Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2012

Long-Term Debt

Schedule of Long-term debt

Long-term debt consisted of the following (in thousands):

	December 31,
	2012		2011
Guitar Center
Senior secured asset-based revolving facility	$	—	$	—
Senior secured term loan	621,762		621,762
Obligations under capital lease, payable in monthly installments through 2013	54		700
Senior unsecured notes	394,890		375,000
	1,016,706		997,462
Less current portion	5,941		646
Guitar Center long-term debt, net of current portion	1,010,765		996,816
Holdings
Senior unsecured PIK notes	564,673		564,673
Less current portion	129,784		—
Holdings long-term debt, net of current portion	434,889		564,673
Holdings consolidated long-term debt, net of current portion	$	1,445,654	$	1,561,489

Schedule of future maturities expected payments of long-term debt

Future maturities of long-term debt as of December 31, 2012 were as follows (in thousands):

	Guitar Center		Holdings		HoldingsConsolidated
2013 (1)	$	5,941	$	129,784	$	135,725
2014	14,314		—		14,314
2015	6,500		—		6,500
2016	6,500		—		6,500
2017	983,451		—		983,451
Thereafter	—		434,889		434,889
	$	1,016,706	$	564,673	$	1,581,379

(1) We anticipate making a one-time principal payment on the senior PIK notes in April 2013. This payment will be $129.8 million, which is the amount of previously capitalized PIK interest that is required to be paid to prevent the senior PIK notes from being treated as “applicable high yield discount obligations” within the meaning of Section 163(i)(1) of the Internal Revenue Code. This amount is included in current portion of long-term debt in Holdings’ consolidated balance sheet as of December 31, 2012. The remaining unpaid balance of the senior PIK notes matures in April 2018.

Schedule of amortization of deferred financing fees included in interest expense

Amortization of deferred financing fees included in interest expense in the consolidated statements of comprehensive income or loss was as follows (in thousands):

	Year ended December 31,
	2012		2011
Holdings	$	3,191	$	2,896
Guitar Center	2,779		2,485

Schedule of unamortized deferred financing fees included in other assets

Unamortized deferred financing fees included in other assets in the consolidated balance sheets were as follows (in thousands):

	December 31,
	2012		2011
Holdings	$	13,097	$	15,524
Guitar Center	10,899		12,913