Table of Contents
$48 million, which included capitalization of the business prior to the sale and interim funding of operations as the buyer took control of a loss generating business. We have no continuing involvement with the UTC Powerbusiness. On June 14, 2013, we completed the sale of substantially all operations of Rocketdyne to GenCorp Inc. for $411 million. The sale generated a pre-tax loss of approximately $17 million( $10 millionafter tax) which has been included in discontinued operations in the accompanying Condensed Consolidated Statement of Comprehensive Income. On May 17, 2013, we completed the sale of the Pratt & Whitney Power Systemsbusiness to Mitsubishi Heavy Industries (MHI) and entered into a long-term engineering and manufacturing agreement with MHI. The sale generated a pre-tax gain of approximately $193 million( $132 millionafter tax). Cash received in connection with the sale was $432 million, and excludes contingent consideration valued at approximately $200 million. Pratt & Whitney Power Systemshas not been reclassified to Discontinued Operations due to our level of continuing involvement in the business post-sale. In connection with regulatory approval of the Goodrich acquisition, regulatory authorities required UTC to dispose of the Goodrich electric power systems and the pumps and engine controls businesses. Pursuant to these regulatory obligations, these businesses had been held separately from UTC's and Goodrich's ongoing businesses since the acquisition of Goodrich by UTC. On March 18, 2013, we completed the sale of the Goodrich pumps and engine controls business to Triumph Group, Inc., and on March 26, 2013, we completed the sale of the Goodrich electric power systems business to Safran S.A.Combined proceeds from the sales of the two businesses were approximately $600 million. As discussed below in "Results of Operations," our results include the impact from non-recurring items such as the beneficial impact of gains from business divestiture activities, including those related to the ongoing portfolio transformation at UTC Climate, Controls & Security. Acquisition Activity Our growth strategy contemplates acquisitions. Our operations and results can be affected by the rate and extent to which appropriate acquisition opportunities are available, acquired businesses are effectively integrated, and anticipated synergies or cost savings are achieved. On February 7, 2013, we completed the acquisition of Grupo Ascensores Enor, S.A.( Enor), a privately held company headquartered in Spain with operations in Spain and Portugal, which designs, manufactures, installs and services elevators. Enor's2012 sales were approximately $50 million. Under the terms of the transaction, SpanishCats:ZOT">Zardoya Otis, S.A.(ZOSA), a non-wholly owned subsidiary of the Company, exchanged publicly traded shares of ZOSA with a fair value of approximately $240 millionas of the transaction completion date for all of the shares of Enor. During the six months ended June 30, 2013, our cash investment in business acquisitions was approximately $66 millionand consisted of a number of additional small acquisitions primarily in our commercial businesses. We expect cash investment in businesses of approximately $1 billionin 2013. However, actual acquisition spending may vary depending upon the timing, availability and value of acquisition opportunities. Other Government legislation, policies and regulations can have a negative impact on our worldwide operations. Government regulation of refrigerants and energy efficiency standards, elevator safety codes and fire protection regulations are important to our commercial businesses. Government and market-driven safety and performance regulations, restrictions on aircraft engine noise and emissions, and government procurement practices can impact our aerospace and defense businesses. Commercial airline financial distress and consolidation, global economic conditions, changes in raw material and commodity prices, interest rates, foreign currency exchange rates, energy costs, and the impact from natural disasters and weather conditions create uncertainties that could impact our earnings outlook for the remainder of 2013. See Part II, Item 1A, "Risk Factors" in this Form 10-Q for further discussion. The following activities are disclosed as required by Section 13(r)(1)(D)(iii) of the Securities Exchange Act of 1934, as amended (Exchange Act), as transactions or dealings with the government of Iranthat have not been specifically authorized by a U.S. federal department or agency: In 2012 and 2013, Delta Security Solutions S.A., a company organized under the laws of Franceand an indirect wholly-owned non-U.S. subsidiary (part of United Technologies Climate, Controls & Security group of companies), provided alarm monitoring services and on-site maintenance inspections to the Parisbranch of Bank Melli Iran. The Parisbranch of Bank Melli Iranhas been a customer of Delta Security Solutions(and its predecessors) since at least 2000. Bank Melli Iranis an entity identified by the U.S. Department of the Treasury's Office of Foreign Assets Control(OFAC) on the Specially Designated Nationals and Blocked Persons List pursuant to Executive Order 13382.