Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Fair value measurements

Schedule of fair value hierarchy for assets and liabilities measured at fair value on a non-recurring basis

The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a non-recurring basis (in thousands):

	Year ended December 31, 2012
	Level 1	Level 2	Level 3		Total		Total Losses
Specific-store leasehold improvements	—	—	$	195	$	195	$	559

	Year ended December 31, 2011
	Level 1		Level 2		Level 3		Total		Total Losses
Direct response goodwill, net of accumulated impairment losses	$	—	$	—	$	—	$	—	$	107,026
Direct response trademarks and trade names	—		—		11,500		11,500		32,500
Direct response customer relationship intangible asset	—				6,800		6,800		13,461
Specific-store leasehold improvements	—		—		745		745		1,294

Quantitative information about level 3 inputs used in fair value measurements

The following tables present quantitative information about level 3 inputs used in our fair value measurements:

Fair Value Measurement	Fair Value at December 31, 2012(in thousands)		Valuation technique(s)	Unobservable input	Range
Specific-store leasehold improvements	$	195	Discounted cash flow	Weighted-average cost of capital	9.8%
				Long-term revenue growth rate	3.0%
Fair Value Measurement	Fair Value at December 31, 2011(in thousands)		Valuation technique(s)	Unobservable input	Range
Direct response trademarks and trade names	$	11,500	Discounted cash flow	Weighted-average cost of capital	16.5%
				Long-term revenue growth rate	1.0%
				Royalty rates	0.5% - 1.5%
Direct response customer relationship intangible asset	6,800		Discounted cash flow	Weighted-average cost of capital	17.5%
				Customer attrition rate	59.9% - 25.0%
Specific-store leasehold improvements	745		Discounted cash flow	Weighted-average cost of capital	10.9%
				Long-term revenue growth rate	3.0%

Schedule of difference between the carrying value and estimated fair value of the entity's long-term debt

The following table presents the difference between the carrying amount and estimated fair value of our long-term debt (in thousands):

	December 31, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Guitar Center
Senior secured asset-based revolving credit facility	$	—	$	—	$	—	$	—
Senior secured term loan	621,762		600,000		621,762		545,596
Senior unsecured notes	394,890		418,579		375,000		394,542
Capital lease obligations	54		54		700		700
Total Guitar Center	1,016,706		1,018,633		997,462		940,838
Holdings
Senior unsecured PIK notes	564,673		596,965		564,673		609,312
Holdings Consolidated	$	1,581,379	$	1,615,598	$	1,562,135	$	1,550,150