4. INVENTORIES

Our inventory amounts were as follows at the dates indicated (in thousands):



	September 30, 2017		December 31, 2016
Liquid petroleum products ⁽¹⁾	$	210,747	$	337,424
Materials and supplies	22,666		19,379
Total inventories	$	233,413	$	356,803


(1)	Ending inventory was 122.3 million and 198.2 million gallons of liquid petroleum products as of September 30, 2017 and December 31, 2016, respectively.

At September 30, 2017 and December 31, 2016, approximately 86% and 88% of our liquid petroleum products inventory volumes were designated in a fair value hedge relationship, respectively. Because we generally designate inventory as a hedged item upon purchase, hedged inventory is valued at current market prices with the change in value of the inventory reflected in our unaudited condensed consolidated statements of operations. Our inventory volumes that are not designated as the hedged item in a fair value hedge relationship are economically hedged to reduce our commodity price exposure. Inventory not accounted for as a fair value hedge is accounted for at the lower of weighted average cost method or net realizable value.