Guarantees and Product Warranty (Tables)

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees are as follows:



(Millions of dollars)	March 31, 2013		December 31, 2012
Caterpillar dealer guarantees	$	177	$	180
Customer guarantees	70		77
Customer guarantees – supplier consortium	341		—
Third party logistics business guarantees	170		176
Other guarantees	45		53
Total guarantees	$	803	$	486

Product warranty



(Millions of dollars)	2013
Warranty liability, January 1	$	1,477
Reduction in liability (payments)	(220		)
Increase in liability (new warranties)	181
Warranty liability, March 31	$	1,438



(Millions of dollars)	2012
Warranty liability, January 1	$	1,308
Reduction in liability (payments)	(920		)
Increase in liability (new warranties)	1,089
Warranty liability, December 31	$	1,477

- Definition

Tabular disclosure of each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

+ References+ Details