ASML – Reconciliation U.S. GAAP – IFRS 1,2

Net income   Three months ended,     Twelve months ended,
Dec 31,   Dec 31, Dec 31,   Dec 31,
2012 2011 2012 2011
(in millions EUR)                    
Net income based on U.S. GAAP 297.7 284.7 1,146.3 1,467.0
Development expenditures (see Note 1) 41.1 25.8 164.8 (2.2)
Share-based payments (see Note 2) (1.4) 0.3 (1.0) (0.3)
Reversal of write-downs (see Note 3) (14.0) 3.4 (7.2) 4.6
Income taxes (see Note 4)   (2.6)   2.8       (0.6)   24.9
Net income based on IFRS 320.8 317.0 1,302.3 1,494.0
 
 
Shareholders’ equity Dec 31, Sep 30, Jul 1, Apr 1, Dec 31,
2012 2012 2012 2012 2011
(in millions EUR)                    
Shareholders’ equity based on U.S. GAAP 4,066.9 6,905.7 3,595.5 3,612.0 3,444.2
Development expenditures (see Note 1) 396.8 356.6 308.7 267.3 233.0
Share-based payments (see Note 2) 4.1 4.1 4.0 3.7 2.7
Reversal of write-downs (see Note 3) - 14.0 14.4 6.5 7.2
Income taxes (see Note 4)   30.4   35.0   36.4   31.4   32.7
Equity based on IFRS 4,498.2 7,315.4 3,959.0 3,920.9 3,719.8

Notes to the reconciliation from U.S. GAAP to IFRS

Note 1 Development expenditures

Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with IAS 38, ASML capitalizes certain development expenditures that are amortized over the expected useful life of the related product generally ranging between one and three years. Amortization starts when the developed product is ready for volume production.

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