Inventories (Notes)

9 Months Ended

Sep. 30, 2021

INVENTORIESInventories consist principally of natural gas held in storage, NGLs and refined products, crude oil and spare parts, all of which are valued at the lower of cost or net realizable value utilizing the weighted-average cost method.

Sunoco LP’s fuel inventories are stated at the lower of cost or market using the last-in, first-out (“LIFO”) method. As of September 30, 2021 and December 31, 2020, the carrying value of Sunoco LP’s fuel inventory included lower of cost or market reserves of $143 million and $311 million, respectively, and the inventory carrying value equaled or exceeded its replacement cost. For the three and nine months ended September 30, 2021 and 2020, the Partnership’s consolidated income statements did not include any material amounts of income from the liquidation of LIFO fuel inventory.


	September 30, 2021		December 31, 2020
Natural gas, NGLs and refined products(1)	$	1,238	$	1,013
Crude oil	160		287
Spare parts and other	413		439
Total inventories	$	1,811	$	1,739

(1)Due to changes in fuel prices, Sunoco LP recorded an inventory adjustment on the value of its fuel inventory of $168 million for the nine months ended September 30, 2021.

We utilize commodity derivatives to manage price volatility associated with our natural gas inventory. Changes in fair value of designated hedged inventory are recorded in inventory on our consolidated balance sheets and cost of products sold in our consolidated statements of operations.