Notes to Consolidated Financial Statements 64 The Company implemented a supplemental executive retirement plan (“SERP”) for certain key employees effective January 1, 2001. The SERP is a nonqualified plan under which the Company makes quarterly contributions which are intended to provide a retirement benefit that is a fixed percentage of a participant’s estimated final five-year average annual salary, up to a maximum of 65%. Company contribu- tions and investment earnings on the contributions are tax-deferred and accumulate as a retirement fund. Employees do not make contributions under this plan. A  portion of the Company contributions and investment earnings thereon vests after three years of SERP participation and the remaining portion vests after both five years of SERP participation and 10 years of continuous service. The Company recorded expense of $5 million under this plan in each of 2004, 2003 and 2002. Restructuring costs (credit) consisted of the following: In 2004, restructuring costs include $3 million for contract termination costs  related to the Aqua restaurant at Bellagio and $2 million of workforce reduction costs at MGM Grand Detroit as a result of the Company’s efforts to minimize the impact of a gaming tax increase in Michigan. 2003 restructuring costs included $2 million related to the closure of the Siegfried & Roy show, primarily for severance costs of employees involved in the show’s  The Company recorded $3 million of restructuring charges in December 2002 related to contract termination costs for a restaurant and the EFX! show at MGM Grand Las Vegas. In December 2002, the Company recorded a restructuring credit of $10 million related to a lease contract termination accrual originally recorded in June 2000. In December 2002 management determined that payment under this obligation was not probable. In 2001, management responded to a decline in busi- ness volumes caused by the September 11 attacks by implementing cost contain- ment strategies which included a significant reduction in payroll and a refocusing of several of the Company’s marketing programs. This resulted in a $22 million charge against earnings. As a result of improving business levels and the Company’s success at re-hiring a substantial number of previously laid off or terminated employees, management determined in 2002 that a portion of the remaining accrual would now not be necessary. This resulted in a restructuring credit of $10 million.  production. Also, the Company terminated a restaurant lease and closed two  marketing offices, resulting in $4 million of contract termination charges. Other severance of $1 million in 2003 related primarily to restructuring of table games staffing at several resorts. The following table summarizes activity for restructuring accruals with a balance  at December 31, 2004. All other restructuring awards have been fully paid or  otherwise resolved. Balance at Initial Cash Non-cash December 3 1 , (In thousands) Pr ovision Payments reductions 2004 2003 severance . . . . . . . . . . . . . . . . . . . . . . . . . $ 925 $ (838) $ — $ 87 $ 925 $ (838) $ — $ 87 Y ear Ended December 31 (In thousands) 2004 2003 2002 Contract termination costs . . . . . . . . . . . . . . . . . . . . .  $ 3,693 $ 4,049 $ 3,257 Reversal of certain September 11 charges . . . . . . . . . — — (10,421) Siegfried & Roy show closure – The Mirage . . . . . . . . — 1,623 — Reversal of 2000 contract termination costs . . . . . . . .  — — (9,857) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,932 925 — $ 5,625 $ 6,597 $ (17,021) NOTE 13 — RESTRUCTURING COSTS