurchase Or Cancel Cumulative Preference Shares | 20 months | |
Number Of fractional shares | 900 | |
Cumulative Preference Shares; authorized (number of shares) | 700,000,000 | |
Preferred Stock, Voting Rights | nine votes | |
Cumulative Preference Shares; nominal value (in EUR) | € 0.09 | |
Maximum shares authorized for issuance as percentage of issued share capital | 5.00% | |
Additional maximum shares authorized for issuance on business acquisitions and mergers percentage of issued share capital | 5.00% | |
Percentage of issued share capital right to restrict or exclude preemptive rights by board of management | 10.00% | |
Percentage of ASML's stock price on Euronext or NASDAQ | 110.00% | |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Ordinary Shares, nominal value (in EUR) | € 0.09 | € 0.09 |
Common Stock, Voting Rights | nine votes | |
Ordinary Shares, authorized (number of shares) | 699,999,000 | 699,999,000 |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Ordinary Shares, nominal value (in EUR) | € 0.01 | |
Common Stock, Voting Rights | one vote | |
Ordinary Shares, authorized (number of shares) | 9,000 |
Shareholders' Equity Sharehol_2
Shareholders' Equity Shareholders' Equity - Summary of Shares Repurchased (Details) - EUR (€) € / shares in Units, € in Millions | Jan. 31, 2019 | Dec. 20, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Feb. 28, 2019 | Mar. 31, 2019 | Apr. 30, 2019 | May 31, 2019 | Jun. 30, 2019 | Jul. 31, 2019 | Aug. 31, 2019 | Sep. 30, 2019 | Oct. 31, 2019 | Nov. 30, 2019 | Dec. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2019 | Jan. 17, 2018 |
Equity [Abstract] | |||||||||||||||||||||||||||||
Share Buyback Plan | € 2,500 | ||||||||||||||||||||||||||||
Shares of Shares Buyback Plan not Canceled | 2,400,000 | ||||||||||||||||||||||||||||
Treasury Stock, Shares, Acquired | 47,400 | 188,511 | 274,093 | 293,486 | 284,335 | 336,141 | 145,094 | 0 | 0 | 83,791 | 150,956 | 192,401 | 145,001 | 343,357 | 427,148 | 427,148 | 427,148 | 572,242 | 908,383 | 1,192,718 | 1,486,204 | 1,760,297 | 1,948,808 | 1,948,808 | 2,400,000 | 3,468,737 | 8,993,197 | ||
Maximum value of shares that may yet be purchased under program | € 1,346.7 | € 943.9 | € 991.7 | € 1,058.8 | € 1,126.5 | € 1,188.9 | € 1,254.2 | € 1,283.9 | € 1,283.9 | € 1,283.9 | € 1,298.7 | € 1,323.4 | |||||||||||||||||
Average Price Paid per Share of Shares Purchased Under Repurchase Program | € 151.63 | € 253.95 | € 244.52 | € 230.89 | € 219.26 | € 194.30 | € 204.60 | € 0 | € 0 | € 176.71 | € 163.68 | € 160.67 | € 210.38 | ||||||||||||||||
Treasury shares, cancellation process started during the year | 5,806,366 | 4,644,389 | |||||||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | € 410 | € 1,146.2 | € 500 | € 1,556.1 |
Net Income per Ordinary Share_3
Net Income per Ordinary Share (Details) - EUR (€) € / shares in Units, € in Millions, shares in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net Income per Ordinary Share [Abstract] | ||||
Net income | € 2,592.3 | € 2,591.6 | € 2,066.7 | |
Basic | 420.8 | 424.9 | 429.8 | |
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | € 0.9 | € 1.5 | € 1.8 | |
Earnings Per Share, Basic | € 6.16 | € 6.10 | € 4.81 | |
Weighted Average Number of Shares Outstanding, Diluted | 421.6 | 426.4 | 431.6 | |
Earnings Per Share, Diluted | [1] | € 6.15 | € 6.08 | € 4.79 |
[1] | 1. The calculation of diluted net income per ordinary share assumes the exercise of options issued under our stock option plans and the issuance of shares under our share plans for periods in which exercises or issuances would have a dilutive effect. The calculation of diluted net income per ordinary share does not assume exercise of options when exercise would be anti-dilutive. |
Vulnerability Due to Certain _2
Vulnerability Due to Certain Concentrations Vulnerability Due to Certain Concentrations - Zeiss (Details) | 12 Months Ended | ||
