Guarantees and product warranty (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Guarantees

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 at December 31 are as follows:

(Millions of dollars)	2014		2013		2012
Caterpillar dealer guarantees	$	209	$	193	$	180
Customer guarantees	49		62		77
Customer guarantees - supplier consortium	321		364		—
Third party logistics business guarantees	129		151		176
Other guarantees	32		35		53
Total guarantees	$	740	$	805	$	486

Product warranty

(Millions of dollars)	2014				2013			2012
Warranty liability, January 1	$	1,367			$	1,477		$	1,308
Reduction in liability (payments)	(1,071		)		(938		)	(920		)
Increase in liability (new warranties)	1,130			1	828			1,089
Warranty liability, December 31	$	1,426			$	1,367		$	1,477

¹ The increase in liability includes approximately $170 million for changes in estimates for pre-existing warranties due to higher than expected actual warranty claim experience.