Guarantees and product warranty (Tables)

12 Months Ended

Dec. 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 at December 31 are as follows:

(Millions of dollars)	2015		2014
Caterpillar dealer performance guarantees	$	216	$	209
Customer loan guarantees	47		49
Supplier consortium performance guarantee	286		321
Third party logistics business lease guarantees	107		129
Other guarantees	25		32
Total guarantees	$	681	$	740

Product warranty

(Millions of dollars)	2015			2014
Warranty liability, January 1	$	1,426		$	1,367
Reduction in liability (payments)	(874		)	(1,071		)
Increase in liability (new warranties)	802			1,130			1
Warranty liability, December 31	$	1,354		$	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.