2. Inventories

Inventories were as follows:

(U.S. Dollars, in thousands)	March 31, 2018		December 31, 2017
Raw materials	$	5,889	$	6,067
Work-in-process		13,666		12,487
Finished products		58,131		60,441
Deferred cost of sales		—		2,335
Inventories	$	77,686	$	81,330

Prior to the adoption of ASU 2014-09, or for all periods presented prior to January 1, 2018, deferred cost of sales resulted from transactions where the Company had shipped product or performed services for which all revenue recognition criteria had not yet been met. Once all revenue recognition criteria had been met, the revenue and associated cost of sales were recognized. Subsequent to the adoption of ASU 2014-09, the Company no longer has transactions which result in the recognition of deferred cost of sales. See Note 7 for further discussion of the Company’s adoption of ASU 2014-09.