Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow.

Income Statement

For Fiscal Years Ended ($ millions)

2006

2005

2004

Sales

$ 51,271

$ 45,682

$ 40,928

Credit card revenues

1,349

1,157

1,097

Total revenues

52,620

46,839

42,025

Cost of sales

34,927

31,445

28,389

Selling, general and administrative expenses

11,185

9,797

8,657

Credit card expenses

776

737

722

Depreciation and amortization

1,409

1,259

1,098

Earnings before interest and income taxes

4,323

3,601

3,159

Net interest expense

463

570

556

Earnings before income taxes

3,860

3,031

2,603

Provisions for income taxes

1,452

1,146

984

Net earnings

$ 2,408

$ 1,885

$ 1,619

Balance Sheet

($ millions, except footnotes)

January 28, 2006

January 29, 2005

Assets

Cash and cash equivalents

$ 1,648

$ 2,245

Credit card receivables

5,666

5,069

Inventory

5,838

5,384

Other current assets

1,253

1,224

Total current assets

14,405

13,922

Property and equipment

Land

4,449

3,804

Buildings and improvements

14,174

12,518

Fixtures and equipment

3,219

2,990

Computer hardware and software

2,214

1,998

Construction-in-progress

1,158

962

Accumulated depreciation

(6,176)

(5,412)

Property and equipment, net

19,038

16,860

Other noncurrent assets

1,552

1,511

Total assets

$ 34,995

$ 32,293

Liabilities and shareholders' investment

Accounts payable

$ 6,268

$ 5,779

Accrued and other current liabilities

2,567

1,937

Current portion of long-term debt and notes payable

753

504

Total current liabilities

9,588

8,220

Long-term debt

9,119

9,034

Deferred income taxes

851

973

Other noncurrent liabilities

1,232

1,037

Shareholders' investment

Common stock

73

74

Additional paid-in-capital

2,121

1,810

Retained earnings

12,013

11,148

Accumulated other comprehensive income (loss)

(2)

(3)

Total shareholders' investment

14,205

13,029

Total liabilities and shareholders' equity

$ 34,995

$ 32,293

(d) Compute net nonoperating obligations (NNO) for 2006 and 2005. 2006 NNO = ???

2005 NNO = ???