Note 2. Investments

The cost and estimated fair value of the investments are as follows:



			Gross		Gross		Fair
			unrealized		unrealized		value
	Cost		gain		loss
December 31, 2012
Money Market Funds	$	804,000	$	0	$	0	$	804,000
Commercial Paper		200,000		0		0		200,000
Treasury Bills		5,249,000		0		(1,000)		5,248,000
Equity Securities		92,000		3,639,000		(54,000)		3,677,000
		6,345,000		3,639,000		(55,000)		9,929,000
Less Cash Equivalents		1,004,000		0		0		1,004,000
Total Investments, December 31, 2012	$	5,341,000	$	3,639,000	$	(55,000)	$	8,925,000


December 31, 2011
Commercial Paper	$	5,373,000	$	0	$	0	$	5,373,000
Equity Securities		101,000		3,134,000		(54,000)		3,181,000
		5,474,000		3,134,000		(54,000)		8,554,000
Less Cash Equivalents		5,373,000		0		0		5,373,000
Total Investments, December 31, 2011	$	101,000	$	3,134,000	$	(54,000)	$	3,181,000

Realized gains and losses on investments are as follows:



	Years Ended December 31,
		2012		2011

Gross Realized Gains		$	794,000	$	73,000
Gross Realized Losses			0		0
Net Realized Gain		$	794,000	$	73,000

At December 31, 2012 and 2011, the Company’s significant investment in equity securities is 273,267 and 343,267, respectively, shares of Rudolph Technologies (Rudolph), accounted for under the available-for-sale method. As of December 31, 2012 and 2011, the aggregate value of the Company’s Rudolph shares as reported on the Nasdaq Stock Exchange was approximately $3,673,000 and $3,134,000, respectively, with an approximate cost of $36,000 and $45,000, respectively. During the year ended December 31, 2012, the Company sold 70,000 shares of Rudolph stock and reported a gain of $794,000 in other income.

As of December 30, 2011, the shareholders of PPT Vision (PPT) voted to accept an offer to merge with Datalogic Scanning Holdings, Inc. (Datalogic). The terms of the merger required Datalogic to purchase all of the shares outstanding. Electro-Sensors, Inc. recognized a $72,000 gain on the sale of its PPT shares to Datalogic. The Company received the funds for their shares of PPT in January 2012.

Changes in Accumulated Other Comprehensive Income

Changes in Accumulated Other Comprehensive Income are as follows:



	December 31,
	2012		2011

Unrealized Gains
Unrealized Holding Gains arising during the Period	$	1,299,000	$	425,000
Less: reclassification of gains included in net income		(794,000)		(73,000)
		505,000		352,000

Deferred Taxes on Unrealized Gains:
Increase in Deferred Taxes on Unrealized Gains arising during the Period		494,000		161,000
Less: Reclassification of taxes on gains included in net income		(302,000)		(27,000)
		192,000		134,000

Net Change in Accumulated Other Comprehensive Income	$	313,000	$	218,000