EX-12.1 4 p72625exv12w1.htm EXHIBIT 12.1 exv12w1
 

Exhibit 12.1
MGM MIRAGE
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                                 
    Year Ended December 31,     Three Months Ended March 31,  
                                            2005              
    2001     2002     2003     2004     2005     Pro Forma (1)     2005     2006  
    (In thousands)  
Earnings
                                                                
Income from continuing operations before income taxes
   $ 262,596     $ 457,927     $ 343,660     $ 555,815     $ 678,900     $ 720,461     $ 174,927     $ 223,092  
Fixed charges (see below)
     420,092       355,587       372,779       418,950       704,328       830,288       107,720       219,610  
Less: Capitalized interest
     (78,608 )     (61,712 )     (15,234 )     (23,005 )     (29,527 )     (29,527 )     (3,047 )     (17,279 )
Less: Capitalized interest of unconsolidated affiliates
     (3,343 )     (9,543 )     (9,112 )     —       (1,067 )     (1,067 )     —       (775 )
 
                                                
 
     600,737       742,259       692,093       951,760       1,352,634       1,520,155       279,600       424,648  
 
                                                
Fixed Charges
                                                                
Interest expense (2)
     414,379       345,448       352,820       401,391       685,686       808,810       104,515       214,665  
Interest expense of unconsolidated subsidiaries
     5,713       10,139       19,959       17,559       18,642       21,478       3,205       4,945  
 
                                                
 
     420,092       355,587       372,779       418,950       704,328       830,288       107,720       219,610  
 
                                                
 
                                                                
Ratio of Earnings to Fixed Charges
     1.43x       2.09x       1.86x       2.27x       1.92x       1.83x       2.60x       1.93x  
 
                                                
 
(1)   Pro forma to reflect acquisition of Mandalay Resort Group.
 
(2)   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.