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Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2019
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
2019     
Reserve for sales discounts$18,123  $91,962  $39  $(93,241) $16,883  
Reserve for inventory obsolescence7,194  5,711  6,467  (11,139) 8,233  
Reserve for warranty4,992  8,273  4,343  (7,359) 10,249  
2018     
Reserve for sales discounts$15,652  $91,082  $(48) $(88,563) $18,123  
Reserve for inventory obsolescence6,932  3,773  (116) (3,395) 7,194  
Reserve for warranty5,335  5,815  (144) (6,014) 4,992  
2017     
Reserve for sales discounts$13,488  $82,724  $166  $(80,726) $15,652  
Reserve for inventory obsolescence7,262  3,007  886  (4,223) 6,932  
Reserve for warranty5,262  7,224  567  (7,718) 5,335  
 
Sales Discounts
 
On December 31, 2019, the Company had $16,883,000 in reserves for sales discounts compared to $18,123,000 on December 31, 2018 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 $8,233,000 on December 31, 2019 and $7,194,000 on December 31, 2018 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 $10,249,000 on December 31, 2019 and $4,992,000 on December 31, 2018 and is included in Note 11.