(Millions of dollars) | 2013 | 2012 | 2011 | |||||||||
Warranty liability, January 1 | $ | 1,477 | $ | 1,308 | $ | 1,035 | ||||||
Reduction in liability (payments) | (938 | ) | (920 | ) | (926 | ) | ||||||
Increase in liability (new warranties) | 828 | 1,089 | 1,199 | |||||||||
Warranty liability, December 31 | $ | 1,367 | $ | 1,477 | $ | 1,308 | ||||||