4. INVENTORIES

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

	March 31,		December 31,
	2015		2014
Liquid petroleum products (1)	$	139,267	$	226,898
Materials and supplies	16,803		16,577
Total inventories	$	156,070	$	243,475

(1)

Ending inventory was 85.4 million and 140.3 million gallons of liquid petroleum products at March 31, 2015 and December 31, 2014, respectively.

At March 31, 2015 and at December 31, 2014, approximately 90% of our liquid petroleum products inventory volumes were designated in a fair value hedge relationship. 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 cost or market using the weighted average cost method.