
6.	INVENTORIES

Inventories consisted of the following (in millions):



	December 31,
	2011		2010
Refinery feedstocks	$	2,474	$	2,225
Refined products and blendstocks	2,633		2,233
Ethanol feedstocks and products	195		201
Convenience store merchandise	103		101
Materials and supplies	218		187
Inventories	$	5,623	$	4,947

During the years ended December 31, 2011, 2010, and 2009, we had net liquidations of LIFO inventory layers that were established in prior years, which decreased cost of sales in 2011 and 2010 by $247 million and $16 million, respectively, and increased cost of sales in 2009 by $66 million. The effect of the liquidation in 2010 excludes the impact from the sale of inventory in connection with the sale of our Paulsboro Refinery to PBF Holding. The effect of the 2010 liquidation attributable to the sale of that inventory increased the loss on the sale of the Paulsboro Refinery by $50 million ($31 million after taxes) as discussed in Note 3 and is reflected in discontinued operations.

As of December 31, 2011 and 2010, the replacement cost (market value) of LIFO inventories exceeded their LIFO carrying amounts by approximately $6.8 billion and $6.1 billion, respectively.