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Revenue from contracts with customers (Tables)
 12 Months Ended
Dec. 31, 2024
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
New systems sales include i-line, KrF, ArF dry, ArF immersion, NXE and EXE-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 undergoing FAT is shipped only after all contractual specifications are met or
discrepancies from agreed-upon specifications are waived and customer sign-off 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 and recognition of revenue of a system undergoing a FAT, and for
which customer acceptance at FAT is proven, will occur upon delivery of the system.
Transfer of control and recognition of revenue of a system not undergoing a FAT, or for
which customer acceptance at FAT is not proven, will occur after successful installation
upon customer acceptance of the system at SAT.
New system sales do not meet the requirements for over time revenue recognition
because our customers do not simultaneously receive and consume the benefits
provided by our performance, or control the asset throughout any stage of our
production process, or the systems are considered to have alternative use.
Used systems
We have no repurchase commitments in our general sales terms and conditions;
however, we occasionally repurchase systems that we previously manufactured and
sold, in order to refurbish and resell the system to a different customer. This repurchase
decision is mainly driven by market demand expressed by other customers.
Transfer of control of a used system, and recognition of revenue, follow the same logic
as for our ‘New systems’.
Goods or services
Nature, timing of satisfying the performance obligations and significant payment
terms
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, and therefore resulting in
transfer of control over the period of installation. The method of measuring progress is
based on what best depicts the satisfaction of our obligation in transferring control. This
is generally based on either the cost incurred method, which is estimated using labor
hours, or the value transferred method, which is estimated using system performance
measurements. For the options and other upgrades for which the customer receives
and consumes the benefit at the moment of delivery, the transfer of control and
recognition of revenue will occur upon delivery.
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
If the installation of new products is determined not to be a separate performance
obligation or if there is not a sufficient established history of acceptance on FAT, a new
product is considered to be a “new product introduction".
Transfer of control and revenue recognition for new product introductions occurs after
successful installation and customer acceptance 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 if 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. Installation is not considered to be distinct when recognition of
revenue related to a system occurs upon customer acceptance of the system at SAT
after installation is complete.
Warranties
We provide standard warranty coverage on our systems for 12 months, providing labor
and non-consumable parts necessary to repair our systems during these warranty
periods. These standard warranties cannot be purchased and do not provide a service
in addition to the general assurance the system will perform as promised. As a result, no
revenue is allocated to these standard warranties.
Both the extended and enhanced 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.
Goods or services
Nature, timing of satisfying the performance obligations and significant payment
terms
Time-based licenses and
related services
Time-based licenses relate to software licenses and the related services which are sold
for a period of time. The licenses and the related services are not considered to be
individually distinct, as the support services are integral to the customer’s ability to
continue to use the software license in the rapidly changing technological environment.
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
generally made in installments throughout the license term.
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.
Service contracts
Service contracts are entered into with our customers to support our systems used in
their ongoing operations during the systems life cycle, typically in the form of full-service
agreements, limited manpower agreements, other labor agreements, parts availability or
parts usage agreements. These services are for a specified period of time and typically
have a fixed price. Control transfers over this period of time, measured on a straight-line
basis, as these are stand-ready obligations. For service contracts where the price is not
fixed, the transaction price has a variable component that is based on the performance
of the system.
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 point in time upon delivery; or
•Sold as part of maintenance services, where control transfers point in time 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 number 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
2022
2023
2024
in units
in € millions
in units
in € millions
in units
in € millions
EXE
—
—
—
—
2
465.0
NXE
40
7,045.3
53
9,124.0
42
7,856.4
ArF immersion
81
5,236.5
125
9,017.4
129
9,667.0
ArF dry
28
623.7
32
780.2
28
774.4
KrF
151
1,653.7
184
2,202.5
152
1,991.2
I-line
45
211.5
55
278.4
65
369.2
Metrology & Inspection
216
659.6
151
536.1
165
645.5
Total
561
15,430.3
600
21,938.6
583
21,768.7
Net system sales per end-use were as follows:
Year ended December 31
2022
2023
2024
in units
in € millions
in units
in € millions
in units
in € millions
Logic
357
9,977.6
439
15,984.7
399
13,195.1
Memory
204
5,452.7
161
5,953.9
184
8,573.6
Total
561
15,430.3
600
21,938.6
583
21,768.7
Schedule of changes in contracts with customer, assets and liabilities Significant changes in the contract assets and the contract liabilities balances during the periods are as follows.
Year ended December 31 (€, in millions)
2023
2024
Contract assets
Contract liabilities
Contract assets
Contract liabilities
Balance at beginning of the year
131.9
17,750.9
240.1
16,266.5
Transferred from contract assets to accounts
receivables
(402.0)
—
(213.2)
—
Revenue recognized during the year ending in
contract assets
135.1
—
275.9
—
Revenue recognized that was included in contract
liabilities
—
(11,106.1)
—
(9,047.5)
Changes as a result of cumulative catch-up
adjustments arising from changes in estimates
—
(24.9)
—
(61.3)
Remaining performance obligations for which
considerations have been received, or for which we
have an unconditional right to consideration
—
9,416.3
—
11,483.4
Transfer between contract assets and liabilities
375.1
375.1
17.8
17.8
Other
—
(144.8)
—
(462.7)
Total
240.1
16,266.5
320.6
18,196.2