text: At December 31, 2004, there is a $6 million valuation allowance provided on 
  certain New Jersey state net operating loss carryforwards and other New Jersey state 
  deferred tax assets because management believes these assets do not meet the “more 
  likely than not” criteria for recognition under SFAS 109. Management believes all 
  other deferred tax assets are more likely than not to be realized because of the future 
  reversal of existing taxable temporary differences and expected future taxable 
  income. Accordingly, there are no other valuation allowances provided at 
  December 31, 2004. 
  
  The Company is evaluating the impact of provisions of the American Jobs Creation 
  Act of 2004 (the “Act”) that provide for a special one-time tax deduction of 85 
  percent on certain repatriated earnings of foreign subsidiaries. Additional guidance 
  from Congress and/or the United States Treasury Department will be necessary for 
  the Company to complete its evaluation, as it is not clear at this time whether the 
  Act will provide a benefit to the Company. The Company will complete the 
  evaluation as promptly as practicable following the issuance of such guidance and 
  adjust taxes accordingly, if necessary. 
  
  The Company has not yet repatriated the net proceeds from the sale of MGM 
  Grand Australia pending the evaluation. Nonetheless, the Company provided in 
  2004 deferred U.S. income taxes of $11 million on the basis that such proceeds 
  would be repatriated without the benefit of the 85 percent one-time deduction. 
  Such amount was included in the provision for income taxes on discontinued 
  operations for 2004. The Company considered the earnings of its Australia 
  operations permanently reinvested prior to the sale of such operations. 