NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the period ended 28 July 2018 E1 FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Liquidity risk (continued) Maturities of financial liabilities The tables below analyse the Group's financial liabilities into relevant maturity groupings based on their contractual maturities for: (a)all non-derivative financial liabilities; and (b)net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant. For interest rate swaps, the cash flows have been estimated using forward interest rates applicable at the end of the reporting period. Contractual maturities of Less than 6 - 12 Between Between Over 5 Total Carrying financial liabilities 6 months months 1 and 2 2 and 5 years contractual amount years years cash flows (assets)/ liabilities $'000 $'000 $'000 $'000 $'000 $'000 $'000 2018 Non-derivatives Non-interest bearing 295,636 - - - - 295,636 295,636 Variable rate 101,294 867 50,440 - - 152,601 150,000 Total non-derivatives 396,930 867 50,440 - - 448,237 445,636 Derivatives Net settled (interest rate swaps) 30 (16) (8) - - 6 52 Gross settled - (inflow) (93,297) (72,889) (14,239) - - (180,425) (6,994) - outflow 89,308 70,220 13,982 - - 173,510 76 Total derivatives (3,959) (2,685) (265) - - (6,909) (6,866) 2017 Non-derivatives Non-interest bearing 286,113 - - - - 286,113 286,113 Variable rate 46,543 1,537 51,941 50,391 - 150,412 145,000 Total non-derivatives 332,656 1,537 51,941 50,391 - 436,525 431,113 Derivatives Net settled (interest rate swaps) 595 91 147 34 - 867 527 Gross settled - (inflow) (83,949) (57,827) (20,170) - - (161,946) - - outflow 89,230 61,258 21,137 - - 171,625 8,375 Total derivatives 5,876 3,522 1,114 34 - 10,546 8,902 (d) Fair value measurements The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: (a)quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); (b)inputs other than quoted prices included within level 1 that are observable for the asset or liabilities either directly (as prices) or indirectly (derived from prices) (level 2); and (c)inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3). The following tables present the Group's assets and liabilities measured and recognised at fair value at 28 July 2018 and 29 July 2017: Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000 2018 Assets Derivatives used for hedging - 6,994 - 6,994 Total assets - 6,994 - 6,994 Liabilities Derivatives used for hedging - 128 - 128 Total liabilities - 128 - 128 2017 Assets Derivatives used for hedging - - - - Total assets - - - - Liabilities Derivatives used for hedging - 8,902 - 8,902 Total liabilities - 8,902 - 8,902 Myer Annual Report 2018 69