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MGM MIRAGE Inc. writing off $1.2 billion charge

Jan 13, 2009 5:11 PM
Industry Insider by Ray Poirier | There was little reaction Monday to the announcement by MGM MIRAGE Inc. (MGM) that it was writing off $1.2 billion in goodwill relating to its purchase of Mandalay Resort Group in 2005.

The charge will be reflected on its fourth quarter financial statement, the company said.

Goodwill is the amount exceeding fair market value that is paid for an acquisition. Although most of the charge related to Mandalay’s acquisition there also was $47 million that was part of the Mirage Resorts Inc. purchase in 2000.

The company said that it still had on its books an intangible asset balance of $345 million that included trademarks, and trade names of $228 million from the Mandalay acquisition.