text: Interest cost was higher in 2004 as we had a higher average borrowing rate due to 
  increases in variable interest rates and the issuance of significant fixed rate debt in 
  the second half of 2004 in anticipation of the Mandalay merger. 
  
  Capitalized interest increased in 2004 due to the ongoing Bellagio expansion and 
  *KÀ*theatre projects. Capitalized interest in 2005 will include interest capitalized on 
  Project CityCenter. Capitalized interest decreased in 2003 due to the suspension of 
  development in Atlantic City in late 2002 and the mid-2003 cessation of interest cap- 
  italization on the Company’s investment in Borgata, which opened on July 3, 2003. 
  
  Non-operating items from unconsolidated affiliates, primarily our share of Borgata’s 
  interest expense and state income taxes, increased from $10 million in 2003 to 