Segment Information (Tables)

3 Months Ended

Mar. 31, 2013

Segment Information

Schedule of financial information for Holdings' and Guitar Center's reportable segments

The following tables summarize financial information for Holdings’ and Guitar Center’s reportable segments (in thousands):

	Three months ended March 31, 2013
	GuitarCenter		Music & Arts		Direct Response			Corporate			Total
Net sales	$	400,498	$	58,365	$	72,970		$	—		$	531,833
Gross profit	112,467		26,134		18,939			—			157,540
Selling, general and administrative expenses	91,663		20,053		22,305			6,585			140,606
Operating income (loss)	20,804		6,081		(3,366		)	(6,585		)	16,934
Depreciation and amortization	15,377		1,251		4,042			878			21,548
Adjusted EBITDA	37,999		7,846		2,751			(2,814		)	45,782
Capital expenditures	9,046		1,507		933			2,633			14,119
Total assets
Holdings	1,421,408		117,150		158,165			133,657			1,830,380
Guitar Center	1,421,408		117,150		158,165			165,386			1,862,109

	Three months ended March 31, 2012
	GuitarCenter		Music & Arts		Direct Response			Corporate			Total
Net sales	$	393,704	$	55,069	$	79,378		$	—		$	528,151
Gross profit	117,069		25,022		21,930			(445		)	163,576
Selling, general and administrative expenses	89,683		19,166		22,926			6,277			138,052
Operating income (loss)	27,386		5,856		(996		)	(6,722		)	25,524
Depreciation and amortization	16,645		1,180		3,994			826			22,645
Adjusted EBITDA	45,671		7,048		3,492			(2,982		)	53,229
Capital expenditures	6,319		846		1,519			3,180			11,864
Total assets
Holdings	1,480,250		108,267		169,336			140,994			1,898,847
Guitar Center	1,480,250		108,267		169,336			165,780			1,923,633

Schedule of reconciliation of adjusted EBITDA to consolidated income (loss) before income taxes

The following tables present a reconciliation of adjusted EBITDA to consolidated income or loss before income taxes (in thousands):

Holdings

	Three months ended March 31,
	2013			2012
Adjusted EBITDA
Guitar Center	$	37,999		$	45,671
Music & Arts	7,846			7,048
Direct response	2,751			3,492
Corporate	(2,814		)	(2,982		)
	45,782			53,229
Depreciation and amortization expense	21,548			22,645
Interest expense, net	41,358			41,173
Non-cash charges	331			896
Other adjustments	6,969			4,164
Consolidated loss before income taxes	$	(24,424	)	$	(15,649	)

Guitar Center

	Three months ended March 31,
	2013			2012
Adjusted EBITDA
Guitar Center	$	37,999		$	45,671
Music & Arts	7,846			7,048
Direct response	2,751			3,492
Corporate	(2,814		)	(2,982		)
	45,782			53,229
Depreciation and amortization expense	21,548			22,645
Interest expense, net	21,365			21,179
Non-cash charges	331			896
Other adjustments	6,969			4,164
Consolidated income (loss) before income taxes	$	(4,431	)	$	4,345