Management’s Discussion and Analysis of Financial Condition and Results of Operations 33
The collectibility of unpaid markers is affected by a number of factors, including
changes in currency exchange rates and economic conditions in the customers’ home
countries. Because individual customer account balances can be significant, the
allowance and the provision can change significantly between periods, as information
about a certain customer becomes known or as changes in a region’s economy occur.
The following table shows key statistics related to our casino receivables:
Year Ended December 31 (In thousands) 2004 2003 2002
Casino accounts receivable  . . . . . . . . . . . . . . . . . . . . . . . . . . $174,713 $159,569 $166,612
Allowance for doubtful casino accounts receivable . . . . . . . . . 57,111 75,265 85,504
Allowance as a percentage of casino accounts receivable  . . . 33% 47% 51%
Median age of casino accounts receivable  . . . . . . . . . . . . . . . 33 days 43 days 50 days
Percentage of casino accounts outstanding over 180 days . . . 15% 23% 27%
The allowance for doubtful accounts as a percentage of casino accounts receivable
has decreased since 2002, the result of improved collections leading to improved
credit statistics, reflected in the lower median age of accounts and decreasing 
percentage of accounts outstanding over 180 days. Our reserve percentage is now
consistent with the percentage before the September 11 attacks, and is representa-
tive of a more normalized collection experience and positive global economic 
conditions relative to the conditions in 2001 and 2002.
At December 31, 2004, a 100 basis-point change in the allowance for doubtful
accounts as a percentage of casino accounts receivable would change net income by
$1.1 million, or $0.01 per share.
Fixed asset capitalization and depr eciation policies
Property and equipment are stated at cost. Maintenance and repairs that neither
materially add to the value of the property nor appreciably prolong its life are
charged to expense as incurred. Depreciation and amortization are provided on a
straight-line basis over the estimated useful lives of the assets. We account for 
construction projects in accordance with Statement of Financial Accounting
Standards No. 67, “Accounting for Costs and Initial Rental Operations of Real
Estate Projects”. When we construct assets, we capitalize direct costs of the project,
including fees paid to architects and contractors, property taxes, and certain costs of
our design and construction subsidiary, MGM MIRAGE Design Group.
We must make estimates and assumptions when accounting for capital expenditures.
Whether an expenditure is considered a maintenance expense or a capital asset is a
matter of judgment. When constructing or purchasing assets, we must determine
whether existing assets are being replaced or otherwise impaired, which also may be a
matter of judgment. Our depreciation expense is highly dependent on the assump-
tions we make about our assets’ estimated useful lives. We determine the estimated
useful lives based on our experience with similar assets, engineering studies, and our
estimate of the usage of the asset. Whenever events or circumstances occur which
change the estimated useful life of an asset, we account for the change prospectively. 
In accordance with Statement of Financial Accounting Standards No. 34,
“Capitalization of Interest Cost” (“SFAS 34”), interest cost associated with major 
development and construction projects is capitalized as part of the cost of the project.
Interest is typically capitalized on amounts expended on the project using the weighted-
average cost of our outstanding borrowings, since we typically do not borrow funds
directly related to a development project. Capitalization of interest starts when construc-
tion activities, as defined in SFAS 34, begin and ceases when construction is substan-
tially complete or development activity is suspended for more than a brief period.