ASML Holding (ASML) 6-K Current report (foreign)

Exhibit 99.4

ASML — Summary IFRS Consolidated Income Statement¹

	Three months ended,						Twelve months ended,
(in thousands EUR)	Dec 31, 2008			Dec 31, 2009			Dec 31, 2008			Dec 31, 2009
Net system sales		380,466			431,808			2,516,762			1,174,858
Net service and field option sales		113,354			148,758			436,916			421,205
Total net sales		493,820			580,566			2,953,678			1,596,063
Cost of sales		476,473			432,202			2,016,101			1,210,847
Gross profit on sales		17,347			148,364			937,577			385,216
Research and development costs		95,896			69,723			354,256			304,795
Selling, general and administrative costs		47,655			40,677			212,927			158,372
Operating income (loss)		(126,204	)		37,964			370,394			(77,951	)
Interest income (charges)		2,812			(5,735	)		17,959			(5,996	)
Income (loss) before income taxes		(123,392	)		32,229			388,353			(83,947	)
(Provision for) benefit from income taxes		40,789			2,541			(11,455	)		2,504
Net income (loss)		(82,603	)		34,770			376,898			(81,443	)

ASML — Summary IFRS Consolidated Statement of Financial Position¹

(in thousands EUR)	Dec 31, 2008		Dec 31, 2009
ASSETS
Property, plant and equipment		550,921		625,560
Goodwill		139,626		139,636
Other intangible assets		289,530		346,936
Deferred tax assets		225,544		266,653
Finance receivables		31,030		—
Derivative financial instruments		53,206		55,948
Other assets		29,449		16,070
Total non-current assets		1,319,306		1,450,803
Inventories		999,150		986,341
Current tax assets		87,560		11,286
Derivative financial instruments		39,240		47,436
Finance receivables		6,225		21,553
Accounts receivable		463,273		377,439
Other assets		170,680		145,944
Cash and cash equivalents		1,109,184		1,037,074
Total current assets		2,875,312		2,627,073
Total assets		4,194,618		4,077,876
EQUITY AND LIABILITIES
Equity		2,188,743		2,050,807
Long-term debt		661,483		668,309
Derivative financial instruments		19,743		1,935
Deferred and other tax liabilities		260,360		263,972
Provisions		15,495		12,694
Accrued liabilities and other liabilities		50,293		42,424
Total non-current liabilities		1,007,374		989,334
Provisions		4,678		2,504
Derivative financial instruments		48,051		15,536
Current tax liabilities		20,039		15,032
Accrued liabilities and other liabilities		732,043		798,437
Accounts payable		193,690		206,226
Total non-current liabilities		998,501		1,037,735
Total equity and liabilities		4,194,618		4,077,876

ASML — Summary IFRS Consolidated Statement of Cash Flows¹

	Three months ended,						Twelve months ended,
(in thousands EUR)	Dec 31, 2008			Dec 31, 2009			Dec 31, 2008			Dec 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		(82,603	)		34,770			376,898			(81,443	)
Depreciation and amortization		57,247			90,159			197,298			238,207
Impairment charges		41,205			1,355			43,401			16,925
Loss on disposals of property, plant and equipment		430			1,016			4,257			4,053
Share-based payments		2,951			4,515			12,809			13,394
Allowance for doubtful debts		501			53			188			1,889
Allowance for obsolete inventory		85,777			22,718			139,628			63,677
Change in assets and liabilities		(215,350	)		(87,145	)		(332,036	)		11,923
Net cash provided by (used in) operating activities		(109,842	)		67,441			442,443			268,625
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment		(71,060	)		(7,692	)		(259,770	)		(104,959	)
Proceeds from sale of property, plant and equipment		—			—			—			6,877
Purchases of intangible assets		(49,452	)		(45,666	)		(179,563	)		(161,966	)
Net cash used in investing activities		(120,512	)		(53,358	)		(439,333	)		(260,048	)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of shares in conjunction with share-based payment plans		—			—			(87,605	)		—
Net proceeds from issuance of shares and stock options		6,509			6,359			11,475			11,073
Dividend paid		—			—			(107,841	)		(86,486	)
Net proceeds from other long term debt		19,975			—			19,975			32
Redemption and / or repayment of debt		(1,131	)		(1,739	)		(2,411	)		(6,958	)
Net cash provided by (used in) financing activities		25,353			4,620			(166,407	)		(82,339	)
Net cash flows		(205,001	)		18,703			(163,297	)		(73,762	)
Effect of changes in exchange rates on cash		1,192			343			845			1,652
Net increase (decrease) in cash & cash equivalents		(203,809	)		19,046			(162,452	)		(72,110	)

