Comprehensive Loss

9 Months Ended

Sep. 30, 2011

Comprehensive Loss

Comprehensive Loss

4. Comprehensive Loss

        Other comprehensive loss includes charges and credits to stockholders' equity that are not the result of transactions with stockholders. Our total comprehensive loss consists of net loss and unrealized losses on derivative instruments.

        The following table presents other comprehensive loss and comprehensive loss, net of income tax (in thousands):

• Holdings

		Three months ended September 30,						Nine months ended September 30,
		2011			2010			2011			2010
Net loss		$	(27,383	)	$	(23,050	)	$	(64,786	)	$	(54,175	)
Other comprehensive loss:
	Unrealized loss on hedging arrangements		(31	)		(69	)		(6	)		(532	)
Comprehensive loss		$	(27,414	)	$	(23,119	)	$	(64,792	)	$	(54,707	)

• Guitar Center

		Three months ended September 30,						Nine months ended September 30,
		2011			2010			2011			2010
Net loss		$	(13,759	)	$	(10,214	)	$	(24,385	)	$	(17,800	)
Other comprehensive loss:
	Unrealized loss on hedging arrangements		(31	)		(69	)		(6	)		(532	)
Comprehensive loss		$	(13,790	)	$	(10,283	)	$	(24,391	)	$	(18,332	)

        Gains and losses on derivative instruments, net of income tax, are included in accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets. Our derivative instruments consist of two interest rate cap agreements. As of September 30, 2011 these interest rate cap agreements were de-designated as cash flow hedges and changes in their fair value are recorded in interest expense in our statements of operations. Amounts in accumulated other comprehensive loss remaining prior to de-designation are amortized into interest expense over the remaining term of the contracts, which end in December 2012 and January 2013.