Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2014 were as follows:



In millions	Climate			Industrial			Total
Balance as of December 31, 2013
Goodwill (gross)	$	7,663.6		$	373.0		$	8,036.6
Accumulated impairment **	(2,496.0		)	—			(2,496.0		)
	5,167.6			373.0			5,540.6
Acquisitions and adjustments*	13.5			2.6			16.1
Currency translation	(104.2		)	(5.5		)	(109.7		)
Balance as of September 30, 2014
Goodwill (gross)	7,572.9			370.1			7,943.0
Accumulated impairment **	(2,496.0		)	—			(2,496.0		)
	$	5,076.9		$	370.1		$	5,447.0

* Increase is primarily related to a $15.0 million acquisition in March of 2014 within the Climate sector and a $3.0 million acquisition within the Industrial sector.

** No impairment charges were recorded by the company in 2014 or 2013.

The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded.