Notes to Consolidated Financial Statements 58 ally guarantee the Senior Credit Facility, senior notes, senior debentures, and senior subordinated notes. MGM Grand Detroit, LLC is a guarantor under the Senior Credit Facility, but only to the extent that the proceeds of borrowings under such facilities are made available to MGM Grand Detroit, LLC. Substantially all of the Company’s assets, other than assets of foreign subsidiaries and certain assets in use at MGM Grand Detroit, were pledged as collateral for the Company’s senior notes, excluding subordinated notes, and the Company’s bank credit facilities at December 31, 2004. See Note 18 for additional information. The Company’s long-term debt obligations contain certain customary covenants. The Company’s Senior Credit Facility contains covenants that require the Company to maintain certain financial ratios. At December 31, 2004, the Company was required to maintain a maximum leverage ratio (average debt to EBITDA, as defined) of 5.5:1, which decreases periodically to 4.75:1 by December 2007. The Company must also maintain a minimum coverage ratio (EBITDA to interest charges, as defined) of 2.75:1. As of December 31, 2004, the Company’s leverage and interest coverage ratios were 4.0:1 and 3.7:1, respectively. Maturities of the Company’s long-term debt as of December 31, 2004 are as follows: Amounts due in 2005 that were refinanced through available capacity under the Company’s Senior Credit Facility have been excluded from current liabilities in the accompanying consolidated balance sheet. The estimated fair value of the Company’s long-term debt at December 31, 2004 was approximately $5.9 billion, versus its book value of $5.5 billion. At December 31, 2003, the estimated fair value of the Company’s long-term debt was approxi- mately $6.0 billion, versus its book value of $5.6 billion. The estimated fair value of the Company’s public debt securities was based on quoted market prices on or about December 31, 2004 and 2003. The estimated fair value of the Company’s outstanding credit facility borrowings was assumed to approximate book value due to the short-term nature of the borrowings. The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes” (“SFAS 109”). SFAS 109 requires the recognition of deferred income tax assets, net of applicable reserves, related to net operating loss carryforwards and certain temporary  differences. The standard requires recognition of a future tax benefit to the extent that realization of such benefit is more likely than not. Otherwise, a valuation allowance is applied. The income tax provision attributable to continuing operations and discontinued operations is as follows: NOTE 9 — INCOME TAXES Y ear Ended December 31 (In thousands) 2004 2003 2002 Continuing operations . . . . . . . . . . . . . . . . . . . . . . . . .  $ 205,959 $ 113,387 $ 168,451 Discontinued operations . . . . . . . . . . . . . . . . . . . . . . . 31,731 2,651 4,924 $ 237,690 $ 116,038 $ 173,375 Y ears ending December 31 (In thousands) 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 476,426 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  244,527 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 910,028 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430,428 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,050,028 Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2,400,076 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,511,513 Debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  (56,192) Swap deferred gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3,541 $ 5,458,862