Management’s Discussion and Analysis of Financial Condition and Results of Operations32
on a permanent casino in Detroit, investments in our Macau joint venture or 
capital spending at Mandalay resorts.
We plan to fund our contractual obligations and other estimated spending through
a combination of operating cash flow, proceeds from known or expected sales of
businesses and available borrowings under our senior credit facility. T o fund the
Mandalay acquisition, we entered into the revised bank credit facility, which will
provide the required funds to fund payments to Mandalay’s shareholders and hold-
ers of Mandalay’s convertible debentures, as well as refinance certain of Mandalay’s
outstanding borrowings. We are required to sell our interest in one of the two 
casinos in Detroit, Michigan. The sale of either of these interests will generate 
significant cash flow. We have generated over $740 million in operating cash flow 
in each of the past three years, which included deductions for interest payments, 
tax payments and certain contractually committed payments reflected in the above
table, including operating leases, employment agreements and entertainment agree-
ments. We expect to generate a higher level of operating cash flow in 2005 due to
improved operating results, expanded facilities and the Mandalay acquisition.
Critical A ccounting Policies and Estimates
Management’s discussion and analysis of our results of operations and liquidity and
capital resources are based on our consolidated financial statements. To prepare our
consolidated financial statements in accordance with accounting principles generally
accepted in the United States of America, we must make estimates and assumptions
that affect the amounts reported in the consolidated financial statements. We 
regularly evaluate these estimates and assumptions, particularly in areas we consider
to be critical accounting estimates, where changes in the estimates and assumptions
could have a material impact on our results of operations, financial position or cash
flows. Senior management and the Audit Committee of the Board of Directors have
reviewed the disclosures included herein about our critical accounting estimates,
and have reviewed the processes to determine those estimates.
Allowance for Doubtful Casino Accounts Receivable
Marker play represents a significant portion of the table games volume at Bellagio,
MGM Grand Las Vegas and The Mirage. Our other facilities do not emphasize marker
play to the same extent, although we offer markers to customers at those casinos as well.
We maintain strict controls over the issuance of markers and aggressively pursue 
collection from those customers who fail to pay their marker balances timely. These 
collection efforts are similar to those used by most large corporations when dealing 
with overdue customer accounts, including the mailing of statements and delinquency
notices, personal contacts, the use of outside collection agencies and civil litigation.
Markers are generally legally enforceable instruments in the United States. At December
31, 2004 and 2003, approximately 54% and 53%, respectively, of our casino accounts
receivable was owed by customers from the United States. Markers are not legally
enforceable instruments in some foreign countries, but the United States assets of 
foreign customers may be reached to satisfy judgments entered in the United States. A
significant portion of our casino accounts receivable is owed by casino customers from
the Far East. At December 31, 2004 and 2003, approximately 25% and 30%, respec-
tively, of our casino accounts receivable was owed by customers from the Far East.
We maintain an allowance, or reserve, for doubtful casino accounts at all of our
operating casino resorts. The provision for doubtful accounts, an operating expense,
increases the allowance for doubtful accounts. We regularly evaluate the allowance