Guarantees and product warranty (Tables)

12 Months Ended

Dec. 31, 2017

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)	2017		2016
Caterpillar dealer performance guarantees	$	1,313	$	1,384
Customer loan guarantees	40		51
Supplier consortium performance guarantees	565		278
Third party logistics business lease guarantees	69		87
Other guarantees	118		56
Total guarantees	$	2,105	$	1,856

Product warranty

(Millions of dollars)	2017			2016
Warranty liability, January 1	$	1,258		$	1,354
Reduction in liability (payments)	(860		)	(909		)
Increase in liability (new warranties)	1,021			813
Warranty liability, December 31	$	1,419		$	1,258