Changes in product demand can adversely affect our financial results. It is difficult to forecast these changes and their impact. We face significant competition. The importance of these factors varies by product and market segment. We cannot guarantee that all of these efforts will deliver the benefits we anticipate. We do not expect all of our R&D investments to be successful. These efforts are not always successful. Some of these new businesses face challenging market conditions. Changes in the mix of products sold can materially impact our financial results. Production of integrated circuits is a complex process. We experienced significant delays in implementing our 10nm process technology. Where possible, we seek to have several sources of supply. We may be required to safely store some components pending the manufacture of others. We face risks related to security vulnerabilities in our products. Vulnerabilities are not always mitigated before they become known. We are subject to numerous pandemic-related risks, including those described below. The pandemic has significantly increased economic and demand uncertainty. Global or regional conditions can harm our financial results. Laws and regulations can have a negative impact on our business. We are affected by fluctuations in currency exchange rates. We are exposed to adverse as well as beneficial movements in currency exchange rates. We also conduct certain investing and financing activities in local currencies. Some of our policies have large deductibles and broad exclusions. We cannot always enforce or protect our IP rights. Enforcement is costly and time-consuming and can divert management attention. In some cases, our IP rights can offer inadequate protection for our innovations. We must attract, retain, and motivate key employees. The competition for highly skilled employees in our industry is increasingly intense. Competitors for technical talent increasingly seek to hire our employees. Changes in our management team can also disrupt our business. We are subject to risks associated with our strategic transactions. We face risks related to sales through distributors and other third parties. Our ability to add or replace distributors for some of our products is limited. Our stock repurchase program may be suspended or terminated at any time. The cumulative returns shown on the graph are based on Intel\'s fiscal year. In March 2020, we suspended stock repurchases in light of the COVID-19 pandemic. Mr. Davis serves on the board of trustees of the Old Globe Theatre. Chief Financial OfficerSteven R. Rodgers55Mr. We conducted our audits in accordance with the standards of the PCAOB. We believe that our audit provides a reasonable basis for our opinion. Our Consolidated Financial Statements include the accounts of Intel and our subsidiaries. We have eliminated intercompany accounts and transactions. Substantially all of our revenue is derived from product sales. Sales rebates earned by customers are offset against their receivable balances. InventoriesWe compute inventory cost on a first-in, first-out basis. This milestone is known as PRQ. We refer to these costs as excess capacity charges. Excess capacity charges are insignificant in the years presented. When the fair value option is not elected, the loans are carried at amortized cost. We believe credit risks are moderated by the financial stability of our major customers. We assess credit risk through quantitative and qualit
