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Valuation and Qualifying Accounts | 12 Months Ended
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Dec. 31, 2018
Receivables [Abstract] |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS Valuation and qualifying accounts included the following:
(in thousands) | Balance Beginning of Year |  | Net Charged to Costs and Expenses |  | Translations, Reclassifications and Acquisitions |  |  |  | Net Write-Offs or Discounts Taken |  | Balance End of Year
2018 |  |  |  |  |  |  |  |  |  |  |
Reserve for sales discounts | $ | 15,652 |  | $ | 91,082 |  |  | $ | (48) |  |  | $ | (88,563) |  | $ | 18,123
Reserve for inventory obsolescence | 6,932 |  | 3,773 |  |  | (116) |  |  | (3,395) |  | 7,194
Reserve for warranty | 5,335 |  | 5,815 |  |  | (144) |  |  | (6,014) |  | 4,992
2017 |  |  |  |  |  |  |  |  |  |  |
Reserve for sales discounts | $ | 13,488 |  | $ | 82,724 |  |  | $ | 166 |  |  | $ | (80,726) |  | $ | 15,652
Reserve for inventory obsolescence | 7,262 |  | 3,007 |  |  | 886 |  |  | (4,223) |  | 6,932
Reserve for warranty | 5,262 |  | 7,224 |  |  | 567 |  |  | (7,718) |  | 5,335
2016 |  |  |  |  |  |  |  |  |  |  |
Reserve for sales discounts | $ | 15,094 |  | $ | 77,126 |  |  | $ | (109) |  |  | $ | (78,623) |  | $ | 13,488
Reserve for inventory obsolescence | 9,675 |  | 2,041 |  |  | 295 |  |  | (4,749) |  | 7,262
Reserve for warranty | 5,566 |  | 7,867 |  |  | (49) |  |  | (8,122) |  | 5,262
Sales Discounts On December 31, 2018, the Company had $18,123,000 in reserves for sales discounts compared to $15,652,000 on December 31, 2017 on product shipped to our customers under various promotional programs. The most common programs provide a discount when the customer pays within a specified period of time. The Company reviews the reserve quarterly based on analysis made on each program outstanding at the time. The cost of these discounts is estimated based on historical experience and known changes in promotional programs and is reported as a reduction to sales when the product sale is recognized. The reserve is adjusted if discounts paid differ from those estimated. Historically, those adjustments have not been material. Inventories – Obsolete and Slow Moving The Company had a reserve of $7,194,000 on December 31, 2018 and $6,932,000 on December 31, 2017 to cover obsolete and slow moving inventory. The increase in the reserve was primarily attributable to the Company's Industrial Division. The obsolete and slow moving inventory reserve is calculated as follows: 1) no inventory usage over a three-year period is deemed obsolete and reserved at 100%; and 2) slow moving inventory with little usage requires a 100% reserve on items that have a quantity greater than a three-year supply. There are exceptions to the obsolete and slow moving classifications if approved by an officer of the Company, based on specific identification of an item or items that are deemed to be either included or excluded from this classification. In cases where there is no historical data, management makes a judgment based on a specific review of the inventory in question to determine what reserves, if any, are appropriate. New products or parts are generally excluded from the reserve until a three-year history has been established. Warranty The Company’s warranty policy is generally to provide its customers warranty for up to one year on all wholegood units and 90 days on parts, though some components can have warranty for longer terms. Warranty reserve, as a percentage of sales, is generally calculated by looking at the current twelve months’ expenses and prorating that amount based on twelve months’ sales with a 90 day to six-month lag period. The Company’s historical experience is that an end-user takes approximately 90 days to six months from the receipt of the unit to file a warranty claim. A warranty reserve is established for each different marketing group. The current liability warranty reserve balance was $4,992,000 on December 31, 2018 and $5,335,000 on December 31, 2017 and is included in Note 10.

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