ASML — Quarterly Summary IFRS Consolidated Income Statement¹

	Three months ended,
	Dec 31,			Mar 29,			Jun 28,			Sep 27,			Dec 31,
(in millions EUR)	2008			2009			2009			2009			2009
Net system sales		380.5			101.1			183.3			458.7			431.8
Net service and field option sales		113.3			82.5			93.3			96.6			148.8
Total net sales		493.8			183.6			276.6			555.3			580.6
Cost of sales		476.5			196.3			248.6			333.7			432.2
Gross profit (loss) on sales		17.3			(12.7	)		28.0			221.6			148.4
Research and development costs		95.8			78.0			82.5			74.5			69.7
Selling, general and administrative costs		47.7			42.0			38.9			36.9			40.7
Operating income (loss)		(126.2	)		(132.7	)		(93.4	)		110.2			38.0
Interest income (charges)		2.8			3.2			(1.3	)		(2.2	)		(5.8	)
Income (loss) before income taxes		(123.4	)		(129.5	)		(94.7	)		108.0			32.2
(Provision for) benefit from income taxes		40.8			21.7			13.4			(35.2	)		2.6
Net income (loss)		(82.6	)		(107.8	)		(81.3	)		72.8			34.8

ASML — Quarterly Summary IFRS Consolidated Statement of Financial Position¹

	Dec 31,		Mar 29,		Jun 28,		Sep 27,		Dec 31,
(in millions EUR)	2008		2009		2009		2009		2009
ASSETS
Property, plant and equipment		550.9		596.1		600.5		569.4		625.6
Goodwill		139.6		148.4		142.9		136.6		139.6
Other intangible assets		289.5		306.1		330.4		359.1		346.9
Deferred tax assets		225.6		244.6		268.7		258.7		266.7
Finance receivables		31.0		29.2		20.6		—		—
Derivative financial instruments		53.2		70.0		33.4		48.5		55.9
Other assets		29.5		14.2		15.2		14.6		16.1
Total non-current assets		1,319.3		1,408.6		1,411.7		1,386.9		1,450.8
Inventories		999.1		936.8		926.1		920.6		986.4
Current tax assets		87.6		—		—		—		11.3
Derivative financial instruments		39.2		33.6		37.9		44.6		47.4
Finance receivables		6.2		6.2		0.1		21.1		21.6
Accounts receivable		463.3		291.6		213.5		382.1		377.4
Other assets		170.7		186.0		162.1		159.1		145.9
Cash and cash equivalents		1,109.2		1,151.0		1,092.7		1,018.0		1,037.1
Total current assets		2,875.3		2,605.2		2,432.4		2,545.5		2,627.1
Total assets		4,194.6		4,013.8		3,844.1		3,932.4		4,077.9
EQUITY AND LIABILITIES
Equity		2,188.7		2,007.7		1,925.1		1,995.4		2,050.8
Long-term debt		661.5		671.5		660.5		667.2		668.3
Derivative financial instruments		19.7		1.6		1.0		1.7		1.9
Deferred and other tax liabilities		260.4		258.1		263.6		266.7		264.0
Provisions		15.5		16.9		14.8		13.5		12.7
Accrued liabilities and other liabilities		50.3		46.7		44.6		43.0		42.4
Total non-current liabilities		1,007.4		994.8		984.5		992.1		989.3
Provisions		4.7		4.5		2.6		2.4		2.5
Derivative financial instruments		48.1		40.6		25.0		23.5		15.6
Current tax liabilities		20.0		11.2		19.9		35.3		15.0
Accrued liabilities and other liabilities		732.0		789.8		652.4		661.5		798.5
Accounts payable		193.7		165.2		234.6		222.2		206.2
Total current liabilities		998.5		1,011.3		934.5		944.9		1,037.8
Total equity and liabilities		4,194.6		4,013.8		3,844.1		3,932.4		4,077.9

