Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Measurements

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

The following table presents the fair value hierarchy for assets measured at fair value on a non-recurring basis during the nine months ended September 30, 2013 (in thousands):

	Fair Value Measurements
	Using Inputs Considered as								Total
	Level 1		Level 2		Level 3		Total		Losses
Goodwill at the Guitar Center segment	$	—	$	—	$	222,278	$	222,278	$	360,100
Trademarks and trade names at the direct response segment	—		—		7,400		7,400		2,300

Quantitative information about level 3 inputs used in fair value measurements

Fair Value Measurement	Fair Value at measurement date(in thousands)		Valuation technique	Unobservable input	Range
Trademarks and trade names at the direct response segment	$	7,400	Discounted cash flow	Weighted-average cost of capital	16.6%
				Long-term revenue growth rate	1.0%
				Royalty rates	0.5% - 1.5%

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):

	September 30, 2013				December 31, 2012
	Carrying Amount		EstimatedFair Value		Carrying Amount		EstimatedFair Value
Guitar Center
Asset-based revolving credit facility	$	165,000	$	165,000	$	—	$	—
Senior secured term loan	617,500		604,378		621,762		600,000
Senior unsecured notes	394,890		423,590		394,890		418,579
Capital lease obligations	333		333		54		54
Total Guitar Center	1,177,723		1,193,301		1,016,706		1,018,633
Holdings
Senior unsecured PIK notes	434,889		475,823		564,673		596,965
Holdings consolidated	$	1,612,612	$	1,669,124	$	1,581,379	$	1,615,598