Acquisitions, Dispositions, Goodwill and Other Intangible Assets

Business Acquisitions and Dispositions. During the nine months ended September 30, 2015, our investment in business acquisitions was $347 million, including debt assumed of $18 million, and consisted of the acquisition of the majority interest in a UTC Climate, Controls & Security business 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 jet engine 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, 2015 are as follows:



(Dollars in millions)
Current assets	$	1,719
Noncurrent assets	1,073
Total assets	$	2,792

Current liabilities	$	1,738
Noncurrent liabilities	1,457
Total liabilities	$	3,195

Goodwill. Changes in our goodwill balances for the nine months ended September 30, 2015 were as follows:



(Dollars in millions)	Balance as of January 1, 2015		Goodwill Resulting from Business Combinations		Foreign Currency Translation and Other			Balance as of September 30, 2015
Otis	$	1,664	$	6	$	(121	)	$	1,549
UTC Climate, Controls & Security	9,408		386		(267		)	9,527
Pratt & Whitney	1,481		36		—			1,517
UTC Aerospace Systems	14,892		—		(135		)	14,757
Total Segments	27,445		428		(523		)	27,350
Eliminations and other	3		1		—			4
Total	$	27,448	$	429	$	(523	)	$	27,354

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



	September 30, 2015					December 31, 2014
(Dollars in millions)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortized:
Service portfolios	$	1,976	$	(1,291	)	$	2,103	$	(1,309	)
Patents and trademarks	360		(186		)	337		(177		)
IAE collaboration	3,231		(68		)	2,872		(20		)
Customer relationships and other	12,350		(2,883		)	12,134		(2,589		)
	17,917		(4,428		)	17,446		(4,095		)
Unamortized:
Trademarks and other	2,083		—			2,177		—
Total	$	20,000	$	(4,428	)	$	19,623	$	(4,095	)

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 pattern of economic benefits as represented by the underlying cash flows.

Amortization of intangible assets for the quarter and nine months ended September 30, 2015 was $183 million and $537 million, respectively, compared with $182 million and $536 million for the same periods of 2014. The following is the expected amortization of intangible assets for the years 2015 through 2020, which reflects an increase in expected amortization expense due to the pattern of economic benefit on certain aerospace intangible assets.



(Dollars in millions)	Remaining 2015		2016		2017		2018		2019		2020
Amortization expense	$	176	$	709	$	747	$	775	$	769	$	783