ASML — Quarterly Summary IFRS Consolidated Statement of Cash Flows¹

	Three months ended,
	Dec 31,			Mar 29,			Jun 28,			Sep 27,			Dec 31,
(in millions EUR)	2008			2009			2009			2009			2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		(82.6	)		(107.8	)		(81.3	)		72.8			34.8
Depreciation and amortization		57.2			64.1			41.8			42.1			90.2
Impairment charges		41.2			2.6			4.4			8.6			1.3
Loss on disposals of property, plant and equipment		0.4			2.6			(0.4	)		0.9			1.0
Share-based payments		3.0			3.5			2.6			2.8			4.5
Allowance for doubtful debts		0.5			—			1.2			0.7			0.1
Allowance for obsolete inventory		85.8			22.1			43.9			(25.1	)		22.7
Change in assets and liabilities		(215.3	)		136.9			87.3			(125.1	)		(87.2	)
Net cash provided by (used in) operating activities		(109.8	)		124.0			99.5			(22.3	)		67.4
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment		(71.1	)		(43.9	)		(39.9	)		(13.5	)		(7.7	)
Proceeds from sale of property, plant and equipment		—			1.2			5.7			—			—
Purchases of intangible assets		(49.4	)		(40.3	)		(35.4	)		(40.6	)		(45.7	)
Net cash used in investing activities		(120.5	)		(83.0	)		(69.6	)		(54.1	)		(53.4	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid		—			—			(86.5	)		—			—
Net proceeds from issuance of shares and stock options		6.5			0.1			0.4			4.2			6.4
Net proceeds from other long-term debt		19.9			—			0.1			—			—
Redemption and/or repayment of debt		(1.1	)		(1.7	)		(1.7	)		(1.8	)		(1.7	)
Net cash provided by (used in) financing activities		25.3			(1.6	)		(87.7	)		2.4			4.7
Net cash flows		(205.0	)		39.4			(57.8	)		(74.0	)		18.7
Effect of changes in exchange rates on cash		1.2			2.4			(0.5	)		(0.7	)		0.4
Net increase (decrease) in cash & cash equivalents		(203.8	)		41.8			(58.3	)		(74.7	)		19.1

ASML — Notes to the Summary IFRS Consolidated Financial Statements

Basis of Presentation

ASML has prepared the accompanying summary consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the EU – accounting principles generally accepted in the Netherlands for companies quoted on Euronext Amsterdam. Further disclosures, as required under IFRS in annual reports and interim reporting (IAS 34), are not included. The accompanying consolidated financial statements are stated in thousands of euros (‘EUR’), except otherwise indicated.

For internal and external reporting purposes, ASML follows accounting principles generally accepted in the United States of America (“U.S. GAAP”). U.S. GAAP is ASML’s primary accounting standard for the Company’s setting of financial and operational performance targets.

Principles of consolidation

The consolidated financial statements include the accounts of ASML Holding N.V. and all of its majority-owned subsidiaries. Subsidiaries are all entities over which ASML has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. All intercompany profits, balances and transactions have been eliminated in the consolidation.

Use of estimates

The preparation of ASML’s consolidated financial statements in conformity with IFRS 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 revenue and expense during the reported periods. Actual results could differ from those estimates.

Recognition of revenues

In general, ASML recognizes the revenue from the sale of a system upon shipment and the revenue from the installation of a system upon completion of that installation at the customer site. Each system undergoes, prior to shipment, a “Factory Acceptance Test” in our clean room facilities, effectively replicating the operating conditions that will be present on the customer’s site, in order to verify whether the system will meet its standard specifications and any additional technical and performance criteria agreed with the customer. A system is shipped, and revenue is recognized, only after all specifications are met and customer sign-off is received or waived. Although each system’s performance is re-tested upon installation at the customer’s site, we have never failed to successfully complete installation of a system at a customer’s premises.

A portion of our revenue is derived from contractual arrangements with our customers that have multiple deliverables, such as installation and training services, prepaid service contracts and prepaid extended optic warranty contracts. The revenue relating to the undelivered elements of the arrangements is deferred until delivery of these elements. Revenue from installation and training services is recognized when the services are completed. Revenue from prepaid service contracts and prepaid extended optic warranty contracts is recognized over the term of the contract.

Foreign currency risk management

The Company uses the euro as its invoicing currency in order to limit the exposure to foreign currency movements. Exceptions may occur on a customer by customer basis. To the extent that invoicing is done in a currency other than the euro, the Company is exposed to foreign currency risk.

It is the Company’s policy to hedge material transaction exposures, such as sales transactions and forecasted purchase transactions. The Company hedges these exposures through the use of foreign exchange options and forward contracts. The use of a mix of foreign exchange options and forward contracts is aimed at reflecting the likelihood of the transactions occurring.

It is the Company’s policy to hedge material remeasurement exposures. These net exposures from certain monetary assets and liabilities in non-functional currencies are hedged with forward contracts.

As of December 31, 2009 EUR 41.8 million loss is classified as other comprehensive income, net of taxes, representing the total anticipated loss to be charged to net sales, and EUR 0.5 million gain representing the total anticipated gain to be released to cost of sales when the forecasted revenue and purchase transactions occur.

ASML — Reconciliation U.S. GAAP — IFRS¹

Net income	Three months ended,						Twelve months ended,
(in thousands EUR)	Dec 31, 2008			Dec 31, 2009			Dec 31, 2008			Dec 31, 2009
Net income (loss) under U.S. GAAP		(88,024	)		50,480			322,370			(150,925	)
Share-based payments (see Note 1)		481			89			(2,529	)		2,401
Development costs (see Note 2)		7,219			(8,024	)		62,416			49,755
Reversal of write-downs (see Note 3)		—			(11,405	)		—			17,104
Income taxes (see Note 4)		(2,279	)		3,630			(5,359	)		222
Net income (loss) under IFRS		(82,603	)		34,770			376,898			(81,443	)

Shareholders’ equity	Dec 31,			Mar 29,			Jun 28,			Sep 27,			Dec 31,
(in thousands EUR)	2008			2009			2009			2009			2009
Shareholders’ equity under U.S. GAAP		1,988,769			1,795,951			1,691,240			1,706,271			1,774,768
Share-based payments (see Note 1)		(6,537	)		(7,088	)		(4,918	)		(460	)		2,397
Development costs (see Note 2)		201,717			215,452			235,945			259,665			251,556
Reversal of write-downs (see Note 3)		—			—			—			28,509			17,104
Income taxes (see Note 4)		4,794			3,361			2,797			1,370			4,982
Shareholders’ equity under IFRS		2,188,743			2,007,676			1,925,064			1,995,355			2,050,807

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

Note 1 Share-based Payments

Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from January 1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value of its share-based payments with respect to stock options and stock granted to its employees after November 7, 2002. Under IFRS, at period end a deferred tax asset is computed on the basis of the tax deduction for the share-based payments under the applicable tax law and is recognized to the extent it is probable that future taxable profit will be available against which these deductible temporary differences will be utilized. Therefore, changes in the Company’s share price do affect the deferred tax asset at period-end and result in adjustments to the deferred tax asset.

As of January 1, 2006, ASML applies ASC 718 “Compensation- Stock Compensation” which requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those instruments. ASC 718’s general principle is that a deferred tax asset is established as the Company recognizes compensation costs for commercial purposes for awards that are expected to result in a tax deduction under existing tax law. Under U.S. GAAP, the deferred tax recorded on share-based compensation is computed on the basis of the expense recognized in the financial statements. Therefore, changes in the Company’s share price do not affect the deferred tax asset recorded in the Company’s financial statements.

Note 2 Development costs

Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with IAS 38, ASML capitalizes certain development expenditures which 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. In 2008, we recognized an impairment charge for an amount of EUR 18.3 million.

Under U.S. GAAP, ASML applies ASC 730, “Research and Development”. In accordance with ASC 730, ASML charges costs relating to research and development to operating expense as incurred.

Note 3 Reversal of write-downs

Under IFRS, ASML applies IAS 2 (revised), “Inventories”. In accordance with IAS 2, reversal of a prior period write-down as a result of a subsequent increase in value of inventory should be recognized in the period in which the value increase occurs.

Under U.S. GAAP, ASML applies ASC 330 Inventory. In accordance with ASC 330 reversal of a write-down is prohibited as a write-down creates a new cost basis.

Note 4 Income taxes

Under IFRS, ASML applies IAS 12, “Income Taxes” beginning from January 1, 2005. In accordance with IAS 12 unrealized net income resulting from intercompany transactions that are eliminated from the carrying amount of assets in consolidation, give rise to a temporary difference for which deferred taxes must be recognized in consolidation. The deferred taxes are calculated based on the tax rate applicable in the purchaser’s tax jurisdiction.

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

“Safe Harbor” Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of backlog, IC unit demand, financial results, average selling price, gross margin and expenses. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of credit market deterioration on consumer confidence and demand for our customers’ products, competitive products and pricing, manufacturing efficiencies, new product development and customer acceptance of new products, ability to enforce patents and protect intellectual property rights, the outcome of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates and other risks indicated in the risk factors included in ASML’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission.

¹ All quarterly information in this press release is unaudited.