Diageo PLC, Edinburgh, plans to contribute £100 million ($174.28 million) to its £2 billion pension plan in the next 12 months.
The plan had a £653 million deficit as of Dec. 31, partly because of new international accounting standards that require a mark-to-market approach, according to a news release.
The company also plans to contribute about £50 million for the fiscal year ending June 30. Spokeswoman Isabelle Thomas could not be reached by press time to provide details about how the cash contributions might be invested.
The announced changes aim to provide "further clarity in relation to Diageo's balance sheet," Paul Walsh, Diageo's chief executive, said in a prepared statement.