Guarantees and Product Warranty (Tables)

9 Months Ended

Sep. 30, 2017

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, 2017		December 31, 2016
Caterpillar dealer performance guarantees	$	1,425	$	1,384
Customer loan guarantees	51		51
Supplier consortium performance guarantee	564		278
Third party logistics business lease guarantees	73		87
Other guarantees	100		56
Total guarantees	$	2,213	$	1,856

Product warranty

(Millions of dollars)	2017
Warranty liability, January 1	$	1,258
Reduction in liability (payments)	(637		)
Increase in liability (new warranties)	749
Warranty liability, September 30	$	1,370

(Millions of dollars)	2016
Warranty liability, January 1	$	1,354
Reduction in liability (payments)	(909		)
Increase in liability (new warranties)	813
Warranty liability, December 31	$	1,258