Guarantees and Product Warranty (Tables)

9 Months Ended

Sep. 30, 2018

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)	September 30, 2018		December 31, 2017
Caterpillar dealer performance guarantees	$	1,375	$	1,313
Customer loan guarantees	31		40
Supplier consortium performance guarantees	556		565
Third party logistics business lease guarantees	68		69
Other guarantees	122		118
Total guarantees	$	2,152	$	2,105

Product warranty

Specific rates are developed for each product shipment month and are updated monthly based on actual warranty claim experience.



(Millions of dollars)	2018
Warranty liability, January 1	$	1,419
Reduction in liability (payments)	(561		)
Increase in liability (new warranties)	556
Warranty liability, September 30	$	1,414



(Millions of dollars)	2017
Warranty liability, January 1	$	1,258
Reduction in liability (payments)	(860		)
Increase in liability (new warranties)	1,021
Warranty liability, December 31	$	1,419