Notes to Consolidated Financial Statements62
premises within the complex. The agreement is subject to the implementation of
proposed gaming law reforms and a tax structure acceptable to the Company, and
obtaining required planning and other approvals.
Macau. In connection with the Company’s pending joint venture in Macau (see
Note 1), the Company has committed to invest up to $280 million in the entity 
in the form of capital contributions and shareholder loans.
New York Racing Association. The Company has an understanding with the New
York Racing Association (“NYRA”) to manage video lottery terminals (“VLTs”) at
NYRA’s Aqueduct horseracing facility in metropolitan New York. The Company
would assist in the development of the facility, including providing project 
financing, and would manage the facility for a fee. Work was halted on the VLT
facility in August 2003 pending the outcome of an investigation of certain aspects
of NYRA’s operations by Federal prosecutors. In December 2003, NYRA reached
agreement with the Justice Department whereby NYRA was indicted with 
prosecution deferred. NYRA agreed to pay a fine and the indictment will be 
dismissed with prejudice upon NYRA implementing certain reforms and otherwise
complying with the terms of the agr eement. The Company’s participation is subject
to a definitive agreement, regulatory approvals and certain legislative changes by the
State of New York.
The Residences at MGM Grand. In July 2004, the venture obtained construction
financing for up to $210 million for the dev elopment of the first tower. The
Company has provided a guaranty for up to 50% of the interest and principal 
payment obligations on the construction financing as well as a joint and several
completion guaranty with its partners. The Company recorded the value of the
guaranty obligation, approximately $2 million, in other long-term liabilities.
Other Guarantees. The Company is party to various guarantee contracts in the
normal course of business, which are generally supported by letters of credit issued
by financial institutions. The Company’s Senior Credit Facility limits the amount 
of letters of credit that can be issued to $200 million, and the amount of available 
borrowings under the Senior Credit Facility is reduced by any outstanding letters 
of credit. At December 31, 2004, the Company had provided a $50 million letter
of credit to support the Economic Development Corporation of the City of Detroit
bonds referred to above, which are a liability of the Company. 
Litigation. The Company is a party to various legal proceedings, most of which
relate to routine matters incidental to its business. Management does not believe
that the outcome of such proceedings will have a material adverse effect on the
Company’s financial position or results of operations.