EX-12 5 p72256exv12.htm EXHIBIT 12 exv12
 

Exhibit 12
MGM MIRAGE
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                         
    Year Ended December 31,  
    2001     2002     2003     2004     2005  
    (In thousands)  
Earnings
                                        
Income from continuing operations before income taxes
   $ 262,596     $ 457,927     $ 343,660     $ 555,815     $ 678,900  
Fixed charges (see below)
     420,092       355,587       372,779       418,950       704,328  
Less: Capitalized interest
     (78,608 )     (61,712 )     (15,234 )     (23,005 )     (29,527 )
Less: Capitalized interest of unconsolidated affiliates
     (3,343 )     (9,543 )     (9,112 )     —       (1,067 )
 
                              
 
     600,737       742,259       692,093       951,760       1,352,634  
 
                              
Fixed Charges
                                        
Interest expense(1)
     414,379       345,448       352,820       401,391       685,686  
Interest expense of unconsolidated subsidiaries
     5,713       10,139       19,959       17,559       18,642  
 
                              
 
     420,092       355,587       372,779       418,950       704,328  
 
                              
 
                                        
Ratio of Earnings to Fixed Charges
     1.43x       2.09x       1.86x       2.27x       1.92x  
 
                              
 
(1)   Gross interest expense, before capitalized interest, including amortization of debt discount and debt issuance costs. Does not include the interest factor of rental expense as these amounts are not material.