Guarantees and Product Warranty (Tables)

6 Months Ended

Jun. 30, 2023

Guarantees and Product Warranties [Abstract]

Summary of 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)	June 30, 2023		December 31, 2022
Caterpillar dealer performance guarantees	$	177	$	188
Other guarantees	390		323
Total guarantees	$	567	$	511

Summary of product warranty

The reconciliation of the change in our product warranty liability balances for the six months ended June 30 was as follows:

	First Six Months
(Millions of dollars)	2023		2022
Warranty liability, beginning of period	$	1,761	$	1,689
Reduction in liability (payments)	(410)		(388)
Increase in liability (new warranties)	471		350
Warranty liability, end of period	$	1,822	$	1,651