Notes to Consolidated Financial Statements48
and current economic and business conditions. Management believes that as of
December 31, 2004, no significant concentrations of credit risk existed for which
an allowance had not already been recorded.
Inventories. Inventories consist of food and beverage, retail merchandise and 
operating supplies, and are stated at the lower of cost or market. Cost is determined
primarily by the average cost method for food and beverage and supplies and the
retail inventory or specific identification methods for retail merchandise.
Property and equipment. Property and equipment are stated at cost. Gains or loss-
es on dispositions of property and equipment are included in the determination of
income. Maintenance costs are expensed as incurred. Property and equipment are
generally depreciated over the following estimated useful lives on a straight-line basis:
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 years
Building improvements  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 to 40 years
Land improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 to 40 years
Equipment, furniture, fixtures, and leasehold improvements  . . . . . . . . . . . . . . . . 3 to 20 years
We evaluate our property and equipment and other long-lived assets for impairment
in accordance with the Financial Accounting Standards Board’s Statement of
Financial Accounting Standards No. 144, “Accounting for the Impairment or
Disposal of Long-Lived Assets.” For assets to be disposed of, we recognize the asset
to be sold at the lower of carrying value or fair value less costs of disposal. Fair value
for assets to be disposed of is estimated based on comparable asset sales, solicited
offers, or a discounted cash flow model.
For assets to be held and used, w e review fixed assets for impairment whenever 
indicators of impairment exist. If an indicator of impairment exists, we compare the
estimated future cash flows of the asset, on an undiscounted basis, to the carrying
value of the asset. If the undiscounted cash flows exceed the carrying value, no
impairment is indicated. If the undiscounted cash flows do not exceed the carrying
value, then an impairment is measured based on fair value compared to carrying
value, with fair value typically based on a discounted cash flow model. If an asset is
still under development, future cash flows include remaining construction costs.
For a discussion of recognized impairment losses, see Note 14. In October 2002,
the Company announced the suspension of development activities on its wholly-
owned project on the Renaissance Pointe land in Atlantic City. In connection 
therewith, the Company reviewed the land for potential impairment, and deter-
mined that no impairment was indicated. In December 2002, the Company
entered into an agreement with T urnberry Associates to form a venture to construct
condominium residences behind MGM Grand Las Vegas. As part of the agreement,
the Company contributed land to the venture. The Company reviewed the land for
potential impairment, and determined no impairment was indicated. 
Capitalized interest. The interest cost associated with major development and 
construction projects is capitalized and included in the cost of the project. When 
no debt is incurred specifically for a project, interest is capitalized on amounts
expended on the project using the weighted-average cost of the Company’s 
outstanding borrowings. Capitalization of interest ceases when the project is 
substantially complete or development activity is suspended for more than a 
brief period.