Notes to Consolidated Financial Statements54
NOTE 4 — ACCOUNTS RECEIVABLE, NET
Accounts receivable consisted of the following:
At December 31 (In thousands) 2004 2003
Casino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 174,713 $ 159,569
Hotel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,084 36,376
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,114 22,617
263,911 218,562
Less: Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . (59,760) (79,087)
$ 204,151 $ 139,475
NOTE 5 — PROPERTY AND EQUIPMENT, NET
Property and equipment consisted of the following:
At December 31 (In thousands) 2004 2003
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,089,106 $ 4,103,693
Buildings, building improvements and land improvements. . . . . . . . . . 4,228,138 3,798,143
Equipment, furniture, fixtures and leasehold improvements . . . . . . . . . 2,235,766 1,960,094
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299,148 465,471
10,852,158 10,327,401
Less: Accumulated depreciation and amortization . . . . . . . . . . . . . . . . (1,938,016) (1,646,062)
$ 8,914,142 $ 8,681,339
NOTE 6 — INVESTMENTS IN UNCONSOLIDATED AFFILIATES
The Company has investments in unconsolidated affiliates accounted for under 
the equity method. Under the equity method, carrying value is adjusted for the
Company’s share of the investees’ earnings and losses, as well as capital 
contributions to and distributions from these companies. Investments in 
unconsolidated affiliates consisted of the following:
At December 31 (In thousands) 2004 2003
Victoria Partners – Monte Carlo (50%) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 424,683 $ 420,853
Marina District Development Company - Borgata (50%). . . . . . . . . . . . . 405,322 335,159
MGM Grand Newcastle (Holdings) Ltd. (50%) . . . . . . . . . . . . . . . . . . . . 9,633 —
MGM Grand Paradise Limited – Macau (50%). . . . . . . . . . . . . . . . . . . . 3,002 —
$ 842,640 $ 756,012
The Company’s investments in Monte Carlo and Borgata were recorded at their
estimated fair value at the date of the Mirage Acquisition, which value exceeded the
Company’s share of the net assets of the unconsolidated affiliates b y approximately
$361 million. Substantially all of this difference relates to the excess of the fair value
of land owned by the affiliates over its pre-existing carrying value. The investment
balance also includes interest capitalized on the Borgata investment, which is being
amortized over 40 years.
The Company also owns 50% of The Residences at MGM Grand, along with
T urnberry Associates. As of December 31, 2004, the Company has a negative
investment balance of $3 million, recorded as other long-term liabilities in the
accompanying consolidated balance sheet, representing cumulative losses on the
venture. In July 2004, the Company contributed land to The Residences at MGM
Grand for construction of the first tower. The equity credit of $9 million is greater
than the $1 million previous book value of the land, and the $8 million gain has
been deferred until the earnings process is complete, which will occur when The
Residences at MGM Grand recognizes revenue on the sale of the first tower’s units.