In the U.S.

, generally accepted accounting principles, commonly abbreviated as US GAAP or

simply GAAP, are accounting rules used to prepare, present, and report financial statements for a
wide variety of entities, including publicly-traded and privately-held companies, non-profit
organizations, and governments. Generally GAAP includes local applicable Accounting
Framework, related accounting law, rules and Accounting Standard.

Similar to many other countries practicing under the common law system, the United States
government does not directly set accounting standards, in the belief that the private sector has
better knowledge and resources. US GAAP is not written in law, although the U.S. Securities
and Exchange Commission (SEC) requires that it be followed in financial reporting by publicly-
traded companies. Currently, the Financial Accounting Standards Board (FASB) is the highest
authority in establishing generally accepted accounting principles for public and private
companies, as well as non-profit entities. For local and state governments, GAAP is determined
by the Governmental Accounting Standards Board (GASB), which operates under a set of
assumptions, principles, and constraints, different from those of standard private-sector GAAP

History

Auditors took the leading role in developing GAAP for business enterprises.[2] Circa 2008, the
FASB issued the FASB Accounting Standards Codification, which reorganized the thousands of
US GAAP pronouncements into roughly 90 accounting topics[3] In 2008, the Securities and
Exchange Commission issued a preliminary "roadmap" that may lead the U.S. to abandon
Generally Accepted Accounting Principles in the future (to be determined in 2011), and to join
more than 100 countries around the world instead in using the London-based International
Financial Reporting Standards.

Basic objectives

Financial reporting should provide information that is:

 useful to present to potential investors and creditors and other users in making rational
investment, credit, and other financial decisions.
 helpful to present to potential investors and creditors and other users in assessing the
amounts, timing, and uncertainty of prospective cash receipts.
 about economic resources, the claims to those resources, and the changes in them.

GAAP

Generally Accepted Accounting Principles (GAAP) is defined as the standard guidelines

of accounting rules for financial accounting and to prepare financial statements for
private companies and the companies trading publicly in United States. It chalks down
the standards, conventions, and rules for accountants to pursue in recording and
 summarizing transactions, and in the preparation of financial statements. In United
States these rules are decided by the Governmental Accounting Standards Board
(GASB) which applies to local and state governments.

U.S. GAAP

Again, it has to be remembered that GAAP are not a rigid set of rules. These are flexible
guidelines only. Over the years, these groups of conventions and standards have
evolved in the specific need of standard common platform for the preparation and
presentation of financial statements In United States, the American Institute of Certified
Public Accountants (AICPA), The Financial Accounting Standards Board (FASB) and
the Securities and Exchange Commission (SEC) offer guidance and assistance about
standard acceptable practices of accounting

Necessity OF GAAP
1. Acquiescence with GAAP promotes creditability with stockholders and
creditors reassuring them and outsiders that financial report of a company
precisely reflect its financial position.
2. Routine auditing is done by Certified public accountants to determine the
compliance of financial statements with GAAP. Financial statements display
these audit findings.
3. Even finance companies, banks and investors look for these audited
financial statements of their clients.

The evolvement of GAAP is based on four fundamental qualities the financial

statements must possess. The financial statements must be Relevant, Reliable,
Consistent and Comparable. Economic Entity Assumption, Going Concern Assumption,
Monetary Unit Assumption, and Periodic Reporting Assumption are the four basic
assumptions for these financial statements.

GAAP exercises four basic principles to implement and achieve the objectives.

1. Historical Cost Principle – Companies should consider the acquisition costs

and not fair market value for their liabilities and assets.
2. Revenue Recognition Principle – Accrual basis accounting is preferred
3. Matching Principle - This principle allows greater evaluation of actual
profitability and performance as the expenses are matched with the
revenues.
4. Principle of Full Disclosure - Information disclosed in the financial statement
should be enough to make a judgment while keeping the costs reasonable.
 US GAAP

Please note: The content of this file is qualified in their entirety by reference to the electronic
version of the ASML Annual Report 2009 on Form 20-F and therefore: (i) your local settings can
influence the way this table and its content is being displayed and (ii) (foot)notes have been
deleted for reader's convenience.

Always refer to the electronic version of the ASML Annual Report 2009 on Form 20-F for the full
and official financial information.
 Consolidated Balance Sheets as of December 31, 2008 and 2009

As of December 31 2008 2009

(in thousands, except share and per share data) EUR EUR

Assets
Cash and cash equivalents 1,109,184 1,037,074
Accounts receivable, net 463,273 377,439
Finance receivables, net 6,225 21,553
Current tax assets 87,560 11,286
Inventories, net 999,150 963,382
Deferred tax assets 71,780 119,404
Other assets 236,077 218,746

Total current assets 2,973,249 2,748,884

Finance receivables, net 31,030 -

Deferred tax assets 148,133 133,263
Other assets 88,197 77,054
Goodwill 131,453 131,462
Other intangible assets, net 26,692 18,128
Property, plant and equipment, net 540,640 618,706

Total non-current assets 966,145 978,613

Total assets 3,939,394 3,727,497

Liabilities and shareholders’ equity

Accounts payable 193,690 206,226
Accrued and other liabilities 789,788 817,361
Current tax liabilities 20,039 15,032
Provisions 4,678 2,504
Deferred tax liabilities 148 3,047

Total current liabilities 1,008,343 1,044,170

Long-term debt 647,050 663,102

Deferred and other tax liabilities 209,699 188,404
Provisions 15,495 12,694
Accrued and other liabilities 70,038 44,359

Total non-current liabilities 942,282 908,559

Total liabilities 1,950,625 1,952,729

Commitments and contingencies - -

Cumulative Preference Shares;

