Inventory

3 Months Ended

Mar. 31, 2023

Crude oil feedstocks, refined products, blendstocks and asphalt inventory for all of our operations, excluding merchandise inventory in our retail segment, are stated at the lower of cost determined using FIFO basis or net realizable value. Retail merchandise inventory consists of cigarettes, beer, convenience merchandise and food service merchandise and is stated at estimated cost as determined by the retail inventory method.

The following table presents the components of inventory for each period presented:


	Titled Inventory		Inventory Intermediation Agreement (1)		Total
March 31, 2023
Feedstocks, raw materials and supplies	$	392.1	$	152.4	$	544.5
Refined products and blendstock	374.1		366.4		740.5
Merchandise inventory and other	29.7		—		29.7
Total	$	795.9	$	518.8	$	1,314.7

December 31, 2022
Feedstocks, raw materials and supplies	$	479.7	$	163.8	$	643.5
Refined products and blendstock	490.8		354.8		845.6
Merchandise inventory and other	29.4		—		29.4
Total	$	999.9	$	518.6	$	1,518.5

(1) Refer to Note 8 - Inventory Intermediation Obligations for further information.

At March 31, 2023, we recorded a pre-tax inventory valuation reserve of $9.5 million due to a market price decline below our cost of certain inventory products. At December 31, 2022, we recorded a pre-tax inventory valuation reserve of $11.2 million. For the three months ended March 31, 2023 and 2022, we recognized a net reduction (increase) in cost of materials and other in the accompanying condensed consolidated statements of income related to the change in pre-tax inventory valuation of $1.7 million and $8.5 million, respectively.