XML 262 R56.htm IDEA: XBRL DOCUMENT v3.22.4

Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of (Provision for) Benefit from Income Taxes

The components of the income tax expense are as follows, whereby ‘Income tax expense Netherlands’ represents the total tax expense on taxable income generated by our entities in the Netherlands and ‘Income tax expense Foreign’ represents the total tax expense on taxable income generated by our non-Dutch group entities. Hereby ‘total income tax expense Netherlands’ includes withholding tax expense withheld at source on income paid by non-Dutch entities to the Netherlands.

Year ended December 31 (€, in millions)			2020			2021						2022
Netherlands			3,574.6			5,982.8						5,881.0
Foreign			442.0			722.7						575.1
Income before income taxes			4,016.6			6,705.5						6,456.1
Income tax expense current			(407.7)			(865.0)						(818.4)
Income tax expense deferred			1.4			(28.6)						(44.4)
Income tax expense Netherlands			(406.3)			(893.6)						(862.8)
Income tax expense current			(375.3)			(523.5)						(678.3)
Income tax expense deferred			230.1			395.7						571.2
Income tax expense Foreign			(145.2)			(127.8)						(107.1)
Total income tax expense current			(783.0)			(1,388.5)						(1,496.7)
Total income tax expense deferred			231.5			367.1						526.8
Total income tax expense			(551.5)			(1,021.4)						(969.9)

Current and deferred tax expense can be further broken down into:

Year ended December 31 (€, in millions)			2020			2021						2022
Current year tax expense			(743.7)			(1,367.2)						(1,440.9)
Prior year tax expense			(39.3)			(21.3)						(55.8)
Total current tax expense			(783.0)			(1,388.5)						(1,496.7)

Year ended December 31 (€, in millions)			2020			2021						2022
Changes to recognition of operating losses and tax credits			(56.9)			(37.2)						(41.2)
Prior year tax expense			27.0			(2.4)						79.2
Tax rate changes			15.0			1.5						(1.1)
Origination and reversal of temporary differences, operating losses and tax credits			246.4			405.2						489.9
Total deferred tax expense			231.5			367.1						526.8

Reconciliation Between (Provision for) Benefit from Income Taxes

The reconciliation of the income tax expense from the Dutch statutory rate to the effective income tax rate is as follows:

Year ended December 31 (€, in millions)			2020			%1			2021			%1						2022			%1
Income before income taxes			4,016.6			100.0		%	6,705.5			100.0		%				6,456.1			100.0		%
Income tax expense based on ASML’s domestic rate			(1,004.1)			25.0		%	(1,676.4)			25.0		%				(1,665.7)			25.8		%
Effects of tax rates in foreign jurisdictions			0.9			—		%	(4.6)			0.1		%				13.0			(0.2)		%
Adjustments in respect of tax-exempt income			0.2			—		%	—			—		%				—			—		%
Adjustments in respect of tax incentives			510.4			(12.7)		%	727.3			(10.8)		%				741.2			(11.5)		%
Adjustments in respect of prior years’ current taxes			(39.3)			1.0		%	(21.3)			0.3		%				(55.8)			0.9		%
Adjustments in respect of prior years’ deferred taxes			27.0			(0.7)		%	(2.4)			—		%				79.2			(1.2)		%
Movements in the liability for unrecognized tax benefits			(41.0)			1.0		%	(21.6)			0.3		%				(9.9)			0.2		%
Tax effects in respect of acquisition/restructuring related items			—			—		%	35.9			(0.5)		%				—			—		%
Change in valuation allowance			(56.9)			1.4		%	(37.2)			0.6		%				(41.2)			0.6		%
Equity method investments			(20.9)			0.5		%	(46.7)			0.7		%				(38.3)			0.6		%
Effect of change in tax rates			15.0			(0.4)		%	1.5			—		%				(1.1)			—		%
Other (credits) and non-tax deductible items			57.2			(1.4)		%	24.1			(0.4)		%				8.7			(0.1)		%
Income tax expense			(551.5)			13.7		%	(1,021.4)			15.2		%				(969.9)			15.0		%

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 and related accrued interest and penalties and total deferred tax position recorded on the Consolidated Balance Sheets is as follows:

Year ended December 31 (€, in millions)			2020			2021						2022
Liability for unrecognized tax benefits			(200.4)			(205.9)						(215.5)
Deferred tax assets			671.5			1,098.7						1,672.8
Deferred tax liabilities			(37.9)			(34.7)						(51.5)
Deferred and other tax assets (liabilities)			433.2			858.1						1,405.8

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:

Year ended December 31 (€, in millions)			2020			2021						2022
Balance as at January 1			(150.7)			(138.0)						(144.3)
Gross presentation for different tax jurisdictions			(27.3)			—						—
Gross increases – tax positions in prior period			(66.6)			(21.6)						(11.7)
Gross decreases – tax positions in prior period			0.5			8.9						2.0
Gross increases – tax positions in current period			(21.6)			(18.8)						(23.1)
Settlements			106.6			2.5						6.8
Lapse of statute of limitations			14.5			32.0						13.2
Effect of changes in exchange rates			6.6			(9.3)						(2.9)
Total liability for unrecognized tax benefits			(138.0)			(144.3)						(160.0)
Balance of accrued interest and penalties			(62.4)			(61.6)						(55.5)
Total liabilities for unrecognized tax benefits including interest and penalties			(200.4)			(205.9)						(215.5)

Summary of Income Tax Examinations

The years for which tax returns are still open for examination for respective jurisdictions are as follows:

Country			Years
Netherlands			2019-2022
US			2017-2022
Taiwan			2017-2022
South Korea			2019-2022
China			2012-2022

