Acquisitions, Dispositions, Goodwill and Other Intangible Assets

Business Acquisitions and Dispositions. During the six months ended June 30, 2017, our investment in business acquisitions was $168 million, and consisted of a number of small acquisitions, primarily in our commercial businesses.

Goodwill. Changes in our goodwill balances for the six months ended June 30, 2017 were as follows:



(Dollars in millions)	Balance as of January 1, 2017		Goodwill Resulting from Business Combinations			Foreign Currency Translation and Other		Balance as of June 30, 2017
Otis	$	1,575	$	(1	)	$	78	$	1,652
UTC Climate, Controls & Security	9,487		95			256		9,838
Pratt & Whitney	1,511		—			—		1,511
UTC Aerospace Systems	14,483		—			100		14,583
Total Segments	27,056		94			434		27,584
Eliminations and other	3		—			—		3
Total	$	27,059	$	94		$	434	$	27,587

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



	June 30, 2017					December 31, 2016
(Dollars in millions)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortized:
Service portfolios	$	2,130	$	(1,468	)	$	1,995	$	(1,344	)
Patents and trademarks	392		(218		)	378		(201		)
Collaboration intangible assets	3,923		(299		)	3,724		(211		)
Customer relationships and other	13,141		(3,814		)	12,798		(3,480		)
	19,586		(5,799		)	18,895		(5,236		)
Unamortized:
Trademarks and other	2,094		—			2,025		—
Total	$	21,680	$	(5,799	)	$	20,920	$	(5,236	)

Customer relationship intangible assets include payments made to our customers to secure certain contractual rights. Such payments are capitalized when distinct rights are obtained and sufficient incremental cash flows to support the recoverability of the assets have been established. Otherwise, the applicable portion of the payments are expensed. We amortize these intangible assets based on the underlying pattern of economic benefit, which may result in an amortization method other than straight-line. In the aerospace industry, amortization based on the pattern of economic benefit generally results in lower amortization expense during the development period with amortization expense increasing as programs enter full production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined, a straight-line amortization method is used. We classify amortization of such payments as a reduction of sales. The collaboration intangible assets are amortized based upon the pattern of economic benefits as represented by the underlying cash flows.

Amortization of intangible assets for the quarter and six months ended June 30, 2017 was $210 million and $415 million, respectively, compared with $194 million and $381 million for the same periods of 2016. The following is the expected amortization of intangible assets for the years 2017 through 2022, which reflects the pattern of expected economic benefit on certain aerospace intangible assets.



(Dollars in millions)	Remaining 2017		2018		2019		2020		2021		2022
Amortization expense	$	421	$	873	$	871	$	891	$	903	$	899