Table of Content • maintain careful control of the risk level within each asset class The trustees of the U.K. Plan have established a long-term investment strategy comprising global investment weightings targeted at 27.5% (range of 25% to 30%) for equity securities/diversified growth funds and 72.5% (range of 70% to 75%) for debt securities. Diversified growth funds are actively managed absolute return funds that hold a combination of debt and equity securities. Selection of the targeted asset allocation was based upon a review of the expected return and risk characteristics of each asset class, as well as the correlation of returns among asset classes. Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations and the timing of benefit payments and contributions. The following table sets forth the weighted-average asset allocation and target asset allocations as of December 31, 2023 and 2022 by asset category: Asset Allocations Target Asset Allocations 2023 2022 2023 2022 1 Equity securities and diversified growth funds 14.8 % 27.0 % 27.5 % 27.5 % 2 Debt securities 80.5 % 69.7 % 72.5 % 72.5 % Other 4.7 % 3.3 % — % — % Total 100 % 100 % 100 % 100 % ______________________________ 1 Diversified growth funds refer to actively managed absolute return funds that hold a combination of equity and debt securities. 2 Includes investments in funds with the objective to provide leveraged returns to U.K. government fixed income securities, U.K. government indexed-linked securities, global bonds, and corporate bonds. The following table summarizes the changes in the fair value measurements of Level 3 investments for the pension plans (in thousands): December 31, 2023 December 31, 2022 Balance at beginning of year $ 10,437$ 11,443 Actual return on plan assets 232 195 Purchases/ sales/ settlements (4,971) — Transfer in/out of level 3 — — Changes due to foreign exchange 431 (1,201) $ 6,129$ 10,437 Balance at end of year The following is a description of the valuation methodologies used to measure plan assets at fair value. For equity securities and fixed income securities, fair value is based on observable inputs of comparable market transactions. The valuation of certain alternative investments, such as limited partnerships, may require significant management judgment and involves a level of uncertainty. The valuation is generally based on fair value as reported by the asset manager and adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by us, including, but are not limited to, the timeliness of fair value as reported by the asset manager and changes in general economic and market conditions subsequent to the last fair value reported by the asset manager. The use of different techniques or assumptions to estimate fair value could result in a different fair value measurement at the reporting date. Cash and cash equivalents are valued based on cost, which approximates fair value. Other than those assets that have quoted prices from an active market, investments are generally classified in Level 2 or Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measure in its entirety. 63