Dec. 31, 2019Rate | Dec. 31, 2018Rate | Dec. 31, 2017Rate | |
Risks and Uncertainties [Abstract] | |||
Aggregate cost of system sales purchased from Carl Zeiss SMT GmbH | 28.30% | 28.30% | 26.60% |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) $ in Millions, ¥ in Billions, $ in Billions | 12 Months Ended | |||||||||||
Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019TWD ($) | Dec. 31, 2019JPY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Dec. 31, 2018JPY (¥) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Fair Value Assets Liabilities Transfers Between Levels Amount | € 0 | € 0 | ||||||||||
Derivative Assets | € 137,500,000 | 101,900,000 | ||||||||||
Derivative instruments release period | 12 months | |||||||||||
Gain (loss) on foreign currency cash flow hedge ineffectiveness | € 0 | 0 | € 0 | |||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 10,700,000 | (11,800,000) | 3,100,000 | |||||||||
Gain (loss) from derivative financial instruments measured at fair value | (12,000,000) | 24,200,000 | 126,400,000 | |||||||||
Available-for-sale Securities, Current | 1,185,800,000 | 913,300,000 | ||||||||||
Derivative financial instruments 1 | [1] | 3,900,000 | 47,400,000 | |||||||||
Goodwill and Intangible Asset Impairment | 0 | 0 | ||||||||||
Net income [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 1 percent point increase in interest rates | 17,200,000 | (10,300,000) | ||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | (17,500,000) | (22,800,000) | ||||||||||
Cost of Sales [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 2,100,000 | 10,900,000 | 12,500,000 | |||||||||
Gain (loss) on financial instruments, net of taxes | 1,800,000 | 9,700,000 | 11,200,000 | |||||||||
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | 0 | 11,900,000 | ||||||||||
Sales [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (1,200,000) | (1,400,000) | € 0 | |||||||||
Forward Foreign Exchange Contracts [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative, Notional Amount | 142,600,000 | 134,100,000 | $ 219.5 | $ 3.8 | ¥ 8.6 | $ 348.6 | $ 8.8 | ¥ 6 | ||||
United States of America, Dollars | Net income [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | (11,500,000) | (8,700,000) | ||||||||||
Japan, Yen | Net income [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | 4,200,000 | (1,700,000) | ||||||||||
Taiwan, New Dollars | Net income [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | (6,200,000) | (6,500,000) | ||||||||||
All Other Types [Member] | Net income [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | 4,000,000 | (5,900,000) | ||||||||||
Equity [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 1 percent point increase in interest rates | 0 | 0 | ||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | 29,300,000 | 11,500,000 | ||||||||||
Equity [Member] | United States of America, Dollars | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | 30,200,000 | 28,200,000 | ||||||||||
Equity [Member] | Japan, Yen | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | 900,000 | 4,000,000 | ||||||||||
Equity [Member] | Taiwan, New Dollars | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | 0 | 12,700,000 | ||||||||||
Equity [Member] | All Other Types [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Sensitivity analysis, impact of 10 percent strengthening of foreign currency against the euro | 0 | 0 | ||||||||||
Fair Value, Recurring [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative Assets | 137,500,000 | [2] | 101,900,000 | [3] | ||||||||
Money market funds | 2,139,700,000 | 2,342,600,000 | [4] | |||||||||
Available-for-sale Securities, Current | 1,185,800,000 | [5] | 913,300,000 | [6] | ||||||||
Assets, Fair Value Disclosure | 3,463,000,000 | 3,357,800,000 | ||||||||||
