Variable Interest Entities

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity Disclosure [Text Block]

Variable Interest Entities

Pratt & Whitney holds a 61% net collaboration interest in IAE International Aero Engines AG (IAE), 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 are as follows:

(Dollars in millions)	September 30, 2016		December 31, 2015
Current assets	$	2,410	$	1,920
Noncurrent assets	1,160		1,102
Total assets	$	3,570	$	3,022
Current liabilities	$	2,222	$	1,931
Noncurrent liabilities	1,460		1,355
Total liabilities	$	3,682	$	3,286