Notes to Consolidated Financial Statements 65
NOTE 14 — PROPERTY TRANSACTIONS, NET
Property transactions, net consisted of the following:
Year Ended December 31 (In thousands) 2004 2003 2002
Gain on sale of North Las Vegas land . . . . . . . . . . . . . $ — $ (36,776) $ —
Siegfried & Roy theatre write-down – The Mirage . . . . — 1,408 —
Storm damage – Beau Rivage . . . . . . . . . . . . . . . . . . — — 7,824
Write-off of Detroit development costs. . . . . . . . . . . . . — — 4,754
Impairment of assets to be disposed of. . . . . . . . . . . . 473 5,764 2,134
Demolition costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,057 6,614 —
Other net losses on asset sales or disposals . . . . . . . . 1,135 4,049 —
$ 8,665 $ (18,941) $ 14,712
In 2004, there were no material unusual property transactions. In 2003 the
Company sold 315 acres of land in North Las Vegas, Nevada near Shadow Creek
for approximately $55 million, which resulted in a pretax gain of approximately
$37 million. Also in 2003, the Company r ecorded write-downs and impairments of
assets abandoned or replaced with new construction, primarily at MGM Grand Las
Vegas in preparation for new restaurants and the new theatre. Prior to 2003, the
Company classified gains and losses on routine asset sales or disposals as a 
non-operating item at some resorts and as an operating item at other resorts.
Management believes the preferable presentation of these items is as an element of
operating income. Prior period statements have not been reclassified as such
transactions were not material in the prior periods. Until 2003, demolition costs
were typically capitalized as part of new construction. The Company began 
expensing demolition costs on major construction projects as incurred on January 1,
2003, and is accounting for this change in policy prospectively. Demolition costs
were not material in prior periods. Demolition costs in 2004 and 2003 relate 
primarily to preparation for the Bellagio standard room remodel, Bellagio expansion
and new theatre at MGM Grand Las Vegas.
In 2002, T ropical Storm Isidore caused property damage at Beau Rivage totaling $8
million, including clean-up costs. The amount of the write-down for damaged assets
was determined based on the net book value of the assets and engineering estimates.
In connection with the revised development agreement in Detroit, the Company
wrote off $5 million, which was the net book value of previously incurred develop-
ment costs associated with the riverfront permanent casino site ($9 million), offset by
previously accrued obligations no longer required under the revised development
agreement ($4 million). Also in 2002, the Company recorded write-downs and
impairments of assets abandoned or replaced with new construction.
NOTE 15 — RELATED PARTY TRANSACTIONS
The Company’s related party transactions consisted of the following revenues (expenses):
Year Ended December 31 (In thousands) 2004 2003 2002
Hotel and other revenue from related parties . . . . . . . $ 416 $ 871 $ 764
License fees to entities under common ownership . . . (1,000) (1,000) (1,000)
Professional fees to directors or firms 
affiliated with directors. . . . . . . . . . . . . . . . . . . . . . (4,084) (1,551) (1,815)
Other related party expenses . . . . . . . . . . . . . . . . . . . (62) (468) (224)
$ (4,730) $ (2,148) $ (2,275)
At December 31, 2004, the Company owed $2 million for legal fees to a firm 
affiliated with one of the Company’s directors. The Company also engaged in 
transactions with its unconsolidated affiliates. In each of 2004 and 2003, the
Company paid Monte Carlo $4 million as a result of closing the tram between
Bellagio and Monte Carlo in preparation for the Bellagio expansion. The Company
leases two acres of land to Borgata and received $1 million in each of 2004, 2003
and 2002 under this lease. Borgata is r equired to pay for a por tion of the master-
plan improvements at Renaissance Pointe, and the Company is responsible for