Derivative financial instruments 1 | 3,900,000 | [2] | 47,400,000 | [3] | ||||||||
Long-term debt | 3,247,700,000 | [7] | 3,119,400,000 | [8] | ||||||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative Assets | 0 | [2] | 0 | [3] | ||||||||
Money market funds | 2,139,700,000 | 2,342,600,000 | [4] | |||||||||
Available-for-sale Securities, Current | 0 | 0 | [6] | |||||||||
Assets, Fair Value Disclosure | 2,139,700,000 | 2,342,600,000 | ||||||||||
Derivative financial instruments 1 | 0 | [2] | 0 | [3] | ||||||||
Long-term debt | 3,247,700,000 | [7] | 3,119,400,000 | [8] | ||||||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative Assets | 137,500,000 | [2] | 101,900,000 | [3] | ||||||||
Money market funds | 0 | 0 | [4] | |||||||||
Available-for-sale Securities, Current | 1,185,800,000 | [5] | 913,300,000 | [6] | ||||||||
Assets, Fair Value Disclosure | 1,323,300,000 | 1,015,200,000 | ||||||||||
Derivative financial instruments 1 | 3,900,000 | [2] | 47,400,000 | [3] | ||||||||
Long-term debt | 0 | [7] | 0 | [8] | ||||||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Derivative Assets | 0 | [2] | 0 | [3] | ||||||||
Money market funds | 0 | 0 | [4] | |||||||||
Available-for-sale Securities, Current | 0 | [5] | 0 | [6] | ||||||||
Assets, Fair Value Disclosure | 0 | 0 | ||||||||||
Derivative financial instruments 1 | 0 | [2] | 0 | [3] | ||||||||
Long-term debt | € 0 | [7] | € 0 | [8] | ||||||||
[1] | 1. For further details on derivative financial instruments see Note 24 Financial risk management . | |||||||||||
[2] | 1. Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps. | |||||||||||
[3] | 1. Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps. | |||||||||||
[4] | 2. Money market funds are part of our cash and cash equivalents. See Note 4 Cash and cash equivalents and short-term investments . | |||||||||||
[5] | 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . | |||||||||||
[6] | 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . | |||||||||||
[7] | 4. Long-term debt relates to Eurobonds. See Note 15 Long-term debt and interest and other costs . | |||||||||||
[8] | 4. Long-term debt relates to Eurobonds. See Note 15 Long-term debt and interest and other costs . |
Financial Risk Management - Sum
Financial Risk Management - Summary of Notional Amounts and Estimated Fair Values of Financial Instruments (Detail) € in Millions, $ in Millions, ¥ in Billions, $ in Billions | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019TWD ($) | Dec. 31, 2019JPY (¥) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018TWD ($) | Dec. 31, 2018JPY (¥) |
Forward Foreign Exchange Contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | € 142.6 | $ 219.5 | $ 3.8 | ¥ 8.6 | € 134.1 | $ 348.6 | $ 8.8 | ¥ 6 |
Forward foreign exchange contracts, fair Value | (0.7) | (2) | ||||||
Interest Rate Swaps [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | 3,000 | 3,000 | ||||||
Interest rate swaps, fair Value | € 134.3 | € 56.5 |
Financial Risk Management - Der
Financial Risk Management - Derivative Financial Instruments Per Category (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Derivative [Line Items] | ||||||
Derivative Assets | € 137.5 | € 101.9 | ||||
Derivative Assets, Noncurrent | [1] | 103 | 59.7 | |||
Derivative Assets, Current | [1] | 34.5 | 42.2 | |||
Derivative Liabilities | [2] | 3.9 | 47.4 | |||
Derivative Liabilities, Noncurrent | 0 | 32 | ||||
Derivative Liabilities, Current | 3.9 | 15.4 | ||||
Available-for-sale Securities, Current | 1,185.8 | 913.3 | ||||
Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 0 | 0 | ||||
Derivative Liabilities | 0 | 0 | ||||
Cash Flow Hedges [Member] | Forward Foreign Exchange Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 2.4 | 6.5 | ||||
Derivative Liabilities | 0.6 | 0.9 | ||||
