Management’s Discussion and Analysis of Financial Condition and Results of Operations28
Investments in unconsolidated affiliates in 2004 primarily consist of contributions
to The Residences at MGM Grand. In 2003 and 2002, such investments were 
primarily our required investments in Borgata. In 2002, we also contributed 
$44 million to Monte Carlo in connection with Monte Carlo’s retirement of the
final $87 million of its outstanding debt.
Cash Flows – Financing Activities
In 2004, we issued over $1.5 billion of fixed rate debt in various issuances:
• In February and March 2004, we issued $525 million of 5.875% Senior Notes
due 2014;
• In August 2004, we issued $550 million of 6.75% Senior Notes due 2012;
• In September 2004, we issued $450 million of 6% Senior Notes due 2009 at a
premium to yield 5.65%.
In 2004, we repaid a net $1.6 billion on our bank credit facilities and repurchased
$49 million of our existing senior notes for $52 million, resulting in a loss on early
retirement of debt of $6 million (including the write-off of unamor tized original
issue discount), which is classified as “Other, net” in the accompanying consolidat-
ed statement of income. In 2003, we issued $600 million of 6% Senior Notes, due
2009 and repaid a net $285 million on our bank cr edit facilities. The net proceeds
of these financing activities were used to supplement operating cash flows, fund
capital expenditures and repurchase shares of our common stock. In 2002, we 
utilized our operating cash flow to reduce outstanding indebtedness by $270 mil-
lion, while still funding significant capital expenditur es and share repurchases.
Our share repurchases are only conducted under repurchase programs approved by our
Board of Directors and publicly announced. Our share repurchase activity was as follows:
Year Ended December 31 (In thousands) 2004 2003 2002
August 2001 authorization (1.4 million 
and 6.4 million shares purchased)  . . . . . . . . . . . . $ — $ 36,034 $ 207,590
February 2003 authorization 
(10 million shares purchased)  . . . . . . . . . . . . . . . — 335,911 —
November 2003 authorization (8 million and 
2 million shares purchased)  . . . . . . . . . . . . . . . . . 348,895 70,919 —
$ 348,895 $442,864 $ 207,590
Average price of shares repurchased . . . . . . . . . . . . $ 43.59 $ 33.17 $ 32.28
At December 31, 2004, we had 10 million shares available for repurchase under a
July 2004 authorization. We received $136 million, $36 million and $46 million in
proceeds from the exercise of employee stock options in the years ended 
December 31, 2004, 2003 and 2002, r espectively.
Principal Debt Arrangements
Our long-term debt consists of publicly held senior and subor dinated notes and
bank credit facilities. We pay fixed rates of interest ranging from 5.875% to 9.75%
on the senior and subordinated notes. We pay variable interest based on LIBOR on
our bank credit facility. We amended our bank credit facility in November 2003,
and our current senior credit facility is a $2.5 billion, five-year revolving credit 
facility with a syndicate of banks led b y Bank of America, N.A. As of D ecember 31,
2004, we had approximately $2.4 billion of available liquidity under our bank 
credit facility. Subsequent to year-end, we redeemed three issuances of senior notes
totaling $676 million of principal utilizing available funds under the bank credit
facility. Our next maturity of public debt is not due until 2006.