Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Alberto Garciatunen with Imperial Capital.
Alberto Garciatunen – Imperial Capital
I just had a quick question on non-U.S. pension liabilities, specifically the U.S. other, the medical, the $168.9 million and also the international pension liabilities of $132.2 million. I just wanted to get more clarity on it and how you are going to resolve the unfunded aspect of those liabilities.
Jim Yost
Okay thanks Alberto. This is Jim.
Alberto Garciatunen – Imperial Capital
Hello, Jim.
Jim Yost
Jim answering the question. As I think you know, generally speaking U.S. retiree medical programs are not funded specifically by underlying assets. Although there have been some programs like Goodyear and Dana, have actually put into place VEBAs to fund those. We have a continuing program where really the expense continues to decline, as well as our contributions continue to decrease because we froze those plans back in 1995. So we don't have any continuing growing liabilities. In fact as mortality rates continue, we will have declining contributions. Most of the individuals covered by that plan are not represented by any active union representation at this point in time. So we really don't have any significant opportunities to do any VEBA funding and we don't think at this point in time it would make any sense for us to fund those. So we are just going to continue to operate those plans as they are paying in cash as needed.
In terms of the pension liabilities outside the U.S., the most significant one is in Germany, and again traditional with the way those plans are handled. We don't have any underlying assets that fund that specific plan. There are a couple of other smaller plans for which we do have some assets to fund those. So we will continue to operate that plan on a pay-as-you-go basis. So those liabilities will largely come down over time, but we don't have any specific plans to do anything but continue to do it on a pay-as-you-go basis.
Alberto Garciatunen – Imperial Capital
Perfect, thank you.
Operator
Your next question comes from the line of Dirk Friedkin with Troob Capital.
Peter Troob – Troob Capital
Hi, it's Peter Troob. How are you guys?
Curt Clawson
Hi, Peter. We are doing well, thank you.
Peter Troob – Troob Capital
I think you guys have done a great job managing your business. And my question really you walked through most of it on your presentation about the free cash flow and about how you are going to get there and so you just say positive in the presentation, people can figure out a number of what they think your free cash flow will be. So can you just discuss you have $160 million of cash on the balance sheet, which is about 50% of your equity market cap. What you are thinking of doing with that cash? And then what you're going to do with the excess cash you are going to get from working capital going forward and the excess cash you are going to get from just operations going forward? I know we have discussed this before but I sort of want to just to hash through it. It is all right if it is capital projects because you're doing a good job but there is a lot of money now sitting there, which can actually become detrimental if you have too much sitting on your balance sheet.
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