Net Investment Hedging [Member] | Forward Foreign Exchange Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 0 | 0 | ||||
Derivative Liabilities | 0 | 2.6 | ||||
Fair Value Hedges [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 134.3 | 88.5 | ||||
Derivative Assets, Noncurrent | 103 | 59.7 | ||||
Derivative Liabilities | 0 | 32 | ||||
Derivative Liabilities, Noncurrent | 0 | 32 | ||||
Other Hedges [Member] | Forward Foreign Exchange Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 0.8 | 6.9 | ||||
Derivative Liabilities | 3.3 | 11.9 | ||||
Cost of Sales [Member] | ||||||
Derivative [Line Items] | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 2.1 | 10.9 | € 12.5 | |||
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | 0 | 11.9 | ||||
Sales [Member] | ||||||
Derivative [Line Items] | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (1.2) | (1.4) | € 0 | |||
Fair Value, Recurring [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 137.5 | [3] | 101.9 | [4] | ||
Derivative Liabilities | 3.9 | [3] | 47.4 | [4] | ||
Money Market Funds, at Carrying Value | 2,139.7 | 2,342.6 | [5] | |||
Available-for-sale Securities, Current | 1,185.8 | [6] | 913.3 | [7] | ||
Assets, Fair Value Disclosure | 3,463 | 3,357.8 | ||||
Long-term Debt, Fair Value | 3,247.7 | [8] | 3,119.4 | [9] | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 0 | [3] | 0 | [4] | ||
Derivative Liabilities | 0 | [3] | 0 | [4] | ||
Money Market Funds, at Carrying Value | 2,139.7 | 2,342.6 | [5] | |||
Available-for-sale Securities, Current | 0 | 0 | [7] | |||
Assets, Fair Value Disclosure | 2,139.7 | 2,342.6 | ||||
Long-term Debt, Fair Value | 3,247.7 | [8] | 3,119.4 | [9] | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 137.5 | [3] | 101.9 | [4] | ||
Derivative Liabilities | 3.9 | [3] | 47.4 | [4] | ||
Money Market Funds, at Carrying Value | 0 | 0 | [5] | |||
Available-for-sale Securities, Current | 1,185.8 | [6] | 913.3 | [7] | ||
Assets, Fair Value Disclosure | 1,323.3 | 1,015.2 | ||||
Long-term Debt, Fair Value | 0 | [8] | 0 | [9] | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Assets | 0 | [3] | 0 | [4] | ||
Derivative Liabilities | 0 | [3] | 0 | [4] | ||
Money Market Funds, at Carrying Value | 0 | 0 | [5] | |||
Available-for-sale Securities, Current | 0 | [6] | 0 | [7] | ||
Assets, Fair Value Disclosure | 0 | 0 | ||||
Long-term Debt, Fair Value | € 0 | [8] | € 0 | [9] | ||
[1] | 1. For further details on derivative financial instruments see Note 24 Financial risk management . | |||||
[2] | 1. For further details on derivative financial instruments see Note 24 Financial risk management . | |||||
[3] | 1. Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps. | |||||
[4] | 1. Derivative financial instruments consist of forward foreign exchange contracts and interest rate swaps. | |||||
[5] | 2. Money market funds are part of our cash and cash equivalents. See Note 4 Cash and cash equivalents and short-term investments . | |||||
[6] | 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . | |||||
[7] | 3. Short-term investments consist of deposits with original maturities to the entity holding the investments longer than three months, but less than one year at the date of acquisition. See Note 4 Cash and cash equivalents and short-term investments . | |||||
[8] | 4. Long-term debt relates to Eurobonds. See Note 15 Long-term debt and interest and other costs . | |||||
[9] | 4. Long-term debt relates to Eurobonds. See Note 15 Long-term debt and interest and other costs . |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - EUR (€) | 1 Months Ended | 12 Months Ended | |||||
Feb. 11, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 03, 2016 | |||
Related Party Transaction [Line Items] | |||||||
Zeiss Commitment Consideration already paid During the Year | € 282,800,000 | € 275,100,000 | € 147,500,000 | ||||
