INVENTORIES

Inventories consist of the following:



June 30,	2016		2015
U.S. inventories at average cost	$	380,000	$	397,524
Foreign inventories at average cost	105,465		116,674
	485,465		514,198
Less: Excess of average cost over LIFO cost for U.S. inventories	147,244		151,779
Inventories on consolidated balance sheets	$	338,221	$	362,419

In fiscal 2016, reductions in U.S. inventories, primarily in the bearings pool, resulted in liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years. The overall impact of LIFO layer liquidations increased gross profit by $2,100 in fiscal 2016. There were no LIFO layer liquidations in fiscal 2015 or 2014.