text: operate our resorts. Beyond our cash on hand, we utilize a company-wide cash 
  management system to minimize the amount of cash held in banks. Funds are 
  swept from accounts at our resorts daily into central bank accounts, and excess 
  funds are invested overnight or are used to repay borrowings under our bank credit 
  facilities. Included in cash and cash equivalents at December 31, 2004 is $141 mil- 
  lion received from the sale of MGM Grand Australia and still held in Australia, 
  pending clarification of the tax rule for repatriated earnings, as discussed earlier. 
  
  **Cash Flows – Investing Activities**
  The sale of the Golden Nugget Subsidiaries closed in January 2004 with net 
  proceeds to the Company of $210 million. The sale of MGM Grand Australia 
  closed in July 2004 with net proceeds to the Company of $136 million. 
  
  Capital expenditures in 2004 increased over 2003 due to continued spending on 
  major projects at several of our resorts, including: 
  
  • The Bellagio expansion completed in December 2004; 
  • The theatre for*KÀ*at MGM Grand Las Vegas, completed in November 2004. 
  
  Spending on these two projects totaled approximately $325 million. Other capital 
  expenditures were made for maintenance capital activities, including room remodel 
  projects at New York-New York and MGM Grand Las Vegas and new restaurant 
  and entertainment amenities at several resorts. Capital expenditures in 2003 were 
  significantly higher than 2002, due largely to major projects at our existing resorts, 
  including projects described above which began in 2003, the*Zumanity*theatre at 
  New York-New York, the Bellagio room remodel and slot technology improvements. 
  Capital expenditures in 2002 included general property improvements at our resorts, 
  such as a room remodel project at The Mirage, new restaurant and nightclub 
  development at several of our resorts, and various other remodeling projects. 