Right-of-use assets - Finance | [1] | 118,500,000 | 0 | ||||
Contractual Obligation | [2] | 8,600,400,000 | |||||
Capital expenditure support provided [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Zeiss Commitment Consideration already paid During the Year | 184,100,000 | 191,800,000 | 89,100,000 | ||||
Research and development support provided [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Zeiss Commitment Consideration already paid During the Year | 94,200,000 | 74,800,000 | 55,800,000 | ||||
Supply chain support provided [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Zeiss Commitment Consideration already paid During the Year | 4,500,000 | 8,500,000 | 2,600,000 | ||||
Carl Zeiss SMT Holding GmbH & Co. KG [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Purchases from Related Party | 1,502,300,000 | 1,401,000,000 | € 1,141,600,000 | ||||
Due from Related Parties | 814,500,000 | 768,100,000 | |||||
Right-of-use assets - Finance | 107,600,000 | 0 | |||||
Due to Related Parties | 127,400,000 | 60,200,000 | |||||
Any Director or Officer of ASML or any Associate Thereof [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | 0 | ||||||
Transactions outside the normal course of business | 0 | ||||||
Any Director or Officer of ASML or any Associate Thereof [Member] | Subsequent Event [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Outstanding indebtedness to ASML owed by or owing to any director or officer of ASML or any associate thereof | € 0 | ||||||
Transactions outside the normal course of business | € 0 | ||||||
Zeiss High-NA Funding Commitment [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Contractual Obligation - Estimated Total Contract Commitment | 1,242,200,000 | 1,229,900,000 | |||||
Contractual Obligation | € 524,800,000 | [3] | € 795,300,000 | € 760,000,000 | |||
[1] | 3. Right-of-use assets - Finance includes amounts with related parties of €107.6 million and €0.0 million at December 31, 2019 and 2018 , respectively. | ||||||
[2] | 4. We have excluded unrecognized tax benefits for an amount of €227.1 million as the amounts that will be settled in cash are not known and the timing of any payments is uncertain. | ||||||
[3] | 3. For further details see Note 9 Equity method investments . |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] | 1 Months Ended |
Feb. 11, 2020 | |
Subsequent Event [Line Items] | |
Subsequent events evaluation date | Feb. 11, 2020 |
Subsequent event description | no |
Uncategorized Items - a2019inte
Label | Element | Value | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | € (85,300,000) | [1] |
Treasury Stock [Member] | |||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (557,900,000) | |
Retained Earnings [Member] | |||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 7,226,200,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (85,300,000) | [1] |
AOCI Attributable to Parent [Member] | |||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 251,500,000 | [2] |
Common Stock [Member] | |||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | € 38,800,000 | |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 427,400,000 | |
[1] | As of January 1, 2018, we adopted ASU No. 2016-16 Income Taxes (ASC 740) 'Intra-Entity Transfers of Assets Other Than Inventory', with the impact adjusted to retained earnings as of January 1, 2018. | ||
[2] | As of December 31, 2019 , accumulated OCI consists of €(25.6) million loss relating to our proportionate share of other comprehensive income from equity method investments ( 2018 : €(5.8) million loss ; 2017 : one million loss ), €302.4 million relating to foreign currency translation gain ( 2018 : €282.3 million gain ; 2017 : €264.1 million gain ) and €1.0 million relating to unrealized gains on financial instruments ( 2018 : €8.5 million gains ; 2017 : €(11.6) million losses ). |