2012 ANNUAL REPORT 69 Notes to Consolidated Financial Statements entity. Midea owns 51% of the venture and UTC Climate, Con- trols & Security 49%. This joint venture strengthened UTC Climate, Controls & Security’s global strategic relationship with Midea and expands the manufacturing and distribution of residential and light commercial HVAC systems in Brazil, Argentina, and Chile. UTC Climate, Controls & Security recognized a gain of approximately $80 million in 2011 as a result of this transaction. During 2011, we recorded an other-than-temporary impair- ment charge totaling $66 million on an equity investment held by UTC Climate, Controls & Security, in order to write-down our investment to market value as of December 31, 2011. This impair- ment is recorded within “Other income, net” on our Consolidated Statement of Operations. On March 1, 2010, we completed the acquisition of the GE Security business for approximately $1.8 billion, including debt assumed of $32 million. The GE Security business supplies security and fire safety technologies for commercial and residential applica- tions through a broad product portfolio that includes fire detection and life safety systems, intrusion alarms, and video surveillance and access control systems. This business, which has been integrated into our UTC Climate, Controls & Security segment, enhanced UTC Climate, Controls & Security’s geographic diversity through GE Security’s strong North American presence, while increasing total product and technology offerings. In connection with the acquisition of GE Security, we recorded approximately $600 million of identifi- able intangible assets and $1.1 billion of goodwill. The goodwill recorded reflects synergies expected to be realized through the combination of GE Security’s products, resources and manage- ment talent with those of the existing UTC Climate, Controls & Security business to enhance competitiveness, accelerate the development of certain product offerings, drive improved opera- tional performance and secure additional service channels. Additionally, the combined business has provided the opportunity for significant improvements to the cost structure through the rationalization of general and administrative expenditures as well as research and development efforts. During 2010, we recorded approximately $86 million of asset impairment charges, for assets that have met the “held-for- sale” criteria, related to disposition activity within both UTC Climate, Controls & Security and UTC Aerospace Systems. These asset impairment charges are recorded within Cost of products sold on our Consolidated Statement of Operations. The asset impairment charges consist of an approximately $58 million charge associated with UTC Climate, Controls & Security’s ongoing portfolio trans- formation and an approximately $28 million charge at UTC Aero- space Systems related to the disposition of an aerospace business as part of UTC Aerospace System’s efforts to implement low cost sourcing initiatives. During 2010, we completed the acquisition of Clipper. In 2010, we recorded net charges related to declines in fair value We early adopted FASB ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” in connection with the performance of our annual goodwill and indefinite-lived intangible assets impairment tests. This ASU intends to align impairment testing guidance among long-lived asset categories. This ASU allows for an assessment based on qualitative factors to determine whether it is more likely than not that an indefinite-lived The approximately $1.8 billion decrease reflected under “Foreign currency translation and other” in the table above primarily reflects the decision to divest a number of non-core businesses and the resulting reclassification to assets held for sale. See Note 3 for further discussion. In addition, approximately $360 million of good- will was transferred from UTC Aerospace Systems to Pratt & Whit- ney in connection with the transfer of the auxiliary power unit (APU) business from UTC Aerospace Systems to Pratt & Whitney. See Note 19 for further discussion of the transfer of the APU business. Pratt & Whitney goodwill increased $280 million due to the increase in ownership interest and consolidation of IAE. The good- will is deductible for tax purposes. UTC Aerospace Systems goodwill increased $11.3 billion principally as a result of the Goodrich acquisition. The goodwill results from the workforce acquired with the business as well as the significant synergies that are expected to be realized through the consolidation of manufacturing facilities and overhead functions. No amount of this goodwill is deductible for tax purposes. The goodwill acquired has been allocated to the two reporting units within the UTC Aerospace Systems segment. related to our investment in Clipper of approximately $138 million. These amounts remain in 2010 Other income, net in results of con- tinuing operations, as Clipper was accounted for as an equity- method investment through December 2010. Clipper has been reclassified to discontinued operations for 2012 and 2011, as it was a wholly-owned entity of UTC, and was sold in the third quarter of 2012. See additional discussion at Note 3. Goodwill . The changes in the carrying amount of goodwill, by segment, are as follows: (DOLLARS IN MILLIONS) Balance as of January 1, 2012 Goodwill resulting from business combinations Foreign currency translation and other Balance as of December 31, 2012 Otis $ 1,516 $ 24 $ 43 $ 1,583 UTC Climate, Controls & Security 9,758 89 21 9,868 Pratt & Whitney 1,223 280 (265) 1,238 UTC Aerospace Systems 4,475 11,283 (1,004) 14,754 Sikorsky 348 — 5 353 Total Segments 17,320 11,676 (1,200) 27,796 Eliminations and other 623 4 (622) 5 Total $ 17,943 $ 11,680 $ (1,822) $ 27,801