EUR 0.02 nominal value;
3,150,005,000 shares authorized;
none issued and outstanding at December 31, 2008 and 2009 - -

Ordinary Shares;
EUR 0.09 and EUR 0.01 nominal value;
respectively 700,000,000 and 10,000 shares authorized;
respectively 432,073,534 and none issued and outstanding at December 31,
2008;
 respectively 433,638,976 and none issued and outstanding at December 31,
2009 38,887 39,028
Share premium 474,765 476,261
Treasury shares at cost (253,436) (218,203)
Retained earnings 1,698,929 1,450,156
Accumulated other comprehensive income 29,624 27,526

Total shareholders’ equity 1,988,769 1,774,768

Total liabilities and shareholders’ equity 3,939,394 3,727,497

About ASML

ASML is the world's leading provider of

lithography systems for the semiconductor
industry, manufacturing complex machines
that are critical to the production of
integrated circuits or chips. Headquartered in
Veldhoven, the Netherlands, ASML is traded
on Euronext Amsterdam and NASDAQ under
the symbol ASML.

US GAAP

Please note: The content of this file is qualified in their entirety by reference to the electronic version of the ASML Annual Report 2009 on Form 20-F and therefore: (i) you
local settings can influence the way this table and its content is being displayed and (ii) (foot)notes have been deleted for reader's convenience.

Always refer to the electronic version of the ASML Annual Report 2009 on Form 20-F for the full and official financial information.

Consolidated Statements of Cashflows for the years ended December 31, 2007, 2008 and 200
 Year ended December 31 2007 2008 2009
(in thousands) EUR EUR EUR

Cash Flows from Operating Activities

Net income (loss) 671,001 322,370 (150,925)

Adjustments to reconcile net income (loss) to net

cash flows from operating activities:
Depreciation and amortization 126,344 119,190 140,201
Impairment 9,022 25,109 15,896
Loss on disposals of property, plant and equipment 14,210 4,257 4,053
Share-based payments 16,506 13,535 13,394
Allowance for doubtful debts (178) 188 1,889
Allowance for obsolete inventory 79,592 139,628 86,636
Deferred income taxes 106,403 (34,155) (49,423)

Changes in assets and liabilities:

Accounts receivable 42,410 132,147 97,540
Inventories (438,746) (87,804) (158,024)
Other assets (86,053) (76,342) 4,893
Accounts payable (38,944) (94,375) 10,430
Current income taxes (74,428) (158,277) 71,267
Other liabilities 273,872 (24,725) 9,937

Net cash provided by operating activities 701,011 280,746 97,764

Cash Flows from Investing Activities

Purchases of property, plant and equipment (179,152) (259,770) (104,959)
Proceeds from sale of property, plant and equipment 5,011 - 6,877
Purchases of intangible assets - (35) -
Acquisition of subsidiary (net of cash acquired) (188,011) - -

Net cash used in investing activities (362,152) (259,805) (98,082)

Cash Flows from Financing Activities

Capital repayment (1,011,857) - -
Purchase of shares in conjunction with conversion rights
of bondholders and share-based payments (359,856) (87,605) -
Net proceeds from issuance of shares and stock options 63,307 11,475 11,073
Dividend paid - (107,841) (86,486)
Net proceeds from issuance of bond 593,755 - -
Net proceeds from other long-term debt - - 32
Repayment of debt (9,718) (2,411) (17)
Tax benefits from stock options 9,006 2,144 1,954

Net cash used in financing activities (715,363) (184,238) (73,444)

Net cash flows (376,504) (163,297) (73,762)

Effect of changes in exchange rates on cash (7,717) 845 1,652

Net decrease in cash and cash equivalents (384,221) (162,452) (72,110)

Cash and cash equivalents at beginning of the year 1,655,857 1,271,636 1,109,184
 Cash and cash equivalents at end of the year 1,271,636 1,109,184 1,037,074

US GAAP

Please note: The content of this file is qualified in their entirety by reference to the electronic version of the ASML Annual Report 2009 on Form 20-F and therefore: (i) your local
settings can influence the way this table and its content is being displayed and (ii) (foot)notes have been deleted for reader's convenience.

Always refer to the electronic version of the ASML Annual Report 2009 on Form 20-F for the full and official financial information.

Consolidated Statements of Operations for the years ended December 31, 2007, 2008 and 2009
Year ended December 31 2007 2008 2009
(in thousands, except per share data) EUR EUR EUR

Net system sales 3,351,281 2,516,762 1,174,858

Net service and field option sales 416,904 436,916 421,205
Total net sales 3,768,185 2,953,678 1,596,063

Cost of system sales 1,943,779 1,631,069 852,417

Cost of service and field option sales 274,747 307,095 285,254

Total cost of sales 2,218,526 1,938,164 1,137,671

Gross profit on sales 1,549,659 1,015,514 458,392

Research and development costs 486,141 516,128 466,761

Amortization of in-process research and development costs 23,148 - -
Selling, general and administrative costs 225,668 212,341 156,644

Income (loss) from operations 814,702 287,045 (165,013)

Interest income 78,165 72,497 42,766
Interest expense (44,714) (49,898) (49,303)

Income (loss) from operations before income taxes 848,153 309,644 (171,550)
(Provision for) benefit from income taxes (177,152) 12,726 20,625

Net income (loss) 671,001 322,370 (150,925)

Basic net income (loss) per ordinary share 1.45 0.75 (0.35)
Diluted net income (loss) per ordinary share 1.41 0.74 (0.35)
Number of ordinary shares used in computing
per share amounts (in thousands)
Basic 462,406 431,620 432,615
Diluted 485,643 434,205 432,615