
2.	INVENTORIES

Inventories consisted of the following (in millions):



	March 31, 2017		December 31, 2016
Refinery feedstocks	$	2,318	$	2,068
Refined petroleum products and blendstocks	3,189		3,153
Ethanol feedstocks and products	268		238
Materials and supplies	250		250
Inventories	$	6,025	$	5,709

Inventories are valued at the lower of cost or market. As of December 31, 2015, we had a valuation reserve of $766 million 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.

As of March 31, 2017 and December 31, 2016, the replacement cost (market value) of LIFO inventories exceeded their LIFO carrying amounts by $1.8 billion and $1.9 billion, respectively. As of March 31, 2017 and December 31, 2016, our non-LIFO inventories accounted for $663 million and $641 million, respectively, of our total inventories.