Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Inventories (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Inventories

Inventories

Inventories include materials at standard costs, which approximate average costs, as well as inventoried costs on programs and long-term contracts.  Inventoried costs include material, direct engineering and production costs, and applicable overhead, not in excess of estimated realizable value.  Spare parts and general stock materials are stated at cost not in excess of realizable value.  E&S periodically reviews inventories for excess supply, obsolescence, and valuations above estimated realizable amounts, and provides a reserve sufficient to cover these items.  Revisions of these estimates could impact net income (loss).

During the years ended December 31, 2012 and 2011, E&S recognized losses on inventory impairment of $409 and $361 for obsolete and excess quantities of inventory, primarily related to the Evans & Sutherland Laser Projector.   

Inventories as of December 31, were as follows:

	2012	2011
Raw materials	$   5,255	$   4,767
Work-in-process	287	547
Finished goods	253	571
Reserve for obsolete inventory	(2,670)	(2,261)
Total inventories, net	$   3,125	$   3,624