Guarantees and Product Warranty (Tables)

3 Months Ended

Mar. 31, 2022

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 was as follows:

(Millions of dollars)	March 31, 2022		December 31, 2021
Caterpillar dealer performance guarantees	$	251	$	747
Supplier consortium performance guarantee	239		242
Other guarantees	165		232
Total guarantees	$	655	$	1,221

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)	2022		2021
Warranty liability, beginning of period	$	1,689	$	1,612
Reduction in liability (payments)	(194)		(225)
Increase in liability (new warranties)	168		244
Warranty liability, end of period	$	1,663	$	1,631