Accrued and other liabilities

12 Months Ended

Dec. 31, 2023

Accrued Liabilities and Other Liabilities [Abstract]

Accrued and other liabilities

Accrued and other liabilities

Accrued and other liabilities consist of the following:

Year ended December 31 (€, in millions)	2022	2023
Costs to be paid1	511.6	632.7
Personnel-related items	1,070.9	1,328.5
Derivative financial instruments2	261.2	156.7
Operating lease liabilities3	196.7	227.2
Provisions	90.5	76.7
Standard warranty reserve	143.6	142.3
Other	56.3	14.4
Accrued and other liabilities	2,330.8	2,578.5
Less: non-current portion of accrued and other liabilities	454.9	401.2
Current portion of accrued and other liabilities	1,875.9	2,177.4

1.Costs to be paid includes an amount payable to related parties. For further details see Note 26 Related parties and variable interest entities.

2.For further details on derivative financial instruments see Note 25 Financial risk management.

3.For further details on lease liabilities see Note 14 Right-of-use assets and lease liabilities.

Costs to be paid represent ASML’s estimate of contractual liability as of the reporting date, to be settled in a future

period, based upon the underlying terms and conditions. Costs to be paid as of December 31, 2023, include Value

Added Tax (VAT) payables and accrued costs for unbilled services provided by suppliers including contracted labor,

outsourced services and consultancy.

Personnel-related items mainly consist of accrued annual STI bonus plans, accrued vacation days, accrued pension

premiums, accrued wage tax and accrued vacation allowance. The increase in the accrued personnel-related items

compared to prior year is mainly of an increase in the number of our employees to support the continued growth of

our business.

The standard warranty reserve is based on historical product performance and total expected costs to fulfill our

warranty obligation. Annually, we assess and update the standard warranty reserve based on the latest actual

historical warranty costs and expected future warranty costs. Total changes in standard warranty reserve for the

years 2023 and 2022, are as follows:

Year ended December 31 (€, in millions)	2022	2023
Balance at beginning of year	145.3	143.6
Additions for the year	191.5	232.2
Utilization of the reserve	(193.5)	(233.3)
Effect of exchange rates	0.3	(0.2)
Balance at end of year	143.6	142.3