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:

Deferred taxes (€, in millions)			January 1, 2022						Credits and other			Consolidated Statements  of Operations			Income tax recognized in Other Comprehensive Income			Effect of changes in exchange rates						December 31, 2022
Deferred tax assets:
Capitalized R&D expenditures			420.4						—			151.2			—			20.5						592.1
R&D & other tax credit carry forwards			162.7						23.7			20.6			—			6.4						213.4
Inventories			31.5						—			12.5			—			1.2						45.2
Contract liabilities			423.2						—			400.8			—			(3.2)						820.8
Accrued and other liabilities			98.1						—			4.4			—			3.3						105.8
Standard warranty reserve			11.3						—			(4.1)			—			0.9						8.1
Operating loss carry forwards			7.4						—			(2.8)			—			(0.1)						4.5
Property, plant and equipment			18.6						—			1.7			—			(1.4)						18.9
Lease liabilities			23.2						—			3.1			—			1.1						27.4
Other intangible assets			143.5						—			(18.7)			—			—						124.8
Share-based payments			9.6						—			1.2			—			0.6						11.4
Other temporary differences			27.5						—			3.7			(6.5)			(1.4)						23.3
Total deferred tax assets, gross			1,377.0						23.7			573.6			(6.5)			27.9						1,995.7
Valuation allowance 1			(167.6)						—			(41.2)			—			(6.6)						(215.4)
Total deferred tax assets, net			1,209.4						23.7			532.4			(6.5)			21.3						1,780.3
Deferred tax liabilities:
Other intangible assets			(79.9)						—			19.8			—			(5.3)						(65.4)
Goodwill			(20.9)						—			(7.9)			—			—						(28.8)
Right-of-use assets			(23.2)						—			(3.1)			—			(1.1)						(27.4)
Property, plant and equipment			(10.9)						—			1.5			—			(0.4)						(9.8)
Contract liabilities			(7.9)						—			(8.4)			—			—						(16.3)
Long-term debt			(1.5)						—			—			—			—						(1.5)
Other temporary differences			(1.1)						—			(7.5)			(2.1)			0.9						(9.8)
Total deferred tax liabilities			(145.4)						—			(5.6)			(2.1)			(5.9)						(159.0)
Net deferred tax assets (liabilities)			1,064.0						23.7			526.8			(8.6)			15.4						1,621.3
Classified as:
Deferred tax assets – non-current			1,098.7																					1,672.8
Deferred tax liabilities – non-current			(34.7)																					(51.5)
Net deferred tax assets (liabilities)			1,064.0																					1,621.3

1.The valuation allowance disclosed above relates to R&D and other tax credit carry forwards and operating loss carry forwards that may not be realized.

Deferred taxes (€, in millions)			January 1, 2021						Credits and other			Consolidated Statements  of Operations			Income tax recognized in Other Comprehensive Income			Effect of changes in exchange rates						December 31, 2021
Deferred tax assets:
Capitalized R&D expenditures			287.1						—			106.8			—			26.5						420.4
R&D & other tax credit carry forwards			117.2						21.4			16.4			—			7.7						162.7
Inventories			37.2						—			(7.2)			—			1.5						31.5
Contract liabilities			125.2						—			288.0			—			10.0						423.2
Accrued and other liabilities			87.8						—			5.7			—			4.6						98.1
Standard warranty reserve			16.4						—			(6.3)			—			1.2						11.3
Operating loss carry forwards			27.1						—			(19.9)			—			0.2						7.4
Property, plant and equipment			26.9						—			(10.8)			—			2.5						18.6
Lease liabilities			6.5						—			16.2			—			0.5						23.2
Other intangible assets			143.5						—			—			—			—						143.5
Share-based payments			7.2						—			1.8			—			0.6						9.6
Other temporary differences			23.9						—			7.5			(1.0)			(2.9)						27.5
Total deferred tax assets, gross			906.0						21.4			398.2			(1.0)			52.4						1,377.0
Valuation allowance1			(122.5)						—			(37.2)			—			(7.9)						(167.6)
Total deferred tax assets, net			783.5						21.4			361.0			(1.0)			44.5						1,209.4
Deferred tax liabilities:
Other intangible assets			(93.9)						2.9			17.1			—			(6.0)						(79.9)
Goodwill			(15.6)						—			(5.3)			—			—						(20.9)
Right-of-use assets			(6.5)						—			(16.2)			—			(0.5)						(23.2)
Property, plant and equipment			(5.4)						—			(4.3)			—			(1.2)						(10.9)
Contract liabilities			(18.2)						—			10.3			—			—						(7.9)
Long-term debt			(1.6)						—			0.1			—			—						(1.5)
Other temporary differences			(8.7)						2.5			4.4			—			0.7						(1.1)
Total deferred tax liabilities			(149.9)						5.4			6.1			—			(7.0)						(145.4)
Net deferred tax assets (liabilities)			633.6						26.8			367.1			(1.0)			37.5						1,064.0
Classified as:
Deferred tax assets – non-current			671.5																					1,098.7
Deferred tax liabilities – non-current			(37.9)																					(34.7)
Net deferred tax assets (liabilities)			633.6																					1,064.0

1.The valuation allowance disclosed above relates to R&D and other tax credit carry forwards and operating loss carry forwards that may not be realized.

X

- Definition

Tabular disclosure of the deferred tax position and liability for unrecognized tax benefits recoded on the balance sheet.

+ References

No definition available.

+ Details

Name:	asml_DeferredTaxPositionAndLiabilityForUnrecognizedTaxBenefitsRecordedOnBalanceSheetTableTableTextBlock
Namespace Prefix:	asml_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320

+ Details

Name:	us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration