Guarantees and Product Warranty (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Guarantees

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

(Millions of dollars)	March 31, 2023		December 31, 2022
Caterpillar dealer performance guarantees	$	191	$	188
Other guarantees	381		323
Total guarantees	$	572	$	511

Product warranty

The reconciliation of the change in our product warranty liability balances for the quarters ended March 31 was as follows:

	First Three Months
(Millions of dollars)	2023		2022
Warranty liability, beginning of period	$	1,761	$	1,689
Reduction in liability (payments)	(213)		(194)
Increase in liability (new warranties)	246		168
Warranty liability, end of period	$	1,794	$	1,663