XML 34 R19.htm IDEA: XBRL DOCUMENT
v3.25.3

Guarantees and Product Warranty | 9 Months Ended
--- | ---
Sep. 30, 2025
Guarantees and Product Warranties [Abstract] |
Guarantees and Product Warranty | Guarantees and product warranty We have provided various guarantees that have varying terms and limit potential payment. Under the guarantees, non-performance by the third-parties could require Caterpillar to satisfy the contractual obligation by providing goods, services or financial compensation. The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $491 million and $368 million at September 30, 2025 and December 31, 2024, respectively. We have dealer performance guarantees and third-party performance guarantees that do not limit potential payment to end users related to indemnities and other commercial contractual obligations. In addition, we have entered into contracts involving industry standard indemnifications that do not limit potential payment. For these unlimited guarantees, we are unable to estimate a maximum potential amount of future payments that could result from claims made. No significant loss has been experienced or is anticipated under any of these guarantees. Cat Financial provides guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity. Cat Financial receives a fee for providing this guarantee. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC. As of September 30, 2025 and December 31, 2024, the SPC’s assets of $1.1 billion and $1.14 billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $1.1 billion and $1.14 billion, respectively, were primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial’s creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. We determine our product warranty liability by applying historical claim rate experience to the current field population and dealer inventory. Generally, we base historical claim rates on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America). We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience. The reconciliation of the change in our product warranty liability balances for the nine months ended September 30 was as follows:
| Nine Months Ended September 30, |  |  |  |  |  |  |  |
(Millions of dollars) | 2025 |  | 2024 |  |  |  |  |  |  |  |
Warranty liability, beginning of period | $ | 1,700 |  |  | $ | 1,894 |  |  |  |  |  |  |  |  |
Reduction in liability (payments) | (613) |  |  | (603) |  |  |  |  |  |  |  |  |
Increase in liability (new warranties) | 564 |  |  | 478 |  |  |  |  |  |  |  |  |
Warranty liability, end of period | $ | 1,651 |  |  | $ | 1,769 |  |  |  |  |  |  |  |  |

X
- Definition Include the following two disclosures: 1) Pertinent information about each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. 2) Standard product warranties and other product guarantee contracts, including a tabular reconciliation of the changes in the guarantor's aggregate product warranty liability for the reporting period. + References No definition available. + Details
Name: | cat_GuaranteesAndProductWarrantyDisclosureTextBlock
Namespace Prefix: | cat_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_GuaranteesAndProductWarrantiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration