4. INVENTORIES

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



	March 31, 2016		December 31, 2015
Liquid petroleum products (1)	$	172,193	$	174,232
Materials and supplies	19,463		18,760
Total inventories	$	191,656	$	192,992


(1)	Ending inventory was 140.4 million and 153.3 million gallons of liquid petroleum products as of March 31, 2016 and December 31, 2015, respectively.

At both March 31, 2016 and December 31, 2015, approximately 89% 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 weighted average cost method or net realizable value.