Guarantees and Product Warranty (Tables)

3 Months Ended

Mar. 31, 2015

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)	March 31, 2015		December 31, 2014
Caterpillar dealer guarantees	$	198	$	209
Customer guarantees	58		49
Customer guarantees – supplier consortium	284		321
Third party logistics business guarantees	123		129
Other guarantees	27		32
Total guarantees	$	690	$	740

Product warranty

(Millions of dollars)	2015
Warranty liability, January 1	$	1,426
Reduction in liability (payments)	(225		)
Increase in liability (new warranties)	188
Warranty liability, March 31	$	1,389

(Millions of dollars)	2014
Warranty liability, January 1	$	1,367
Reduction in liability (payments)	(1,071		)
Increase in liability (new warranties)	1,130			1
Warranty liability, December 31	$	1,426

¹ The increase in liability includes approximately $170 million for changes in estimates for pre-existing warranties due to higher than expected actual warranty claim experience.