Guarantees and Product Warranty (Tables)

9 Months Ended

Sep. 30, 2016

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 are as follows:

(Millions of dollars)	September 30, 2016		December 31, 2015
Caterpillar dealer performance guarantees	$	217	$	216
Customer loan guarantees	51		47
Supplier consortium performance guarantee	295		286
Third party logistics business lease guarantees	92		107
Other guarantees	38		25
Total guarantees	$	693	$	681

Product warranty

(Millions of dollars)	2016
Warranty liability, January 1	$	1,354
Reduction in liability (payments)	(676		)
Increase in liability (new warranties)	628
Warranty liability, September 30	$	1,306

(Millions of dollars)	2015
Warranty liability, January 1	$	1,426
Reduction in liability (payments)	(874		)
Increase in liability (new warranties)	802
Warranty liability, December 31	$	1,354