| 2013 | FY |



(dollars in millions)	2012
Amortization of inventory fair value adjustment ¹	$	(103	)
Amortization of acquired Goodrich intangible assets, net ²	108
Utilization of contractual customer obligation ³	(96		)
Interest expense incurred on acquisition financing, net ⁴	63


¹	Removed the expense for inventory fair value adjustments recognized during the last two quarters of 2012, which would have been amortized as the corresponding inventory would have been completely sold during the first two quarters of 2011.


²	Added the additional amortization of the acquired Goodrich intangible assets recognized at fair value in purchase accounting and eliminated the historical Goodrich intangible asset amortization expense.


³	Added the additional utilization of the Goodrich contractual customer obligation recognized in purchase accounting.


⁴	Added the additional interest expense for the debt incurred to finance our acquisition of Goodrich and reduced interest expense for the debt fair value adjustment which would have been amortized.



(dollars in millions, except per share amounts)	2012
Net sales	$	62,173
Net income attributable to common shareowners from continuing operations	5,095
Basic earnings per share of common stock from continuing operations	5.69
Diluted earnings per share of common stock from continuing operations	5.62



	2013					2012
(dollars in millions)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortized:
Service portfolios	$	2,234	$	(1,295	)	$	2,127	$	(1,202	)
Patents and trademarks	380		(181		)	412		(167		)
IAE collaboration	2,273		—			1,526		—
Customer relationships and other	12,049		(2,199		)	11,901		(1,718		)
	16,936		(3,675		)	15,966		(3,087		)
Unamortized:
Trademarks and other	2,260		—			2,310		—
Total	$	19,196	$	(3,675	)	$	18,276	$	(3,087	)



(dollars in millions)
Cash and cash equivalents	$	538
Accounts receivable, net	1,205
Inventories and contracts in progress, net	1,673
Future income tax benefits, current	515
Other assets, current	647
Fixed assets	2,209
Intangible assets:
Customer relationships and related program assets	8,550
Trademarks	1,550
Other assets	1,501
Short-term borrowings	(84		)
Accounts payable	(587		)
Accrued liabilities	(1,919		)
Long-term debt	(2,961		)
Future pension and postretirement benefit obligations	(1,743		)
Other long-term liabilities:
Customer contractual obligations	(2,200		)
Other long-term liabilities	(4,013		)
Noncontrolling interests	(41		)
Total identifiable net assets	4,840
Goodwill	11,580
Total consideration transferred	$	16,420



(dollars in millions)	Balance as of January 1, 2013		Goodwill resulting from business combinations		Foreign currency translation and other			Balance as of December 31, 2013
Otis	$	1,583	$	152	$	6		$	1,741
UTC Climate, Controls & Security	9,868		2		(143		)	9,727
Pratt & Whitney	1,238		—		35			1,273
UTC Aerospace Systems	14,754		301		14			15,069
Sikorsky	353		—		—			353
Total Segments	27,796		455		(88		)	28,163
Eliminations and other	5		—		—			5
Total	$	27,801	$	455	$	(88	)	$	28,168