
2.	INVENTORIES

Inventories consisted of the following (in millions):



	March 31, 2016			December 31, 2015
Refinery feedstocks	$	2,574		$	2,404
Refined products and blendstocks	3,424			3,774
Ethanol feedstocks and products	264			242
Materials and supplies	249			244
Inventories, before lower of cost or market inventory valuation reserve	6,511			6,664
Lower of cost or market inventory valuation reserve	(455		)	(766		)
Inventories	$	6,056		$	5,898

Inventories are valued at the lower of cost or market. As of March 31, 2016 and December 31, 2015, we had a valuation reserve of $455 million and $766 million, respectively, in order to state our inventories at market. During the three months ended March 31, 2016, we recorded a change in our lower of cost or market inventory valuation reserve that resulted in a net benefit to our results of operations of $293 million. The income statement benefit for the first quarter of 2016 differs from the change in the balance sheet reserve due to the foreign currency effect of inventories held for our international operations.

As of March 31, 2016 and December 31, 2015, our non-LIFO inventories accounted for $685 million and $668 million, respectively, of our total inventories.