Guarantees (Tables)

6 Months Ended

Jul. 02, 2016

Financial Guarantees

The Company’s financial guarantees at July 2, 2016 are as follows:

(Millions of Dollars)	Term	Maximum Potential Payment		Carrying Amount of Liability
Guarantees on the residual values of leased properties	One to five years	$	39.3	$	—
Standby letters of credit	Up to three years	78.3		—
Commercial customer financing arrangements	Up to six years	60.6		16.3
Total		$	178.2	$	16.3

Changes in Carrying Amount of Product and Service Warranties

The changes in the carrying amount of product and service warranties for the six months ended July 2, 2016 and July 4, 2015 are as follows:

(Millions of Dollars)	2016			2015
Balance beginning of period	$	105.4		$	109.6
Warranties and guarantees issued	46.2			47.7
Warranty payments and currency	(44.6		)	(47.8		)
Balance end of period	$	107.0		$	109.5