5. Inventories

The components of inventories at December 31, 2017 and December 31, 2016 are summarized as follows:

(in millions)	2017			2016
Raw materials	$	122.0		$	109.3
Work-in-process		94.3			88.4
Finished goods		227.7			270.9
Total inventories — gross		444.0			468.6
Excess and obsolete inventory reserve		(47.9	)		(39.6	)
Net inventories	$	396.1		$	429.0

As described in Note 2, in the fourth quarter of 2016, the Company elected to change its method of accounting for certain inventory in the U.S. from LIFO to FIFO. The Company applied this change in method of inventory costing by retrospectively adjusting the prior period financial statements. As a result of the retrospective adjustment of the change in accounting principle, certain amounts in the Company's consolidated financial statements for the year ended December 31, 2015 was adjusted as follows:

For the year ended December 31, 2015
	Impact of Change
In millions (except per share data)	Historical			to FIFO			As adjusted
Cost of sales	$	1,537.0		$	(3.5	)	$	1,533.5
Operating (loss) income		(15.9	)		3.5			(12.4	)
Loss from continuing operations before taxes		(114.5	)		3.5			(111.0	)
Benefit for income taxes		(42.6	)		1.5			(41.1	)
Loss from continuing operations		(71.9	)		2.0			(69.9	)
Net (loss) income		63.5			2.0			65.5
Net (loss) income attributable to Manitowoc common shareholders		63.5			2.0			65.5
Basic (loss) income per share from continuing operations		(2.11	)		0.02			(2.06	)
Diluted (loss) income per share from continuing operations		(2.11	)		0.02			(2.06	)

The Consolidated Statements of Cash Flows for the year ended December 31, 2015 was adjusted as follows:

For the year ended December 31, 2015
	Impact of Change
In millions	Historical			to FIFO			As adjusted
Net (loss) income	$	63.5		$	2.0		$	65.5
Deferred income taxes		(5.9	)		1.5			(4.4	)
Change in inventories, net		(3.7	)		(3.5	)		(7.2	)

The tables above present selected financial information “as adjusted for impact of change to FIFO” and “historical,” which represents the results of operations prior to the change to FIFO but after the classification of MFS to discontinued operations.