Green Mountain Coffee Roasters (GMCR)

Maturities

Maturities of long-term debt for years subsequent to September 27, 2008 are as follows:

The Company regularly enters into coffee futures contracts to hedge forecasted purchases of green coffee and therefore designates these contracts as cash flow hedges. At September 27, 2008, the Company held outstanding futures contracts covering 1,162,500 pounds of coffee with a fair market value of ($39,000). At September 27, 2008, deferred losses on futures contracts designated as cash flow hedges amounted to $70,000 ($43,000, net of taxes). These futures contracts are hedging coffee purchases forecasted to take place in the next six months and the related losses will be reflected in cost of sales in the first three fiscal quarters of 2009, when the related finished goods inventory is sold. The deferred losses are classified as accumulated other comprehensive losses. At September 29, 2007, the Company held no coffee futures and carried no deferred gains or losses from coffee futures transactions on its balance sheet.

The total losses on coffee futures contracts that were included in cost of sales in fiscal 2008 and fiscal 2007 amounted to $9,000 ($6,000 net of tax) and $45,000 ($26,000 net of tax), respectively. The total gains on futures contracts designated as cash flow hedges that were included in cost of sales in fiscal 2006 amounted

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GREEN MOUNTAIN COFFEE ROASTERS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

to $54,000 ($31,000 net of tax). The fair market value for the futures is calculated at the end of each fiscal year, in consideration of information provided by a major financial institution, based on the market prices of identical (or similar) instruments that are regularly traded in readily observable markets.

Maturities

Maturities of long-term debt for years subsequent to September 29, 2007 are as follows:

The Company regularly enters into coffee futures contracts to hedge forecasted purchases of green coffee and therefore designates these contracts as cash flow hedges. Occasionally, the Company also enters into coffee option contracts. At September 29, 2007, the Company held no coffee futures and carried no deferred gains or losses from coffee futures transactions on its balance sheet. At September 30, 2006, the Company held outstanding futures contracts covering 2,288,000 pounds of coffee with a fair market value of ($81,000). At September 30, 2006, deferred losses on futures contracts designated as cash flow hedges amounted to $141,000 ($82,000 net of taxes). These deferred losses are classified as accumulated other comprehensive losses. There were no outstanding coffee option contracts at September 29, 2007 or September 30, 2006.

The total losses on coffee futures contracts that were included in cost of sales in fiscal 2007 and fiscal 2005 amounted to $45,000 ($26,000 net of tax) and $42,000 ($25,000 net of tax), respectively. The total gains on futures contracts designated as cash flow hedges that were included in cost of sales in fiscal 2006 amounted to $54,000 ($31,000 net of tax). The fair market value for the futures was obtained from a major financial institution based on the market value of those financial instruments at September 29, 2007 and September 30, 2006.

Maturities

Maturities of long-term debt for years subsequent to September 30, 2006 are as follows:

The Company regularly enters into coffee futures contracts to hedge forecasted purchases of green coffee and therefore designates these contracts as cash flow hedges. Occasionally, the Company also enters into coffee option contracts. At September 30, 2006, the Company held outstanding futures contracts covering 2,288,000 pounds of coffee with a fair market value of ($81,000). At September 30, 2006, deferred losses on futures contracts designated as cash flow hedges amounted to $141,000 ($82,000 net of taxes). These futures contracts are hedging coffee purchases forecasted to take place in the next six months and the related gains and losses will be reflected in cost of sales in the first three fiscal quarters of 2007, when the related finished goods inventory is sold. The deferred losses are classified as accumulated other comprehensive losses. At September 24, 2005, the Company held outstanding futures contracts covering 1,687,500 pounds of coffee with a fair market value of ($60,000). At September 24, 2005, deferred losses on futures contracts designated as cash flow hedges amounted to $150,000 ($90,000 net of taxes). There were no outstanding coffee option contracts at September 30, 2006 and September 24, 2005.

The total gains on futures contracts designated as cash flow hedges that were included in cost of sales in fiscal 2006 amounted to $54,000 ($31,000 net of tax). The total losses on coffee futures contracts that were included in cost of sales in fiscal 2005 amounted to $42,000 ($25,000 net of tax). The fair market value for the futures was obtained from a major financial institution based on the market value of those financial instruments at September 30, 2006 and September 24, 2005.

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