Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets

Schedule of analysis of the changes in goodwill by segment

The following table presents an analysis of the changes in goodwill by segment for the nine months ended September 30, 2013 (in thousands):

	Guitar			Music
	Center			& Arts		Total
Balance at December 31, 2012
Goodwill	$	706,182		$	—	$	706,182
Accumulated impairment losses	(123,804		)			(123,804		)
	582,378			—		582,378
Goodwill resulting from acquisitions	—			239		239
Goodwill impairment	(360,100		)	—		(360,100		)
Balance at September 30, 2013
Goodwill	706,182			239		706,421
Accumulated impairment losses	(483,904		)	—		(483,904		)
	$	222,278		$	239	$	222,517

Summary of the entity's intangible assets other than goodwill

The following tables present a summary of our intangible assets other than goodwill (dollars in thousands, life in years):

		September 30, 2013
	Weighted-	Gross
	Average Useful	Carrying		Accumulated			Intangible
	Life	Amount		Amortization			Assets, Net
Unamortized trademarks	—	$	206,201	$	—		$	206,201
Amortized
Customer relationships	13.1	221,538		(158,790		)	62,748
Favorable lease terms	7.6	25,941		(22,580		)	3,361
Covenants not to compete and other	4.6	946		(646		)	300
		$	454,626	$	(182,016	)	$	272,610
		December 31, 2012
	Weighted-	Gross
	Average Useful	Carrying		Accumulated			Intangible
	Life	Amount		Amortization			Assets, Net
Unamortized trademarks	—	$	208,501	$	—		$	208,501
Amortized
Customer relationships	13.0	224,302		(148,042		)	76,260
Favorable lease terms	7.5	57,721		(51,323		)	6,398
Covenants not to compete and other	4.3	785		(675		)	110
		$	491,309	$	(200,040	)	$	291,269

Schedule of amortization expense

Amortization expense is classified in our condensed consolidated statements of comprehensive loss as follows (in thousands):

	Three monthsended September 30,				Nine monthsended September 30,
	2013		2012		2013		2012
Cost of goods sold, buying and occupancy	$	936	$	1,423	$	3,118	$	4,563
Selling, general and administrative expenses	4,693		5,776		13,872		17,331

Schedule of future estimated amortization expense related to intangible assets

The future estimated amortization expense related to intangible assets as of September 30, 2013 was as follows (in thousands):

Year
Remainder of 2013	$	5,428
2014	16,549
2015	12,583
2016	9,717
2017	7,663
Thereafter	14,469
Total	$	66,409