VALERO ENERGY CORP/TX | 2013 | FY | 3


7.
INVENTORIES
Inventories consisted of the following (in millions):
 
December 31,
 
2013
 
2012
Refinery feedstocks
$
2,135

 
$
2,458

Refined products and blendstocks
3,231

 
2,995

Ethanol feedstocks and products
166

 
191

Convenience store merchandise

 
112

Materials and supplies
226

 
217

Inventories
$
5,758

 
$
5,973


During the years ended December 31, 2013, 2012, and 2011, we had net liquidations of LIFO inventory layers that were established in prior years, which decreased cost of sales in each of those years by $17 million, $134 million, and $247 million, respectively.
As of December 31, 2013 and 2012, the replacement cost (market value) of LIFO inventories exceeded their LIFO carrying amounts by approximately $6.9 billion and $6.7 billion, respectively. As of December 31, 2013 and 2012, our non-LIFO inventories accounted for $851 million and $878 million, respectively, of our total inventories.

us-gaap:InventoryDisclosureTextBlock