Acquisitions, Dispositions, Goodwill and Other Intangible Assets

Business Acquisitions and Dispositions. During the nine months ended September 30, 2014, our investment in business acquisitions was $506 million, including debt assumed of $128 million, and consisted of the acquisition of the majority interest in a Pratt & Whitney joint venture and a number of small acquisitions, primarily in our commercial businesses.

As a result of the 2012 transactions related to IAE International Aero Engines AG (IAE), Pratt & Whitney holds a 61% net interest in the collaboration and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 program through involvement with the collaborators. IAE retains limited equity with the primary economics of the V2500 program passed to the participants in the separate collaboration arrangement. As such, we have determined that IAE is a variable interest entity with Pratt & Whitney its primary beneficiary, and IAE has, therefore, been consolidated. The carrying amounts and classification of assets and liabilities for IAE in our Condensed Consolidated Balance Sheet as of September 30, 2014 are as follows:



(Dollars in millions)
Current assets	$	1,855
Noncurrent assets	1,184
Total assets	$	3,039

Current liabilities	$	2,141
Noncurrent liabilities	1,209
Total liabilities	$	3,350

Goodwill. Changes in our goodwill balances for the nine months ended September 30, 2014 were as follows:



(Dollars in millions)	Balance as of January 1, 2014		Goodwill Resulting from Business Combinations		Foreign Currency Translation and Other			Balance as of September 30, 2014
Otis	$	1,741	$	21	$	(48	)	$	1,714
UTC Climate, Controls & Security	9,727		11		(133		)	9,605
Pratt & Whitney	1,273		209		—			1,482
UTC Aerospace Systems	15,069		—		(55		)	15,014
Sikorsky	353		—		(4		)	349
Total Segments	28,163		241		(240		)	28,164
Eliminations and other	5		—		—			5
Total	$	28,168	$	241	$	(240	)	$	28,169

Intangible Assets. Identifiable intangible assets are comprised of the following:



	September 30, 2014					December 31, 2013
(Dollars in millions)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortized:
Service portfolios	$	2,183	$	(1,334	)	$	2,234	$	(1,295	)
Patents and trademarks	376		(192		)	380		(181		)
IAE collaboration	2,738		(15		)	2,273		—
Customer relationships and other	12,260		(2,556		)	12,049		(2,199		)
	17,557		(4,097		)	16,936		(3,675		)
Unamortized:
Trademarks and other	2,224		—			2,260		—
Total	$	19,781	$	(4,097	)	$	19,196	$	(3,675	)

Customer relationship intangible assets include payments made to our customers to secure certain contractual rights. We amortize these intangible assets based on the underlying pattern of economic benefit, which may result in an amortization method other than straight-line. We classify amortization of such payments as a reduction of sales. The IAE collaboration intangible asset is amortized based upon the economic pattern of benefits as represented by the underlying cash flows. Prior to 2014, these cash flows were negative, and, accordingly, no amortization had previously been recorded. Amortization of intangible assets for the quarter and nine months ended September 30, 2014 was $182 million and $540 million, respectively, compared with $180 million and $531 million for the same periods of 2013. The following is the expected amortization of intangible assets for the years 2014 through 2019, which reflects an increase in expected amortization expense due to the pattern of economic benefit on certain aerospace intangible assets.



(Dollars in millions)	Remaining 2014		2015		2016		2017		2018		2019
Amortization expense	$	162	$	669	$	677	$	751	$	819	$	810