Acquisitions, Dispositions, Goodwill and Other Intangible Assets

Business Acquisitions and Dispositions. During the six months ended June 30, 2015, our investment in business acquisitions was $273 million, including debt assumed of $17 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.

On July 20, 2015, we announced an agreement to sell our Sikorsky Aircraft business (Sikorsky) to Lockheed Martin Corp. for $9 billion in cash, subject to a working capital and net indebtedness adjustment. The sale is expected to close by the end of 2015 or in the first quarter of 2016, and is subject to customary closing conditions, including regulatory approvals. As a result, Sikorsky will be reported in discontinued operations beginning in the third quarter of 2015.

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 June 30, 2015 are as follows:



(Dollars in millions)
Current assets	$	1,947
Noncurrent assets	963
Total assets	$	2,910

Current liabilities	$	1,946
Noncurrent liabilities	1,437
Total liabilities	$	3,383

Goodwill. Changes in our goodwill balances for the six months ended June 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 June 30, 2015
Otis	$	1,664	$	6	$	(67	)	$	1,603
UTC Climate, Controls & Security	9,408		348		(121		)	9,635
Pratt & Whitney	1,481		36		—			1,517
UTC Aerospace Systems	14,892		—		(61		)	14,831
Sikorsky	347		—		(3		)	344
Total Segments	27,792		390		(252		)	27,930
Eliminations and other	4		—		(1		)	3
Total	$	27,796	$	390	$	(253	)	$	27,933

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



	June 30, 2015					December 31, 2014
(Dollars in millions)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortized:
Service portfolios	$	2,006	$	(1,295	)	$	2,103	$	(1,309	)
Patents and trademarks	389		(196		)	361		(190		)
IAE collaboration	3,118		(45		)	2,872		(20		)
Customer relationships and other	12,434		(2,835		)	12,189		(2,623		)
	17,947		(4,371		)	17,525		(4,142		)
Unamortized:
Trademarks and other	2,130		—			2,177		—
Total	$	20,077	$	(4,371	)	$	19,702	$	(4,142	)

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.

Amortization of intangible assets for the quarter and six months ended June 30, 2015 was $179 million and $358 million, respectively, compared with $178 million and $357 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	$	337	$	714	$	745	$	771	$	767	$	777